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      12-27-2012, 09:23 AM   #2
Second Lieutenant
Drives: 2011 535i
Join Date: Nov 2011
Location: Virginia

Posts: 269
iTrader: (0)

I use this lease calculator when trying to figure out the details of a lease offer and compare them side by side to other deals.

If my memory serves me correctly, any amount put towards a lease (trade in, down payment, cap cost reduction) are all taken off of the negotiated price of the car. Then the lease payments are calculated from there. Because the residual is calculated on a percentage, it's not as straight forward as taking 20g's off the leased amount. Very basically, I would look at it like this...

(Assumes 36 months, 12k/yr, 3% sales tax)
Vehicle Price: $50,000
Residual: 58%
Money Factor: .00125
Payment: $702.54
Buyout: $29k

Now add your trade in, same assumptions:
Vehicle Price: $30,000
Residual: 58%
Money Factor: .00125
Payment: $104.50
Buyout: $29k

Huh, interesting. That's not behaving like I thought. I stand corrected (or the calculator is wrong).

I would have expected to see a payment of about $421 and a buyout of $17,400 after your trade-in. Hmmm.
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