Explain me this Lease option.. Good or Bad? (mileage, BMW, Texas)

[TexasTony]

Please advise if this is good deal or not from Lexus? Also please explain how interest is calculated on payments. is it similar to financing?

State:TX
Lease Term: 27
Monthly Payment: 530 plus tax 6.5% bringing the total to $561.80
Out of Pocket: 1,641.80
MSRP: 50,270.00
Residual: 32,675.50
Mileage: 10,000

The money factor with MSD's is .00001 (almost NO interest)
The Aquisition fee is $1644 which includes first month, bank fee, registration title and plates.
Total Capital Cost:46,964.00

[mkarch]

Originally Posted by TexasTony

Please advise if this is good deal or not from Lexus? Also please explain how interest is calculated on payments. is it similar to financing?

State:TX
Lease Term: 27
Monthly Payment: 530 plus tax 6.5% bringing the total to $561.80
Out of Pocket: 1,641.80
MSRP: 50,270.00
Residual: 32,675.50
Mileage: 10,000

The money factor with MSD's is .00001 (almost NO interest)
The Aquisition fee is $1644 which includes first month, bank fee, registration title and plates.
Total Capital Cost:46,964.00

If the money factor is bought down to .00001, why are you asking how interest is calculated? You're only paying for the depreciation.

[lycos679]

I would try and negotiate the price down (you know you can do that right?). I don't know how flexible Lexus is, but BMW will sometimes go as low as cost +$500/$1K.

The money factor * 2400 will give you the APR.

[jaypee]

Good or bad compared to what?
You're not paying any interest so is the Cap Cost of $46,964 a good price for this model? Can you get it any lower?
Will you be able to drive less than 10kmi per year?
The Residual seems high enough but you can check at http://www.cars.com/go/alg/index.jsp#

[Malloric]

Mostly what matters these days since 0% interest is basically a gimmie is cap cost and residual. No clue if those are good because I don't know what the car is.