How is a BMW Lease Calculated?

Leasing a vehicle is an incredibly straightforward process. You pick the car you want and drive it for the length of your lease agreement. The financial aspect, however, can be a bit more complicated. If you’re thinking about a BMW lease, here’s what you need to know about the costs involved.

Depreciation

The first thing to understand about your lease is the depreciation that will occur over the course of your lease period. The leasing company will provide an estimate of what this is, which is also called the residual value. When the cap cost is determined – which is the total amount of money you’re borrowing – the residual value will be subtracted from it. The number of months in your lease will then be divided into that number.

Monthly Finance Charge

To figure out how much you will need to pay every month for your lease, there is another calculation that needs to be made. First, the cap cost and the residual factor get added up. Then, that number is multiplied by the money factor, which is the interest rate. The final total – with tax added, of course – is your monthly expense.

Lease with Ease at BMW of Asheville 

We understand that leasing can seem confusing, but at BMW of Asheville, we aim to make things as simple and stress-free as possible. If you have any questions or concerns, feel free to get in touch with us. If you’re ready to lease a vehicle right now, everything can be done online or over the phone. Once completed, your car can then be delivered to your home.