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Wow - I feel dumb for not figuring out that simple Total Rent calculation... it's just Total Cost – Total Depreciation. So $38,844 – $32,948 = $5,896.
So then the question is... how did Lease Decoder calculate Total Depreciation and Total Cost?
Those are also simple: Adjusted Cap Cost – Residual Value = Total Depreciation. So $90,320 – $57,372 = $32,948. And Total Depreciation + Total Rent = Total Cost. So $32,948 + $5,896 = $38,844.
But we're actually caught in a circular calculation, because while we know Adjusted Cap Cost ($90,320) and Residual Value ($57,372) form the Important Information paragraph, and we can then calculate the Total Depreciation ($32,948) from that, the Total Rent is unknown without the Total Cost, and the Total Cost is unknown without the Total Rent!
The good news is that BMW also gives us the key to Total Cost in the Important Information paragraph: monthly payment of $1,079. Monthly Payment x Lease Term = Total Cost. So $1,079 x 36 = $38,844.
So now, if we take the preliminary deal I was offered by BMW for my specific iX M60 build, I can figure out the numbers:
Adjusted Cap Cost of $102,841.50 minus Residual Value of $58,958.55 equals Total Depreciation of $43,882.95.
Total Cost (before sales tax) is $1,552.50 x 36 months which equals $55,890.
Total Cost of $55,890 minus Total Depreciation of $43,882.95 equals Total Rent (i.e., lease charge) of $12,007.05
But, sadly, if I plug those numbers into the Money Factor calculation...
............12,007.05
----------------------------- = 0.00206
(102,841.50 + 58,958.55) x 36
...I don't get the 0.00115 money factor that was shown at the dealership. My guess is sales tax is somehow causing me problems that are preventing me from landing at that Total Rent of $6,698.52 which would get me to 0.00115. So two steps forward, one step back!
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