[mjr24]

Let's assume 95k car (not including destination fee) and 50% residual after 3 years.

There is then a $925 destination fee and a $875 acquisition fee....or $1800 total.

Do I pay 100% of the $1800 fees....or only the 50% residualized cost on those (or $900)?

[DocL]

You pay the entire amount. The car had to be shipped, and you took possession of it.

[jmg]

You can residualize it or paid up front. I prefer to residualize everything since gap insurance doesn't give you back anything you pre-paid on a lease if the car is stolen or totaled. However, I've done it both ways in the past.

edit - I'm an idiot and this post is an example of my idiocy. I meant "roll it in", not "residualize" it.

[mjr24]

Your 2 replies say the opposite thing......

Residualizing that amount means you don't pay the full amount but only the 50% you use (again, assuming a 50% residual at lease end).

[Draper]

Residual is based on the MSRP, which I believe includes destination.

Acquisition/disposal is 100% on you.

You can capitalize any fees you want and roll them into your payment, but you're still paying 100% of them in the end.

[mjr24]

Originally Posted by Draper

Residual is based on the MSRP, which I believe includes destination.

Acquisition/disposal is 100% on you.

You can capitalize any fees you want and roll them into your payment, but you're still paying 100% of them in the end.

Ok yep that makes more sense (that the destination is included in MSRP).

[jmg]

Originally Posted by jmg

You can residualize it or paid up front. I prefer to residualize everything since gap insurance doesn't give you back anything you pre-paid on a lease if the car is stolen or totaled. However, I've done it both ways in the past.

Originally Posted by mjr24

Your 2 replies say the opposite thing......

Residualizing that amount means you don't pay the full amount but only the 50% you use (again, assuming a 50% residual at lease end).

Originally Posted by Draper

Residual is based on the MSRP, which I believe includes destination.

Acquisition/disposal is 100% on you.

You can capitalize any fees you want and roll them into your payment, but you're still paying 100% of them in the end.

Sorry, Draper is correct, I'm wrong. I meant to say roll it into the monthly, not residualize it.

I was browsing shopbmw.com and I was obsessing about port installed options and residualizing add-ons was just stuck in by brain.

However, I do like to roll it all in, cap cost taxes, bank fees, doc fees, acquisition etc because if I pay it as a drive off, then that is still "lost" if the car is stolen or totaled. If I roll it in, I'm paying it off slowly, and if the car is a loss, GAP covers whatever I owe outside of what it's worth and I basically save whatever I had not paid off yet.