Lease on 3.0si? Is BMWUSA accurate?

[Jed Peters]

Here's my deal:

$58375 MSRP

$52375 negotiated cap cost + $725 bank ACQ fee+ $55 documentation fee = $53155

$2500 cap reduction rebate from BMW + $515 Cap reduction from you= $3015 cap reduction

net cap cost=$50140

Residual $31076 (53%)--there is 7800 miles on the car.

2009 Base Money factor: .0025

800 bucks/month

Edit:

In all fairness, the dealer is also giving me KBB RETAIL value on my trade (3k more than KBB trade-in), and is delivering/prep/picking up my car--and everything is being done via fedex....

I guess you pay for convenience sometimes?

[pgaX5]

Wow, Army Officer, you're getting a good deal if they're signing off on that. No markup on Money Factor & almost Invoice pricing. The only number you need to plug in is $725 Acquisition (my dealer is trying to get me to pay $925...we'll see about that) plus your doc fees of around $200 (my dealer is only charging $100). So that's an additional $925 that you need to include either up front or rolled into your lease. Either way, you're getting a good deal.

[edit] Whoops, should've read the details of your deal more closely. This is a screaming deal since it includes acquisition & fees.

[ArmyOfficer]

pgaX5, I didn't put in the fees because i'm paying out of pocket for them. I'm going to try and push the $925 back to $725 and they mix the dealer fees and title/registration/plates into the $445 dealer fee, so I'm going to try and bump that down. My goal is out of the $2,815 in fees, I'll reduce it down to $2,500.

I'll probably still put the cap cost reduction of $3,000 down just for simplicity. We're not talking a lot of money lost and it'll bring the payment to where we wanted it.

We got about a foot of snow so the X5 probably won't be picked up till tomorrow evening. The wife and I are pretty excited.

[ArmyOfficer]

Jed, that sounds like a SMOKIN deal! Especially with the trade-in! WOW Congrats!!!!

Originally Posted by Jed Peters

Here's my deal:

$58375 MSRP

$52375 negotiated cap cost + $725 bank ACQ fee+ $55 documentation fee = $53155

$2500 cap reduction rebate from BMW + $515 Cap reduction from you= $3015 cap reduction

net cap cost=$50140

Residual $31076 (53%)--there is 7800 miles on the car.

2009 Base Money factor: .0025

800 bucks/month

Edit:

In all fairness, the dealer is also giving me KBB RETAIL value on my trade (3k more than KBB trade-in), and is delivering/prep/picking up my car--and everything is being done via fedex....

I guess you pay for convenience sometimes?

[ArmyOfficer]

We signed the papers tonight. The numbers were exact to what we figured them out to be. They took the $200 off the acquisition fee and we were out the door. Pick up the vehicle tomorrow once they put the plates on it and detail it. WOOOOHOOO!!!! SO EXCITING :-) I'll post up some pics once we pick it up...

Thanks again everyone for all your help!!!!

[Thunder22]

Originally Posted by Jed Peters

Here's my deal:

$58375 MSRP

$52375 negotiated cap cost + $725 bank ACQ fee+ $55 documentation fee = $53155

$2500 cap reduction rebate from BMW + $515 Cap reduction from you= $3015 cap reduction

net cap cost=$50140

Residual $31076 (53%)--there is 7800 miles on the car.

2009 Base Money factor: .0025

800 bucks/month

Edit:

In all fairness, the dealer is also giving me KBB RETAIL value on my trade (3k more than KBB trade-in), and is delivering/prep/picking up my car--and everything is being done via fedex....

I guess you pay for convenience sometimes?

Are you putting money down on the lease by trading in your existing car?. Is he taking the car in lieu of monthly payments or is he lowering the price of the X? If he's lowering the price of the X, you're getting screwed.

[cr.724]

tcn2K - a lease is not a rental by any means. It is a short term loan on a depreciated value of an asset. By putting money down on a lease you lower the amount of interest that you pay for the lease period. What the right amount depends on the lease and you need to run the numbers.

[Jed Peters]

Originally Posted by Thunder22

Are you putting money down on the lease by trading in your existing car?. Is he taking the car in lieu of monthly payments or is he lowering the price of the X? If he's lowering the price of the X, you're getting screwed.

Nope. I actually owe 21k on my car. OUCH! He's just buying me out of it....well quite a bit of it.

[Texas5]

Originally Posted by Thunder22

... If he's lowering the price of the X, you're getting screwed.

How?

[Thunder22]

Originally Posted by Texas5

How?

If you trade in a car or put cash down on a lease to lower your payments, you're just throwing money away. It artificially lowers the monthly lease payment by paying a chunk of money up front. Why pay the monthly payments early? It makes no sense.

For example, say you trade in a car and the dealer gives you $5,000 for it, and your monthly payments without the trade in are $500 a month. If the dealer applies the trade in as 10 months of payments, you're in good shape, your trade in just paid for 10 full months of your new lease. BUT, if the dealer lowers the price of your new vehicle and then recalculates your lease payments, you just paid $5k up front that you would have paid out over the length of the lease. The money is better in your pocket than the dealer.

It's different than when purchasing a new car. If the dealer gives you $5k for the trade in and lowers the purchase price you pay less interest and pay off the car earlier and when the loan is over, you own the car. On a lease, you're just paying more for the car and when the lease is up you don't own the car, you've just paid more for it than if you didn't put any money down.