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?

[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?

[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.

[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.