FEELER: 2016 BMW M4 Lease Transfer ($1,111.85/month)

[swntr]

seriously

how do you even get this deal?

You put down 0, 0 deposit, and your monthly payment is only 1100.

WTF did you do?

I would like to get a deal like this too

[2kaccordocoupe]

Originally Posted by swntr

seriously

how do you even get this deal?

You put down 0, 0 deposit, and your monthly payment is only 1100.

WTF did you do?

I would like to get a deal like this too

Accommodation sale of previous car rolls the tax saving into lowering the tax on the lease payment. Depending on what the previous car was and the value you could be paying zero tax on the lease.

Combine that with discounts, club memberships, fleet discounts etc.

It's not rocket science, you just need to know how to work the numbers to your benefit

[bobblehead]

Originally Posted by swntr

seriously

how do you even get this deal?

You put down 0, 0 deposit, and your monthly payment is only 1100.

WTF did you do?

I would like to get a deal like this too

It's a MY16. The lease started in Jan 2017. Obviously, the car is likely to be:
- dealer demo with some mileage on them, possibly
- new but the car has been 'trophy' by the dealer ever since and dealer needed to get rid of a 1+ model year old car as MY17 has been selling since summer of 2016
- winter time, who else would be looking to get into a M car, RWD
- dealer just need to take a bit of a loss on this and move this car off their lot

[Ggeezer]

Originally Posted by swntr

seriously

how do you even get this deal?

You put down 0, 0 deposit, and your monthly payment is only 1100.

WTF did you do?

I would like to get a deal like this too

Both of the above responses are accurate.

Car was brand new on the showroom floor and it was end of the year so they are motivated to move cars, especially if it's from the previous model year.

- Significant discount (over 8%)
- fleet discount
- BMW VIP discount
- lower interest rate at 3.9%, combined with loyalty incentive of further 0.75% reduction
- reduced price on the Excess Wear and Tear coverage
- Tax savings on accommodation sale on my previous car (like a $7,500 down payment)

If I didn't get the tax savings, my payment would have been in the $1,250 range, which is still great but not as good as $1,111

[swntr]

OK

THX for above experiences

very useful

[Parabolica]

How does a lease work when you have a trade in? Is the full savings on tax applied to the term of your lease? I assume you still have to pay full hst on the residual if you buy out the car?

[2kaccordocoupe]

Originally Posted by Ggeezer

Both of the above responses are accurate.

Car was brand new on the showroom floor and it was end of the year so they are motivated to move cars, especially if it's from the previous model year.

- Significant discount (over 8%)
- fleet discount
- BMW VIP discount
- lower interest rate at 3.9%, combined with loyalty incentive of further 0.75% reduction
- reduced price on the Excess Wear and Tear coverage
- Tax savings on accommodation sale on my previous car (like a $7,500 down payment)

If I didn't get the tax savings, my payment would have been in the $1,250 range, which is still great but not as good as $1,111

That's some fine stacking. Well played sir

[2kaccordocoupe]

Originally Posted by Parabolica

How does a lease work when you have a trade in? Is the full savings on tax applied to the term of your lease? I assume you still have to pay full hst on the residual if you buy out the car?

Yes when you trade in a car as a regular trade or accommodation sale you get the tax on your trade in which is then used to offset the tax on your next car for the term of the lease. Tax for tax saving essentially off your monthly payment. If you buyout the lease at the end yes you would pay hst on that.

[FirstF80InSpace]

Originally Posted by 2kaccordocoupe

Yes when you trade in a car as a regular trade or accommodation sale you get the tax on your trade in which is then used to offset the tax on your next car for the term of the lease. Tax for tax saving essentially off your monthly payment. If you buyout the lease at the end yes you would pay hst on that.

So in otherwords, OP DID put a down payment. Because the trade-in is effectively a down payment on the car. Am I correct on this assumption?

[2kaccordocoupe]

Originally Posted by FirstF80InSpace

So in otherwords, OP DID put a down payment. Because the trade-in is effectively a down payment on the car. Am I correct on this assumption?

No it's not a down payment at all. A down payment is cash up front to reduce the cap cost.

The op got a tax savings from his accommodation sale which went towards a tax savings on the new car.

If the car was traded in then yes you would see the trade amount come off the cap cost which would be down payment. Then the tax savings on the monthly lease payments as well. Which was not the case here.

[Ggeezer]

Originally Posted by FirstF80InSpace

So in otherwords, OP DID put a down payment. Because the trade-in is effectively a down payment on the car. Am I correct on this assumption?

As 2kaccordocoupe mentioned, it's technically not a down payment but it "acts" like one in that your monthly payment is reduced.

The cap cost is not reduced - only the taxes are affected. And unfortunately the tax savings do not transfer between provinces so only QC buyers are eligible to benefit from the tax reduction while residents in all other provinces will need to pay $1,091+tax per month.

[Ggeezer]

@2kaccordocoupe I've just confirmed with my dealer who confirmed with BMWFS that the tax credit would actually transfer between provinces so someone in Ontario taking over this lease would actually pay the same amount I am paying.

[2kaccordocoupe]

Originally Posted by Ggeezer

@2kaccordocoupe I've just confirmed with my dealer who confirmed with BMWFS that the tax credit would actually transfer between provinces so someone in Ontario taking over this lease would actually pay the same amount I am paying.

Nice. Hopefully someone jumps on it. Good luck sir.