BMW Leasing 101 / FAQ (BMW emphasis)

[OneRib]

Originally Posted by ILSMKU

Im eyeballing a F82. ITs 79800. I assume invoice is roughly 74500-75000 right?

What should I expect to pay? If I have great credit and great BMW finance history, what should my MF be?

If I do MSD, how much should I do?

Any advice would be welcome!

Yes a rough estimate of 74500 is correct. You can use Edmund's or truecar for an exact number. I would start aggressive and ask for 500 over invoice. MSDs make the most sense if you max then out. Don't go halfway and but 3. You are allowed up to 7. Make sure they don't pad the money factor. I think it's 0.00137 right now, but double check to make sure.

[BIGW0RM]

Originally Posted by OneRib

Yes a rough estimate of 74500 is correct. You can use Edmund's or truecar for an exact number. I would start aggressive and ask for 500 over invoice. MSDs make the most sense if you max then out. Don't go halfway and but 3. You are allowed up to 7. Make sure they don't pad the money factor. I think it's 0.00137 right now, but double check to make sure.

Which way pads the MF? Up or down?

[Bmwguy11]

The original post of this very thread explains that.

[OneRib]

Originally Posted by ILSMKU

Which way pads the MF? Up or down?

Higher is padding. Since you have great credit you should expect the base rate. Just make sure you know what it is before you sign anything. It can be found in this same subsection under M3/M4 lease rates.

[BMWM4_21]

I hope this is the right thread to post lease numbers on, do any of you think these are solid lease deals on a 2016 BMW M4 Coupe? The 2nd one they told me the money factor was the buy rate, assuming that's .00137 at the moment.

1) MSRP: $75,045.00
Cap Cost $69,965.00
Residual is 58% or $43,526.10

Money Factor: .00149 (3.576%)
36 months/ 10K per year
$2000 Total Cash Down

(Acquisition fee $995)

$921 plus tax
$995.51 including OC tax

2) MSRP: $70,445
Cap Cost: $66,350
Residual Value: 58%

Money Factor: .00137
36 months/10K miles
$2,500 drive off

Acquisition Fee: $925

$904 +tax
$976 including OC tax

[OneRib]

Originally Posted by BMWM4_21

I hope this is the right thread to post lease numbers on, do any of you think these are solid lease deals on a 2016 BMW M4 Coupe? The 2nd one they told me the money factor was the buy rate, assuming that's .00137 at the moment.

1) MSRP: $75,045.00
Cap Cost $69,965.00
Residual is 58% or $43,526.10

Money Factor: .00149 (3.576%)
36 months/ 10K per year
$2000 Total Cash Down

(Acquisition fee $995)

$921 plus tax
$995.51 including OC tax

2) MSRP: $70,445
Cap Cost: $66,350
Residual Value: 58%

Money Factor: .00137
36 months/10K miles
$2,500 drive off

Acquisition Fee: $925

$904 +tax
$976 including OC tax

The first one needs to lower the MF and the second looks OK but not sure you need to pay the $2500. What is it, fees/down payment/etc?

[BMWM4_21]

Originally Posted by OneRib

The first one needs to lower the MF and the second looks OK but not sure you need to pay the $2500. What is it, fees/down payment/etc?

that's what I had asked them, what the total down included, I'm assuming they threw in a $500 down payment in addition to the 1st monthly payment, plus DMV and fees.

I'll ask them again for sure.

The 1st one, they told me they couldn't lower the money factor without raising the price on the car, so I sort of ruled that one out for sure, since they padded the MF.

[OneRib]

Originally Posted by BMWM4_21

that's what I had asked them, what the total down included, I'm assuming they threw in a $500 down payment in addition to the 1st monthly payment, plus DMV and fees.

I'll ask them again for sure.

The 1st one, they told me they couldn't lower the money factor without raising the price on the car, so I sort of ruled that one out for sure, since they padded the MF.

Just make sure they itemize the $2500 and if it doesn't include nonsense then it looks good.

[BMWM4_21]

this is what they said regarding the down:

$2,500 Drive off, includes 1st payment(including tax), DMV, Registration, Tax(on Cap reduction), CA tire Fee.

Is it the tax they are charging on the cap reduction that is hiking up the down?

[OneRib]

Originally Posted by BMWM4_21

this is what they said regarding the down:

$2,500 Drive off, includes 1st payment(including tax), DMV, Registration, Tax(on Cap reduction), CA tire Fee.

Is it the tax they are charging on the cap reduction that is hiking up the down?

Yes, but I would just avoid call reduction all together. Otherwise looks good.

[BMWM4_21]

I do have a question though - does the first deal look better than the 2nd? If you look at the payment difference, the first one is actually only a bit more, but the car is more expensive.

What are your thoughts? Something with the 2nd one is just off to me, the numbers don't add up, and a cheaper car should be much less in lease price than the first, no?

[OneRib]

Originally Posted by BMWM4_21

this is what they said regarding the down:

$2,500 Drive off, includes 1st payment(including tax), DMV, Registration, Tax(on Cap reduction), CA tire Fee.

Is it the tax they are charging on the cap reduction that is hiking up the down?

Yes, but I would just avoid call reduction all together. Otherwise looks good.

[OneRib]

Originally Posted by BMWM4_21

I do have a question though - does the first deal look better than the 2nd? If you look at the payment difference, the first one is actually only a bit more, but the car is more expensive.

What are your thoughts? Something with the 2nd one is just off to me, the numbers don't add up, and a cheaper car should be much less in lease price than the first, no?

Hmm, you do have a point. Use the leasematic app and plug in all the numbers. The second deal should be better, but remember lease deals for more expensive cars don't always have as huge a price spread.

[DDR MFS]

Originally Posted by OneRib

Hmm, you do have a point. Use the leasematic app and plug in all the numbers. The second deal should be better, but remember lease deals for more expensive cars don't always have as huge a price spread.

Thanks for the leasematic recommendation.

Just wondering, can someone really breakdown how the MSDs differ from the general downpayment? My understanding is that the MSDs are the "refund" at the end where you recap the initial cash fronted toward the cap-cost, whereas the downpayment put forth lowers the overall value of the car should you wish to buy it out rather than turn it in and the cash owed on a loan at the end is lower since you put that forth initially.

I ask because I am looking to own my F80 longterm, and can responsibly lease/own, but want to initially lease given that I will be switching jobs and want to ensure some financial security in that I can always turn in the car at the end of the lease and the risk (with the lease) is retained by BMW.

Just want to make sure I am thinking this out properly but don't want to neglect any blatant advantages to one over the other.

Thanks!

[OneRib]

Originally Posted by DDR MFS

Thanks for the leasematic recommendation.

Just wondering, can someone really breakdown how the MSDs differ from the general downpayment? My understanding is that the MSDs are the "refund" at the end where you recap the initial cash fronted toward the cap-cost, whereas the downpayment put forth lowers the overall value of the car should you wish to buy it out rather than turn it in and the cash owed on a loan at the end is lower since you put that forth initially.

I ask because I am looking to own my F80 longterm, and can responsibly lease/own, but want to initially lease given that I will be switching jobs and want to ensure some financial security in that I can always turn in the car at the end of the lease and the risk (with the lease) is retained by BMW.

Just want to make sure I am thinking this out properly but don't want to neglect any blatant advantages to one over the other.

Thanks!

Neither has anything to do with letting the lease end payoff. MSD is a refundable deposit that lowers your money factor. Cap cost is just letting the amount financed over a lease period. In each situation the lease end price is the same and is dictated by the residual percentage.
Leasing and buying at the end is not the best from a finance perspective but if you may need an easy out at three years it can be done.
I would avoid call cost reduction as it can be list money if something happens to the car or you decide to transfer the lease to another party.

[DDR MFS]

Originally Posted by OneRib

Neither has anything to do with letting the lease end payoff. MSD is a refundable deposit that lowers your money factor. Cap cost is just letting the amount financed over a lease period. In each situation the lease end price is the same and is dictated by the residual percentage.
Leasing and buying at the end is not the best from a finance perspective but if you may need an easy out at three years it can be done.
I would avoid call cost reduction as it can be list money if something happens to the car or you decide to transfer the lease to another party.

Thanks for clarifying and I feel like a moron

In readdressing this issue, if you have excellent credit (which I do), does it make sense to purchase MSDs since you will be getting the best MF or does it make sense to place additional money to reduce the cap cost?

Thanks!

[OneRib]

Originally Posted by DDR MFS

Thanks for clarifying and I feel like a moron

In readdressing this issue, if you have excellent credit (which I do), does it make sense to purchase MSDs since you will be getting the best MF or does it make sense to place additional money to reduce the cap cost?

Thanks!

Always better to pick msds over call cost reduction. Cap cost reduction only prepays the amount you are going to finance over the term of the lease. This is why it doesn't make sense to pay it. When financing a car the down payment not only reduces the total amount subject to financing you also have more equity in the car. You never have equity in a lease and your call cost reduction gets charged sales tax.

So you choose either msds or nothing.

[riccappa]

what is a balloon payment at lease end? And is this a good deal? Thinking about doing it with a trade in on my M235i.


2016 BMW M3.
This could be yours with a $5,976.00 Down Payment for 24 Months at 2.99% APR* with Monthly Payments ONLY $439.00 per Month with a Trade in Guarantee. 24 MONTH MILITARY FLEXIBLE OWNERSHIP PROGRAM In Cooperation with Global Credit Union.
Standard Options Include:
Comfort Access Keyless Entry
Power Front Seats with Lumbar Support
Heated Front Seats
Navigation System
Harman Kardon Surround Sound System
Advance Real Time Traffic Information
Free Home Shipping

*Disclaimer: Offer is subject to credit approval with Global Credit Union. Term up to 24 months; estimated monthly payment of $8.16 for every $1,000.00 borrowed for first 23 months, followed by a balloon payment for the remaining balance due on the 24th month. Rate stated is available to consumers with best credit history and applies to this sale only, your rate might be higher. 100% financing is available. Global Credit Union is federally insured by NCUA. Low monthly payments and the exclusive Bavarian Motor Cars Trade in Guarantee are available across the whole BMW and MINI range (excluding Motorcycles). Please contact your sales agent for more details. Stateside Trade in valid in the USA (includes Hawaii). Picture for illustration purposes only.

[OneRib]

Originally Posted by riccappa

what is a balloon payment at lease end? And is this a good deal? Thinking about doing it with a trade in on my M235i.


2016 BMW M3.
This could be yours with a $5,976.00 Down Payment for 24 Months at 2.99% APR* with Monthly Payments ONLY $439.00 per Month with a Trade in Guarantee. 24 MONTH MILITARY FLEXIBLE OWNERSHIP PROGRAM In Cooperation with Global Credit Union.
Standard Options Include:
Comfort Access Keyless Entry
Power Front Seats with Lumbar Support
Heated Front Seats
Navigation System
Harman Kardon Surround Sound System
Advance Real Time Traffic Information
Free Home Shipping

*Disclaimer: Offer is subject to credit approval with Global Credit Union. Term up to 24 months; estimated monthly payment of $8.16 for every $1,000.00 borrowed for first 23 months, followed by a balloon payment for the remaining balance due on the 24th month. Rate stated is available to consumers with best credit history and applies to this sale only, your rate might be higher. 100% financing is available. Global Credit Union is federally insured by NCUA. Low monthly payments and the exclusive Bavarian Motor Cars Trade in Guarantee are available across the whole BMW and MINI range (excluding Motorcycles). Please contact your sales agent for more details. Stateside Trade in valid in the USA (includes Hawaii). Picture for illustration purposes only.

This isn't a lease. This is a financing option similar to BMW's owners choice. You will owe all the money due at the end of 24 months, which will be substantial. It's geared for people who want to own the car but don't want to commit significant capital to the car. It only works for a very narrow segment of car buyers. You can look up the PennFed saver loan as its similar.

[SROC3]

Originally Posted by BMWM4_21

I hope this is the right thread to post lease numbers on, do any of you think these are solid lease deals on a 2016 BMW M4 Coupe? The 2nd one they told me the money factor was the buy rate, assuming that's .00137 at the moment.

1) MSRP: $75,045.00
Cap Cost $69,965.00
Residual is 58% or $43,526.10

Money Factor: .00149 (3.576%)
36 months/ 10K per year
$2000 Total Cash Down

(Acquisition fee $995)

$921 plus tax
$995.51 including OC tax

2) MSRP: $70,445
Cap Cost: $66,350
Residual Value: 58%

Money Factor: .00137
36 months/10K miles
$2,500 drive off

Acquisition Fee: $925

$904 +tax
$976 including OC tax

Personally would go with option #1 - BUT that MF should be .00131.
Check your Messages sent you a PM.

[BIGW0RM]

Does anyone let the dealer pad the money factor? Or do you all hold ground at .000131?

[OneRib]

Originally Posted by ILSMKU

Working on a deal!

Great! Good luck.