BMW M3 and M4 Lease Rates (36 months)

[DrtyJrze]

Double post

[BMWFanatic2008]

Originally Posted by speedmaster20d

Thanks guys, the reason I want to do this is I don't want to drop 85K in to a depreciation asset right away. I want to pay something like 30-35K to get the car then pay relatively low monthly payments (no more than 600) for a couple of years then pay the residual. That's why I am looking at lease, is there something better that fits this criteria?

So I guess I have to move away from this particular dealer? it seems he offered my a lease APR if about 11%! I think he added another 10K "market value adjustment" because it's a "rare" car, is that common or he just though I would fall for it?

Read leasing 101 on bimmerfest forum. You shouldn't put any money down on a lease. If you get into accident and your car gets totalled, you will lose all of it.

[WilliCO]

Originally Posted by BMWFanatic2008

Read leasing 101 on bimmerfest forum. You shouldn't put any money down on a lease. If you get into accident and your car gets totalled, you will lose all of it.

I swear this comes up every day. The way you say it makes it sound like some account rep at BMWFS is just waiting for your car to be totaled so he can claim your down payment as a Christmas bonus or something. It's not quite like that.

The real deal is this -

A lease and a standard auto loan are similar, in that at any point in the term of the agreement, you have a remaining balance you still owe. In the event of a total loss, the lender gets his money first.

So, if your car gets totaled, the insurance company will pay out the market value of the car. BMWFS will deduct the remaining lease obligation amount and send the rest to you. So, in this sense, you don't necessarily lose your down payment.

Now, if you are profoundly unlucky and your car gets totaled or stolen very early in the term of your lease (or conventional loan), that notorious initial deprecation hit may cause the market value of the car to be disappointingly low. If it's so low that the insurance payoff doesn't even cover the remaining lease obligation, BMW leases have gap insurance that covers you. Or, it may be low such that the insurance payoff does cover the remaining obligation but there's not enough surplus to give you your whole down payment back - no help from gap insurance there, and you effectively lose the shortage.

That won't happen very often though, and the longer you are in your lease the closer the market value of the car and the lease obligation align. Plus, figure that your lease down payment sort of amortizes itself away a little with each payment and by the time you are late in the lease term you aren't really entitled to much of it back anyhow.

That's a lot of words, but the net is that losing the down payment in a total loss event isn't really a material risk in leasing. What is more material is that you will decide you want out of the lease and you won't be able to find anyone to give you your MSD or down payment back in the lease assumption deal.

[speedmaster20d]

Well... with lease interest is charged on the depreciation of the car, if you pay most of it up front you pay less interest but it has these risks too... If the APR is low like what has been said in this thread (~3%) you are better off investing that sum since a standard MF will beat the APR in ~3yrs, but if the interest is as high my quote came to, it is not worth it. I still can't figure out how he had calculated the monthly.

[GregW / Oregon]

Originally Posted by speedmaster20d

Thanks guys, the reason I want to do this is I don't want to drop 85K in to a depreciation asset right away. I want to pay something like 30-35K to get the car then pay relatively low monthly payments (no more than 600) for a couple of years then pay the residual. That's why I am looking at lease, is there something better that fits this criteria?

Take out a conventional car loan for 60 or 72 months. Rate should be in the 2 - 2.4% range if you have good credit. Then pay off whenever you want; most do not have penalty for early payment.

[doug_999]

I erased my first post - which was snotty (just the letmegooglethisforyou on lease down payments).

Anyway...
Some Finance companies will let you do a single up front lease payment - I suspect that you might be able to get an M3 for around $36K for three years - paid up front). I would look into this if you are really interested in dropping $30K up front on something you won't own.

[CRtoE92]

Updated my final lease deal
MSRP 67800
Selling price 64500 (+1500 invoice)
15k/yr @ 55%
MF 0.00081 with 7 MSDs ( 900 x7 ) = $6300
New grad incentives = $1000
Un4gettable voucher. = $1000
BMW CCA = $500
Deposit to order by build. = $1000

Total drive off. =$9800
Total money out of my pocket spent after the lease due is $1000 out of $9800
Im getting $6300 back

Mo pmt $878 with 9% Tax

Per my experience with E92 M3. The actual market value of the car after 3years was easily above $43k. Now this being said. Im gonna try to sell it close to my lease due.

I think i could sell it for at least 42k and my residual will be $37290. So i will get out of lease with at lease $4000 profit perhaps more. Another reason why i got AW with SO. This popular combo has high demands

If i divide that into 36months.
My original monthly pmt would be $767

I know im being very optimistic but its not impossible either. When i purchased my previous M3 back in 2011 as used. I could not find anything under $42k with approx 40000 miles(purchased my 2008 MR w/ novillo leather M3 fullyloaded (DCT, HK , adaptive sus, navi, rear sunvisor ) 38k miles for $44k
Many of them were 6speed without all options equipped
I know new M3/M4 has worse residual than e92 m3 but i think my prediction is not impossible.

[Fahrvergnügen]

Hi everyone, this is my first post on Bimmerpost. I am ending my MW 2012 Z4 M-sport lease and looking to get into a 2015 SO M4. I have gotten a few quotes from a few dealers and the best is below.

Reminder, since I live in Chicago, I've been told the Owners Choice lease is better (in terms of taxes) than a traditional lease. However, Owners Choice does not allow MSDs to be used

MSRP: $66,900 (stripper car)
- SO ($550)
- 19'' black rims ($1,200)
- Manual (minus $2,900)
- Cloth leather interior

58% residual
36 months
$5,000 down (no MSDs as an option)
10,000 miles/year
$950 destination and handling

Dealer quote: $898/mo. (Remember Chicago taxes are extremely high and I am putting $5k down).

They mentioned European Delivery is not going to save any money since it is on allocation.

Can anyone comment on the deal and if it is good or not? What I should ask the dealer?

Thanks everyone!

[dmk08]

Originally Posted by ChicagoM4

Hi everyone, this is my first post on Bimmerpost. I am ending my MW 2012 Z4 M-sport lease and looking to get into a 2015 SO M4. I have gotten a few quotes from a few dealers and the best is below.

Reminder, since I live in Chicago, I've been told the Owners Choice lease is better (in terms of taxes) than a traditional lease. However, Owners Choice does not allow MSDs to be used

MSRP: $66,900 (stripper car)
- SO ($550)
- 19'' black rims ($1,200)
- Manual (minus $2,900)
- Cloth leather interior

58% residual
36 months
$5,000 down (no MSDs as an option)
10,000 miles/year
$950 destination and handling

Dealer quote: $898/mo. (Remember Chicago taxes are extremely high and I am putting $5k down).

They mentioned European Delivery is not going to save any money since it is on allocation.

Can anyone comment on the deal and if it is good or not? What I should ask the dealer?

Thanks everyone!

What is owners choice? Is that like BMW select? If so isn't it a 5yr payment term?

[Fahrvergnügen]

Owner's Choice is a program in Illinois to relieve the double taxation a normal lease would incur on a leased car.

If someone leases a car in Illinois, they are taxed on the full capitalized cost of the car (not just the depreciated amount) AND they incur a lease tax on each monthly payment. It is a well-known double dip by the state government which the dealerships are combating.

Owner's Choice allows the dealers to structure their leases as a financed deal but also as a lease (avoiding the double taxation).

Welcome to Chicago!

[dmk08]

Originally Posted by ChicagoM4

Owner's Choice is a program in Illinois to relieve the double taxation a normal lease would incur on a leased car.

If someone leases a car in Illinois, they are taxed on the full capitalized cost of the car (not just the depreciated amount) AND they incur a lease tax on each monthly payment. It is a well-known double dip by the state government which the dealerships are combating.

Owner's Choice allows the dealers to structure their leases as a financed deal but also as a lease (avoiding the double taxation).

Welcome to Chicago!

Nice. Here in GA they charge you 6-7% tag tax you on the full price of the vehicle up front. Don't ever see it again. Seems much better to lease in Cali or somewhere that only charges the lease cost in taxes.

[Fahrvergnügen]

Yeah, it is a nice program for dealers to stay in business in Chicago. However, we are still hit with a 9.5% tax.

[MFNATIK]

wow, this thread is very helpful. Its actually changed the way I look at leases now that I understand how it works. Thanks everyone!

[Gac101177]

Hello i found a lauch AY M4 at a dealership

im thinking on pulling the trigger and getting the car but im afraid the car has been test drove a few times now, what do you guys think, price 79,600 msrp, selling price 78,100.
1,144 a month tax include, 1835 at pickup 1st moths plus fees, MF 0.130 residual 58 do you guys think its a good deal or should i just orde a new car.

[doug_999]

Originally Posted by Gac101177

Hello i found a lauch AY M4 at a dealership

im thinking on pulling the trigger and getting the car but im afraid the car has been test drove a few times now, what do you guys think, price 79,600 msrp, selling price 78,100.
1,144 a month tax include, 1835 at pickup 1st moths plus fees, MF 0.130 residual 58 do you guys think its a good deal or should i just orde a new car.

Best possible car you can buy is one that was run hard from the start. Seriously.

[F82_SID]

Originally Posted by Gac101177

Hello i found a lauch AY M4 at a dealership

im thinking on pulling the trigger and getting the car but im afraid the car has been test drove a few times now, what do you guys think, price 79,600 msrp, selling price 78,100.
1,144 a month tax include, 1835 at pickup 1st moths plus fees, MF 0.130 residual 58 do you guys think its a good deal or should i just orde a new car.

You should be getting a much steeper discount than that on a demo! I got 3k off of Euro MSRP on a brand speaking new car. That being said, it's instant gratification if you suck it up and get it now. I would offer 74k though if it was me.

[Gac101177]

Originally Posted by F82_SID

You should be getting a much steeper discount than that on a demo! I got 3k off of Euro MSRP on a brand speaking new car. That being said, it's instant gratification if you suck it up and get it now. I would offer 74k though if it was me.

Thanks
Has anyone in this forum gotten so much discount on a launch model
It's almost 6000 off msrp? Just curious.

[GrussGott]

Originally Posted by Jason

36 months rates are out.

15k miles - 55% residual
12k miles - 57% residual
10k miles - 58% residual
.00130 Money Factor

jason - any idea when the convertible rates will be released?

[GrussGott]

Anybody hearing that ED lease rates have a .0003 MF mark up from BMWFS?

EDIT: never mind, @drtyjrze had the info as well as jimmy here

[kriegs]

Originally Posted by Gac101177

Thanks
Has anyone in this forum gotten so much discount on a launch model
It's almost 6000 off msrp? Just curious.

$1500 off MSRP all reducing the capitalized cost and the dealer not marking up MF and giving you the base rate tells me this is a fair deal.

I just walked from my order because the dealer played games and marked up the MF on a lease by 60 basis points as well as using my deposit and discount for cash due at signing intend of reducing the capitalized cost. When I pointed it out, I got so frustrated explaining it to the Finance manager that I would not do business with them and will wait. So close... but yet, so far

[Gac101177]

Originally Posted by kriegs

$1500 off MSRP all reducing the capitalized cost and the dealer not marking up MF and giving you the base rate tells me this is a fair deal.

I just walked from my order because the dealer played games and marked up the MF on a lease by 60 basis points as well as using my deposit and discount for cash due at signing intend of reducing the capitalized cost. When I pointed it out, I got so frustrated explaining it to the Finance manager that I would not do business with them and will wait. So close... but yet, so far

I feel you my only hesitation it's the car has been driven 400 miles god knows how and a few people have told me I should get a bigger discount but haven't heard anyone getting one, also I know I can order the car for the same deal in a different dealer In Fl. Oh decisions

[dmk08]

Originally Posted by Gac101177

I feel you my only hesitation it's the car has been driven 400 miles god knows how and a few people have told me I should get a bigger discount but haven't heard anyone getting one, also I know I can order the car for the same deal in a different dealer In Fl. Oh decisions

When I test drove a demo car I was allowed to test out the performance. Car only had a few hundred miles on it.