BMW M3 and M4 Lease Rates (36 months)

[TheRealOrosie]

Originally Posted by Powaup

+10000 THANK YOU lol GT3 all the way

Um....GT2 RS, thanks.

[sor]

Originally Posted by NewNole2001

I'm guessing on both of those leases you were taking advantage of residuals at 63% or better,maxing out your MSDs, and doing an ED Invoice+profit and base MF/Dealer fees?

No, as mentioned, just ~2k out the door. My numbers are before tax, as well, otherwise it skews things when comparing on forums or cross-shopping between states. Like I said, I won't say that any car can be had for these rates, just that I hold out for those because I know they'll come around and it's the threshold that makes leasing worth it to me. If you look back at Money2536's original post, you'll see there's a whopping 0% discount, which is why it's a bad example, IMO.

My first BMW had 60% residual with a .0008 MF (~1.9%), my second had 64% residual with .00125 MF, if I remember correctly. Neither were smoking as far as sale price, but not terrible... ~1000 over invoice. That last deal was so good that I was actually able to trade the lease after two years, I put it up and it was gone within a week.

FWIW, with 57% residual and .0013 rate I'm getting $12.77 per 1k of MSRP ($830 + tax) on a $65k vehicle, with a target discount of $3200 (which admittedly might be tough for a new release). That's not too far off from what I was saying, so I'm not sure why it's so surprising that a slightly better residual or money factor would tip it into this *magic* arbitrary range of mine.

I don't even remember the numbers on my Audi, they were such a pain to deal with I spent 6 hours negotiating.

[dmk08]

Originally Posted by P-Town550i

Um....GT2 RS, thanks.

My buddy just got a new Turbo S Cab. I would definitely roll in it.

[five3three]

Originally Posted by M Fanatic

That's not true at all. In NJ, we pay tax on the MSRP - Residual, which is a lot less than paying tax on the full price. This is one of the reasons why I lease my cars.

Originally Posted by rallybull

If you purchase a car and later trade it in, you should get back the tax on the trade in value.

So much generalization here. Each state is different.

Some states charge you tax on the full sale price, regardless if lease or buy.

Some states don't care about if you trade in a car to reduce your taxes and still tax you on the full sale price of the car.

Some charge you property taxes annually on the full value of the car regardless if bought or leased.

Other states are much more lease friendly and only charge you taxes on the leased amount and/or allow trade ins to reduce your tax burden on your next car.

[tottixie]

anyone know if this rates are same for canada?

[Alessandro]

Originally Posted by tottixie

anyone know if this rates are same for canada?

No still not announced for Canada, i am waiting as well to finalize the deal.

[m3less]

Is it possible to purchase a 36 month lease as a whole up front?

[Powaup]

Originally Posted by m3less

Is it possible to purchase a 36 month lease as a whole up front?

Yea but if you total the car or the car gets stolen BMW does not give you your money back (whatever is left from your cap cost reduction)

Thats why everybody on here discuses lease terms with 0 down, you can get all of your fee's and tax rolled into your monthly payments.

[m3less]

Wouldn't insurance cover in case it was totaled?

[Tonymiabmw]

Originally Posted by Powaup

+10000 THANK YOU lol GT3 all the way

Yeah if Porsche could get the new ones to stop catching fire Id agree.

[WilliCO]

Originally Posted by Powaup

Yea but if you total the car or the car gets stolen BMW does not give you your money back (whatever is left from your cap cost reduction)

Not quite that simple. The risk is that you are at the mercy of the insurance payoff. If it's a decent one, you could end up getting some or all of your cap cost reduction back. If it's not, you could lose some or all of it.

Here is a great explanation.

Summary - at any point in the term of a lease, there's a balance you owe to BMWFS. That balance is lower if you provided a cap cost reduction.

If your car is totaled or stolen, the insurance payoff applies to whatever the outstanding balance of the lease is:

• If insurance payoff > lease balance, you get the difference back (Thing is, depending on the insurance payoff, what you get back may be less than your cap cost reduction or the prorated amount of it that remains).
• If insurance payoff < lease balance, the gap insurance in your lease protects you and you're off the hook.

Really, all these risks are still there if you finance a car with a large down payment. Except, with financing, you probably didn't buy gap insurance, whereas it's included with a BMW lease.

So...it's no more inherently bad to use a large down payment on a lease than it is on a purchase. The more germane question is what else you might be able to do with the down payment money. MSDs, for example, have less of an effect on your lease payment but you get the money back at the end of the lease.

[Powaup]

Originally Posted by WJGreer

Not quite that simple. The risk is that you are at the mercy of the insurance payoff. If it's a decent one, you could end up getting some or all of your cap cost reduction back. If it's not, you could lose some or all of it.

Here is a great explanation.

Summary - at any point in the term of a lease, there's a balance you owe to BMWFS. That balance is lower if you provided a cap cost reduction.

If your car is totaled or stolen, the insurance payoff applies to whatever the outstanding balance of the lease is:

• If insurance payoff > lease balance, you get the difference back (Thing is, depending on the insurance payoff, what you get back may be less than your cap cost reduction or the prorated amount of it that remains).
• If insurance payoff < lease balance, the gap insurance in your lease protects you and you're off the hook.

Really, all these risks are still there if you finance a car with a large down payment. Except, with financing, you probably didn't buy gap insurance, whereas it's included with a BMW lease.

So...it's no more inherently bad to use a large down payment on a lease than it is on a purchase. The more germane question is what else you might be able to do with the down payment money. MSDs, for example, have less of an effect on your lease payment but you get the money back at the end of the lease.

thank you very much for explaining that to me. I'm thinking about putting down ~$9500 and ~$4200 in MSDs (30.48% savings equivalent APR). My dealer has been almost begging me not to put a large amount down though

[WilliCO]

Originally Posted by Powaup

thank you very much for explaining that to me. I'm thinking about putting down ~$9500 and ~$4200 in MSDs (30.48% savings equivalent APR). My dealer has been almost begging me not to put a large amount down though

MSDs are a no-brainer if you have the cash, because it remains your money - unless you trash the car and end up in a fight with BMW on the way out of the lease, in which case they have a lot of your dough.

Setting that aside, there's no real reason not to do them unless optics of the monthly payment are very important to you - in which case a dollar of cap cost reduction has more effect on the payment than an MSD dollar. As it should, since you are actually spending that money.

When I leased an F10 last summer, I was coming off of an E60 that had been paid off for 5 years. There was no way I could go from no payment to ~$750 in one step without my wife wringing my neck. I threw my trade equity at the lease, all $10,800 of it. By result, I've got a $421 lease payment on a 5 series, which is pretty awesome - though I realize the other shoe will drop at the end of this lease.

Everyone has their own priorities.

[MDIVISION]

Originally Posted by m3less

Wouldn't insurance cover in case it was totaled?

Yes, BMW lease includes GAP insurance.

[kitw]

Originally Posted by NYAWE60

I would ask why would anyone pay $1100+/month for an M4 when you can get a $100K Carrera S for similar lease payment but I know the honest answer is to each his own. I love BMWs, always have and always will, but way they've climbed in price AND WEIGHT so much. Personally, my money, I'd be in a Carrera S all day. There are lease deals out there for $97000+ Carrera's, $4K down and $949/month +tax. Comparing MSRP's alone with the 911 and M3/M4, the Porsche is a bargain by a huge margin. My .02, if you've never driven a Porsche, go test drive one ASAP.

Nah, there are no Carrera S deals at $1100 anymore. That was a very narrow window at the tail end of 2013 when there were a bunch of leftover 2013s and the 2014s were on the lots. Porsche kept the residuals high and starting discounting but those days are long gone.

Expect a normally optioned 2014 C2S to be in the $1350 range now. I'm likely going to sell my C4S cab when the M3/M4 starts getting discounted a bit. A base C2 is going to be slower (similar weight, less power) and a C2S probably similar, with a lot less torque.

[doug_999]

Multiple MSDs are a bad bad idea.... you are really stuck in that car for the duration of the lease. Getting someone to take over a lease with MSDs is nearly impossible and you will be out that cash. You better be sure the savings are worth the risk.....

[DukeCapitalM3]

Originally Posted by Kief

And now you have a trade...you're killing me

Seriously, I would not even consider leasing if you were planning on putting anywhere near that kind of money into it. You're better off using that 35k equity on a finance.

35k would pretty much cover the life of the lease on it's own so you could put 10 down and then use 25k to cover the next 2 years then pay your final year as you go. Agree you could prob negotiate a good financing deal with that kind of money down.

The best thing about leasing, which I learned the hard way, is if the car get's wrecked you are in much better shape with a lease. You get the car fixed, and the diminished value issue is not your problem. Turn that baby back in and move on.

If you own? M3 wrecked? Expect $12-$18k knockoff on trade in due to CARFAX report. HUGE Pain in the ass.

[Gcat333]

Originally Posted by AlexN

the difference is that 2011 was the last year for the E90.
they really had aggressive rates on the E90's in May-June of 2011 (economy was also hurting much so they had to do something to sell cars).
I was able to lease a 2011 335i (ED) fully loaded (MSRP ~$55k) for $530 tax included

It's a different story now - a new model just coming out, with a lot of hype around it.
If anything, you'll see $10k dealer mark ups at first, so you can't really compare the two

You will not see 10K dealer mark ups at a factory store.

[WilliCO]

Originally Posted by doug_999

Multiple MSDs are a bad bad idea.... you are really stuck in that car for the duration of the lease.

Trying to get out of a lease early is a bad idea in general, more so if you've paid up front to make the payments less expensive.

I've been out to leasetraders; it seems clear that the lease "sellers" are more motivated than the "buyers" in most cases. If you did a cap cost reduction or an MSD play, you probably leave that money on the table to get out of the lease. Best to stick it out to the end.

[TheRealOrosie]

Originally Posted by WJGreer

Trying to get out of a lease early is a bad idea in general, more so if you've paid up front to make the payments less expensive.

I've been out to leasetraders; it seems clear that the lease "sellers" are more motivated than the "buyers" in most cases. If you did a cap cost reduction or an MSD play, you probably leave that money on the table to get out of the lease. Best to stick it out to the end.

This is why I never put a penny more down than the minimum needed for drive off with a lease. I usually end up waiting until my payoff quote is at least what I can get for the car in a private sale....and unload it if I feel the need. If not, just turn it in at the end of the lease.

[Alpine F31]

Originally Posted by BlackJetE90

No thanks, GT3 over Turbo all day long.

All day, every day.

[Nutinup]

Originally Posted by ///Mangler

It is insignificant if you are willing to lose $30k on buying a new $75k vehicle. $2400 over 2years is completely insignificant when you are losing 600% more than that every month.

I never will be able to wrap my head around buying a new vehicle. Much less a 70-80k one. Not that I can't afford one, just can't rationalize it.

T

YEP...what he said.....