BMW M3 and M4 Lease Rates (36 months)

[Vitacura]

It is very rare, but it has happened. The insurance company will pay the value of the vehicle at the time of loss. (Depending on type of coverage) If the value is less than the payoff, BMWFS gap covers the difference. If it is above the payoff (which some members have reported) then the difference between the payoff and insurance payout, minus deductible, goes to the lessee.

[F80zcp]

Originally Posted by 'Cane

No, that is not how a lease works.

At any point in time, during your lease there is a number which you can pay to buy the car outright. Go look in the for sale thread and on lease transfer offers, the seller usually posts the "Current Buyout Price". If that price is lower than what the insurance determines is the value of your car, they pay out the full value to BMWFS and then BMWFS cuts you the check for the difference.

Come on guys. You really think if you put down $50k on a lease and total the car the following week all that money is gone?

[F80zcp]

Originally Posted by doug_999

As Cane points out, I don't believe that is correct. The Lessee is not the owner of the car, BMWFS or the Lessor is - so if there was more money in the car (which um, well, just doesn't happen too often), BMW would get it, not the Lessee.

I was in a situation where the prior leasee of a car I swapped into had put down a very large down payment. I had equity in the car and confirmed this with BMWFS. If I sold it outright I could give them the payoff amount and keep the difference. They confirmed it's the same scenario if it were totaled/stolen and the insurance paid out the market value.

You're right, it's rare to have positive equity in a leased car, but it's possible with a large enough down payment.

[///Rival]

Originally Posted by F80zcp

At any point in time, during your lease there is a number which you can pay to buy the car outright. Go look in the for sale thread and on lease transfer offers, the seller usually posts the "Current Buyout Price". If that price is lower than what the insurance determines is the value of your car, they pay out the full value to BMWFS and then BMWFS cuts you the check for the difference.

Come on guys. You really think if you put down $50k on a lease and total the car the following week all that money is gone?

Correct. I totaled a leased car and got a check for the equity from insurance.

[mile2424]

Originally Posted by turboso

hey guys I got a great deal:
imola red msrp $78145
$9600 discount
$3000 lease credit
$750 loyalty
$500 m gruppe
$799 a month 12k a year lease
$1200 down payment

The guy told me that before months end can do the same deal if anyone is interested. They have another imola $81045 msrp dct in stock. Inbox me if anyone else is interested

What's the loyalty and m gruppe discount from? Working on a lease myself and have never leased through BMW before. Appreciate the help!

[Thescout13]

Originally Posted by mile2424

What's the loyalty and m gruppe discount from? Working on a lease myself and have never leased through BMW before. Appreciate the help!

M Gruppe is like a fleet discount. PM me for more info so we don't clog up thread.

[jttBimmer]

Is anyone still getting decent deals or is that unrealistic based on fairly limited supply and the current M3 being out of production? I am talking to a couple dealers in South FL that have M3s on the lot that may be a fit and they don't seem to be willing to move much. Or that just a too much money in South FL for them to deal thing?

[MRCUR]

Originally Posted by jttBimmer

Is anyone still getting decent deals or is that unrealistic based on fairly limited supply and the current M3 being out of production? I am talking to a couple dealers in South FL that have M3s on the lot that may be a fit and they don't seem to be willing to move much. Or that just a too much money in South FL for them to deal thing?

South FL is notoriously bad for deals. Look out of state.

[jttBimmer]

Originally Posted by MRCUR

South FL is notoriously bad for deals. Look out of state.

Damn. I should have started this process much earlier. My lease is up in 2 weeks and I had been set on buying a Wrangler now I've changed my mind, if I can find a decent deal, but haven't left myself much time to do so. I was trying to stick with FL but not a lot of matches for what I'm looking for.

It would be nice if there was a way to accurately search nationwide instead of going dealer to dealer but if there is I haven't found it.

[MRCUR]

Originally Posted by jttBimmer

Damn. I should have started this process much earlier. My lease is up in 2 weeks and I had been set on buying a Wrangler now I've changed my mind, if I can find a decent deal, but haven't left myself much time to do so. I was trying to stick with FL but not a lot of matches for what I'm looking for.

It would be nice if there was a way to accurately search nationwide instead of going dealer to dealer but if there is I haven't found it.

Check sites like auto trader & cars.com. Most dealers put their inventory on their.

['Cane]

Originally Posted by jttBimmer

Is anyone still getting decent deals or is that unrealistic based on fairly limited supply and the current M3 being out of production? I am talking to a couple dealers in South FL that have M3s on the lot that may be a fit and they don't seem to be willing to move much. Or that just a too much money in South FL for them to deal thing?

I got a great deal on an Imola F80 from a dealer in FL, if you want my SA’s contact info, DM me. I didn’t lease, but I know someone that did and also got a great deal.

[javi335is]

Originally Posted by turboso

hey guys I got a great deal:
imola red msrp $78145
$9600 discount
$3000 lease credit
$750 loyalty
$500 m gruppe
$799 a month 12k a year lease
$1200 down payment

The guy told me that before months end can do the same deal if anyone is interested. They have another imola $81045 msrp dct in stock. Inbox me if anyone else is interested

Adios no eran 600 al mes jaja

[dkmcali2002]

so i got a new 2018 M3 MSRP 84900. agreed upon sales price was 78935. my understanding was that this was before 4000 in incentives.

do the numbers for the deal look right? my monthly payments seem a little high no? did they somehow screw me over on the terms? should be residual of 61% 10k miles 3 yr lease money factor of 0.00168 or 166.

keep in mind i paid nothing in drive off. did they just roll my normal drive off stuff into the amount financed or something? (i told them i didn't want to put anything down, but i think they took that to mean i did not want to give them anything out of pocket) i realize that this is not what i want to do but its through the business so it isn't that big of a deal to me.

thanks for your feedback.

(see attachments for my paperwork)

[dawei213]

Originally Posted by dkmcali2002

so i got a new 2018 M3 MSRP 84900. agreed upon sales price was 78935. my understanding was that this was before 4000 in incentives.

do the numbers for the deal look right? my monthly payments seem a little high no? did they somehow screw me over on the terms? should be residual of 61% 10k miles 3 yr lease money factor of 0.00168 or 166.

keep in mind i paid nothing in drive off. did they just roll my normal drive off stuff into the amount financed or something? (i told them i didn't want to put anything down, but i think they took that to mean i did not want to give them anything out of pocket) i realize that this is not what i want to do but its through the business so it isn't that big of a deal to me.

thanks for your feedback.

(see attachments for my paperwork)

Based on the info you provided, a few things stand out.
1) If your agreed sales price is 78,935, does that include destination charge? If so, what’s in section 13? If not, then that means destination charge is 995, which would bring the total to 77,930. In your sheet, your gross capitalization cost is 77940 so they tacked another $10. So your true agreed sales price is 77,940. If it's already includes destination, that means they tacked the additional amount.
2) I'm surprised the residual is at 61% as it should be 57%. Did they make a mistake?
3) At the Adjusted Cap cost provided and with residual of 61% and your monthly base payment, the provided MF is 0.00206. The base rate is 0.00166.

Let's say they made a mistake with the residual and up mark you with the MF, if they fixed it to 57% and lower the MF down to 0.00166, your new monthly payment pre-tax is 1041.33, which is $37 higher than your current deal. So having the higher residual and even higher MF still works out better. The only scenario it won’t work out better is if you plan to buy out the lease.

If you can post all the relevant paper work to your deal, it’ll be easier figure out your deal because base on the information you provide, I can’t see how the 4k incentives is factored into the deal when the dealer explicitly wrote the cap reduction to the price is only $1630.95 which brings your cap cost to $78,309.

But based on what you provide so far, this is what I’ve figured out:

1. MSRP $84,900
2. Residual % 0.61
3. Residual Value $51,789.00
4. Negotiated Sales Price $78,935
5. Additional fees (doc/etc) $1,005
6. Gross Capitalization Cost $79,940
7. Rebates/Incentives/Down ($1,631)
8. Adjusted Capitalization Cost $78,309
9. Total Depreciation $26,520.05

10. Monthly base payment $736.67
11. Monthly rent charge $268.00
12. Monthly payment $1,004.67
13. Monthly tax $95.44
13. total lease payment. $1,100.11
14. Total payments over 3 years $39,604.09


It seems like they are adding in an additional $1005 on top of your agreed price which would bring it to $79,940. In section 9, it looks like you’ll be putting some down payment with first month lease and all other fees. What they are doing is using your down payment of $1631 to to reduce your Adjusted capitalization cost to $78,309. I’m assuming the lease tax where you live is 9.5% because that’s the number which works your monthly payment to $1100.11. But that means you’re really paying out an additional $1631 + $1268.94 for licence/fees/docs/etc.

Let’s say you get the deal most get here with agreed sales price at invoice and with base MF of 0.00166 and residual of 57% with the current incentive of $3k lease and $500 for fleet (Gruppe, Costco, Corporate, fleet, etc), but you still pay out of pocket $1268.94 for license/fees/docs/etc, this is what your deal would look like:

1. MSRP $84,900
2. Residual % 0.57
3. Residual Value $48,393.00
4. Negotiated Sales Price $79,533
5. Additional fees (doc/etc) $0
6. Gross Capitalization Cost $79,533
7. Rebates/Incentives ($3,500)
8. Adjusted Capitalization Cost $76,033
9. Total Depreciation $27,639.60

10. Monthly base payment $767.77
11. Monthly rent charge $206.55
12. Monthly payment $974.31
13. Monthly tax $92.56
13. total lease payment. $1,066.87
14. Total payments over 3 years $38,407.42

I can’t say this is a terrible deal depending on your region, but if you may be considering a buyout at the end of your lease, then yes it is not a good deal.

[doug_999]

We shall call dawei213 , the Lease Whisperer

[jjrandorin]

Originally Posted by dawei213

Based on the info you provided, a few things stand out.
1) If your agreed sales price is 78,935, does that include destination charge? If so, what’s in section 13? If not, then that means destination charge is 995, which would bring the total to 77,930. In your sheet, your gross capitalization cost is 77940 so they tacked another $10. So your true agreed sales price is 77,940. If it's already includes destination, that means they tacked the additional amount.
2) I'm surprised the residual is at 61% as it should be 57%. Did they make a mistake?
3) At the Adjusted Cap cost provided and with residual of 61% and your monthly base payment, the provided MF is 0.00206. The base rate is 0.00166.

Let's say they made a mistake with the residual and up mark you with the MF, if they fixed it to 57% and lower the MF down to 0.00166, your new monthly payment pre-tax is 1041.33, which is $37 higher than your current deal. So having the higher residual and even higher MF still works out better. The only scenario it won’t work out better is if you plan to buy out the lease.

If you can post all the relevant paper work to your deal, it’ll be easier figure out your deal because base on the information you provide, I can’t see how the 4k incentives is factored into the deal when the dealer explicitly wrote the cap reduction to the price is only $1630.95 which brings your cap cost to $78,309.

But based on what you provide so far, this is what I’ve figured out:

1. MSRP $84,900
2. Residual % 0.61
3. Residual Value $51,789.00
4. Negotiated Sales Price $78,935
5. Additional fees (doc/etc) $1,005
6. Gross Capitalization Cost $79,940
7. Rebates/Incentives/Down ($1,631)
8. Adjusted Capitalization Cost $78,309
9. Total Depreciation $26,520.05

10. Monthly base payment $736.67
11. Monthly rent charge $268.00
12. Monthly payment $1,004.67
13. Monthly tax $95.44
13. total lease payment. $1,100.11
14. Total payments over 3 years $39,604.09


It seems like they are adding in an additional $1005 on top of your agreed price which would bring it to $79,940. In section 9, it looks like you’ll be putting some down payment with first month lease and all other fees. What they are doing is using your down payment of $1631 to to reduce your Adjusted capitalization cost to $78,309. I’m assuming the lease tax where you live is 9.5% because that’s the number which works your monthly payment to $1100.11. But that means you’re really paying out an additional $1631 + $1268.94 for licence/fees/docs/etc.

Let’s say you get the deal most get here with agreed sales price at invoice and with base MF of 0.00166 and residual of 57% with the current incentive of $3k lease and $500 for fleet (Gruppe, Costco, Corporate, fleet, etc), but you still pay out of pocket $1268.94 for license/fees/docs/etc, this is what your deal would look like:

1. MSRP $84,900
2. Residual % 0.57
3. Residual Value $48,393.00
4. Negotiated Sales Price $79,533
5. Additional fees (doc/etc) $0
6. Gross Capitalization Cost $79,533
7. Rebates/Incentives ($3,500)
8. Adjusted Capitalization Cost $76,033
9. Total Depreciation $27,639.60

10. Monthly base payment $767.77
11. Monthly rent charge $206.55
12. Monthly payment $974.31
13. Monthly tax $92.56
13. total lease payment. $1,066.87
14. Total payments over 3 years $38,407.42

I can’t say this is a terrible deal depending on your region, but if you may be considering a buyout at the end of your lease, then yes it is not a good deal.

Just eyeballing the posters paperwork (not running it through a lease calculator), it appears to me that the 4k is being used to pay for drive offs, not as cap cost reduction (well 1631 down is included in that 4k of drive offs, the rest is first month, registration etc, according to the screenshot).

[dawei213]

Originally Posted by jjrandorin

Just eyeballing the posters paperwork (not running it through a lease calculator), it appears to me that the 4k is being used to pay for drive offs, not as cap cost reduction (well 1631 down is included in that 4k of drive offs, the rest is first month, registration etc, according to the screenshot).

You're absolutely right! Shouldn't have try to calculate it after a night of partying and trying to do math at 2am

Since that's the case, then the negotiated sales price is really just a little under invoice + $500, which really isn't bad, especially given the old residual value and even with the higher MF.

You may try to lower the MF to say 0.00166 but they may realize lower the residual to 0.57% as well. If that's the case, you'll end up with a worse deal by about $40 a month:

1. MSRP $84,900
2. Residual % 0.57
3. Residual Value $48,393.00
4. Negotiated Sales Price $79,940
5. Additional fees (doc/etc) $1,269
6. Gross Capitalization Cost $81,209
7. Rebates/Incentives ($2,900)
8. Adjusted Capitalization Cost $78,309
9. Total Depreciation $29,915.91

10. Monthly base payment $831.00
11. Monthly rent charge $210.33
12. Monthly payment $1,041.32
13. Monthly tax $98.93
13. total lease payment. $1,140.25
14. Total payments over 3 years $41,048.94

BUT if you can lower the MF and keep the residual at 61%, then you'll end up with a better deal by about $57:

1. MSRP $84,900
2. Residual % 0.61
3. Residual Value $51,789.00
4. Negotiated Sales Price $79,940
5. Additional fees (doc/etc) $1,269
6. Gross Capitalization Cost $81,209
7. Rebates/Incentives ($2,900)
8. Adjusted Capitalization Cost $78,309
9. Total Depreciation $26,519.91

10. Monthly base payment $736.66
11. Monthly rent charge $215.96
12. Monthly payment $952.63
13. Monthly tax $90.50
13. total lease payment. $1,043.13
14. Total payments over 3 years $37,552.54

Are you willing to take that risk?

[doug_999]

Originally Posted by dawei213

Are you willing to take that risk?

There is no risk - if the residual is wrong, BMW will deny the lease and adjust the payment.

[dawei213]

Originally Posted by doug_999

There is no risk - if the residual is wrong, BMW will deny the lease and adjust the payment.

ah didn't know that. good to know. So since the dealer quoted for .61% @ 0.00206, the downside is BMWFS will correct the residual but not the MF. that'll end up horribly for the customer then. Then it would be best to get that MF to base 0.00166 so yeah, I agree, there's no risk.

[jjrandorin]

Originally Posted by doug_999

There is no risk - if the residual is wrong, BMW will deny the lease and adjust the payment.

Yeah since the RV is not changable by the dealer, BMW FS wont contract at the residual quoted and it would be a "so sorry" in the finance office.

Just recently, they decoupled the M3 RVs from the regular 3 series. I am looking at an M3 myself, and this change in RV on the M3 sort of threw me off too. One can calculate RVs on the regular cars using Bmwusa.com, but there are usually not lease offers with dollar numbers posted for M cars so... I got tripped up there a bit.

In any case, its currently 57% for 36/10 or 56 for 36/12 as everyone stated in this thread, so that poster wont be able to get 61% for 36/10. They could get 63% for 24/10 if they wanted (pretty sure that 24month is 6 points higher), but then thats a 24 month lease not 36 and the payment will be pretty painful.

[doug_999]

All I know is I want you two (jjrandorin and dawei213) reviewing my numbers from now on - very impressive work!

[dkmcali2002]

Guys thanks for all the comment and analysis.

Yes the 4k in rebates went to cover all my drive offs (first months payment, registration, etc). I paid nothing out of pocket, but in retrospect i should have just paid for this stuff so that I could lower the financed amount by 4k.

I kinda was too cavalier about the lease programs and did not confirm them when I signed. I locked in a few months ago and i think the residual was 61% then but by the time the car arrived (I ordered it) I have a sneaking suspicion they switched the program to benefit them. As to the $500 discrepency someone caught, that may have been the additional Costco discount I got but I just didn't mention it before.

In southern california especially in los angeles (whopping 9.5% sales tax) all the car dealerships are real bastards and they will try hard not to discount the m3 at all from MSRP. This is the second M car I have had and have found much better deals and reasonable dealers a short drive outside of the city.