BMW Leasing 101 / FAQ (BMW emphasis)

[TrevorM3]

how does lease insurance differ from owning a car?

[OneRib]

Originally Posted by TrevorM3

how does lease insurance differ from owning a car?

BMW automatically provides gap insurance on leased cars in case it's totaled early on. Auto insurance requirements are usually collision and comprehensive, but that's the same as buying unless you pay without financing.

That's about it.

[Relak]

So I purchased a new lease in Oct '15 and am completely happy with the purchase. This was my first lease and didnt wholly understand the residual value calculations and such. It's a '16 M4 vert with everything. I believe the sticker price was around 87,500. I believe we ended up paying $79K for it with only first months payment up front.

I guess my question is, how much do you guys normally put down on your leases up front to get your payments in the 600-800 range? My current payment is $1250, which I expected to be the norm with not having put a downpayment. Now I'm not so sure? I mean, I'd gladly pay a little more even for the car, that's how much I enjoy it. Just want to get a better idea of what the process was like for others.

[TillyM]

hm... not sure how good it is but ,
my MY16 was about 79k , and with no down, Im paying 1230/moth financed..
initial approach was to lease, but they were asking 1050 ish no down.

decided to finance to build some cash value down the road.

[mdemon]

Originally Posted by MKitSS

So I purchased a new lease in Oct '15 and am completely happy with the purchase. This was my first lease and didnt wholly understand the residual value calculations and such. It's a '16 M4 vert with everything. I believe the sticker price was around 87,500. I believe we ended up paying $79K for it with only first months payment up front.

I guess my question is, how much do you guys normally put down on your leases up front to get your payments in the 600-800 range? My current payment is $1250, which I expected to be the norm with not having put a downpayment. Now I'm not so sure? I mean, I'd gladly pay a little more even for the car, that's how much I enjoy it. Just want to get a better idea of what the process was like for others.

Residual value plays a major role in understanding your payment. My residual for the m3 is 66%. I'm paying 790 with 0 down because I didn't wanted to upfront any money initially. I got a hell of a deal. Since convertible is more money it's residual is also not that great. That's why the payment is higher plus it's more optioned too.

In getting a lease always focus on higher residual and lower money factor. You can almost pay amazing price for your lease.

Instead of putting money down you can always go MSD(multiple security deposit) which is completely refundable at lease termination.
The return is 14% on your payment where else would you get a 14% ROI

[Relak]

I guess knowing that makes a little more sense. I saw the sales guy doing calculations with the residual taken into account but I didnt really understand what he was doing. Lol, yes I spent 80k on a car where I didnt fully understand the process. I guess I was just more interested in getting the car haha.

[mdemon]

Originally Posted by MKitSS

I guess knowing that makes a little more sense. I saw the sales guy doing calculations with the residual taken into account but I didnt really understand what he was doing. Lol, yes I spent 80k on a car where I didnt fully understand the process. I guess I was just more interested in getting the car haha.

Happens all the time. Specially we don't want to wait and end up taking car on lot where they make the most money

[cipri]

why do they multiply MF by 2400 to find the APR?

[OneRib]

Originally Posted by cipri

why do they multiply MF by 2400 to find the APR?

It has to do with the interest being calculated daily. Plus it has the upside of confusing customers and giving dealerships an advantage during negotiations.

[cipri]

I don't think so
the leases are for 3 years usually they use 2400
which is two years (24*100)
but why ?

[OneRib]

Originally Posted by cipri

I don't think so
the leases are for 3 years usually they use 2400
which is two years (24*100)
but why ?

The best explanation I have found says this:

Money factors are used in cases where the monthly payments may fluctuate based on the residual value of an asset, such as an auto lease.




That still doesn't explain it well enough for me, but it's all I found.

[G35POPPEDMYCHERRY]

So is this 1500$ lease credit on the F80 a new incentive. Like if im locked from December. I can add on this 1500$ incentive?

[OneRib]

Originally Posted by G35POPPEDMYCHERRY

So is this 1500$ lease credit on the F80 a new incentive. Like if im locked from December. I can add on this 1500$ incentive?

not sure when it started but as long as you haven't taken delivery you can get the credit.

[visi107]

Originally Posted by G35POPPEDMYCHERRY

So is this 1500$ lease credit on the F80 a new incentive. Like if im locked from December. I can add on this 1500$ incentive?

You have to use the march residual and MF if you want to use the 1500 lease credit; can't have your pie and take someone else's too

[G35POPPEDMYCHERRY]

Originally Posted by visi107

You have to use the march residual and MF if you want to use the 1500 lease credit; can't have your pie and take someone else's too

No thats understandable. Im talking like holiday incentives and shit?

[visi107]

Originally Posted by G35POPPEDMYCHERRY

No thats understandable. Im talking like holiday incentives and shit?

Depends what other incentive you have though.

the december holiday of 750 was not lockable so that's gone; the other one in december was the 750 option credit and if u were locked in for that then you have to use it with the december rate/mf

What incentive specifically do you want to add?

[G35POPPEDMYCHERRY]

Originally Posted by visi107

Depends what other incentive you have though.

the december holiday of 750 was not lockable so that's gone; the other one in december was the 750 option credit and if u were locked in for that then you have to use it with the december rate/mf

What incentive specifically do you want to add?

I am assuming the lease credit was an incentive?

I have a sales order sheet with a final price of 70K.

I am going to do college grad still and hopefully add on this lease credit?

[visi107]

Originally Posted by G35POPPEDMYCHERRY

I am assuming the lease credit was an incentive?

I have a sales order sheet with a final price of 70K.

I am going to do college grad still and hopefully add on this lease credit?

Yes collage credit should be fine.


However you CAN NOT add the december 750 incentive and the march 1500 lease credit. one or the other

[DS_BMW]

Originally Posted by mdemon

Residual value plays a major role in understanding your payment. My residual for the m3 is 66%. I'm paying 790 with 0 down because I didn't wanted to upfront any money initially. I got a hell of a deal. Since convertible is more money it's residual is also not that great. That's why the payment is higher plus it's more optioned too.

In getting a lease always focus on higher residual and lower money factor. You can almost pay amazing price for your lease.

Instead of putting money down you can always go MSD(multiple security deposit) which is completely refundable at lease termination.
The return is 14% on your payment where else would you get a 14% ROI

What was the the purchase price? I'm thinking about going with the m3 since residuals will be so bad on the m2

[TrevorM3]

i know this doesn't really count for in here, but i'm in the market for a 14 m5. I can get one for about 62k (wholesale price) or i can lease a brand new one. Ive never leased before.

Figure if i buy the m5 at 62, over the course of 3 years it will probably be worth around 40s when it's time to sell with mileage at around 40k.

Or i could lease, and over 2 years, lose roughly the same money but have a brand new car to boot. decisions..

[OneRib]

Originally Posted by TrevorM3

i know this doesn't really count for in here, but i'm in the market for a 14 m5. I can get one for about 62k (wholesale price) or i can lease a brand new one. Ive never leased before.

Figure if i buy the m5 at 62, over the course of 3 years it will probably be worth around 40s when it's time to sell with mileage at around 40k.

Or i could lease, and over 2 years, lose roughly the same money but have a brand new car to boot. decisions..

Lots of variables. Does the used car have the options/colors you want? Do you think you will keep the car longer than 3 years? I you are looking for the easiest way in and out of the car, I would say lease. But I'm not sure about the lease numbers for the M5 right now. I can't imagine they are very good.

[MFNATIK]

Originally Posted by TrevorM3

i know this doesn't really count for in here, but i'm in the market for a 14 m5. I can get one for about 62k (wholesale price) or i can lease a brand new one. Ive never leased before.

Figure if i buy the m5 at 62, over the course of 3 years it will probably be worth around 40s when it's time to sell with mileage at around 40k.

Or i could lease, and over 2 years, lose roughly the same money but have a brand new car to boot. decisions..

There is nothing like owning a brand new car and or picking up via ED. That being said, if you know what your end game is in 3 years then leasing makes a lot more sense.