BMW Leasing 101 / FAQ (BMW emphasis)

[cprx7]

Originally Posted by OneRib

cprx7

Good deal. Enjoy the car. post pics once you get it.

Thank you. Believe it or not this will not be my car but the wifey lol. I'm just doing the leg work for her and ultimately will be her decision. I had a e92 m3 that I miss and enjoyed driving.

[OneRib]

Originally Posted by cprx7

Thank you. Believe it or not this will not be my car but the wifey lol. I'm just doing the leg work for her and ultimately will be her decision. I had a e92 m3 that I miss and enjoyed driving.

That's great. I'm sure she'll enjoy it.

[Fury Road]

Besides lease protection ,what else do the dealers typically try to sell when you take delivery?

[visi107]

Originally Posted by Fury Road

Besides lease protection ,what else do the dealers typically try to sell when you take delivery?

Wheel and tire insurance is another.

[firedown31]

Originally Posted by Fury Road

Besides lease protection ,what else do the dealers typically try to sell when you take delivery?

Originally Posted by visi107

Wheel and tire insurance is another.

Glass protection, wear and tear protection. Mine also tried to sell xpel wraps.

[OneRib]

Originally Posted by Fury Road

Besides lease protection ,what else do the dealers typically try to sell when you take delivery?

GAP insurance is automatically included in every BMWFS lease. Everything else they try and sell you on is the same as buying a car, except for the extended service warranty.

[Fury Road]

I've heard positive things about the lease protection which bumps up your wear and tear- people have said they have brought the car back with bald tires etc. Wheel and tire is accidental only, glass not sure if its worth it or not. Just trying to decide what else besides lease protection is worth paying for.

[OneRib]

Originally Posted by Fury Road

I've heard positive things about the lease protection which bumps up your wear and tear- people have said they have brought the car back with bald tires etc. Wheel and tire is accidental only, glass not sure if its worth it or not. Just trying to decide what else besides lease protection is worth paying for.

Most of the extras aren't worth it, but that's running the numbers on a a large statistical basis.

Individual's needs vary. Just use your past driving history and environment as a good rule of thumb. Lots of valet parking, then small dent repair or wear insurance may be a good idea. Lots of construction or pot holes, then wheel and tire insurance are a good idea. Very forgetful, then a key fob replacement policy.

Just remember that all these programs are negotiable in price.

[1M4]

Originally Posted by boi222

Question on the last paragraph, why would a BMW dealer buy it for over the buy out amount? Don't they get it for less from BMW? Isn't that how they can negotiate the buy out to lower than the residual amount?

The dealer might be able to negotiate with bmwfs but you will be forced to pay the residual value on your contract plus sales tax. This situation is if you have made all the payments and you are trying to sell it at the end .If you call for a payoff because you have payments left you will be getting a customer payoff which includes sales tax. The dealer payoff is without tax.Be aware of the difference because if by chance you have a vehicle that is worth the customer payoff, they can say it's worth the dealer payoff.The effect of this is you could get shorted the profit if there is any or carry negative equity into your new lease if you don't come out of pocket for it.Example ;you call for the payoff and they say it's 60,000 .You assume that's what your balance is.The number is including tax so your base payoff might be 55,000 depending on your state. What if you wanted out of your car but wanted another brand ?They could tell you your car is worth 55,000 and you owe 5,000 to walk away or you want another bmw and they ask are we rolling the 5,000 into another car or are you paying it upfront .I say whatever they can negotiate with bmwfs after they have your car is good for them but you must know the real actual cash value of your trade .Also be aware of what a dealer payoff number is and a customer payoff number is .You will never be quoted a customer payoff that doesn't include sales tax.

[exclusivedetails]

I subleased a F80 M3. Does anyone know if I can sublease my car to someone else again?

[OneRib]

Originally Posted by exclusivedetails

I subleased a F80 M3. Does anyone know if I can sublease my car to someone else again?

By sublease, do you mean you did a lease transfer? If so, I think you can as long as it's more than 6 months from lease end.

[djiboutiman]

Great info...thank you sir!

[djiboutiman]

Can you please email info to arej_619@att.net? Mahalo

[streetmasters]

Been reading these threads for days. With the M2 res being what it is (dont want to buy and trying to arrange timing with a trip I am planning) I am now looking into an M3 and need some clarification. Any help is appreciated and I have learned so much already.

Is ED difficult to negotiate from ED invoice? Right now I am working with a dealer that is not too thrilled with a lower price beyond the ED 5% off MSRP.....sharpening my pencil before I begin serious negotiations.

Trying to figure out what ED invoice looks like right now (I realize 2017 info is not released yet but trying to get a ballpark). Are my formulas correct?

M3 Base MSRP: 63,500
Invoice = Base x .93
ED Invoice = (Base x .93) x .92
ED Options = (Total Options x .91); i.e. $5k options would be $4550?

Not sure I can walk away with ED Invoice + $1500 deal but curious what deals people are currently seeing on ED.

[OneRib]

Originally Posted by streetmasters

Been reading these threads for days. With the M2 res being what it is (dont want to buy and trying to arrange timing with a trip I am planning) I am now looking into an M3 and need some clarification. Any help is appreciated and I have learned so much already.

Is ED difficult to negotiate from ED invoice? Right now I am working with a dealer that is not too thrilled with a lower price beyond the ED 5% off MSRP.....sharpening my pencil before I begin serious negotiations.

Trying to figure out what ED invoice looks like right now (I realize 2017 info is not released yet but trying to get a ballpark). Are my formulas correct?

M3 Base MSRP: 63,500
Invoice = Base x .93
ED Invoice = (Base x .93) x .92
ED Options = (Total Options x .91); i.e. $5k options would be $4550?

Not sure I can walk away with ED Invoice + $1500 deal but curious what deals people are currently seeing on ED.

I agree the M2 is set up to be purchased, not leased.
It isn't difficult to negotiate from ED invoice. It's only hard because the exact number isn't known. The formula you have will get you close enough. Also I still think M3 ED's are coming out of dealer inventory, so that keeps the dealer from really slashing prices.

I would start negotiations form a x amount over ED invoice instead of negotiating down from ED MSRP.

If you are in the NYC area, there are lots of dealers you can try. It shouldn't be hard to get a good deal. If you're upstate that changes things a little unless you're willing to do PCD in edition to ED; then you can get the car from any dealer.

Lastly use this thread to get the best pricing info and comparisons http://f80.bimmerpost.com/forums/sho....php?t=1135003

[streetmasters]

Thank you OneRib - Appreciate the insight and the link.

[OneRib]

No problem streetmasters . Good luck

[Lessthanzero]

Hi guys,
This is an awesome thread as I have never leased before in my life!

I'm looking to acquire a new F83, and got the following from the dealer:

• MSRP: $88K
• Sale price: $83K
• 3 year lease
• 10K miles per year
• $5k down - $1,181 monthly payment
• $5K out of pocket - $1,254 monthly payment

This is for a DC registered car. I probably don't even have enough information to tell if it is a good deal, but what additional information should I ask for?

I appreciate all help you can give!

[bb1857]

Originally Posted by Lessthanzero

Hi guys,
This is an awesome thread as I have never leased before in my life!

I'm looking to acquire a new F83, and got the following from the dealer:

• MSRP: $88K
• Sale price: $83K
• 3 year lease
• 10K miles per year
• $5k down - $1,181 monthly payment
• $5K out of pocket - $1,254 monthly payment

This is for a DC registered car. I probably don't even have enough information to tell if it is a good deal, but what additional information should I ask for?

I appreciate all help you can give!

We need the model year of the car (2016 or 2017), tax rate for DC, money factor the dealer is using for the lease, exact MSRP and exact sales price, any fees they are charging(tax, tags, title, dealer processing, acq, etc).

Also does DC require you to pay the tax upfront or can it be added to the monthly payments? You should never give any money down outside of the first payment and MSD's(which you get back to buy down the money factor). Any money down upfront is a dangerous idea because if something happens to the car you can't recover any of it.

[Lessthanzero]

Originally Posted by bb1857

We need the model year of the car (2016 or 2017), tax rate for DC, money factor the dealer is using for the lease, exact MSRP and exact sales price, any fees they are charging(tax, tags, title, dealer processing, acq, etc).

Also does DC require you to pay the tax upfront or can it be added to the monthly payments? You should never give any money down outside of the first payment and MSD's(which you get back to buy down the money factor). Any money down upfront is a dangerous idea because if something happens to the car you can't recover any of it.

* 2017 model yea (F83)
* MSRP for build is $86,400 (was a little of in original post)
* Sale price is $82,000
* DC sales tax is 8.17% which shouldn't be applicable to leases, of course. However, there is a monthly 10% use tax on the lease portion as I understand it.
* Dealer charges $499 processing fee
* Tags for 2 years $185
I sent him a Q on the money factor, and will ask for a no money down option. So people don't normally pay money upfront? Not like on a mortgage where you have to plunk down 20% ?

[firedown31]

Originally Posted by Lessthanzero

So people don't normally pay money upfront? Not like on a mortgage where you have to plunk down 20% ?

Generally it is not a good idea. The moment you drive it off the lot it's now "worth" less than the total balance you still owe BMW (remaining payments + residual). If you total it on the way home insurance will pay BMW what the car is worth and make up anything else with gap. But if you dropped $5k as a down payment and the car is still worth less than what you owe, you don't get that $5k back from BMW/insurance. So now you're out $5k and a new car.

An idea that comes up a lot is to put that down payment in a separate account and take out $xx per month and pay that to the cars payment.

[bb1857]

Originally Posted by firedown31

Generally it is not a good idea. The moment you drive it off the lot it's now "worth" less than the total balance you still owe BMW (remaining payments + residual). If you total it on the way home insurance will pay BMW what the car is worth and make up anything else with gap. But if you dropped $5k as a down payment and the car is still worth less than what you owe, you don't get that $5k back from BMW/insurance. So now you're out $5k and a new car.

An idea that comes up a lot is to put that down payment in a separate account and take out $xx per month and pay that to the cars payment.

Exactly what he said...think of it this way...you want to rent an apartment and its $2000 a month for 3 year lease....you want cheaper rent payment...would you ever give them $5000 upfront to lower that monthly payment?? Not likely and if you do I would like you to be my renter!

Same exact concept with a car because you are truly renting it from them for the term of the lease.