BMW Leasing 101 / FAQ (BMW emphasis)

[OneRib]

Originally Posted by Dan Halen

Hi,
could I get some feedback on this?

I'm in NorCal- which seems pretty notorious for being dismissive towards offering much in the way of deals on these Ms. That said, I think I'm also not being told the truth from a CA that came recommended.

I want to order a '16 M4, and he offered me 2k off MSRP. He also said he does not have the MF for the 2016's yet, which I do understand to be true?

But, I told him as long as he does not add any points on top of the MF that BMW offers their top tier credit score clients, we could make a deal.
He then tells me the MF that they are currently offering those clients is .00170
From what I've read that looks to be about a percentage point higher than what they truly offer?! Is the rate not .00129 currently?
Its not that I need to get $500 over invoice or I'm walking out and gonna act all pissy like they are out to screw me- but it's another thing to just lie to me without me even bargaining one time!
HE offered the $2k off due to the incentive( which means he isn't really offering it as a discount since its sitting there, yes?) and because I was referred by a large tuning shop that I have a relationship with that he get lots of recommendations from.

I don't mind flying someplace for a day drive back- I don't have to buy local. I actually bought my e92 M3 from Steve Thomas off these boards. They picked me up at the airport and I drove it home the 6 hours. Hell, I also don't mind buying out of state and getting the car shipped if I can secure a deal that will actually save me a few $K.


So, would you think its safe to say that when the 2016 MF comes out for the F82 it will be somewhere around .0030?



Thanks for any input-

That's way to high. Even foe a guess it sounds like the CA is jerking you around. You can try and call him on it and maybe he misspoke.

The base MF should be around 0.0013 for US delivery.

[Dan Halen]

Yeah- that's what I thought. Thank you.
I'm almost tempted to get an out of state inventory car that is listed for $1000 over invoice, has basically every thing I would order, but its YMB instead of AY- which is my first choice, YMB my second....
First world problems but yeah- these dealers aren't that cool.

[OneRib]

Originally Posted by Dan Halen

Yeah- that's what I thought. Thank you.
I'm almost tempted to get an out of state inventory car that is listed for $1000 over invoice, has basically every thing I would order, but its YMB instead of AY- which is my first choice, YMB my second....
First world problems but yeah- these dealers aren't that cool.

Hmm, that's an interesting dilemma. It really depends on how close 1 and 2 are. From my own order, AY was a clear cut favorite over every other standard color. I would not have settled for my second choice.

[Dan Halen]

Yes- it is. The challenge with the car I want is M4 with 6mt, carbon roof, adaptive susp. There are just so few available with a manual as stock.

And I'm with you- the AY is for sure my first pick- so I already know the answer. But the hassle of my local dealers ( and I have a lot since I'm in the Bay Area) makes me want to forgo the BS and get a car.
Then again, I'm sure if I walked into a dealership and didn't ask for any concessions and just let them get me for MSRP, add points on my lease rate and throw in some random fees they'd love me! Ha .

Thank you for creating this thread and for the feedback. Super helpful.

[OneRib]

Originally Posted by Dan Halen

Yes- it is. The challenge with the car I want is M4 with 6mt, carbon roof, adaptive susp. There are just so few available with a manual as stock.

And I'm with you- the AY is for sure my first pick- so I already know the answer. But the hassle of my local dealers ( and I have a lot since I'm in the Bay Area) makes me want to forgo the BS and get a car.
Then again, I'm sure if I walked into a dealership and didn't ask for any concessions and just let them get me for MSRP, add points on my lease rate and throw in some random fees they'd love me! Ha .

Thank you for creating this thread and for the feedback. Super helpful.

You're welcome.

You should start a new thread about how Google, Apple, Oracle, and HP are screwing the little guy. SF BMW dealers are rolling in tech cash.

[Dan Halen]

Probably just piss off a bunch of members here

But it's certainly true- tech cash is killing SF. I've been here for 20 years and I'm very fortunate that I already bought real estate in the city over a decade ago, so if I do sell I'll just be hypocrite with a bunch of tech cash to roll around in... Haha.

Also, a dealer hit me back after I said I would not accept anything over the base MF that I qualify for from BMW, they offered .0020 and said it was .5% mark-up.

I guess I'm done talking with them. Bums me out.

[OneRib]

Originally Posted by Dan Halen

Probably just piss off a bunch of members here

But it's certainly true- tech cash is killing SF. I've been here for 20 years and I'm very fortunate that I already bought real estate in the city over a decade ago, so if I do sell I'll just be hypocrite with a bunch of tech cash to roll around in... Haha.

Also, a dealer hit me back after I said I would not accept anything over the base MF that I qualify for from BMW, they offered .0020 and said it was .5% mark-up.

I guess I'm done talking with them. Bums me out.

Yuck, the infamous "M" markup. I agree move on. That's the stuff where you put a little mental reminder down for when you have the leverage.

[Inprogress]

Originally Posted by Dan Halen

Probably just piss off a bunch of members here

But it's certainly true- tech cash is killing SF. I've been here for 20 years and I'm very fortunate that I already bought real estate in the city over a decade ago, so if I do sell I'll just be hypocrite with a bunch of tech cash to roll around in... Haha.

Also, a dealer hit me back after I said I would not accept anything over the base MF that I qualify for from BMW, they offered .0020 and said it was .5% mark-up.

I guess I'm done talking with them. Bums me out.

You mentioned buying you previous M3 from Steve Thomas, have you hit them up? I'm in Texas and I bought my M3 from them, they took care of me.

[Dan Halen]

Originally Posted by Inprogress

You mentioned buying you previous M3 from Steve Thomas, have you hit them up? I'm in Texas and I bought my M3 from them, they took care of me.

I actually have not, based on the feedback from other members here regarding deals that they ended up soon better than. But I will- maybe they would appreciate a return client. Thanks!

[Inprogress]

Originally Posted by Dan Halen

I actually have not, based on the feedback from other members here regarding deals that they ended up soon better than. But I will- maybe they would appreciate a return client. Thanks!

No worries, best of luck! David and Jimmy definitely took care of me, I can't say enough about them and their service!

[fanatic1]

Originally Posted by Inprogress

You mentioned buying you previous M3 from Steve Thomas, have you hit them up? I'm in Texas and I bought my M3 from them, they took care of me.

in the same boat, let me know how it goes. may try Steve Thomas, bay area is $$$

[rivesc]

Anyone had any experience with trading in a lease for a new one? For example, wanting to get in to a new lease on a newer/different model with higher payments, but still in a current lease..

I had a buddy that traded in a lease when he started a new one on an Audi. Pretty sure the dealership worked with him without any problems.

Sorry, not totally sure how dealers handle this sort of thing.

[sonystyle02]

Originally Posted by rivesc

Anyone had any experience with trading in a lease for a new one? For example, wanting to get in to a new lease on a newer/different model with higher payments, but still in a current lease..

I had a buddy that traded in a lease when he started a new one on an Audi. Pretty sure the dealership worked with him without any problems.

Sorry, not totally sure how dealers handle this sort of thing.

From my research, it looks like the ways to get out of a lease is:

A) Sell it to a dealer/private party at the current buy out value (or buy it out yourself)

B) Have someone else assume/take over your lease

C) Wait for the BMW lease pull-ahead option (get out of a lease 6 months early)

To end your lease and walk into a new one, the hope is your buy out is equal or less than what the dealer trade-in on our car is... for most, this isn't the case. B is typically the best option to get out of a new lease.

[MRCUR]

Originally Posted by sonystyle02

From my research, it looks like the ways to get out of a lease is:

A) Sell it to a dealer/private party at the current buy out value (or buy it out yourself)

B) Have someone else assume/take over your lease

C) Wait for the BMW lease pull-ahead option (get out of a lease 6 months early)

To end your lease and walk into a new one, the hope is your buy out is equal or less than what the dealer trade-in on our car is... for most, this isn't the case. B is typically the best option to get out of a new lease.

You can also pay all the remaining payments, which is generally not reasonable unless you somehow have insanely low lease payments (usually because of a large upfront down payment).

Option A sometimes works out surprisingly well in your favor if the residual on your car is lower than the market value. Always worth asking.

[OneRib]

Originally Posted by MRCUR

You can also pay all the remaining payments, which is generally not reasonable unless you somehow have insanely low lease payments (usually because of a large upfront down payment).

Option A sometimes works out surprisingly well in your favor if the residual on your car is lower than the market value. Always worth asking.

Agree about option A. Depending on how much the dealer wants a sale or the value of the car, you may find yourself with a good deal.

I would always check this first before going through the lease transfer process.

[FLOSS M]

any truth that the acquisition fee is going up to $925 on August 1st?

[V3rbatim]

Originally Posted by FLOSS M

any truth that the acquisition fee is going up to $925 on August 1st?

That seems to be the word thats been going around...

[HoustonRider]

I'm looking at picking up a 2015 750iL

$103 MSRP
$$12k discount
$90,250 net cost
$5800 tax
$7000 down
36 mo / $1153/mo
Apr/money 4.0%
Residual 56%

I don't know where the $7k is going, is there more to this?

I'm not usually a lease guy, not sure if this is legit or not. Any hep would be appreciated

[MRCUR]

Originally Posted by HoustonRider

I'm looking at picking up a 2015 750iL

$103 MSRP
$$12k discount
$90,250 net cost
$5800 tax
$7000 down
36 mo / $1153/mo
Apr/money 4.0%
Residual 56%

I don't know where the $7k is going, is there more to this?

I'm not usually a lease guy, not sure if this is legit or not. Any hep would be appreciated

Whats the money factor? Or did they just give you an APR?

You shouldn't put money down on a lease (see page 1). They're probably using it as a cap cost reduction.

[s4play]

I downloaded the Leasematic app on my phone but there are some boxes, checkboxes I'm not sure how to use. Trying to learn all the terminology right now first.

I understand the MF x 2400 is the APR essentially so if we use my example below the dealer is giving me 0.0015 which equals 3.6%

What is line 14? TTL Cap Reduction $2921.85

I told him in this case I was going to put down $5k which he put in the Working Cash spot.

Just in case anyone is wondering this is for a 2015 Denali we are buying for the wifey:

[OneRib]

Originally Posted by s4play

I downloaded the Leasematic app on my phone but there are some boxes, checkboxes I'm not sure how to use. Trying to learn all the terminology right now first.

I understand the MF x 2400 is the APR essentially so if we use my example below the dealer is giving me 0.0015 which equals 3.6%

What is line 14? TTL Cap Reduction $2921.85

I told him in this case I was going to put down $5k which he put in the Working Cash spot.

Just in case anyone is wondering this is for a 2015 Denali we are buying for the wifey:

2921.85 is the amount left over from the original $5K you are using for cap cost reduction. It's not 5000 because he is using some of that for fees and first month payment.

I would just pay the initial fees and skip any cap cost reduction (down payment). Are Denali's holding their prices that well? Asking out of curiosity. I don't know because haven't shopped for one before. As long as the sale price matches a site like Edmunds or truecar then that part is fine.

[s4play]

Originally Posted by OneRib

2921.85 is the amount left over from the original $5K you are using for cap cost reduction. It's not 5000 because he is using some of that for fees and first month payment.

I would just pay the initial fees and skip any cap cost reduction (down payment). Are Denali's holding their prices that well? Asking out of curiosity. I don't know because haven't shopped for one before. As long as the sale price matches a site like Edmunds or truecar then that part is fine.

Oddly the photo shows up correct in my PB but on the forum it shows upside down, sorry not sure why!

thank you, this is actually my first ever purchase of an American car (GMC) however from my understanding the Denali's hold their value super well along with all the other Tahoe, Yukon's since it seems these work horses last forever. We need one for a tow vehicle for the enclosed trailer so hoping its as good as what everyone says.

Is the GMC Money Factor of 0.0015 a bit too high or am I comparing apples to oranges?

There are no MSD applied here but I am still debating if lease is better than financing and the guy told me it's a much better deal leasing since I save on taxes and I could always buy the car at end of lease.

My thinking was the same as I was doing for my F80 m3 purchase as I'm looking at total cash out of my pocket over the course of the deal.

Purchase:
Price is $73,923.35
Put down $5000
Finance the rest at 2.49 through my CU
Monthly Payment $1222.90
Interest paid $4450.87
Sales tax $6837.91
Total cash due up front $11,837.91

Total paid 5 years $85,212.13 (out of pocket)


Lease:
Price is $73,923.35
Put down $5000
MF 0.0015 = 3.6%
Monthly payment $1042.79
Total cash due up front $5000

Total paid in 3 year lease = 1042.79 x 35 = $36,497.65
Residual to buy the car is $43,195.60
Initial cash up front $5000

Total I would pay to own the car: $84,693.25


Are those calculations correct or do I still need to pay tax on the $43,195.60 at end of lease if I wanted to buy outright? My goal is ownership in the end for both the Denali and M3.