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2014 BMW 4-Series Lease Questions

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  • kyfdxkyfdx Posts: 30,545

    1) The dealer can buy the car from BMWFS, at current wholesale market value, but they don't have to. If they don't, the car goes to an auction, usually just for BMW dealers.

    2) You can definitely buy your car at the residual at lease end, if you choose to. If you think your car is worth considerably less than the residual, you can ask your dealer for a quote to buy it, and this may save you some money, assuming it is worth less. BMW has really jacked up residuals in the past, and this led to a lot of people turning the car in, and pre-arranging a purchase with their dealership, as the car was not worth the residual. BMWFS has put a few policies in place to make that harder to do, so it's not as prevalent as before.

    Most people don't buy their car out of the lease. When the lease comes due, and 60 month purchase payments are $600/mo. for a used car, they usually turn around and lease another new one..

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  • konacougkonacoug Kailua-KonaPosts: 194

    Most people turn in their cars at the lease end....lots of times, BMW FS offers to pull ahead the last three payments, if you lease a new car. You can roll over your MSD's too and the disposition fee is waived. Also, depending on the dealer some minor issues with the car might be over looked.

    Finally, the high residuals rarely equal the car value at the end of the lease. Also, you may learn you want different options, different model and better yet, European Delivery next time :))

    Plus, hopefully, you have learned how to get the best deal possible for yourself.

  • fdg1fdg1 Posts: 2

    @kyfdx Hi -Would appreciate your thoughts on this lease deal. I'm in NYC. BMW 435i - 36Mos/10K per MSRP 56,550 Invoice 52,480 Sell Price 53,050 MF .00130 Residual 62% Upfront taxes 1,962.50 due at signing including tax (tax, dmv acquisition, 1st mo. payment) 3,538.58 Mo. Payment 614.24

    Also, based on these numbers I cant actually get back to the 614 per Mo. or the taxes. I actually get to $599 per month before tax.

  • kyfdxkyfdx Posts: 30,545

    @fdg1 said: kyfdx Hi -Would appreciate your thoughts on this lease deal. I'm in NYC. BMW 435i - 36Mos/10K per MSRP 56,550 Invoice 52,480 Sell Price 53,050 MF .00130 Residual 62% Upfront taxes 1,962.50 due at signing including tax (tax, dmv acquisition, 1st mo. payment) 3,538.58 Mo. Payment 614.24

    Also, based on these numbers I cant actually get back to the 614 per Mo. or the taxes. I actually get to $599 per month before tax.

    I get $614.. Maybe you used invoice instead of Sell price in your calculations?

    The deal looks good. The lease program is decent, but not great, but they are giving you the base rate.

    If I was structuring the lease, I'd roll the taxes and acq.fee into the payment ($2687.50), which would take the payment to $692.

    By rolling the taxes and acq.fee into the lease, if the lease ends shortly, due to theft or accident, GAP insurance pays off any balance uncovered by your insurance. GAP won't reimburse you for taxes and fees paid upfront (and, I'm guessing the state of NY won't, either).

    That's a small detail, and unlikely to happen, but if it did, you'd have an extra couple of grand in your pocket.

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  • fdg1, I would not go for that deal if I were you. I live just north of NYC (Westchester) and this is the deal I managed to close: MSRP: $62,250, Selling to me: $56,056.12, Residual 61%, MF: .0013, Payment: $624.56. Doc fee of $75, taxes and other DMV fees as usual, I can check the breakdown if you want. If you are located in NYC I recommend that you reach out to BMW dealerships further away. FYI, I passed on a Black M Sport 435i xdrive (higher MSRP than on your vehicle) from Wide World BMW that they were quoting me at $620/month without any cash down as a cap cost reduction. I passed for an Estoril Blue one out in NJ (JMK BMW). The guy I used at Wide World is named Alan. Try going for that one if the color works for you.

  • Does anybody know the money factor for Feb on a 435i Cab? Is it the same as the 435 coupe of 0.00130? Or is it 0.00125?

  • kyfdxkyfdx Posts: 30,545

    .00130 on almost every BMW model, this month.

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  • Has BMW announced if they are continuing the same rates for March, or is a new program expected to be rolled out. I'm picking up my BMW in april via euro delivery.

  • kyfdxkyfdx Posts: 30,545

    No announcements... current program runs through this Friday.

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  • Are there any ideas on 24mos/10K RV on 435?

  • kyfdxkyfdx Posts: 30,545

    @panfam007 said: Are there any ideas on 24mos/10K RV on 435?

    .00130 MF and 68% residual

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  • trusaleen1trusaleen1 Posts: 79
    Hello, any updates on the March rates looking for 435 15k 36 months
  • kyfdxkyfdx Posts: 30,545

    It will be later in the week before we get March numbers

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  • kyfdxkyfdx Posts: 30,545

    @trusaleen1 said: Hello, any updates on the March rates looking for 435 15k 36 months

    .00130 MF and 60% residual

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  • trusaleen1trusaleen1 Posts: 79

    Thanks you for the update

  • fdg1fdg1 Posts: 2

    @berzerk91 said: fdg1, I would not go for that deal if I were you. I live just north of NYC (Westchester) and this is the deal I managed to close: MSRP: $62,250, Selling to me: $56,056.12, Residual 61%, MF: .0013, Payment: $624.56. Doc fee of $75, taxes and other DMV fees as usual, I can check the breakdown if you want. If you are located in NYC I recommend that you reach out to BMW dealerships further away. FYI, I passed on a Black M Sport 435i xdrive (higher MSRP than on your vehicle) from Wide World BMW that they were quoting me at $620/month without any cash down as a cap cost reduction. I passed for an Estoril Blue one out in NJ (JMK BMW). The guy I used at Wide World is named Alan. Try going for that one if the color works for you.

    I actually negotiated my deal down to 599 (65,550 MSRP/52,550 selling) but would def consider reaching out to your dealership if you can provide their contact. Also, were you buying a car off the lot (or another dealers inventory) ? Mine has to be ordered.

    Thanks

  • mard71mard71 Posts: 2

    Fdg1, Can you tell us the details of your lease? 36 month, 10K miles? taxes and DMV paid up front?

  • mard71mard71 Posts: 2

    $65,550 MSRP and $52,550 selling price is not possible. Please check your figures.

  • berzerk91berzerk91 Posts: 6
    edited March 6

    Wow fdg1, are you sure the selling price is that low on an order -without a cap cost reduction or MSDs? That's insane! There are two people I can recommend to you: I ended up purchasing my car from Art Youmann at JMK BMW out in NJ: ayouman@jmkbmwsaab.com and from the other dealership - Alan Himmelfarb at Wide World BMW - I didn't buy from him but he did give me the deal I mentioned previously.. $620, Black vehicle. You can mention my name with Art: Steve. I bought my car off the lot, I've had it for less than a week and I'm in love, good luck! Let me know if you get in touch with my dealer :)

  • Hello All. Couple questions: 1-Any current incentives for 435i? (current BMW customer)

    2-Best I'm getting so far is $650 over invoice on 435i (MSRP $57,350). Standard MF, Res, No Down. Is that good or can I do better? FYI I'm in SoCal.

    3-What would you guys predict the best deal achievable on the M4? Would invoice on this car also be approximately $4K below MSRP?

    Thanks in advance!

  • Please disregard my questions above, instead is this a good deal:

    435i Coupe MSRP: $57,350 Sell Price: $53,340 ($650 above invoice) 12K/36Mos 62% Res .00130 MF Payment w/8% Tax: $678.72 No Down (just standard Drive Offs)

    Also, if I lock in today and the MFs or Residuals change before delivery, can I adjust my contract?

    Thanks!

  • berzerk91berzerk91 Posts: 6

    Hey andresmroldan, I don't know what the Cali market is like, but that seems really high. As I mentioned before, my car has a $62k sticker and my discount off MSRP, and payment were both lower than that quote. It seems fdg1 is also getting a deal that seems better than yours. I'd try more dealers or push harder. Regarding the M4 I think it's really early to tell, but for a long time it will be priced uber high due to low production and high demand - like all new cars.

  • kyfdxkyfdx Posts: 30,545

    @andresmroldan said: Please disregard my questions above, instead is this a good deal:

    435i Coupe MSRP: $57,350 Sell Price: $53,340 ($650 above invoice) 12K/36Mos 62% Res .00130 MF Payment w/8% Tax: $678.72 No Down (just standard Drive Offs)

    Also, if I lock in today and the MFs or Residuals change before delivery, can I adjust my contract?

    Thanks!

    At this point, that looks like a decent deal. Supply is low, and demand seems to be high for the 4-series. The lease program is pretty good, considering the lack of incentives. There aren't too many models from any manufacturer that have 60%+ residuals.

    Yes, you can lock in March's rates, and then take advantage of April or May, if that is when delivery occurs. But, you have to take the whole program, you can't pick and choose parts of each.

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  • callalindcallalind Posts: 6

    I have tried to search through the posts for an answer before posting, but can't seem to find an explanation. What are the MSDs everyone is mentioning? Thanks.

  • konacougkonacoug Kailua-KonaPosts: 194

    MSD's are multiple security deposits. For each MSD, it lowers the money factor by .0007, BMW FS allows a max of 7 for a total reduction of .00049. The MSD is derived from computing the selling price of your car, using the lower money factor .00081 and rounding the payment up in $50 increments. For example, say your payment without MSD's was 595 per month, after applying the max MSD, your payment would drop to 548, then each MSD would be $550. Also, don't be surprised when either the dealer or finance guy tries to discourage you from using MSD's. It lowers the total profit for them. They try to push you just to put more money down to obtain your optimum payment. The best part about the MSD program, they are totally refundable, you can roll them over into your next lease and if something happens to the car, wrecked, stolen, etc. you still get your MSD's back.

  • callalindcallalind Posts: 6

    Makes sense - and the starting value of the SD is basically equal to your monthly payment, it seems? Just as a rule of thumb? I am going to look this week at the 4 series, hoping for the 428 xDrive, 36 months, 12,000 miles. Do you have the MF and RV for march for that lease?

  • kyfdxkyfdx Posts: 30,545

    @callalind said: Makes sense - and the starting value of the SD is basically equal to your monthly payment, it seems? Just as a rule of thumb? I am going to look this week at the 4 series, hoping for the 428 xDrive, 36 months, 12,000 miles. Do you have the MF and RV for march for that lease?

    Yes... each SD is your monthly payment, rounded up to the next $50 increment.

    .00130 MF and 62% residual

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  • bmwgrrrlbmwgrrrl Posts: 13

    What do they do with your MSD while they're holding it? Is it earning interest for you?

  • kyfdxkyfdx Posts: 30,545

    @bmwgrrrl said: What do they do with your MSD while they're holding it? Is it earning interest for you?

    It's earning you a lower payment... Assume a $50K vehicle, and a $700/mo. lease payment. You make 7 MSDs ($4900) and they lower your money factor by .00049 (.00007 for each SD).
    That lowers your payment by around $39/mo. (+tax). That is a $468 annual return on a $4900 investment. 9.5% after-tax return.

    So... they can do whatever they want with your money, as long as they give it back at lease end.. they are paying you every month, in the form of a lower payment. The lower your payment is relative to the MSRP, the better your return...

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  • callalindcallalind Posts: 6

    Last question - is the MSD based off the base monthly payment (before taxes)?

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