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2014 BMW 4-Series Lease Questions

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  • kyfdxkyfdx Posts: 31,040

    @jackbauer said:

    That's correct... .00125 (3% equivalent)

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  • kyfdxkyfdx Posts: 31,040

    @flenhoff said: Hi all, in Chicago area, looking to lease a 428i convertible, $58,600 with all options included. 36 mos, 10K per year; we would take delivery in April. What would be the MF, residual, etc?

    .00125 MF and 63% residual

    kyfdx

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  • thanks; one dealer is providing these data: Retention Rate 0.00125 Reserve Rate 0.00040 Disclosed Rate 0.00165

    what's that mean?

  • also, here's their deal--good or no?

     Vehicle:    2014  BMW  4 SERIES  144* 2dr Cpe 428i      
    
    
    Vehicle Price:      $55,575.00   
    Market Savings: -   $1,000.00    
    Vehicle Selling Price:       $54,575.00  
    
    Sales Tax (estimate):   +   $4,519.06    
    Tag/Registration Fees (estimate):   +   $196.00  
    Documentation Fee:  +   $164.30  
    Electronic Filing:  +   $25.00   
    Balance Due (estimate):      $59,479.36      No Trade-In
    

    LEASE OPTIONS Cash Due 36 months 10,000 Miles $1,237 due at signing; $852 per month

  • kyfdxkyfdx Posts: 31,040

    @flenhoff said: thanks; one dealer is providing these data: Retention Rate 0.00125 Reserve Rate 0.00040 Disclosed Rate 0.00165

    what's that mean?

    The .00125 money factor is the base rate (aka buy rate). The .00040 is how much they marked up the rate for extra profit (the maximum allowed), resulting in the rate of .00165

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  • kyfdxkyfdx Posts: 31,040

    @flenhoff said: also, here's their deal--good or no?

    Vehicle: 2014 BMW 4 SERIES 144* 2dr Cpe 428i

    Vehicle Price: $55,575.00
    Market Savings: - $1,000.00
    Vehicle Selling Price: $54,575.00

    Sales Tax (estimate): + $4,519.06
    Tag/Registration Fees (estimate): + $196.00
    Documentation Fee: + $164.30
    Electronic Filing: + $25.00
    Balance Due (estimate): $59,479.36 No Trade-In LEASE OPTIONS Cash Due 36 months 10,000 Miles $1,237 due at signing; $852 per month

    I love BMWs, but I wouldn't pay $850/mo. for that vehicle..

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  • Thanks for the feedback. Yeah, that seems high to me too. Dealer dropped the MF down to .00145 (said he'd "meet me halfway"). Think (hope) I could get it down further. He's giving me a 4% discount off the MSRP of $55,575 (down to $53,352); gross cap cost is $58,832 (fees and taxes included); $797 payment, with first payment due at signing. Comments? Also, should I try to do this before the new year, or is it better to wait til spring? We've got our current car til April 1.

  • Another question: What about this MSD (multiple security deposit) concept? How does that work? And what is the return on investment--by locking up a few K for 3 years with BMW, how much am I saving, and would that money be better off invested somewhere?

  • Also, if I put down two MSDs ($1,600), that reduces the money factor by .00014 (from .00145 to .00131). If I do the math, that's an annual return of about 30%! Is my math right?

  • kyfdxkyfdx Posts: 31,040

    1) If you have until April 1st, then the 4-series deals should only get better.. once they aren't the newest thing going, pricing should come down to earth.

    2) MSDs... you can make up to 7 of them... at .00007 each..

    3) I think 30% would probably be your total return over three years... annual return around 9%... Still.. anything that reduces your payment is an after-tax return... A guaranteed 9% after-tax is huge.. Cars that lease out with lower payments have bigger percentage returns, generally.. (because the MSD investment is smaller).

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  • thanks; I'm working on a deal with a dealer for about 4.5% off MSRP ($53,150), MF of .00111 (the base .00125 minus .00014 for the two MSDs I'm gonna put down). So, monthly payment of $750.

    Yes, this MSD "investment" seems like a great deal. Can anyone else confirm the numbers/ROI?Here's what I am calculating:

    • Two MSDs of $800 (total $1,600) reduce MF from .00125 to .00111.
    • That reduces the payment from 763 to 750 per month.
    • That's $468 over a 36-month lease term.
    • Annually, that's an expense of about $533 for a savings/return of $156.
    • $156 is 29% of $533.
    • So, 29% annual return? Sounds too good to be true, but... ?
  • kyfdxkyfdx Posts: 31,040

    Well.... it is a good deal, but your math is wrong... you aren't investing $533 per year, you are investing $1600 for the entire time.. So, it's an annual return of $156 on a $1600 investment.

    That's an after-tax return of 9.75%, annually... so, still very good (no risk and guaranteed)

    kyfdx

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  • Please tell me if this is a good deal or not

    2014 X3 MSRP $48375. Lease offer : 475 per month with 1500 down for 10k miles and 36 months I am a returning BMW customer turning in a lease thats due in March 2014. Guess I am getting the loyalty cash and another credit for turning in the lease premature.

    Please let me know ASAP as I'm trying to get the paperwork done before the snow starts today. Thanks

  • konacougkonacoug Kailua-KonaPosts: 194

    MSD's are a great return on your investment. You need to shop this deal! It really is pretty crappy. And this meeting you half way is just more commission for your CA! Send out emails to dealers in your area, with your build requirements( include in it, base MF and base Acquisition fee and ask for a complete breakdown of ALL fees.

  • patyojonpatyojon Posts: 6

    I am looking for some help with a 2014 435i lease. These are the numbers I was given: 3 years, 12k miles, Selling Price $45,925. MF 1.3 , Residual 61%.

    total drive off 3k

    Monthly pmt = 597.47

    Please let me know if this is a good deal or if I should keep talking to other dealers, and also if the MSD would be worth looking into for this case!

    Thanks

  • That's an awful deal. I just helped my friend lease a 428i. MSRP of 43,375. He did 36 months / 10k per year. $1250 due at signing, $499.97/month after Alabama tax.

  • Can someone post the residual and MF for January 2014? For 2014 428i 36/mo 12k/yr.

  • konacougkonacoug Kailua-KonaPosts: 194

    @patyojon said: I am looking for some help with a 2014 435i lease. These are the numbers I was given: 3 years, 12k miles, Selling Price $45,925. MF 1.3 , Residual 61%.

    total drive off 3k

    Monthly pmt = 597.47

    Please let me know if this is a good deal or if I should keep talking to other dealers, and also if the MSD would be worth looking into for this case!

    Thanks You are leaving out some info....what is the MSRP, and the invoice. Also what are you paying with your 3K in drive offs? What fees are they charging you? You should definitely consider MSD's they will save you about $50 per month on payments, if you put down the max of 7 MSD's. Depending on where you live, you might be able to get a better deal, ie So Cal.

  • patyojonpatyojon Posts: 6

    Thanks. I got a little better offer from another dealership in SoCal as I live in Santa Monica:

    ** Payment Details** Term 36 Months Base Payment $538.81 Total Payment $587.30 Purchase Option $28,624.25 MSRP $46,925.00 Selling Price $44,900.00 Est. Miles Per Year 12,000

    Amount Due at Signing 1st Month Payment 587.30 Acquisition Fee 725.00 Fees & Insurance 509.00 Upfront Taxes 122.51 Cap Reduction (Cash) 556.19 Total Inception Fees 2,500.00

    How's that look??

  • kyfdxkyfdx Posts: 31,040

    @ifreewillie said: Can someone post the residual and MF for January 2014? For 2014 428i 36/mo 12k/yr.

    .00130 MF and 61% residual

    kyfdx

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  • konacougkonacoug Kailua-KonaPosts: 194

    @patyojon said: Thanks. I got a little better offer from another dealership in SoCal as I live in Santa Monica: ** Payment Details** Term 36 Months Base Payment $538.81 Total Payment $587.30 Purchase Option $28,624.25 MSRP $46,925.00 Selling Price $44,900.00 Est. Miles Per Year 12,000 Amount Due at Signing 1st Month Payment 587.30 Acquisition Fee 725.00 Fees & Insurance 509.00 Upfront Taxes 122.51 Cap Reduction (Cash) 556.19 Total Inception Fees 2,500.00 How's that look??

    Not really all that good!! I recommend that you contact Greg Poland at Pacific BMW, Jon Shafer at Santa Barbara BMW email them your build requirements. The selling price is a little high and you could definitely do better. Also, what fees and insurance is in your quote. I know in California, it is only an $80 doc fee. There is no other insurance you should be buying from a BMW dealer. Gap insurance is included in the Acquisition fee. If you have the funds, you should do the MSD's too. Finally, don't do a cap reduction, even if you only do one MSD instead, it lowers your money factor rate by .0007

  • patyojonpatyojon Posts: 6

    damn ok thanks for the response! I'll contact those guys today

  • bmwfan9bmwfan9 Posts: 1

    Hi, please help. I got an offer on 2014 435i with Lighting Package, Technology Package for $49,600, invoice $47,840, MSRP $51,975. 36 mos 12K miles, 61% resdual, MF .00130, $1,150 down (no Cap Reduction) $682/mo including 8% CA tax. Does this sound right? My calculation comes out to be only $651 including tax but he said mine left out some fees. Please advise. Thanks so much for your help.

  • kyfdxkyfdx Posts: 31,040

    You have to account for an acquisition fee of $725, and title/registration fees of around $500.. That would easily make up the extra $30/mo. The residual and money factor are correct.

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  • konacougkonacoug Kailua-KonaPosts: 194

    @bmwfan9 said: Hi, please help. I got an offer on 2014 435i with Lighting Package, Technology Package for $49,600, invoice $47,840, MSRP $51,975. 36 mos 12K miles, 61% resdual, MF .00130, $1,150 down (no Cap Reduction) $682/mo including 8% CA tax. Does this sound right? My calculation comes out to be only $651 including tax but he said mine left out some fees. Please advise. Thanks so much for your help.

    bmwfan9, the mf is the base rate, have you included the acquisition fee in your calculations? The base is 725, they can raise it to the max of $925. If you are only putting down 1150, that means you are financing some of the normal drive offs. I also think you are paying a little too much for this car. I strongly recommend you contact Greg Poland at Pacific BMW or Jon Shafer at Santa Barbara BMW. Or even just send your build via email to internet depts. of dealers in your area.

  • Did residuals or money factors change at all for BMW 4 series for 15k 36 months for February

  • kyfdxkyfdx Posts: 31,040

    The January BMW rates are good through February 28th.

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  • @kyfdx@Edmunds said: The January BMW rates are good through February 28th.

    Thank you

  • Do you have the 36 month rate for a 435i x drive 12k miles per year? Is this the optimal lease term?

  • kyfdxkyfdx Posts: 31,040

    @berzerk91 said: Do you have the 36 month rate for a 435i x drive 12k miles per year? Is this the optimal lease term?

    .00130 MF and 61% residual.

    That is definitely the best term.

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