2014 BMW 3-Series Lease Questions

kyfdx · January 2014

2014 335i 36mo, 12K/yr lease

.00130 MF and 59% residual

kyfdx

icings · January 2014

Anyone know how sales tax is actually computed for the lease?
I know about the taxes on Acq fee and etc but not too clear on taxes on the actual lease.
Was told that tax is computed by 7% (NJ Tax Rate) X depreciation of car. So this means if MSRP is 40000 and Residual is 25000 then depreciation is 15000. Formula would be 15000 X .07. I thought the tax is computed by Net Cap (Agreed sales price) X .07 (NJ Tax rate).

Michaell · January 2014

@icings said:
Anyone know how sales tax is actually computed for the lease?
I know about the taxes on Acq fee and etc but not too clear on taxes on the actual lease.
Was told that tax is computed by 7% (NJ Tax Rate) X depreciation of car. So this means if MSRP is 40000 and Residual is 25000 then depreciation is 15000. Formula would be 15000 X .07. I thought the tax is computed by Net Cap (Agreed sales price) X .07 (NJ Tax rate).

I believe the sales tax is calculated from the lease payment. For example, if your base lease payment is $300, then the tax is $21 to get a total payment of $321.

But, different states calculate sales tax differently. Illinois and Texas calculate sales tax on the entire value of the car, not just the portion used during the lease.

kyfdx · January 2014

@icings said:
Anyone know how sales tax is actually computed for the lease?
I know about the taxes on Acq fee and etc but not too clear on taxes on the actual lease.
Was told that tax is computed by 7% (NJ Tax Rate) X depreciation of car. So this means if MSRP is 40000 and Residual is 25000 then depreciation is 15000. Formula would be 15000 X .07. I thought the tax is computed by Net Cap (Agreed sales price) X .07 (NJ Tax rate).

NJ is either depreciation, or the total of payments.. But, it's calculated and paid upfront, not monthly. Of course, you can roll that amount into your lease payments, if you'd rather not pay upfront.

dentadeb · January 2014

@zgcorbin said:
Hey all,

I'm in TX and have negotiated the following deal:

MSRP $47,275 (Sport pkg, Driver assist pkg, Premium pkg, + Nav)
Cap Costs $42,200
USAA Rebate -$500
BMW Loyalty -$500
MF .00125 - 7 MSD = .00076
36 month 15k/yr
0 down other than first payment and such
Payment $462

Its a little more car than I wanted... I'm going to ask they throw in tint.

dentadeb · January 2014

That sounds like what I want. I have a 2010 x3 but rather plain Jane, no bells and whistles. Has 49100 miles so will have to consider extended warranty soon. No problems in last 3 years until short in last 6 weeks and had to replace side mirror, which would've cost about 1200 without warranty. Will need tires within 6 months too. Paying $706 per month, have 28 months left. Newer model has a lot more head and leg room which would be better for trips. Would it be worth it? Need some input here. Owe approximately $19068. Any ideas? Warranty is around $3000 or so

kyfdx · January 2014

The problem with the extended warranty is that there will still be repairs it won't cover, and it doesn't include the extended maintenance plan, which is probably another $2000.

However, even with all that, keeping your current vehicle with $19K of debt will still be cheaper in the long run than buying a new $45K vehicle.

In the short run, you can really help your cash flow by selling your X3 and leasing a new vehicle, but don't mistake that for long-term savings.

rogerklotz · January 2014

Hello, can you tell me the MF and residual on 2014 335i 10k/year? Thank you.

kyfdx · January 2014

@rogerklotz said:
Hello, can you tell me the MF and residual on 2014 335i 10k/year? Thank you.

.00130 MF and 60% residual

$750 option credit and $500 drive credit.

jcarlough · January 2014

Hi - Can I get info on a 328d Sport Wagon xDrive? 10k lease & likely 36-month.

Thanks!

kyfdx · February 2014

@jcarlough said:
Hi - Can I get info on a 328d Sport Wagon xDrive? 10k lease & likely 36-month.

Thanks!

.00130 MF and 60% residual. $1000 of lease incentives.

gfish49 · February 2014

Hello - can I get the money factor and residual for 15,000 miles a year and 12,000 miles a year on a 2014 328d? Will also be putting down the 7 max security deposits. Thanks and always appreciate your help.

charlesriver · February 2014

320xi. MSRP $40,325. Invoice 37,125, Sale price $37,300. Money factor 0.0017, residue 65%. Acquisition $785, doc fee $289. I asked for 0.00125 but told it is regional (I live in Boston) and was showed a document that lists the rate for different credit level, so I took the bite. Is the money factor different among regions? Seeing NYC folks paying 0.0013, starting to wonder if I was taken advantage of - thought money factor and residue is standard that one don't have to negotiate on. The car won't be ready until March.

charlesriver · February 2014

Leasing for the first time, I am puzzled on the other posts voting against down payments. I understand that it is not refundable. However, in a total loss, are you still obligated for the remaining lease obligations? If so, since down payment reduces lease obligation, isn't it better off to use down payments to reduce rent charges? Or, is it in the total loss case, insurance company pays dealer, therefore down payment will be gone?

Michaell · February 2014

@charlesriver said:
Leasing for the first time, I am puzzled on the other posts voting against down payments. I understand that it is not refundable. However, in a total loss, are you still obligated for the remaining lease obligations? If so, since down payment reduces lease obligation, isn't it better off to use down payments to reduce rent charges? Or, is it in the total loss case, insurance company pays dealer, therefore down payment will be gone?

It's the latter, except insurance pays finance company car is registered to. But, same result. You are out the money.

charlesriver · February 2014

Thanks Michael. Leasing is really complex for a first timer. Finally understand the magic 2400 multiplier from this website: https://www.alphaleasing.com/resources/articles/MoneyFactor.asp. I think I have been given a marked-up money factor, 0.0017, which I translates to 3% based on cap cost. Since the car is in transition and won't be available for another month, I have not signed lease agreement yet, just a purchase contract with scribbled monthly payments on it. Is there any room to renegotiate down the money factor?

@Michaell@Edmunds said:

kyfdx · February 2014

@gfish49 said:
Hello - can I get the money factor and residual for 15,000 miles a year and 12,000 miles a year on a 2014 328d? Will also be putting down the 7 max security deposits. Thanks and always appreciate your help.

.00130 MF and 56% for 36mo, 15K/yr.

Add 2% to the residual for 12K/yr

Subtract .00049 from the MF for 7 MSDs

kyfdx · February 2014

@charlesriver said:
320xi. MSRP $40,325. Invoice 37,125, Sale price $37,300. Money factor 0.0017, residue 65%. Acquisition $785, doc fee $289. I asked for 0.00125 but told it is regional (I live in Boston) and was showed a document that lists the rate for different credit level, so I took the bite. Is the money factor different among regions? Seeing NYC folks paying 0.0013, starting to wonder if I was taken advantage of - thought money factor and residue is standard that one don't have to negotiate on. The car won't be ready until March.

They lied.. It's not regional. The base rate is .00130, and they marked it up the maximum amount to .00170. The base acquisition fee is $725. They can mark that up to as high as $925.

There are different rates for different credit levels, but it only takes a FICO score of 675 to get BMWFS best rate.

joomlarocks · February 2014

I am looking to lease a 3 series BMW ... I went to a local dealer here in NJ yesterday, and on a 39344 MSRP Selling at 38000 w/2k down my payment is coming in at 485 per month, I am seeing many people on here with higher MSRPs yet the monthly payment is lower, why is this is there something I should be asking for?

kyfdx · February 2014

Lease deals are negotiable. Dealers will rarely offer a great deal on their first offer. NJ has a lot of BMW dealers. You need to introduce some competition for your business by shopping around.

konacoug · February 2014

@charlesriver said:
Leasing for the first time, I am puzzled on the other posts voting against down payments. I understand that it is not refundable. However, in a total loss, are you still obligated for the remaining lease obligations? If so, since down payment reduces lease obligation, isn't it better off to use down payments to reduce rent charges? Or, is it in the total loss case, insurance company pays dealer, therefore down payment will be gone?

Your CA lied to you the base rate is .00130. The acquisition fee covers gap insurance on the lease, in the event of total loss. If you put down a large amount of money to achieve a lower interest rate, you lose it all, if something happens to the car. You are much better served to put down Multiple Security Deposits, for each MSD, it lowers the mf by .0007. You can put a max of 7 MSD's down for a total reduction of .00049. This will effectively lower your payment in the range of $40-50 per month.

If you already took delivery of the car...I would request an appointment with the General Manager and tell him you were outright lied to about the money factor. I would not let this go!

konacoug · February 2014

@joomlarocks said:
I am looking to lease a 3 series BMW ... I went to a local dealer here in NJ yesterday, and on a 39344 MSRP Selling at 38000 w/2k down my payment is coming in at 485 per month, I am seeing many people on here with higher MSRPs yet the monthly payment is lower, why is this is there something I should be asking for?

First mistake you made was going down to the dealer....you should always negotiate via email, once you are in the dealership, they have a lot more leverage on you, unless you are a very savvy buyer and can recognize a bad deal and walk away. I can tell you the selling price is awful. It would behoove you to read up on all of the variables in BMW leasing. An educated buyer/leaser will save thousands over anyone walking into the dealer ship and making an uniformed deal. That way you won't come back here and ask "did I get a good deal" In reality you should know long before you sign the papers.

I could write a ton of stuff here, but I have posted everything you need to know to make the best deal you can. Go online, here, build the car, see what the invoice is, email offers to local dealers internet depts. Ask for detailed itemization of all fees, use MSD's to lower the money factor.

charlesriver · February 2014

I have not taken delivery as the car is still on the boat not in stock yet, but I did pay $500 deposit though the lease agreement won't be signed until the car gets in. I will call the sales manager but not sure what my leverage is if he won't budge.

@konacoug said:

charlesriver · February 2014

My experience with Boston BMW dealers: as soon as you talk numbers, they stop replying your emails. Very different from honda/Toyota dealers. //sigh

@konacoug said:
I could write a ton of stuff here, but I have posted everything you need to know to make the best deal you can. Go online, here, build the car, see what the invoice is, email offers to local dealers internet depts. Ask for detailed itemization of all fees, use MSD's to lower the money factor.

MIAdeals · February 2014

Hello, can I please get the money factor & residual values for the 2014 320i for 12K/36 mos. and 12K/24 mos.? Thank you!

kyfdx · February 2014

@MIAdeals said:
Hello, can I please get the money factor & residual values for the 2014 320i for 12K/36 mos. and 12K/24 mos.? Thank you!

.00130 MF and 64% residual. 24 month residual is 70%.

tirath5u · February 2014

Apologize if this is out of place but had a question: I am looking to buy a CPO 2012 BMW 328i Convertible it has 8710 miles on it and clean CarFax report with only one owner.
It has the following options:

Premium package
Navigation with voice
Harman Kardon Music system
dynamic Cruise Control,
BMW Assist with Bluetooth
BMW Teleservices
iPod and USP adapter
Automatic Climate Control
Voice Command
Real Time Traffic Information
Run-Flat tires.

The car is only sale for $36,888. I like the features and the mileage and kind off really want this car. Is there room for negotiation on the price? I checked Edmunds TMV, Truecar, KBB it says the car is valued at 41K with this configuration and mileage. This is in Florida. Please let me know if you guys think this is a good deal and if I can negotiate to bring the price down.

thanks

T

ms25 · February 2014

Hello. Could I get a reaction to this lease offer on a 2014 328xi (premium and cold weather packages), please? Any advice on how much lower I could go on either due at signing and/or monthly payment? (FYI - this is in NY)

MSRP: $44,800
Sale price: $38,212
$389/mo
$2500 due at signing (including first month)
Term: 36 months, 10K miles/yr
Money Factor: 0.0013
Residual: 60%

Thank you!

MIAdeals · February 2014

Thank you!

kyfdx · February 2014

@ms25 said:
Hello. Could I get a reaction to this lease offer on a 2014 328xi (premium and cold weather packages), please? Any advice on how much lower I could go on either due at signing and/or monthly payment? (FYI - this is in NY)

MSRP: $44,800
Sale price: $38,212
$389/mo
$2500 due at signing (including first month)
Term: 36 months, 10K miles/yr
Money Factor: 0.0013
Residual: 60%

Thank you!

Does that include sales tax?

ms25 · February 2014

Kyfdx: yes, I believe the $2500 does include the tax. Given it does, what do you think? (Otherwise that would imply the 2500 is a cap cost reduction (right?) which I have explicitly told the sameman I am not interested in doing.) Thanks again!

kyfdx · February 2014

@ms25 said:
Kyfdx: yes, I believe the $2500 does include the tax. Given it does, what do you think? (Otherwise that would imply the 2500 is a cap cost reduction (right?) which I have explicitly told the sameman I am not interested in doing.) Thanks again!

It looks really good.. Big discount, base rates... $2500 should cover tax, acquisition fee, 1st payment and title/registration... With all that, I get a payment about $10/mo. higher, but that's close enough... What's not to like? ;-)

sergeym · February 2014

@charlesriver said:
I have not taken delivery as the car is still on the boat not in stock yet, but I did pay $500 deposit though the lease agreement won't be signed until the car gets in. I will call the sales manager but not sure what my leverage is if he won't budge.

Just tell the sales person that you are not happy with the deal and want to cancel it and that you expect them to return your deposit quickly. No matter what they say, until you drive the car off the dealer's lot you can cancel at any moment

upshiftb · February 2014

Wonderful info here, thanks for continuing to help fellow consumers! I’m looking for details on leases for:

2014 335i xDrive Gran Turismo (MSRP ~$61k)
2014 328i xDrive Sport Wagon (MSRP ~$55k)

Looking for for 12k @ 24 vs. 30 vs. 36 mo. Located in Seattle, WA 98103

Thanks in advance!

ardie_888 · February 2014

Hey guys, these forums are really helpful. I have a few questions.

1) A lot of people have mentioned using the invoice price as a reference. I have a specific BMW 3 series in mind with specific options. How do I determine the invoice price for this model? Is there a web site I can use?

2) Also, a lot of people suggest negotiation over email or phone. I get the reasoning but am having trouble getting the dealers to play back. A lot seem to lose interest when you try to communicate by email. Any tips for finding dealers that are willing to do this?

3) If the car I'm interested in isn't on the lot but the dealer can order from another lot, does that decrease the dealer's willingness to negotiate?

Thanks!

konacoug · February 2014

ardie-_888: Are you contacting the internet depts. of the dealers? That is who you should be targeting. Also, which area of the country do you live in? If you are in So Cal, there are lots of dealers to choose from. Go to build a car section of this forum. You can price out the car and get the invoice. Yes, the dealer is much less likely to work a better deal when the car is somewhere else. Why not send an email to the dealer with the car and try to work something out.

Are you buying or leasing, big difference and a little more complicated. If you provide a little more info, I can help point you in the right direction.

ardie_888 · February 2014

Kona, thanks. I'll contact the internet department. I was trying to deal with dealers I had either met in person or called directly on the phone.

I live in SoCal. I'm in San Diego so the best options are the 5 or so in that area. It seems like I'll get a lot better choice if I open that up to LA area as well?

I'm leasing. I'm somewhat familiar with how that works but definitely no expert. It seems like I should aim for as little money down, as high a security deposit and as low a negotiated price as possible?

Thanks for your response.

konacoug · February 2014

ardie, I can make this very easy for you....contact Greg Poland at Pacific BMW, send him an email with your build information. He is a solid CA and supports the Bimmerfest Board. He will not mark up the money factor and give you a straight, no nonsense deal. In your email tell him you want to use Multiple security deposits, which will lower your interest rate on the money factor. If you read my posts, I have explained them many times. Good luck and post your deal details...

radblaster · February 2014

Hello wondering if this is a good deal on the following 2014 328i:

MSRP 52,100
Sell price: 45,424$
M-sport, lighting, technology, driver assist, etc pretty fully loaded
----
36m/12k @ 59% residual and 0.00081 MF with the 7 MSDs

For a total of 511$/month CA tax included
----
725 Bank fee
431 Reg
80 documentation
3,850 security deposit
----
5670$ drive off

Is this a good deal? Its a little more car than I wanted. I think the sell price includes incentives since it is 2k under invoice but I havent asked.

Maybe I can ask for .00076 MF and 61% residual, I would prefer to be at 475$ a month with tax. Is there room to negotiate on this deal?

Thanks for any help. Learned a ton here.

charlesriver · February 2014

Thanks all for the help. This forum is really very helpful. So I talked to the sales manager, he is willing to change money factor to .00081 with 7 MSDs. Very happy now, can't wait to receive our first bimmer. And congratulations to the folks above getting great deals.

ms25 · February 2014

Thanks kyfdx. Got it down to $2400 at signing (total) $379/mo. Quite honestly I think I could have gotten to $369, but I was satisfied with the deal. Thanks again to this forum. Very helpful!

konacoug · February 2014

@radblaster said:
Hello wondering if this is a good deal on the following 2014 328i:

MSRP 52,100
Sell price: 45,424$
M-sport, lighting, technology, driver assist, etc pretty fully loaded

36m/12k @ 59% residual and 0.00081 MF with the 7 MSDs

For a total of 511$/month CA tax included

725 Bank fee
431 Reg
80 documentation
3,850 security deposit

5670$ drive off

Is this a good deal? Its a little more car than I wanted. I think the sell price includes incentives since it is 2k under invoice but I havent asked.

Maybe I can ask for .00076 MF and 61% residual, I would prefer to be at 475$ a month with tax. Is there room to negotiate on this deal?

Thanks for any help. Learned a ton here.

I think your deal is very good! You have the base rate MF and Acquisition fee. I really doubt you could get much lower, if your MSRP is correct. However, you can ask for a breakdown of the deal, including incentives/rebates. I think you have too much car to get under $450 before taxes. You can play around with the lease calculator and see what it takes to get there.

I am assuming you are in California, if so, you can email your deal to Greg at Pacific BMW and get a comparison quote, maybe a slightly better deal. Greg is in the top 25 CA's in the country.

radblaster · February 2014

Cool thanks Kona. Off the bat it seemed like a great deal but yeah it maybe too much car to get to where I want to be, theres a ton of extras I really dont need.

I had thought the base MF was .00125 and 61% residual(36/12k) for the 328i unless that changed with the new year.

Playing with the lease calc here if the residual is 61% then my payment will be 476$ with tax. If I can't get that I will go with a lower spec custom order with Jon @ Santa Barbara BMW.

Thanks for your help.

kyfdx · February 2014

@upshiftb said:
Wonderful info here, thanks for continuing to help fellow consumers! I’m looking for details on leases for:

2014 335i xDrive Gran Turismo (MSRP ~$61k)

2014 328i xDrive Sport Wagon (MSRP ~$55k)

Looking for for 12k @ 24 vs. 30 vs. 36 mo. Located in Seattle, WA 98103

Thanks in advance!

1) .00130 MF and 60% residual for 36mo, 12K/yr lease

2) .00130 MF and 59% residual.

Add 3% for 30 months, add 6% for 24 months (you don't want either of those terms)

kyfdx · February 2014

@radblaster said:
Cool thanks Kona. Off the bat it seemed like a great deal but yeah it maybe too much car to get to where I want to be, theres a ton of extras I really dont need.

I had thought the base MF was .00125 and 61% residual(36/12k) for the 328i unless that changed with the new year.

Playing with the lease calc here if the residual is 61% then my payment will be 476$ with tax. If I can't get that I will go with a lower spec custom order with Jon @ Santa Barbara BMW.

Thanks for your help.

It's .00130 MF and 59% residual for February.. @konacoug is right... that's a good deal.

ken117 · February 2014

One thing to recognize is there are no unique dealership internet departments offering secret low prices to buyers as has been suggested by many "experts." Dealers caught on to this recommendation a while ago. While many dealers have an internet sales operation, that operation is really not unique and does not offer lower prices than can be achieved by simply walking into a dealership.

The dealership is one integrated operation of which internet sales is a part. One day a sales person might be on the floor. Another day, that same sales person might be handling internet inquiries. All dealership sales are formulized and approved by the sales manager and not by the internet or floor sales person.

There are no fleet prices offered to individual buyers. In order to attain a fleet price, the buyer must buy several vehicles and must meet the standards set by the manufacturer for such sales.

What a dealership internet sales operation can offer is less negotiating. Dealers know a buyer contacting the dealership via the internet is shopping, has knowledge, and will not visit unless the buyer receives what he or she is looking to obtain via the internet contact. Those dealers recognize the internet contact may be their one and only chance to snag the buyer. Therefore, those dealers will often provide the buyer a price closer to the dealership's best price than they would initially offer had the buyer simply walked into the dealership.

konacoug · February 2014

I would disagree regarding internet depts. There are dedicated internet depts. at some dealers. Also, many people once inside a dealership are much more easily manipulated. One can also email many dealers, with request for quotes rather than walking into a dealership. The CA's are trying to squeeze the max profit they can make on every car, therefore, a walk in tends to be much less educated, more payment centric and willing to accept that they are getting a "good deal".

For example, I don't know of one CA that has ever offered MSD's to a buyer. They never recommend them, they want more money down for cap reduction to lower the payment. In fact, many CA's and even finance guys don't really know the rules for MSD's. I'm sure there are a few very good CA's out there, that do recommend MSD's and try to build a solid relationship with the clients.

Quite frankly, I have been lied to, ie. this is our base money factor, this is what we have to charge for the acquisition fee. I was totally ripped on my first lease, hence, I am here, trying to help op's get an equitable deal. I am on my third BMW and I saved thousands by learning about the BMW leasing process. Just say'in....

yolan · February 2014

Hi, does anyone know what incentives are available for February? Looking to get a 320i. Is this the best month for incentives or is March going to be better?

upshiftb · February 2014

Thank you, sir! You rock!

@kyfdx@Edmunds said:

ardie_888 · February 2014

see post below

2014 BMW 3-Series Lease Questions

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