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2014 BMW 5-Series Lease Questions

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  • jxfan2013jxfan2013 Member Posts: 14

    Guys, I need an advise.. Working on a leasing deal with local dealer. We are just few dollars off on purchase price, MF and MSDs and all are all good.

    Then comes in to picture my Trade in BMW. I have 2012 BMW with trade in value approx 30K per KBB. so if I trade in, I don't want that to count toward my down payment. Do they still make one transaction, Cut me a check of 30K, and do leasing deal? I need to take advantage on Taxes.

    If I am completely Off, please guide me on how to work with this situation. I appreciate in advance.

  • rr4mywiferr4mywife Member Posts: 60

    Hi Car_Man: Always appreciate the information you provide. Do you know the August MF and residual for the following: 550ix for both 36/12, 36/10 .... and if they have a 39-month program too.

    Dealer is giving me 7500 of MSRP and its tempting.
    THANK YOU

  • obideeobidee Member Posts: 1

    @kyfdx hi yes $1544 is full amount due and $582 is with tax . I did not ask about MF yet do that have not run my wife's credit yet ? Thanks for the reply

  • kyfdxkyfdx Moderator Posts: 235,175

    @jxfan2013 said:
    Guys, I need an advise.. Working on a leasing deal with local dealer. We are just few dollars off on purchase price, MF and MSDs and all are all good.

    Then comes in to picture my Trade in BMW. I have 2012 BMW with trade in value approx 30K per KBB. so if I trade in, I don't want that to count toward my down payment. Do they still make one transaction, Cut me a check of 30K, and do leasing deal? I need to take advantage on Taxes.

    If I am completely Off, please guide me on how to work with this situation. I appreciate in advance.

    Yes.. .you can have them cut you a check for your trade-in... that shouldn't affect any tax credit, if indeed you are eligible for one.. Whether they cut you a check or use the proceeds towards your lease should not matter.

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  • kyfdxkyfdx Moderator Posts: 235,175

    @rr4mywife said:
    Hi Car_Man: Always appreciate the information you provide. Do you know the August MF and residual for the following: 550ix for both 36/12, 36/10 .... and if they have a 39-month program too.

    Dealer is giving me 7500 of MSRP and its tempting.
    THANK YOU

    .00130 MF and 61%/62% residual. $2500 build out cash. No comptetive 39 month programs.

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  • alexx3alexx3 Member Posts: 8
    edited August 2014

    Finalizing my 5-series lease. After all negotiations down to these 2 options:

    Am eligible for the following discounts: $1,000 drive event $1,000 new grad rebate. Both for 10k miles/yr for 36 months. No cap reduction down payment, only tax/reg/fees unfront

    1. [Option 1]: 2014 528xiAlpine White/Cinnamon, Cold Weather, Premium, Park sensor, Rear camera. MSRP $58,050 Discount $10,025** Final $48,025** Upfront $2,769 for tax/reg/fees $436/month
    2. [Option 2]: 2014 535xd Metallic White/Cinnamon, Cold Weather, Premium, Driver Assist MSRP $64,785 Discount $11,405 Final $53,380 Upfront $3,087 for tax/reg/fees $508/month

    Total cost of ownership analysis over 3 yrs:
    Annual 10k miles (7k drive to work/city/hwy @mix MPG and 3k roadtrips @ hwy MPG)
    Gas prices: Midgrade $4, Diesel $4.20 in NY

    528xi total lease+tax payments = $18,141, gas $4,596. Total = $22,737 for 3 yrs

    535xd total lease+tax payments = $20,940, gas $4,216. Total = $25,156 for 3 yrs

    So the diesel 535xd w/ awesome torque will cost me $2,419 more over the 528xi in 3 yrs. Trying to justify it to the wifey :)

  • MichaellMichaell Moderator Posts: 240,057

    @alexx3 said:
    Finalizing my 5-series lease. After all negotiations down to these 2 options:

    Am eligible for the following discounts: $1,000 drive event $1,000 new grad rebate. Both for 10k miles/yr for 36 months. No cap reduction down payment, only tax/reg/fees unfront

    1. [Option 1]: 2014 528xiAlpine White/Cinnamon, Cold Weather, Premium, Park sensor, Rear camera. MSRP $58,050 Discount $10,025** Final $48,025** Upfront $2,769 for tax/reg/fees $436/month

    I get $443.50 pre-tax, so your quote seems solid.

    1. [Option 2]: 2014 535xd Metallic White/Cinnamon, Cold Weather, Premium, Driver Assist MSRP $64,785 Discount $11,405 Final $53,380 Upfront $3,087 for tax/reg/fees $508/month

    I get $505.80 pre-tax, so again the quote is in the ballpark.

    Total cost of ownership analysis over 3 yrs:
    Annual 10k miles (7k drive to work/city/hwy mix MPG and 3k roadtrips @ hwy MPG)
    Gas prices: Midgrade $4, Diesel $4.20 in NY

    528xi total lease+tax payments = $18,141, gas $4,596. Total = $22,737 for 3 yrs

    535xd total lease+tax payments = $20,940, gas $4,216. Total = $25,156 for 3 yrs

    So the diesel 535xd w/ awesome torque will cost me $2,419 more over the 528xi in 3 yrs. Trying to justify it to the wifey :)

    Leasing a diesel doesn't make sense; I've found that it takes 5-8 years to recoup the up front premium that a diesel charges.

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  • alexx3alexx3 Member Posts: 8

    Thanks Michaell for the feedback. The 535d diesel vs 528i gas is more of a 6 cyl w/ huge torque vs 4 cyl. argument. I also have a '13 X3 28i and honestly did not find much excitement in 528i vs X3. Now 535s were awesome power. Total cost of 535i came out slightly ~$400 more than 535d over 3 yrs. So not really a financial argument. I am paying $2400 extra for 535d over 528i when looking at total cost of car+fuel over 3 yrs

  • alexx3alexx3 Member Posts: 8

    Michaell how much discount were you able to get off the MSRP? which rebates?

  • MichaellMichaell Moderator Posts: 240,057

    @alexx3 said:
    Michaell how much discount were you able to get off the MSRP? which rebates?

    Use the Car Research tab at the top of the page to determine what incentives are available. Edmunds also provides pricing information that will help you determine your target price.

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  • alexx3alexx3 Member Posts: 8
    edited August 2014

    Thanks @Michaell. From the Edmunds car research the MSRP for 535xd w/ Cold, premium, Driver Assist = $64,100 discounts $7,477 Final $56,623. I am assuming they are not including the $1000 drive event coupon and $1000 grad obviously. So with those that gets me to $54,623. That would be $553/month w/ MF 0.0013 and 61% residual for 10k miles 26 months. I got the dealer down to $53,380. Even with all that I am higher than you $505.80

    I am surprised you were able to get it that low. Seems like you got a fantastic deal. Were some options different, or did you do something else to lower the payments?

  • nonpulsednonpulsed Member Posts: 22

    Hello, Could I get residual % on 2014 528i, 24/15? Thanks in advance

  • MichaellMichaell Moderator Posts: 240,057

    @nonpulsed said:
    Hello, Could I get residual % on 2014 528i, 24/15? Thanks in advance

    .00130 and 65%

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  • geocity20geocity20 Member Posts: 13

    @jxfan2013 said:
    Guys, I need an advise.. Working on a leasing deal with local dealer. We are just few dollars off on purchase price, MF and MSDs and all are all good.

    Then comes in to picture my Trade in BMW. I have 2012 BMW with trade in value approx 30K per KBB. so if I trade in, I don't want that to count toward my down payment. Do they still make one transaction, Cut me a check of 30K, and do leasing deal? I need to take advantage on Taxes.

    If I am completely Off, please guide me on how to work with this situation. I appreciate in advance.

    What type of tax advantages can you get for this? I'm thinking about trading in my car as well.

  • MichaellMichaell Moderator Posts: 240,057

    @geocity20 said:
    What type of tax advantages can you get for this? I'm thinking about trading in my car as well.

    If you are trading in a car that has equity in order to start a lease, you have three choices:

    1. Have the dealer cut a check to you for the equity

    2. Use the equity to cover up front costs (fees, taxes, MSD, etc.) - then have the dealer cut you a check for the difference

    3. Use the equity as down payment (we don't recommend this)

    I don't think there are any tax advantages since the lease payment is taxed monthly in most states.

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  • timross218timross218 Member Posts: 6

    Hi there! So just starting my research as I live in Los Angeles, and am looking into leasing a 2014 535i 36mo/10k. I haven't visited the dealer yet (going this Saturday.)

    I'd like to go in with as much info as possible so was curious as to what questions I should ask? What numbers I should be given?

    Right now on the site it shows the car I am looking at is:

    $539*/month for 36 months. $1,500 Build-Out Cash is included in payment.

    • $539 First months payment
    • $3,500 Down payment
    • $0 Security Deposit
    • $725 Acquisition fee
    • $4,764 Cash due at signing

    This is based on a MSRP of $57,525

    Excludes tax, title, etc.

    I'd love to get all these numbers down obviously! haha

    Any advice?

    Thanks!

  • alexx3alexx3 Member Posts: 8

    The good quote I got in NY this week for 2014 535i w/ cold, premium, driver assist was:
    MSRP $62,850
    Discount $11,200 (incl. build out, $1k drive event, $1k new grad)
    Final $51,650
    No down payment
    Upfront $3000 for tax/reg/1st month
    monthly $491

  • MichaellMichaell Moderator Posts: 240,057

    @timross218 said:
    Hi there! So just starting my research as I live in Los Angeles, and am looking into leasing a 2014 535i 36mo/10k. I haven't visited the dealer yet (going this Saturday.)

    I'd like to go in with as much info as possible so was curious as to what questions I should ask? What numbers I should be given?

    Right now on the site it shows the car I am looking at is:

    $539*/month for 36 months. $1,500 Build-Out Cash is included in payment.

    • $539 First months payment
    • $3,500 Down payment
    • $0 Security Deposit
    • $725 Acquisition fee
    • $4,764 Cash due at signing

    This is based on a MSRP of $57,525

    Excludes tax, title, etc.

    I'd love to get all these numbers down obviously! haha

    Any advice?

    Thanks!

    This looks like the national (or regional) deal. It's OK, but you can do better.

    First, we don't recommend any sort of down payment on a lease - if the car is stolen or totaled, you are out that money.

    For the 535i, the base MF is .00130 and the 36/10 residual is 62%. As noted, there is $1500 "build out" cash available. You should subtract this from the best selling price you can negotiate.

    The $725 acquisition fee is the standard amount - some dealers will inflate this (or the MF, for that matter) for a bit of extra profit.

    Another way to lower the payment is to use multiple security deposits. Each one lowers the MF by .00007 - a total of 7 can be applied which takes the MF down to .00081.

    Use the shopping tools at the top of the page to help determine your target price - should be very close to invoice on the 2014's this time of year.

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  • timross218timross218 Member Posts: 6

    @michaell Thanks so much Michaell! Yep it is a regional deal.

    And yes totally I understand. I would LOVE to have a monthly payment of around $400. That LSR is actually REALLY good.

    Thanks again! Will use the shopping tool.

    You guys are the best!

  • timross218timross218 Member Posts: 6

    hey @michaell one more q. Is the way you get that LSR % from the original MSRP? Or the invoice? Or what you negotiate it down to?

  • MichaellMichaell Moderator Posts: 240,057

    @timross218 said:
    hey michaell one more q. Is the way you get that LSR % from the original MSRP? Or the invoice? Or what you negotiate it down to?

    Not sure what you mean by "LSR", but the residual value is calculated from the MSRP.

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  • timross218timross218 Member Posts: 6

    @michaell Yep that's what I mean by LSR (Lease residual value) Sorry!

  • timross218timross218 Member Posts: 6

    @Michaell‌

    So these are my terms, just wondering if this is a good deal?

    2014 BMW 535i lease, black on black, black rims..

    $2000 down (first months, tax, title, etc)

    $578 per month including tax

    Told me..

    "When I am giving you $7000 off msrp that is the 1500 incentive and much more. That 535 I just quoted you has a 4500 incentive so that will be the best possible deal around."

    I think it's pretty solid, and he seems like a nice guy, but want to make sure.

    Thanks!

  • MichaellMichaell Moderator Posts: 240,057

    @timross218 said:
    Michaell‌

    So these are my terms, just wondering if this is a good deal?

    2014 BMW 535i lease, black on black, black rims..

    $2000 down (first months, tax, title, etc)

    $578 per month including tax

    Told me..

    "When I am giving you $7000 off msrp that is the 1500 incentive and much more. That 535 I just quoted you has a 4500 incentive so that will be the best possible deal around."

    I think it's pretty solid, and he seems like a nice guy, but want to make sure.

    Thanks!

    It seems solid, but hard to tell if the MF is being inflated. We'd need the MSRP and selling price to know for sure.

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  • timross218timross218 Member Posts: 6

    @michaell Got it. Will try to get that info..

    But from what you see, that looks ok?

  • MichaellMichaell Moderator Posts: 240,057

    @timross218 said:
    michaell Got it. Will try to get that info..

    But from what you see, that looks ok?

    $5500 off sticker before applying the incentive seems to be an aggressive price. But, I'm not in the market for a $60K luxury sports sedan...

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  • engnellyengnelly Member Posts: 11
    edited August 2014

    First post here! Thanks to this forum I have been able to guide my previous Audi and BMW leases with informed numbers.

    @michaell In the market for 2014 528 xDrive; I was given the following deal in NJ:

    36 Month Lease - 15k miles/year.
    MSRP: $60235

    Sale Price: $50878 - Including discounts: $2500 Build out cash + $1000 un4gettable event cash

    Money factor: 0.00130

    Residual: 59%

    Total Cap cost: 54200

    Check for 2 last payments of Audi lease: $1562

    Price with rolled-in payments: $52400 + Tax = 54200

    Drive-off: $2000 - No MSD's but w/all taxes and fees inclusive

    Monthly payment: $635 w/tax included

    How am I doing here? We're approaching end of the month and the dealer is clearing inventory on '14 models. I think I can do a bit better on the sale price.

    What do you guys think? Should I push for a lower monthly payment.

    Thanks in advance for any response/advice.

  • MichaellMichaell Moderator Posts: 240,057

    @engnelly said:
    First post here! Thanks to this forum I have been able to guide my previous Audi and BMW leases with informed numbers.

    michaell In the market for 2014 528 xDrive; I was given the following deal in NJ:

    36 Month Lease - 15k miles/year.
    MSRP: $60235

    Sale Price: $50878 - Including discounts: $2500 Build out cash + $1000 un4gettable event cash

    Money factor: 0.00130

    Residual: 59%

    Total Cap cost: 54200

    Check for 2 last payments of Audi lease: $1562

    Price with rolled-in payments: $52400 + Tax = 54200

    Drive-off: $2000 - No MSD's but w/all taxes and fees inclusive

    Monthly payment: $635 w/tax included

    How am I doing here? We're approaching end of the month and the dealer is clearing inventory on '14 models. I think I can do a bit better on the sale price.

    What do you guys think? Should I push for a lower monthly payment.

    Thanks in advance for any response/advice.

    I'm getting $635/mo as well, as tax is calculated up front in NJ - and you've chosen to roll it into the cap cost.

    You can use MSDs to lower the MF - you can save $45/mo that way. Or, you can push for a lower selling price - but, you're already getting over $5K off sticker, before the incentives.

    Not much meat left on the bone for the dealer.

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  • engnellyengnelly Member Posts: 11

    Thanks @michaell. Appreciate your answer. I figured there wasn't much to play around with, especially rolling in the remainder lease payments.

    I'll think about putting down MSD's. Do you know how many SDs are required to lower the payment by as much as $45/month?

  • MichaellMichaell Moderator Posts: 240,057

    @engnelly said:
    Thanks michaell. Appreciate your answer. I figured there wasn't much to play around with, especially rolling in the remainder lease payments.

    I'll think about putting down MSD's. Do you know how many SDs are required to lower the payment by as much as $45/month?

    Each MSD lowers the MF by .00007 with a maximum of 7 allowed (.00081 total).

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  • jaydocjaydoc Member Posts: 11

    In the market for 2014 535 xDrive; I was given the following deal in MI:

    36 Month Lease - 12k miles/year. MSRP: $62575

    Sale Price: $55075 after all discounts and incentives ( don't have breakdown)
    -Money factor: 0.00130

    Residual: 61%
    0 down
    monthly payment : $593 plux tax($35.63)

    any advice ?? trying to seal the deal in few days

    Thanks

  • kyfdxkyfdx Moderator Posts: 235,175

    @jaydoc said:
    In the market for 2014 535 xDrive; I was given the following deal in MI:

    36 Month Lease - 12k miles/year. MSRP: $62575

    Sale Price: $55075 after all discounts and incentives ( don't have breakdown)
    -Money factor: 0.00130

    Residual: 61%
    0 down
    monthly payment : $593 plux tax($35.63)

    any advice ?? trying to seal the deal in few days

    Thanks

    I'm within a couple of dollars per month of the quoted payment, and those are the correct (base) rates for money factor and residual. There is $1500 of buildout cash on that model, so the discount before the incentive is about 9.5%, which is very good.

    The only variable is what amount is Due at Signing? And, the breakdown of that number.

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  • reyndreynd Member Posts: 7

    Hi Guys,

    Newbie here. I am comparing 2014 528i and audi a6 quattro pp lease deals.

    I got quote from dealer with $48495, same with truecar price (MSRP: $55400) on an 2014 528i with Driver Assistance Package, premium package, space grey metalic.

    Based on Edmund calculator, I got $558 including tax (CA), with MF .00007 and RV 61% (36/12), 0 down payment, pay acquisition fee, registration fee upfront (is this suggested?).

    Here are my questions:1, Is this price a great deal? Can I add the $1500 build out cash on this deal? 2, Is my calculation correct on the monthly payment ?

    Thanks for the answer.

  • SoCalM5SoCalM5 Member Posts: 0

    I just custom ordered a new 2015 M5 and signed my papers last Friday 8/15:

    2015 BMW M5
    MSRP: $114,650
    Sale Price: $99,375

    Money Factor: 0.00116
    Acquisition Fee: $725
    Residual: 62%, 36/10 lease
    Payment: $1006 + tax ~ comes out to $1087/mo @ 8% tax

  • SoCalM5SoCalM5 Member Posts: 0

    I just custom ordered a new 2015 M5 and signed my papers last Friday 8/15:

    2015 BMW M5
    MSRP: $114,650
    Sale Price: $99,375

    Money Factor: 0.00116
    Acquisition Fee: $725
    Residual: 62%, 36/10 lease
    Payment: $1006 + tax ~ comes out to $1087/mo @ 8% tax

  • spartan01spartan01 Member Posts: 19

    Hi Everyone - Looking to lease a 2014 535xi. Please let me know if this is a good deal and if there's anything that I can negotiate further:

    36 months, 18k/year
    MSRP: 67,100
    Price: 61,100
    MF: .00101
    Residual: .59
    Acquistion Fee: 925.00
    Cash: 4,500 down
    Govt Fees: 118.55
    Taxes: 2,458.14
    Doc Fee: 133.00
    Security Deposit 5,250
    Adjusted residual: 38,239

    Monthly Payment: 729.26.

    1.) Payment seems high with MSD down (I don't know how many but I assume the max is 7?)
    2.) Acquisition Fee standard is 725...looks like they're trying to make another 200 profit?
    3.) I've seen residual rates higher on the 535xi...can i negotiate?
    4.) Should the MF be around .00150 for this model?
    5.) Is 4,500 too much down?

    Lastly, I have a lease trade-in that was appraised at 3,500 less than my payoff. Is there any negotiating room to seal the deal? Thanks for the advice!

  • kennypiperkennypiper Member Posts: 2

    Hi all - let me know how i did....

    2014 528i Xdrive (36/12 Lease)
    Dark Graphite w/ Black Dakota Leather
    Premium Package
    Driver Assistance Package
    Cold Weather Package

    MSRP 58625
    Sale price 50300
    Fees 1413.07
    MF @7 MSD .00081
    Residual 61%

    Due at signing: $4498
    Cap Cost Reduction of $499 (to bring payment below $500)
    MSD - $3500
    1st payment $499

    no tax due to trade in value

  • MichaellMichaell Moderator Posts: 240,057

    @kennypiper said:
    Hi all - let me know how i did....

    2014 528i Xdrive (36/12 Lease)
    Dark Graphite w/ Black Dakota Leather
    Premium Package
    Driver Assistance Package
    Cold Weather Package

    MSRP 58625
    Sale price 50300
    Fees 1413.07
    MF 7 MSD .00081
    Residual 61%

    Due at signing: $4498
    Cap Cost Reduction of $499 (to bring payment below $500)
    MSD - $3500
    1st payment $499

    no tax due to trade in value

    I get a pre-tax payment of $473.56 with your numbers. Under $500/mo on a car that stickers for close to $59K is a great deal.

    Enjoy!

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  • Patelshivam94Patelshivam94 Member Posts: 61
    Can I get the residual and money factor please on 2014 535i xDrive GT, 2014 528i xDrive, and 2014 535i xDrive. 3 years / 15k miles per year.

    Thanks, in advance.
  • MichaellMichaell Moderator Posts: 240,057

    @Patelshivam94 said:
    Can I get the residual and money factor please on 2014 535i xDrive GT, 2014 528i xDrive, and 2014 535i xDrive. 3 years / 15k miles per year.

    Thanks, in advance.

    .00130 MF and 59% for all

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  • wassupbeewassupbee Member Posts: 57

    Hello, I am in the market to lease a 5 Series.
    I live in Alaska and there's only one BMW dealership so they are very hard to negotiate with.
    Any recommendations of BMW dealerships in WA or CA that have good lease deals?
    Thanks.

  • MichaellMichaell Moderator Posts: 240,057

    @wassupbee said:
    Hello, I am in the market to lease a 5 Series.
    I live in Alaska and there's only one BMW dealership so they are very hard to negotiate with.
    Any recommendations of BMW dealerships in WA or CA that have good lease deals?
    Thanks.

    I would think that the Seattle, Portland or SF Bay areas would have several dealers to choose from. Keep in mind that any money saved in the deal up front may be cancelled out by shipping costs back to AK.

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  • wassupbeewassupbee Member Posts: 57
    @ Michaell. That's a valid point. I might try negotiating with the dealership in town, but they are quite hard necked. They make you pay 1k above MSRP... What the freak is that...!
    If I could get it from Seattle, I think the shipping cost might not be too bad.

    Could I ask a big favor please. I am new to the lease field.
    I read through most of the pages (14) but I didn't quite understand what was what. Everything was foreign to me. Would you be able to explain the important things to look out for in a lease. I understand that the MF is like the interest when purchasing a vehicle. How do I respond when a sales rep asks me how much I want to put down? As I was reading, it seemed like there were two types if down payments (drive off and cap cost). Sorry, I am a noob. Is it a good lease if the payments (down & monthly) do not go over the depreciation of the vehicle at the end of the lease?
    For example, if my payments (down & monthly) add up to 20k in 3 years, the depreciation of the vehicle must be 20k? Is that how it works? If I lease the vehicle at 50k and the residual value of the vehicle is 30k, it evens out?
    Thank You.
  • MichaellMichaell Moderator Posts: 240,057

    @wassupbee said:
    @ Michaell. That's a valid point. I might try negotiating with the dealership in town, but they are quite hard necked. They make you pay 1k above MSRP... What the freak is that...!
    If I could get it from Seattle, I think the shipping cost might not be too bad.

    Could I ask a big favor please. I am new to the lease field.
    I read through most of the pages (14) but I didn't quite understand what was what. Everything was foreign to me. Would you be able to explain the important things to look out for in a lease. I understand that the MF is like the interest when purchasing a vehicle. How do I respond when a sales rep asks me how much I want to put down? As I was reading, it seemed like there were two types if down payments (drive off and cap cost). Sorry, I am a noob. Is it a good lease if the payments (down & monthly) do not go over the depreciation of the vehicle at the end of the lease?
    For example, if my payments (down & monthly) add up to 20k in 3 years, the depreciation of the vehicle must be 20k? Is that how it works? If I lease the vehicle at 50k and the residual value of the vehicle is 30k, it evens out?
    Thank You.

    Good questions you are posing.

    MF is indeed the 'lease charge' or interest rate for the money borrowed during the lease.

    Down payment can mean a couple of things in a lease. First, it can mean 'cap cost reduction', or money used to reduce the price.

    Second, it can represent the up front out of pocket costs - taxes, fees, etc. These can be rolled into the lease price but are often paid by the customer at the time of lease signing.

    You don't want to make a cap cost reduction - if the car is stolen or totaled, you are out that money.

    There are two components to a lease payment - depreciation and rent charge. Depreciation is exactly what it looks like - the difference between the selling price and the residual value (which itself is calculated by multiplying the MSRP by the residual percentage), divided by the number of months in the lease term.

    Rent charge is calculated as the sum of the residual and selling price, multiplied by the money factor.

    Add them up to get the pre-tax payment.

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  • wassupbeewassupbee Member Posts: 57

    Thank You.

  • wassupbeewassupbee Member Posts: 57

    @‌ Michaell
    Could you respond to my question about the monthly payment and down payment equaling the depreciation of the car at the end of the lease?
    Is it a bad lease if your payments are more than the depreciation? It seems like most leases' payments are more than the depreciation.
    Is this one of the flaws of leasing a vehicle or could this be worked out?
    Thank You.
    Could you show me how to do the calculation for the lease?
    The car I'm looking at is a 2014 535i XDrive with Driver's Assistance, Cold Weather Package, Navigation, and Premium package. The vehicle is priced @ $52,575. Do you think I could knock down the price more from here?
    With August's MF and RV, could you show me the calculations? I am tax-exempted so I do not have to worry about tax.
    Thank You.

  • MichaellMichaell Moderator Posts: 240,057

    @wassupbee said:
    @‌ Michaell
    Could you respond to my question about the monthly payment and down payment equaling the depreciation of the car at the end of the lease?

    They won't, because you have to add the 'rent charge' (interest rate) to the base payment.

    Is it a bad lease if your payments are more than the depreciation? It seems like most leases' payments are more than the depreciation.

    Not necessarily - the two variables you have control over in a lease are the MF (don't let the dealer inflate the base MF on you, and use MSD's to lower the MF) and the negotiated selling price.

    Is this one of the flaws of leasing a vehicle or could this be worked out?
    Thank You.
    Could you show me how to do the calculation for the lease?

    There are lots of lease calculators on the internet.

    The car I'm looking at is a 2014 535i XDrive with Driver's Assistance, Cold Weather Package, Navigation, and Premium package. The vehicle is priced @ $52,575. Do you think I could knock down the price more from here?

    I'm not in the market for a 5-series, so I can't comment on whether you are getting an OK price, a good price or a great price.

    With August's MF and RV, could you show me the calculations? I am tax-exempted so I do not have to worry about tax.

    What is the MSRP? With that and the selling price, I can use the MF and residual to calculate a payment for you.

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  • wassupbeewassupbee Member Posts: 57

    @‌ Michaell
    I've come to an offer from a dealership in Georgia.
    The MSRP of the vehicle is $61,950 with the sales price being $52,
    The dealership approved of 7 MSD's.
    I would like to keep my monthly payment in the $400 or $500 range, how much would I have to put down?
    Thank You.

  • wassupbeewassupbee Member Posts: 57

    Also, could you explain briefly about the concept of MSD?
    I understand that it's to lower the payment, but then what's the difference between the MSD and Down payment?
    Thanks.

  • MichaellMichaell Moderator Posts: 240,057

    @wassupbee said:
    @‌ Michaell
    I've come to an offer from a dealership in Georgia.
    The MSRP of the vehicle is $61,950 with the sales price being $52,
    The dealership approved of 7 MSD's.
    I would like to keep my monthly payment in the $400 or $500 range, how much would I have to put down?

    With an MSRP of 61,950 and a selling price of 52,000, using the adjusted MF of .00081 and RV of 61% (36 months, 12K miles), I get a payment of $467.47/mo.

    However .... Georgia has implemented an "ad valorem" tax, which I believe is 6.75% of the selling price, added on to the selling price. If I add that tax to the selling price ($55,510), the payment goes to $567.81.

    Also, could you explain briefly about the concept of MSD? I understand that it's to lower the payment, but then what's the difference between the MSD and Down payment?

    Multiple security deposits are used to lower the MF on the lease. The main difference is that the MSD monies are returned to you at the end of the lease, while down payment money is not.

    Every $1000 down lowers your payment in a 36 month lease by about $28/mo.

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