Need help with lease on a 4 series, thanks

dons4ride

New Jersey dealer - I live in New York

2014 4 series coupe x drive MSRP $57,050 including destination, other fees separate

36 months 10K miles per year

**one pay option **

less than stellar credit

Dealer told me if credit score is 640 or higher the MF is .00140, less than 640 the MF is .00160

They did not tell me the selling price, so figure $3500 of MSRP, so selling price for calculation purposes would be $53,500 if you think this selling price is reasonable.

They will be getting back to me in 2 days with actual total of the one time payment. What should the fair price be so I know if their offer is decent.

The Dealer also said that when you do a one pay option you would be out any money if the car was totaled before the lease end, unlike a down payment on a lease, do you know this to be true?

Thanks for any information

kyfdx

@dons4ride said:
New Jersey dealer - I live in New York

2014 4 series coupe x drive MSRP $57,050 including destination, other fees separate

36 months 10K miles per year

**one pay option **

less than stellar credit

Dealer told me if credit score is 640 or higher the MF is .00140, less than 640 the MF is .00160

They did not tell me the selling price, so figure $3500 of MSRP, so selling price for calculation purposes would be $53,500 if you think this selling price is reasonable.

They will be getting back to me in 2 days with actual total of the one time payment. What should the fair price be so I know if their offer is decent.

The Dealer also said that when you do a one pay option you would be out any money if the car was totaled before the lease end, unlike a down payment on a lease, do you know this to be true?

Thanks for any information

675+ gets the base rate.. 640-674 adds .00020.. 601-639 adds .00040

I'm not sure there is a pre-pay discount from the base rates of .00130 MF. I think what you meant your dealer to say, is your money is NOT at risk on a pre-pay lease, like it is with a big downpayment, and he is correct. A pre-pay lease is considered as though you put the money in an escrow account, and the money is drawn out each month to make the payment. If the lease ends early, involuntarily, the amount not used for that monthly payment is returned to you.

Are you considering a PrePay lease because of your credit issues? Because, without a money factor discount, there really isn't any savings.

The base MF is .00130 and the residual is 63% for 36mo, 10K/yr. Your selling price looks achievable, considering the $1000 option credit. At those numbers, the base payment would be $604/mo. X 36 = $21744. Add $725 acq.fee, $299 dealer fee (guessing) and $500 title registration (estimate). Total would be around $23,300 + NYS tax (8%?) = $25,164. (estimate).

For every .00020 you get bumped above .00130, it adds $17/mo. or $661 including 8% tax.

Since the PrePay option doesn't give you a money factor discount, you'd be better off doing multiple security deposits (MSDs), then taking a straight lease. At least then, you'd get some benefit from upfront money.