2014 BMW 428i xDrive Convertible Lease vs. Purchase

ecm313

Hi all. Looking to purchase or lease a 2014 convertible. They seem to be limited in availability, especially because we don't need most of the bells and whistles. Found one with MSRP $55,685, CAP price $52,500. Dealer offered 33-month lease with monthly payment of $570.78/month + $5,590 out of pocket (12K miles/year). Waiting to hear back on MF and Residual. Alternatively, could finance at $846/month for 60 months with $10K down at 2.25%. Are either of these a good deal? Thanks in advance for your help!!!

kyfdx

@ecm313 said:
Hi all. Looking to purchase or lease a 2014 convertible. They seem to be limited in availability, especially because we don't need most of the bells and whistles. Found one with MSRP $55,685, CAP price $52,500. Dealer offered 33-month lease with monthly payment of $570.78/month + $5,590 out of pocket (12K miles/year). Waiting to hear back on MF and Residual. Alternatively, could finance at $846/month for 60 months with $10K down at 2.25%. Are either of these a good deal? Thanks in advance for your help!!!

Residual is 65% and base money factor is .00130. $1000 buildout cash.

$5590 is a lot of money out of pocket.. $570 payment, $725 acq.fee.. $4000 downpayment? With $4000 as a downpayment on the CAP cost, I get a payment of $483/mo.+ tax.. That seems like a long way from $570/mo.

With the $1000 incentive, your selling price is only a 4% discount off MSRP. I'd want another $1000 off. Plus, you should ask what money factor they are using. I'll guess they are marking up the base money factor, and probably the acquisition fee, too..

ecm313

He said base money factor is .0017. Wouldn't budge and said he couldn't do it for .0013. The down payment includes acquisition of $725, a dealer's fee of $495 (obviously that can be waived if they want to), tax, title, etc. Thanks for your help, kyfdx! I wish he seemed more willing to negotiate! But at least I was able to come across as somewhat knowledgeable when I spoke with him, thanks to you.

kyfdx

@ecm313 said:
He said base money factor is .0017. Wouldn't budge and said he couldn't do it for .0013. The down payment includes acquisition of $725, a dealer's fee of $495 (obviously that can be waived if they want to), tax, title, etc. Thanks for your help, kyfdx! I wish he seemed more willing to negotiate! But at least I was able to come across as somewhat knowledgeable when I spoke with him, thanks to you.

The money factor markup adds about $35/mo. or about $1250 over the lease term.

ecm313

Thanks. Looks like the mark-up for purchase price isn't terrible when calculating the invoice cost. Do you know if Costco is a reliable calculator for invoice price? If it is, looks like invoice price is only $1,200 lower than the sale price they offered us.

kyfdx

@ecm313 said:
Thanks. Looks like the mark-up for purchase price isn't terrible when calculating the invoice cost. Do you know if Costco is a reliable calculator for invoice price? If it is, looks like invoice price is only $1,200 lower than the sale price they offered us.

I don't know about Costco, but you can check invoice prices right here on Edmunds. Just build your car using the Make/Model/Year tabs at the top of the page.

ecm313

Just for other people to compare, I got them down from advertised price of $55,685 to $51K. Turns out it wasn't an xDrive, but that's OK because we are in sunny Florida. Edmunds True Value Estimator says $55,280 and invoice is $52,500 (though the invoice the dealer showed me said $51,500).

konacoug

I would never agree to pay a mark up on the money factor, it is costing you almost $2000 over the lease. Also, you should consider nearby states, to escape the ridiculous Florida doc fee, which is total profit for the dealer. You should also sign up for the Ultimate drive event and get another $1000 off and you can use that at any dealer in the country.