2015 BMW 3-Series Lease Questions

Michaell

lb530529 said:

Thank you Michael,
So what is the standard residual percentage for both the 320i xDrive and the 328i xDrive, on a 36/10 lease? 57%?

56% for 320xi, 58% for 328xi

lb530529

Sorry, just making sure those numbers are for 2015 models right?

Michaell

lb530529 said:

Sorry, just making sure those numbers are for 2015 models right?

Correct.

lb530529

Thanks Michael. Is the deduction rate per mile standard per auto make, or could the dealer mark it up without the consumer knowing about it? Reason I ask is since your estimate had a big gap from 0.15 to 0.25

Michaell

lb530529 said:

Thanks Michael. Is the deduction rate per mile standard per auto make, or could the dealer mark it up without the consumer knowing about it? Reason I ask is since your estimate had a big gap from 0.15 to 0.25

We don't know what the actual number is; and yes, different brands may use different rates for the deduction.

okjsc94

Got a quote for a loaner 2015 328 diesel with 8712 miles for 36mo/12k miles for SC.

MSRP: $41,450
Sale Price: $34,849
Cap red: $2238.01
Amt Applied Upfront: $761.99 - (this I don't understand?)
.00175 MF
Cash due on delivery $3000 (2238 cap red, 339 fees, 1st month)
Residual: $22,797.50 (55%)
Adjusted Residual @ .25c per mile: $20,744.50.

My excel sheet shows a payment of $423.50. The dealer came with $422.95. Pretty close.

Dealer said $3000 build out is included in selling price.

Seems like a bad deal. I am not in favor of cap cost reduction and I know the MF has been marked up but despite that it seems like the monthly is way too high for the car. I think the adjusted residual is killing the deal am I right?

Can I improve aside from the MF? Can the dealer adjust mileage at a rate of .15c instead of .25c?

kyfdx

okjsc94 said:

Got a quote for a loaner 2015 328 diesel with 8712 miles for 36mo/12k miles for SC.

MSRP: $41,450
Sale Price: $34,849
Cap red: $2238.01
Amt Applied Upfront: $761.99 - (this I don't understand?)
.00175 MF
Cash due on delivery $3000 (2238 cap red, 339 fees, 1st month)
Residual: $22,797.50 (55%)
Adjusted Residual @ .25c per mile: $20,744.50.

My excel sheet shows a payment of $423.50. The dealer came with $422.95. Pretty close.

Dealer said $3000 build out is included in selling price.

Seems like a bad deal. I am not in favor of cap cost reduction and I know the MF has been marked up but despite that it seems like the monthly is way too high for the car. I think the adjusted residual is killing the deal am I right?

Can I improve aside from the MF? Can the dealer adjust mileage at a rate of .15c instead of .25c?

Amount applied upfront = 1st payment + fees
The remainder of the $3000 upfront is CAP cost reduction.

Yeah... doesn't look like a great deal here, either. Considering that you are losing $2200 on the residual, due to existing mileage, it doesn't appear you are getting enough extra discount on the front end, to make up for it. Add in the marked up money factor, and it gets worse.

With just 1st payment and fees upfront, this wouldn't be a bad deal. but, not with $2238 downpayment.

kram123

Hello. Can you please provide me with the money factor and residuals for a 2015 335i - 36/12 and 36/15 lease? Based in Southern California.

Thanks!

Michaell

kram123 said:

Hello. Can you please provide me with the money factor and residuals for a 2015 335i - 36/12 and 36/15 lease? Based in Southern California.

Thanks!

00135 and 53% for 36/15. $3000 buildout allowance.

Add 2% for 12K

kram123

Thank you. You mean 55% residual for 12K correct? Are the residuals the same for 2015 328i?

Thanks!

Michaell

kram123 said:

Thank you. You mean 55% residual for 12K correct? Are the residuals the same for 2015 328i?

Thanks!

Yes, 55% for 36/12 on 335i.

Add 2% for 328i

kram123

Michaell said:

kram123 said:

Thank you. You mean 55% residual for 12K correct? Are the residuals the same for 2015 328i?

Thanks!

Yes, 55% for 36/12 on 335i.

Add 2% for 328i

Thank you!

justinauto2016

Hi,

Would anyone know if I can still get the 2015 BMW 328i xDrive AWD lease numbers for 36 month/12k year and 36 month/15k year?

I was told 15k/year money factor is 0.00175 with 55%. Does this sound correct?

Also...is the Build Out Cash applied before or after the negotiated price?

Thanks!

Michaell

justinauto2016 said:

Hi,

Would anyone know if I can still get the 2015 BMW 328i xDrive AWD lease numbers for 36 month/12k year and 36 month/15k year?

I was told 15k/year money factor is 0.00175 with 55%. Does this sound correct?

Also...is the Build Out Cash applied before or after the negotiated price?

Thanks!

Close ... I agree with the 55% residual but the base MF is .00135 this month.

You want to apply the buildout cash after negotiating your best deal. Dealer will probably include it in whatever offer they make.

gtindeed

Any suggestions for the best time to bring up the $3k build out incentive for these heavily discounted 2015 demo and loaner cars?

Looking at a few fully loaded factory demo cars with 5k-7k miles on them that are already 23%-25% off MSRP. Given the discount, its harder to determine if the $3k is already in the price or not. Without bringing it up before we agree to a final price, I feel like they will just claim it was always included in their number from the start and we will have to argue all over again.

Should I ask the dealer for a full lease worksheet and purchase scenario and see how they handle and then negotiate from there?

Michaell

gtindeed said:

Any suggestions for the best time to bring up the $3k build out incentive for these heavily discounted 2015 demo and loaner cars?

Looking at a few fully loaded factory demo cars with 5k-7k miles on them that are already 23%-25% off MSRP. Given the discount, its harder to determine if the $3k is already in the price or not. Without bringing it up before we agree to a final price, I feel like they will just claim it was always included in their number from the start and we will have to argue all over again.

Should I ask the dealer for a full lease worksheet and purchase scenario and see how they handle and then negotiate from there?

I am almost certain that a discount that large includes the $3K incentive.

Absolutely you should ask for a breakdown of how they arrived at their offering price.

gtindeed

Is net capitalized cost on BMWs typically just (purchase price + dealer fee of $925 - incentive) if you aren't doing a cap cost reduction? Do they usually throw in first months payment or other fees?

Michaell

gtindeed said:

Is net capitalized cost on BMWs typically just (purchase price + dealer fee of $925 - incentive) if you aren't doing a cap cost reduction? Do they usually throw in first months payment or other fees?

You can choose to pay the acquisition fee of $925 at lease inception, if you want.

And, you can choose to use the incentive to offset the other up front costs.

gtindeed

Wanted to thank everyone for all the help and post the deal I signed today to help others get a fair deal.

Vehicle: 2015 328i sedan factory demo
Packages: Technology, Driver Assistance, Premium, Lighting, Sportline plus heated seats
Existing Mileage: 6,013 miles
Term: 36 months
Annual Mileage: 12k miles

March Numbers for my car: 57% residual and .00135 MF (luckily my dealer never tried to play around with these)
March Incentives for my car: $3,000

MSRP: $49,595
Asking Price: $40,595 (incentive already baked in)
Sales Price: $37,122.63 (74.9% of MSRP) (again incentive already baked in)
Residual: $26,879.90 (MSRP * 57% - (Existing Mileage * ~$0.23))

Note: The residual is where I found the dealers tried to play around a bit, but that seems to be only specific to these demo and loaner cars. Another dealer told me they adjust for existing mileage at $0.20 per mile. This place went with ~$0.23 per mile. Another place never could explain to me how they calculated theirs. I lived with the ~$0.23 per mile because I feel like I made up for it elsewhere.

Gross Capitalized Costs: $38,047.63 (Sales Price + Standard Bank Fee of $925)
Capitalized Cost Reduction: $79.85 (This was basically a plug to get my "due at signing" to an even number. Again I lived with it.)
Net Capitalized Costs: $37,967.78 (Gross capitalized costs - capitalized cost reduction)

Depreciation Cost: $11,087.88 (Net Cap Costs - Residual)

Amount Used to Calculate Rent Charge/Interest: $64,847.68 (Net Cap Costs + Residual)
Monthly Security Deposits: $2,800 (Max 7 months of payments, each payment reduces MF by 0.00007)
Adjusted MF: 0.00086 (Base MF of .00135 - 0.00049 Deposit Adjustment) *works out to about a 2.06% interest rate)
Rent Charge / Interest: $2,007.68 ((Net Cap Cost + Residual) * Adjusted MF)

Note: The MSDs seem like a pretty great deal. I ended up saving myself $381.29 a year in interest by only putting up $2,800. Works out to a 13.6% "return" on that money. You get that money back at the end of the lease.

Total Monthly Payments: $14,274.16 (Total "Depreciation Cost" + Total "Rent Charge / Interest")
Monthly Payment: $396.50

Total Due at Signing: $3,800 (Monthly Security Deposits + First Month Payment + Cap Cost Reduction + Taxes & Fees)

Lessons Learned:
1. Do your homework. Know the MF, residual calculation, and your credit score before you start talking numbers. The tone of negotiations is much different if the dealer knows that you know your basics. Don't be completely surprised if some dealers seem a little less interested in your business when they figure out you aren't going to be the easy mark.

2. Control the negotiating process. I chose to do most of my negotiations via email and text. It allowed me to weigh my options, research any questions I had, fact check the numbers, and ultimately talk to 2 dealers at the same time. Not without some problems though. Had some dealers tell me I had to come to the dealer and fill out some paperwork before we could even start to talk a price reduction. Complete BS. Other dealers seemed uninterested in competing in a bidding war with other dealers. Fine with me though. Means I wasn't probably going to get a good deal on that car anyways.

3. Focus on what is most important. If certain options or colors are important to you, prepare to have to work a little harder to get a good deal. If your focus is getting the right financial deal, then be open to some aesthetic choices that may not seem ideal.

4. Seems to be some truth to the end of the month being a good time to go car shopping. The deadline seems to do everyone some good.

kyfdx

@gtindeed That's a really nice job on the lease. Congrats!

klee05

Hi guys,

Do you have April numbers for 2015 328i xDrive, 36mo/15k and 24mo/15k?
And any lease incentives?

Thanks!

kyfdx

klee05 said:

Hi guys,

Do you have April numbers for 2015 328i xDrive, 36mo/15k and 24mo/15k?
And any lease incentives?

Thanks!

.00135 MF and 55%/61% residual. $3000 buildout cash

firm123

Can I please have the current numbers for a 2015 335i sedan 36months/15k.
Thank you.

Michaell

firm123 said:

Can I please have the current numbers for a 2015 335i sedan 36months/15k.
Thank you.

00135 and 53%. $3000 buildout allowance.

shotzy4

Michaell said:

firm123 said:

Can I please have the current numbers for a 2015 335i sedan 36months/15k.
Thank you.

00135 and 53%. $3000 buildout allowance.

Is there any difference for 335i xdrive?

Thanks

kyfdx

shotzy4 said:

Michaell said:

firm123 said:

Can I please have the current numbers for a 2015 335i sedan 36months/15k.
Thank you.

00135 and 53%. $3000 buildout allowance.

Is there any difference for 335i xdrive?

Thanks

Nope

beamerfever

 BMW 2015 mineral grey 328x drive (3712 miles, exec demo), m sport package, cold weather package, driver assist package, lighting package, tech package. Msrp $53,995. Selling Price $41,000. Residual 58% with $620 mileage adjustment is $39697. 36 months 10k miles. Money factor .00135. $2000 total out of pocket

$ a month?

Michaell

beamerfever said:

 BMW 2015 mineral grey 328x drive (3712 miles, exec demo), m sport package, cold weather package, driver assist package, lighting package, tech package. Msrp $53,995. Selling Price $41,000. Residual 58% with $620 mileage adjustment is $39697. 36 months 10k miles. Money factor .00135. $2000 total out of pocket

$ a month?

Somethings not right -- 58% of the MSRP is a little over $31K, then subtract the mileage adjustment.

Not sure where the $39,697 number comes from.

I get $323/mo plus tax.

beamerfever

Michaell said:

 BMW 2015 mineral grey 328x drive (3712 miles, exec demo), m sport package, cold weather package, driver assist package, lighting package, tech package. Msrp $53,995. Selling Price $41,000. Residual 58% with $620 mileage adjustment is $39697. 36 months 10k miles. Money factor .00135. $2000 total out of pocket

$ a month?

Somethings not right -- 58% of the MSRP is a little over $31K, then subtract the mileage adjustment. Not sure where the $39,697 number comes from. I get $323/mo plus tax.

I apologize the number is $30,697. 

$53,995 x .58 = $31,317.10 - $620 = $30,697.10

kyfdx

beamerfever said:

Michaell said:

 BMW 2015 mineral grey 328x drive (3712 miles, exec demo), m sport package, cold weather package, driver assist package, lighting package, tech package. Msrp $53,995. Selling Price $41,000. Residual 58% with $620 mileage adjustment is $39697. 36 months 10k miles. Money factor .00135. $2000 total out of pocket

$ a month?

Somethings not right -- 58% of the MSRP is a little over $31K, then subtract the mileage adjustment.

Not sure where the $39,697 number comes from.

I get $323/mo plus tax.

I apologize the number is $30,697. 

$53,995 x .58 = $31,317.10 - $620 = $30,697.10


If the selling price is the CAP cost, then $383/mo.+tax

palillo24

This last information is the best I've seen so far for a lease on these 2015 left overs. I have a question for you. what is the biggest discount you could get off the MSRP is the vehicle DID NOT have the mileage. brand new. I have a few dealers giving prices way above these numbers.

Michaell

palillo24 said:

This last information is the best I've seen so far for a lease on these 2015 left overs. I have a question for you. what is the biggest discount you could get off the MSRP is the vehicle DID NOT have the mileage. brand new. I have a few dealers giving prices way above these numbers.

We don't track transaction prices - in general, 5-7% off sticker for a new unit is what we suggest as a target. You can read back through the last few pages of posts to see what others have been able to negotiate.

palillo24

I have a few numbers. in one case I'm getting $7,590 off MSRP, but the number I read in the previous lines, seems more promising. They are also inflating the rate to .00165. How does this translate into the payment?

Michaell

palillo24 said:

I have a few numbers. in one case I'm getting $7,590 off MSRP, but the number I read in the previous lines, seems more promising. They are also inflating the rate to .00165. How does this translate into the payment?

Would need to know all the numbers to tell you.

Often, dealers will mark up the MF to offset a bigger price discount from sticker. Remember, dealers are in the business to make money. How much money on any given transaction, is up to you.

palillo24

let's say the payment is @ $400 per month using the inflated rate. How far down does it go if you adjusted from
.00165 to .00135 ......?

Michaell

palillo24 said:

let's say the payment is @ $400 per month using the inflated rate. How far down does it go if you adjusted from
.00165 to .00135 ......?

Let's do it this way .. assume an MSRP of $45,000 and a selling price of $38,000. 36 months, 10,000 miles per year (64% residual).

$366/mo with .00165 MF; $346/mo with .00135 MF

If the prices are different, the gap between the payments will differ as well.

palillo24

So one model I'm looking at is 328xDrive with premium, sport, cold, nav. MSRP @49,700. Discount is and even $8k. What would a $0 out of pocket , true sign and drive lease run with 12k &15k. 

Michaell

palillo24 said:

So one model I'm looking at is 328xDrive with premium, sport, cold, nav. MSRP @49,700. Discount is and even $8k. What would a $0 out of pocket , true sign and drive lease run with 12k &15k. 

.00135 and 55% for 36/15. With your MSRP and a selling price of $41,700, I get $492/mo before tax.

However, I'll need to know the adjusted cap cost if you are rolling everything into the lease.

palillo24

Rolling everything in . Fees upfront are $1900. But rolling them in.

Michaell

palillo24 said:

Rolling everything in . Fees upfront are $1900. But rolling them in.

$1900 / 36 = $53/mo - add that to the payment, before tax. Total $543/mo, plus tax.

palillo24

Ouch! Maybe BMW is not the car for me this time around. Unless I can something like the lad post did. Hi $300's is my mark.

kyfdx

palillo24 said:

Ouch! Maybe BMW is not the car for me this time around. Unless I can something like the lad post did. Hi $300's is my mark.

You should be looking at vehicles with MSRPs below $40K, then

palillo24

Actually got a quote yesterday on a 2015 528i xdrive with 10k miles, a demo. Tell me if I can better it.
$430+tax with $2000 down. 3 year lease. 12k miles per year.
MSRP $50,900
Selling price $43,900

Michaell

palillo24 said:

Actually got a quote yesterday on a 2015 528i xdrive with 10k miles, a demo. Tell me if I can better it.
$430+tax with $2000 down. 3 year lease. 12k miles per year.
MSRP $50,900
Selling price $43,900

.00135 and 58% for 36/10, before the deduction for the mileage. There is $3000 buildout credit on the 2015 5-series, so you're only getting $4000 off sticker. Folks have been able to do better than that on both 2015's and 2016's. Read through the threads to see what others have been able to negotiate.

palillo24

okay. thank you

carperso

gtindeed said:

Wanted to thank everyone for all the help and post the deal I signed today to help others get a fair deal.

Vehicle: 2015 328i sedan factory demo
Packages: Technology, Driver Assistance, Premium, Lighting, Sportline plus heated seats
Existing Mileage: 6,013 miles
Term: 36 months
Annual Mileage: 12k miles

March Numbers for my car: 57% residual and .00135 MF (luckily my dealer never tried to play around with these)
March Incentives for my car: $3,000

MSRP: $49,595
Asking Price: $40,595 (incentive already baked in)
Sales Price: $37,122.63 (74.9% of MSRP) (again incentive already baked in)
Residual: $26,879.90 (MSRP * 57% - (Existing Mileage * ~$0.23))

Note: The residual is where I found the dealers tried to play around a bit, but that seems to be only specific to these demo and loaner cars. Another dealer told me they adjust for existing mileage at $0.20 per mile. This place went with ~$0.23 per mile. Another place never could explain to me how they calculated theirs. I lived with the ~$0.23 per mile because I feel like I made up for it elsewhere.

Gross Capitalized Costs: $38,047.63 (Sales Price + Standard Bank Fee of $925)
Capitalized Cost Reduction: $79.85 (This was basically a plug to get my "due at signing" to an even number. Again I lived with it.)
Net Capitalized Costs: $37,967.78 (Gross capitalized costs - capitalized cost reduction)

Depreciation Cost: $11,087.88 (Net Cap Costs - Residual)

Amount Used to Calculate Rent Charge/Interest: $64,847.68 (Net Cap Costs + Residual)
Monthly Security Deposits: $2,800 (Max 7 months of payments, each payment reduces MF by 0.00007)
Adjusted MF: 0.00086 (Base MF of .00135 - 0.00049 Deposit Adjustment) *works out to about a 2.06% interest rate)
Rent Charge / Interest: $2,007.68 ((Net Cap Cost + Residual) * Adjusted MF)

Note: The MSDs seem like a pretty great deal. I ended up saving myself $381.29 a year in interest by only putting up $2,800. Works out to a 13.6% "return" on that money. You get that money back at the end of the lease.

Total Monthly Payments: $14,274.16 (Total "Depreciation Cost" + Total "Rent Charge / Interest")
Monthly Payment: $396.50

Total Due at Signing: $3,800 (Monthly Security Deposits + First Month Payment + Cap Cost Reduction + Taxes & Fees)

Lessons Learned:
1. Do your homework. Know the MF, residual calculation, and your credit score before you start talking numbers. The tone of negotiations is much different if the dealer knows that you know your basics. Don't be completely surprised if some dealers seem a little less interested in your business when they figure out you aren't going to be the easy mark.

2. Control the negotiating process. I chose to do most of my negotiations via email and text. It allowed me to weigh my options, research any questions I had, fact check the numbers, and ultimately talk to 2 dealers at the same time. Not without some problems though. Had some dealers tell me I had to come to the dealer and fill out some paperwork before we could even start to talk a price reduction. Complete BS. Other dealers seemed uninterested in competing in a bidding war with other dealers. Fine with me though. Means I wasn't probably going to get a good deal on that car anyways.

3. Focus on what is most important. If certain options or colors are important to you, prepare to have to work a little harder to get a good deal. If your focus is getting the right financial deal, then be open to some aesthetic choices that may not seem ideal.

4. Seems to be some truth to the end of the month being a good time to go car shopping. The deadline seems to do everyone some good.

Congrats on your lease and the thorough and informative post. I just have one quick question. Considering there already about 6000 miles on the car, do you return the car at 42000? And do if it is a 15k a year lease, would you be responsible for repairs and warranty if its out of the 4year 50k miles period.

kyfdx

carperso said:

gtindeed said:

Wanted to thank everyone for all the help and post the deal I signed today to help others get a fair deal.

Vehicle: 2015 328i sedan factory demo
Packages: Technology, Driver Assistance, Premium, Lighting, Sportline plus heated seats
Existing Mileage: 6,013 miles
Term: 36 months
Annual Mileage: 12k miles

March Numbers for my car: 57% residual and .00135 MF (luckily my dealer never tried to play around with these)
March Incentives for my car: $3,000

MSRP: $49,595
Asking Price: $40,595 (incentive already baked in)
Sales Price: $37,122.63 (74.9% of MSRP) (again incentive already baked in)
Residual: $26,879.90 (MSRP * 57% - (Existing Mileage * ~$0.23))

Note: The residual is where I found the dealers tried to play around a bit, but that seems to be only specific to these demo and loaner cars. Another dealer told me they adjust for existing mileage at $0.20 per mile. This place went with ~$0.23 per mile. Another place never could explain to me how they calculated theirs. I lived with the ~$0.23 per mile because I feel like I made up for it elsewhere.

Gross Capitalized Costs: $38,047.63 (Sales Price + Standard Bank Fee of $925)
Capitalized Cost Reduction: $79.85 (This was basically a plug to get my "due at signing" to an even number. Again I lived with it.)
Net Capitalized Costs: $37,967.78 (Gross capitalized costs - capitalized cost reduction)

Depreciation Cost: $11,087.88 (Net Cap Costs - Residual)

Amount Used to Calculate Rent Charge/Interest: $64,847.68 (Net Cap Costs + Residual)
Monthly Security Deposits: $2,800 (Max 7 months of payments, each payment reduces MF by 0.00007)
Adjusted MF: 0.00086 (Base MF of .00135 - 0.00049 Deposit Adjustment) *works out to about a 2.06% interest rate)
Rent Charge / Interest: $2,007.68 ((Net Cap Cost + Residual) * Adjusted MF)

Note: The MSDs seem like a pretty great deal. I ended up saving myself $381.29 a year in interest by only putting up $2,800. Works out to a 13.6% "return" on that money. You get that money back at the end of the lease.

Total Monthly Payments: $14,274.16 (Total "Depreciation Cost" + Total "Rent Charge / Interest")
Monthly Payment: $396.50

Total Due at Signing: $3,800 (Monthly Security Deposits + First Month Payment + Cap Cost Reduction + Taxes & Fees)

Lessons Learned:
1. Do your homework. Know the MF, residual calculation, and your credit score before you start talking numbers. The tone of negotiations is much different if the dealer knows that you know your basics. Don't be completely surprised if some dealers seem a little less interested in your business when they figure out you aren't going to be the easy mark.

2. Control the negotiating process. I chose to do most of my negotiations via email and text. It allowed me to weigh my options, research any questions I had, fact check the numbers, and ultimately talk to 2 dealers at the same time. Not without some problems though. Had some dealers tell me I had to come to the dealer and fill out some paperwork before we could even start to talk a price reduction. Complete BS. Other dealers seemed uninterested in competing in a bidding war with other dealers. Fine with me though. Means I wasn't probably going to get a good deal on that car anyways.

3. Focus on what is most important. If certain options or colors are important to you, prepare to have to work a little harder to get a good deal. If your focus is getting the right financial deal, then be open to some aesthetic choices that may not seem ideal.

4. Seems to be some truth to the end of the month being a good time to go car shopping. The deadline seems to do everyone some good.

Congrats on your lease and the thorough and informative post. I just have one quick question. Considering there already about 6000 miles on the car, do you return the car at 42000? And do if it is a 15k a year lease, would you be responsible for repairs and warranty if its out of the 4year 50k miles period.

You get the full lease mileage. So, if you start with 6K miles, then you turn it in at 42K or 51K miles, if it's 36/12 or 36/15.

Most service loaners or demos have the warranty extended. In the past for BMW, it was an extra 3 months and 5K miles. Not sure if that is still the case.

carperso

kyfdx said:

carperso said:

gtindeed said:

Wanted to thank everyone for all the help and post the deal I signed today to help others get a fair deal.

Vehicle: 2015 328i sedan factory demo
Packages: Technology, Driver Assistance, Premium, Lighting, Sportline plus heated seats
Existing Mileage: 6,013 miles
Term: 36 months
Annual Mileage: 12k miles

March Numbers for my car: 57% residual and .00135 MF (luckily my dealer never tried to play around with these)
March Incentives for my car: $3,000

MSRP: $49,595
Asking Price: $40,595 (incentive already baked in)
Sales Price: $37,122.63 (74.9% of MSRP) (again incentive already baked in)
Residual: $26,879.90 (MSRP * 57% - (Existing Mileage * ~$0.23))

Note: The residual is where I found the dealers tried to play around a bit, but that seems to be only specific to these demo and loaner cars. Another dealer told me they adjust for existing mileage at $0.20 per mile. This place went with ~$0.23 per mile. Another place never could explain to me how they calculated theirs. I lived with the ~$0.23 per mile because I feel like I made up for it elsewhere.

Gross Capitalized Costs: $38,047.63 (Sales Price + Standard Bank Fee of $925)
Capitalized Cost Reduction: $79.85 (This was basically a plug to get my "due at signing" to an even number. Again I lived with it.)
Net Capitalized Costs: $37,967.78 (Gross capitalized costs - capitalized cost reduction)

Depreciation Cost: $11,087.88 (Net Cap Costs - Residual)

Amount Used to Calculate Rent Charge/Interest: $64,847.68 (Net Cap Costs + Residual)
Monthly Security Deposits: $2,800 (Max 7 months of payments, each payment reduces MF by 0.00007)
Adjusted MF: 0.00086 (Base MF of .00135 - 0.00049 Deposit Adjustment) *works out to about a 2.06% interest rate)
Rent Charge / Interest: $2,007.68 ((Net Cap Cost + Residual) * Adjusted MF)

Note: The MSDs seem like a pretty great deal. I ended up saving myself $381.29 a year in interest by only putting up $2,800. Works out to a 13.6% "return" on that money. You get that money back at the end of the lease.

Total Monthly Payments: $14,274.16 (Total "Depreciation Cost" + Total "Rent Charge / Interest")
Monthly Payment: $396.50

Total Due at Signing: $3,800 (Monthly Security Deposits + First Month Payment + Cap Cost Reduction + Taxes & Fees)

Lessons Learned:
1. Do your homework. Know the MF, residual calculation, and your credit score before you start talking numbers. The tone of negotiations is much different if the dealer knows that you know your basics. Don't be completely surprised if some dealers seem a little less interested in your business when they figure out you aren't going to be the easy mark.

2. Control the negotiating process. I chose to do most of my negotiations via email and text. It allowed me to weigh my options, research any questions I had, fact check the numbers, and ultimately talk to 2 dealers at the same time. Not without some problems though. Had some dealers tell me I had to come to the dealer and fill out some paperwork before we could even start to talk a price reduction. Complete BS. Other dealers seemed uninterested in competing in a bidding war with other dealers. Fine with me though. Means I wasn't probably going to get a good deal on that car anyways.

3. Focus on what is most important. If certain options or colors are important to you, prepare to have to work a little harder to get a good deal. If your focus is getting the right financial deal, then be open to some aesthetic choices that may not seem ideal.

4. Seems to be some truth to the end of the month being a good time to go car shopping. The deadline seems to do everyone some good.

Congrats on your lease and the thorough and informative post. I just have one quick question. Considering there already about 6000 miles on the car, do you return the car at 42000? And do if it is a 15k a year lease, would you be responsible for repairs and warranty if its out of the 4year 50k miles period.

You get the full lease mileage. So, if you start with 6K miles, then you turn it in at 42K or 51K miles, if it's 36/12 or 36/15.

Most service loaners or demos have the warranty extended. In the past for BMW, it was an extra 3 months and 5K miles. Not sure if that is still the case.

Thanks.

richcar5

do you have mf and residual 24/10k and 36/10k for the basic 320i

Michaell

richcar5 said:

do you have mf and residual 24/10k and 36/10k for the basic 320i

.00135 and 62% / 56%. $3000 buildout allowance.