Received this offer for a 2016 X1 in Northern California-- it was a loaner vehicle, so it has 7k miles on it, but also has Premium and Cold Weather packages and leather interior. I know the down payment is a bit more than you advise, but anything else here jumping out as a concern, or a bad deal?
You are getting 12% off sticker. That is good. However, this is the catch:
since this is a demo car with 7K miles, RV is reduced from 63% to 58.85%. Therefore, you have to pay 4.15% of the sticker. Therefore, in reality go have got only 7.85% discount.
I think you can get more discount on non-demo 2016 models specially in CA.
Received this offer for a 2016 X1 in Northern California-- it was a loaner vehicle, so it has 7k miles on it, but also has Premium and Cold Weather packages and leather interior. I know the down payment is a bit more than you advise, but anything else here jumping out as a concern, or a bad deal?
Thanks so much!!
@spidpooy makes some good points. Your discount on an outgoing model should be 7% + the residual difference between the demo/new car, which is indeed 4.15%. Plus, there is a $2000 incentive on this model. So, MSRP minus 11.15%, minus $2000 = selling price of $35,046. That's $1450 less than their offer. That would drop the payment to about $365/mo. with the same $3000 due at signing.
On the plus side, the rest of the deal looks solid, with no markups or goofy additions. And, if you are only $1450 from your target, you are off to a good start.
With just $750-$800 due at signing, the payment would go up about $72/mo, in either scenario.
Received this offer for a 2016 X1 in Northern California-- it was a loaner vehicle, so it has 7k miles on it, but also has Premium and Cold Weather packages and leather interior. I know the down payment is a bit more than you advise, but anything else here jumping out as a concern, or a bad deal?
Thanks so much!!
@spidpooy makes some good points. Your discount on an outgoing model should be 7% + the residual difference between the demo/new car, which is indeed 4.15%. Plus, there is a $2000 incentive on this model. So, MSRP minus 11.15%, minus $2000 = selling price of $35,046. That's $1450 less than their offer. That would drop the payment to about $365/mo. with the same $3000 due at signing.
On the plus side, the rest of the deal looks solid, with no markups or goofy additions. And, if you are only $1450 from your target, you are off to a good start.
With just $750-$800 due at signing, the payment would go up about $72/mo, in either scenario.
Thank you both @spidpooy and @kyfdx!! With your advice, I got them down to a cap cost of $34,800, very happy with the deal.
Received this offer for a 2016 X1 in Northern California-- it was a loaner vehicle, so it has 7k miles on it, but also has Premium and Cold Weather packages and leather interior. I know the down payment is a bit more than you advise, but anything else here jumping out as a concern, or a bad deal?
Thanks so much!!
@spidpooy makes some good points. Your discount on an outgoing model should be 7% + the residual difference between the demo/new car, which is indeed 4.15%. Plus, there is a $2000 incentive on this model. So, MSRP minus 11.15%, minus $2000 = selling price of $35,046. That's $1450 less than their offer. That would drop the payment to about $365/mo. with the same $3000 due at signing.
On the plus side, the rest of the deal looks solid, with no markups or goofy additions. And, if you are only $1450 from your target, you are off to a good start.
With just $750-$800 due at signing, the payment would go up about $72/mo, in either scenario.
Thank you both @spidpooy and @kyfdx!! With your advice, I got them down to a cap cost of $34,800, very happy with the deal.
Would somebody be able to tell me if the Residuals are the same for both BMW Leases as well as BMW Select Financing or do they have a unique value for each type of financing they offer?
Would somebody be able to tell me if the Residuals are the same for both BMW Leases as well as BMW Select Financing or do they have a unique value for each type of financing they offer?
No, they are different. Lease rates are higher.
For the X1, the MF is .00136 (3.26%), while the select financing shows .9% for 24-60 month terms.
Hi there. I'm in Seattle (tax 9.9%) and got the following quote from the dealer (see picture). I spent hours trying to run the calculations myself but can't seem to match the numbers. Res are 63%, 66%, 69%. Originally, the dealer offered a $2,900 discount off MSRP, but when they found out I had a $1,000 corporate discount, they revised the discount to $3,000. I'm thinking maybe the corporate discount should be added on top of the original discount for $3,900 total? Also the MF is .00176 - .0002 (corporate discount) - 0.00049 (7 MSDs). Should I ask for a MF of .00136 before discounts? Any other areas that could be improved? Thanks in advance!!!
Hi there. I'm in Seattle (tax 9.9%) and got the following quote from the dealer (see picture). I spent hours trying to run the calculations myself but can't seem to match the numbers. Res are 63%, 66%, 69%. Originally, the dealer offered a $2,900 discount off MSRP, but when they found out I had a $1,000 corporate discount, they revised the discount to $3,000. I'm thinking maybe the corporate discount should be added on top of the original discount for $3,900 total? Also the MF is .00176 - .0002 (corporate discount) - 0.00049 (7 MSDs). Should I ask for a MF of .00136 before discounts? Any other areas that could be improved? Thanks in advance!!!
The quote is incomplete. No mention of the $925 acquisition fee. But, here are the issues. 1) There is a $2000 customer incentive on this vehicle, plus you have $1000 corporate discount, yet they are only giving you $3000 off? It's possible those are deducted from the CAP cost, but we don't know, because none of the quotes give the adjusted CAP cost. If not, you are paying full MSRP. 2) Maximum money factor markup. You want .00134 minus .00020 minus .00049 for .00065 MF. (How old is this quote? .00136 was last month).
You need full disclosure. Get the adjusted CAP cost, and an accounting for how they arrived at that figure. Ask for the base money factor. Keep it simple, and just ask for the 36 month numbers, because the other two terms just aren't worth the difference.
I received this rate on 10/31. They said the $925 acquisition fee is rolled into the monthly payments. I asked about the discount and they agreed to take off the $1000 after the initial $2900 with a total being $3900. However, they said they could not adjust the MF. I keep asking for an adjusted CAP cost but they aren't giving it to me.
I received this rate on 10/31. They said the $925 acquisition fee is rolled into the monthly payments. I asked about the discount and they agreed to take off the $1000 after the initial $2900 with a total being $3900. However, they said they could not adjust the MF. I keep asking for an adjusted CAP cost but they aren't giving it to me.
If the dealer isn't being transparent, it might be time to start working with another dealer.
May I please have the residual and MF for 36/10 on a 2016 xDrive28i?
Dealer is quoting $456.54/month with $1,708.08 due at signing or $424.57 with 7 MSD's added ($4,826.11 due at signing). $38,600 MSRP (cold weather plus premium package), $39,595 after $995 destination charge, though he says they'll knock $3k off it since it's last year's model.
May I please have the residual and MF for 36/10 on a 2016 xDrive28i?
Dealer is quoting $456.54/month with $1,708.08 due at signing or $424.57 with 7 MSD's added ($4,826.11 due at signing). $38,600 MSRP (cold weather plus premium package), $39,595 after $995 destination charge, though he says they'll knock $3k off it since it's last year's model.
Thanks in advance for answering the first line, any additional comments on the rest would be greatly appreciated but not expected.
.00134 MF and 63% residual. $2000 option allowance. $3000 off doesn't seem like much, unless you get the $2000 on top of it. Ask them for the money factor. It's possible they are marking it up, before discounting for the MSDs. Also, ask for an accounting of the $1708.08, and the adjusted CAP cost on that deal.
Money factor is .00125 AFTER seven MSDs at .0007 apiece. So initial MF was .00615? So, about 4.59 times higher than the .00134 you stated, if basic arithmetic serves me correctly (all the zeroes make my head hurt). Discount was $2k from BMW, $1k from the dealership.
I could probably haggle back and forth with this dealer to get to a more sane price, but I think we'll pass instead. My wife is eligible for A-plan through a relative, and the current pricing on the 2017 MKC is very tempting.
Money factor is .00125 AFTER seven MSDs at .0007 apiece. So initial MF was .00615? So, about 4.59 times higher than the .00134 you stated, if basic arithmetic serves me correctly (all the zeroes make my head hurt). Discount was $2k from BMW, $1k from the dealership.
I could probably haggle back and forth with this dealer to get to a more sane price, but I think we'll pass instead. My wife is eligible for A-plan through a relative, and the current pricing on the 2017 MKC is very tempting.
Thanks very much for your help!
No, the pre-MSD MF would have been .00174, which represents the max markup allowed. (7 MSD @ .00007 discount = .00049 total). Four zeroes before the 7, not three.
Yes, I will agree that a 5 decimal place number can get confusing.
Oh, ok. I pasted the email reply below clearly showing three zeroes, but maybe he got confused too. Glad to hear I wasn't being taken as a complete sucker if I was mistaken.
(dealer) After. .0007
(me) Is that .00125 before or after MSDs and how much does each MSD lower the MF by?
Oh, ok. I pasted the email reply below clearly showing three zeroes, but maybe he got confused too. Glad to hear I wasn't being taken as a complete sucker if I was mistaken.
(dealer) After. .0007
(me) Is that .00125 before or after MSDs and how much does each MSD lower the MF by?
.00125 after MSD discount, .00174 before discount.
What is the current mf and residuals for the 2016 x drive and sdrive x1 in San Diego, CA for 36/10 and 36/12? What are the current incentives as well? I see that BMW USA is showing $299 leases for the x1 on their website, are any of these good deals?
What is the current mf and residuals for the 2016 x drive and sdrive x1 in San Diego, CA for 36/10 and 36/12? What are the current incentives as well? I see that BMW USA is showing $299 leases for the x1 on their website, are any of these good deals?
.00134 and 63% / 62%. $2000 option allowance.
The $299 deal requires money down, which we advise against.
NY - Can you please provide the MF & residual on a 2017 X1 sDrive28i... 36months 10k per year.. is there a difference for the residual / MF on x drives?
NY - Can you please provide the MF & residual on a 2017 X1 sDrive28i... 36months 10k per year.. is there a difference for the residual / MF on x drives?
in NC. 16 x1 sticker 45545 any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500? right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr i would like 15k yr potentially What should I be going for here?
in NC. 16 x1 sticker 45545 any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500? right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr i would like 15k yr potentially What should I be going for here?
.00134 MF and 60% residual for 36/15. $2000 option allowance. Their price looks about right. Invoice minus the $2000. But, money factor is marked up.
in NC. 16 x1 sticker 45545 any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500? right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr i would like 15k yr potentially What should I be going for here?
.00134 MF and 60% residual for 36/15. $2000 option allowance. Their price looks about right. Invoice minus the $2000. But, money factor is marked up.
Thank you for your response. I don't understand option allowance. are you saying he already has the option allowance in there and I just need to get him to change it over to .00134 60% and 36/15? Sales price is correct at 40281. In other words to break it out like this: DOES THIS LOOK CORRECT? MSRP 45545 SELLING PRICE: 40281 OR SHOULD THIS BE 38281? FEES 1733 REBATES 500 36/15 RESIDUAL 28237 MF: .00134 NC SALES TAX 3% TRADE IN 26000 TRADE IN PAYOFF 28138 NO MSD
in NC. 16 x1 sticker 45545 any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500? right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr i would like 15k yr potentially What should I be going for here?
.00134 MF and 60% residual for 36/15. $2000 option allowance. Their price looks about right. Invoice minus the $2000. But, money factor is marked up.
Thank you for your response. I don't understand option allowance. are you saying he already has the option allowance in there and I just need to get him to change it over to .00134 60% and 36/15? Sales price is correct at 40281. In other words to break it out like this: DOES THIS LOOK CORRECT? MSRP 45545 SELLING PRICE: 40281 OR SHOULD THIS BE 38281? FEES 1733 REBATES 500 36/15 RESIDUAL 28237 MF: .00134 NC SALES TAX 3% TRADE IN 26000 TRADE IN PAYOFF 28138 NO MSD
Option allowance is a customer incentive. Looks like they've already included it in their offer. They have marked up the money factor for extra profit.
in NC. 16 x1 sticker 45545 any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500? right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr i would like 15k yr potentially What should I be going for here?
.00134 MF and 60% residual for 36/15. $2000 option allowance. Their price looks about right. Invoice minus the $2000. But, money factor is marked up.
Thank you for your response. I don't understand option allowance. are you saying he already has the option allowance in there and I just need to get him to change it over to .00134 60% and 36/15? Sales price is correct at 40281. In other words to break it out like this: DOES THIS LOOK CORRECT? MSRP 45545 SELLING PRICE: 40281 OR SHOULD THIS BE 38281? FEES 1733 REBATES 500 36/15 RESIDUAL 28237 MF: .00134 NC SALES TAX 3% TRADE IN 26000 TRADE IN PAYOFF 28138 NO MSD
Option allowance is a customer incentive. Looks like they've already included it in their offer. They have marked up the money factor for extra profit.
KYFDX, Thank you so much for your assistance. My wife now has a beautiful x1 in the driveway.
in NC. 16 x1 sticker 45545 any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500? right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr i would like 15k yr potentially What should I be going for here?
.00134 MF and 60% residual for 36/15. $2000 option allowance. Their price looks about right. Invoice minus the $2000. But, money factor is marked up.
Thank you for your response. I don't understand option allowance. are you saying he already has the option allowance in there and I just need to get him to change it over to .00134 60% and 36/15? Sales price is correct at 40281. In other words to break it out like this: DOES THIS LOOK CORRECT? MSRP 45545 SELLING PRICE: 40281 OR SHOULD THIS BE 38281? FEES 1733 REBATES 500 36/15 RESIDUAL 28237 MF: .00134 NC SALES TAX 3% TRADE IN 26000 TRADE IN PAYOFF 28138 NO MSD
Option allowance is a customer incentive. Looks like they've already included it in their offer. They have marked up the money factor for extra profit.
KYFDX, Thank you so much for your assistance. My wife now has a beautiful x1 in the driveway.
Hello Edmunds community! Thank you for all the support and great info on this site. I'm about to close on a 2016 x1 xdrive and want to verify that everything is good to go....
MSRP:$46,095 Selling price: $42,133 (includes incentives) MF: 0.00134 with seven MSD payments to bring it down to 0.00092 (still marked up?) RV: 63% NM tax: 5.125% Monthly payment: $478/mo
Also $3493.60 upfront, $3K for MSD and first mos payment.
I calculate the monthly payment to be $451.17 from these numbers, and can't seem to get them to let me know where the additional $27 is coming from....
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
Congrats - excellent deal!
And, thanks for the info on the residual calculation for loaners and demos.
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
I think maybe you have the residual reduction wrong by a little bit.
Once you reduce the residual by 4% for 5000-7500 miles, then the additional $0.25 reduction starts at 5000 miles, not at 500 miles.
Otherwise, on your vehicle: 4999 miles = $1124.75 reduction 5600 miles = $1823 (4%) + $1275 (5100 X 0.25)
So, for 601 miles, the difference would be almost $2000 residual difference.
If you do a 36/10k lease, can you have uneven mileage use, like 20k the first year, 7k the second year and 3k the third year?
They don't check the odometer every year right, just when you return the car?
That is correct.
It's the cumulative mileage that matters when you turn the car in.
For example, on my leased Jetta, I'm running at about 50% of my allowance. At the end of three years, I'll have about 18,000 miles on my car instead of the 36,000 I'm allowed.
Which means I can tour North American in the last few months of my lease and still be under the total allowance.
Thanks and what are the general terms about the condition of the car, particularly the interiors when you turn it in?
Would I have to worry about detailing it so the seats and dash look clean, carpets are clean, etc.?
I'm not talking about cuts or gouges to the upholstery, just the wear and tear, even if say you go to the beach and get salt water residue, sunscreen cream, etc. on the seats, maybe some sand in the carpets and so on.
Thanks and what are the general terms about the condition of the car, particularly the interiors when you turn it in?
Would I have to worry about detailing it so the seats and dash look clean, carpets are clean, etc.?
I'm not talking about cuts or gouges to the upholstery, just the wear and tear, even if say you go to the beach and get salt water residue, sunscreen cream, etc. on the seats, maybe some sand in the carpets and so on.
A good cleaning should be sufficient. I've never had wear damage charges assessed on any of my leased cars.
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
I think maybe you have the residual reduction wrong by a little bit.
Once you reduce the residual by 4% for 5000-7500 miles, then the additional $0.25 reduction starts at 5000 miles, not at 500 miles.
Otherwise, on your vehicle: 4999 miles = $1124.75 reduction 5600 miles = $1823 (4%) + $1275 (5100 X 0.25)
So, for 601 miles, the difference would be almost $2000 residual difference.
That doesn't seem right.
That is right. So in my case, the base residual would have been 63% or 28724.85. However because of the mileage bracket, the base residual was dropped to 59% or 26901.05. Then it was adjusted down a further $1286 for the mileage over 500 miles. The net residual is $25613.XX.
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
I think maybe you have the residual reduction wrong by a little bit.
Once you reduce the residual by 4% for 5000-7500 miles, then the additional $0.25 reduction starts at 5000 miles, not at 500 miles.
Otherwise, on your vehicle: 4999 miles = $1124.75 reduction 5600 miles = $1823 (4%) + $1275 (5100 X 0.25)
So, for 601 miles, the difference would be almost $2000 residual difference.
That doesn't seem right.
That is right. So in my case, the base residual would have been 63% or 28724.85. However because of the mileage bracket, the base residual was dropped to 59% or 26901.05. Then it was adjusted down a further $1286 for the mileage over 500 miles. The net residual is $25613.XX.
Basically they're now double dipping.
Wow ... trying to make up for the ginormous discounts from sticker folks are getting.
Can't say that I blame them. You still ended up with a fantastic payment, relative to MSRP.
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
I think maybe you have the residual reduction wrong by a little bit.
Once you reduce the residual by 4% for 5000-7500 miles, then the additional $0.25 reduction starts at 5000 miles, not at 500 miles.
Otherwise, on your vehicle: 4999 miles = $1124.75 reduction 5600 miles = $1823 (4%) + $1275 (5100 X 0.25)
So, for 601 miles, the difference would be almost $2000 residual difference.
That doesn't seem right.
That is right. So in my case, the base residual would have been 63% or 28724.85. However because of the mileage bracket, the base residual was dropped to 59% or 26901.05. Then it was adjusted down a further $1286 for the mileage over 500 miles. The net residual is $25613.XX.
Basically they're now double dipping.
Unless they got it wrong, and your lease gets kicked back, with a lower payment.
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this: 0 miles - 4,999: Base residual less $.25 a mile for each mile over 500. 5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500. 7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500. 10,000+: Defined residual
Here is our deal: 2016 BMW X1 xDrive 28i MSRP: 45,595 Sale Price: $34,500 (after $2000 option credit) Acquisition Fee: $925 Adjusted Cap Cost: $35,425
36 months/10k miles MF: .00085 (Base MF of .00134 reduced by 7 security deposits) Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318 Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
I think maybe you have the residual reduction wrong by a little bit.
Once you reduce the residual by 4% for 5000-7500 miles, then the additional $0.25 reduction starts at 5000 miles, not at 500 miles.
Otherwise, on your vehicle: 4999 miles = $1124.75 reduction 5600 miles = $1823 (4%) + $1275 (5100 X 0.25)
So, for 601 miles, the difference would be almost $2000 residual difference.
That doesn't seem right.
That is right. So in my case, the base residual would have been 63% or 28724.85. However because of the mileage bracket, the base residual was dropped to 59% or 26901.05. Then it was adjusted down a further $1286 for the mileage over 500 miles. The net residual is $25613.XX.
Basically they're now double dipping.
Unless they got it wrong, and your lease gets kicked back, with a lower payment.
Comments
Thanks so much!!
since this is a demo car with 7K miles, RV is reduced from 63% to 58.85%. Therefore, you have to pay 4.15% of the sticker. Therefore, in reality go have got only 7.85% discount.
I think you can get more discount on non-demo 2016 models specially in CA.
Hope it helps.
Your discount on an outgoing model should be 7% + the residual difference between the demo/new car, which is indeed 4.15%. Plus, there is a $2000 incentive on this model. So, MSRP minus 11.15%, minus $2000 = selling price of $35,046. That's $1450 less than their offer.
That would drop the payment to about $365/mo. with the same $3000 due at signing.
On the plus side, the rest of the deal looks solid, with no markups or goofy additions.
And, if you are only $1450 from your target, you are off to a good start.
With just $750-$800 due at signing, the payment would go up about $72/mo, in either scenario.
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Thanks again!!!
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For the X1, the MF is .00136 (3.26%), while the select financing shows .9% for 24-60 month terms.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
But, here are the issues.
1) There is a $2000 customer incentive on this vehicle, plus you have $1000 corporate discount, yet they are only giving you $3000 off? It's possible those are deducted from the CAP cost, but we don't know, because none of the quotes give the adjusted CAP cost. If not, you are paying full MSRP.
2) Maximum money factor markup. You want .00134 minus .00020 minus .00049 for .00065 MF.
(How old is this quote? .00136 was last month).
You need full disclosure. Get the adjusted CAP cost, and an accounting for how they arrived at that figure. Ask for the base money factor. Keep it simple, and just ask for the 36 month numbers, because the other two terms just aren't worth the difference.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Dealer is quoting $456.54/month with $1,708.08 due at signing or $424.57 with 7 MSD's added ($4,826.11 due at signing). $38,600 MSRP (cold weather plus premium package), $39,595 after $995 destination charge, though he says they'll knock $3k off it since it's last year's model.
Just trying to decipher all these numbers since at face value it seems like a lot more than the current advertised offer.
http://www.bmwusa.com/special-offers/lease.2016-X1-xDrive28i.html
Thanks in advance for answering the first line, any additional comments on the rest would be greatly appreciated but not expected.
$2000 option allowance.
$3000 off doesn't seem like much, unless you get the $2000 on top of it.
Ask them for the money factor. It's possible they are marking it up, before discounting for the MSDs.
Also, ask for an accounting of the $1708.08, and the adjusted CAP cost on that deal.
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I could probably haggle back and forth with this dealer to get to a more sane price, but I think we'll pass instead. My wife is eligible for A-plan through a relative, and the current pricing on the 2017 MKC is very tempting.
Thanks very much for your help!
Yes, I will agree that a 5 decimal place number can get confusing.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
(dealer) After. .0007
(me) Is that .00125 before or after MSDs and how much does each MSD lower the MF by?
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
The $299 deal requires money down, which we advise against.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Thank you!
https://forums.edmunds.com/discussion/42131/bmw/x1/2017-bmw-x1-lease-questions#latest
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
any assistance on where i should be for residual, MF, and selling price this late in the year? Also any incentives they should be offering me other than loyalty $500?
right now he is showing me selling price 40281, .00154, and 28237 residual 36mth 12k yr
i would like 15k yr potentially
What should I be going for here?
$2000 option allowance.
Their price looks about right. Invoice minus the $2000.
But, money factor is marked up.
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In other words to break it out like this: DOES THIS LOOK CORRECT?
MSRP 45545
SELLING PRICE: 40281 OR SHOULD THIS BE 38281?
FEES 1733
REBATES 500
36/15
RESIDUAL 28237
MF: .00134
NC SALES TAX 3%
TRADE IN 26000
TRADE IN PAYOFF 28138
NO MSD
They have marked up the money factor for extra profit.
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MSRP:$46,095
Selling price: $42,133 (includes incentives)
MF: 0.00134 with seven MSD payments to bring it down to 0.00092 (still marked up?)
RV: 63%
NM tax: 5.125%
Monthly payment: $478/mo
Is this correct?
I calculate the monthly payment to be $451.17 from these numbers, and can't seem to get them to let me know where the additional $27 is coming from....
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
$2000 option allowance
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Just want to add a data point for our new 2016 X1. It was a BMW service loaner with ~5500 miles that was CPOed but eligible for adjusted new car rates.
First thing to know is that with dealer loaners and demos now, BMW has adjusted the residual calculation. It now looks like this:
0 miles - 4,999: Base residual less $.25 a mile for each mile over 500.
5,000 - 7,499: Base residual less 4% less $.25 a mile for each mile over 500.
7,500-9,999: Base residual less 6% less $.25 a mile for each mile over 500.
10,000+: Defined residual
Here is our deal:
2016 BMW X1 xDrive 28i
MSRP: 45,595
Sale Price: $34,500 (after $2000 option credit)
Acquisition Fee: $925
Adjusted Cap Cost: $35,425
36 months/10k miles
MF: .00085 (Base MF of .00134 reduced by 7 security deposits)
Residual: ~56% (Base residual of 63% reduced to 59% and then reduced by $1283 for mileage)
Monthly Pre-Tax: $318
Due at Signing: $2450 MSDs, First Month, Tags, Doc Fee
This was from a dealer in the Portland, OR area but they delivered it to me in Seattle.
And, thanks for the info on the residual calculation for loaners and demos.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Once you reduce the residual by 4% for 5000-7500 miles, then the additional $0.25 reduction starts at 5000 miles, not at 500 miles.
Otherwise, on your vehicle:
4999 miles = $1124.75 reduction
5600 miles = $1823 (4%) + $1275 (5100 X 0.25)
So, for 601 miles, the difference would be almost $2000 residual difference.
That doesn't seem right.
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They don't check the odometer every year right, just when you return the car?
It's the cumulative mileage that matters when you turn the car in.
For example, on my leased Jetta, I'm running at about 50% of my allowance. At the end of three years, I'll have about 18,000 miles on my car instead of the 36,000 I'm allowed.
Which means I can tour North American in the last few months of my lease and still be under the total allowance.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Would I have to worry about detailing it so the seats and dash look clean, carpets are clean, etc.?
I'm not talking about cuts or gouges to the upholstery, just the wear and tear, even if say you go to the beach and get salt water residue, sunscreen cream, etc. on the seats, maybe some sand in the carpets and so on.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Basically they're now double dipping.
Can't say that I blame them. You still ended up with a fantastic payment, relative to MSRP.
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