2017 BMW i3 Lease Deals and Prices

petarjake

This board has been very helpful for this 1st time leasor...based on your advice, I asked specific questions of my local BMW dealer here in SoCal and here is what he came back with on a 2017 REX with technology and.pkg assist package along with H/K audio. I still have a $1.5K corporate credit and .0002 that would drive my MF down to .00065. Let me know if this is a good deal. Here is what he sent back (if the image upload works...):

Michaell

petarjake said:

This board has been very helpful for this 1st time leasor...based on your advice, I asked specific questions of my local BMW dealer here in SoCal and here is what he came back with on a 2017 REX with technology and.pkg assist package along with H/K audio. I still have a $1.5K corporate credit and .0002 that would drive my MF down to .00065. Let me know if this is a good deal. Here is what he sent back (if the image upload works...):

I get the same payment, with those numbers.

petarjake

Is the initial cap cost the price they are willing to sell the car to me? If so, that's only a 5.7% reduction from MSRP. It seems like he still has a little room to go further. I then have the $1.5K corporate credit and the additional .0002 on the MF. I'm a little too confused to calc the monthly payment after all that.

Michaell

petarjake said:

Is the initial cap cost the price they are willing to sell the car to me? If so, that's only a 5.7% reduction from MSRP. It seems like he still has a little room to go further. I then have the $1.5K corporate credit and the additional .0002 on the MF. I'm a little too confused to calc the monthly payment after all that.

Yes, I think you can get them to come down on the selling price another $500-750, to get to 7% off sticker.

[Deleted User]

Hello! Really good information on these forums.

Can you guys please give me the MF and Residual on a 36/15k term for 2017 i3 Rex? Also, a couple of dealers I visited in SF Bay Area CA tell me that i3 is pretty hot these days and that I shouldn't expect much discount. Is it going to be fruitful to try to get 7% off the MSRP with these guys?

Thanks!

kyfdx

sumitkgarg said:

Hello! Really good information on these forums.

Can you guys please give me the MF and Residual on a 36/15k term for 2017 i3 Rex? Also, a couple of dealers I visited in SF Bay Area CA tell me that i3 is pretty hot these days and that I shouldn't expect much discount. Is it going to be fruitful to try to get 7% off the MSRP with these guys?

Thanks!

.00134 MF and 55% residual. $7500 lease credit.

Ignore what salespeople say about price.

[Deleted User]

Thank you! Is the .00134 MF the lowest they will go? My dealer is asking for .00175 btw.

Michaell

sumitkgarg said:

Thank you! Is the .00134 MF the lowest they will go? My dealer is asking for .00175 btw.

.00134 is the base rate for top tier credit.

lsp2012

Dealers can mark up the MF; this is one way they try to make an extra profit on any transaction. I walked away from one dealer when they wouldn't reduce their marked up MF. I found another who didn't mark it up from the outset of discussions. Much more above-board dealership, they got my business.

You can do MSD's to buy down the rate; this is very worthwhile from an economic perspective.

jtlau1

Anybody ever work with an auto broker?

I'm looking to get a 2017 94Ah REX with 36 mo/10K year

This is what they're offering for one with MSRP $53,295. (Black, Deka pkg, Tech pkg, Parking pkg, H/K speakers).
$2500 drive off (which I would get back as a rebate from California) - so basically $0.
$433 mo including taxes.

I'm waiting to hear what their final sale price, RV and MF are. I'm pretty sure the latter are the same (58% and 0.00134).

kyfdx

jtlau1 said:

Anybody ever work with an auto broker?

I'm looking to get a 2017 94Ah REX with 36 mo/10K year

This is what they're offering for one with MSRP $53,295. (Black, Deka pkg, Tech pkg, Parking pkg, H/K speakers).
$2500 drive off (which I would get back as a rebate from California) - so basically $0.
$433 mo including taxes.

I'm waiting to hear what their final sale price, RV and MF are. I'm pretty sure the latter are the same (58% and 0.00134).

Not sure what value a broker adds to your deal. With all of the competition between BMW dealers in CA, seems like it would be easy to get a good deal.

lsp2012

I called and spoke with a broker when I was shopping. The deal they offered me was far less attractive than I was able to negotiate on my own.

That deal doesn't look too good to me. Whether or not California is giving you money back is a separate issue from how much you have to pay up front. The $2500 drive off doesn't seem so great unless it includes MSDs. If it is just fees, down payment, and first month, you effective price/month is $433 + $2067/36 = $490/month.

For reference, on a $51.5k i3, I got $358/month (including sales tax), with $3528 drive off ($2800 refundable MSD's, first month, and $370 title/other fees). Note that I don't pay sales tax on the $7500 federal credit, and monthly sales tax is only on the lease amount, not the total 'sales' price, so that may differ state to state. Still, at first blush, that deal doesn't look good to me.

jtlau1

The broker got back to me. Sale price is $49265. MF is .00134. RV is $30911 - which seems high for a 36/10. The drive off $2500 does not include any MSDs. If I did 7 MSDs, based off reduction of 0.00049, that would save me about $68/month. But you're right, this does not sound like the greatest deal after all.

Thankfully in California, I will not have to pay sales tax upfront, only with monthly payments. I imagine title and other fees (i.e. acquisition) will amount to several hundred dollars if not up to $1K.

Could somebody explain to me how it works with negotiating final sale price. I just got told if I were to purchase, the sale price would be marked down $8K from MSRP. But if I lease, it would only be $5K. The only thing I know that would make a difference is my USAA discount, but that's only $500 for lease vs $1000 for purchase.

Clearly I don't have a long track record of vehicle purchasing/leasing, so advice/input is appreciated.

lsp2012

It seems to me that the BMW MSD's are a must-do -- they pay an effective after-tax interest rate of 15%, which depending on your tax bracket can equate to a 25% pre-tax interest rate. Nowhere else you can get that on a guaranteed basis, that's for sure.

My other big questions here is: what is the upfront money paying for? The dealers usually add the lease acquisition fee ($925) into the capitalized lease expense. So, aside from the first month's payment, what is in the $2500 up front? A broker fee? Could be sales tax on the $7500 federal rebate (some states do tax this), but that is still likely to be south of $750. So, important to really push on this for clarity.

I think you should shoot for 10% off MSRP. Then, the MF must not be marked up. Then, discuss the fees/expenses the dealer is trying to charge you. Finally, mention that you would like to do the MSD's.

Also, there is a USAA discount available if you are a USAA customer, and also there are fleet discounts available depending on your employer.

I think the i3 is a good deal -- BMW is going to get hammered on these leases at lease end. The residuals are really high, since they are based on the MSRP before federal rebate, and BMW isn't subsidizing the residual by taking part of that federal rebate (unlike, for example, GM, which is marking up the Bolt residual by not passing on all of the $7500 to the customer). There is no way in the world that the i3's are only going to lose $10k of value over the next 3 years. BMW's loss is your gain!

For reference, I looked at a 2015 with only something like 5,000 miles at a BMW dealership; it had the BMW extended warranty, I was offered an inflated trade-in on my car, the car's MSRP had been something like $55k, and they would sell it to me for less than $26k before the inflated trade, making it more like $25k on a fair valuation of my car. The i3 had been titled only 12 months previous. So, that car had lost $30k in a year ($22.5k if you net out the federal rebate). Even granting that price was a great deal, I concluded that leasing a new '17 i3 would probably work out cheaper, and of course has a longer-range battery, is a brand new car, etc. I figured, in 3 years, the used i3 would probably lose at least $13k in value, it could lose a lot more in value than that, I'd have the hassle of reselling it (with a warranty with only 1 year left on it), I'd have my $25k of cash tied up in the car during the 3 year period, and I'd be paying sales tax on the full $25k transaction (versus only on depreciation/interest with a lease). So, if a new car is a better deal than a heavily discounted year old model, wow, that's saying something!

jtlau1

Just stopped by another dealership so the wife could test drive it. She's sold on it over the Volt!

I asked them to quote me what sale price was and I was pleasantly surprised...

MSRP - $53,295. Sale price $47,795. MF 0.00134. RV 58%
Drive off - $1050 (1st month payment, documentation fee, licensing)
Monthly without MSD $428.59. Max out MSD monthly would be about $386.

Hot damn that's way better than what the broker offered.

kyfdx

jtlau1 said:

Just stopped by another dealership so the wife could test drive it. She's sold on it over the Volt!

I asked them to quote me what sale price was and I was pleasantly surprised...

MSRP - $53,295. Sale price $47,795. MF 0.00134. RV 58%
Drive off - $1050 (1st month payment, documentation fee, licensing)
Monthly without MSD $428.59. Max out MSD monthly would be about $386.

Hot damn that's way better than what the broker offered.

See? Just took a little shopping.

Upfront numbers that are rounded off (like $2500) usually involve some CAP cost reduction, and are just there to make the payment lower and obscure the true monthly cost.

MSDs are indeed a good deal.

whynot11

Hi team - are there March numbers out yet? What promotions / incentives are in place in CA?

I'm looking at BEV 30 months / 10k miles or 36 months / 10k miles. Any difference for the 60ah vs. the 94ah or would that just drive lower MSRP?

Thanks in advance.

Michaell

whynot11 said:

Hi team - are there March numbers out yet? What promotions / incentives are in place in CA?

I'm looking at BEV 30 months / 10k miles or 36 months / 10k miles. Any difference for the 60ah vs. the 94ah or would that just drive lower MSRP?

Thanks in advance.

I have limited information on the i3, at this point

.00140 and 58% for 36/10 - both models.

$7500 lease credit.

petarjake

Hi Michaell. Can you let me know if this is the right deal for my (hopefully) next i3 REX on a 36/15K with an MSRP of $52,495:
Initial Cap Cost - $46,850 (after negotiating down and $1,500 corp fleet credit)
Total CAP reduction - $7,514.81
RV - $28,872.25 (55%)
Adjusted CAP Cost - $40,340.19
MF - .00065 (after 7 MSDs and .0002 MF reduction for corp fleet deal)
Rebate - $7,500
Lic Fee - $25
Doc fee - $80
Acq Fee - $1,005
MSDs - $2,800
Drive off (down at signing) - $3,842.92
Sales tax - 7.75%
Base monthly rental - $363.54
Tax - $28.17
Monthly payment - $391.71
Smokin deal / Great deal / Good deal / Bad deal?

Your help to get an understanding of this for a fist timer was invaluable. Cut right to the chase with the dealer.

Michaell

petarjake said:

Hi Michaell. Can you let me know if this is the right deal for my (hopefully) next i3 REX on a 36/15K with an MSRP of $52,495:
Initial Cap Cost - $46,850 (after negotiating down and $1,500 corp fleet credit)
Total CAP reduction - $7,514.81
RV - $28,872.25 (55%)
Adjusted CAP Cost - $40,340.19
MF - .00065 (after 7 MSDs and .0002 MF reduction for corp fleet deal)
Rebate - $7,500
Lic Fee - $25
Doc fee - $80
Acq Fee - $1,005
MSDs - $2,800
Drive off (down at signing) - $3,842.92
Sales tax - 7.75%
Base monthly rental - $363.54
Tax - $28.17
Monthly payment - $391.71
Smokin deal / Great deal / Good deal / Bad deal?

Your help to get an understanding of this for a fist timer was invaluable. Cut right to the chase with the dealer.

I get the same payment, to the penny.

Base MF and almost 11% off sticker - I'd say that is a pretty good deal.

gabb

if I got 11% off msrp I'd got it today. Have not seen anything close in the past month or so around. (sfbay)

petarjake

Michaell / gabb - Thanks for your input! The only thing going on now is a recall has halted sales of i3 REXs here in SoCal for the past two weeks. Ugh.

hennegan

I need some help understanding the Tax Credits in California. I have talked wth 3 different people and have heard 3 different things. One told me to take 10k off the price right out of the gate, another told me that it goes to my taxes (if i owed 7k in taxes, the 7500 would cover it, but i would not get a refund of the remaining difference) and after that I would have to apply for the 2500 Clear Air Vehicle on my own. The 3rd told me that the 7500 essentially took care of the tax, ttl, license and other fees, but didn't really buy down the sales price. Are dealers different? Can some one break down an i3 with a Hypothetical 52,000 MSRP and agreed to price of 49,000 and how the credits work? I promise, i've looked all over the place, can't seem to find a solid answer.

Also, Michaell, your knowledge is very appreciated. If i'm ever able to muster up the courage to start negotiating, I'll reach out for additional advice.

tudi

@hennegan Your purchase price with be 49000-7500=41500. The 2500 credit you have submit separately and it's subject to income cap (<$300K).

Some dealers may try to tax you on the $7500 rebate and put it in the drive-off payment. Don't get ripped.

lsp2012

To be clear: if you lease, the owner of the vehicle (i.e. the leasing company) gets the $7500 federal tax refund -- assuming they can make use of that.

In the case of BMW, they are passing the entire $7500 back to you in the form of a discount on the calculation of the capitalized lease cost. By the way, I think this is unusual -- for example, GM/GM dealers only give you part of that money back, I think they pocket some of the balance and use the remainder to increase the residual value of the car.

State rebates/refunds/whatever are up to the customer, as far as I know.

Whether or not the $7500 fed tax refund/BMW FS discount is subject to sales tax is a function of state sales tax law. In my state (Rhode Island), it was not subject to sales tax; in other states, it may be.

Likewise, FWIW, the state rebate may be subject to Federal income taxation -- I am not entirely clear, for example, whether my $2500 Rhode Island refund will be taxed as income on my federal income tax filing.

At the end of the day, a lease isn't that complicated. Just get as much detail as you can from your dealer, then check back here!

tudi

@gabb Are you getting BEV or REX. There's not many BEV in stock for sfbay dealers.

gabb

BEV only

stp5

From what I have seen it is Chevy that is the unusual one. Most manufacturers/leasing companies kick back the $7500 rebate as a cap cost reduction. I wish Chevy did too. They way they do it makes buying the car at the end of the lease a non-starter.

Michaell

stp5 said:

From what I have seen it is Chevy that is the unusual one. Most manufacturers/leasing companies kick back the $7500 rebate as a cap cost reduction. I wish Chevy did too. They way they do it makes buying the car at the end of the lease a non-starter.

Right, but their intention is to get you to buy or lease another car from them. Rarely does it make sense to buy out a lease, regardless of brand.

hennegan

I have just started the process and have reached out to a few dealers and the first 2 offers I had were likely not great.

The first dealer (through costco's auto program) said he could give me the sales price as 500 over invoices on a base Decca model. Not sure how that ranks, but was 6% off MSRP. the money factor was good, res was 58% on 36/10 but the total price of the loan was close to 15k with zero down.

here is the other offer:

10k miles per year / 36 month lease / $2,500 drive off + $3,500 (7 security deposits) = $6,000 total due at signing

MSRP: $51,745
Selling Price: $48,800
Monthly Payment: $430.54 + tax = $468.21

Money Factor 0.00091 and residual is 58%


I'm so confused on how to factor in the 7500 tax credit, and how it reduces the cost.

I plugged similar numbers, then added the additional california credit and numbers became more appealing on a lease calculator (attached pic)

I'm a newbie at this, so let me know what i should know going forward.

Michaell

hennegan said:

I have just started the process and have reached out to a few dealers and the first 2 offers I had were likely not great.

The first dealer (through costco's auto program) said he could give me the sales price as 500 over invoices on a base Decca model. Not sure how that ranks, but was 6% off MSRP. the money factor was good, res was 58% on 36/10 but the total price of the loan was close to 15k with zero down.

here is the other offer:

10k miles per year / 36 month lease / $2,500 drive off + $3,500 (7 security deposits) = $6,000 total due at signing

MSRP: $51,745
Selling Price: $48,800
Monthly Payment: $430.54 + tax = $468.21

Money Factor 0.00091 and residual is 58%


I'm so confused on how to factor in the 7500 tax credit, and how it reduces the cost.

I plugged similar numbers, then added the additional california credit and numbers became more appealing on a lease calculator (attached pic)

I'm a newbie at this, so let me know what i should know going forward.

Not sure where you're getting the .00051 MF on your calculator - the MF after MSD's will be the .00091 the dealer is quoting you.

The $7500 is applied to the negotiated selling price

The CA credit, I believe, comes to you as a check and isn't applied to the lease numbers at all.

Using $51,475 as the MSRP and $41,300 as the cap cost, I get $383/mo plus tax.

hennegan

Michaell said:

hennegan said:

I have just started the process and have reached out to a few dealers and the first 2 offers I had were likely not great.

The first dealer (through costco's auto program) said he could give me the sales price as 500 over invoices on a base Decca model. Not sure how that ranks, but was 6% off MSRP. the money factor was good, res was 58% on 36/10 but the total price of the loan was close to 15k with zero down.

here is the other offer:

10k miles per year / 36 month lease / $2,500 drive off + $3,500 (7 security deposits) = $6,000 total due at signing

MSRP: $51,745
Selling Price: $48,800
Monthly Payment: $430.54 + tax = $468.21

Money Factor 0.00091 and residual is 58%


I'm so confused on how to factor in the 7500 tax credit, and how it reduces the cost.

I plugged similar numbers, then added the additional california credit and numbers became more appealing on a lease calculator (attached pic)

I'm a newbie at this, so let me know what i should know going forward.

Not sure where you're getting the .00051 MF on your calculator - the MF after MSD's will be the .00091 the dealer is quoting you.

The $7500 is applied to the negotiated selling price

The CA credit, I believe, comes to you as a check and isn't applied to the lease numbers at all.

Using $51,475 as the MSRP and $41,300 as the cap cost, I get $383/mo plus tax.

AH, i mistyped the money factor. So, for my future negotiations, where did you think he got 430.54 from? Doc fees? where can I negotiate, agreed sales price i'm assuming. He's down 6% (or 500 over invoice) is that a good price point? That is all the information he sent me on our initial conversation.

I really do appreciate the service/insight you provide on this site. I'm hoping to be able to lease an i3, likely wouldn't be able to with your help on here. thanks.

Michaell

hennegan said:

Michaell said:

hennegan said:

I have just started the process and have reached out to a few dealers and the first 2 offers I had were likely not great.

The first dealer (through costco's auto program) said he could give me the sales price as 500 over invoices on a base Decca model. Not sure how that ranks, but was 6% off MSRP. the money factor was good, res was 58% on 36/10 but the total price of the loan was close to 15k with zero down.

here is the other offer:

10k miles per year / 36 month lease / $2,500 drive off + $3,500 (7 security deposits) = $6,000 total due at signing

MSRP: $51,745
Selling Price: $48,800
Monthly Payment: $430.54 + tax = $468.21

Money Factor 0.00091 and residual is 58%


I'm so confused on how to factor in the 7500 tax credit, and how it reduces the cost.

I plugged similar numbers, then added the additional california credit and numbers became more appealing on a lease calculator (attached pic)

I'm a newbie at this, so let me know what i should know going forward.

Not sure where you're getting the .00051 MF on your calculator - the MF after MSD's will be the .00091 the dealer is quoting you.

The $7500 is applied to the negotiated selling price

The CA credit, I believe, comes to you as a check and isn't applied to the lease numbers at all.

Using $51,475 as the MSRP and $41,300 as the cap cost, I get $383/mo plus tax.

AH, i mistyped the money factor. So, for my future negotiations, where did you think he got 430.54 from? Doc fees? where can I negotiate, agreed sales price i'm assuming. He's down 6% (or 500 over invoice) is that a good price point? That is all the information he sent me on our initial conversation.

I really do appreciate the service/insight you provide on this site. I'm hoping to be able to lease an i3, likely wouldn't be able to with your help on here. thanks.

No idea where or how the dealer calculated their payment. The only variables in a lease are the cap cost (selling price + taxes, fees you are not paying up front), and the MF.

6% is OK for BMW - ideally, 7% or a bit more would make it a great deal. Engage with multiple dealers and have them compete for your business. If you aren't picky on color, then the transaction becomes a commodity purchase, like a toaster.

michaelp21

I leased a 2017 i3 REX a few weeks ago in So Cal. I spent a lot of time reading tips here so want to share.
30 mos/ 10K
I researched the package/options I was willing to accept (MSRP $51-54K) and emailed about 20 dealers on their website over 2 days and bought on night 2.
I found the best was to ask for price vs. invoice.
Those that replied ranged from $500 over invoice to $500 below.
Two replied $1,250 below invoice. That came out to 8.0% off MSRP.
I may have been able to push for a little more but I was set on that pkg.
(I've tried Costco and AAA but I think you're better off on your own.)

Add in $1,500 off for fleet, and it's 11.4% off MSRP - my MSRP was $53,595

I rolled 925 acq fee into pmts
7 MSDs and fleet got MF from 0.00134 to 0.00065 (~1.56% A.P.R.)

drive off was
4,450 = 2,800 sec deposit (7 MSDs)
+ 188 CASH DOWN (172+tax)
+ 656 (tax on 7,500 tax credit)
+ 447 lic/reg
+ 358 1st month pmt including tax

as you know, CA $2,500 rebate is worth $83/mo over 30 months.
so net $275/mo w/ just tax/lic/reg & 200 cash down - I'm very happy!!

hennegan

Here is the "worksheet" he sent me. Can you see where he got his payment? Where can I negotiate, aside from sales price?

Michaell said:

hennegan said:

Michaell said:

hennegan said:

I have just started the process and have reached out to a few dealers and the first 2 offers I had were likely not great.

The first dealer (through costco's auto program) said he could give me the sales price as 500 over invoices on a base Decca model. Not sure how that ranks, but was 6% off MSRP. the money factor was good, res was 58% on 36/10 but the total price of the loan was close to 15k with zero down.

here is the other offer:

10k miles per year / 36 month lease / $2,500 drive off + $3,500 (7 security deposits) = $6,000 total due at signing

MSRP: $51,745
Selling Price: $48,800
Monthly Payment: $430.54 + tax = $468.21

Money Factor 0.00091 and residual is 58%


I'm so confused on how to factor in the 7500 tax credit, and how it reduces the cost.

I plugged similar numbers, then added the additional california credit and numbers became more appealing on a lease calculator (attached pic)

I'm a newbie at this, so let me know what i should know going forward.

Not sure where you're getting the .00051 MF on your calculator - the MF after MSD's will be the .00091 the dealer is quoting you.

The $7500 is applied to the negotiated selling price

The CA credit, I believe, comes to you as a check and isn't applied to the lease numbers at all.

Using $51,475 as the MSRP and $41,300 as the cap cost, I get $383/mo plus tax.

AH, i mistyped the money factor. So, for my future negotiations, where did you think he got 430.54 from? Doc fees? where can I negotiate, agreed sales price i'm assuming. He's down 6% (or 500 over invoice) is that a good price point? That is all the information he sent me on our initial conversation.

I really do appreciate the service/insight you provide on this site. I'm hoping to be able to lease an i3, likely wouldn't be able to with your help on here. thanks.

No idea where or how the dealer calculated their payment. The only variables in a lease are the cap cost (selling price + taxes, fees you are not paying up front), and the MF.

6% is OK for BMW - ideally, 7% or a bit more would make it a great deal. Engage with multiple dealers and have them compete for your business. If you aren't picky on color, then the transaction becomes a commodity purchase, like a toaster.

Michaell

michaelp21 said:

I leased a 2017 i3 REX a few weeks ago in So Cal. I spent a lot of time reading tips here so want to share.
30 mos/ 10K
I researched the package/options I was willing to accept (MSRP $51-54K) and emailed about 20 dealers on their website over 2 days and bought on night 2.
I found the best was to ask for price vs. invoice.
Those that replied ranged from $500 over invoice to $500 below.
Two replied $1,250 below invoice. That came out to 8.0% off MSRP.
I may have been able to push for a little more but I was set on that pkg.
(I've tried Costco and AAA but I think you're better off on your own.)

Add in $1,500 off for fleet, and it's 11.4% off MSRP - my MSRP was $53,595

I rolled 925 acq fee into pmts
7 MSDs and fleet got MF from 0.00134 to 0.00065 (~1.56% A.P.R.)

drive off was
4,450 = 2,800 sec deposit (7 MSDs)
+ 188 CASH DOWN (172+tax)
+ 656 (tax on 7,500 tax credit)
+ 447 lic/reg
+ 358 1st month pmt including tax

as you know, CA $2,500 rebate is worth $83/mo over 30 months.
so net $275/mo w/ just tax/lic/reg & 200 cash down - I'm very happy!!

Congrats! Very strong deal.

Thanks for checking in.

Michaell

hennegan said:

Here is the "worksheet" he sent me. Can you see where he got his payment? Where can I negotiate, aside from sales price?

Michaell said:

hennegan said:

Michaell said:

hennegan said:

I have just started the process and have reached out to a few dealers and the first 2 offers I had were likely not great.

The first dealer (through costco's auto program) said he could give me the sales price as 500 over invoices on a base Decca model. Not sure how that ranks, but was 6% off MSRP. the money factor was good, res was 58% on 36/10 but the total price of the loan was close to 15k with zero down.

here is the other offer:

10k miles per year / 36 month lease / $2,500 drive off + $3,500 (7 security deposits) = $6,000 total due at signing

MSRP: $51,745
Selling Price: $48,800
Monthly Payment: $430.54 + tax = $468.21

Money Factor 0.00091 and residual is 58%


I'm so confused on how to factor in the 7500 tax credit, and how it reduces the cost.

I plugged similar numbers, then added the additional california credit and numbers became more appealing on a lease calculator (attached pic)

I'm a newbie at this, so let me know what i should know going forward.

Not sure where you're getting the .00051 MF on your calculator - the MF after MSD's will be the .00091 the dealer is quoting you.

The $7500 is applied to the negotiated selling price

The CA credit, I believe, comes to you as a check and isn't applied to the lease numbers at all.

Using $51,475 as the MSRP and $41,300 as the cap cost, I get $383/mo plus tax.

AH, i mistyped the money factor. So, for my future negotiations, where did you think he got 430.54 from? Doc fees? where can I negotiate, agreed sales price i'm assuming. He's down 6% (or 500 over invoice) is that a good price point? That is all the information he sent me on our initial conversation.

I really do appreciate the service/insight you provide on this site. I'm hoping to be able to lease an i3, likely wouldn't be able to with your help on here. thanks.

No idea where or how the dealer calculated their payment. The only variables in a lease are the cap cost (selling price + taxes, fees you are not paying up front), and the MF.

6% is OK for BMW - ideally, 7% or a bit more would make it a great deal. Engage with multiple dealers and have them compete for your business. If you aren't picky on color, then the transaction becomes a commodity purchase, like a toaster.

You are getting the base MF, less MSD, so that's good. 5.7% off MSRP is OK; could be a little better.

But, you're giving the dealer almost $6K in up front cash? In addition to the $7500 incentive? Some of that goes to the MSD, sure, but not sure about the rest.

However, when I plug the numbers (MSRP and net cap cost) into my calculator, I get $409/mo before tax, where they are getting $430.54. That's about a $750 difference in cap cost.

Ask the dealer for the "adjusted" cap cost and see what they say.

hennegan

Thanks again for the help.

I think the 6k is a combo of the msd and the 2500 rebate.
what is adjust cap cost?  What was the "aftermarket" as well?

Im trying to figure out how the dealer gets those numbers off that chart.  when I go to lease calculator I get a much different set of numbers, even though we're are using the same variables. 

I don't know how much wiggle room there is (could be a lot I don't know), this was the first offer after an email. I'm trying to understand what is going into the pricing. Ideally I'd like to get my payments into the mid 300's (lower if possible, obviously) on a 52k car with 0 down ( save for rebate/msd). The multiple lease calculators online say yes that can happen, but his worksheet suggests otherwise. So, I'm trying to figure out where my payments go askew on my calculator so. 

Thanks

kyfdx

hennegan said:

Thanks again for the help.

I think the 6k is a combo of the msd and the 2500 rebate.
what is adjust cap cost?  What was the "aftermarket" as well?

Im trying to figure out how the dealer gets those numbers off that chart.  when I go to lease calculator I get a much different set of numbers, even though we're are using the same variables. 

I don't know how much wiggle room there is (could be a lot I don't know), this was the first offer after an email. I'm trying to understand what is going into the pricing. Ideally I'd like to get my payments into the mid 300's (lower if possible, obviously) on a 52k car with 0 down ( save for rebate/msd). The multiple lease calculators online say yes that can happen, but his worksheet suggests otherwise. So, I'm trying to figure out where my payments go askew on my calculator so. 

Thanks

It looks to me like you have to come up with $2500 upfront, plus the $3500 in MSDs, and wait for your $2500 rebate to come from the state, later.

Discount is about 5.7% from MSRP before rebates, which is just okay. Plus some sort of $895 charge. I'll guess they are selling you something there, but I don't know what it is. But, you did get the base MF (.00140 minus .00049 for MSDs).
But, when I do the math, I get $408.83/mo.+tax vs. their $430.54/mo.+tax.

I really hope they aren't playing with that screenshot, by changing the money factor, after the calculation has been completed. Hard to come up with any other explanation.

hennegan

kyfdx said:

hennegan said:

Thanks again for the help.

I think the 6k is a combo of the msd and the 2500 rebate.
what is adjust cap cost?  What was the "aftermarket" as well?

Im trying to figure out how the dealer gets those numbers off that chart.  when I go to lease calculator I get a much different set of numbers, even though we're are using the same variables. 

I don't know how much wiggle room there is (could be a lot I don't know), this was the first offer after an email. I'm trying to understand what is going into the pricing. Ideally I'd like to get my payments into the mid 300's (lower if possible, obviously) on a 52k car with 0 down ( save for rebate/msd). The multiple lease calculators online say yes that can happen, but his worksheet suggests otherwise. So, I'm trying to figure out where my payments go askew on my calculator so. 

Thanks

It looks to me like you have to come up with $2500 upfront, plus the $3500 in MSDs, and wait for your $2500 rebate to come from the state, later.

Discount is about 5.7% from MSRP before rebates, which is just okay. Plus some sort of $895 charge. I'll guess they are selling you something there, but I don't know what it is. But, you did get the base MF (.00140 minus .00049 for MSDs).
But, when I do the math, I get $408.83/mo.+tax vs. their $430.54/mo.+tax.

I really hope they aren't playing with that screenshot, by changing the money factor, after the calculation has been completed. Hard to come up with any other explanation.

Man, I'm confused as to what i'm missing. when I plug in these #'s at "lease hackr calculator" the price point is way lower $338 w/tax - $6675 drive off. what am I missing from the above worksheet to my calculator.

lsp2012

For reference, I got a $51.5k i3 ReX for $358 a month, with only $3500 down (including $2800 of MSD and first month payment) on a 36/10 lease. That with a 10% discount and starting MF of .00134. USAA discount of $1000 included in the discount. I have separately received a $2500 refund from my state for the EV purchase.

So, it is certainly doable.

One thing that can affect the payment is your state sales tax. Some tax the $7500 rebate, and some may tax the entire 'sale' price of the car. My state only taxes the money actually paid, which in my case is only the monthly payment (since I didn't pay anything up front).

Michaell

hennegan said:

kyfdx said:

hennegan said:

Thanks again for the help.

I think the 6k is a combo of the msd and the 2500 rebate.
what is adjust cap cost?  What was the "aftermarket" as well?

Im trying to figure out how the dealer gets those numbers off that chart.  when I go to lease calculator I get a much different set of numbers, even though we're are using the same variables. 

I don't know how much wiggle room there is (could be a lot I don't know), this was the first offer after an email. I'm trying to understand what is going into the pricing. Ideally I'd like to get my payments into the mid 300's (lower if possible, obviously) on a 52k car with 0 down ( save for rebate/msd). The multiple lease calculators online say yes that can happen, but his worksheet suggests otherwise. So, I'm trying to figure out where my payments go askew on my calculator so. 

Thanks

It looks to me like you have to come up with $2500 upfront, plus the $3500 in MSDs, and wait for your $2500 rebate to come from the state, later.

Discount is about 5.7% from MSRP before rebates, which is just okay. Plus some sort of $895 charge. I'll guess they are selling you something there, but I don't know what it is. But, you did get the base MF (.00140 minus .00049 for MSDs).
But, when I do the math, I get $408.83/mo.+tax vs. their $430.54/mo.+tax.

I really hope they aren't playing with that screenshot, by changing the money factor, after the calculation has been completed. Hard to come up with any other explanation.

Man, I'm confused as to what i'm missing. when I plug in these #'s at "lease hackr calculator" the price point is way lower $338 w/tax - $6675 drive off. what am I missing from the above worksheet to my calculator.

Can't help you with any on-line calculator - might be some assumptions we know nothing about.

Build your own calculator using the instructions here:

https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

hennegan

ok, so here is how the $7500 rebate was explained to me, curious to see if anyone else has seen it used this way.

For at least this dealer in SoCal: The tax credit does not go 100% to reduce the the cap cost, instead it takes care of the Taxes, first month payment, etc. The remaining portion (around 5k) will go to reducing the cap cost. So, thats why my #'s are off from the online calculators. I was plugging all of it into either the sales price, or down payment.

Is this anyone elses experience with the credit? certainly changes things....

lsp2012

Not in my case. Sounds like, compared to me, you may owe sales tax up front on the federal refund and maybe even on the entire value of the transaction? If that all got added in to the capitalized cost, then that could certainly raise the lease rate. But, if all the sales tax is added in, then there shouldn't be additional sales tax except perhaps on the interest portion of the lease payment.

If the up-front fees/taxes are high, then certainly some of the $7500 could be used to offset those, and then the capitalized cost would not reflect the whole $7500.

However, he also has you paying $2500 down, which is also a cap cost reduction.

So, if you do in fact pay the $2500 down, the cap cost would be: sales price - $7500 refund - $2500 down (or state refund) + fees/taxes required at signing.

This all just sounds very fishy to me. I attach my dealer's worksheet on my deal below:

Note that lines 29 and 30 don't really have anything to do with the lease rate or any actual payments.

kyfdx

hennegan said:

ok, so here is how the $7500 rebate was explained to me, curious to see if anyone else has seen it used this way.

For at least this dealer in SoCal: The tax credit does not go 100% to reduce the the cap cost, instead it takes care of the Taxes, first month payment, etc. The remaining portion (around 5k) will go to reducing the cap cost. So, thats why my #'s are off from the online calculators. I was plugging all of it into either the sales price, or down payment.

Is this anyone elses experience with the credit? certainly changes things....

Your screen shot tells you everything you need to know about this deal. It shows you how much is going to CAP cost reduction, and how much is going to pay upfront amounts. Not looking at your calculator, I can't see where you are entering the numbers, but I'll guess that you are putting everything in as CAP reduction, when the numbers have been allocated elsewhere.

As I noted in my previous post, the payment is off somewhat, but some of that could be upfront taxes on the rebates (as noted by others). However, that should show on your screenshot.

In your example, the $2500 you are putting up, outside of the MSDs is being used to pay the upfront amounts (you can see those have check marks next to them). That is slightly short of the amount needed, so the CAP cost reduction from the rebate is a little less than $7500.

tudi

Pulled the trigger. 10% off MSRP on a $48K BEV. +Fleet discount. Put acquisition fee upfront. Base MF 0.00140 - 7MSDs. Mnthly payment $250. Can't get away from the sales tax on $7500 rebate. Not sure if the dealer actually pays the tax or they just take it as profit.

i3 demands are getting high (sfbay) and it's really hard to negotiate further down.

joyce409

It seems that something must be wrong with the numbers I just received on a 36/12 lease of an i3. I indicated I'd be willing to put down MSDs to lower the interest rate, and this guy quotes me $7500 in MSD and $503 monthly payment.

It looks to me like he is not giving me a break on the money factor, despite having tier 1 credit and all the MSD.

What else am I missing here? The dealer is in Ohio. Here are the numbers:

kyfdx

tudi said:

Pulled the trigger. 10% off MSRP on a $48K BEV. +Fleet discount. Put acquisition fee upfront. Base MF 0.00140 - 7MSDs. Mnthly payment $250. Can't get away from the sales tax on $7500 rebate. Not sure if the dealer actually pays the tax or they just take it as profit.

i3 demands are getting high (sfbay) and it's really hard to negotiate further down.

The rebate is taxable.

kyfdx

joyce409 said:

It seems that something must be wrong with the numbers I just received on a 36/12 lease of an i3. I indicated I'd be willing to put down MSDs to lower the interest rate, and this guy quotes me $7500 in MSD and $503 monthly payment.

It looks to me like he is not giving me a break on the money factor, despite having tier 1 credit and all the MSD.

What else am I missing here? The dealer is in Ohio. Here are the numbers:

That's right.. money factor is marked up from .00140 to .00160.
There are no MSDs in that quote.
The $7500 is the rebate.
The amount due at signing is covered by the rebate.

This is a straight, zero due at signing quote, with no MSDs and a marked up money factor.

hangman6

Hello - Could I get the Residual/MF for the 2017 i3. 10K & 12K in Seattle?
Does it matter if it's REX or Trim (Mega/Giga/Tera?) I'm not sure what the best fit is for me there.