URGENT feedback requested: 2016 X3 Lease terms

shainemo

Hi all-

Scheduled to visit dealership tomm morning to close deal for parents and will (hopefully) feel better after running it by the experts on here.

2016 X3 xDrive28
MSRP: $47,235
Sale Price: $38,000 (**service loaner - 7,500 miles, sold as new / never titled / full warranty for length of lease**)
36 months / 10K miles
MF = .00088 (after 7 MSDs) - base was .00137
Residual: $28,400
Acq Fee: $925
Doc Fee: $300
Taxes = $5,982 (VA - this seems high to me; VA is one of the states that charges tax on full price...ugh. Dealer said that this number includes new sale and future property tax (ugh again) fees. I'm not familiar with VA leasing; is this typical (annual prop tax pre-payment of sorts?)

Monthly: $437 - all taxes/fees rolled into monthly payment
Due at signing: $3,150 (7 MSDs) + $437 (first month payment) = $3,587

I was initially not in favor of them leasing a service loaner but given the discount and full warranty (not new watered-down one), I'm reconsidering my position on this.

TMV on used 2016 model with same specs & options is ~$41,000

THANK YOU in advance!

kyfdx

shainemo said:

Hi all-

Scheduled to visit dealership tomm morning to close deal for parents and will (hopefully) feel better after running it by the experts on here.

2016 X3 xDrive28
MSRP: $47,235
Sale Price: $38,000 (**service loaner - 7,500 miles, sold as new / never titled / full warranty for length of lease**)
36 months / 10K miles
MF = .00088 (after 7 MSDs) - base was .00137
Residual: $28,400
Acq Fee: $925
Doc Fee: $300
Taxes = $5,982 (VA - this seems high to me; VA is one of the states that charges tax on full price...ugh. Dealer said that this number includes new sale and future property tax (ugh again) fees. I'm not familiar with VA leasing; is this typical (annual prop tax pre-payment of sorts?)

Monthly: $437 - all taxes/fees rolled into monthly payment
Due at signing: $3,150 (7 MSDs) + $437 (first month payment) = $3,587

I was initially not in favor of them leasing a service loaner but given the discount and full warranty (not new watered-down one), I'm reconsidering my position on this.

TMV on used 2016 model with same specs & options is ~$41,000

THANK YOU in advance!

I don't know what the $5982 is, but it's not all tax. VA tax is only 4.15% approx. That's only $1600.
Unless this deal was locked in before Labor Day, the base rate is .00136 and the MF should be .00087.
The residual looks about right, once you account for the current mileage

Ask for the adjusted CAP cost. It should be $38,000 plus the other charges. Forget about the $5982 for now, because that is obviously not correct. (and, the payment would be higher, if they were adding that much).
Once you get the adjusted CAP, ask them for an accounting of everything over $38K, and if something doesn't look right, question it. With your payment and due at signing, along with the MSDs, it should be somewhere around $4000-$4200 over the $38K. $1600-$2000 for tax, $925 acq.fee, $300 doc fee. Find out what the rest of it is, and don't pay for any extras.

Looks like a decent deal, but don't lose it in the finance office.

shainemo

Thanks! It seemed off to me so I sent a note to the dealer.  His response:

"the lease worksheet does take in to account tax on a lease. I can show you exactly what you are paying tomorrow, it basically estimates personal property tax."

does that seem right? I've never heard of this but am not familiar with leases/personal prop tax with leases in VA.

thanks again- heading over soon!

kyfdx

shainemo said:

Thanks! It seemed off to me so I sent a note to the dealer.  His response:

"the lease worksheet does take in to account tax on a lease. I can show you exactly what you are paying tomorrow, it basically estimates personal property tax."

does that seem right? I've never heard of this but am not familiar with leases/personal prop tax with leases in VA.

thanks again- heading over soon!

It's possible that the big $5900 number is just an informational estimate of total taxes over the life of the lease, and has nothing to do with the actual numbers on the lease contract. We've seen that before.

shainemo

Yes that was it - sum of estimated tax payments over lease term. It was listed on the lease worksheet but not factored into the cap cost or lease terms. Thanks again!

kyfdx

shainemo said:

Yes that was it - sum of estimated tax payments over lease term. It was listed on the lease worksheet but not factored into the cap cost or lease terms. Thanks again!

So.. did you complete the deal?

shainemo

Yes - $37.5 + TTL - same terms as in original note for everything else

$422/month - $3150 in MSDs + 1st month due at signing, everything else rolled in

Thanks again - you are a huge help.