BMW 3-Series Lease Questions

konacoug

I don't know why you wish to one pay your lease and I'm not sure about what happens to your one pay money, if the car gets wrecked or stolen. I know Mercedes will reimburse you the balance in a total loss. However, if you do max MSD's, pay all your fees upfront, your money won't be at risk. I would recommend you put the money into a money market and do an auto deduct.

sherr1

Thanks for your help...I was afraid of that (bad deal all around). Did you get a 2014 or a 2013? What you're paying for your lease is incredible...can you tell me what your final price on your car was? is this a 36mo with 10,000k? I can see we are going to overpay if we don't get more educated and fast. This is discouraging!

I haven't based anything on the trade...especially since we were told that if we traded against a lease we wouldn't get the tax saving as if we were buying. I'm heading to CarMax this Saturday to get a quote.

pg600rr

So my main reason is this, I am trading in my paid off 11' S4 toward the lease, as far as I understand any of those trade in proceeds I apply toward the lease as a cap cost reduction or even to pay off the entire less up front with that equity, will be tax free (i.e., I wont have to pay the MA. state sales tax on the lease), so by doing so, I will save quite a bit of $$$, I havent done the exact math but its around $1200 in taxes. on top of that, the MF reduction of .00080 instead of .00045, will save me another $1000, if taken of a MF of .00125.

So total savings would be $2200....just trying to figure out what to do.

tamreet

Hi, I went to BMW San Francisco California and am getting poor leasing quotes relative to what others are receiving. Do any members have dealership recommendations in the Bay Area to get the most competitive deals?

I noticed some good deals from dealerships in Los Angeles area that forum members are getting. Does it make sense for me to just fly down and pick one up there?

konacoug

I got a 2013 in July....I ordered it in April. my final price was about $35300. I paid the drive offs and put down $2450 for the MSD's so my money factor was .00072.

It really is all about knowing all about the process and current incentives, rebates and the true invoice.

If you work via email, it takes away any pressure and allows you to take your time and analyze the offers. It is not unusual at all for some dealers to not give you all of the details and just go for a payment amount.

konacoug

I definitely recommend you use email, contact Jon at Santa Barbara BMW or Greg At Pacific BMW. I believe you will save a ton and it will well be worth your while to make this effort.

konacoug

Just my .02 cents here.... the reason to lease is to minimize the amount of money you put into the deal and with BMW's attractive lease terms, it is a great way to drive a luxury car for minimal cost.

So...I am totally unsure about the tax ramifications, regarding doing a one pay and your tax savings. However, if you do the MSD's your mf will be .00076 and I don't think they will reduce it further with a one pay lease. You would need to verify that with BMW. I believe if you look on the Bimmerfest forum and search this topic has been discussed.

You never want to reduce the cap cost, once you leave the lot, if anything happens to the car, the cap cost money is gone. I would advise you to use the proceeds of the sale of your car to pay your taxes upfront, drive offs and then do the max MSD's. Bank the balance.

kar_freak

Hi!

Looking for current lease rates (MF/RV) for the following:

2013 328i Sportline 15k / 36 months
2014 328i Sportline 15k / 36 months

Thanks!

storms3

Hi, how about Seattle area. Do you have any recommended dealer?

thecase1

Looking for the new lease rates for November 2013.

Car: 2014 435xi M-Sport 36 month / 12K miles per year.

RV?
MF?
Specials / Incentives?

Thanks!

kyfdx

The October rates were only good through the 31st, and it will be a few days before we get the November rates...

konacoug

Although, I am a grad of WSU, I have not live in the Seattle area for quite sometime. I would recommend, that you build the car you want, get the invoice pricing and send emails to all of the Puget Sound area dealer internet depts., with your build. You can usually look at their inventory online, if there is something that interests you, send in a offer.

Stay out of the dealerships, do this by email. Try to get them to send you all of fees, especially if you are leasing.

swamee

don't think you can save on taxes by putting money down. you may want to double check that. also, after you put in MSDs, the cost of borrowing is barely 1%, very cheap which is why the advise in these forums is to not put money down (&ofcourse if your car gets totaled or stolen you lose the entire down payment so no reason to risk your $$s for a 1% cost)

sherr1

sherr1

Oops, sorry, I hit enter before I wrote anything. Thanks to the info here, I wound up getting what I hope is a decent deal here in Phoenix. But...they charged me tax on the bank fee, which I paid up front along with the other "drive off" fees. Is that normal, or are they making money they're not entitled to by doing that? If it's a cheat, I'd like to know. It seemed strange to me to have to pay tax on that...am I wrong?

kyfdx

Any fee that doesn't go to the government gets taxed... I wouldn't swear it gets taxed in every state.... just every state that I know about... ;-)

konacoug

I am not sure about that, it would seem unlikely, but it would be surprising to me, for them to try and get what another $50 in tax on you..... I hope if you put down MSD's they didn't charge you tax on them. I actually had a guy here in Hawaii, try to tell me they were taxable and he rounded the MSD's up, instead of down after calculating the payment. This was another reason I went to LA to get my car, they just weren't interested in giving me a decent deal.

I hoped I helped you negotiate a good deal and wish you happy driving )

sherr1

Thanks. I think I did okay (fingers crossed). They didn't charge tax on the MSDs, just on the bank fee and the $500 loyalty rebate, which they added in then subtracted, after they charged tax on it. Then they took it off the price of the car. So, it cost me an additional $118 in tax on those two things. I called and questioned them on it, and he insisted that's normal to pay tax on those...but then this dealer jacks up the bank fee to $925. I just thought it seemed strange to tax a bank fee.

mitchs3

What is the target price for a leftover 2013 335i convertible? I know there is $1500 build out allowance and I qualify for $500 loyalty. Should I shoot for under invoice say by $500 so dealer gets $1500 profit? As I am leasing I will only do deal if $725 Acquisition fee and buy MF of 0.00125. A dealer offered me 1,000 over invoice, with 925 acquisition fee and the MF marked up. Obviously, a poor deal. Other option is to wait for the 2 series convertible, but will be a soft top. Thoughts??

konacoug

sometimes, depending on the deal, it is ok to let go the $200 increase on the acquisition fee. I think the first BMW I got in Scottsdale, they raised the Aq fee to $825 and when I protested, the finance guy told me a complete lie, that it was the regular fee. When I found out later, I was furious, and promised myself to never do business with them again.

I wonder if you used your loyalty on the drive off, if it is still taxable. I hope you got the base mf, before you did your MSD's. Otherwise, they really hosed you. Also, I really hope you didn't purchase any of the tire and wheel insurance or any of the other crap the finance guy pushes on you. If you did, you can cancel up to 30 days from contract. I believe you can go to Discount tire and purchase tire warranties from them, even though you did not purchase tires there.

I went back and looked at your original post, if you paid about 3k under MSRP, with base mf, the deal looks okay to me, as long as they gave you base mf.

kyfdx

It's been a long time, but when we leased our one-model-year-old 330Cic, around Thanksgiving... there was $4K of dealer cash... I offered $2000 under invoice, with no MF or Acq.fee markups... (That's $2K clear for the dealer).

That might have been a little more than I would usually go for, but the lease program was so good at the time, I wanted to make a strong offer out of the box and get it done.. They bumped me $200 on the acq.fee.... I was willing to come up $200 on my price, so it didn't really matter where it came from... it was the total deal that was important...

I think your $500 under is a good start... maybe, try a little lower, but when the MSRP gets above $50K, dealers usually want a little more spread..

BMW is saying that 2013 model incentives will continue through December (of course, they can always change their mind).. Of course, the longer you wait, the less selection..

regards,
kyfdx

tamreet

Will do. Thanks.

tres55555

I currently have a lease on a 2011 328xi that is set to expire in February and I am looking into getting into a new 3 series. Dealer told me I could walk away and they would take over the lease. Offered me on a 2013 328XI:

MSRP: $48,245
Selling Price: $46,000
Money Factor: .00125
Residual: .59
10/k Year
$2,500 Incentive for leasing a model from last year + 1st payment free

I would put $1,200 down and monthly payment would be $554

Should I be looking for loyalty cash? Build out money?

Any thoughts / help you would be much appreciated!!

konacoug

no, this is a terrible deal on a 2013 model. I wouldn't pay more than invoice, minus the incentives.... they want to get rid of last years models. I should think the selling price should be between $42-43k.

ct200howner

That has got to be the worst deal ever. Run away...

kshah85

Would love the spreadsheet. email is kshah85@gmail.com

kshah85

Hey man, you seem to really have great knowledge about leasing 328s. I am looking to snag a 2013 328xi. Can you recommend a NJ dealer? Thanks in advance.

tres55555

Konacoug,

Thank you for the suggestions! I will go back to the dealer and tell them they need to get the price in the range you mentioned (42-43) or move on to another dealer. Do I lose any leverage because they don't have the 2013 vehicle I want in stock and they would have to have it shipped / driven up from a dealership about a 100 miles away?

If they agree to your price range, and the other factors stay the same would you suggest I sign? Anything else you would push for or more information I should gather?

Thank you again for your help!

konacoug

Yes, you do loose leverage, when the dealer doesn't have the vehicle in this situation. There really isn't much incentive for the dealer in this situation, to do a lowball deal.

I would suggest emailing the dealer that does have it and make them an offer. Be very specific about all the terms, just so there isn't any kind of misunderstanding. If they agree have them send you the deal, to review in writing.

Finally, don't let the finance guy push you into any of the insurance crap.

konacoug

I don't really know the east coast dealers, however, if you look on Bimmerfest, I have seen various comments about dealers there. In your case, I would look at the dealer inventories online, that are in your general area. Then, price out at invoice, subtract $2k and make offers via email. DO NOT go into any dealership until you have a deal in hand. Again, there is a very big difference in buying vs. leasing, which are you going to do? I can provide further advice regarding leasing if you go that route. I personally prefer leasing, the care is always under warranty and maintenance. BMW supports leasing and it makes for very attractive deals.

dgaff1

Are residual and lease factors available for 2014 335 xdrive yet? Looking for 3 year-30K miles. Same incentives as last month ($750 option credit, $500 loyalty) still apply?

Thank you for the assistance!

kyfdx

2014 335 xdrive sedan 36mo, 10K/yr lease
.00125 MF and 61% residual..

Yes, same incentives..

regards,
kyfdx

dgaff1

Thank you!

zoombie99

Try BMW of Tenafly. Avoid Prestige. Others have had good luck with JMK.

kshah85

Thanks for getting back to me. Unfortunately, I did go into a few dealers in NJ yesterday to get a feel. I am definitely looking to lease at 15K/36 mos within the next 2-4 weeks. Here are some preliminary quotes I got from 2 different dealers.

1. 45,025 MSRP; 56% resid .000076 MF after 7MSDs I was quoted $419 per month for 15K miles.

2. 43,000 MSRP; 56% resid .000076 MF after 7MSDs I was quoted $427 per month for 15K miles.

I think both of these cars can be mine at $400 per month but I am a bit perplexed by the entire process because they start above $500 per month and end up dropping down to near $400, which makes me think I can do even better. Do you follow a rule of thumb or ratio for MSRP to monthly payment? Neither of the builds were models i was particularly thrilled with and a part of me seems to think I can get my payments well under $400 considering how eager they are for my business, or, conversely, getting a better equipped model at the $400 monthly payment.

Also, is it just known in the leasing industry that invoice minus incentives is the starting point for initial offers? I want to be better equipped before I start emailing dealers. Thanks again.

storms3

Hi kyfdx,

Do you have current lease rate for 2013 328i 24 month/ 10k miles per year? How about 12k miles?

Thanks.

kyfdx

2013 328i Sedan 24mo, 10K/yr lease
.00125 MF and 65% residual. Subtract 1% for 12K/yr residual

regards,
kyfdx

storms3

How about 2014 328i 24 month 10k per year?

Thanks again.

mitchs3

I am still looking at a 2013 335i or 335is convertible with 6 speed manual trans. There are only a couple in the Baltimore/DC area. Do you have the November MF, residual value, and incentives for this vehicle. I do qualify for the 500 loyalty, and I heard a rumor the build out was now increased from 1500 to 2000. Thanks in advance for the info.

kyfdx

2014 328i Sedan 24 month 10k per year lease
.00125 MF and 67% residual

regards,
kyfdx

kyfdx

2013 335i Convertible 36mo, 15K/yr lease
.00125 MF and 60% residual.. I still show the build out cash as $1500.

The numbers for the 335iS are the same..

regards,
kyfdx

konacoug

Obviously what stands out is the second car with a higher monthly payment, yet the MSRP is 2K lower. Monthly payment is important, but you should always be looking at the bottom line. In the preliminary quotes, did they give you all of the fees on a work sheet?

Most important, what are they selling the car to you for. How much over invoice, before any available incentives? On a new model, it is more like a good deal would be about $500 over invoice, then subtract the incentives.

Also, figure out what you want in a car, must haves vs. options your okay with, to what you don't want to pay for.... I am guessing you will be leasing off of dealer inventory. So, if I was you, build your ideal car within your price range, then look at dealer inventories, try to find several you like. Then send out offers to their internet dept.

When I did this, I literally had 3 dealers, trying to get my business last summer. Make sure that there are not any surprises, no special crap they try to throw on...

storms3

Hi kyfdx,

Please forgive my annoying question. What's the lease rate for 2013 128i with 24 month and 10k per year.

THanks.

kyfdx

2013 128i Coupe (?) 24mo, 10K/yr lease
.00107 MF and 57% residual

regards,
kyfdx

mitchs3

Thanks. While I didn't specify, I assume the same vehicle for 10K a year/ 36 month has residual of 63% as it did in October. Correct? I guess there is no way to predict further changes for December, but that residual still is high, making leasing a reasonable option for a model that is nearly a year old.

kyfdx

Yes... 10K residuals are 3% higher than 15K residuals, in almost every case..

BMW says that 2013 model rates and residuals, along with incentives will be carried through to the end of the year.. While they could always decide to improve the program, chances are what you see is what you get...

regards,
kyfdx

kshah85

I wish I could shake your hand, its awesome what a some homework can do before going into this process. Was quoted the following:

2013 328xi
MSRP: 45,975
Cap Cost: 39,100 (Inv: 42835 per BMW config)
15K/36 mos
7 MSDS .00078 MF ($3150)
$725 bank fee, $369 doc fee, MV fee $310.50, Tax up front (7%--$1135.53)
Monthly payment $421.00

Thoughts?

jcvmp5

Hello, I was wondering what the lease rates were for the new 2014 GT's if they are available already. Looking at a total MSRP of 57,550 built out on BMWusa.com. What should I be looking at for monthly? 12k or 15k miles?

Thanks

kyfdx

2014 335i xDrive GT 36mo, 15K lease
.00125 MF and 59% residual

regards,
kyfdx

randyjs

Looking for residuals and MF for a 2013 328iXdrive Sedan.

Also, what are current incentives that apply for the 2013 328iXdrive? Is there 500 loyalty, 750 option and 500 turn credit? I believe my local dealer said they have 2k in incentives on the 2013 but I was not 100% certain?

Thanks