2014 BMW 4-Series Lease Questions

kyfdx · February 2014

@panfam007 said:
Are there any ideas on 24mos/10K RV on 435?

.00130 MF and 68% residual

trusaleen1 · March 2014

Hello, any updates on the March rates looking for 435 15k 36 months

kyfdx · March 2014

It will be later in the week before we get March numbers

kyfdx · March 2014

@trusaleen1 said:
Hello, any updates on the March rates looking for 435 15k 36 months

.00130 MF and 60% residual

trusaleen1 · March 2014

Thanks you for the update

fdg1 · March 2014

@berzerk91 said:
fdg1, I would not go for that deal if I were you. I live just north of NYC (Westchester) and this is the deal I managed to close: MSRP: $62,250, Selling to me: $56,056.12, Residual 61%, MF: .0013, Payment: $624.56. Doc fee of $75, taxes and other DMV fees as usual, I can check the breakdown if you want. If you are located in NYC I recommend that you reach out to BMW dealerships further away. FYI, I passed on a Black M Sport 435i xdrive (higher MSRP than on your vehicle) from Wide World BMW that they were quoting me at $620/month without any cash down as a cap cost reduction. I passed for an Estoril Blue one out in NJ (JMK BMW). The guy I used at Wide World is named Alan. Try going for that one if the color works for you.

I actually negotiated my deal down to 599 (65,550 MSRP/52,550 selling) but would def consider reaching out to your dealership if you can provide their contact. Also, were you buying a car off the lot (or another dealers inventory) ? Mine has to be ordered.

Thanks

mard71 · March 2014

Fdg1,
Can you tell us the details of your lease? 36 month, 10K miles? taxes and DMV paid up front?

mard71 · March 2014

$65,550 MSRP and $52,550 selling price is not possible. Please check your figures.

berzerk91 · March 2014

Wow fdg1, are you sure the selling price is that low on an order -without a cap cost reduction or MSDs? That's insane! There are two people I can recommend to you: I ended up purchasing my car from Art Youmann at JMK BMW out in NJ: ayouman@jmkbmwsaab.com and from the other dealership - Alan Himmelfarb at Wide World BMW - I didn't buy from him but he did give me the deal I mentioned previously.. $620, Black vehicle. You can mention my name with Art: Steve. I bought my car off the lot, I've had it for less than a week and I'm in love, good luck! Let me know if you get in touch with my dealer

andresmroldan · March 2014

Hello All. Couple questions:
1-Any current incentives for 435i? (current BMW customer)

2-Best I'm getting so far is $650 over invoice on 435i (MSRP $57,350). Standard MF, Res, No Down. Is that good or can I do better? FYI I'm in SoCal.

3-What would you guys predict the best deal achievable on the M4? Would invoice on this car also be approximately $4K below MSRP?

Thanks in advance!

andresmroldan · March 2014

Please disregard my questions above, instead is this a good deal:

435i Coupe
MSRP: $57,350
Sell Price: $53,340 ($650 above invoice)
12K/36Mos
62% Res
.00130 MF
Payment w/8% Tax: $678.72
No Down (just standard Drive Offs)

Also, if I lock in today and the MFs or Residuals change before delivery, can I adjust my contract?

Thanks!

berzerk91 · March 2014

Hey andresmroldan,
I don't know what the Cali market is like, but that seems really high. As I mentioned before, my car has a $62k sticker and my discount off MSRP, and payment were both lower than that quote. It seems fdg1 is also getting a deal that seems better than yours. I'd try more dealers or push harder. Regarding the M4 I think it's really early to tell, but for a long time it will be priced uber high due to low production and high demand - like all new cars.

kyfdx · March 2014

@andresmroldan said:
Please disregard my questions above, instead is this a good deal:

435i Coupe
MSRP: $57,350
Sell Price: $53,340 ($650 above invoice)
12K/36Mos
62% Res
.00130 MF
Payment w/8% Tax: $678.72
No Down (just standard Drive Offs)

Also, if I lock in today and the MFs or Residuals change before delivery, can I adjust my contract?

Thanks!

At this point, that looks like a decent deal. Supply is low, and demand seems to be high for the 4-series. The lease program is pretty good, considering the lack of incentives. There aren't too many models from any manufacturer that have 60%+ residuals.

Yes, you can lock in March's rates, and then take advantage of April or May, if that is when delivery occurs. But, you have to take the whole program, you can't pick and choose parts of each.

callalind · March 2014

I have tried to search through the posts for an answer before posting, but can't seem to find an explanation. What are the MSDs everyone is mentioning? Thanks.

konacoug · March 2014

MSD's are multiple security deposits. For each MSD, it lowers the money factor by .0007, BMW FS allows a max of 7 for a total reduction of .00049. The MSD is derived from computing the selling price of your car, using the lower money factor .00081 and rounding the payment up in $50 increments. For example, say your payment without MSD's was 595 per month, after applying the max MSD, your payment would drop to 548, then each MSD would be $550.
Also, don't be surprised when either the dealer or finance guy tries to discourage you from using MSD's. It lowers the total profit for them. They try to push you just to put more money down to obtain your optimum payment. The best part about the MSD program, they are totally refundable, you can roll them over into your next lease and if something happens to the car, wrecked, stolen, etc. you still get your MSD's back.

callalind · March 2014

Makes sense - and the starting value of the SD is basically equal to your monthly payment, it seems? Just as a rule of thumb? I am going to look this week at the 4 series, hoping for the 428 xDrive, 36 months, 12,000 miles. Do you have the MF and RV for march for that lease?

kyfdx · March 2014

@callalind said:
Makes sense - and the starting value of the SD is basically equal to your monthly payment, it seems? Just as a rule of thumb? I am going to look this week at the 4 series, hoping for the 428 xDrive, 36 months, 12,000 miles. Do you have the MF and RV for march for that lease?

Yes... each SD is your monthly payment, rounded up to the next $50 increment.

.00130 MF and 62% residual

bmwgrrrl · March 2014

What do they do with your MSD while they're holding it? Is it earning interest for you?

kyfdx · March 2014

@bmwgrrrl said:
What do they do with your MSD while they're holding it? Is it earning interest for you?

It's earning you a lower payment... Assume a $50K vehicle, and a $700/mo. lease payment. You make 7 MSDs ($4900) and they lower your money factor by .00049 (.00007 for each SD).

That lowers your payment by around $39/mo. (+tax). That is a $468 annual return on a $4900 investment. 9.5% after-tax return.

So... they can do whatever they want with your money, as long as they give it back at lease end.. they are paying you every month, in the form of a lower payment. The lower your payment is relative to the MSRP, the better your return...

callalind · March 2014

Last question - is the MSD based off the base monthly payment (before taxes)?

konacoug · March 2014

It is the total payment including taxes

callalind · March 2014

Thoughts on this deal? 428xi, MSRP of $45,325, negotiated selling price to $43,728...12K miles, 36 months, (RV of 62% and MF of .00130), total monthly payment of $574.92.

kyfdx · March 2014

@callalind said:
Last question - is the MSD based off the base monthly payment (before taxes)?

Each MSD is the full payment rounded up to the next $50 increment. In my experience, it's the full payment (including tax or anything else.... what you get billed for each month), after the money factor reduction. Though some others have had their dealer insist that it's the payment calculated before the MSD reduction. (I think that's wrong).

Michaell · March 2014

@berzerk91 said:
Wow fdg1, are you sure the selling price is that low on an order -without a cap cost reduction or MSDs? That's insane! There are two people I can recommend to you: I ended up purchasing my car from Art Youmann at JMK BMW out in NJ: ayouman@jmkbmwsaab.com and from the other dealership - Alan Himmelfarb at Wide World BMW - I didn't buy from him but he did give me the deal I mentioned previously.. $620, Black vehicle. You can mention my name with Art: Steve. I bought my car off the lot, I've had it for less than a week and I'm in love, good luck! Let me know if you get in touch with my dealer

Please - no last names or specific contact information should be posted.

agentbb007 · March 2014

Hi kyfdx,
Do you have the latest residual, money factor for 2014 435i xDrive 10k miles 36 months?
Thanks!
BB

kyfdx · March 2014

@agentbb007 said:
Hi kyfdx,
Do you have the latest residual, money factor for 2014 435i xDrive 10k miles 36 months?
Thanks!
BB

.00130 MF and 63% residual

rmt3 · March 2014

Do you have the money factor and residual for 36 months 12K miles for a 2014 428i convertible? Thanks! RM

kyfdx · March 2014

@rmt3 said:
Do you have the money factor and residual for 36 months 12K miles for a 2014 428i convertible? Thanks! RM

.00130 MF and 62% residual

rmt3 · March 2014

Thanks

bertsant17 · March 2014

Please offer thoughts on this 36month/15k miles lease deal for an automatic 428 coupe with M-Sport package and drive:

-Selling price of $51,540 ($1k over invoice)
-Money factor of .08 (after max MSD)...originally 1.3
-Residual of $32,610...60%
-Monthly payment of $671 (tax included)

There is also an option of $5k down without MSD and that reduces the payments to $602.

Any help would be appreciated...

kyfdx · March 2014

@bertsant17 said:
Please offer thoughts on this 36month/15k miles lease deal for an automatic 428 coupe with M-Sport package and drive:

-Selling price of $51,540 ($1k over invoice)
-Money factor of .08 (after max MSD)...originally 1.3
-Residual of $32,610...60%
-Monthly payment of $671 (tax included)

There is also an option of $5k down without MSD and that reduces the payments to $602.

Any help would be appreciated...

With an MSRP of $54,350, I get a payment of $615/mo. plus tax. That assumes the $725 acquisition fee is rolled into the CAP cost.

Reconciling that with your quote will require your state and tax rate, and also a breakdown of the amount due at signing.

Making a downpayment, instead of MSDs will result in a lower payment, but will be more money out of your pocket in the long run. You get the MSDs back.

bertsant17 · March 2014

@kyfdx@Edmunds said: With an MSRP of $54,350, I get a payment of $615/mo. plus tax. That assumes the $725 acquisition fee is rolled into the CAP cost.

Reconciling that with your quote will require your state and tax rate, and also a breakdown of the amount due at signing.
Making a downpayment, instead of MSDs will result in a lower payment, but will be more money out of your pocket in the long run. You get the MSDs back.

Thanks for the reply. Fair deal then?

suzyb1 · March 2014

Hi all...trying to lease a 428i in CA & don't wanna get screwed. Please let me know if this is a good deal:
428i w/ M sport package, Navigation, Xenon lights (having them include satellite radio in the deal)
MSRP $47,575
Invoice $44,740
MF .00130
Residual .62
Acq fee $725

36 month lease/ 12k miles/ $5,000 down/ $450 payments/ $29,972.25 purchase option after 36mos
5k down includes cap reduction, license fee, first payment, acq fee and tax on cap

I read about MSD's here but don't really understand it, is it something I could do and benefit from according to the deal above?
Please help asap, thanks!

Michaell · March 2014

@suzyb1 said:
Hi all...trying to lease a 428i in CA & don't wanna get screwed. Please let me know if this is a good deal:
428i w/ M sport package, Navigation, Xenon lights (having them include satellite radio in the deal)
MSRP $47,575
Invoice $44,740
MF .00130
Residual .62
Acq fee $725

36 month lease/ 12k miles/ $5,000 down/ $450 payments/ $29,972.25 purchase option after 36mos
5k down includes cap reduction, license fee, first payment, acq fee and tax on cap

I read about MSD's here but don't really understand it, is it something I could do and benefit from according to the deal above?
Please help asap, thanks!

MSD's are used to reduce the money factor. Your post above shows that the dealer is using the base money factor (.00130) and acquisition fee ($725). Both of these are often marked up by the dealer for extra profit.

How much of the $5K is going to cap reduction? What is the actual selling price?

suzyb1 · March 2014

I don't really know anything about the cap reduction. Any information would help. I believe the actual price is $51k & some change, I don't have the exact # at the moment.

Michaell · March 2014

@suzyb1 said:
I don't really know anything about the cap reduction. Any information would help. I believe the actual price is $51k & some change, I don't have the exact # at the moment.

The cap reduction is similar to a down payment to reduce the amount that is financed through the lease. Unlike a purchase, it's not usually a good idea to put a large amount of money down on a lease - if the car is stolen or totaled, you are out that money.

The quoted payment of $450/mo would be higher if the cap reduction is not part of the transaction - for example, on a 36 month lease, a $1000 cap reduction would reduce the payment amount by about $30/mo.

It's much better to do one or more security deposits (MSD) that will reduce the money factor - unlike a cap reduction, the security deposits are refunded at the end of the lease.

suzyb1 · March 2014

Thanks for the info...so if I wanted to do the deal I mentioned, what do I need to tell the dealer at this point? I don't want my payments to be higher than $450 & I don't want to put any more than $5000 out of pocket up front (prefer $4k or lower). I'd like some of that 5k down to be MSD's so I can get it back but not sure how to tell the dealer.

Michaell · March 2014

@suzyb1 said:
Thanks for the info...so if I wanted to do the deal I mentioned, what do I need to tell the dealer at this point? I don't want my payments to be higher than $450 & I don't want to put any more than $5000 out of pocket up front (prefer $4k or lower). I'd like some of that 5k down to be MSD's so I can get it back but not sure how to tell the dealer.

The best approach would be to roll as much of the fees, etc. into the cap cost, then use MSD's to reduce the money factor.

Not sure that you can get to your target of $450 that way, but the use of MSD's means that you'll get a lower money factor - and you will get that money back at the end of the lease.

bertsant17 · March 2014

@suzyb1 said:
Hi all...trying to lease a 428i in CA & don't wanna get screwed. Please let me know if this is a good deal:
428i w/ M sport package, Navigation, Xenon lights (having them include satellite radio in the deal)
MSRP $47,575
Invoice $44,740
MF .00130
Residual .62
Acq fee $725

36 month lease/ 12k miles/ $5,000 down/ $450 payments/ $29,972.25 purchase option after 36mos
5k down includes cap reduction, license fee, first payment, acq fee and tax on cap

I read about MSD's here but don't really understand it, is it something I could do and benefit from according to the deal above?
Please help asap, thanks!

Where did you find an M sport with an invoice of 44k+?

double_a · March 2014

I was quoted a money factor of .00130. I do not have cash flow problem, but wanted to lease for the flexibility to return the car in three years. I have two questions, 1) I am considering paying the three year lease payments in advance. I keep reading it is a bad idea but I am not sure I understand why? If the car is totaled I would owe the residual plus the payments, is this "risk" any greater than if I just purchased the car?. My second question is the dealer marked down the rate from 001300 to .00090 which is 00040 difference. This seems a little low for a prepay. I do not think my state allows for MSD. Thanks

double_a · March 2014

Please forgive me as I feel like I am talking to myself. If I paid the entire lease upfront the only interest charge should in theory be on the residual value. I back solved for their quoted payment without taxes at 36 months they are charging me 5.52% interest rate. Maybe the dealer is uplifting to force me into 36 flat payments but seems high and/or BMW does not want to promote upfront payments. This is a bad deal.... plus the risk of totaling the car.

Michaell · March 2014

@double_a said:
Please forgive me as I feel like I am talking to myself. If I paid the entire lease upfront the only interest charge should in theory be on the residual value. I back solved for their quoted payment without taxes at 36 months they are charging me 5.52% interest rate. Maybe the dealer is uplifting to force me into 36 flat payments but seems high and/or BMW does not want to promote upfront payments. This is a bad deal.... plus the risk of totaling the car.

5.52% is equivalent to a MF of .0023, so yes, much higher than the standard MF of .00130.

I'm not certain if a pre-pay lease is subject to the same risks as a large cap reduction should the car be stolen or totaled.

Why are you looking to do a pre-pay lease vs. a regular pay-as-you-go lease?

juanmiguel · March 2014

Hey guys, I am new here and I need some help!! I am trying to lease a 428i MSRP 54050, for 36 months and 10k miles per year. Im giving 2500 down plus taxes and all the fees, and they are asking me for $540 a month without taxes. Is it a good deal?? I also asked them about the MSDs and they told me they dont do that. Im in south florida.

Michaell · March 2014

@juanmiguel said:
Hey guys, I am new here and I need some help!! I am trying to lease a 428i MSRP 54050, for 36 months and 10k miles per year. Im giving 2500 down plus taxes and all the fees, and they are asking me for $540 a month without taxes. Is it a good deal?? I also asked them about the MSDs and they told me they dont do that. Im in south florida.

Do you know what money factor they are using?

Usually not a good idea to put money down to reduce the payment .. if the car is stolen or totaled, you are out that money. Try to minimize your out of pocket to as close to the payment amount as possible.

Lastly, Florida is known for some extremely high dealership fees ($500-700), so make sure your selling price is low enough to negate some of that profit.

panfam007 · April 2014

Any changes to RV and MF on 435 in April?

kyfdx · April 2014

@panfam007 said:
Any changes to RV and MF on 435 in April?

435i coupe: .00130 MF and 60% residual for 36mo, 15K/yr

rmt3 · April 2014

I have posted this on a different thread and it may have been the wrong thread. I apologize for the repeat posting, but I am trying to get an answer asap.

I am looking to lease a 428i convertible in the Memphis, TN area with the following: Mineral grey metallic, black Dakota leather, brushed aluminum trim, cold weather package, driver assistance package, premium package, technology package, Harman/Kardon suround sound system.

I have been offered a $1,500 discount from MSRP but when the sales person showed me the lease breakdown it was the following:

Lease term: 36 months/12,000 miles

MSRP $58,450 Sales price: $56,950 (Initial cap cost) Add cap cost: $925 Adjusted Cap cost: $57,875 Base monthly rental: $742.17 Total initial fees: $429 Due at signing: $1,396.75 Money factor 0.00150 Residual: 62% Tax: 7% in TN Total monthly payments: $794.12

I feel I can do better, and I am concerned about the $925 add cap cost. I have been speaking with three different dealers in different parts of the country and there seems to be an issue with car allocations.

Any thoughts would be very helpful. I would appreciate a comment as soon as possible. Thanks RM

kyfdx · April 2014

@rmt3 said:
I have posted this on a different thread and it may have been the wrong thread. I apologize for the repeat posting, but I am trying to get an answer asap.

I am looking to lease a 428i convertible in the Memphis, TN area with the following: Mineral grey metallic, black Dakota leather, brushed aluminum trim, cold weather package, driver assistance package, premium package, technology package, Harman/Kardon suround sound system.

I have been offered a $1,500 discount from MSRP but when the sales person showed me the lease breakdown it was the following:

Lease term: 36 months/12,000 miles

MSRP $58,450 Sales price: $56,950 (Initial cap cost) Add cap cost: $925 Adjusted Cap cost: $57,875 Base monthly rental: $742.17 Total initial fees: $429 Due at signing: $1,396.75 Money factor 0.00150 Residual: 62% Tax: 7% in TN Total monthly payments: $794.12

I feel I can do better, and I am concerned about the $925 add cap cost. I have been speaking with three different dealers in different parts of the country and there seems to be an issue with car allocations.

Any thoughts would be very helpful. I would appreciate a comment as soon as possible. Thanks RM

The money factor is marked up from .00130, and the acquisition fee is marked up to $925 from the base of $725. Those two items are adding about $27/mo, post-tax to your lease payment (close to $1000, total).

rmt3 · April 2014

Thank you so much for your fast response. How about the discount, I can't seem to be able to do better, because the other dealers are weary to quote anything until they have an allocation. I also checked your website and the discount is within your best price recommendations. I am wondering how other members of this forum were able to get the larger discounts for the same car.

kyfdx · April 2014

@rmt3 said:
Thank you so much for your fast response. How about the discount, I can't seem to be able to do better, because the other dealers are weary to quote anything until they have an allocation. I also checked your website and the discount is within your best price recommendations. I am wondering how other members of this forum were able to get the larger discounts for the same car.

Since you are actively shopping for the vehicle, you'll know more about the current market than I do... This dealer gave a $1500 discount, but took back $1000 in the finance office.. You may need to introduce some competition, or at least make your dealer think that you are.

2014 BMW 4-Series Lease Questions

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