2014 BMW 4-Series Lease Questions

bmwafficiando · April 2014

@bmwafficiando said:
Would like to share the best offer I received so far on a 435i convertible. I tried other dealers in NJ, but this one beat the others by a wide margin.

The options I selected are the following: m sport package, cold weather, driver assistance, premium, navigation.

10k miles/36 month. Residual 63%, base MF = 0.00130

MSRP (including all options): $64,075
Selling price: $61,524 (no cap cost reduction)
Residual value: $40,0367
Money factor after 7 MSDs: 0.00081
Sales tax (NJ): 7%
Sales tax on lease: $1,740
Monthly lease payment (excluding tax): $680
Monthly lease payment (including tax): $727

Please do let me know if this seems like a decent deal. The other dealer in NJ that I went to was asking $858 first, but then came down to $798 (and refused to budge further). He was using the same money factor and MSDs, but refused to lower the selling price.

If anyone has any buying / negotiating experiences to share (particularly in the NJ area), I would appreciate it if you would let me know.

Thank you for your time.

Hello all... just checking in to see if anybody has any other buying / leasing experiences to share with me on the 435i convertible. There isn't an awful lot of information out there on this particular model, hence wanted to check if what I was quoted is reasonable compared to what others are seeing.

jmcginn84 · April 2014

Bump to the question above me! I am looking for 15k miles a year for 36 months....M sport package, coral red interior, and technology. Hoping to do a "one-pay" and pay it all up front. What would be a great offer I should push for in the Boston area?

Michaell · April 2014

@jmcginn84 said:
Bump to the question above me! I am looking for 15k miles a year for 36 months....M sport package, coral red interior, and technology. Hoping to do a "one-pay" and pay it all up front. What would be a great offer I should push for in the Boston area?

.00130 is the MF and 60% residual for 435i convertible.

jmcginn84 · April 2014

My best offer so far is $30,500 for 15k miles per year 36 months....MSRP of 66k

Michaell · April 2014

@jmcginn84 said:
My best offer so far is $30,500 for 15k miles per year 36 months....MSRP of 66k

Not sure if there is a MF discount for a one-pay - my co-host is more familiar with BMW leases; he might have more of an idea.

Your $30,500 one-pay works out to just over $847/mo in a 'traditional' lease.

Using the base MF and residual I quoted above, the cap cost would be in the neighborhood of $63K to get to that monthly number. Not sure how much more you could negotiate the price downward.

kyfdx · April 2014

@jmcginn84 said:
My best offer so far is $30,500 for 15k miles per year 36 months....MSRP of 66k

BMW has a discount of .00080 for one-pay leases, but I'm not sure you can take it off of the subvented .00130 MF. It may only be available on the standard lease rate, in which case, it wouldn't be worth much at all..

The hard part is knowing how MA handles sales taxes on this lease.

Without tax, assuming a $66K MSRP and $63K selling price, and assuming you can get the MF down to .0005 with using the ONE-pay discount, I get a price of around $26K + tax. That seems like a long way from $30,500, but not if MA taxes the full selling price on a lease. If tax is 6% of $63K, then the price difference is less than $1000.

jmcginn84 · April 2014

The tax in Ma is off of each payment not the total MSRP of the car....

kyfdx · April 2014

In that case, the deal doesn't look so great.. I understand the desire to use cash that is sitting around earning virtually nothing.. .but, I think I'd use the MSD program, and negotiate a straight lease... It simplifies things.

Of course, there are no incentives on the new 4-series, so you may not get a great lease payment, either way...

fyk1985 · April 2014

Hi I am wondering whether there is upcoming bmw incentive for 2014 435xi coupe. I have customized a build with MSRP 64K. The dealer is unwilling to go below invoice (59K) + 1000. The MF and Residual are both ok (000130 and 63%). I basically need the car before early Sep to replace my current lease, should I just wait for two months or is it possible to make dealer agree to apply any factory incentive at the time of delivery?

Thanks in advance. I learned a lot by going over this awesome thread:)

kyfdx · April 2014

If you are ordering a car, a BMW dealer can lock your numbers for 60 days, and still agree to use the numbers at time of delivery, assuming they are better. But, you can't pick and choose the elements of the lease program. If they are offering a $1000 incentive, to get that incentive you have to use the lease numbers that go along with that program. If they are offering you $4K off of MSRP, the deal isn't likely to get much better than that.

drmanhattan · May 2014

Do you have the lease numbers for a 2015 435i Gran Coupe (15k miles, 36months)? Also for 435i convertible?

My situation is that I need 20k miles/year. I was thinking of going for the 15k/year lease, and paying $0.16/mile as an overage beyond the negotiated lease prior to the end of term. The $0.16 that BMW offers is lower than other brands.

drmanhattan · May 2014

Also, do you have the numbers for the 2015 428i Gran Coupe, and 2015 428i xDrive convertible? 15k miles/36 months

kyfdx · May 2014

We don't have the new numbers for May, at this time.

drmanhattan · May 2014

@kyfdx@Edmunds said:
We don't have the new numbers for May, at this time.

thanks for the response.

for someone who needs high mileage such as myself (20k/yr), what do you recommend to do in terms of lease setup? Go for 15k/yr then pay $0.16/mile over?

kyfdx · May 2014

@drmanhattan said:
Do you have the lease numbers for a 2015 435i Gran Coupe (15k miles, 36months)? Also for 435i convertible?

My situation is that I need 20k miles/year. I was thinking of going for the 15k/year lease, and paying $0.16/mile as an overage beyond the negotiated lease prior to the end of term. The $0.16 that BMW offers is lower than other brands.

2014 435i Convertible:

.00130 MF and 60% residual for 36mo, 15K/yr. $1000 option credit cash.

.00133 MF and 60% residual for the 2015 435i Gran Coupe.

I would do the 15K/yr.... and then purchase miles with about 8 months to go... when you have a handle on exactly what you need... They will even amortize that amount over your remaining payments.

vk3 · May 2014

What is the MF and Residual on 2014 428 xdrive convertible and is the MF negotiable? Price of car with MSRP is ~65500 and invoice is ~60800. Do dealerships negotiate price to invoice/below invoice on new vehicles and what would be considered a fair price for the NY/NJ region. Tx

kyfdx · May 2014

@vk3 said:
What is the MF and Residual on 2014 428 xdrive convertible and is the MF negotiable? Price of car with MSRP is ~65500 and invoice is ~60800. Do dealerships negotiate price to invoice/below invoice on new vehicles and what would be considered a fair price for the NY/NJ region. Tx

.00130 MF and 60% residual for 36mo, 15K/yr lease. $1000 option credit cash.

You might see close to invoice pricing, taking into account the $1000 manufacturer incentive.. but, on a $65K vehicle, you'll likely still be above invoice.

mds2015 · May 2014

What are the May MF & residual % for a 2014 428 x-drive convertible w/ 10,000 miles? Also, are there specific options that the $1,000 credit applies to or any options? Thanks

Michaell · May 2014

@mds2015 said:
What are the May MF & residual % for a 2014 428 x-drive convertible w/ 10,000 miles? Also, are there specific options that the $1,000 credit applies to or any options? Thanks

.00130 and 63% for 36mo / 10K miles per year.

$1000 option credit can be used against any options.

vk3 · May 2014

Is the tax calculated on the sale price? How do they break the tax down? How can I tell if the deal I am getting is good one. I am looking at a 36 month, 12K/yr lease and the MF I am being told is .00130 with a residual of 62%. This is for a 428i xdrive convertible. The monthly price ranges from $760 to $840 per month depending on how much is the upfront fees. The fees are also not consistent.

Michaell · May 2014

@vk3 said:
Is the tax calculated on the sale price? How do they break the tax down? How can I tell if the deal I am getting is good one. I am looking at a 36 month, 12K/yr lease and the MF I am being told is .00130 with a residual of 62%. This is for a 428i xdrive convertible. The monthly price ranges from $760 to $840 per month depending on how much is the upfront fees. The fees are also not consistent.

The MF is not being marked up, so that's good.

Have the dealers break down each of the fees for you. If they won't, I wouldn't buy from them.

kyfdx · May 2014

Tax rules depend on your state... which state?

vk3 · May 2014

NY/NJ

Michaell · May 2014

@vk3 said:
NY/NJ

Only the lease payment is taxed each month.

jonnyzlio · May 2014

I'm closing this deal tomorrow, and would really appreciate any input, I reviewed almost all the deals posted here before going for this!
Bmw 428I xdrive 12k / yr
Convenience package? (Dunno exactly what that is! )
Winter package
Sport line
dakota leather and metallic paint
Navigation package
MSRP 51400
Negotiated price 47750
MF 0.000130
RV 62%
Monthly payment of $572 with 0 down,no MSDs and taxes rolled in lease, fees, title are $1500 due at signing, any thoughts? Help much appreciated!

kyfdx · May 2014

The numbers add up.. I get $544/mo. + tax.

MSDs would knock about $41/mo. off the after-tax payment.

I don't know what the convenience package entails, either..... they don't show it as an option on the BMW website, but it's possible that it was a different configuration on early builds.

jonnyzlio · May 2014

null
It's actually the premium package ,I misunderstood

searoll923 · May 2014

Hi @kyfdx@Edmunds‌,

Few questions:

-I am wondering if I could get a residual and money factor for a 435 2-door coupe based on a 3 year lease @ 12K miles per year?

-Would also like to have m-performance parts installed at port. I am aware that these options are residualized in a lease, but how significant are they? According to the quote I received, it seems that I am being upcharged for these e.g. $760.00 for black kidney grilles while the list MSRP is $600 - is this normal to expect?

-My lease will expire in September, am I correct to assume that I may take advantage of the $1000 option credit in addition to the pull-ahead? Are they using any type of conquest incentive at this time [relative in the house has a Mercedes equivalent].

Thank you so much

kyfdx · May 2014

@searoll923 said:
Hi kyfdx@Edmunds‌,

Few questions:

-I am wondering if I could get a residual and money factor for a 435 2-door coupe based on a 3 year lease @ 12K miles per year?

-Would also like to have m-performance parts installed at port. I am aware that these options are residualized in a lease, but how significant are they? According to the quote I received, it seems that I am being upcharged for these e.g. $760.00 for black kidney grilles while the list MSRP is $600 - is this normal to expect?

-My lease will expire in September, am I correct to assume that I may take advantage of the $1000 option credit in addition to the pull-ahead? Are they using any type of conquest incentive at this time [relative in the house has a Mercedes equivalent].

Thank you so much

.00130 MF and 62% residual. $1000 option credit.

You should be able to use the pull-ahead program, and still get the $1000 option credit.

I'm not familiar with port-installed prices.. If the kidney grills list for $600, is that just the parts, or is installation extra? If the MSRP is $600 installed, then I would insist on that price from your dealer.

searoll923 · May 2014

@kyfdx@Edmunds‌ - Thank you for getting back to me so quickly.

You are right, it may just be MSRP for the part itself.

One verification that just occured - am I correct in assuming that I could use MSDs to lower the .00130 MF?

Michaell · May 2014

@searoll923 said:
kyfdx@Edmunds‌ - Thank you for getting back to me so quickly.

You are right, it may just be MSRP for the part itself.

One verification that just occured - am I correct in assuming that I could use MSDs to lower the .00130 MF?

Absolutely - you can make up to 7 security deposits to reduce the MF by .00049 to .00081.

toekneechin05 · May 2014

Hi @kyfdx@Edmunds‌

When you make MSD, you get all of back at the end of the lease?

I was quote .0013 MF and 60% on a 428i 15k/36 months. Are these numbers in line for May?

kyfdx · May 2014

@toekneechin05 said:
Hi kyfdx@Edmunds‌

When you make MSD, you get all of back at the end of the lease?

I was quote .0013 MF and 60% on a 428i 15k/36 months. Are these numbers in line for May?

Yes, those numbers are accurate.

Your security deposit is independent of your lease-end charges... The MSDs are no different than any other security deposit. Entirely refundable.

vk3 · May 2014

Hi, if a dealership is marking up the MF but is giving me a very good selling price which is lower then the other dealerships and my monthly lease payment is also coming out lower then should the higher MF make any difference to me. How does the high MF affect me? They have said they would not reduce the MF.

The other deals I have seen are giving me a MF of .00130 but this one is .00150 however the monthly price I am paying is very low. The sale price of $59000 on this deal is lower then the others. This is for a 428i xdrive convertible.

Here are the numbers

MSRP is 64600
Invoice is 59555
Residual is 62%
MF is .00150
Sale price $59000

Lease term: 3 year/12K miles per year

Lease payment is $739 per month including tax

Tax is $1982.65 including supplemental tax

$725 Acquisition fee
$299 Doc fee
$350 DMV fees
1st month payment due at signing
The Total of the above comes to $2113 due at signing.

jks24 · May 2014

If you dont mind me chiming in here, why are you paying tax twice on a lease? You should only be paying tax on the monthly payment,not a supplemental tax? If it is a lease, I would basically be concerned with picking the lowest price per month. Minus that extra tax!

kyfdx · May 2014

@vk3 said:
Hi, if a dealership is marking up the MF but is giving me a very good selling price which is lower then the other dealerships and my monthly lease payment is also coming out lower then should the higher MF make any difference to me. How does the high MF affect me? They have said they would not reduce the MF.

The other deals I have seen are giving me a MF of .00130 but this one is .00150 however the monthly price I am paying is very low. The sale price of $59000 on this deal is lower then the others. This is for a 428i xdrive convertible.

Here are the numbers

MSRP is 64600
Invoice is 59555
Residual is 62%
MF is .00150
Sale price $59000

Lease term: 3 year/12K miles per year

Lease payment is $739 per month including tax

Tax is $1982.65 including supplemental tax

$725 Acquisition fee
$299 Doc fee
$350 DMV fees
1st month payment due at signing
The Total of the above comes to $2113 due at signing.

You are right... .all else being equal (term, mileage, vehicle), the lowest total cost is what's important.

gnjago · May 2014

Hi,

I am ordering a 435i coupe, and with options it comes to $64375 (MSRP) in California.
Currently there is just a $1000 options discount. Is there anything else? Are there any other rebates or is the dealer getting any incentives? I will finalize this week, and planning to negotiate to $60000 excluding the $1000 options discount. Is it too much to ask?
Also, the residual is 63% for 36 months and 10k miles.

Also, I am not able to understand the concept of MSD?

djzhu · May 2014

I have the following deal in Seattle. 435i xdrive w/M sport, cold weather, driver assistance, dynamic handling, and premium package. MSRP- $58300, offered $53,990 ($800 above invoice, $1000 options credit), $925 acquisition, $150 doc.

$637/mo including taxes on 10k/36mo, MF 0.00081 w/7MSD's, 63% residual. Thoughts?

kyfdx · May 2014

@gnjago said:
Hi,

I am ordering a 435i coupe, and with options it comes to $64375 (MSRP) in California.
Currently there is just a $1000 options discount. Is there anything else? Are there any other rebates or is the dealer getting any incentives? I will finalize this week, and planning to negotiate to $60000 excluding the $1000 options discount. Is it too much to ask?
Also, the residual is 63% for 36 months and 10k miles.

Also, I am not able to understand the concept of MSD?

I'm not certain of the market for the new 4-series coupe, but I'd say that a 7% discount, plus the $1000 credit, might be at the very low end of what you can get.. no harm in trying!

The MSD (multiple security deposit) program gives you a discount from the money factor (.00007) for each additional deposit you make, up to 7 total deposits. Resulting in a total money factor decrease of .00049, if you make the full amount. Just like any other security deposit, the amount is your payment, rounded up to the next $50 increment. So, if your payment was $659/mo, each additional deposit would be $700 ($4900 if you made all 7).

Is it a good deal? Give the parameters you've outlined above, you'd save about $50/mo. on your lease payment using MSDs. That's an after-tax return of over 12% on $4900 (which you get back at end-of-lease, just like any other security deposit).

kyfdx · May 2014

@djzhu said:
I have the following deal in Seattle. 435i xdrive w/M sport, cold weather, driver assistance, dynamic handling, and premium package. MSRP- $58300, offered $53,990 ($800 above invoice, $1000 options credit), $925 acquisition, $150 doc.

$637/mo including taxes on 10k/36mo, MF 0.00081 w/7MSD's, 63% residual. Thoughts?

What is tax in WA, about 9%? Looks very good.... they've marked up the acq.fee by $200, but given the overall deal, I wouldn't worry about that...

searoll923 · May 2014

I know this isn't common, but what are the current residuals and MF for 2 year leases on the 435xi [10k and 12k miles per year] as well as the M4 [same mileage]?

kyfdx · May 2014

@searoll923 said:
I know this isn't common, but what are the current residuals and MF for 2 year leases on the 435xi [10k and 12k miles per year] as well as the M4 [same mileage]?

.00130 MF and 69%/68% residual. $1000 option credit.

2015 M4: .00133 MF and 64%/63% residual

mdoctor1 · May 2014

@kyfdx@Edmunds‌ - have been reading your comments, and would appreciate your insight. I'm new to this and looking to lease a 2014 435i Coupe in Miami, FL.. MSRP $50,075... his initial offer was only $1k off which I'm sure can move on, but what concerned me a bit was MF of 0.0017 and resid of 63%. Coming out to $660 a month, which seems pretty high to me. Any idea why MF is so high? What are my levers to pull here in negotiation?

Edit: This is a 36 month lease / 10k miles

Thanks

kyfdx · May 2014

@mdoctor1 said:
kyfdx@Edmunds‌ - have been reading your comments, and would appreciate your insight. I'm new to this and looking to lease a 2014 435i Coupe in Miami, FL.. MSRP $50,075... his initial offer was only $1k off which I'm sure can move on, but what concerned me a bit was MF of 0.0017 and resid of 63%. Coming out to $660 a month, which seems pretty high to me. Any idea why MF is so high? What are my levers to pull here in negotiation?

Edit: This is a 36 month lease / 10k miles

Thanks

The dealer is marking up the money factor for extra profit.. the maximum markup allowed.. That, and the selling price are your two negotiable variables.

[Deleted User] · May 2014

Question concerning tax. The dealer is adding in the tax to the net cap cost, meaning the finance charge is being applied to the tax also. Seems to me the tax should be calculated after the monthly payment is determined. Unusual? Thanks in advance.

Michaell · May 2014

@georgenj said:
Question concerning tax. The dealer is adding in the tax to the net cap cost, meaning the finance charge is being applied to the tax also. Seems to me the tax should be calculated after the monthly payment is determined. Unusual? Thanks in advance.

Not in NJ - that's how it works there for leases.

jerryhze · May 2014

Hello, do you have the numbers for a 2015 M4, 24 month, 10k/12k miles?

kyfdx · May 2014

@jerryhze said:
Hello, do you have the numbers for a 2015 M4, 24 month, 10k/12k miles?

.00133 MF and 64%/63% residual.

tvmp · May 2014

Is the residual a percentage of the negotiated price or the msrp?

kyfdx · May 2014

MSRP

2014 BMW 4-Series Lease Questions

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