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2018 BMW M4 Convertible lease- good deal and help backing into numbers

ccohen6410ccohen6410 Member Posts: 30
edited May 2018 in BMW
Am looking at a 36 month/12 lease on new BMW M4 convertible in South Florida. MSRP is $87,935. I was given a quote of $1,174 per month. My questions are 1.) is this a good deal and 2.) if I do my calculations correctly using 56% residual and .00156 money factor (have excellent credit), I get $1,164 per month and then the implied money factor to get to 1,174 is .001635. Base price is $77,200 and then I have the competition package, Heated steering wheel, M Double Clutch Transmission, Neck Warmer, Active Blind Spot Detection, heads up display, Apple Car play and then $995 for destination for total MSRP of $87,935. With $3,000 rebate and then negotiation off sticker price, I got them down to $80,685. Is this a good price? Then there are $3,000 (1st month pmt, taxs, tag, dealer doc,etc) of inceptions added back to get $83,685. Using these numbers and the 56% residual and .00156 money factor I get $34,441 for the depreciation or $956.71/mo and then $207.37 for the Interest Cost and total monthly payment before tax of $1,164 which is $10 less than dealer quoting me.

1.) is this a good price for the M4/good deal? and 2.) is the dealer charging me a slightly higher money factor or am I missing something? Thanks
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    kyfdxkyfdx Moderator Posts: 237,343
    ccohen6410 said:

    Am looking at a 36 month/12 lease on new BMW M4 convertible in South Florida. MSRP is $87,935. I was given a quote of $1,174 per month. My questions are 1.) is this a good deal and 2.) if I do my calculations correctly using 56% residual and .00156 money factor (have excellent credit), I get $1,164 per month and then the implied money factor to get to 1,174 is .001635. Base price is $77,200 and then I have the competition package, Heated steering wheel, M Double Clutch Transmission, Neck Warmer, Active Blind Spot Detection, heads up display, Apple Car play and then $995 for destination for total MSRP of $87,935. With $3,000 rebate and then negotiation off sticker price, I got them down to $80,685. Is this a good price? Then there are $3,000 (1st month pmt, taxs, tag, dealer doc,etc) of inceptions added back to get $83,685. Using these numbers and the 56% residual and .00156 money factor I get $34,441 for the depreciation or $956.71/mo and then $207.37 for the Interest Cost and total monthly payment before tax of $1,164 which is $10 less than dealer quoting me.

    1.) is this a good price for the M4/good deal? and 2.) is the dealer charging me a slightly higher money factor or am I missing something? Thanks

    The base money factor is .00166, this month.

    5% off MSRP is fair, before deducting the rebate.
    Get an itemization of the $3000 of inceptions. That's where the garbage gets added.

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    ccohen6410ccohen6410 Member Posts: 30
    What kind of garbage should I look for that might get added into the inceptions? Of the 3,000 I know that 1,174 is the first month's payment (~40%), the 250 is for new tags (which they are removing because I am transferring tags). So real inceptions now going to be 2,750 of which 1,174 is the first months payment. What might be garbage to look for and how would I know to call them out on it? Thanks
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    kyfdxkyfdx Moderator Posts: 237,343
    ccohen6410 said:

    What kind of garbage should I look for that might get added into the inceptions? Of the 3,000 I know that 1,174 is the first month's payment (~40%), the 250 is for new tags (which they are removing because I am transferring tags). So real inceptions now going to be 2,750 of which 1,174 is the first months payment. What might be garbage to look for and how would I know to call them out on it? Thanks

    Anything that says dealer or doc fee... or, any kind of "electronic filing fee" that is more than $100.

    But, don't waste your time trying to get them to remove the fees... just tell them you want the selling price reduced by the same amount.

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    ccohen6410ccohen6410 Member Posts: 30
    kyfdx, thanks for all your help. Much appreciated. So i haven't gotten a breakdown of the inceptions yet but i pulled up a lease deal from my dealer's website and as part of the $3,690 required as downpayment for this 3 series I am using as an example, they have a fee of $899 for dealer fee and $925 for a bank fee. Are these examples of fees you would recommend me asking them to take off from the selling price if they are in my costs (I suspect they are)? Thanks again
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    kyfdxkyfdx Moderator Posts: 237,343
    ccohen6410 said:

    kyfdx, thanks for all your help. Much appreciated. So i haven't gotten a breakdown of the inceptions yet but i pulled up a lease deal from my dealer's website and as part of the $3,690 required as downpayment for this 3 series I am using as an example, they have a fee of $899 for dealer fee and $925 for a bank fee. Are these examples of fees you would recommend me asking them to take off from the selling price if they are in my costs (I suspect they are)? Thanks again

    The acquisition fee (aka bank fee) is required.

    Yes, $899 dealer fee is just padding.

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    ccohen6410ccohen6410 Member Posts: 30
    So i got the list of the inceptions and here is what they said:
    Doc fee- $899
    Acquisition Fee- $925
    Tire Fee- $5
    Lemon Law- $2
    Battery Fee- $1.50
    Electronic Filing Fee- $176.31
    Tag Fee- $10
    Rental Surcharge- $60
    License Fee- $300

    I live in South Florida. What if any of these are bogus charges? Pretty much all of them seem to be bogus except as you said above the acquisition fee is required.
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    kyfdxkyfdx Moderator Posts: 237,343
    ccohen6410 said:

    So i got the list of the inceptions and here is what they said:
    Doc fee- $899
    Acquisition Fee- $925
    Tire Fee- $5
    Lemon Law- $2
    Battery Fee- $1.50
    Electronic Filing Fee- $176.31
    Tag Fee- $10
    Rental Surcharge- $60
    License Fee- $300

    I live in South Florida. What if any of these are bogus charges? Pretty much all of them seem to be bogus except as you said above the acquisition fee is required.

    Actually, only the doc fee and the amount of the electronic filing fee seem out of line. All of the rest are normal charges, I think.. though I'm not sure of the amount of the license fee.

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    ccohen6410ccohen6410 Member Posts: 30
    Perfect. Thx again. I will get them to try to reduce the price by the Doc fee and the electronic filing fee. Appreciate all the help
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    kyfdxkyfdx Moderator Posts: 237,343
    ccohen6410 said:

    Perfect. Thx again. I will get them to try to reduce the price by the Doc fee and the electronic filing fee. Appreciate all the help

    I wouldn't even tell them why.. .just say you need $1000 less to do the deal.

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    ccohen6410ccohen6410 Member Posts: 30
    Perfect. Will do. Many thanks
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    ccohen6410ccohen6410 Member Posts: 30
    So about to sign a 3y lease deal on new 2018 BMW M4 convertible and want to see if this is a good deal. Is a 3y/12K miles lease. MSRP is 87,935, net cap cost is $79,815.69. Have to put out $3,000 in inceptions (including $1,130 per month for 1st month lease). Monthly payment is $1,066.04 or $849.22 for depreciation and $216.81 for rent charge. This is all pre-tax. I feel that this is a very good deal esp since first offer dealer gave me was only $750 off MSRP. Curious how good of a deal if any it is? Thanks
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    kyfdxkyfdx Moderator Posts: 237,343
    ccohen6410 said:

    So about to sign a 3y lease deal on new 2018 BMW M4 convertible and want to see if this is a good deal. Is a 3y/12K miles lease. MSRP is 87,935, net cap cost is $79,815.69. Have to put out $3,000 in inceptions (including $1,130 per month for 1st month lease). Monthly payment is $1,066.04 or $849.22 for depreciation and $216.81 for rent charge. This is all pre-tax. I feel that this is a very good deal esp since first offer dealer gave me was only $750 off MSRP. Curious how good of a deal if any it is? Thanks

    Seems like a reasonable deal. The money factor is not marked up, so that's good.

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    ccohen6410ccohen6410 Member Posts: 30
    Thank you. Appreciate the help
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