Buying or Leasing a former courtesy car from BMW dealership

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• kyfdx Moderator Posts: 236,760

  June 2018

  shredline said:

  I'm looking at buying or leasing a 2018 430i GC with 8k miles on it (former courtesy car). I see a purchase interest rate from BMW of .9%. Should I be getting a CPO warranty also as the car is at a BMW Dealer? If I lease the car, what is the MF and residual? The MSRP is $46,895, but I'm getting it for much less than that. Thanks for your help

  Once a loaner gets over 7500 miles, the residual drops by 6% vs. a new unit, and is further reduced by $0.25/mile. That doesn't mean it can't be leased, but it means the discounts have to be huge.
  
  On a purchase, there is a $3000 incentive on this vehicle, but that doesn't apply to the lease. Chances are, you'll do much better buying the vehicle. It's the dealer's choice whether to CPO the vehicle, or not.
  We don't have the APR information.

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• shredline Member Posts: 3

  June 2018 edited June 2018

  The purchase price would be $33,745. They would give me .9% APR. With no money down, the 60 month payment would be $642+taxes. $1100 drive off. But only give me the remainder of the warranty from the original date when car went into service.
  
  On a lease (36/10k) (47% residual), the monthly payment is $448+tax. The MF quoted was 0.00166 - my credit rating is 847. I figured I'm paying the difference between the purchase price and the residual value ($21,894). I added up 36 payments of $448x36 = $16,128+ residual ($21,894) = total cost of $39,271 after 3 years (this includes taxes on the payments and none on the residual).
  
  What am I missing?
  
  Thanks for your help
  
  

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• shredline Member Posts: 3

  June 2018 edited June 2018

  Does it sound like they put the 3k in incentives in the purchase price?
  

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• kyfdx Moderator Posts: 236,760

  June 2018

  shredline said:

  The purchase price would be $33,745. They would give me .9% APR. With no money down, the 60 month payment would be $642+taxes. $1100 drive off. But only give me the remainder of the warranty from the original date when car went into service.
  
  On a lease (36/10k) (47% residual), the monthly payment is $448+tax. The MF quoted was 0.00166 - my credit rating is 847. I figured I'm paying the difference between the purchase price and the residual value ($21,894). I added up 36 payments of $448x36 = $16,128+ residual ($21,894) = total cost of $39,271 after 3 years (this includes taxes on the payments and none on the residual).
  
  What am I missing?
  
  Thanks for your help
  
  

  That money factor generates the finance portion of the lease payment.
  That's $2270 over the life of the lease.
  
  Also, have you done the math on the financing?
  $33,745 at 0.9% APR for 60 months is $575.38/mo, not $642/mo.
  You'd need $3900 more principal to get to $642/mo.

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• kyfdx Moderator Posts: 236,760

  June 2018 edited June 2018

  shredline said:

  Does it sound like they put the 3k in incentives in the purchase price?
  

  I'd guess the incentive is included in the quoted price.
  But, it's hard to know, since your numbers don't add up.
  
  

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