2008 335i

[comotu1]

Wanted you guys to weigh in on this deal that I have, can you please let me know if this a good.
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'08 BMW 335 Coupe, Space Gray with Gray interior, Premium package, Sport Package, Park-Distance Control, Automatic Transmission, Navigation, 19" Wheels, iPod, Satellite Radio. MSRP is $52,295.00 and the price to you is $48,685.00. The Lease arrangement is based on (36) months and 12,000 miles per year, Drive-Off is $2,034.00 and the Monthly Payment is $740.93 Including Tax.

[ianthegreat]

I'm not all thaaaaat experienced, but i think that's a bit much.

[Wolf33]

i think with the options you got...its a pretty good deal

[paximperium]

It's above invoice. Ask the dealer how much is the invoice cost.
If you get it around or below invoice, it's a good deal. I got mine for $1000 below invoice.

[SirSterlingGray]

its a 335.
give up the auto and get a stick shift.

i think its too late to lease cars. the residuals are shot. i looked at leases back in april and residuals were much better. they've gone down 5 or 6% which kills the payment.

i think 740 is too much for any car but if you have to have a bimmer, tough is out. you'll get a better deal in the spring.

[Pleepleus]

Wanted you guys to weigh in on this deal that I have, can you please let me know if this a good.
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'08 BMW 335 Coupe, Space Gray with Gray interior, Premium package, Sport Package, Park-Distance Control, Automatic Transmission, Navigation, 19" Wheels, iPod, Satellite Radio. MSRP is $52,295.00 and the price to you is $48,685.00. The Lease arrangement is based on (36) months and 12,000 miles per year, Drive-Off is $2,034.00 and the Monthly Payment is $740.93 Including Tax.

No, on the surface, this does not look like a good deal at all. Without knowing the Gross Capitalized Cost (GCC), the money factor (.00165, perhaps?), and the residual (should be 58% for 36months/12kmpy), it is hard to determine exactly what is going on. Though, I suspect he is giving you a decent discount off MSRP and then marking everything in the lease up - including the money factor, acquisition fee, etc.

You need to get a breakdown of the entire deal and also get a breakdown of what the $2034 drive-off is comprised of. Based on assumptions about the deal, the monthly payment should be closer to 680 per month, considering how much off MSRP he is giving you.

[comotu1]

Thanks for the feedback, I will be asking these questions and get back to you guys!

[berkeley223]

why lease when there is .09% financing? free money
price seems high, you should be able to get at or below invoice at this point

[comotu1]

Below is the response I got from the dealer

===Begin===

The GCC is $48,729.33

Money Factor is 1.85, which is at our ****rate. If you are presently a BMW Financial customer or arranged for a sale or lease of a BMW through another lender then the Money Factor is lower.

Residual is 56%

The Drive-Off figure of $2,034 is composed of the First Monthly Payment, DMV Fees, Bank Acquisition Fee (which is what the bank or financial institution charges to draw up the papers) and some rather minor State and County Fees.

===END===

What do you guys think?

[wyb]

Money factor explained:

http://www.leaseguide.com/Glossary/money-factor.htm

They say 1.85 = 0.00185

http://www.bimmerfest.com/forums/showthread.php?t=302967

The current MF is: 0.00170 as the "buy rate" - that's the MF rate offered by BMWFS. That equates to an interest rate of 4.08% Perhaps they meant 0.00185 - which means they are marking up the interest rate to making additional profit of 0.00015 or approximate $750 of hidden profit (from memory - which is shot today). I think there is a max addition allowed by BMWFS of 0.0002; so they are going for 75% of their max markup on that.

You need a detailed breakdown of the fees. I would bet they are padding the lease acquisition fees, which are costed at $625 - paddable to $825 I recall. I am no lease expert, but one will be along very shortly! ;)

[Pocket Rocket]

The invoice price on the car you describe is $48,125. They are marking up $500. Which is fair. If you can qualify for 0.9 interest rate, wouldn't you rather buy it? Its a much better way to go! In the end the lease will be more costly...especially if you surpass the 12,000 miles per year (36,000 mi / 3 Years).

FYI - the car you described w 19" wheels is hard to come by. I have the same car and paid $1000 over invoice just last week. It took me a while to locate it. It will not last... with the low interest rate they are moving. my 0.02

[bmwKbiker]

Below is the response I got from the dealer

===Begin===

The GCC is $48,729.33

Money Factor is 1.85, which is at our ****rate. If you are presently a BMW Financial customer or arranged for a sale or lease of a BMW through another lender then the Money Factor is lower.

Residual is 56%

The Drive-Off figure of $2,034 is composed of the First Monthly Payment, DMV Fees, Bank Acquisition Fee (which is what the bank or financial institution charges to draw up the papers) and some rather minor State and County Fees.

===END===

What do you guys think?

This is MF would be lower if you put down a security depost. ****rate MF is 0.00170 (http://www.bimmerfest.com/forums/showthread.php?t=302967), but if you do not put down any security deposit there is a money factor adder which is 0.0015 (I think) which would push it back to 0.00185. The dealer isn't listing this in the drive-off, but I would chose the SD and lower MF any day.

You can force this issue:
Mr. CA thanks for offering the lease at the the buy rate, but on second thought I would like to put down a security deposit so I would like the quote to include a SD in the drive-off figure and the accompanying rate reduction to 0.00170. You really should ask him to disclose the bank acquistion fee (LAF). Its base rate is $625, with an up to $200 dealer mark-up (pretty common). $825 isn't a rip-off, but it does represent a $200 mark-up for the dealer. 1st time I leased the I got a bull story about $825 was the LAF in California. Because its not quoted, good bet they are expecting/charging $825 for it.

While you are at it the MSD program gives you an opportunity to further reduce the MF by an additional 0.0007 for each additional Security Deposit up to 7 addtional MSDs.

[Pleepleus]

Below is the response I got from the dealer

===Begin===

The GCC is $48,729.33

Money Factor is 1.85, which is at our ****rate. If you are presently a BMW Financial customer or arranged for a sale or lease of a BMW through another lender then the Money Factor is lower.

Residual is 56%

The Drive-Off figure of $2,034 is composed of the First Monthly Payment, DMV Fees, Bank Acquisition Fee (which is what the bank or financial institution charges to draw up the papers) and some rather minor State and County Fees.

===END===

What do you guys think?

wyb is right. By 1.85, they mean 0.00185. My sales guy did that, too. The base rate is indeed 0.0017 right now. If you are a first-time purchaser/lessee, then they mark it up 0.00015 (to 0.00185, in this case) unless you want to put down a security deposit (I did not). So, if your drive-off includes a security deposit, then consider it markup. If not, then they are essentially giving you the buy rate, which is good. They are allowed to mark the MF up by 0.0004, for a total of 0.0021 (or 0.00225).

So, I didn't realize the residuals dropped AGAIN - now at 56%. If they were still at 58%, your monthly payment would go down $30. You could opt to put a security deposit down and that would reduce your payment to ~$728/month.

However, at this point, I would say the lease is not a good way to go. You could purchase the car (assuming ~$52500 OTD - including tax, not including the same $2000 that you could put towards it) on a 5-year, 0.09% loan and your payment would be roughly $875 per month. With the residuals so low right now, and if you can swing the extra ~$130 per month, purchasing might be the best way to go.

[comotu1]

The invoice price on the car you describe is $48,125. They are marking up $500. Which is fair. If you can qualify for 0.9 interest rate, wouldn't you rather buy it? Its a much better way to go! In the end the lease will be more costly...especially if you surpass the 12,000 miles per year (36,000 mi / 3 Years).

FYI - the car you described w 19" wheels is hard to come by. I have the same car and paid $1000 over invoice just last week. It took me a while to locate it. It will not last... with the low interest rate they are moving. my 0.02

Did you purchase/lease?

[Pocket Rocket]

If the question is directed to me, I did purchase.

With .9% for 60 MO its free cash. I only end up paying $1180 in interest over 5 yrs.
I put down was $2000 and rolled everything else into the loan including taxes and fees.

Thanks BMWNA:thumbup: They just want to move cars before the '09s start to hit the dealers.

[kevinbahnz]

that is very high for a lease. you could buy/finance for less than that. you can get the price to go down lower than that also especially for an 08.