I got this lease offer on a 2012 328i with Technology Package. WAYYYY too much for a down, right? Please evaluate. Thanks.
MSRP: $42,845.00
Initial Cap Cost: $34,946.35
Residual: 57%
Adjusted Cap Cost: $31,074.26
Customer Cash Down: $5700
Cash Cap Reduction: 3872.09
Money Factor: 0.001115
Term: 36 months
Mileage Adjustment: $1860.00
Sales Tax: 1404.82
Ac Fee Tax (9%): 83.25
Base Monthly Rental: 298.14
Monthly Tax: $26.83
Monthly Payment: $324.96
Total Drive Off Fees: $1041.00
Total Cap Reduction: 3872.09
Total Drive Off (W): $5700.00
I'm looking to lease a '12 or '13 328i with iDrive...not really looking for the full technology package, but the one above was in a red tag sale section.
That is too much for a down payment. If your car gets totaled while you have it, you lose that down payment (cap cost reduction). Look into making multiple security deposits (MSD). I would suggest posting this in the dealer forum. I'm sure others can add as I my knowledge on leases is minimal
You should read the stickies in the Ask-A-Dealer subforum and understand how leasing works, why a large cap cost reduction is a bad idea, and how MSDs are a much better use of upfront money.
You will also find info on bimmerfest sponsors such as Jon (BF founder) and Greg P who will probably give you a better deal.
PS: Is this car a loaner/demo/exec car with several thousand miles?
You should read the stickies in the Ask-A-Dealer subforum and understand how leasing works, why a large cap cost reduction is a bad idea, and how MSDs are a much better use of upfront money.
You will also find info on bimmerfest sponsors such as Jon (BF founder) and Greg P who will probably give you a better deal.
PS: Is this car a loaner/demo/exec car with several thousand miles?
Thanks. I'm not sure if the car was a loaner/demo/exec car, but it has 6000 miles on it.
I told the guy I didn't want to have a high down in case the car was totaled, but he said, "No, if it's totaled, insurance covers it!" He's wrong, right?
Insurance will cover it if you have little or big down payment. However in both cases the insurance isn't going to cut you a check for your down payment. So, it makes sense to have as little money as possible (cap cost reduction) tied up in the lease. If the car is worth more than what you have paid and it is totaled, GAP covers the difference and that insurance is included with your lease.
You should go read those stickies the other poster recommended otherwise you will be taken for a ride.
"covers it" is a term open to interpretation...OP you are 100% correct that if your car is totaled insurance will NOT COVER "it" where "it" equals "my deposit"... So the salesman is and idiot, or is being misleading..
Agree with all the above statements - always put as little down on a lease as you can better to pay it a little at a time then give them a big pile up front, that will not help you in any way. Check out Multiple Security Deposits to help with the money factor and as stated above, usually you will get a better deal on a new vs slightly used car as the depreciation and money factors work different and incentives are usually better as BMW wants to move new cars - used cars only help the dealers, so less incentives.
There's no free lunch. Either pay up front or thru monthly. I agree deposit the down and apply to ur monthly. I just ordered a 2013 and got cap reduction with holiday and other credits for 2550.
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Related Threads
?
?
?
?
?
BimmerFest BMW Forum
11.4M posts
753.1K members
Since 2001
A forum community dedicated to BMW owners and enthusiasts. Come join the discussion about Bimmerfest events, production numbers, programming, performance, modifications, classifieds, troubleshooting, maintenance, and more! Bringing the BMW community together.