New to leasing? Tips and Facts here

Originally Posted by schley

I always build in an option for the dealer and let them select.

1k over invoice, 625 acquistion, buy rate
800 over invoice, 825 acquistion, buy rate
800 over invoice, 625 acquistion, .0002 mf mark up
600 over invoice, 825 acquistion, .0002 mf mark up

this is an example but the premise is exactly the same.

Forgive my ignorance - what is meant by the "buy rate" Is this the base MF that is later marked up by dealer's. . .if so - how do I find out what the buy rate is for this month for a 328i sedan.

Thank you.

Originally Posted by Peregrinus

Forgive my ignorance - what is meant by the "buy rate" Is this the base MF that is later marked up by dealer's. . .if so - how do I find out what the buy rate is for this month for a 328i sedan.

Thank you.

Yes, it is the rate the dealer starts at and is provided by BMWFS. The rates are posted at the top of this forum.

Originally Posted by LeaseCompare

Yes, it is the rate the dealer starts at and is provided by BMWFS. The rates are posted at the top of this forum.

I really appreciate your posts. Is there any reason BMWFS will not publish their own rates publically?

If it were not for your posts, we'd all be suffering when negotiating leases.

Originally Posted by XJSChris

I really appreciate your posts. Is there any reason BMWFS will not publish their own rates publically?

If it were not for your posts, we'd all be suffering when negotiating leases.

Pretty much the same reason BMW does not post the invoice prices.

I'll accept any premium or ISOM cigars in exchange for providing this information

Originally Posted by LeaseCompare

I'll accept any premium or ISOM cigars in exchange for providing this information

But of course =-)

I'm about to take delivery on a 535xi. 2 questions please:

#1 - Can I be considered a returning BMWFS customer (and potenitally get a better lease deal / lower MF) even though I haven't leased a BMW in 2 years? I have leased several in the past but am now turning in a Land Rover and going back to a BMW. My SA initially said I would be eligible, then was unsure...I'm wondering if he's trying to keep the difference as profit. Queston 1A - is there currently incentives for returnin customers?

#2 - is multiple security deposits available to all customers, or is it regulated by state? When I mentioned it my SA acted like he knew nothing about it.

Thanks in advance - I would greatly appreciate a quick response since my 5er is due in any day.

Originally Posted by JimO'B

#2 - is multiple security deposits available to all customers, or is it regulated by state? When I mentioned it my SA acted like he knew nothing about it.

It is available to all customers, but some states impose limits on the amount you can deposit.

MSD's are not a common practice by a vast majority lessee's (Bimmerfest, et al, excluded), thus, some SA's no nothing about it.

Also, it's not an advertised program, at all. The only official BMW reference I could find was on BMW's Canadian website: http://www.bmw.ca/finservices/leasin...le.asp?lang=en. Also, there is no reference to this program on http://www.bmwusa.com

Ask your SA to call the Retail Communications Center at "1-877-BMW-DLRS (1-877-269-3577), option #6." If you search the net for "Retail Communications Center" you'll find a link, which has the number.

This post details how it works: http://www.bimmerfest.com/forums/sho...d.php?t=221741

Originally Posted by JimO'B

Thanks in advance - I would greatly appreciate a quick response since my 5er is due in any day.

you didn't negotiate any of this (lease rates, et al.) prior to ordering?

Originally Posted by XJSChris

you didn't negotiate any of this (lease rates, et al.) prior to ordering?

I locked in the July base rate of .00285, knowing that it could only go down if BMWFS changed it in Aug or Sept (I see it went down to .0026 in Aug). When we were negotiating my SA said there was some sort of lease incentive for returning customers (I assume it was a lower MF)...I've just read some other threads and it looks like once you're 6+months out of a lease you're no longer considered a returning customer. It also looks like multiple SD's don't fly in NYS. I think as a new customer, one SD is required anyway...just don't know if this gets me down to the base rate or if it will get me a reduction of .00007 on the MF

Originally Posted by JimO'B

It also looks like multiple SD's don't fly in NYS.

you are right, but if you drive accross the river to NJ, you will be able to do MSD's

Originally Posted by BayAreaBMWFan

You can buy extra miles above 15K/year. I think the rate is 15 or 16 c/mile. If you buy them initially you also get a refund of unused miles over 15K/year if you do not use them by the end of the lease. So for a person driving 22.5K miles per year, the extra charge will be around $1100/year. I would be more concerned about driving the car out of warranty on a 3 year lease than the miles.

The dealer I am negotiating my lease with told me today that I can always adjust the miles/yr amount upwards, as long as I still have a year or more left on the lease. So on my 24mo. lease @10k/yr., if I realize in the 11th month that I'm already at 11k or more, I can ask them to up my amount to 12k per year and begin paying the difference with no $ penalty.

Awesome job on the lease spreadsheet. Used it during lease negotiation over weekend. I actually had the spreadsheet open on my laptop on the CAs desk during the negotiation and was able to use it to reach fair agreement with dealer tweaking the deal parameters while ensuring there was fair profit in it for dealer and good value in deal for myself.

Nice job!

To all who have posted good info on leasing...

Valuable Information on this forum. Thank you for spending the time to provide new lessees with such valuable information on getting into leasing.

I forgot what commercial it was from that said "An educated consumer is our best customer". Was it Syms?

Thank you guys...

Great information here. Keep up the good work. Two quick questions:

1) When you pay tax, I assume you pay on what you are using. So it would be the Cap Cost - Residual. Is this correct? Because a dealer said I would pay tax on the depreciation as well as the interest, here in Georgia. In that case, there wouldn't be any benefit of paying the tax upfront vs. rolling the tax into the monthly payment.

2) Is the inception fee the same as the acquisition fee of $625?

Thanks,
Lee

Originally Posted by Atlantachap

1) When you pay tax, I assume you pay on what you are using. So it would be the Cap Cost - Residual. Is this correct? Because a dealer said I would pay tax on the depreciation as well as the interest, here in Georgia. In that case, there wouldn't be any benefit of paying the tax upfront vs. rolling the tax into the monthly payment.

2) Is the inception fee the same as the acquisition fee of $625?

Thanks,
Lee

1) In GA you pay sales tax on the monthly payment, monthly. There is no option to pay it all up front.

2) Yes

I just got my new Z4 on Friday, and I saw this thread today. I didn't know all this stuff was negotiable...

Well...My monthly payment is $427 before tax and I paid $1,700 at the lease signing. All for a car with an MSRP of $38,900.00

How do you think that is?

Great info. Question though....

Originally Posted by Teo

Cap Cost This is the negotiated price of the car. It is basically the Invoice Price plus Dealer Markup, MACO and any fees (see note 1) and less a Down Payment. There really isn't any negotiation that is done here but you should make sure to check this amount so that no unknown charges will make their way into the deal.

Is this a valid formula for the Cap Cost? Just wanted to make 100% sure so I knew my spreadsheet was correct:
((Invoice + Dealer Markup + MACO&Fees) - Down Payment)

Originally Posted by psucelticXI

Great info. Question though....




Is this a valid formula for the Cap Cost? Just wanted to make 100% sure so I knew my spreadsheet was correct:
((Invoice + Dealer Markup + MACO&Fees) - Down Payment)

You would need to make sure that these fees aren't any that are being paid up front. I would also refer to this amount as adjusted cap cost, based on the BMW FS agreement. (cap cost alone would be without the down payment, or "cap cost reduction")

Quark

Originally Posted by mclaren

The way to get a good deal is read this site and look for situations where BMW has bargain buy rates and trunk money ( where the dealer gets money back from BMW ) like right now on the Z4 with a buy rate of .0005 and $1800-$2000 trunk money.

How do you find out about how much "trunk money" is available? Is there any "trunk money" associated with the 328xi sedans at the moment?

I apologize, I'm new to bimmerfest and I see several of you mentioning the leasing spreadsheet. Where is this located, is it on this thread somewhere to download? Thanks for all the previous info that as been posted its very useful as I plan to lease a '08 328i within the next month

Originally Posted by bbuglo20

I apologize, I'm new to bimmerfest and I see several of you mentioning the leasing spreadsheet. Where is this located, is it on this thread somewhere to download? Thanks for all the previous info that as been posted its very useful as I plan to lease a '08 328i within the next month

Welcome aboard! Just a couple threads below this one:

http://www.bimmerfest.com/forums/showthread.php?t=60089

I would like to thank all the great posters who contribute to this thread and this board. As a newbie considering his first Z4, this really is immensely helpful. I have read the strings on lease calculations, downloaded the lease spreadsheet, and communicated directly with BMWFS on getting 7 or 8 MSDs on my lease. I think I understand money factors, residuals cap costs and other innovative terminology.

Now I have a simplistic question. When trying to figure out the best deal can I use just one number, my total expense over the term of the lease, divided by the MSRP (or dealer cost) to determine that? For example, I am considering leasing my Z4 at $369 per month for 36 months, with a $2500 down payment. This is simply $369x36+2500 = $15784 total cost.

Using Ed103's numbers, his total cost is $427*36+1700=$17,072. Ed, I assumed you had 36 months, please correct.
So If Ed and I were looking at identically configured cars driven the same number of miles, I have the lower cost. I really don't need to know the money factor, residual, cap cost, acquisition, inception fee, etc. Of course sales tax must be added.

Originally Posted by Ed103

I just got my new Z4 on Friday, and I saw this thread today. I didn't know all this stuff was negotiable... Well...My monthly payment is $427 before tax and I paid $1,700 at the lease signing. All for a car with an MSRP of $38,900.00 How do you think that is?

By the way, the MSRP on my Z4 is $41,950; it has the sport package, xenon, heated seats and automatic top. Whaddaya think, should I go for it?

(not a shill)
I downloaded Marcus' program to my iPhone and it's been helpful. It's also going to make me focus on some of the details that used to get glossed over.

For all those still new to leasing it is very helpful to do your homework before you even go to the dealership to sign the lease. Here are two forms that i've created which are almost similar to the lease forms you'll see when you go to sign your lease. I recommend you get all the information on the form from your CA. If your CA cannot provide the information, request to speak with someone from finance. If you're able to get all these information and prices you can calculate your entire lease at home and when you go to sign your lease it should be the same as you calculated at home.

***WARNING*** DO NOT SIGN THE LEASE UNLESS YOU UNDERSTAND IT AND YOU ARE COMFORTABLE WITH IT. IF NOT THEN WALK AWAY AND REDO YOUR HOME WORK.

Originally Posted by Ågent99

I dunno if California allows you to pay it all up front but you only pay sale's tax on the time you rent the car...not the full value. If your lease payment is $500 and the sale's tax is 10%, you pay $550/month for your lease/tax. When the lease expires or you transfer the lease, you are done paying the sale's tax.

Sale's tax is county-dependent in California. The South Bay Area (Santa Clara County) currently pays 8.25%.

It's "sales," not "sale's." It's like nails (notice it's "nails," not "nail's")...Jeez!