Help - Lease Specials

Trying to secure a lease of 3.0 with PP, SP, HSeats, PAssist, USB with Spartanburg delivery. Lease terms are 2yr/10K with Texas sales tax of 6.25%. Would like to get some guidance as to what I have initially been quoted by the Houston dealer. Shouldn't this be in the high $400's based on what I have been reading? Appreciate any guidance as I really want this car!!

MSRP $58124
Residual $46500 (80%)
Cap Cost $53125
Adj Cap Cost $57243.06 (includes $797.75)
MF .00013
Tax $3320.31
Mthly pymt $582.50

Regards,

2007 525 Euro delivery
Member BMW CCA

Texas taxes the whole cap cost (I believe), making the deal not quite so good in the Lone Star State.

You are paying 6.25% of the value of the car in sales tax.

In most states, lease payment amounts are taxed, not the value of the car being leased.

Also, you should consider doing multiple security deposits to lower your Money Factor.

You list .00013 (I assume you meant .00130), so I'm guessing you have access to the loyalty rate reduction of .00030.

Doing 7 MSDs will reduce your MF by another .00049 to a final MF of .00081.

This would reduce your payments, with the same final cap cost, to $531.70. You'd have to give BMW FS use of $3,850 as security for 24 months, but that would save you over $1,200 in payments over the two years for an effective rate of return of about 15%.

(The Texas taxing scheme is what really kills this deal. If Texas taxed leases just on the payments, and you did the MSDs to lower the MF, your payment would be around $416. Even without the MSDs, taxing just the payments would lead to a payment around $468.)

Illinois has the same ridiculous tax scheme as Texas when it comes to leases. How do these states get away with it? It seems like obvious tax fraud by the state. On top of that, in Illinois if you decide to buy your car at the end of the lease you have to pay sales tax AGAIN. Isn't that double-taxation?

I just received a quote from an IL dealer on a 2011 Z4 lease. 24 months, 10K/year, MSRP $54,200, $0 cap cost, with IL taxes included in the monthly payment and it came out to $660/month!!

Thanks for the info. I will consider MSD's and possibly more off the sales price. Might be a bit difficult since it is an order and not sitting on the lot. Did find one that will work but it is a 3.5 but don't want to go any higher with payments.

Regards,

consider doing Euro Delivery and MSD's. Did they also factor in the owner loyalty?

Originally Posted by SANguru

consider doing Euro Delivery and MSD's. Did they also factor in the owner loyalty?

Couple of questions about MF and ED:

Does the owner loyalty MF reduction require that you be a BMWFS customer, or only a current BMW owner?

Can one avoid the 0.0003 bump in MF on ED by making the second payment oneself, or is this obligatory with ED?

Thanks,
abmwc

Originally Posted by abmwc

Couple of questions about MF and ED:

Does the owner loyalty MF reduction require that you be a BMWFS customer, or only a current BMW owner?

Can one avoid the 0.0003 bump in MF on ED by making the second payment oneself, or is this obligatory with ED?

Thanks,
abmwc

1. According to bmwusa.com: "For current BMW Financial services customers..."

2. You cannot avoid the bump in MF for ED

Originally Posted by Kief

1. According to bmwusa.com: "For current BMW Financial services customers..."

2. You cannot avoid the bump in MF for ED

Thanks for the reply.

Wish I had financed through BMWFS on my current car, could have saved about $40/payment. Live and learn (and maybe lease).

Thanks,
abmwc