Leasing 2012 328i...$5700 down?? Please evaluate. Thanks!

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?

Originally Posted by 1985mb

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?

Hi,

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.

Sent from my HTC VLE_U using Bimmer App

"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..

Way too much. I'm in process of very similar lease.. PM me and I'll give you what I'm getting.

Originally Posted by 1985mb

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?

^^this.


So, we've already established a big down payment is a bad idea. Now, regarding insurance - with a big down payment you could get some of it back, but you would probably lose a big portion of it and you are assuming that risk unnecessarily. GAP insurance is automatically included on all BMWFS leases.

Say you make the $5,700 down payment. The car is totalled next week. The payoff on the lease is $40,000, the car is valued by insurance at $43,000. BMWFS gets a check for $40,000. You get a check for $3,000, but not $5,700. You lost $2,700.

Say you make a $0 down payment. The car is totalled next week. The payoff on the lease is $45,200. Insurance values the car at $43,000. BMWFS gets a check for $43,000. There is a $2,200 difference between the lease payoff and the insurance settlement amount. BMWFS GAP coverage takes care of the extra $2,200. You don't lose anything.

Originally Posted by futurebimmer

Hi,

Thanks. I'm not sure if the car was a loaner/demo/exec car, but it has 6000 miles on it.

I think it would be best if you pursue leasing a brand new car as opposed to a slightly used one. check out the current lease offers by BMWFS. Residual for 2013 328i is 60% for 15K lease.

Since you are not very particular with options, the price difference should not be that big. you may even end up paying lower, and probably little to no money due at signing.

Additionally, I highly recommend that you work with a board sponsor. That's what most people here do, and what I ended up doing.

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.

Originally Posted by futurebimmer

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.

SCAM ALERT!

I NEVER put down a PENNY on a lease...NEVER...did I say NEVER? Don't do it!

Originally Posted by pointandgo

SCAM ALERT!

I NEVER put down a PENNY on a lease...NEVER...did I say NEVER? Don't do it!

This. Put your deposit in the acct and use it toward the payments.

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.

Originally Posted by donhahn

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.

Are you saying he should pay the down payment? Ridiculous. You work for a dealer?

Originally Posted by pointandgo

Are you saying he should pay the down payment? Ridiculous. You work for a dealer?

No I think he means keep the down in the bank

too much for a down, maybe 2500 at the very max