Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > Ask-A-Dealer

Ask-A-Dealer
Talk to our team of BMW Client Advisors. Get all of your buying/financing/leasing questions answered here!

Reply
 
Thread Tools Display Modes
  #1  
Old 05-08-2006, 05:07 PM
Teo Teo is offline
Registered User
Location: Pacoima, CA
 
Join Date: Mar 2006
Posts: 51
Mein Auto: 2003 330i
New to leasing? Tips and Facts here

I recently placed an order for my new 330i, which I will be leasing. I did a lot research to try and get the best deal possible. Unfortunately much of the information I needed was scattered among many threads, so I put together what I learned here, hoping that it would help those of you who are new to leasing. I welcome any additions, suggestions or criticisms of my findings.

I included what factors to look at before entering negotiations and what I feel are the least important variable to the lease equation and the ones I feel are the most important. I also included some notes down at the bottom that you should keep in mind.


Before Negotiations Begin
What Car This may sound like common sense but you should know what car you are talking about. Some of the figures explained below vary depending on what car you want. Even though they are both part of the 3-series the 325 and 330 do not use the same Money Factor or Residual Value.

Lease Terms Right after figuring out what car you want you should figure out what lease terms you want. Are you going to lease for 24, 36 or 48 months? Will you need 12,000 miles a year or 15,000? Your answers to these questions will also affect the Money Factor and Residual Value.



Least Important Factors
MSRP Many people place a lot of importance on this number but it's not as important as you may think. Negotiations should never start here. You should however know what the MSRP of your car is, as it will factor into the lease formula. Also note that MSRP should also include the Destination Charge, currently $695

MACO This is an advertising fee that all dealers charge. It ranges from $200 - $400 dollars. There is usually very little negotiation with this number

Residual Value This will represent how much your car will be worth when the lease expires. Typically this number is represented as a percentage. It varies depending on what car you get and what lease term you are looking at. This number is basically set for a given car and lease term combination, and there is no room for negotiating here, but make sure to check that the dealer is giving you the correct percentage, if they for whatever reason will not, don't bother dealing with them, look for someone else. If this number is represented as a dollar amount on your lease it is calculated by multiply the MSRP of the car by the Residual Value Percentage.


Most Important Factors
Money Factor This is equivalent to the interest rate in a traditional loan. Make sure you know the Money Factor your dealer is giving you. There is a fair amount of negotiation that can be done with this number. Unlike traditional financing there is a minimum a dealer can offer you called the "Buy Rate". Please note that the Buy Rate is set for a given car and lease term combination, but what you can negotiate is how much above that Buy Rate they will charge you. The maximum they can charge you is set at 0.0004 over the Buy Rate. Make the Buy Rate your target and try to get as close to it as you can.

Invoice Price This is one of the most important numbers of the whole equation. Know the invoice price of the car you want. All negotiations should start from this number. Currently negotiating $1,000 over invoice (Dealer Markup) is a good deal, any thing under that just makes the deal that much sweeter. Also note that Invoice Price should also include the Destination Charge, currently $695.

Down payment This is an amount that you will give to the dealer to reduce the Cap Cost of the car. A Down Payment is not required but will reduce your monthly payment.

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.

Inception Fees This is a fee charged by the dealer for paperwork, securing financing and the like. This number is often overlooked but there is room for negotiation here too. As with the Money Factor there is a minimum ($625) and a maximum ($825) that a dealer can charge you.

Security Deposit This amount is determined by your monthly payment, it is basically your monthly payment increased to the next higher $50 increment. (Example: if your monthly payment including tax is $524, then your security deposit will be $550). Security deposits are typically only imposed on new BMW customers, returning customers should not be charged this fee. Also note that your security deposit is refundable and will be refunded to you when the lease ends.

Due at Signing This is the amount you will have to give the dealer when all the paperwork is signed and are ready to take possession of the car. This can include various amounts depending on how you structure your lease. Amounts that can be included are first month's payment, down payment, license and registration, inception fees, security deposit and taxes. The ones I mentioned are the pricier items that can be included. There could be others, but they are typically small amounts. Question anything over $50.


A few additional notes
Note 1: Make sure you know when you will be paying the various fees you will be charged. With some fees you can pay them up front or you can roll them into the lease. If you roll them into the lease they will increase the cap cost thereby increasing your monthly payment. The advantage to rolling then into the lease is that you will have to pay less at the start of the lease (Due at Signing). Some fees that you can roll into the lease are inception fees and license and registration.

Note 2: Don't forget Sales Taxes. These will very depending on where you lease your car. Make sure to get your quote with sales taxes already included on your monthly payment amount or your may be in for a surprise when you go to sign the paperwork.

Note 3: A down payment is not required and most people would advise against giving one for a leased car. The logic behind this is that if you get into an accident and the car is totaled you will loose any down payment you have given. If you have extra money lying around and would like to lower you monthly payment, a better option would be to take advantage of the Multiple Security Deposit program described below.

Note 4: BMW's Multiple Security Deposit program allows you to give up to 7 extra security deposits for your car. These will not be used to lower the cap cost, but instead for every additional security deposit you give, your money factor will be dropped by 0.00007, thereby lowering your monthly payment. These security deposits are also refunded to you at the end of the lease.

Note 5: Remember to get your floor mats and a full tank of gas. Some dealers will try to charge an additional fee for these. Try to negotiate for them upfront, don't wait until you are about to leave the dealer to ask for them.

Note 6: If you would like to save even more money on your lease and have the time, try the European Delivery program offered by BMW. I don't know all the details about this program so I won,t go into it, but you can find out more about it on the BMW website.

Note 7: Some of the necessary figures like Invoice Prices, MRSP, Money Factors and Residuals can be found at the top of the Ask A Dealer forum of this great site. They are reffered to on this site as Sticky's.

I hope some of you find this useful.

Last edited by Teo; 05-09-2006 at 03:14 PM.
Reply With Quote
Ads by Google
  #2  
Old 05-08-2006, 07:14 PM
rgzimmer rgzimmer is offline
Officially Welcomed to the 'Fest
Location: Texas
 
Join Date: May 2004
Posts: 579
Mein Auto: '10 328i; '09 335i
Good info. Thanks for putting it together.
__________________
<img src=http://www.bimmerfest.com/forums/picture.php?albumid=2304&pictureid=10885 border=0 alt= />
__________________________

1993 325i - Gray/Gray (sold)
2004 325Cic - Gray/Gray (sold)
2005 330Cic White/Saddle (sold)
2006 330i - TiAg/Black (sold)
2009 335i E90 M Sport Space Gray/Chestnut
2010 328i E93 Alpine White/Saddle (sold)
2012 X5 35d Black Sapphire/Cinnamon
2015 M3 F80 Sakhir Orange/Sakhir Orange Extended (on order)
Reply With Quote
  #3  
Old 05-08-2006, 07:49 PM
iversonm's Avatar
iversonm iversonm is offline
3 pedals only!
Location: Grosse Ile, Michigan
 
Join Date: Nov 2004
Posts: 2,666
Mein Auto: 2008 550i Carbon Black
I say give the man a sticky after 11 posts.

Here's a couple embelishments upon your summary:

Are you a candidate for leasing?

To be a good leasing candidate, you should drive a predictable amount of miles per year, and take good care of your car. A few scratches and chips here and there are no problem, but curb rashes and dents will cost you (not that it won't cost you when you own the car).

Negotiating

When leasing a BMW, you are negotiating more than just the purchase price. You are negotiating the sale price (cap cost), markup on the inception fee, and markup on the finance rate.

Don't get stuck on one number, like the purchase price, only to get screwed on the finance rate. Consider them all, and plan your moves carefully. If you push for an unrealistic sale price ($5 over invoice!) you may find that you're stuck with an unfavorable finance rate that destroys your beautiful deal.

Beware of and refuse to pay documentation fees, prep fees, etc. These are fees the dealer tacks on to make it appear that you got a good deal, only to have it evaporate in $500 of add on fees. You cannot negotiate away the $625 inception fee, and you'll have to pay your state's title and registation fees.

Spreadsheet

Download the lease payment spreadsheet, and really understand how the payment is calculated. You should be able to arrive at the same number the dealer computes.

State Taxes

Some states have laws that make it very unfavorable to lease a car. Texas and Illinois come to mind, but I can't give you specifics. Several other force to pay sales taxes up front, or some other scheme like that.

European delivery (ED) and leasing.

ED gives you a 7% discount on the car, calculated from MSRP. So, if your car had an MSRP of $40,000, you would get a discount of $2800. This discount comes from BMW, not the dealer. So if you can ordinarily buy that $40k for $37,500, you should be able to get $37,500 - $2,800 = $34,700.

But wait! There's more! The dealer does not have to pay the $200-$400 MACO fee, so you can negotiate another $200-400 off the purchase price, now about $34,300. This really helps when leasing, since the residual value is still computed off the original MSRP. A (very) crude approximation to leasing is that you only finance the difference between the purchase price and the residual. Since the residual is fixed off the MSRP, ED makes for significant savings. Another crude approximation is that $1000 on the purchase price is about $30/month on a lease payment. Therefore, on our $40k car, you can expect to save around $100/month on the lease payment in the ED program.

The downside is you have to fly to Europe to get your car, and be forced to drive your car legally at speeds that would put you behind bars here in "the land of the free" faster than you can whistle "Yankee Doodle." (For our Canadian readers, please subsititute "the True North strong and free" and "O, Canada" in the previous sentence. Canadians do get credit for the fact that 100 km/h does seem to be universally ignored on the 401, from my experience.)

The downside of ED is that you must part with you car (which you own) during the 6-8 agonizing weeks required to ship it back home. BMWFS does waive one lease payment while you wait for redelivery. However, you pay for this in the form of a slightly higher money factor, which covers this "free" payment and a little bit more.

You can find out more about ED by moving one forum down to "European Delivery" forum.
__________________
2012 E88 128i, Alpine White/Black
2011 E90 328i, Crimson Red/Black
2008 E60 550i, Carbon Black/Natural Brown, ED 2 November 2007 (retired)
2006 E83 X3, Silver Grey/Black, ED 15 May 2006. (retired)
2005 E46 330i, Jet Black/Black (retired)
2002 E46 325i, Electric Red/Black (retired)

Last edited by iversonm; 05-09-2006 at 06:35 AM.
Reply With Quote
  #4  
Old 05-09-2006, 05:48 AM
iSelJerseyShore iSelJerseyShore is offline
Registered User
Location: NJ
 
Join Date: Apr 2006
Posts: 38
Mein Auto: 2009 335xi
Teo & iversonm,


Thanks for the great welth of information on Leasing a BMW.. Now I only wish I could drive less then 15,000 miles a year so I can lease :-)...

Thanks Again!


-iSellJerseyShore
Reply With Quote
  #5  
Old 05-09-2006, 07:37 AM
BayAreaBMWFan BayAreaBMWFan is offline
Back in California
Location: San Francisco Bay Area
 
Join Date: Aug 2004
Posts: 3,251
Mein Auto: '12 328 Vert; '09 Odyssey
Quote:
Originally Posted by iSelJerseyShore
Teo & iversonm,


Thanks for the great welth of information on Leasing a BMW.. Now I only wish I could drive less then 15,000 miles a year so I can lease :-)...

Thanks Again!


-iSellJerseyShore
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.
__________________
2012 328Ci Black/Black ZPP
2011 528 Black/Black Retired ZPP ZP2 BMW Apps
2005 330Ci SparkGraphite/Gray Retired ZHP, Step, Nav, Xenon, Heated Seats, PDC
2007 X3 3.0si AlpiWhite/Tobacco ED Retired Step, ZSP, ZPP, ZCW, PDC, Nav, Xenon, Privacy Glass, Servotronic, Cargo Net
2002 745Li Slate Green Metallic/Beige Retired; Perfect baby-hauler
2006 525 TiAg/Black Retired
2004 3.0 Z4 Black/Black/Black SMG Retired
2003 525iA TiAg/Gray Retired;King of all Bimmers, the E39
Reply With Quote
  #6  
Old 05-09-2006, 07:38 AM
SteveinBelAir's Avatar
SteveinBelAir SteveinBelAir is offline
Cockney Curmudgeon
Location: Bel Air MD
 
Join Date: Dec 2005
Posts: 1,300
Mein Auto: 2012 X5 50i MSport
A couple of things.

Can someone, maybe a dealer verify - once and for all - if the residual is calculated from the MSRP including the destination or the MSRP before destination. That seems to be a gray area and obviously affects the monthly payment which will be higher if the residual does NOT include the dest.

Capital cost reductions are subject to sales tax in some states. This is because it is treated as a payment. So in a 5% state (for example) your $2000 payment will be subject to $100 tax.

Different states have different tax laws regarding vehicle leases that can drastically change the payment given by the generic lease calculators available here. In MOST states, the sales tax is applied to the payment, so for example, in a 5% state, if your payment is $500, you add 5% or $25 for a total payment of $525. These are lease-favorable states because you are only paying tax on the part of the car that you are leasing.

Several states that include Illinois, Virginia, Maryland and Texas (please chime in if there are more) require you to pay tax on the negotiated price of the car. Yes, that's right, just as if you are buying it outright. In these states, you either pay it all up front or build it into the lease. On a 24 month lease, this will kill your payment

Note also that if you decide to buy the car at the end of the lease, YOU WILL PAY TAX AGAIN!

Disposition fee: When you turn in a leased vehicle, you will be subject to a disposition fee of $400 (on a BMW). I have leased many cars of different manufacture and there is always a disposition fee. So subtract it from the security deposit - that's what you will be getting back. Note that if you re-lease a BMW, there is an unwritten understanding that BMWFS will waive the disposition on the returned vehicle (and the security deposit on the new vehicle)

Remember that a leased vehicle has to be returned in very good condition. BMW will send an independant inspection 'dude' to your location and he will generally go through the car very thoroughly. You are allowed a ding or two and small scratches but one thing to note is that tears or rips in leather and tires that are either not a matching set, or with less than 5/32" tread will be flagged. No mods unless you can remove them. Window tints will have to be removed.

Probably more but I have a meeting. Nice write up.
__________________

2006 E90 330i (retired)
2009 E90 335i (retired)
2012 E70 X5 50i M Sport, JB Stage 1, 0-60 4.64 secs. Woot!
See me for Industrial Electronic Repair.

Last edited by SteveinBelAir; 05-09-2006 at 07:40 AM.
Reply With Quote
  #7  
Old 05-09-2006, 09:32 AM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
Quote:
Originally Posted by SteveinBelAir
A couple of things.

Can someone, maybe a dealer verify - once and for all - if the residual is calculated from the MSRP including the destination or the MSRP before destination. That seems to be a gray area and obviously affects the monthly payment which will be higher if the residual does NOT include the dest.
Destination IS included...I don't even know why they bother calling it out anymore. It should just meld with the price of the car and we shouldn't even see the word any more.
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #8  
Old 05-09-2006, 09:42 AM
Teo Teo is offline
Registered User
Location: Pacoima, CA
 
Join Date: Mar 2006
Posts: 51
Mein Auto: 2003 330i
Glad to hear that there is a favorable response to the information that I have posted.

steveinbelair my understanding is that destination charge is included when calculating residual value. This is the methodology used for both leases I have entered into. California does it like this but I'm not sure if it applies to every other state.

As far as the disposition fees, it is written in the lease end documentation and on BMW website that disposition fees will be waived if you lease another BMW, it is not just an unwritten understanding.

I think that special attention should be placed on the tax issues brought up by both iversonm and steveinbelair. Some states do require one to pay taxes on the entire purchase price of the car. Here in California we are required to pay taxes on only the leased portion of the car. Make sure you know the particular requirements in your state.

Does anybody else know of any lease terms, fees or lease regulations that change depending on what state you are in? It might be helpful to others to bring these up here.
Reply With Quote
  #9  
Old 05-09-2006, 09:57 AM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
Quote:
Originally Posted by Teo
Before Negotiations Begin
What Car This may sound like common sense but you should know what car you are talking about. Some of the figures explained below vary depending on what car you want. Even though they are both part of the 3-series the 325 and 330 do not use the same Money Factor or Residual Value.

Lease Terms Right after figuring out what car you want you should figure out what lease terms you want. Are you going to lease for 24, 36 or 48 months? Will you need 12,000 miles a year or 15,000? Your answers to these questions will also affect the Money Factor and Residual Value.
One should quickly see that BMW lease terms longer than 36 months are very, very expensive. BMW wants these cars back after 3 years as they still have the full factory warranty.

Quote:
Originally Posted by Teo
Least Important Factors
MSRP Many people place a lot of importance on this number but it's not as important as you may think. Negotiations should never start here. You should however know what the MSRP of your car is, as it will factor into the lease formula. Also note that MSRP should also include the Destination Charge, currently $695.
This is important because it provides your residual amount: Residual percentage times (base MSRP+dest+MSRP options) equals the residual number in dollars. Note that this may have zero to do with the actual price of the car you negotiate or it could match it exactly.

Quote:
Originally Posted by Teo
MACO This is an advertising fee that all dealers charge. It ranges from $200 - $400 dollars. There is usually very little negotiation with this number.
Correct...this is a regional number determined by BMWFS and the dealer has no control over it. Sneaky dealers, to get you into their dealership, may not bring this number up in order to give you a low phone/email quote only to bring it up later.

Quote:
Originally Posted by Teo
Residual Value This will represent how much your car will
be worth when the lease expires. Typically this number is represented as a percentage. It varies depending on what car you get and what lease term you are looking at. This number is basically set for a given car and lease term combination, and there is no room for negotiating here, but make sure to check that the dealer is giving you the correct percentage, if they for whatever reason will not, don't bother dealing with them, look for someone else. If this number is represented as a dollar amount on your lease it is calculated by multiply the MSRP of the car by the Residual Value Percentage.
Correct, the Residual numbers are provided by BMWFS and are 100% non-negotiable. Everyone in the US uses the same residual numbers so they are a constant in all lease figures.

Quote:
Originally Posted by Teo
Most Important Factors
Money Factor This is equivalent to the interest rate in a traditional loan. Make sure you know the Money Factor your dealer is giving you. There is a fair amount of negotiation that can be done with this number. Unlike traditional financing there is a minimum a dealer can offer you called the "Buy Rate". Please note that the Buy Rate is set for a given car and lease term combination, but what you can negotiate is how much above that Buy Rate they will charge you. The maximum they can charge you is set at 0.004 over the Buy Rate. Make the Buy Rate your target and try to get as close to it as you can.
I hate the way MFs are represented. Too many zeroes mess people up. Actually, the max bump a dealer can do is 0.0004. There are often Promotional Rates available that are well below the base rates, too. Also, there can be add-ons for things like European Delivery (0.0003) and for first time lease buyers (0.00015).

Quote:
Originally Posted by Teo
Invoice Price This is one of the most important numbers of the whole equation. Know the invoice price of the car you want. All negotiations should start from this number. Currently negotiating $1,000 over invoice (Dealer Markup) is a good deal, any thing under that just makes the deal that much sweeter. Also note that Invoice Price should also include the Destination Charge, currently $695.

Down payment This is an amount that you will give to the dealer to reduce the Cap Cost of the car. A Down Payment is not required but will reduce your monthly payment.
IMO, Down payments on leases should be avoided. If the car is totalled early in the lease, you will never see that money back. It is better to learn about MSD - Mulitple Security Deposits. It is a sticky near the top of the forum...read it well. Further, the whole point of a lease is to put as little money down as possible...my opinion of course.

Quote:
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.

Inception Fees This is a fee charged by the dealer for paperwork, securing financing and the like. This number is often overlooked but there is room for negotiation here too. As with the Money Factor there is a minimum ($625) and a maximum ($825) that a dealer can charge you.
Also known as an acquisition fee. Often, this is included in the cap cost and IMO, that is were is should stay!

Quote:
Originally Posted by Teo
Security Deposit This amount is determined by your monthly payment, it is basically your monthly payment increased to the next higher $50 increment. (Example: if your monthly payment including tax is $524, then your security deposit will be $550). Security deposits are typically only imposed on new BMW customers, returning customers should not be charged this fee. Also note that your security deposit is refundable and will be refunded to you when the lease ends.
Again, see the sticky near the top of the forum about MSDS.

Quote:
Originally Posted by Teo
Due at Signing This is the amount you will have to give the dealer when all the paperwork is signed and are ready to take possession of the car. This can include various amounts depending on how you structure your lease. Amounts that can be included are first month's payment, down payment, license and registration, inception fees, security deposit and taxes. The ones I mentioned are the pricier items that can be included. There could be others, but they are typically small amounts. Question anything over $50.


A few additional notes
Note 1: Make sure you know when you will be paying the various fees you will be charged. With some fees you can pay them up front or you can roll them into the lease. If you roll them into the lease they will increase the cap cost thereby increasing your monthly payment. The advantage to rolling then into the lease is that you will have to pay less at the start of the lease (Due at Signing). Some fees that you can roll into the lease are inception fees and license and registration.

Note 2: Don't forget Sales Taxes. These will very depending on where you lease your car. Make sure to get your quote with sales taxes already included on your monthly payment amount or your may be in for a surprise when you go to sign the paperwork.
Be aware of your state's rules for handling sale's tax on car leases. In California, you only pay tax on the value of the car for the amount of time you own it. In other words, you don't pay sale's tax on the full amount of the car--only for the time you are driving it.

Quote:
Originally Posted by Teo
Note 3: A down payment is not required and most people would advise against giving one for a leased car. The logic behind this is that if you get into an accident and the car is totaled you will loose any down payment you have given. If you have extra money lying around and would like to lower you monthly payment, a better option would be to take advantage of the Multiple Security Deposit program described below.
Obviously I didn't read through the whole thread as I responded. No biggie...it just reitereates the points!

Quote:
Originally Posted by Teo

Note 4: BMW's Multiple Security Deposit program allows you to give up to 7 extra security deposits for your car. These will not be used to lower the cap cost, but instead for every additional security deposit you give, your money factor will be dropped by 0.0007, thereby lowering your monthly payment. These security deposits are also refunded to you at the end of the lease.
Again, those pesky zeroes mess everyone up: 0.00007 is the correct number to use.

Quote:
Originally Posted by Teo
Note 5: Remember to get your floor mats and a full tank of gas. Some dealers will try to charge an additional fee for these. Try to negotiate for them upfront, don't wait until you are about to leave the dealer to ask for them.

Note 6: If you would like to save even more money on your lease and have the time, try the European Delivery program offered by BMW. I don't know all the details about this program so I won,t go into it, but you can find out more about it on the BMW website.

Note 7: Some of the necessary figures like Invoice Prices, MRSP, Money Factors and Residuals can be found at the top of the Ask A Dealer forum of this great site. They are reffered to on this site as Sticky's.

I hope some of you find this useful.
Yes, and check the various forum for the specific car you are looking forum. I keep the the 5er forum up to date!

Nice write-up and worth a sticky.
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #10  
Old 05-09-2006, 03:23 PM
Teo Teo is offline
Registered User
Location: Pacoima, CA
 
Join Date: Mar 2006
Posts: 51
Mein Auto: 2003 330i
Thanks for the additional comments Agent99, I think they are very informative. By the way I changed the mistyped MSD reduction and the maximum MF increase. You're right it gets very confusing some times with all those zeros.
I see my thread became a sticky. Does anyone know how a thread becomes a Sticky, who decides this?
Reply With Quote
  #11  
Old 05-09-2006, 03:44 PM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
Look down in the lower right section of the forum. Whose name do you see under Moderator??
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #12  
Old 05-09-2006, 03:50 PM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
Oh, and be sure to sign up for BMWCCA program and after 1 year, you'll be eligible for rebates on newly purchased/leased cars!

$500 for 3-series and $1000 for 5-series, in general.
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #13  
Old 05-09-2006, 03:58 PM
Teo Teo is offline
Registered User
Location: Pacoima, CA
 
Join Date: Mar 2006
Posts: 51
Mein Auto: 2003 330i
Thanks Agent99, feels good to have my own Sticky. Where does one go for the BMWCCA program, there's a website I would assume.
Reply With Quote
  #14  
Old 05-09-2006, 05:11 PM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
www.bmwcca.org
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #15  
Old 05-09-2006, 05:37 PM
iversonm's Avatar
iversonm iversonm is offline
3 pedals only!
Location: Grosse Ile, Michigan
 
Join Date: Nov 2004
Posts: 2,666
Mein Auto: 2008 550i Carbon Black
Quote:
Originally Posted by Teo
Glad to hear that there is a favorable response to the information that I have posted.

steveinbelair my understanding is that destination charge is included when calculating residual value. This is the methodology used for both leases I have entered into. California does it like this but I'm not sure if it applies to every other state.

As far as the disposition fees, it is written in the lease end documentation and on BMW website that disposition fees will be waived if you lease another BMW, it is not just an unwritten understanding.

I think that special attention should be placed on the tax issues brought up by both iversonm and steveinbelair. Some states do require one to pay taxes on the entire purchase price of the car. Here in California we are required to pay taxes on only the leased portion of the car. Make sure you know the particular requirements in your state.

Does anybody else know of any lease terms, fees or lease regulations that change depending on what state you are in? It might be helpful to others to bring these up here.
One more tax tidbit. Ohio taxes your lease like most states, where you only pay taxes on your lease payments. However, they force you to pay all the taxes up front.

New Jersey evidently gives you the option to pay taxes up front or wrap them into the payment.
__________________
2012 E88 128i, Alpine White/Black
2011 E90 328i, Crimson Red/Black
2008 E60 550i, Carbon Black/Natural Brown, ED 2 November 2007 (retired)
2006 E83 X3, Silver Grey/Black, ED 15 May 2006. (retired)
2005 E46 330i, Jet Black/Black (retired)
2002 E46 325i, Electric Red/Black (retired)
Reply With Quote
  #16  
Old 05-10-2006, 12:12 AM
Asteroid's Avatar
Asteroid Asteroid is offline
Don't be a left lane hog
Location: San Francisco
 
Join Date: Aug 2005
Posts: 2,994
Mein Auto: Golf VI R
Apply to lock lease rate

It should also be mentioned that you may be able to lock in the lease rate for 60 days, starting on the date of the expiration of the current program. Could someone post on what happens if the rates drop during the 60-day period, and whether you get the lower rate?
__________________
F31 328xd ED Dec 2 2013- Compliance pix
E82 135i ED Sep 18 2008- Delivery pix
E61 535xi ED Aug 31 2007- ED Report--N. Italy
E90 330i ED June 26 2006- ED Trip Report

"Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?"- George Carlin
Reply With Quote
  #17  
Old 05-10-2006, 04:05 AM
SteveinBelAir's Avatar
SteveinBelAir SteveinBelAir is offline
Cockney Curmudgeon
Location: Bel Air MD
 
Join Date: Dec 2005
Posts: 1,300
Mein Auto: 2012 X5 50i MSport
I think it would be a good idea to get everyone to chime in on the tax rates and requirements for each state.

I'll start.

Maryland - 5.00% - Based on full negotiated price of vehicle. Can be paid up front or rolled into vehicle price.
__________________

2006 E90 330i (retired)
2009 E90 335i (retired)
2012 E70 X5 50i M Sport, JB Stage 1, 0-60 4.64 secs. Woot!
See me for Industrial Electronic Repair.

Last edited by SteveinBelAir; 05-10-2006 at 04:13 AM.
Reply With Quote
  #18  
Old 05-10-2006, 09:03 AM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
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%.
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #19  
Old 05-10-2006, 09:07 AM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
Quote:
Originally Posted by Asteroid
It should also be mentioned that you may be able to lock in the lease rate for 60 days, starting on the date of the expiration of the current program. Could someone post on what happens if the rates drop during the 60-day period, and whether you get the lower rate?
You should get the lower rate but you are protected from higher rates. Hopefully your dealer is looking out for you but you should keep on top of it just in case.
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #20  
Old 05-10-2006, 07:05 PM
iversonm's Avatar
iversonm iversonm is offline
3 pedals only!
Location: Grosse Ile, Michigan
 
Join Date: Nov 2004
Posts: 2,666
Mein Auto: 2008 550i Carbon Black
Michigan: 6% sales tax on payments.
__________________
2012 E88 128i, Alpine White/Black
2011 E90 328i, Crimson Red/Black
2008 E60 550i, Carbon Black/Natural Brown, ED 2 November 2007 (retired)
2006 E83 X3, Silver Grey/Black, ED 15 May 2006. (retired)
2005 E46 330i, Jet Black/Black (retired)
2002 E46 325i, Electric Red/Black (retired)
Reply With Quote
  #21  
Old 05-31-2006, 11:33 AM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
bump
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #22  
Old 05-31-2006, 07:21 PM
Xspect Xspect is offline
Registered User
Location: Mississippi
 
Join Date: May 2006
Posts: 5
Mein Auto: 525i
Ms 7%
La 9 %
Sc 5 %
Reply With Quote
  #23  
Old 06-05-2006, 01:56 PM
Ågent99's Avatar
Ågent99 Ågent99 is offline
Moderator, 5-Series
Location: Bay Area, CA
 
Join Date: Jan 2002
Posts: 5,931
Mein Auto: Trek 6500 MTB
bump
__________________
2001 530i/5 (E39), Topaz Blue/Stone Green/Black (118k miles) *very rare interior/exterior color combo*
2005 545i/SMG (E60), ED Order, Titanium Grey/Grey (lease over)
2015 335i, ED Order Summer 2015
Reply With Quote
  #24  
Old 06-08-2006, 09:57 AM
mclaren's Avatar
mclaren mclaren is offline
Chairman of the Bored
Location: Central Florida
 
Join Date: Jan 2005
Posts: 3,066
Mein Auto: 2013 650i Coupe
Here are few things about leasing that I have learned :

I can't stress this enough, you must understand every number. Dealers are very creative at finding ways to make profit.

If you read this website you will hear about all kinds of deals. Don't know if these deals are true, what I do know is the dealers in Central Florida don't give new BMWs away nor should they.

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.
These deals often don't last long so if you see one jump while there are cars available and the dealer may not realize they are going to be selling their inventory soon.

Don't argue about every dollar, it is not that important. What is important is to know within about $10 per month what the dealer can do and make a fair profit. Also know the approximate drive off.

Do the 7 multiple security deposits, it's a great deal.

Finally, the Z4 I just did would have cost over $800 per month with the normal MF and no trunk money but I got it for $528.48 with just the security deposits, 1st payment and a couple of hundred drive off so you can see having your ducks lined up means real savings.
__________________

2012 328i Coupe
2013 650i Coupe ( retired for Porsche 911 )
Reply With Quote
  #25  
Old 07-08-2006, 02:30 PM
dbtheo's Avatar
dbtheo dbtheo is offline
Officially Welcomed to the 'Fest
Location: Ohio
 
Join Date: Apr 2006
Posts: 285
Mein Auto: 07 328 Famly car edition
Quote:
Originally Posted by iversonm
One more tax tidbit. Ohio taxes your lease like most states, where you only pay taxes on your lease payments. However, they force you to pay all the taxes up front.

New Jersey evidently gives you the option to pay taxes up front or wrap them into the payment.

Not true, you can roll tax into your payments in Ohio. If you were told otherwise, you were lied to.
Reply With Quote
Reply

Bookmarks


Forum Navigation
Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > Ask-A-Dealer
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
My ED Itinerary - Looking for tips dapharsyde European Delivery 22 03-25-2006 04:41 AM
Nick’s unsolicited Zaino Tips & Tricks - Part 1 Nick T. The Detail Department 18 10-26-2005 06:09 PM
Grill Masters....got any tips? Melissa Off-Topic 41 10-07-2004 06:59 AM
Dealer service probs, any tips on how to resolve? JT - '02 330i General BMW 9 01-22-2002 01:01 PM


All times are GMT -7. The time now is 08:16 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms