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European Delivery
The place to share your experiences and tips related to "ED"... View the ED Wiki -- View the Pick-Up Date Calendar -- Add Your Pick-Up Date to the Calendar

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  #1  
Old 04-12-2016, 05:24 PM
VitaminHan VitaminHan is offline
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New to lease/ED

Hello,

I am a new member to this forum and currently do not own a BMW. I drive a Honda Accord now because my commute is 130 miles daily round trip, so I figured using a BMW for this task would cost me a leg and arm when the maintenance bills eventually show up.

I do not plan to keep doing this crazy commute for too long by either find a closer job or move. In the mean time I can start learning about lease and ED program.

I am considering lease because I do not want to stuck with the maintenance/repair bills. My colleague's 2011 BMW 328xi recently told him to replace both front and rear brake pads and the dealer quoted him $1000+ for the work so I kind got scared (I installed the brake pads myself on my Accord only cost me $100 for the parts).

I have never leased a car, let along going to Germany to pick it up. I did some research but not sure if I did that right so I would like the more knowledgable forum members to take a look at it.

1. Am I able to customize the car even I lease? I want a car with manual transmission and I know it is hard to find. Can I place the order for a manual transmission for lease?

2. Does US incentive apply to ED program?

3. Numbers

Here I built a car and got some numbers out. Please let me know if my assumptions are correct.

2016 320xi (I know this model is lack of power but I am a moderate driver and 180HP is adequate)

US MSRP: $35,150.00
ED MSRP: $35,150.00 * 0.95 = $33,392.50 (ED 5% discount)
ED Invoice: $33,392.50 * 0.92 = $30.721.10
Dealer profit: $700.00
Destination: $995.00 (not sure if this is negotiable)
Option: Cold Weather and Driver Assistant Packages
($800.00 + $950.00) * 0.91 = $1,592.50
Total Price = $32,416.0 + $1,592.50 = $34,008.60

Currently BMW has no incentive for 2016 320xi lease but it has $3,000.00 buildout allowance for 2015 model. For example purpose only, IF i am building a 2015 model, can I apply this $3,000.00 allowance to the above total price? (the $34,008.60 price will become $31,008.60)

OK I know I should use the US price when calculating the residual value (not include the $3,000.00 incentive for 2015 model)

$35,150.00 +1,592.50 = $36,742.25

if I choose 15,000 miles a year, and assume 60% residual value, the total depreciation that I use in 36 months is $36742.25 * 40% = $14,696.90

I do not know current money factor is but I will use the purchase interest rate 2.97% / 2400 = 0.000012375 (please let me know the current money factor if you know where to find it)

Excel gives me the monthly payment number = $427.21

I live in New Jersey. The sales tax is 7% so the total monthly payment is $426.21 * 1.07 = $457.11

I did not include the security deposit waiver. I will definitely do it when the time comes

I would like your input if my calculation makes sense or I have omitted something important. As I said, I am new to the lease/ED world, so my calculation can be totally wrong.

Thank you

Last edited by VitaminHan; 04-12-2016 at 07:49 PM.
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  #2  
Old 04-12-2016, 06:11 PM
frank325 frank325 is offline
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Welcome! I'm pressed for time so I can only answer one question for you quickly. #1 -- for sure! Aside from going to Germany, that's kind of the best part. You get the exact car you want, even if you're leasing. Others here will have more answers for ya.
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  #3  
Old 04-12-2016, 08:30 PM
argh argh is offline
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2. Some incentives do, some incentives don't. Your CA will be able to tell you. I strongly advise you to go with one of the forum-board-sponsor-ED-specialists. They usually offer the best price too. I live in CT and ordered ED & PCD car with Mike Wendroff at BMW of Morristown. Can't give him enough praise.

Your calculation is missing the $475 adder that came into effect on 1/1/16.
In a nutshell, ED invoice= ED MSRP*.92+options US MSRP*.91+D&H+$475. This is before incentives. Dealer profit will be price over invoice (including "doc fee").
D&H is non-negotiable.

You cannot order a previous year model to spec (or for ED). $3,000 incentive for 2015 models does not apply therefor. When you order to spec you can lock in incentives for 60 days for cars delivered to the east coast and 90 days for cars delivered to the west coast. Say you order in April and your ED takes place in June, the moment your credit application is approved you are locked in for 60 days so in June you can choose which incentives, April, May or June are most favorable to you. Do note that not all incentives can be locked in. Again, your CA will know.

The March base money factor was .00135 (April is probably posted on this forum or on edmunds forum somewhere), but ED orders get .0003 tacked on. BMW will cover 2nd month lease payment as you will not be able to use the car while it's being shipped from Europe to the US. Do note that you can still use max 7 MSD's for an ED order and lower the money factor by .00049.
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  #4  
Old 04-13-2016, 05:21 AM
VitaminHan VitaminHan is offline
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Thank you for the reply!

Now here is the new calculation

US MSRP $35,150.00

ED MSRP $35,150.00 * 0.95 = $33,392.50
Option US MSRP = $800.00 + $950.00 = $1,750.00
D&H $200.00 (I think that what Honda charged me not sure how much with BMW)
Fee $475.00

ED Invoice = $33,392.50 * 0.92 + $1,750.00 * 0.91 + $200.00 + $475.00 = $32,988.60

Dealer profit: $700.00
Destination: $995.00

Total car price = $32,988.60 + $700.00 + $995.00 = $34,683.60

Assume 15,000 miles a year and 60% residual

The US MSRP (Car + Option) = $35,150.00 + $1,750.00 = $36,900.00

60% residual = $36,900.00 * 0.60 = $22,140.00

Depreciation Fee = $34,683.60 - $22,140.00 = $12,543.60

36 months term and the monthly depreciation = $12,543.60 / 36 = $348.43

Finance fee = ($34,683.60 + $22,140.00) * (0.00135 - 0.00049) = $48.87 (Assume I max out 7 MSD)

Total monthly payment = $343.83 + $48.87 = $392.70

After tax monthly payment = $392.7 * 1.07 = $420.19

This monthly payment does not include any incentive and down payment.

Of course, I am not trying to get a precise number on the forum, I would do it with a salesperson, but I am new to lease so I just would like to know if my understanding and calculation make sense.

Last edited by VitaminHan; 04-13-2016 at 05:24 AM.
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  #5  
Old 04-13-2016, 09:40 AM
CliffJumper CliffJumper is offline
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Quote:
Originally Posted by VitaminHan View Post
Finance fee = ($34,683.60 + $22,140.00) * (0.00135 - 0.00049) = $48.87 (Assume I max out 7 MSD)

Total monthly payment = $343.83 + $48.87 = $392.70
I'm not an expert, but I think your finance calculation may be off. The rates you quoted are money factors, so 0.00135-0.00049=0.00086

0.00086MF= 2.064% annual = 0.172% monthly

This results in a roughly double finance charge, however, keep in mind the finance charge also drops slightly with each payment as you pay down the principal.
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  #6  
Old 04-13-2016, 10:06 AM
VitaminHan VitaminHan is offline
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Quote:
Originally Posted by CliffJumper View Post
This results in a roughly double finance charge, however, keep in mind the finance charge also drops slightly with each payment as you pay down the principal.
I am not sure about how to calculate finance charge based on MF. I got this finance charge formula from leaseguide.com/lease08/

Finance Fee = ( Net Cap Cost + Residual ) Money Factor

Also do I have to have xdrive? I do live in a place with fair amount of snow every winter, but my friends who have rear-wheel drive BMW seem fare well. If xdrive is not a MUST then I can go with 320i which will be $2,000.00 less
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  #7  
Old 04-13-2016, 10:14 AM
Diesel Power Diesel Power is offline
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Money factor x 2,400 = APR.
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  #8  
Old 04-13-2016, 10:36 AM
VitaminHan VitaminHan is offline
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Quote:
Originally Posted by Diesel Power View Post
Money factor x 2,400 = APR.
So in essence it is like buying a car for the price of the depreciation fee on a 36 months term at MF * 2400/12

if it is correct then the calculation becomes

Car price: $12,543.60

APR = 0.00086 * 2400 / 12 = 0.172% monthly

Term = 36 month

Plug these numbers to Excel and

Monthly payment before tax = $359.63

Previously I calculated $392.70. In your opinion which one is correct?
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  #9  
Old 04-13-2016, 11:57 AM
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kjboyd kjboyd is offline
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There is a really great lease calculator on here. Do a search. I'm mobile so can't right now sorry.
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  #10  
Old 04-13-2016, 02:15 PM
Diesel Power Diesel Power is offline
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Quote:
Originally Posted by VitaminHan View Post
I am not sure about how to calculate finance charge based on MF. I got this finance charge formula from leaseguide.com/lease08/



Finance Fee = ( Net Cap Cost + Residual ) Money Factor



Also do I have to have xdrive? I do live in a place with fair amount of snow every winter, but my friends who have rear-wheel drive BMW seem fare well. If xdrive is not a MUST then I can go with 320i which will be $2,000.00 less

OR:

Money Factor = Monthly Rental/((Net Cap Cost + Residual) x Term)
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  #11  
Old 04-13-2016, 06:40 PM
argh argh is offline
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Quote:
Originally Posted by kjboyd View Post
There is a really great lease calculator on here. Do a search. I'm mobile so can't right now sorry.
That spreadsheet is here: http://www.bimmerfest.com/forums/sho...d.php?t=830104

RWD+snow tires should be just fine in NJ winter. Might as well order the car with summer tires in that case. You should have plenty tread left on them at lease turn in and the snow set can be transplanted to the next car or be sold.
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  #12  
Old 04-13-2016, 06:55 PM
VitaminHan VitaminHan is offline
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Quote:
Originally Posted by argh View Post
Thanks, I will play with the spreadsheet and learn more about the numbers~!
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