Rate this deal for a F10 535i

Just came back from the dealership and had a test drive of the 535i.
This is what was offered to me w/o any bargaining from my side as an opening offer.

36 month 12k/year lease
535i
ZSP
ZPP
ZP2
STEPTRONIC tranny

MSRP: 59475.00
Sale price: 57,700

MF .0025
2171.48 due at signing (includes first month, bank fee and registration)

812.71 per month plus tax.

Does bmw ever wave the bank fee so that' it's only first month's payment due at signing?

Where do I have some wiggle room in this? I believe the base rates are .0023 currently. He actually told me I should wait till the beginning of September as he thinks the rates will be lower.

For some reason when I calculate with these numbers I get a higher monthly though.a

Any advice/thoughts/comments are appreciated.
Thanks

residual?
go to edmunds .com, lease calculator to check

That is not such a great deal. Always negotiate based upon dollars above Euro delivery invoice on the car and options. Always base the lease on the BMW Buy Rate. Always check the dealers math. With those strategies you can save thousands of dollars on a 3 year lease.

Actually that is an awful deal.

what would be your calculations on a good lease for the above vehicle?

Bad deal - find out invoice, find out MF markup. They are making a lot of profit on the deal.

Originally Posted by kssod

what would be your calculations on a good lease for the above vehicle?

It is critical to do your homework. Trusting, unambitious people always pay more for a BMW on a lease. Smart people always pay less. There are no shortcuts. You have to do your own homework. A recent poster here was shocked to learn that a BOARD SPONSOR (actually paid advertisers) here was charging the poster $5,000 extra over 3 years through lease shenanigans. Lease math errors always favor the dealership for some reason. When you sign a lease all of the math and lease criteria do not count. The lease has fine print that excludes all of those understandings and underlying assumptions. The only thing that counts X dollars per month, Y dollars up front, and Z miles per year.

Originally Posted by kssod

what would be your calculations on a good lease for the above vehicle?

Review the following:

Net cap cost = $57,700 (Can you negotiate a lower price based on invoice?)

Cap cost reduction = $0. (Can you negotiate any available BMW incentives? Generally you do not want to put any money down on a car lease.)

Residual - ask what the 36 month residual is (It can change by model, additional packages/options, promotions, etc. Should be around 60% on a 3 year lease. Make sure it is applied to list price of the car with all the options.)

Money factor = .0025 (equates to 6%. Ask if they can do better or if BMW has any promotions.)

Term = 36 months.

GOOD LUCK.

Ok so I've managed to bring thesale price down to 1500 over invoice.
MF is down to .0023 which is the base rate now.
No down payment just bank fee and first month for drive off.

Does this sound decent now?

Also- 30% off all rims/tires and accessories for one year. Someone told me I should ask
for that as well.

Would you mind saying what dealer?

Originally Posted by Khurram

Ok so I've managed to bring thesale price down to 1500 over invoice.
MF is down to .0023 which is the base rate now.
No down payment just bank fee and first month for drive off.

Does this sound decent now?

Let us know the residual and the final payment before tax. We will let you know if it is accurate.

I'm going with a different spec'd vehicle but here are the details

36 month 12k per year lease
residual 61%
MF .0023

58175 is the MSRP
53515 is the invoice at edumnds
54915 is the negotiated selling price

Monthly is $780.91 including 6% CT sales tax.

Drive off costs are first month+ acquisition fee and registration- no down/cap cost reduction

this is for a car off the lot? ED or special order with US delivery?

.0039 MF if very high. Base rate is .0023 That is a hell of a markup.

Oops! I meant .0023 MF
Car is en route to the dealership in two weeks. It's not a custom order by me

With the residuals for a 24 month lease on a 12k per year at 66% currently..maybe I should go for a 24 month lease as opposed to a 36 month lease.
It saves me almost a 100.00 per month.
Could swap out to a new ride in 2 years then. I know i'll have the itch by then
Thoughts?

to me I always thought that the shorter the lease the better, so if a 2 year lease saves you 100 per month and all else being equal than it would make sense to go for it. The issue is how much out of pocket, acquisition fees etc they nail you for, and what you will need to come up with in 2 years. Leases are always heavily advertised thus IMO the dealer and brand must make more money off of them than with a straight finance, thus I feel that they are not in my best interest. For a lease you always want the residual to be as high as possible, this is often "inflated" and not a reflection of the vehicle value at the end of the lease, so the absolute biggest error is to buy the vehicle at the end of the lease for the residual value. I drive about 15k per year and finance, I just roll the equity into the next vehicle plus any additional I want to lower my payment, usually the equivalent to all the up front fees in a lease, but they are applied directly to my loan amount. If a lease interest rate based on a money factor of .0025 is around 6% and a finance rate is 2.9% why pay the additional 4 %? At least I have a good idea of the purchase price, interest, and a rough idea of trade value in the future via edmunds kbb etc. 8 years of college and leases still seem a little like voodoo to me.

wow, not a great deal as stated by Pharding.

Originally Posted by dalekressin

wow, not a great deal as stated by Pharding.

Why is this not a good deal now? 1300 over invoice for the new 535i is not a good deal? MF of .0023. Residual of 61%. Drive off costs of first month+acq. fee and resgistration.

What part about this is not good?

the way i look at a lease is $54915 is sale price, residual is 33498, thus amount leased is 21417. plus tax say 6% of 54915 is $24711. Financed with a conventional loan over 36 months with a payment of approx $790 and the interest rate is over 9%. If you only pay tax on the 21417 then the interest is like 13%

Originally Posted by Khurram

Why is this not a good deal now? 1300 over invoice for the new 535i is not a good deal? MF of .0023. Residual of 61%. Drive off costs of first month+acq. fee and resgistration.

What part about this is not good?

It's fine - difference between that and a great deal would be $800. You could probably shop around more at other dealers and maybe squeeze it out, depends on how much your time is worth.

It can turn into one of those "Drive across town to save 5 cents on gas" sort of things if you're not careful. Might try two more dealerships and see if they'll do 800 over or something like that, otherwise seems fine.

Originally Posted by Khurram

Why is this not a good deal now? 1300 over invoice for the new 535i is not a good deal? MF of .0023. Residual of 61%. Drive off costs of first month+acq. fee and resgistration.

What part about this is not good?

Based on the information you provided, this is a good deal. Enjoy your new BMW.

Originally Posted by kssod

8 years of college and leases still seem a little like voodoo to me.

That's why finance professionals with experience in leasing are needed.

Just got back from the dealership and closed at 1050
over invoice. Now the two week wait begins! Really excited