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  #1  
Old 10-21-2012, 04:21 PM
cchrisv cchrisv is offline
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135is Lease Deal

After much debate and a lot of time at the dealership this weekend I ended up picking the 135is as my next car. I was mainly comparing between the 335i Sedan and Audi S4 neither felt right. The amazing CA at the BMW dealership I visited owns a 1M and recommended I test drive the 135is. OMG I fell in love. The car just feels RIGHT.

This will be my 1st BMW and I'm super excited. I will be ordering one in November for EU delivery.

The car I will be ordering is:
Alpine White 135is 6spd w/ Coral Red Interior, HK Audio, Tech Package, & Heated Seats.

MSPRP: $49,320.00
SELL PRICE: $43,000
ACT FEE: $725
REG/TITLE/TAGS: $344
DOC FEE: $399

Money Factor is 0.00165 & 57% Residual.

I am happy with this deal, but what does everyone else think?
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  #2  
Old 10-21-2012, 09:11 PM
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cheikh82 cheikh82 is offline
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Quote:
Originally Posted by cchrisv View Post
After much debate and a lot of time at the dealership this weekend I ended up picking the 135is as my next car. I was mainly comparing between the 335i Sedan and Audi S4 neither felt right. The amazing CA at the BMW dealership I visited owns a 1M and recommended I test drive the 135is. OMG I fell in love. The car just feels RIGHT.

This will be my 1st BMW and I'm super excited. I will be ordering one in November for EU delivery.

The car I will be ordering is:
Alpine White 135is 6spd w/ Coral Red Interior, HK Audio, Tech Package, & Heated Seats.

MSPRP: $49,320.00
SELL PRICE: $43,000
ACT FEE: $725
REG/TITLE/TAGS: $344
DOC FEE: $399

Money Factor is 0.00165 & 57% Residual.

I am happy with this deal, but what does everyone else think?
You are getting a fair deal. Just try to negotiate doc fees down a lil.

Last edited by cheikh82; 10-21-2012 at 09:19 PM.
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  #3  
Old 10-21-2012, 10:00 PM
Kar Don Kar Don is offline
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I'd suggest doing multiple security deposits. Will lower your payment by like 40 bucks a month!
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  #4  
Old 10-21-2012, 10:34 PM
djsaad1 djsaad1 is offline
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Are you doing a 12k or 15k lease?

Also not sure if you know but the current base rate money factor is .00135.
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  #5  
Old 10-22-2012, 07:31 AM
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cheikh82 cheikh82 is offline
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Originally Posted by djsaad1 View Post
Are you doing a 12k or 15k lease?

Also not sure if you know but the current base rate money factor is .00135.
He's doing ED, that's why the MF he's offered is 0.00165 (0.00135+0.0003).
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  #6  
Old 10-22-2012, 10:06 AM
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miamiboyca miamiboyca is offline
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I would suggest doing a 10K mile lease, and then purchasing miles at the discounted amount afterwards. It will increase your residual, lower your payment and prevent you from paying interest and tax on the extra mileage/residual.

Enjoy - ED is great and the 1 is going to be awesome on the mountain roads...
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  #7  
Old 10-23-2012, 11:28 AM
cchrisv cchrisv is offline
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Originally Posted by miamiboyca View Post
I would suggest doing a 10K mile lease, and then purchasing miles at the discounted amount afterwards. It will increase your residual, lower your payment and prevent you from paying interest and tax on the extra mileage/residual.

Enjoy - ED is great and the 1 is going to be awesome on the mountain roads...
I will likely do 10K/year since I have yet to keep a car the entire length of a lease anyways. Question: If I do MSDs and I sell or trade the car before the end of the lease do I get the money back?
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  #8  
Old 10-23-2012, 11:32 AM
djsaad1 djsaad1 is offline
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Quote:
Originally Posted by miamiboyca View Post
I would suggest doing a 10K mile lease, and then purchasing miles at the discounted amount afterwards. It will increase your residual, lower your payment and prevent you from paying interest and tax on the extra mileage/residual.

Enjoy - ED is great and the 1 is going to be awesome on the mountain roads...
How does this work? When do you purchase the miles? And how much are they usually discounted? I always thought it costs a lot more to buy more miles later.
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  #9  
Old 10-23-2012, 12:21 PM
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miamiboyca miamiboyca is offline
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Originally Posted by djsaad1 View Post
How does this work? When do you purchase the miles? And how much are they usually discounted? I always thought it costs a lot more to buy more miles later.
ts .16 per mile and you can call and purchase up to I think 6 months from the end of the lease. They let you pay for in total, or add it to your payment.

To my knowledge, BMW is only one.
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  #10  
Old 10-23-2012, 12:45 PM
djsaad1 djsaad1 is offline
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Originally Posted by miamiboyca View Post
ts .16 per mile and you can call and purchase up to I think 6 months from the end of the lease. They let you pay for in total, or add it to your payment.

To my knowledge, BMW is only one.
Thanks I did not know that. Just quickly looking at it, even if I were to buy 6000 more miles on a 10k per year lease it would still be cheaper than doing a 12k per year lease.
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  #11  
Old 10-23-2012, 12:58 PM
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miamiboyca miamiboyca is offline
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Originally Posted by djsaad1 View Post
Thanks I did not know that. Just quickly looking at it, even if I were to buy 6000 more miles on a 10k per year lease it would still be cheaper than doing a 12k per year lease.
That's the calculation i did too. Its why i went with a 10K mile lease. Check with your services - subject to terms and conditions...LOL
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  #12  
Old 10-23-2012, 05:46 PM
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SARAFIL SARAFIL is offline
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Quote:
Originally Posted by miamiboyca View Post
I would suggest doing a 10K mile lease, and then purchasing miles at the discounted amount afterwards. It will increase your residual, lower your payment and prevent you from paying interest and tax on the extra mileage/residual.

Enjoy - ED is great and the 1 is going to be awesome on the mountain roads...
Just want to point out a few things to consider: Your idea can be a good one, but you should always do the math because it can vary deal to deal. And on the interest question -- interest is calculated as (Cap Cost + Residual) * Money Factor, so if you increase the residual by doing 10k vs 12k miles, you pay MORE interest. The lower residual with higher mileage leases means you pay less interest, but more depreciation.

Here is a sample on the lease I did on my car.

Some assumptions from when I leased: $57000 MSRP, $50000 selling price, 27 months, 0.00170 lease rate, 69% residual for 15k, 7% sales tax rate.

Let's say I drive 12k miles/yr:

a) 10k lease would be $520 a month with tax. I would have to buy 4,500 extra miles, which is $720 but they also charge sales tax on the extra miles, so cost would be $770. That is $28.53 per month if you spread it over 27 months, bringing the total effective cost to $548 per month.

b) I could just do a 12k lease, which would be $542 per month under this scenario. 12k lease is cheaper.

Doing the 12k vs. 10k lease is cheaper

Now let's say I actually drive 15k miles/yr:

a) do 10k lease: $520 per month, plus 11,250 extra miles which would be $1800 + tax, translates to $71.33 extra per month. Effective cost is $591 per month

b) do 12k lease: $542 per month, plus 6,750 extra miles which would be $1080 + tax, which translates to $42.80 extra per month. Effective cost is $585 per month

c) do 15k lease: $585 per month

Doing the 12k (or 15k) lease vs. 10k lease is cheaper


So doing 10k and buying extra miles isn't always the best. It might be in some scenarios, but there are certain combinations of selling price, MF, residual and term that might create an outcome where it is actually better to just do 12k or 15k miles.
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Last edited by SARAFIL; 10-23-2012 at 05:48 PM.
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  #13  
Old 10-23-2012, 05:52 PM
djsaad1 djsaad1 is offline
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Why are you only spreading it out over 27 months? Was that your original lease term?
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  #14  
Old 10-23-2012, 05:56 PM
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SARAFIL SARAFIL is offline
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Quote:
Originally Posted by djsaad1 View Post
Why are you only spreading it out over 27 months? Was that your original lease term?
did you see the assumptions I made? yes, my lease was 27 months.

do the same math for a 36 month lease and see what it looks like... you spread over 36 months but then you also need to buy more miles.
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  #15  
Old 10-23-2012, 06:00 PM
djsaad1 djsaad1 is offline
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You might have to buy more miles you might not, it just depends how much you need.

But with my current lease, the numbers end up being cheaper for me (not by much of course) if I did a 10k lease and bought 6000 more miles instead of just doing a 12k lease. The point is that you have control though, I might not need to buy 6000 more miles I might need to only buy 3000.

The price of the miles seems to always stay the same so it makes more sense on a 36 month lease compared to a 27 month lease.

Last edited by djsaad1; 10-23-2012 at 06:05 PM.
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  #16  
Old 10-23-2012, 06:12 PM
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SARAFIL SARAFIL is offline
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Quote:
Originally Posted by djsaad1 View Post
You might have to buy more miles you might not, it just depends how much you need.

But with my current lease, the numbers end up being cheaper for me (not by much of course) if I did a 10k lease and bought 6000 more miles instead of just doing a 12k lease. The point is that you have control though, I might not need to buy 6000 more miles I might need to only buy 3000.

The price of the miles seems to always stay the same so it makes more sense on a 36 month lease compared to a 27 month lease.
I'm trying to follow your math in the example you gave above and it doesn't make sense.

Using the numbers above, assuming $43k selling, $49320 MSRP, 57% residual for 15k (so 59% for 12k and 60% for 10k) and 0.00165 rate for 36 months... and leaving doc, acq and reg fees as upfront instead of rolled into the lease:

I get 10k payment of $492 + sales tax and you need 6000 extra miles which is $960 + tax extra ($26.67 + tax per month) ... which is $518 + tax

For 12k miles, I get $505 + sales tax.

Assuming you do the full 12k miles per year, a 10k lease costs you more. Assuming you only need 3k extra miles, you come out even. Up to you which scenario makes sense, but the 12k lease is likely cheaper.

Care you share the math you came up with?
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  #17  
Old 10-23-2012, 06:21 PM
djsaad1 djsaad1 is offline
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You are right, with your above numbers it doesn't work. With my lease I am at a $32 a month difference between 10k and 12k miles and 6k miles is only $26 a month for 36 months. I took out sales tax all together to simplify.

Last edited by djsaad1; 10-23-2012 at 06:25 PM.
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  #18  
Old 10-23-2012, 06:58 PM
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SARAFIL SARAFIL is offline
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Quote:
Originally Posted by djsaad1 View Post
You are right, with your above numbers it doesn't work. With my lease I am at a $32 a month difference between 10k and 12k miles and 6k miles is only $26 a month for 36 months. I took out sales tax all together to simplify.
My point is there is no reason why there should be a $32 difference between 10k and 12k. Your MSRP is about $50k. The difference in residual for 10k to 12k is 1%. That is about $500, which over 36 months is $13 a month. But you also save about $1 a month in interest. So the true difference on your lease between 10k and 12k should be closer to $12 per month plus tax. There is no way that the difference would be $32 a month unless there is an error in one of your lease calculations.
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  #19  
Old 10-23-2012, 07:01 PM
djsaad1 djsaad1 is offline
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Originally Posted by SARAFIL View Post
My point is there is no reason why there should be a $32 difference between 10k and 12k. Your MSRP is about $50k. The difference in residual for 10k to 12k is 1%. That is about $500, which over 36 months is $13 a month. But you also save about $1 a month in interest. So the true difference on your lease between 10k and 12k should be closer to $12 per month plus tax. There is no way that the difference would be $32 a month unless there is an error in one of your lease calculations.

I am not the op, my car is more than double that in MSRP that is why the difference is so big in 10k to 12k.
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  #20  
Old 10-23-2012, 07:06 PM
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SARAFIL SARAFIL is offline
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Originally Posted by djsaad1 View Post
I am not the op, my car is more than double that in MSRP that is why the difference is so big in 10k to 12k.
Ah, my mistake.... figures.

what model do you have? If it is a 7-series, hope you contemplated that the extra miles are not $0.16.

But you bring up a good point, as the MSRP goes up, it is generally better to buy the extra miles later. But as I just mentioned, the rate on a 7er is a bit higher which changes the math.
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Last edited by SARAFIL; 10-23-2012 at 07:07 PM.
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  #21  
Old 10-23-2012, 07:18 PM
djsaad1 djsaad1 is offline
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Its a 650 gran coupe, I am hoping it is still the $.16 rate, I didn't know the rate changes on different models.
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  #22  
Old 10-23-2012, 07:57 PM
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SARAFIL SARAFIL is offline
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Originally Posted by djsaad1 View Post
Its a 650 gran coupe, I am hoping it is still the $.16 rate, I didn't know the rate changes on different models.
yes, it only changes on the 7-series models. It is $0.25 rather than $0.20 at end of lease, and I believe $0.22 rather than $0.16 for mid-term adjustment. Pre-paying upfront for extra lease miles above 15k is $0.20 on a 7-er and $0.15 on other models.

I think they **should** use the higher rate for the 6-series for the same reason they do on the 7-series (they depreciate much more than the other models if they have high miles), but BMW never did this when they relaunched the 6-series in 2004 so it has retained the standard mileage charge.
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Last edited by SARAFIL; 10-23-2012 at 07:59 PM.
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  #23  
Old 10-23-2012, 08:11 PM
cchrisv cchrisv is offline
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Originally Posted by cchrisv View Post
I will likely do 10K/year since I have yet to keep a car the entire length of a lease anyways. Question: If I do MSDs and I sell or trade the car before the end of the lease do I get the money back?

Anyone know this answer to my question?
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  #24  
Old 10-23-2012, 11:38 PM
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miamiboyca miamiboyca is offline
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Anyone know this answer to my question?
You always get MSD's back.

If your car is worth more than you owe when you trade it in yes.

If you are below miles at the end of the lease - you do not get anything back.
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  #25  
Old 10-23-2012, 11:44 PM
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Originally Posted by SARAFIL View Post
Just want to point out a few things to consider: Your idea can be a good one, but you should always do the math because it can vary deal to deal.

So doing 10k and buying extra miles isn't always the best. It might be in some scenarios, but there are certain combinations of selling price, MF, residual and term that might create an outcome where it is actually better to just do 12k or 15k miles.
SARAFIL

I do not pay sales tax on the additional miles, and my selling price was higher than your assumption.

For me - My travel schedule seams to fluctuate... some years I fiy !25K miles, other years 15K - as such my utilization varies. This gives me the flexibility.

I do agree - no doubt and hence my disclaimer. Everyone should run the numbers and see if it works for them. Typically it saves me a few bucks per month (usually 15-25 per month) and the flexibility works for me.

I did not know that about the 7 series, but makes perfect sense.
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