Lease help

Looking to lease a 335 m sport and need some advice on the numbers i got from the dealer.

$43,150
M Sport
$3,200
Driver Assistance Package
$1,900
19" star-spoke 403M wheels w/ mixed summer tires
$900
Premium Package
$2,200
Technology Package
$3,100
Increased top speed limiter w/Performance Tires
$0
Sport automatic transmission with shift paddles
$500
Heated front seats
$500
Destination & Handling:
$895

Total MSRP as Built $56,345
sell price $52,590

36/months, 10k/miles
$650/month including 9%tax
$2,200 drive off
includes first month
registration $450
$895 bank fee?
$80 doc fee?
So is this a good deal or is there room in there?

looks good, consider doing the MSD's. Will cost you an extra 3500 up front, but you will get it back at lease end and it will lower your payments by like 60 bucks a month.

What Money Factor are they using? MSD = Multiple Security Deposits, read all about them in the Ask a Dealer forum. The Ask a Dealer forum has great resources to educate yourself about leases.

Welcome to the 'fest. Good luck with your purchase.

Thanks for the quick responses. I dont want to put any additional money down even if i get it back. He showed me the sheet which he wouldnt give me but it said a money factor of 1.3 on his breakdown but he said its the .0013 which from what i understand is the base. Is that correct and a good mf?

The bank fee from BMW is 725 (can't negotiate that). However these guys are charging you an extra $170 - which you can.
Go to bmwconfig website to figure out invoice.
What is the MF rate they are giving you?
What is this 450 registration fee? Does it really cost $450 to register a car in california?

Originally Posted by furby076

The bank fee from BMW is 725 (can't negotiate that). However these guys are charging you an extra $170 - which you can.
Go to bmwconfig website to figure out invoice.
What is the MF rate they are giving you?
What is this 450 registration fee? Does it really cost $450 to register a car in california?

They told me its $895 in the bay area or cali when i said it should be $725 so that i need to confirm.
the price is right i checked what the invoice should be
MF is .0013 from what i understand is good
Yes the registration in cali is crazy.
so if all those numbers i show are real is this a good deal?

Originally Posted by hispeed4fun

They told me its $895 in the bay area or cali when i said it should be $725 so that i need to confirm.
the price is right i checked what the invoice should be
MF is .0013 from what i understand is good
Yes the registration in cali is crazy.
so if all those numbers i show are real is this a good deal?

Comapring to the other leasing thread, this deal is not great, but good.

If you don't want to get into the annoying lease math when talking to dealer, a general rule of thumb is, for 10k miles per year lease, your average monthly pre-tax cost should be as low as to 1% of the car's MSRP, some people get even lower than 1% after applying MSD. You are at 1.13% which is 13% higher than a great deal right now. By applying MSD, you can save about $43 a month, which brings you down to 1.06%, 6% higher than a great deal.

A great deal looks like this:
$2,200 drive off
$516.7 mongthly before tax

If you are not in an area demand is much higher than supply, and you are leasing from dealer's inventory, this should be achievable after MSD.

Of course, anyway you can make it even lower, better.

Originally Posted by hispeed4fun

Thanks for the quick responses. I dont want to put any additional money down even if i get it back. He showed me the sheet which he wouldnt give me but it said a money factor of 1.3 on his breakdown but he said its the .0013 which from what i understand is the base. Is that correct and a good mf?

If you have the cash available to do MSDs, which lower the MF, doing so is a pretty good form of "investment" generally yielding an effective return somewhere between 7% - 10% depending on the specifics of each lease deal.

Originally Posted by hispeed4fun

They told me its $895 in the bay area or cali when i said it should be $725 so that i need to confirm.
the price is right i checked what the invoice should be
MF is .0013 from what i understand is good
Yes the registration in cali is crazy.
so if all those numbers i show are real is this a good deal?

Contact one of the board sponsors. If they lied about the bank fee who knows what else they lied about. Boar d owner is from SoCal

Go to http://bmwconfig.com/BmwConfig/Config.aspx and built the car to see what invoice is about.

Originally Posted by shaftwhy

Comapring to the other leasing thread, this deal is not great, but good.

If you don't want to get into the annoying lease math when talking to dealer, a general rule of thumb is, for 10k miles per year lease, your average monthly pre-tax cost should be as low as to 1% of the car's MSRP, some people get even lower than 1% after applying MSD. You are at 1.13% which is 13% higher than a great deal right now. By applying MSD, you can save about $43 a month, which brings you down to 1.06%, 6% higher than a great deal.

A great deal looks like this:
$2,200 drive off
$516.7 mongthly before tax

If you are not in an area demand is much higher than supply, and you are leasing from dealer's inventory, this should be achievable after MSD.

Of course, anyway you can make it even lower, better.

Seriously doubt he can get down to $516 pre tax, without cap reduction and/or MSDs. Your method needs some clarification, is the 1% rule of thumb with zero down and no MSDs? If he must put $5k extra down as MSDs to get close to $516, the 1% rule needs to state that, which may not be applicable to other brands.

Originally Posted by dtc100

Seriously doubt he can get down to $516 pre tax, without cap reduction and/or MSDs. Your method needs some clarification, is the 1% rule of thumb with zero down and no MSDs? If he must put $5k extra down as MSDs to get close to $516, the 1% rule needs to state that, which may not be applicable to other brands.

Sorry for not being very clear.

The 1% rule of thumb is after MSD. Down payment in a lease doesn't change the result too much as the lease monthly interest is calculated by (Cap after cost reduction + Residual) * MF, even you put a dwon payment can cover all depreciation, you are still paying monthly interest at(Residual + Residual) * MF.

The 1% rule of thumb only applies to models are well established in the market, such as BMW 3, Mercedec C. It's impossible to me to do 1% with models are ramping up such as X5. It is applied to models which are being promoted aggressively, such Cadillac ATS. I have never known anybody has done 1% with Audi A4. I myself leased a 2013 328i Sedan a few days ago, and my monthly cost is 0.99% of MSRP. Before this I did a lot of studies and I came up with a similar theory to compare offers (basically for a great lease deal 3 year lease cost should be very close to 36% of MSRP), then I saw this 1% rule of thumb in some forum and it matches my theory and it's easier to explain.

Apparently 1% rule of thumb cannot be apllied to all cars at all time. An easy way to figure out what's the proper percentgae for certain car, is to go to manufacture's web site, find their special lease offer for that car, calculate lease monthly pre-tax cost percentage of MSRP. Then you should be able to get a bit lower than that if you have flawless credit history and a motivated dealer.

Originally Posted by furby076

What is this 450 registration fee? Does it really cost $450 to register a car in california?

That's nothing. It was a little lower a few years back, but if you go even further back, it used to be a lot higher, perhaps around $1000 for a car like this. Registration fees is the reason why governor Davis got recalled and Aaaaahrnold got elected. I am not kidding.

Fortunately, reg fees go down every year, especially during the first three years.