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It seems kinda tricky you can get a much lower payment by just going for 3 months more on a lease. Is this any kind of scheme by the dealer? Are they making more money with this?

I'm about to sign for my Jet Black 2003 325Ci PP/SP/HK/Xeons with 20% tints all around and floor mats included.

The final price is $34969.50. 39 months at $566.79 or 36 months at $601.18. Both require security deposit of $600 and first month's payment to drive off. These are final figures and include tax and whatnot.

For the 39 month he has me at a residual of 59% and .0025 money factor. The 36 month is 60% residual.

I asked about a quote if I pre-paid my lease and he came back with 60% residual and a .0235 money factor! I thought if you pre-paid you didn't pay a % for financing, which leads me to believe my dealer is money hungry and getting me in several spots.

Is this a reasonable deal or should I negotiate more with my dealer? Any help will greatly be appreciated! This is a big purchase for me. Thanks!

- Sean
 

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Parking Spot Maven
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That doesn't sound like a good deal to me, especially with the new lower money factor from BMWFS. You should find out all the numbers so you can calculate it (and compare it) for yourself. If they're not willing to divulge the numbers you should probably go somewhere else...

Good luck!

Edit: Err it appears you had the numbers already. I was doing two things at once here and didn't notice heh. Still seems high to me. :dunno:

--SONET
 

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36 mo vs. 39 mo. is not a big deal, if you get lower payments go for 39. But, do check out two additional options: owner's choice and multiple security deposits. Both cases should yield lower payments.

However, I do agree that monthly payments are way too high. Just as a reference: I leased (owner's choice) my 330Ci last year with out-the-door @ $39K, $2.5K down, $515/mo. 36 mo. 15K mi./yr. I do not know the money factor, but I cannot imagine it being lower than today's.

GL.
 

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Realtor/Mortgage Broker
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Why would you prepay? If you have the cash why don't you use it for a down payment and finance the balance? You will be much better off in the end.
 

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Pre-paying might have significant benefits in saving from interest rate. BMW FS has some complicated formulas, and in most cases you really end up saving couple thousand. The multiple security deposit program is also very attractive espeicially since you are getting it back at the end :)
 

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run forrest run..

Here is my answer posted on the Org as well:

You are paying at least $35.00 more a month on the 39months deal, x 39 periods=$1,380.43 (That's how much OVER MSRP the dealer is chargin you).

Even worse on the 36months which is close to $48.00 more a month or 36x$48=$1,725 (That's how much OVER MSRP the dealer is chargin you).

A decent deal would be at MSRP, a godd deal will be under MSRP. Find someone else.

Edit: Here is someone's deal on a Z4 2.5i same MSRP just as a reference-

http://bimmer.roadfly.org/bmw/forums/e85/forum.php?postid=1510558&page=1
 
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