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Discussion Starter #1
This will be my first BMW but also first time leasing so I want to try to make sure I'm not being had. Been shopping around and this is my most recent quote from the dealer.

MSRP: 52,070
Discount Savings: -$5,485 (Includes $1500 Corporate Fleet Discount)
Selling Price: $46,585
Total Cap: $46,585
Rebate Savings: -$1500
Net Cap: $45,085

Doc Fee: $309.50
License / Title: $304.50
Tire/Battery/VTR Fee: $6
Acquisition Fee: $925.00
Tax on Collected Items: $1,435.06 (New Jersey)

MF: .00127
Annual Miles 12,00
Residual: 62%

Monthly Payment w/ $2500 down = $485.40

Would love your opinions on this deal as again this is my first time leasing. Thanks!
 

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This will be my first BMW but also first time leasing so I want to try to make sure I'm not being had. Been shopping around and this is my most recent quote from the dealer.

MSRP: 52,070
Discount Savings: -$5,485 (Includes $1500 Corporate Fleet Discount)
Selling Price: $46,585
Total Cap: $46,585
Rebate Savings: -$1500
Net Cap: $45,085

Doc Fee: $309.50
License / Title: $304.50
Tire/Battery/VTR Fee: $6
Acquisition Fee: $925.00
Tax on Collected Items: $1,435.06 (New Jersey)

MF: .00127
Annual Miles 12,00
Residual: 62%

Monthly Payment w/ $2500 down = $485.40

Would love your opinions on this deal as again this is my first time leasing. Thanks!
First, they have the money factor marked up a bit. If you are eligible for the corporate discount, it means you also get a .00020 discount on money factor, meaning that the money factor they quoted you is actually .00147, then corporate discount applied. Base money factor is .00137 so they have it marked up .00010. Money factor for tier 1 credit is currently .00137-.00177 negotiable between you and the dealer, so its not marked up much but it IS marked up.

Second, do not figure any discount they are giving you with your corporate discount factored in. That comes from BMW to them, and you are eligble for it, so its should not be marked as part of any :"discount" the dealer is giving you.

The selling price they are really offering you is $48,085. Look at the ask a dealer section of bimmerfest, and calculate the invoice on your car using the threads there. Make sure to pick the right model year (either 2016 or 2017) pricing threads so that you get the right calculation, because they are different.

My napkin math looks like the cap cost / selling price (48,085) might be close to invoice... maybe within 500 or so. I did not calculate it though.

The fees dont seem too bad. The lease acquisition fee is mandatory and non negotiable.

Third, you dont want to put anything down (no cap cost reduction) on a lease. All you are doing is pre paying part of the payments... its not really making you spend less money, just LOOK like you are spending less money. You are better off setting that 2500 aside in a bank and pulling from it to supplement your payments. Your monthly payment is not actually 485.40.... its 485.40 + 2500 / 36 (69.44), so its 485.40 + 69.44 = 554.85.

Not sure how much competition there is in delaware, so I cant tell you how good a price the car or the monthly is... just giving you info on what is happening with what they quoted.
 

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To which I would add that you should use that cash for maximum MSD's (if they are allowed in your state) to bring down the MF. Great risk-free investment.
 

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To which I would add that you should use that cash for maximum MSD's (if they are allowed in your state) to bring down the MF. Great risk-free investment.
Agreed.
 

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Second, do not figure any discount they are giving you with your corporate discount factored in. That comes from BMW to them, and you are eligble for it, so its should not be marked as part of any :"discount" the dealer is giving you.
Just one clarification. jj is correct that the Corp Fleet Cash as I call it is separate from the discount from MSRP (or invoice plus, if you go that way.)

But from a pure logistical standpoint, it has to be included as discount, not rebate. So we present the total discount to MSRP.

I've reviewed leases that show it separately, and as rebate, which is wrong and has tax implications.

I've also seen offers that don't disclose that the Fleet Cash is in the discount.

So follow jj's advice, calculate your offer to the dealer on their price, then take off the Fleet Cash from that price.

Michael
 

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Discussion Starter #6
Just want to say thank you guys for all of the information!! Jersey does allow MSD's so I am definitely going to look into doing that now rather than the down payment.
 
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