jpa2825
Active member
After some research (thanks), an extended test drive (2015 REX) and a few posts, I am ready to get serious about pursuing an i3 to replace 2012 LEAF coming off lease. Will try to break out the topics to avoid it being seriously long and all over the place. For this one, I am looking to document the components of the BMWFS Lease
MSRP - fixed
Sales Price - negotiable
Down payment / Cap Reduction - variable, but should start with $7,500 fed rebate on 2015. (I have been told they can only provide $4,875 on a 2014, but I don't know why that is.)
MSD - up to 7 to reduce the money factor. Not sure what min or max is for each of the 7. If borrowing the $ for the sec dep on a 4% home equity line of credit, is it better to borrow to reduce the MF for the term? Can't imagine that would make sense.
MF - .00131 (3.14%) seems to be the starting point for very good credit (760+); would expect to have 800 or so; will that yield anything lower without MSDs?
Acquisition Fee - $925 seems to be the standard. Is that negotiable?
Tax / Title / Registration Fees - these seem to be state specific. Just need to confirm that dealer is not putting any "fluff" in those figures.
Documentation / Admin / Upfront Fees - are all of these just dealer profit? Are any required by BMWFS? Are they negotiable?
Miles / yr. - 10k seems to be standard; are there other options? If so, presumably would impact the residual as well.
XS Miles - standard seems to be $.20, but suggestions are this can be negotiated down to $.15 or $.16. Also seems to be an option to prepay XS miles. Unless there is a discount to prepaying miles, why would you ever do that?
Term - I am looking for 24. Actually, 23.9 is best for me. Want to paper it to pick up 1.1.16 and turn it in 12.31.17 (I am sure paperwork will show 1.1.18 but I'm hoping I can turn in a few days early. This is because KY charges property tax on the value of whoever owns the car on 1.1. Will try to avoid paying 3 yrs. tax for a 24 mo. lease. Not sure I can.)
Residual - presumably not negotiable. 24 mo. / 10k miles appear to use 63% as the factor off MSRP.
Disposition Fee - seems to be $350 if you turn it in
Purchase Option Fee - seems to be $0 on the deals I have seen, but there is a line for it. Assume this is what you have to pay to exercise your buy right? Can understand why it is $0 as they want to encourage you to buy it.
Above are the elements of the formula. Below is the formula (as I understand it)
MSRP * Residual % = Residual
MSRP - Residual + Acquisition Fee = Cap Cost
Cap Cost - Down Payment / Cap Reduction = Financed amount / depreciation
Financed amount / depreciation * MF = monthly base payment
Monthly base payment + sales tax & anything else = Monthly payment
Can you help me wherever I messed up above?
MSRP - fixed
Sales Price - negotiable
Down payment / Cap Reduction - variable, but should start with $7,500 fed rebate on 2015. (I have been told they can only provide $4,875 on a 2014, but I don't know why that is.)
MSD - up to 7 to reduce the money factor. Not sure what min or max is for each of the 7. If borrowing the $ for the sec dep on a 4% home equity line of credit, is it better to borrow to reduce the MF for the term? Can't imagine that would make sense.
MF - .00131 (3.14%) seems to be the starting point for very good credit (760+); would expect to have 800 or so; will that yield anything lower without MSDs?
Acquisition Fee - $925 seems to be the standard. Is that negotiable?
Tax / Title / Registration Fees - these seem to be state specific. Just need to confirm that dealer is not putting any "fluff" in those figures.
Documentation / Admin / Upfront Fees - are all of these just dealer profit? Are any required by BMWFS? Are they negotiable?
Miles / yr. - 10k seems to be standard; are there other options? If so, presumably would impact the residual as well.
XS Miles - standard seems to be $.20, but suggestions are this can be negotiated down to $.15 or $.16. Also seems to be an option to prepay XS miles. Unless there is a discount to prepaying miles, why would you ever do that?
Term - I am looking for 24. Actually, 23.9 is best for me. Want to paper it to pick up 1.1.16 and turn it in 12.31.17 (I am sure paperwork will show 1.1.18 but I'm hoping I can turn in a few days early. This is because KY charges property tax on the value of whoever owns the car on 1.1. Will try to avoid paying 3 yrs. tax for a 24 mo. lease. Not sure I can.)
Residual - presumably not negotiable. 24 mo. / 10k miles appear to use 63% as the factor off MSRP.
Disposition Fee - seems to be $350 if you turn it in
Purchase Option Fee - seems to be $0 on the deals I have seen, but there is a line for it. Assume this is what you have to pay to exercise your buy right? Can understand why it is $0 as they want to encourage you to buy it.
Above are the elements of the formula. Below is the formula (as I understand it)
MSRP * Residual % = Residual
MSRP - Residual + Acquisition Fee = Cap Cost
Cap Cost - Down Payment / Cap Reduction = Financed amount / depreciation
Financed amount / depreciation * MF = monthly base payment
Monthly base payment + sales tax & anything else = Monthly payment
Can you help me wherever I messed up above?