Lease newbie - are these numbers okay?

[bimmerc]

Just got this quote from a Los Angeles based dealer for this car:
2014 Rex
Base 45,200.00
Giga World 1,700.00
Electronaut Edition (heated seats and dc fast charger) 1,050.00
Parking Package 1,000.00
Technology Package 2,500.00
Harman Kardon Sound 800.00
Destination Charge 925.00
MSRP 53,175.00

I'm new to leasing, I usually buy, but I'm not comfortable with where this technology may be in a couple of years and don't want to end up owning an obsolete/unsaleable product. So I'm looking into leasing but can't tell if this is a good deal or not.

Lease Terms
Lender BMW Financial Services
Term 24 Months
Mileage 12,000/year
Money Factor 1.29 (I think I see other forum members getting 1.25)
Residual Factor 62%
Selling Price $45,100.00

Total Capitalized Cost
$45,100.00
Residual Value $32,968.50
Total Depreciation $4,674.71
Capital Reduction $7,456.79
Monthly Depreciation $194.78
Monthly Rent $91.09

Monthly Payment $285.87
Tax (9%) $25.73

Monthly Payment + Tax $311.60
Capital Reduction $7,456.79
Cap Reduction Tax (9%) $767.86
License & Registration $388.75
Bank Fee $995.00
Documentation Fee $80.00
First Payment $311.60
Security Deposit $0.00

Drive Off $10,000.00
Trade Equity $0.00
Rebate $5,500.00 (looks like this is the Federal credit that BMW is "passing on" to customers)

Due at Signing $4,500.00

Thanks for any feedback!

 

[GoochBHBMW]

Everything looks right on point. 5500 is being passed on to the customers if you lease and if you lease for 30 months then you get back 2500 from the state. What you need to focus on is money out of your pocket and what the monthly lease price is. 4500 is a lot out of pocket and your monthly should be lower.

 

[Zony]

Just got this quote from a Los Angeles based dealer for this car:
2014 Rex
Base 45,200.00
Giga World 1,700.00
Electronaut Edition (heated seats and dc fast charger) 1,050.00
Parking Package 1,000.00
Technology Package 2,500.00
Harman Kardon Sound 800.00
Destination Charge 925.00
MSRP 53,175.00

I'm new to leasing, I usually buy, but I'm not comfortable with where this technology may be in a couple of years and don't want to end up owning an obsolete/unsaleable product. So I'm looking into leasing but can't tell if this is a good deal or not.

Lease Terms
Lender BMW Financial Services
Term 24 Months
Mileage 12,000/year
Money Factor 1.29 (I think I see other forum members getting 1.25)
Residual Factor 62%
Selling Price $45,100.00

Total Capitalized Cost
$45,100.00
Residual Value $32,968.50
Total Depreciation $4,674.71
Capital Reduction $7,456.79
Monthly Depreciation $194.78
Monthly Rent $91.09

Monthly Payment $285.87
Tax (9%) $25.73

Monthly Payment + Tax $311.60
Capital Reduction $7,456.79
Cap Reduction Tax (9%) $767.86
License & Registration $388.75
Bank Fee $995.00
Documentation Fee $80.00
First Payment $311.60
Security Deposit $0.00

Drive Off $10,000.00
Trade Equity $0.00
Rebate $5,500.00 (looks like this is the Federal credit that BMW is "passing on" to customers)

Due at Signing $4,500.00

Thanks for any feedback!

Agree with Gooch... there is a 2k build-out cash that should be in there if I'm not mistaken - and your MF should be .00125 (3%) depending on FICO... last residuals I saw for 24/12k was 63% - not 62 but that may be changing as the 15's are on there way. All that said, your selling price is a tick over 15% off MSRP - quite good, and they are rolling the fed credit (4875+625 incentive) of 5500 as a down - if you push for the 63% AND the 2k that will reduce your cash out of pocket to 1900 for the same payment (give or take). BTW - they are also nicking you on the Bank (acquisition fee) by 200 bucks... not big bucks, but you have several countering ploys available - if it were me (they need to make a buck here as well), go for 17% off MSRP and the 2k build out - let them have the MF, residual, and Bank.

I'd be curious to see what the 30/12k residual is... I am guessing about 55-56% from what I have seen on the boards in the last 45 days... the CA rebate saves you 10-20 bucks a month net depending on the financing and residual - anything less is more a wash and you'll be ready for the 17 EV model class across the board which should be intriguing to say the least.

As always... just my 2 cents as I am shopping like crazy right now as well
Enjoy and look forward to seeing where you land -
Z

 

[bimmerc]

Thanks Gooch and Zony, really helpful info.
Now I have more of a ballpark to work with.
Here are their numbers with 30 month/12k per year. Residual is 57%

Lease Terms
Lender BMW Financial Services
Term 30 Months
Mileage 12,000/year
Money Factor 1.29
Residual Factor 57%
Selling Price $45,100.00

Total Capitalized Cost
$45,100.00
Residual Value $30,309.75
Total Depreciation $7,381.36
Capital Reduction $7,408.89
Monthly Depreciation $246.05
Monthly Rent $87.72

Monthly Payment $333.77
Tax (9%) $30.04

Monthly Payment + Tax $363.81
Capital Reduction $7,408.89
Cap Reduction Tax (9%) $763.55
License & Registration $388.75
Bank Fee $995.00
Documentation Fee $80.00
First Payment $363.81
Security Deposit $0.00

Drive Off $10,000.00
Trade Equity $0.00
Rebate $5,500.00

Due at Signing $4,500.00

 

[Zony]

The 30 month will net you about 30/mo with the CA rebate factored in... Also, I may stand to be corrected after reviewing some Edmunds info... the residual for 24/12 is probably 62% - I know someone on this board (maybe Bimmerfest) got a 63% if I recall correctly.

I am guessing they rolled the 2k buildout cash into the selling price? Unless you intend to purchase at the end of lease, try to keep the cash down as little as possible. Also, inquire if the acquisition fee includes gap insurance in the event (hopefully never!) of a total - another reason not to lay out cash in front. I have always leased and purchased as sign and drive.

Still a pretty killer deal... have you done a counter yet? Isn't that what the thrill is all about - heh :mrgreen:

Thanks for posting the details - it helps us all!

Z

 

[GoochBHBMW]

The Gap insurance is always included in the BMW leases so you don't have to worry about that. The residual for the 24 month with 12k miles is 62%. The deal you got is actually really aggressive but I agree that the 2k back from bmw can help you but as it stands the dealership is losing 5k on the deal. That isn't including the 2k back from bmw. So really they are losing 3k. Could they stand to lose some more money? That depends on the dealership and how aggressive they are!

 

[bimmerc]

Got another quote from a different dealer (this looks better - do you think I still have wiggle room?):
Payment Details
Term 30
Base Payment 360.60
Total Payment W/Tax 393.06
Purchase Option 30,324.00
MSRP 53,200.00
Est. Miles Per Year 12,000
Disposition Fee 350.00
Excess Mileage Charge 0.20

Amount Due at Signing
1st Month Payment 393.06
Acquisition Fee 795.00
Fees 506.00
Upfront Taxes 634.21
Cap Reduction (Cash) 671.74
Total Inception Fees 3,000.01
Rebate as Cap Reduction 5,500.00

How Inception Fees are Paid
Cash as Drive Off 3,000.01
Total Credits 3,000.01

Remaining Due (Still Owed) 0.00

Total Cash Required on Delivery 3,000.01

 

[Zony]

Bimmerc - I'll defer to Gooch and others on this... I'd say this looks better and pretty reasonable. If you want to negotiate a bit further... see if another dealer will match or beat, then take that offer back to your PREFERRED dealer (hopefully the one you will take it for service etc.) and show what you have... "I want to buy from you and service here... cut me 20% off pre-paid maintenance, or throw in a car cover or all weather mats and it's done". There might be another 1-2k you can wrestle down, but in the end, what's a good relationship worth?
Again... all the best in the hunt
Z

 

[jhu321]

Got another quote from a different dealer (this looks better - do you think I still have wiggle room?):
Payment Details
Term 30
Base Payment 360.60
Total Payment W/Tax 393.06
Purchase Option 30,324.00
MSRP 53,200.00
Est. Miles Per Year 12,000
Disposition Fee 350.00
Excess Mileage Charge 0.20

Amount Due at Signing
1st Month Payment 393.06
Acquisition Fee 795.00
Fees 506.00
Upfront Taxes 634.21
Cap Reduction (Cash) 671.74
Total Inception Fees 3,000.01
Rebate as Cap Reduction 5,500.00

How Inception Fees are Paid
Cash as Drive Off 3,000.01
Total Credits 3,000.01

Remaining Due (Still Owed) 0.00

Total Cash Required on Delivery 3,000.01

based on those numbers did they give you the "sale" price of the car? working backwords it looks like

30,324 residual
+ 360.60 * 30 = 10818
+ 5500 rebate
=46642?

based on the 53200 MSRP thats a 12% discount... from what i can see in other posts 15~17% is the target discount now. any one else see better than 12%

 

[bimmerc]

Since the sell price wasn't in the original numbers they gave me, I had to ask for it.
Here it is: 44,453.00 (not including the $5500 credit)

 

[seungboy]

anyone see anything better than 10% in the seattle area?

Got another quote from a different dealer (this looks better - do you think I still have wiggle room?):
Payment Details
Term 30
Base Payment 360.60
Total Payment W/Tax 393.06
Purchase Option 30,324.00
MSRP 53,200.00
Est. Miles Per Year 12,000
Disposition Fee 350.00
Excess Mileage Charge 0.20

Amount Due at Signing
1st Month Payment 393.06
Acquisition Fee 795.00
Fees 506.00
Upfront Taxes 634.21
Cap Reduction (Cash) 671.74
Total Inception Fees 3,000.01
Rebate as Cap Reduction 5,500.00

How Inception Fees are Paid
Cash as Drive Off 3,000.01
Total Credits 3,000.01

Remaining Due (Still Owed) 0.00

Total Cash Required on Delivery 3,000.01

based on those numbers did they give you the "sale" price of the car? working backwords it looks like

30,324 residual
+ 360.60 * 30 = 10818
+ 5500 rebate
=46642?

based on the 53200 MSRP thats a 12% discount... from what i can see in other posts 15~17% is the target discount now. any one else see better than 12%

 

[jhu321]

Since the sell price wasn't in the original numbers they gave me, I had to ask for it.
Here it is: 44,453.00 (not including the $5500 credit)

You're at 16.4 percent. If you don't buy it let me know where it's at. You and I are looking for the same car and I'm willing to pay 44453 for it. Lol

 

[sako]

I think that is an average deal compared to what ive seen advertised recently with dealer specials. With 4500 drive off, I think a monthly of ~230 + tax would be an awesome deal.

San Francisco had this insane advertised deal of ~7700 total one time payment for a 2 year lease.

 

[bimmerc]

I got this deal:
$1500 drive off, $350/mo excluding tax (380 including) for a
2014 REx with Giga, Parking Pkg, Tech Pkg, HK System, DC Fast Charging, Heated Seats (MSRP $53,200).
Selling price in the lease is $43,089 (which is $10,111 off MSRP or 19% off) plus they gave me $7000 towards the lease.
I went for the 30 month lease so I could qualify for an additional $2500 rebate from the state of California (30 months are the minimum to qualify).
Total payments (including down payment but no tax) is 11,650 minus the $2500 rebate from CA=$9150.

For the deals that sako mentioned:
The advertised special 4500 drive off, $239 (and is for the BEV) has an MSRP of $44,000. It's hard for me to compare to my MSRP of $53,200 because of different residuals and lease lengths.
The other special of the one time payment of $7700 breaks down to $320/mo for 24 mo, if you do that for 30 mo, you would pay $9600. Not sure if this includes tax. With my deal minus my CA rebate, I'll have paid $9150 (with tax $10,020).

So I'm pretty happy with my deal. And very happy with my REx!

 

[Lectro]

Hi bimmerc,
How did you get $7000 towards the lease? is that a new bmw incentive instead of the $5500?

 

[bimmerc]

Lectro asked,
"How did you get $7000 towards the lease? is that a new bmw incentive instead of the $5500?"

I negotiated for it. I think I had good timing or they were tired of me.

 

[Zony]

Bimmer... very sweet! Just finished our EV tour and my better half wants the i3 REX - we did the gambit... Leaf (which we are in now), i3, Mercedes, VW, KIA, Fiat (more for the fun), and yes, Model S - all in one day. Where did you end up leasing from (if you don't mind sharing your dealer/contact)? Stevens Creek in San Jose has a gazillion Rex's - but I may need to head outside the Bay area to find essentially what you found.
Thanks and congrats again-
Z