Leasing 2014 i3 Rex

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Schanrx04

Member
Joined
Mar 25, 2015
Messages
7
I was able to negotiated the top of the line I3 from $55k MSRP to $46500.
$20k, 1.9%, 5 years term for $490 per month.

At the finance table, I was convinced to lease instead because BMW has leasing incentive of $4400, which intern I only need to put down $1600 as supposed to $20K that I was originally plan to put down to purchase. It is a 3 years lease. $592 per month with mileage of 15000 per year. I don't often lease. I find it a bit complicated for me with the number, throwing the fed incentive (which Doesnt apply to leasing).

But the fact that I only need to put down very little and together with the uncertainty of the vehicle's reliability after 3 years, I'm convinced to go with the lease. The fianance guy did not try to convince me one way or the other. What do you guys think??
Your feedback is greatly appreciated.
Thanks.
 
I think leasing is a better option for electric cars.
The $4400 should actually be $5500 and it’s the portion of the tax credit that BMW is passing on to the buyer.
I am not sure what the residual value is for 36 month 15k a year
The sweet spot for the I3 lease is 24 months, unless you are in CA and you should do at least 30 months in order to get the state incentives.
Just to give you an idea for a 24 month lease with 10k a year miles your payment should be around ~$410 for 2 years with no money down plus taxes.
if you can ask the dealer for the info below, we can help you better with the numbers
Dealer Acquisition Fee, Tag Fees, Residual value, money Factor and your tax rate on lease
 
Lectro, can I email you a copy of the summary of charge-page for the sale (which was done originally) and the lease agreement (which canceled the sale agreement).. i can't sleep well cuz of this, and having a 2nd option, either it turns out to be a good or bad deal, at least i can move on. Or just shoot me quick email, and I will reply back with a copy.
Thanks.
 
I hope this helps.


Determining a Fair BMW Lease Price

Many people overpay for their lease because they do not understand how lease payments are calculated. Since federal regulations do not require disclosure of how the dealers come up with monthly payment and amount due at signing, most dealers do not disclose it, and you cannot check their calculations to see if you are getting a fair deal. Even the special lease offers from BMW do not include taxes and various fees that you would have to pay in their advertised price.

Your monthly lease payments are actually calculated based on depreciation cost, finance cost and taxes. Depreciation cost is what you pay for the vehicle value that you “use up” during the time that you have the car. Finance cost is the interest that you pay to the leasing company for the use of its money. State sales tax is charged on top of these two costs and is determined by your state of residence, not by the location of the dealership.


The depreciation cost is calculated as follows:



Depreciation Cost = (Vehicle Price – Cost Reduction – Residual Value) / Lease Length



The vehicle price is the price that you negotiate with the dealer. Some dealers might tell you that the price is not negotiable, but this is simply not true. The lower you can negotiate the price, the lower your monthly payment. The vehicle price should be equal to the sum of the car’s invoice price, some profit for the dealer and some additional charges. The amount of profit that a dealer would be willing to accept depends on the car model and on your negotiation skills. Additional charges include destination ($875), advertising (varies by dealership, but usually $200 - $400) and training ($180) fees.

The cost reduction includes your down payment, trade-in vehicle credit, rebates and factory incentives.

The residual value is the value of the car at the end of the lease. This value is calculated as a percentage of MSRP. Since BMW, and not the dealers, sets both MSRP and the residual value percentage, this value is not negotiable. Since federal regulations do not require disclosure of the residual value percentage, you would need to find this information online or ask the dealer.

The lease length is the length of your lease in months. BMW typically offers leases that are 24, 36, 48 or 60 months long. Longer the term, lower your monthly cost. it's worth extending your maintenance if you are taking a 60 month lease. The original Full Maintenance plan expires after 48 months or 50,000 miles. The extension will cover you to 72 months or 100,000 miles.


The finance cost is calculated as follows:



Finance Cost = (Vehicle Price – Cost Reduction + Residual Value) * Money Factor



The money factor is the interest rate charged by the leasing company divided by 2400. For example, a 6.6% interest rate is equivalent to a 0.00275 money factor. Some dealers try to confuse customers by quoting the money factor as though it is an interest rate, for example, “2.75 money factor.” In this context, the money factor sounds like a low interest rate even though it is not. Since federal regulations do not require disclosure of the interest rate or of the money factor, you would need to find this information online or ask the dealer.


The monthly lease payment is calculated as follows:



Monthly Lease Payment = (Depreciation Cost + Finance Cost) * (1 + Tax Rate)



This formula gives the correct monthly lease payment amount that the dealer should charge you. However, you need to be aware of the math behind this formula to make sure that there are no intentional or unintentional mistakes and that you are getting a fair deal on your BMW.


The amount due at signing is calculated as follows:



Due at Signing = 1st Month's Payment + Security Deposit + (Down payment + Fees) * (1 + Tax Rate)



Security deposit varies depending on your monthly payment. It is equal to the monthly payment (including tax) rounded up to the nearest $50. For example, if your monthly payment comes out to $555, your security deposit will be $600. Security deposit is refundable at the end of the lease.

We recommend that customers put nothing toward down payment when leasing a vehicle because in the event of a total loss of the vehicle, you might lose your down payment!

Fees include the $795 lease acquisition fee charged by BMW as well as various other fees. Some of the other fees are charged by the state, therefore, they vary by state. Others are dealer charges such as documentation fee, preparation fee and various other fees.
 
If you use an iOS device then download Leasamatic and crunch the numbers yourself. You'll understand what the dealer is trying to do. Good luck!
 
Schanrx04 said:
I was able to negotiated the top of the line I3 from $55k MSRP to $46500.
$20k, 1.9%, 5 years term for $490 per month.

At the finance table, I was convinced to lease instead because BMW has leasing incentive of $4400, which intern I only need to put down $1600 as supposed to $20K that I was originally plan to put down to purchase. It is a 3 years lease. $592 per month with mileage of 15000 per year. I don't often lease. I find it a bit complicated for me with the number, throwing the fed incentive (which Doesnt apply to leasing).

But the fact that I only need to put down very little and together with the uncertainty of the vehicle's reliability after 3 years, I'm convinced to go with the lease. The fianance guy did not try to convince me one way or the other. What do you guys think??
Your feedback is greatly appreciated.
Thanks.

Why wouldn't you do Owner's Choice? That way you could get the full $7500 back, instead of $4400 (which should be $4875 or $5500 for leasing, based on what area you're in).

You get the same "security" as a lease when it comes to the ability to turn the car in at the end of your term for a pre-determined residual.
 
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