NEW 2014 bev LEASE *URGENT* *OPINIONS REQUESTED* california

[stewfu]

Hello all first time post, this place seems like a very helpful community do you think this is a good deal? something seems off to me this will be my first lease ever, im new to all of this.

apparently i needed a co-signer because i got declined since this is my first loan ever. but the manager talked to financial for hours and was able to get me this deal. i am able to get a cosigner but these guys seemed desperate to get rid of the vehicle today. they even bought me lunch.

it is for a 2014 i3 with tech and nav options.20" rims came out to 49,150 MSRP

dealer said they will take it down to 46,000 and not make anything. i sald go lower, so now they are at 45,500 telling me they are now losing money.


**LOCATION SOUTHERN CALIFORNIA**
MSRP $49,150
gross cap cost/selling price $45,500 ***are they really losing money? ***

total rebates : $7,500

net cap cost: $39,316

cash up front i need to give is $3,500, which they said i will get back around $3,000 at the end of lease



term. 30 months/10,000 i chose 30 months to get a $2,500 ca rebate when do i get the rebate?

M.F.: .00185 but the first deal they offered a lower .00166 so i dont know why this went up. sneaky guys?

my credit score is 734 im new to all of this but i think im learning very fast !

residual : .58

payment : $522.24 /per month which seems high seeing that some of you pay only $380.00



the manager seemed VERY UPSET THAT I HAD TO LEAVE.he even chewed out the sales person that promised him i could get 3,500 cash, but the bank closed. they kept me for 3 hours trying to talk to financial services, almost makes me not want to go back.


what do you think?

 

[stewfu]

 

[chenzq]

I leased a REX at the same MSRP about a month ago. The selling price was $41K before the lease cash. The implied interest rate was about 2.5%. I'm in the Bay Area. Did 30 months to get the rebate.

 

[stewfu]

I leased a REX at the same MSRP about a month ago. The selling price was $41K before the lease cash. The implied interest rate was about 2.5%. I'm in the Bay Area. Did 30 months to get the rebate.

You got a great deal!

 

[Birdofparadise]

I thought you didn't get rebates when on a lease. But if the lease is 30 months , do you fed and state rebates?

 

[chenzq]

The so-called "selling price" was 41K. That was before the lease rebate of $5500. Mine was about $8000 off MSRP. I think the best deal on the board was $8500, but the dealer told me they couldn't do that with a 49K MSRP car. The board helped me tremendously!

You don't get the Federal tax credit ($7500) for doing a lease, however BMW will chip in $5500 (do they get a tax credit?). To me the $5500 makes more sense: I'm only owning the car for 2.5 years, while the $7500 covers the entire life of the car. Assuming the life of the car is 8 years, getting $5500 discount for 2.5 years is far better than $7500 for 8 years.

The California $2500 rebate requires keeping the car in California for 30 months.

Back to the pricing, the supply/demand for the 2014 model has probably changed, as they are selling out the old ones.

Hope that helps.

 

[Nicholai]

That shouldn't be MSRP for a BEV. If you're still considering the car, PM me and I'm happy to help you work out the details and what a good deal for your car "should" be.

 

[PDXelectric]

Hello all first time post, this place seems like a very helpful community do you think this is a good deal? something seems off to me this will be my first lease ever, im new to all of this.

apparently i needed a co-signer because i got declined since this is my first loan ever. but the manager talked to financial for hours and was able to get me this deal. i am able to get a cosigner but these guys seemed desperate to get rid of the vehicle today. they even bought me lunch.

it is for a 2014 i3 with tech and nav options.20" rims came out to 49,150 MSRP

dealer said they will take it down to 46,000 and not make anything. i sald go lower, so now they are at 45,500 telling me they are now losing money.


**LOCATION SOUTHERN CALIFORNIA**
MSRP $49,150
gross cap cost/selling price $45,500 ***are they really losing money? ***

total rebates : $7,500

net cap cost: $39,316

cash up front i need to give is $3,500, which they said i will get back around $3,000 at the end of lease



term. 30 months/10,000 i chose 30 months to get a $2,500 ca rebate when do i get the rebate?

M.F.: .00185 but the first deal they offered a lower .00166 so i dont know why this went up. sneaky guys?

my credit score is 734 im new to all of this but i think im learning very fast !

residual : .58

payment : $522.24 /per month which seems high seeing that some of you pay only $380.00



the manager seemed VERY UPSET THAT I HAD TO LEAVE.he even chewed out the sales person that promised him i could get 3,500 cash, but the bank closed. they kept me for 3 hours trying to talk to financial services, almost makes me not want to go back.


what do you think?

Hi,

I am a little confused by the details on your chart. The 3500 down is listed as a security deposit. That would explain you potentially getting it back at lease's end. However, if it is a security deposit, the $522/month is essentially for 0 down including taxes. The deal above essentially gets you the car for $11000 off MSRP in addition to the $2500 tax rebate next year. If you recalculate your deal with actually putting $3500 down instead of $200 down + $3300 security deposit, your payment would be around $400. If you calculated it with $3500 down and a 0.00125 MF it would be around $350/month.

Your credit score is in the good range though the last BMW chart I looked at had the best rates above 739. However, if you need a co-signer, I would think they could get you a better rate. Reasons for requiring a security deposit could include income and lack of credit history.

I don't think the lease is a bad deal, but I would clarify both the interest rate and the security deposit. BMW charges a disposition fee when you return the lease. I am assuming what the sales guy meant would be you getting back your security deposit - dispo fee = 3000 at lease's end.

As it stands, your total lease cost is monthly payment + money down + dispo fee - tax rebate = 15667 + 200 + 350 - 2500 = 13717. This would be about $457 monthly or $5400 yearly. This doesn't include potential returns on investment of your security deposit thought that would be liberally about $500 in 2 years.

Good luck

 

[stewfu]

Thank you PDXelectric , your breakdown really helped me understand my lease, abd thanks chenzq and all for the valuable input I now feel more confident in leasing my first car ever I am going to make them lower the selling price and get me a better MF rate. So glad I found this place

 

[Birdofparadise]

Are you guys using a lease calc app? I'm trying to do my own calculations, but my inputs are
Price, sales tax, down payment, interest (MF) loan term, residual

I can't seem to get a monthly payment that matches what you guys say.

It's very confusing if it is the first time to lease

 

[Birdofparadise]

Lease guide.com has a good calc, on the deal mentioned above, I'm confused on the cap cost reduction is 6100 and not closer to 11k

 

[PDXelectric]

Lease guide.com has a good calc, on the deal mentioned above, I'm confused on the cap cost reduction is 6100 and not closer to 11k

This is where it gets a little confusing. The incentives from BMW can be added as cap cost reduction (as in a discount) or lease cash which gets added as money down. Depending on the state, this may have sales tax implications. However, the end numbers should be about the same.