Lease advice

[PatatasFritas]

Fellow M3/4 enthusiasts,

With my upcoming F80 M3, I will be leasing for the first time (usually by cash).
I am not familiar with the process, and I was looking for advice on this transaction.
Deal is as follows:

Euro Delivery
RV is 60% ($49k)
$5k down,
$1250 per month for 36 with 15k miles per year.

Thanks for the advice!

[igom3]

Originally Posted by PatatasFritas

Fellow M3/4 enthusiasts,

With my upcoming F80 M3, I will be leasing for the first time (usually by cash).
I am not familiar with the process, and I was looking for advice on this transaction.
Deal is as follows:

Euro Delivery
RV is 60% ($49k)
$5k down,
$1250 per month for 36 with 15k miles per year.

Thanks for the advice!

Need some more info! MSRP, negotiated price, residual etc...

[tmaung]

I think it is too much but it all depends on your state sales tax and MSRP. My MSRP is 73k and doing ED. 12k miles/yr for 36 months at ~$1050/month for 35 months. VA 4% sales tax.

[DocWeatherington]

My advise is consider PenFed payment saver loan. Scrub the forum. We need full numbers

[ixse]

lol run away from your dealer. they are trying to rape you. most likely w ridiculus money factor. i could lease m5 for 1100 per month here in cali (9% tax).
ask them to show you everything. mf, rv, final sale price.
rv at 60% for 36mo is really good. mf should be right at 0.0013.(msd can lower it even further).

[PatatasFritas]

MSRP was 83510.
Tax is 11%.

[BMWFanatic2008]

What's your selling price? Ask your dealer if you don't know.
A good place to start would be finding out the ED MSRP for your car (do some research, plenty of threads on this topic). Also, there is $500 innovation credit available for the M3. So if you're paying more than ED MSRP - $500, you can def. do better and should look for another dealer.

September residual for 36m/10k is 59% (not 60% as you've mentioned). Base MF is 0.00129 but it gets marked up by 0.0003 for ED (since you're not paying 1 payment). You can also do 7 MSDs to lower your monthly payment (again, do some research).

[tmaung]

Originally Posted by DocWeatherington

My advise is consider PenFed payment saver loan. Scrub the forum. We need full numbers

The only problem with PenFed saver loan IMO (and I have used PenFed regular loans for purchase of all of my previous cars) is that you have a balloon payment at the end if you don't end up selling the car due to any reasons. With BMW leasing, I can return the car if for any reason it doesn't sell above the RV.

[GrussGott]

Originally Posted by PatatasFritas

Fellow M3/4 enthusiasts,

With my upcoming F80 M3, I will be leasing for the first time (usually by cash).
I am not familiar with the process, and I was looking for advice on this transaction.
Deal is as follows:

Euro Delivery
RV is 60% ($49k)
$5k down,
$1250 per month for 36 with 15k miles per year.

Thanks for the advice!

(1.) you need to do some basic reading up on how leasing works: residual, money factor, etc. google and read up, read about common hidden fees like doc fees etc

(2.) Read through all of the pricing / leasing threads here to get the latest monthly buy rates, residuals, etc

(3.) Use a dealer that's no bs - I recommend greg poland at pacific bmw in LA, but YMMV

[somer]

You could lease a M5 for that much my friend, that is a horrible deal!

[M6-Coupe]

Very simple (but quite accurate) calculation is this:

Your total lease payment = (Sales price - Residual -Down payment) + 36*MF* (Sales price + Residual - Down payment) + fees

Where fees are : Registration, Documents, Acquisition,...

And your monthly payment is 1/36 of total lease payment + tax (on monthly depreciation fee and rent fee)

With numbers you provided as MSRP, Residual, Down payment, 11% tax and considering 0.0013 MF, your monthly
payment must be ~ $1100 if you get no discount!! Looks like your dealer has marked-up the car for about 5K!

[BMWFanatic2008]

Originally Posted by kbc

You could lease a M5 for that much my friend, that is a horrible deal!

For much less 1-2 months ago, when they still had 2014s in stock, you could lease a base one for < $1,000 per month with 0 down. So yeah, not a good deal for an ED M3.

[PatatasFritas]

Finally got all the exact numbers from the dealer.

MSRP is 87,825, with ED it is 83,510.
3800 down, MF is 0.0018 for 15k miles, residual is 56%, Residual at end of 36 months is 49182.
Tax is 11%, which I did not realize gets added monthly.

Total payment is 1257...

[m3less]

The MF should be 0.00129 or 0.0013

[DocWeatherington]

Originally Posted by tmaung

The only problem with PenFed saver loan IMO (and I have used PenFed regular loans for purchase of all of my previous cars) is that you have a balloon payment at the end if you don't end up selling the car due to any reasons. With BMW leasing, I can return the car if for any reason it doesn't sell above the RV.

True, but you can also get rid of the car in 2 months if needed and aren't locked in. An the math is much simpler and apparently the lack of market up is too lol.

[PatatasFritas]

Originally Posted by m3less

The MF should be 0.00129 or 0.0013

Sorry for my ignorance, again first time leasing a car. What makes money factor vary? I thought it was exclusively the term of the lease and the mileage, not sure why it would be higher....

[GrussGott]

Originally Posted by PatatasFritas

Sorry for my ignorance, again first time leasing a car. What makes money factor vary? I thought it was exclusively the term of the lease and the mileage, not sure why it would be higher....

Because your dealer is adding points onto the "buy rate" which is .00129 as others have said. If you're doing ED, the buy rate adds .0003, but they pay your 2nd payment.

I highly suggest you read up on leasing basics which will answer all of your questions ... @M6-Coupe 's post above is a fantastic primer and has your answers:

Very simple (but quite accurate) calculation is this:

Your total lease payment = (Sales price - Residual -Down payment) + 36*MF* (Sales price + Residual - Down payment) + fees

Where fees are : Registration, Documents, Acquisition,...

And your monthly payment is 1/36 of total lease payment + tax (on monthly depreciation fee and rent fee)

With numbers you provided as MSRP, Residual, Down payment, 11% tax and considering 0.0013 MF, your monthly
payment must be ~ $1100 if you get no discount!! Looks like your dealer has marked-up the car for about 5K!

[igom3]

Originally Posted by M6-Coupe

Very simple (but quite accurate) calculation is this:

Your total lease payment = (Sales price - Residual -Down payment) + 36*MF* (Sales price + Residual - Down payment) + fees

Where fees are : Registration, Documents, Acquisition,...

And your monthly payment is 1/36 of total lease payment + tax (on monthly depreciation fee and rent fee)

With numbers you provided as MSRP, Residual, Down payment, 11% tax and considering 0.0013 MF, your monthly
payment must be ~ $1100 if you get no discount!! Looks like your dealer has marked-up the car for about 5K!

,
Your numbers are not correct. MF is .00160 (add .003 for ED) also residual is 56%. So if the car is sold for 80k and no money down payment should be around $1200. Too expensive IMO

[M6-Coupe]

Originally Posted by igom3

,
Your numbers are not correct. MF is .00160 (add .003 for ED) also residual is 56%. So if the car is sold for 80k and no money down payment should be around $1200. Too expensive IMO

Look at the date and hour of my quote