[OGM1]

I have a couple of questions:

Going over some lease numbers from last month. It took me second to figure out that the total cap reduction number on line 6 was:

$2500 down + $500 loyalty = $3000 (working cash)

$3000 -$1638.06 (First month) - $403.50 (annual fees) -$150 (Initial fees) = $808.44

1) What in the f are the Total annual fees from line 23?
2) I'm assuming the $150 on line 24 is their doc filing fee?
3) How did they come up with $96,591.64 for total financed? (Agreed price was MSRP)

[MugenNeuspeed]

This is about right, residuals and money factor are shit.
You have to buy these cars now.

[Berzerker]

Originally Posted by OGM1

I have a couple of questions:

Going over some lease numbers from last month. It took me second to figure out that the total cap reduction number on line 6 was:

$2500 down + $500 loyalty = $3000 (working cash)

$3000 -$1638.06 (First month) - $403.50 (annual fees) -$150 (Initial fees) = $808.44

1) What in the f are the Total annual fees from line 23?
2) I'm assuming the $150 on line 24 is their doc filing fee?
3) How did they come up with $96,591.64 for total financed? (Agreed price was MSRP)

Total Annual Fees are anything you'd need to pay annually for the car not to do with the lease or insurance such registration, filing fees, anything there.

$150 is most likely the doc filing/processing fee

Not sure how they got to $96.591.64 but you can ask for a breakdown and the contract.

Also you shouldn't be putting any money down on a lease. Just pay whatever is due at signing (first month's payment, fees, etc.)

Originally Posted by MugenNeuspeed

This is about right, residuals and money factor are shit.
You have to buy these cars now.

0.00195 is pretty low for current rates. I don't know if you noticed by basis rate is up to nearly 6% now. Finance rates are also bad.

[MugenNeuspeed]

Yes just finance or pay cash.

[Needsdecaf]

Originally Posted by Berzerker

0.00195 is pretty low for current rates. I don't know if you noticed by basis rate is up to nearly 6% now. Finance rates are also bad.

Seriously, just over 4%. Not bad for a lease. It's not impossible to get a loan at that rate, but not common.

55% residual over 36 months isn't horrendous, either.

[Gfit]

Leasing still works for me. If the value holds I take the equity out which I did on my last 2. If the value tanks due to changing market or a car fax report I give it back. You get all the upside and none of the downside.

[OGM1]

Originally Posted by Berzerker

Also you shouldn't be putting any money down on a lease. Just pay whatever is due at signing (first month's payment, fees, etc.)



0.00195 is pretty low for current rates. I don't know if you noticed by basis rate is up to nearly 6% now. Finance rates are also bad.

$2500 down is the standard for the lease.

Originally Posted by Needsdecaf

Seriously, just over 4%. Not bad for a lease. It's not impossible to get a loan at that rate, but not common.

55% residual over 36 months isn't horrendous, either.

I agree. Everyone is complaining about the current rates but BMW is lower than a lot of other manufacturers right now. Historically we hit an all time low back in 2016 at 1.5%. Almost free money at that point. On a 40 year chart, we are still fairly low.

[Gfit]

Originally Posted by OGM1

I agree. Everyone is complaining about the current rates but BMW is lower than a lot of other manufacturers right now. Historically we hit an all time low back in 2016 at 1.5%. Almost free money at that point. On a 40 year chart, we are still fairly low.

100% agree. Overall it’s still a good deal just not one of the best it’s been. Figure 2-3 years ago I was getting 0% on my cash and lease rates were low. Now I’m getting over 5. Let’s say 3.5 after takes so the differential is exactly the same. My real cost of the lease hasn’t changed and I can still take the upside but leave the bank with the downside. Anyone that says “leasing sucks now” is just not getting the entire picture.

[BimmerFix]

Originally Posted by OGM1

$2500 down is the standard for the lease.



I agree. Everyone is complaining about the current rates but BMW is lower than a lot of other manufacturers right now. Historically we hit an all time low back in 2016 at 1.5%. Almost free money at that point. On a 40 year chart, we are still fairly low.

You can do $0 sign off trust me. Everything get's rolled into your monthly payments . Even tax, reg, fees

[Berzerker]

Originally Posted by MugenNeuspeed

Yes just finance or pay cash.

That's....no that's not what I said at all lol. .00195 MF is *low* compared to most finance rates. If you have the cash to pay, go for it, but you're not going to do better from BMWFS or most anyone else, even on a finance.

Originally Posted by OGM1

$2500 down is the standard for the lease.



I agree. Everyone is complaining about the current rates but BMW is lower than a lot of other manufacturers right now. Historically we hit an all time low back in 2016 at 1.5%. Almost free money at that point. On a 40 year chart, we are still fairly low.

$2500 is how much they default to but you can choose $0 down, which you should.

[OGM1]

Originally Posted by Berzerker

That's....no that's not what I said at all lol. .00195 MF is *low* compared to most finance rates. If you have the cash to pay, go for it, but you're not going to do better from BMWFS or most anyone else, even on a finance.



$2500 is how much they default to but you can choose $0 down, which you should.

Why wouldn't you pay at least the first months payment?

[Berzerker]

Originally Posted by OGM1

Why wouldn't you pay at least the first months payment?

First month's payment is usually under "due at signing," a down payment is listed as a separate line item and is usually explicitly different from the first month's payment, it's just an up front payment to reduce the total financed/leased value of the car.

That specific amount is what I'd do $0 on.

In general, whatever money that isn't owed to them you shouldn't be putting towards the value of the car in a lease. Trade in value, down payment, etc. If you *owe* the first month's payment up front, that's a little different.

[OGM1]

Originally Posted by Berzerker

First month's payment is usually under "due at signing," a down payment is listed as a separate line item and is usually explicitly different from the first month's payment, it's just an up front payment to reduce the total financed/leased value of the car.

That specific amount is what I'd do $0 on.

In general, whatever money that isn't owed to them you shouldn't be putting towards the value of the car in a lease. Trade in value, down payment, etc. If you *owe* the first month's payment up front, that's a little different.

I understand all that. The $2500 I'm calling a down payment is used towards the first months payment plus some other fees (See math on OP). I suppose I could ask for the $808 back.

[Berzerker]

Originally Posted by OGM1

I understand all that. The $2500 I'm calling a down payment is used towards the first months payment plus some other fees (See math on OP). I suppose I could ask for the $808 back.

If that's money they're giving you as incentive it's probably being deducted from the leased value, so your payments would be ((leased value - $3000 (+ taxes)) / 36). Your first month's payment will be based on that calculated value.

$800 isn't as big of a deal that I might just not worry about it. You mentioned "$2500 down" so I thought you might have been using that as a downpayment. They will cut you a check for the $808 if you do ask them, though.