E90Post
 


GTB Performance
 
BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Lease question + Price raise?



Reply
 
Thread Tools Search this Thread
      12-10-2005, 11:13 PM   #1
Turkitron
Case Med
0
Rep
8
Posts

 
Drives: RSX Type S
Join Date: Dec 2005
Location: Cleveland/DC

iTrader: (0)

Lease question + Price raise?

Hey,

I went to a dealer today, and the rep told me that there was a possibility of a price raise as of January 1. Has anyone heard about this?

Also, she quoted me the following rate for monthly payments:

14K trade in

48 months

$315/month.



anyone know if this is a good deal?


the car that was built was 330xi w/ metallic paint, iDrive and heated seats.
Appreciate 0
      12-10-2005, 11:53 PM   #2
Paddy
Lieutenant
Paddy's Avatar
11
Rep
599
Posts

 
Drives: 08' M3, Jerez Black, ZPP
Join Date: Nov 2005
Location: San Diego

iTrader: (1)

What was MSRP, what was agreed sale price, what Money Factor (MF), other fees? Can't comment without knowing that. Putting 14K down and still paying $315 looks a little high.
Appreciate 0
      12-11-2005, 12:19 AM   #3
Paddy
Lieutenant
Paddy's Avatar
11
Rep
599
Posts

 
Drives: 08' M3, Jerez Black, ZPP
Join Date: Nov 2005
Location: San Diego

iTrader: (1)

Lease Trade In

I calculated sample numbers based on your car description, Cold Weather Package + IDrive Navl + metallic and got

MSRP $41825 (not including dest fee)
Agreed Price $39500 (after negotiation, a guesstimate)
Trade In: $14,000 (WOW!!)

3Yr/36K MF: .00225 Residual 64%
The following fees folded into lease....
Dest Charge: $695
Disposition: $350
Acquisition $625
MACO+Training: $480

Tax Rate 7.75%

That works out in my lease calculator at a little over $158/month.

Due at Signing $200 Security + $375 (DMV+Title+Doc) + first month=Approx $688


Sounds like you are getting screwed...

Is 14K reasonable for your trade in? If it were me I'd sell it privately and use the money to pay the monthly lease payments. That way you have 14K+ safety net in the bank, if you can resist temptation to piss it away on other stuff!!

If you go with no trade in you'll pay about $611/month or approx $22K over the life of the lease.
Put the 14K+ into a good mutual fund and it'll probably grow to about 17K over three years. Means you end up paying about 5K for the lease over 36 months..effectively $138/month. Similar to the trade in, but you have the 14K Savings as security/safety net, should anything happen in your life.
Appreciate 0
      12-11-2005, 03:38 AM   #4
Turkitron
Case Med
0
Rep
8
Posts

 
Drives: RSX Type S
Join Date: Dec 2005
Location: Cleveland/DC

iTrader: (0)

Quote:
Originally Posted by Paddy
I calculated sample numbers based on your car description, Cold Weather Package + IDrive Navl + metallic and got

MSRP $41825 (not including dest fee)
Agreed Price $39500 (after negotiation, a guesstimate)
Trade In: $14,000 (WOW!!)

3Yr/36K MF: .00225 Residual 64%
The following fees folded into lease....
Dest Charge: $695
Disposition: $350
Acquisition $625
MACO+Training: $480

Tax Rate 7.75%

That works out in my lease calculator at a little over $158/month.

Due at Signing $200 Security + $375 (DMV+Title+Doc) + first month=Approx $688


Sounds like you are getting screwed...

Is 14K reasonable for your trade in? If it were me I'd sell it privately and use the money to pay the monthly lease payments. That way you have 14K+ safety net in the bank, if you can resist temptation to piss it away on other stuff!!

If you go with no trade in you'll pay about $611/month or approx $22K over the life of the lease.
Put the 14K+ into a good mutual fund and it'll probably grow to about 17K over three years. Means you end up paying about 5K for the lease over 36 months..effectively $138/month. Similar to the trade in, but you have the 14K Savings as security/safety net, should anything happen in your life.


I'm not seeing how you're getting $138/month if its a 48 month lease. I calculated the price on BMWUSA lease calculator, and it turned out to be something like $386/month after the 14k trade in.

Am I missing something?
Appreciate 0
      12-11-2005, 11:48 AM   #5
Paddy
Lieutenant
Paddy's Avatar
11
Rep
599
Posts

 
Drives: 08' M3, Jerez Black, ZPP
Join Date: Nov 2005
Location: San Diego

iTrader: (1)

Sorry, the calculation above was for 36mo. 48 is always higher (but not that much!!) EDIT:: I stand corrected after doing the numbers below, 48 mo is a bad deal on this car.


Simplest calculation:
A=(CapCost-Residual)/Lease term
B=(CapCost+Residual)*MF

Monthly (before Tax)= A+B
Monthly (After Tax)= (A+B)*1.0775 (for 7.75% sales tax)

MSRP 41825, Sales Price 39500
Other Fees (Dest+Maco+Tr+Disposition+Acquisition)=2150.

CapCost=39500+2150 - 14K=27650
Residual=MSRP*.64 (64% for 3 Yr/36K miles)
Residual=41825*.64=26768.

A=(27650-26768)/36=$24.50/mo
B=(27650+26768)*.00225=$122.44/Month

Pretax cost=$146.94
7.75% sales tax =$158.32

(Using 48 Month values and 15K miles/year....)
MF: .00285 Residual=45% (Not very nice numbers)
Residual=41825*.45=18821

A=(27650-18821)/36=$245
B=(27650+18821)*.00285=$132.44

Payment is $377.44 before tax
and $406.69 after tax (7.75%)

Bottom line, that 4th year is costing you (48*406) - (36*158)=$13,800. WOW!!! You'd have to earn ~20K Salary before tax to afford that.

That $13.8K would pay for another (13800/611) 22 Months in a new lease, after your first 3 years are up. (assuming approx $611/month on new lease, as I calculated on previous post assuming no trade in).
That's 10 months payments free PLUS a new car after 3 years instead of 4. Remember you'll have less wear and tear to be charged for, over 3yrs as opposed to 4, plus you get your choice of new car one year early. The new 335i will be out and production kinks ironed out at that time.


My advice... go 3 years,with lowest mileage that suits your driving needs.

Last edited by Paddy; 12-11-2005 at 07:46 PM.
Appreciate 0
      12-13-2005, 02:20 AM   #6
MIKEYMIKE
Lieutenant Colonel
MIKEYMIKE's Avatar
United_States
26
Rep
1,516
Posts

 
Drives: 330i 6mt
Join Date: Oct 2005
Location: SoCal

iTrader: (3)

Send a message via AIM to MIKEYMIKE
Prices going up next month? Can you say a dealer scare tactic to get you to buy the car ASAP.
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 11:29 PM.




e90post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST