|
|
|
|
 |
 
|
 |
BMW Garage | BMW Meets | Register | Today's Posts | Search |
 |
|
BMW 3-Series (E90 E92) Forum
>
Opinion on quotes for 2011 335i coupe and sedan
|
 |
| 08-26-2010, 10:59 AM | #1 |
|
New Member
0
Rep 26
Posts
Drives: Black Sapphire 335is coupe
Join Date: Jan 2007
Location: U.S.
iTrader: (0)
Garage List 2011 BMW 335is [0.00]
2007 BMW 335i coupe [0.00] 2006 Mini Cooper S [0.00] 2003 Mini Cooper S [0.00] 1996 Volkswagen Jet ... [0.00] |
Opinion on quotes for 2011 335i coupe and sedan
Hey guys, I used to have a 2007 335i coupe fully loaded that I was leasing for 590 a month w/ about 3700 down...worst decision of my life was giving her back at lease end in March b/c of personal reasons......but now I'm looking to get a 2011...not sure of how prices are now so I went for a quote on a coupe and sedan...let me know what you guys think...thanks
sedan and coupe built the same way BLK/BLK M-sport auto/paddle navi Premium Convenience Cold Ipod Harmon Sat MSRP for coupe is 57,325 MSRP for sedan is 55,825 first quote was 500 over invoice for both 600 a month w/3700 down for the sedan 615 a month w 3700 down for the coupe |
| 08-26-2010, 11:03 AM | #2 | |
|
Lieutenant
 
27
Rep 569
Posts |
Quote:
__________________
N55
|
|
|
Appreciate
0
|
| 08-26-2010, 12:49 PM | #3 |
|
Private
2
Rep 59
Posts |
There are some missing bits of information one would need in order to determine exactly how "good" a deal you've gotten:
1) When you say $3,700 down... do you mean you will be making a cap cost reduction of $3,700 PLUS paying additional inceptions fees? Want to be clear entire $3,700 down payment is being used solely to reduce monthly payment of car. 2) What is the actual selling price of the car? You mention $500 over invoice, but whose invoice? BMW generally includes MACO/Training (about $500 total) as apart of their invoice prices when calc'ing a lease (unless you pay these upfront as apart of inceptions). I've been able to moc up your vehicle to the exact MSRP using Edmunds.com, but their invoice excludes MACO/Training which will skew the numbers. 3) What state will govern how taxes are factored into your lease? In NJ, taxes are added into your monthly payment and do not need to be paid upfront, other states differ. Given the differences in the manners in which states handle taxes on leases, for a true apples-to-apples response on this type of forum, you're better off comparing numbers on a BEFORE TAX basis. A slight miscalculation there could throw your comparisons way off... 4) What is the lease term? 24, 36, 48 months...? 10K, 12K, 15K miles...? Really, there is no way to accurately answer your question without knowing the basic information noted above. That all said, I've decided to turn my response into a sort of tutorial on A) how to calculate your own lease payment, and B) Why putting down Multiple Security Deposits (MSDs) is a much better option than a pure down payment (i.e. cap cost reduction). That said, I needed to assume a few things with my quote in order to make this analysis meaningful: 1) $3,700 is a full cap cost reduction 2) Invoice does not include MACO/Training (and thus will be paid as portion of inceptions) 3) I will give you both Before Tax figures only. 4) Assume 36mo/12K mi... 5) Figures below reference the coupe... Leasing breaks down into 2 primary parts... a DEPRECIATION component and an INTEREST component... Here is how you calculate those for your own deal: Lease Quote Breakdown: MSRP - $57325 Invoice - $52725 Sell - $53225 August Residual/MF - 63%/.00195 (Tier 1 credit) Cap Cost Reduction - $3700 DEPRECIATION COMPONENT: Adj. Cap Cost = Sell Price - Cap Cost Reduction = $49525 Residual Value = MSRP * Residual % = $36115 DEPRECIATION = (Adj. Cap Cost - Residual) / # of months of lease term DEPRECIATION = $49525 - 36115 = $13410 / 36 = $372.51 INTEREST COMPONENT Lease Balance Multiplier = Adj Cap Cost + Residual Value Lease Balance Multiplier = $49525 + 36115 = $85640 Base Money Factor = .00195 MSD Money Factor Reduction = 0 Final Money Factor = .00195 INTEREST COMPONENT = Lease Multiplier * Final Money Factor INTEREST COMPONENT = $85640 * .00195 = $167.00 BEFORE TAX MONTHLY = DEPRECIATION + INTEREST BEFORE TAX MONTHLY = $372.51 + 167.00 = $539.51 TOTAL BEFORE TAX LEASE COST = TOTAL MONTHLY PAYMENTS + DOWN PAYMENT TOTAL BEFORE TAX LEASE COST = ($539.51 * 36) + $3700 = $23122.36 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Here's why MSDs make much more financial sense versus a down payment... Same calculations as above, only, I'm going to replace your down payment, with an MSD amount equal to your down payment (or very close), where your MSD is equal to one payment (rounded up to nearest $50 increment... ie, $551 becomes $600), and the max MSDs you can put down is 7. Final assumption is that 1 MSD reduces BASE MONEY FACTOR by .00007. Now that we've got the rules straight... here we go again... Lease Quote Breakdown: MSRP - $57325 Invoice - $52725 Sell - $53225 August Residual/MF - 63%/.00195 (Tier 1 credit) Cap Cost Reduction - $0 DEPRECIATION COMPONENT: Adj. Cap Cost = Sell Price - Cap Cost Reduction = $53225 Residual Value = MSRP * Residual % = $36115 DEPRECIATION = (Adj. Cap Cost - Residual) / # of months of lease term DEPRECIATION = $53225 - 36115 = $17110 / 36 = $475.28 INTEREST COMPONENT Lease Balance Multiplier = Adj Cap Cost + Residual Value Lease Balance Multiplier = $53225 + 36115 = $89340 Base Money Factor = .00195 MSD Money Factor Reductions = 6 (assumes 6 MDS equals $3900) Final Money Factor = .00195 - (.00007 * 6) = .00153 INTEREST COMPONENT = Lease Multiplier * Final Money Factor INTEREST COMPONENT = $89340 * .00153 = $136.69 BEFORE TAX MONTHLY = DEPRECIATION + INTEREST BEFORE TAX MONTHLY = $475.28 + 136.69 = $611.97 TOTAL BEFORE TAX LEASE COST = TOTAL MONTHLY PAYMENTS + DOWN PAYMENT TOTAL BEFORE TAX LEASE COST = ($611.97 * 36) + $0 = $22030.92 Thus you actually save $1091.44 over lease term by putting down MSDs over doing a straight down payment of a similar amount, or roughly $30 per month less. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The astute reader would note, "but wait, you put down $3700 originally and then $3900 as the cap cost reduction..." That's because cap cost reductions are tied specifically to your final monthly payment amount. In this case that's $611.97 rounded to $650 * 6 = $3900. Thus, if we went back through the original down payment analysis, total lease cost would yield $23108.16. In that case, difference would still be $23108.16 - 22030.92 = $1077.24 which is essentially the same figure. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Not to mention the softer differences between MSDs and down payments which include, MSD being returned to you at lease end. Also, assume you were to "total" the car or have it stolen... With a down payment, that money is simply lost, with the MSD arrangement, that money is returned to lessee. This email response didn't exactly answer the OP's original question, but hopefully instead of "giving a man a fish...", I've taught him how to fish instead... Class dismissed... Last edited by Jalal28; 08-26-2010 at 12:55 PM.. |
|
Appreciate
0
|
| 08-26-2010, 01:41 PM | #4 |
|
Major
 
756
Rep 1,068
Posts |
lol Jalal you went so in depth..i like it haha.
yeah MSD's make sense if you're allowed to do it; I'm doing MSD's that total $4,400 but take my payment from $580 to $539 |
|
Appreciate
0
|
| 08-26-2010, 04:03 PM | #6 |
|
Major General
 
1045
Rep 5,660
Posts |
What is an "MSD?"
__________________
Cheers,
Tony  ------------------------------------------------------------------------------------------ '07, e92 335i, Sparkling Graphite, Coral Leather, Aluminum, 6-speed |
|
Appreciate
0
|
| 08-26-2010, 04:12 PM | #7 | ||
|
Major
756
Rep 1,068
Posts |
Quote:
Quote:
|
||
|
Appreciate
0
|
| 08-26-2010, 04:21 PM | #8 |
|
Private
6
Rep 97
Posts |
I just wish Texas wouldn't charge sales tax on the entire purchase price of the car for a lease. It's totally ridiculous and makes leasing a rotten option for us.
I have also put together a lease calculator a while back, feel free to use it: http://takacs.net/browsable/LeaseCalculator.xls |
|
Appreciate
0
|
| 09-10-2010, 05:55 PM | #9 |
|
New Member
0
Rep 26
Posts
Drives: Black Sapphire 335is coupe
Join Date: Jan 2007
Location: U.S.
iTrader: (0)
Garage List 2011 BMW 335is [0.00]
2007 BMW 335i coupe [0.00] 2006 Mini Cooper S [0.00] 2003 Mini Cooper S [0.00] 1996 Volkswagen Jet ... [0.00] |
Final quotes..
On a fully loaded coupe or sedan(options are listed on the first post)....the monthly payment will be 589 for the coupe and 585 for the sedan with a down payment of 3650...which is taxes (NJ) first payment and the fees.....does this monthly payment sound good?.... 3 yr lease 10,000 mi
|
|
Appreciate
0
|
| 09-10-2010, 06:30 PM | #10 | |
|
Lieutenant Colonel
 
332
Rep 1,771
Posts |
Quote:
 
__________________
 Driving: 2020 540i M-Sport Carbon Black, Ivory Nappa - Dec 2019 BTO - Feb 2020 Delivery Returned: 2016 535i M-Sport Carbon Black, Ivory Nappa :: 2014 F30 335i M-Sport Min Grey, Coral Red :: 2011 E90 328i Deep Sea Blue, Oyster Dakota |
|
|
Appreciate
0
|
 |
| Bookmarks |
|
|
