[Eric SS]

Originally Posted by mcsoul

Accords and Jetta's are the only things I'd lease, and it has to be some sort of end of year crazy inventory reduction sale.

The last generation G37 coupe/Q60 leased out unreal. We had a 2014 Q60 S ($48k MSRP) for $399 INCLUSIVE of tax with zero cap cost down and I even rolled the last 4 months of our 2011 G37 coupe payment into it. IIRC it was a 71% residual at 39 months/ 10k a year which was more than enough miles for us. Plus I think our money factor was .00050. I couldn't pass it up.

[IrishCoffee]

I leased my 14 1LE. They lease the same as a standard SS. They leased well in that gen, but the new ones don't seem to lease quite as well.

I would suggest asking the dealer to look at Ally lease numbers, not just GM financial. Allys rates are generally better.

[IrishCoffee]

Originally Posted by Eric SS

The last generation G37 coupe/Q60 leased out unreal. We had a 2014 Q60 S ($48k MSRP) for $399 INCLUSIVE of tax with zero cap cost down and I even rolled the last 4 months of our 2011 G37 coupe payment into it. IIRC it was a 71% residual at 39 months/ 10k a year which was more than enough miles for us. Plus I think our money factor was .00050. I couldn't pass it up.

Yep. I leased a 2008 G37 and was shocked at how high the residual value was. Being able to lease a car for less than 1% of the MSRP per month with 0 down after tax is a crazy deal. Anytime you can find a deal like that it is a steal. My wife's 328 is the same. Residuals in the mid 60s plus incentives.

[Eric SS]

Originally Posted by IrishCoffee

Yep. I leased a 2008 G37 and was shocked at how high the residual value was. Being able to lease a car for less than 1% of the MSRP per month with 0 down after tax is a crazy deal. Anytime you can find a deal like that it is a steal. My wife's 328 is the same. Residuals in the mid 60s plus incentives.

Yup. I've leased a couple of Bimmers. 2011 335is and 2013 335i M Sport. Both were great lease deals although BMW's money factor is kinda high usually.

[Tha_Infamous_E]

I got myself a 1SS with MSRP of $41K for a 48-month lease with 12K miles a year all for $2.8K down and $375 monthly.

Interested to see if anyone's been able to beat this deal?

[backhill]

Originally Posted by Tha_Infamous_E

I got myself a 1SS with MSRP of $41K for a 48-month lease with 12K miles a year all for $2.8K down and $375 monthly.

Interested to see if anyone's been able to beat this deal?

So with no money down it's ~$435/mo (2.8k/48mo= ~$58.33+int+375). Hard to say without knowing the residual, actual negotiated price of the car, and money factor though. Anyone can beat the deal if they get a more stripped down 1SS and put the same money down with the same lease terms.

It's an okay deal, but I can only compare relative to my lease. If you compare to mine and load up to a $45.7k MSRP 1SS 1LE, the additional 4,700 in MSRP lands you at a payment of ~$535/mo, which is right around what I was quoted by Becky for 0 down, 36/12k. You're right at market for how you loaded up the 1SS along with your DP of 2.8k. I would even say slightly above because you have to hold on to it for additional 12 months. If you didn't get an additional GM employee discount, then I would say that would be a hard deal to beat, but residual at 48k should have driven the monthly payment lower than a comparable 36 month lease anyways.

*********
Math:

$2,800 down plus $4,700 delta from 41k to 45.7k = $7,500
$7,500 / 48 mo = 156.25/mo before interest or tax, so round to $160 (still conservative)
$160+$375= ~$535/mo

[backhill]

Originally Posted by Eric SS

Yup. I've leased a couple of Bimmers. 2011 335is and 2013 335i M Sport. Both were great lease deals although BMW's money factor is kinda high usually.

On the contrary, I've been quoted as low as .00082 MF (1.96%) in Q3/Q4 2015 when the new F80/82 M3/M4 was coming out. Today their MF hovers around 0.0012-0.0013 (2.88%-3.12%). As a comparison, my MF was .00119 (2.856%) on the 1LE. So relatively speaking they're within market today.

You can also put upwards of $7k down in what is called "Multiple Security Deposits" that are offered by BMW. For every 1k you deposit, the MF is reduced by .00007 (ie: if you deposit a full 7k, your MF will reduce by .00007 x 7, or .00049). BMW holds this money and uses it to invest on their end instead of making money by charging you interest. You get this all back after you turn in your lease, less any overage charges on miles or damage.

On higher end $70-80k+ cars like the M's or 6 and 7 series, this can amount to upwards of $60-70 reduction in monthly payment just on interest on the monthly depreciation. Thinking of it differently, thats a 10-12% ($70x12mo) "return" or cost avoidance on your $7k over 3 years that BMW holds for you until end of lease. It's not market shattering, but it's still above what is considered average of 7-8% annual growth.

[IrishCoffee]

Originally Posted by backhill

On the contrary, I've been quoted as low as .00082 MF (1.96%) in Q3/Q4 2015 when the new F80/82 M3/M4 was coming out. Today their MF hovers around 0.0012-0.0013 (2.88%-3.12%). As a comparison, my MF was .00119 (2.856%) on the 1LE. So relatively speaking they're within market today.

You can also put upwards of $7k down in what is called "Multiple Security Deposits" that are offered by BMW. For every 1k you deposit, the MF is reduced by .00007 (ie: if you deposit a full 7k, your MF will reduce by .00007 x 7, or .00049). BMW holds this money and uses it to invest on their end instead of making money by charging you interest. You get this all back after you turn in your lease, less any overage charges on miles or damage.

On higher end $70-80k+ cars like the M's or 6 and 7 series, this can amount to upwards of $60-70 reduction in monthly payment just on interest on the monthly depreciation. Thinking of it differently, thats a 10-12% ($70x12mo) "return" or cost avoidance on your $7k over 3 years that BMW holds for you until end of lease. It's not market shattering, but it's still above what is considered average of 7-8% annual growth.

I've used MSDs with BMW before. They weren't $1000 each though. They were the payment rounded up to the nearest 50. So if your payment would be 562 then each MSD would be 600 for example. At least thats how it was when I used them.

You are correct that return on that investment in terms of savings is quite good... as long as you're willing to park your cash with them. There isn't any risk associated with it.

[backhill]

Originally Posted by silkrckt

I agree it's the same. I purchased a 2014 2SS @72 months and put 6500 down. 36 months in, I'm looking to replace with a 2017 1LE. The difference from payoff and trade value is almost $400 more than my initial down payment. Since I'm getting my down payment back, its just like leasing the car. I pay $461 a month for the 2014.

I get the positive of being able to drive as much as I want and modify as I wish. I will do the same with the 1LE.

The one thing that you are correct on is the mile limitation on a lease. You are charged a fee of $.025 for every mile over. The caveat is when you don't worry about miles on a car that is owned, more miles at a given point will make the vehicle less valuable. You will still pay for your "unlimited miles" indirectly, unless a private party buyer wants to hand you a wad of cash for a higher than normal mileage car It's all situational when owning vs leasing.

You can always modify a lease. All of the same issues apply of potential voided warranty and how much you get back in $$ on your mods when its time to turn in/sell. Sentiment on most if not all car forums is that parting out is always the best route financially.

[backhill]

Originally Posted by IrishCoffee

I've used MSDs with BMW before. They weren't $1000 each though. They were the payment rounded up to the nearest 50. So if your payment would be 562 then each MSD would be 600 for example. At least thats how it was when I used them.

You are correct that return on that investment in terms of savings is quite good... as long as you're willing to park your cash with them. There isn't any risk associated with it.

Thanks for the correction . I forgot they rounded. I looked hard at them at the time I was shopping, but I had just dropped cash on an engagement ring, was house hunting AND planning a wedding. Parking any amount of money would have been difficult at that time in my life.

[Eric SS]

Originally Posted by backhill

On the contrary, I've been quoted as low as .00082 MF (1.96%) in Q3/Q4 2015 when the new F80/82 M3/M4 was coming out. Today their MF hovers around 0.0012-0.0013 (2.88%-3.12%). As a comparison, my MF was .00119 (2.856%) on the 1LE. So relatively speaking they're within market today.

You can also put upwards of $7k down in what is called "Multiple Security Deposits" that are offered by BMW. For every 1k you deposit, the MF is reduced by .00007 (ie: if you deposit a full 7k, your MF will reduce by .00007 x 7, or .00049). BMW holds this money and uses it to invest on their end instead of making money by charging you interest. You get this all back after you turn in your lease, less any overage charges on miles or damage.

On higher end $70-80k+ cars like the M's or 6 and 7 series, this can amount to upwards of $60-70 reduction in monthly payment just on interest on the monthly depreciation. Thinking of it differently, thats a 10-12% ($70x12mo) "return" or cost avoidance on your $7k over 3 years that BMW holds for you until end of lease. It's not market shattering, but it's still above what is considered average of 7-8% annual growth.

Those are great MF for BMW. I think my two were .00190 and .00210 and those were both the base rate at the time.

[backhill]

Originally Posted by Eric SS

Those are great MF for BMW. I think my two were .00190 and .00210 and those were both the base rate at the time.

Oh yea woof . Most dealers have discretion in terms of MF of ~.0005. Usually no movement in residuals as those are set through the leasing company.

But if this discussion continues and people post their quotes or deals each month, a benchmark and trend can be set and watched so others know when the dealer is hosing them.

[Chartley2013]

Residual Value: $45,700 x 54%=$29,538
Gross Capitalized Cost: $40,192 + $2500=$42,692
Capitalized Cost Reduction: $3000
Adjusted Capital Cost: $42,692 - $3,000=$39,692
Depreciation Amount: $39,538 - $29,538=$10,154
Base Payment: $10,154/48=$211.54
Rent Charge: ($39,692 + $29,538) x 0.00152=$105.23
Pretax Lease Payment: $105.23 + $211.54 = $316.77
Lease Payment with Tax: $316.77 x 1.07=$338.94

So these are the numbers I ran with lease number from GM. I'm still confused on where the dealership got their 720$ monthly payment from for a lease.

[Cornholio]

^^ tell them you want their numbers broken down like you have them and you will find it.