how much is your z4 lease?

[rob612]

Hello fellow beemer members

My sister is looking to lease a z4 and was wondering how much everyone is paying monthly and their down payment. Any additional info would help greatly. Thank you!


I apologize in advance if there was a similar thread. I wanted to know the most current prices that people are paying. Thanks again!


Rob

[mstevens]

The correct "down payment" on a lease is $0.

Leasing is renting, pure and simple. You're paying the lessor an amount computed from what they expect for depreciation (the capitalized cost minus a residual value) plus a profit (the "money factor," which is similar to an interest rate in a loan).

Sure, you can reduce the lease payment by making a "capital reduction payment" (or down payment) to reduce the capitalized cost, or in other words to reduce the price that the leasing company has to pay for the car. That means you're buying part of the car that you then lease. Of course, you still don't own any of the car at the end of the lease, so that money was essentially thrown away. You also get none of it back if the car is totaled, even if your insurance covers the full value of the car. With a loan, a down payment (or trade-in, which is the same thing) makes sense because it reduces the amount that's being financed.

They'll usually work in an "acquisition fee" of some sort to get you to part with more cash. This is, more-or-less, a hidden down payment.

Buying based on payments, whether a lease or a loan, is a mug's game. The only sensible way is to negotiate the purchase price of the car (e.g., invoice plus some reasonable amount) the go with the best finance terms you can find. For a loan, that'll be interest rate. For a lease that will be a product of residual value and money factor. Get a lease calculator or use an online one and plug in numbers to find out what a payment will be.

There are zillions of leasing options. To use BMW FS as an example, they have different money factors and residuals depending upon model, mileage allowance, and duration of lease. On a 30i for 10000 miles over 3 years, the money factor is currently .00100 and the residual 61% if you're in their top credit tier. They want a first month's lease payment and an acquisition fee of $725 at signing.

On a 35is with nearly every available option (MSRP over $73k) my lease payment is about $920 for a 3-year 10k/year lease. I did not pay MSRP for the car. At signing I paid the first month's payment and an acquisition fee of $725. The MF and residual on this model were different from what I listed above.

[Mr. ///M3 RD]

mstevens

Your post is very informative. However, when you lease a company car it takes on a complete different meaning since 80% of the lease payment can be written off. Therefore it becomes a tax saving for the company. I once leased a company car, I know in the end I paid more for the car (after 3 year lease purchase) still it was money in my pocket instead of giving it to the tax man

Just my 2 cents.

PS. I think Rob would be better off if he gets a good interest rate and purchase the car.

[GOLFFRR]

op if you are interested in a quote feel free to contact me. I will be more then happy to take care of you.

[rob612]

Thank you guys for your support! I appreciate the time and thought and will take it into consideration. Take care and drive safely!

[taYab]

I had a deposit which I can get it back at the end of the term to lower the rate since I wasn't top tier to me.
If they require down pay alot, talk to them about putting deposit instead.