Ridiculous lease deals on Z4's right now

[Curt2000]

So the deal I was quoted for seems to be unique in the fact that the car was a dealer demo with 200+ miles on it so they were knocking down the price about 2K under invoice for me. If you want a similar deal you basically ask the dealer to lease the car for you at invoice...they will complain that they are not making any money on the car but that is not true because the dealer hold back is about 3-4% of the invoice price so even if they sell the car to you at invoice they are still making close to 1500 on the vehicle, not to mention meeting their sales goals for the month. What you need to do is figure out the MSRP on the car you are looking for, then ask the dealer what their invoice price is. If they are slimy and wont tell you then go to the KBB website and find out the invoice price by building the car...typically it will be around 3500-4500 less than sticker. That is the price you want them to use for your net capital cost. The vehicle residual will be 62% for 12K miles a year and 63% for 10K. That is an unheard of residual value and drives the depreciation fee down. But the real money saver is the money factor. At .0005 you are literally paying BMW ~$1.50 a month for the finance fee!!! So for the Z4 that I spec'd out in the OP would be closer to $599/Month, 12K Miles a year, and 3500 out of pocket. Of that 3500, $725 is the acquisition fee, $600 is the Security Deposit, $275 is the registration, and $227 is the tax (6.5% here) on the initial payment...so only ~1700 of the down payment is actually going to the balance of the lease and lowering my payment.

[Curt2000]

http://www.leaseguide.com/lease08.htm Here is a great guide to help you calculate your lease payment...you can also use these formulas to figure out how much the dealer is trying to make off of you

[bullmrkt]

ya curt front page!

Are you actually going to get one too or just cole?

[Curt2000]

Yeah Cole is a lucky SOB, I wonder if I can somehow grandfather this deal on a custom build...cause the lease is up on my 335 in Feb. Maybe I will just lease it now and make double payments!

[BlueZ4AZ]

Originally Posted by E394KEN

I factored in that anyone off the street can get almost 15-20% off of msrp for an S, so yes the price point is pretty close.

The exterior may be similar, but the 09 is a new beast. It is pound for pound one of the best handling cars in the world. Take into account the new PDK transmission, and a true mid-engine car and you have something truely special. I've driven both cars, and while the Z is a great incarnation, a head turner, and a nice BMW piece. It is not the S is equal.

My nickel. Now if it was an 08 then I may tip the scale and favor the Z. If you havent driven both do so and
you may think differently.

I agre that the 2009 is a step up from the 2008 Boxster. However, everyone is going to have their own priorities in what they are looking for in a Roadster. When evaluating, I just could not get past the 10 year old body style and the plain jane interior of the Boxster.

[BlueZ4AZ]

Originally Posted by Curt2000

So the deal I was quoted for seems to be unique in the fact that the car was a dealer demo with 200+ miles on it so they were knocking down the price about 2K under invoice for me. If you want a similar deal you basically ask the dealer to lease the car for you at invoice...they will complain that they are not making any money on the car but that is not true because the dealer hold back is about 3-4% of the invoice price so even if they sell the car to you at invoice they are still making close to 1500 on the vehicle, not to mention meeting their sales goals for the month. What you need to do is figure out the MSRP on the car you are looking for, then ask the dealer what their invoice price is. If they are slimy and wont tell you then go to the KBB website and find out the invoice price by building the car...typically it will be around 3500-4500 less than sticker. That is the price you want them to use for your net capital cost. The vehicle residual will be 62% for 12K miles a year and 63% for 10K. That is an unheard of residual value and drives the depreciation fee down. But the real money saver is the money factor. At .0005 you are literally paying BMW ~$1.50 a month for the finance fee!!! So for the Z4 that I spec'd out in the OP would be closer to $599/Month, 12K Miles a year, and 3500 out of pocket. Of that 3500, $725 is the acquisition fee, $600 is the Security Deposit, $275 is the registration, and $227 is the tax (6.5% here) on the initial payment...so only ~1700 of the down payment is actually going to the balance of the lease and lowering my payment.

What was the MSRP on the demo car you were looking at?

[MI6]

I knew it was too good too be true...........demo's are ALWAYS good deals but he failed to mention this in the 1st post.

Now- if you take his suggestions about how to do this for a reg car then you are back to square one negotiating as anyone would for ANY car.

Soooo................ this thread is MISLEADING!!!!

My point is this- if it SOUNDS TOO GOOD TO BE TRUE THEN ____________.

I think we all know how to fill in the blanks.........

[Curt2000]

Originally Posted by BlueZ4AZ

What was the MSRP on the demo car you were looking at?

$60,025

Originally Posted by MI6

I knew it was too good too be true...........demo's are ALWAYS good deals but he failed to mention this in the 1st post.

Now- if you take his suggestions about how to do this for a reg car then you are back to square one negotiating as anyone would for ANY car.

Soooo................ this thread is MISLEADING!!!!

My point is this- if it SOUNDS TOO GOOD TO BE TRUE THEN ____________.

I think we all know how to fill in the blanks.........

Take away extended leather and choose 10K miles instead of 12 and you're down to the $550 range. Not to mention that pretty much every dealer got a blue on white 3.5 with DCT as a demo so you could probably find a similar deal to mine if you look hard enough.

[BlueZ4AZ]

[quote=Curt2000;5720635]$60,025




I purchased one of the Blue Z4 35i here in AZ with the Extended Ivory Leather, Premium Package, 18 " Wheels, back in July. I traded in my Corvette, so I had about 30% down payment, so did not lease. Went with BMW Financing. Mine had only 8 miles on it. Probably a couple test drives, but not a demo. They were using a couple black ones as the demos.

One other question: Were you trading in a vehicle in that transaction where the dealer quoted you $x under invoice?

That is a good lease plan BMW has now, but don't forget it is only 30 months, not 36. Using the same straight line method, the residual on a 36 month lease would be 55-56%.

[Curt2000]

No trade in, those are the raw numbers. I told the dealer that I was posting about it trying to get him some business, that's when he told me about the money they were loosing on it so I figured out how much it would be if the net cap = invoice.

[MSPORTWORLD]

Congrats on the front page!

Isn't a money factor of 0.0005 the same as 1.2% APR?

0.0005 x 2400 = 1.2%

How does this equal $1.24 in interest a month?

[Curt2000]

Alright I'll just run the numbers right here...but you are right Mike, I didn’t account for the finance fee formula equaling the monthly rate, I was dividing it by the term which is where that $1.50 factor came from.

MSRP: $60,025
Invoice: 55,750
Net Cap: 55,750
Residual: 62% for 12K miles/year
Residual = MSRP x 62% = 60,025 x .62 = 37,215.5
Money factor = .0005

Depreciation Fee = (Net Cap - Residual)/Term = (55,750 - 37,215.5)/30 = 617.82

Finance Fee = (Net Cap Cost + Residual) x Money factor = (55,750+37215.5)x.0005 = 46.49

Monthly payment before taxes = Finance Fee + Depreciation Fee = 617.82 + 46.49 = 664.31

Total lease value before taxes = Monthly payment before taxes x term = 664.31 x 30 = 19,929.20

Tax on lease (6.5% here)= Tax x total lease value before taxes = 19929.2 x .065 = 1295.40

Total lease value = Tax on lease + Total lease value before tax = 19929.2 + 1295.4 = 21,224.60

Money out of pocket at signing = 3500
Security deposit = one month’s payment rounded to the closest $50 increment = 650
Acquisition fee = 725
Registration = 225
6.5% Tax on money down (3500) = 3500 x .065 = 227.5
Total amount of down payment to be used to reduce lease balance = Money down - Security Deposit - Acquisition fee - Registration - Tax = 1722.5

Lease value after Down payment = Total Lease value - Down payment = 21,224.6 - 1722.5 = 19502.1

Total Monthly lease payment = Lease value after down payment / term = 19,501.2 / 30 = $650 / Month for 30 months

Still a great deal IMO, sorry for the confusion.

[MSPORTWORLD]

No Doubt! Still a great deal!

[Curt2000]

If the money factor was the normal .0022 that BMW offers then it would bump the finance fee from $47/month to $204/month.

If you plug those numbers into the equations above the monthly rate comes out to $817/Month after the increased tax on the higher lease value...for a normal 36 month term, the rate goes up to $844/month with the increased depreciation.

I would say $650/month is a smoking hot deal

[Angry3]

[QUOTE=BlueZ4AZ;5721297]

Originally Posted by Curt2000

$60,025




I purchased one of the Blue Z4 35i here in AZ with the Extended Ivory Leather, Premium Package, 18 " Wheels, back in July. I traded in my Corvette, so I had about 30% down payment, so did not lease. Went with BMW Financing. Mine had only 8 miles on it. Probably a couple test drives, but not a demo. They were using a couple black ones as the demos.

One other question: Were you trading in a vehicle in that transaction where the dealer quoted you $x under invoice?

That is a good lease plan BMW has now, but don't forget it is only 30 months, not 36. Using the same straight line method, the residual on a 36 month lease would be 55-56%.

It sucks that this is a special promotional lease and the dirt cheap money factor is only available for the 30 month term. The 30 month term is what bumps that payment up significantly compared to the more conventional 36 month term. I have a 135 convertible that I leased during a similar promotion early this year that had a $48K sticker. With literally nothing due at signing except my MSDs I ended up with an under $500 a month payment.

The terms on this promo lease are fantastic, if I hadn't ended up with the 1 I would be all over it. But the 30 month term does kick the payment up into the 6-700 range but with the benefit (IMO) of a shorter commitment on a brand new model.

I expect we will have some more new owner stories shortly.

[antzcrashing]

Originally Posted by Jason

It's from the Official Space Gray pics thread: http://e89.zpost.com/forums/showthread.php?t=200385

thanks

[positiveions]

So Curt, what do you think the payment will be for 36 month w/ 10k miles a year. I need help. I sold my ZHP yesterday, and today is the deadline to order a 335 coupe with the options i want. When I say order, i mean by that another dealer has my car, and my dealer wants to get it ASAP before it is sold!.

[Curt2000]

Originally Posted by eatrach73

So Curt, what do you think the payment will be for 36 month w/ 10k miles a year. I need help. I sold my ZHP yesterday, and today is the deadline to order a 335 coupe with the options i want. When I say order, i mean by that another dealer has my car, and my dealer wants to get it ASAP before it is sold!.

I'll need to know the Invoice and MSRP on the vehicle...is this for a Z4? The .0005 money factor is only for the Z4 and its only for 30 month leases.

[positiveions]

Originally Posted by Curt2000

I'll need to know the Invoice and MSRP on the vehicle...is this for a Z4? The .0005 money factor is only for the Z4 and its only for 30 month leases.

same invoice as the example you were giving above.

[BlueZ4AZ]

Originally Posted by Curt2000

Alright I'll just run the numbers right here...but you are right Mike, I didn’t account for the finance fee formula equaling the monthly rate, I was dividing it by the term which is where that $1.50 factor came from.

MSRP: $60,025
Invoice: 55,750
Net Cap: 55,750

That is a great lease program. However, invoice price is $55220, not $55,750. I know, as I bought the exact same car. Edmunds.com confirms $55220 as the invoice price. Sounds like they threw their Advertising Fee on there. I raised this flag when the dealer started to mutter at me about that.

[Curt2000]

If you have to have 36 months then you will not get the incentive money factor and you would be lucky to get your payments below $850/month

At 10K miles for a 30 month...you should ask for $3500 down and $630/month

By taking the 30 month lease you would save yourself close to $12,000

[Curt2000]

Originally Posted by BlueZ4AZ

That is a great lease program. However, invoice price is $55220, not $55,750. I know, as I bought the exact same car. Edmunds.com confirms $55220 as the invoice price. Sounds like they threw their Advertising Fee on there. I raised this flag when the dealer started to mutter at me about that.

Ahh, good catch thanks!