Help with lease offer

Gug · 11-13-2009, 05:06 PM

Long time lurker, first time poster.

Apologies if this is in the wrong place, but I was hoping somebody might be able to inform me whether this lease deal worth pursuing or not.

After some haggling with a dealer that has a number of Z4s on their lot, I have the following offer for a 2009 Manual Z4 3.5 with the following options: Titanium Silver / Black Kansas Leather / Cold Weather / Premium / Sport / 18" wheels / alarm / comfort / ipod and usb / smartphone. The MSRP is $60.275.

The lease offer is for $676.00x29 months with $1,231 down. That's with a selling price of $57,350, 10,000 miles a year, Money Factor of 1., and includes WA tax (which I think is around 8.6%).

Looks reasonable, but I need the final confirmation!

Thanks for your help!

KINetics · 11-13-2009, 06:05 PM

29 month lease program.

Money Factor:
0.00070 for the 3.5
0.00095 for the 3.0

Both have a 63% 15k mile per year residual at the 29 month term
Should be 66% residual for 10k miles per year.

$3K lease cap cost reduction still remains.

Hopefully someone better with math can help you, but if you can afford it, I would recommend not putting money down, but pay all 7 (or 8) security deposits to pay down your money factor. With the max security deposits, you get to subtract .00049 from the MF. Since it's a 3.5 your MF should be

0.0007
-.00049
=0.00021 (multiply by 2400 to get an interest rate of 0.5%, that's insane).

Also security deposits you get back at the end of the lease, regardless of if you get into an accident. A down payment does not.

MSRP=60275
Residual= 39781.5 (66%)
Lease cash=3000

Other fees paid up front

Capitalization=57350
Month depreciation charge=(57350-39781.5)/29=606

If the money factor is .00021, then
Monthly finance charge (@.00021)=(57350+39781.5)*.00021=20.39
Total monthly payment (@.00021)=606+20.39= 626.39
+ 8.6% WA tax = $680.25 month including taxes.

Security deposits = 7 * 650 = $4550 (assuming you only pay 7 security deposits, and round monthly payment to the next increment of $50)
+626.39 first month payment
+~$800 licensing fees
+~$100 misc fess
= 6076.39 total due at signing
-3000 lease trunk fee
=3076.39 gross total due at signing

Also don't forget the doc fee (~$45) and acquisition fee (~$725). That can be added to your total cap cost if you want to roll it into the lease.

In your original post, did they account in the $3000 lease trunk money? Did they calculate the correct money factor? Doesn't sound like it if you say the MF is 1 (They're probably using the 2010 MF).

DrJason · 11-13-2009, 06:08 PM

I have a 30i, got it for invoice, also, got mine 2 months ago so not sure if someone who got one more recently has more input for you.....did you check Edmunds to check the invoice cost......it's an '09 so you should get at least invoice if not better (IMHO)

Gug · 11-13-2009, 06:27 PM

Thanks very much for the prompt responses!

Yes, the quote included the $3K trunk money. Before my brain dribbles out of my ear with mathematical calculations, here's the hard numbers: Although they claimed a money factor of 1 (which seems high), they have quoted (on paper) a "drive off" cost (everything included) of $1231, and lease of $676 (inc. tax) "all included". Unless that 1 was .1!!

Am I missing something? I only ask because your calculations come in higher than my quote, which doesn't (I think) need me to buy down the money factor.
BTW, your residual calculations were spot on, compared to my quote.

I have a second option; with $3000 down, I can get the payments down to $610.92 (incl. taxes).

I'll double-check to ensure the "customer down payment" includes everything.

Thanks again for your help. It looks like a go, right?

narcolo · 11-13-2009, 06:54 PM

KINetics is on point...all the info is correct, but some dealers charge $925 acq fee

I picked up my new Z4 35i last week. Here's my deal on a very similarly priced car.

60,500 msrp
3000 bmw customer cash
selling price wa BELOW invoice...i forget off the top of my head
12k/29 mo which is a special program for november - not a 30 mo lease
mf .0007 but non bmw loyalty is .00085
res 65%

$2500 due at signing, include tax/title/license/reg
$550/mo including orange county CA sales tax

Pacific northwest + winter + poor oct BMWNA sales + 2010's coming in = GOOD DEALS on Z4's.....

good luck!

Jbrock22 · 11-13-2009, 07:28 PM

Just picked up an 09, 3.0 Mrsp $ 56,750. $ 1600 out of pocket, 1st month, bank fee, tags, tax. 12k year- 30 month ( 29 payments left ) 488/month. They took almost 9k off the sticker! Located outside Phila. PS there is a PA tax of 9%= $531.92

Gug · 11-13-2009, 08:18 PM

Thanks for your deal information -- it was incredibly useful. I've emailed my sales guy, and we'll see what happens.

11-13-2009, 05:06 PM	#1
Gug Registered 0 Rep 4 Posts Drives: 09 335xi Join Date: Nov 2009 Location: Pacific Northwest iTrader: (0)	Help with lease offer Long time lurker, first time poster. Apologies if this is in the wrong place, but I was hoping somebody might be able to inform me whether this lease deal worth pursuing or not. After some haggling with a dealer that has a number of Z4s on their lot, I have the following offer for a 2009 Manual Z4 3.5 with the following options: Titanium Silver / Black Kansas Leather / Cold Weather / Premium / Sport / 18" wheels / alarm / comfort / ipod and usb / smartphone. The MSRP is $60.275. The lease offer is for $676.00x29 months with $1,231 down. That's with a selling price of $57,350, 10,000 miles a year, Money Factor of 1., and includes WA tax (which I think is around 8.6%). Looks reasonable, but I need the final confirmation! Thanks for your help!
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11-13-2009, 06:05 PM	#2
KINetics Enlisted Member 1 Rep 42 Posts Drives: Z4 sDrive35i Join Date: Aug 2008 Location: Irvine, CA iTrader: (1)	29 month lease program. Money Factor: 0.00070 for the 3.5 0.00095 for the 3.0 Both have a 63% 15k mile per year residual at the 29 month term Should be 66% residual for 10k miles per year. $3K lease cap cost reduction still remains. Hopefully someone better with math can help you, but if you can afford it, I would recommend not putting money down, but pay all 7 (or 8) security deposits to pay down your money factor. With the max security deposits, you get to subtract .00049 from the MF. Since it's a 3.5 your MF should be 0.0007 -.00049 =0.00021 (multiply by 2400 to get an interest rate of 0.5%, that's insane). Also security deposits you get back at the end of the lease, regardless of if you get into an accident. A down payment does not. MSRP=60275 Residual= 39781.5 (66%) Lease cash=3000 Other fees paid up front Capitalization=57350 Month depreciation charge=(57350-39781.5)/29=606 If the money factor is .00021, then Monthly finance charge (@.00021)=(57350+39781.5).00021=20.39 Total monthly payment (@.00021)=606+20.39= 626.39 + 8.6% WA tax = $680.25 month including taxes. Security deposits = 7 650 = $4550 (assuming you only pay 7 security deposits, and round monthly payment to the next increment of $50) +626.39 first month payment +~$800 licensing fees +~$100 misc fess = 6076.39 total due at signing -3000 lease trunk fee =3076.39 gross total due at signing Also don't forget the doc fee (~$45) and acquisition fee (~$725). That can be added to your total cap cost if you want to roll it into the lease. In your original post, did they account in the $3000 lease trunk money? Did they calculate the correct money factor? Doesn't sound like it if you say the MF is 1 (They're probably using the 2010 MF).
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11-13-2009, 06:08 PM	#3
DrJason Private First Class 3 Rep 103 Posts Drives: Z4 sDrive30i Join Date: Sep 2009 Location: CT iTrader: (0)	I have a 30i, got it for invoice, also, got mine 2 months ago so not sure if someone who got one more recently has more input for you.....did you check Edmunds to check the invoice cost......it's an '09 so you should get at least invoice if not better (IMHO)
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11-13-2009, 06:27 PM	#4
Gug Registered 0 Rep 4 Posts Drives: 09 335xi Join Date: Nov 2009 Location: Pacific Northwest iTrader: (0)	Thanks very much for the prompt responses! Yes, the quote included the $3K trunk money. Before my brain dribbles out of my ear with mathematical calculations, here's the hard numbers: Although they claimed a money factor of 1 (which seems high), they have quoted (on paper) a "drive off" cost (everything included) of $1231, and lease of $676 (inc. tax) "all included". Unless that 1 was .1!! Am I missing something? I only ask because your calculations come in higher than my quote, which doesn't (I think) need me to buy down the money factor. BTW, your residual calculations were spot on, compared to my quote. I have a second option; with $3000 down, I can get the payments down to $610.92 (incl. taxes). I'll double-check to ensure the "customer down payment" includes everything. Thanks again for your help. It looks like a go, right?
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11-13-2009, 06:54 PM	#5
narcolo New Member 4 Rep 26 Posts Drives: E85 E89 Z4 Join Date: Nov 2007 Location: OC iTrader: (0)	KINetics is on point...all the info is correct, but some dealers charge $925 acq fee I picked up my new Z4 35i last week. Here's my deal on a very similarly priced car. 60,500 msrp 3000 bmw customer cash selling price wa BELOW invoice...i forget off the top of my head 12k/29 mo which is a special program for november - not a 30 mo lease mf .0007 but non bmw loyalty is .00085 res 65% $2500 due at signing, include tax/title/license/reg $550/mo including orange county CA sales tax Pacific northwest + winter + poor oct BMWNA sales + 2010's coming in = GOOD DEALS on Z4's..... good luck!
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11-13-2009, 07:28 PM	#6
Jbrock22 Captain 222 Rep 821 Posts Drives: 2pw Join Date: Feb 2007 Location: USA iTrader: (1) Garage List BMW [0.00]	Just picked up an 09, 3.0 Mrsp $ 56,750. $ 1600 out of pocket, 1st month, bank fee, tags, tax. 12k year- 30 month ( 29 payments left ) 488/month. They took almost 9k off the sticker! Located outside Phila. PS there is a PA tax of 9%= $531.92 Last edited by Jbrock22; 11-13-2009 at 09:55 PM..
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11-13-2009, 08:18 PM	#7
Gug Registered 0 Rep 4 Posts Drives: 09 335xi Join Date: Nov 2009 Location: Pacific Northwest iTrader: (0)	Thanks for your deal information -- it was incredibly useful. I've emailed my sales guy, and we'll see what happens.
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