Help! Trying to join the z4 club! leasing question

[J_Square]

Hi guys,

I am new to this forum and to BMW/leasing. I was wondering if you guys can help me determine if this lease deal is good. I am trying to take advantage of the current promotion for the Z4 35I, but not sure if the numbers add up. The best quote I received was from a dealer that told me he will sell the car for invoice. Please see below:

Z4 35I

• Premium Package - $2,500
• Sport Package - $2,300
• Navigation System - $2,100
• Ipod Adapter - $400
• Loading System - $195

Total MSRP = $61,720
He said invoice/selling price is $57,355

For 10k miles/yr for 24mos
Cash down = $4,000
Monthly payment = $516.27 (including CA tax 9.75%)

OR

For 12k miles/yr for 24mos
Cash Down = $4,000
Monthly payment = $544.45 (including CA tax 9.75%)

I am leaning towards the 12k because I do drive alot, but then again I can always buy miles for .16/mile?

Does this seem right? I just been noticing people here only paying around $400/mo for their Z4s?? Is it because they down alot? I am sooo confused!!! I really dont have to get rip off on my first Bimmer.

[Jordanpryce]

Overall, I would try to figure out why they are requiring so much down.

My car was $63k and the lease was calculated on $58k. 10k miles, 24mos and the NY taxes rolled into the lease (not sure if this is an option in California) and I paid $2,200 up front and $560 a month. I do get BMW loyalty which drops the rate a small amount.

I'd say overall it's a good deal, but it might be worth paying a bit more monthly to put less down.

[Display_Name]

Originally Posted by J_Square

Total MSRP = $61,720
He said invoice/selling price is $57,355

For 10k miles/yr for 24mos
Cash down = $4,000
Monthly payment = $516.27 (including CA tax 9.75%)
OR
For 12k miles/yr for 24mos
Cash Down = $4,000
Monthly payment = $544.45 (including CA tax 9.75%)
I am leaning towards the 12k because I do drive alot, but then again I can always buy miles for .16/mile?

Do you know your Money Factor, and what fees in addition to the acquisition fee (should be $725) are coming out of the $4,000 down.

NOTE: You could save around $50 a month if you do 7 MSDs.

The 12K vs 10K is close to a wash. You're paying 16.91 cents per mile for 4,000 extra miles doing the 12K based on the difference in payments.

If you wait until after the lease is up you'll actually pay 17.56 cents per mile, since you have to pay sales tax on the 16 cents per mile.

I say leave the money in your pocket for now, do the 10K, and only pay for the miles you actually use.

[Vintage]

I think the car and the monthly payment are awesome - seriously! Buy the car; one option would be to put less down and/or see what the rate would be at 36 months if you like to hang on to cars a little longer.

[J_Square]

Thanks guys. Initially they offered me a lower down but if my calculations are correct, putting 4000 down saves me about $200 in a spafn of 2years compared to 2360 down with higher monthly payments. Seems worth it? Also this is probably a noob question but what does msd stand for?

[jpd]

24 months only for great lease. A regular lease would cost you $800 or more for a car that costs over $60K. You don't have much time since the car needs to be built in July. After Aug shut downs there will be 2012s.

[BlueZ4AZ]

Originally Posted by Jordanpryce

Overall, I would try to figure out why they are requiring so much down.

I'm going with... GREED!!

[J_Square]

So I just learned why they are selling at invoice. They are giving me 80% residual and a .00190 money factor? Isn't the standard .00175? How does the MSD work? I heard its rounded to the nearest $50? So for example, if i down 4000 and my monthly payment is 516. I need to pay a total of $7850 (4000+3850)? 550*7=3850. Maybe down less and pay msd huh?

Damn I hope the Z4 is worth it after all this headache =P

[Jordanpryce]

For me it was between the Z4 and a Boxter, both at 62k. The lease on the Boxter was almost double the monthly cost, and I preferred the Z4 because the insurance was less and I think it's a better looking car (not to mention I hate soft tops).

Now that I have it, I couldn't be happier with my decision! Don't sweat a $50+/- in your payment. Put the minimum down and enjoy while the summer is here! These deals are gone as of next month!!!

[J_Square]

Thank you guys for all your help, I am about to pull the trigger on a different offer I got. Down $2318.61 with $3850 MSD, so its $6168.61, then my monthly payment will be $516.31 with tax. So the total amount I will spend on this lease is $14193.74 with tax!

Sounds good?

[STOOF]

^Thats very similar to my deal. DO IT!

[jpd]

As someone said earlier a Boxster at a similar prices is near $1000K a month, makes this a no brainer.

[Dr Stig 2]

Originally Posted by jpd

As someone said earlier a Boxster at a similar prices is near $1000K a month, makes this a no brainer.

Not sure what the ratios are over in the land of the free, but here...

The Porsche dealer tried to explain their pricing difference over BMW as one of scale (efficiency of scale).
They sell 15,000 BMW in Oz each year, but only about 1,200 Porsches.
Hence BMW negotiates a better finance deal than Porsche does.

Not saying I believe him (he is a dealer after all), but it may be true.

[parkstaff]

I work in Sales For BMW in NC....Used to work at Beverly Hills BMW, Century West BMW, and Valencia BMW all in CA...

Your best money factor on the 2011 Z4 35i is .00175 (you dont qualify for owner loyalty ...which would drop your factor to .00145)

Invoice is $57,288 on the $61,720 MSRP.

I would run with 10k a year and 24 mos with a 80% residual

$4,000 total drives no MSD's
Should get you around $480 all in (incl your CA tax)

I would go with a 35is as they lease for the same as the 35i !!!!!
PM me know if you want me to locate one in your area

I just ordered an AW/Black 35is for myself yesterday.... get this for an employee deal $65,075 MSRP
12K....24months
.00111 money
$3460 total down including $700 in security deposits I get back
$99 a month (incl. local sales tax at 3%)
To go with a 35i my payment went up $87

SILLY LEASE RIGHT NOW

GL
-Kyle

[scottz5]

Originally Posted by parkstaff

I work in Sales For BMW in NC....Used to work at Beverly Hills BMW, Century West BMW, and Valencia BMW all in CA...

Your best money factor on the 2011 Z4 35i is .00175 (you dont qualify for owner loyalty ...which would drop your factor to .00145)

Invoice is $57,288 on the $61,720 MSRP.

I would run with 10k a year and 24 mos with a 80% residual

$4,000 total drives no MSD's
Should get you around $480 all in (incl your CA tax)

I would go with a 35is as they lease for the same as the 35i !!!!!
PM me know if you want me to locate one in your area

I just ordered an AW/Black 35is for myself yesterday.... get this for an employee deal $65,075 MSRP
12K....24months
.00111 money
$3460 total down including $700 in security deposits I get back
$99 a month (incl. local sales tax at 3%)
To go with a 35i my payment went up $87

SILLY LEASE RIGHT NOW

GL
-Kyle

I will take 2 at that price lol

[J_Square]

Originally Posted by parkstaff

I work in Sales For BMW in NC....Used to work at Beverly Hills BMW, Century West BMW, and Valencia BMW all in CA...

Your best money factor on the 2011 Z4 35i is .00175 (you dont qualify for owner loyalty ...which would drop your factor to .00145)

Invoice is $57,288 on the $61,720 MSRP.

I would run with 10k a year and 24 mos with a 80% residual

$4,000 total drives no MSD's
Should get you around $480 all in (incl your CA tax)

I would go with a 35is as they lease for the same as the 35i !!!!!
PM me know if you want me to locate one in your area

I just ordered an AW/Black 35is for myself yesterday.... get this for an employee deal $65,075 MSRP
12K....24months
.00111 money
$3460 total down including $700 in security deposits I get back
$99 a month (incl. local sales tax at 3%)
To go with a 35i my payment went up $87

SILLY LEASE RIGHT NOW

GL
-Kyle

Pmed thanks!

[Display_Name]

Originally Posted by parkstaff

I just ordered an AW/Black 35is for myself yesterday.... get this for an employee deal $65,075 MSRP
12K....24months
.00111 money
$3460 total down including $700 in security deposits I get back
$99 a month (incl. local sales tax at 3%)
To go with a 35i my payment went up $87

Did you mean $199 per month? instead of $99 per month?

$99 per month doesn't even cover the finance charge even if the cap cost is the same as the residual.

Or is there a zero missing in your money factor?

Or (door number 3 :-) ) I suppose you could buy the cap cost to under the residual, and a credit is off-setting the finance charge each month? Don't know if that can be done.

[Dr Stig 2]

I cant stand to read this thread anymore.

I almost wish my country was in a recession.

I knew we were getting ripped off, but geez, not by this much.

Eg - we could never get a 2yo car to have a residual of more than 60%, and the government limits it to 45% when you try to claim the lease as a work expense.
Probably has something to do with all the taxes that force us to pay 100% more than you (lucky) guys do in the Americas....
And why our used cars are so much cheaper than the new ones (read high depreciation).

[parkstaff]

Originally Posted by Display_Name

Did you mean $199 per month? instead of $99 per month?

$99 per month doesn't even cover the finance charge even if the cap cost is the same as the residual.

Or is there a zero missing in your money factor?

Or (door number 3 :-) ) I suppose you could buy the cap cost to under the residual, and a credit is off-setting the finance charge each month? Don't know if that can be done.

MSRP $65,075
Employee Selling Price $54,920 ($5500 below invoice)
Residual $53,361.50
Money Factor .00111 ( Owner Loyalty to .00160 minus .00049 for multiple security deposit)
Total Down payment $3436 (incl $700 in 7 security deposits to get back at end of lease)
$96.48 a month + tax (3% in NC) = $99.37

[Display_Name]

Originally Posted by parkstaff

MSRP $65,075
Employee Selling Price $54,920 ($5500 below invoice)
Residual $53,361.50
Money Factor .00111 ( Owner Loyalty to .00160 minus .00049 for multiple security deposit)
Total Down payment $3436 (incl $700 in 7 security deposits to get back at end of lease)
$96.48 a month + tax (3% in NC) = $99.37

Awesome!

So it is possible to have a cap cost below the residual leading to payments lower than the finance charge.

Not quite the same ROI as the MSDs (About 91.9% return per year!), but a better return (~2.8% effective APR, given your 3% sales tax rate) than any CDs are paying nowadays.

Well done, and thanks for sharing.

[STOOF]

Originally Posted by parkstaff

MSRP $65,075
Employee Selling Price $54,920 ($5500 below invoice)
Residual $53,361.50
Money Factor .00111 ( Owner Loyalty to .00160 minus .00049 for multiple security deposit)
Total Down payment $3436 (incl $700 in 7 security deposits to get back at end of lease)
$96.48 a month + tax (3% in NC) = $99.37

Thats amazing. Id have 4 or 5 different cars if i could get that deal LOL

[J_Square]

Thanks guys! I just placed my deposit today! I didn't get Parkstaff's deal, but I who is really? lol...Cant wait till August! Thanks for all your help

Also, how much do the dealer charge for those xenon angel eyes? Pretty pricey huh?