35i lease help

[s1k0ne]

Hi,

I'm looking to pick up a 2013 z4 with the following.

2013 BMW Z35i Alpine white/Red w/Aluminum carbon trim
Navigation, M-sport, Premium Sound, Double Clutch, Heated seats, and BMW apps

MSRP 62,845
cap price 59,400

Lease: 11,500 total down, 36 x 499 inc tax @ 15k per year.
MF: 0.00190

The high down payment is for the lower monthly. I'd rather put a higher down initially and stay under $500 a month.

Ss this too high? Your comments are appreciated.
Thanks

[bmw-nj]

Yes this is outrageous.

I put 0 down and pay 520 a month.

My z is a 35i fully loaded 65,000 sticker.

Putting money down on a lease is not advisable.

[snk]

On a lease, you will lose your down payment should you get into an accident that totaled the vehicle.

so go with $0 down, or go for multiple security deposit (MSD) to lower your money factor.

[Hoa]

you can only get your money back if you leave a security deposit. down payment is not refundable. it directly go towards the price of the vehicle to reduce monthly payment. the security deposit will reduce the money factor to reduce payment. i dont think you are getting a good deal

$499*36= $17,964
$17,964+$11,500 = $29,464 total cost for 3 years

that equals to $818.44/mo

[s1k0ne]

Sorry, i'm a NOOB when it comes to leases as it is my first but also my first BMW. so from what i'm getting at is go for MSD to reduce the MF to lower my monthly.

Also bmw-nj, how did you go for $0 down and $520 a month? was it a older model you took the lease on or something?


Thanks a lot guys for your input

[s1k0ne]

my broker just sent me another price at $500/month, $10,400 down. out to...
$28,400/36 = $788.89 a month. This price is including tax/month.

Wondering what steps i should take to proceed.

1. How does MSD work
2. what else do i need to do in order to proceed with a $0 down and have the lowest payment


Thanks guys

[snk]

Originally Posted by s1k0ne

my broker just sent me another price at $500/month, $10,400 down. out to...
$28,400/36 = $788.89 a month. This price is including tax/month.

Wondering what steps i should take to proceed.

1. How does MSD work
2. what else do i need to do in order to proceed with a $0 down and have the lowest payment


Thanks guys

each MSD will reduce your money factor by 0.00007. with 7 MSD, it's a reduction of 0.00049, or about $40/mo in your case. the way I see it, you put down ~$4000 (7 x your monthly payment) and get $480 in savings per year or 12% in return.

I put together a spreadsheet (https://docs.google.com/spreadsheet/...HdZU3JGcURzNXc). feel free to play around with it. It's not 100% accurate as dealer will allocate part of your downpayment as "acquisition fee, title/registration, first month payment etc etc etc".

usually when I go to the dealer, I would negotiate on the selling price first. Once we agreed on the price, I will ask for their MF and residual. Most sales guy will say the same line "I don't know what the MF is, but the finance manager said it's 1.9%". In reality, that's about 4%.

Just remember, everything in life is negotiable.

[s1k0ne]

Thanks for your help!

After some calculations, i'm wondeirng how bmw-nj got the car at $520/month with $0 down. Helluva deal if that's true.

So let's say the car is worth $58,300. With around $5000 down and 7 MSD, it comes out to $587.25 without tax.

with $10,000 down which was my original plan, it's $441.31 without tax with 7 MSD. Without the 7 MSD, it's $482.97 without tax.

My broker is offering $10,000 down with $500 a month including tax. $0 down, it's $733.19/month without tax. I'm thinking that i'm getting a descent deal considering that my specific build is selling for around $58,000 on true car value.

Sorry if i'm confusing anybody but just trying to learn about these lease deals! Thanks

[Hoa]

Try not to put any or very little down. The only thing it would help is the interests that you would save and it wont be much. If you could do something else that could generate more than your financing rate, keep the cash.

What you should do is negotiate on the sale price. Usually you can get them to knock it down close to invoice price for the vehicle. BMW made a mistake when they set the residual for the Z4 so high a year/2 years ago. that is also a factor why the payment was low for those leased a 2010 & 2011. for 2012+, they fixed that by making the residual so low that the first 3 years, you will pay almost 60% of the car's value.

Thats what the sales manager told me. They rather you buy the car instead of leasing it because they lost so much money in leasing the Z4 in the past.

[snk]

My guess is bmw-nj got his lease last year, sometime around April when BMW was doing crazy lease deal. the residual on the car was 79% for 3 year 12k miles (higher residual = lower monthly payment).

The residual this year is about 65% for 12k miles or 63% for 15k

the other route is to look for deals by taking over someone else's lease. try swapalease or leasetrader.com

I have never tried it but doesn't hurt to browse through.

[s1k0ne]

ok, so as of now, it seems like my broker is doing a good job with the current numbers offered by bmw.

1. only thing i can do is try to lower my MF at the moment,
2. instead of putting down 10K, use around 4K for 7 MSD.
3. how many MSD(?) can be purchased/ deposits made?

[snk]

7 is the max you can go

[Hoa]

If you have some vacation time, do the euro delivery, it's a few grand less (I think 4k for z4). It's basically a free trip and you get to drive your car over there.

[nicknaz]

You shouldn't compare lease deals from 2011 when BMW FS was helping to drive sales via extremely high residuals. It is nice to hear about great deals that others got but you should evaluate based on current market conditions.

You should try to get the negotiated price lower. I got my 2012 35i in June for 55k (MSRP 63k) and that helped to lower the lease payment. Also, you could go with a 10k or 12k mileage limit and purchase miles later if you need them. I think the MF can be lower to. Try to get 0.00175.

As others said, definitely don't pre-pay the lease with a cap cost reduction.

Best of luck!

[SgtGigglebox]

Originally Posted by nicknaz

Also, you could go with a 10k or 12k mileage limit and purchase miles later if you need them.

That's ultimately what I ended up doing. After I boiled down the numbers, there wasn't a hell of a lot of savings in "pre-buying" the miles. If I need extra miles, I'll pick them up 2.75 years from now. Plus going into it with that mindset will keep me from over-analyzing mileage and being reluctant to take it on trips, etc.

[s1k0ne]

Just got word that i'm getting the car @ invoice, which is considered at $58,600 for the following...

2013 BMW Z35i Alpine white/Red w/Aluminum carbon trim
Navigation, M-sport, Premium Sound, Double Clutch, Heated seats, and BMW apps

Does that sound about right?

[nicknaz]

if you like the terms go for it. Other option is to delete the navi and BMW apps. I took those off the table to keep costs down myself.

I got $2000 below invoice but my car was sitting at the dealer for a few months. Doesn't seem like the Z4 is selling quickly so really push hard to lower the price. Tell em you will get a Boxster S instead if they don't play ball

[snk]

On the MSD, of the $10k, only $3,552 is cap reduction. The remaining is your security deposit, which will be refunded at lease end.
Check with him to confirm, although $7k is a little high for deposit. It should 7 x your monthly payment = 7MSD

[s1k0ne]

Originally Posted by snk

On the MSD, of the $10k, only $3,552 is cap reduction. The remaining is your security deposit, which will be refunded at lease end.
Check with him to confirm, although $7k is a little high for deposit. It should 7 x your monthly payment = 7MSD

He said it's $600x7= $4200, cap reduction of $3,552 and the remaining as fees? are fees at around $2,248?

[snk]

Originally Posted by s1k0ne

He said it's $600x7= $4200, cap reduction of $3,552 and the remaining as fees? are fees at around $2,248?

$2,200 for docs, title and an escort?

[laz4]

2012 z4 35i titanium silver, coral red, M sport package, DCT, loaded with the exception of DVD changer and auto high beams, and I have the 18" wheels instead of 19s. The car also has extended leather.

Sticker was around $69,995.

This was a special order, not leased off the lot.

3000 drive off, $665.00/month tax included, 12k miles per year. They didn't let me forget how good of a deal it was.

[arirochmann]

It sounds like Z4 lease terms are simply not favorable right now. If you really want the car go for it, it's your money.

Personally I would wait until it gets a bit more into winter which will help you get a better deal on a convertible. Additionally, with the down payment you were looking at I would be strongly considering other similar models, like the Porsche Boxster, which is going to cost about the same.