Good Lease Deal for sDrive35i?

[windnsea00]

Best quote I could attain so far:

Ordering a `14 Z4 3.5i, 6-spd, Metallic Paint, Walnut Leather, M-tech, Heated Seats, PDC, and Premium Sound.


12k miles per year / 36 month lease / $2,500 total drive off

MSRP:$63,125
Selling Price: $57160 (includes loyalty)
Monthly Payment: $576.86 + tax = $628.78 (on approved credit)

I've seen better deals from last spring searching the forums but not sure if they are still attainable.

[nicknaz]

If you can post the full breakdown of the drive off, the residual % and MF, that would help people give you advice,

The discount of MSRP seems pretty good.

From the info you posted, seems like a solid deal.

Try pricing out 10k miles per year instead of 12k (you can buy more miles later, or the dealer may forgive the overage when you turn in).

Also think about using multiple MSD to buy down the MF. (MSD make it harder to sublease the car, but the cost reduction is very solid if you plan to keep it)

Best of luck and welcome to the community.

[windnsea00]

Thanks for the tips, residual is 64% and money factor is 0.00125.

[nicknaz]

I think those are nice terms.

I got 65% residual for 10k miles / year last year and MF if I recall correctly was 0.00175 prior to MSDs, so you are getting better on both fronts.

Nice work on the timing and the discount off MSRP

If you aren't comfortable posting the components of the drive off, I would recommend not putting any capitalized cost reduction. And don't forget to try and negotiate the acquisition fee.

[windnsea00]

Originally Posted by nicknaz

I think those are nice terms.

I got 65% residual for 10k miles / year last year and MF if I recall correctly was 0.00175 prior to MSDs, so you are getting better on both fronts.

Nice work on the timing and the discount off MSRP

If you aren't comfortable posting the components of the drive off, I would recommend not putting any capitalized cost reduction. And don't forget to try and negotiate the acquisition fee.

Thanks!

This would be my first lease, so could you help me better understand what you mean by the sentence I put in bold.

[nicknaz]

Originally Posted by windnsea00

Thanks!

This would be my first lease, so could you help me better understand what you mean by the sentence I put in bold.

Sure thing.

To recap:
- In your original post, you said "$2,500 drive off"
- I was asking what made up that amount.
- You did not share the info, so I assumed you did not want to share those financial details with the community, so I commented that you should not put down a "capitalized cost reduction" or "cap cost reduction", which is a pre-payment of the lease (and a possible component of the drive off). The reason for this is that if the car is totaled that money is lost to you.

"drive off" is also called "Total Due on Delivery"

To illustrate, here was the "drive off" breakdown for my Z4 lease. I have put some of my own comments in ( ) to help explain the component.

Cap cost reduction $0
Tax on cap cost reduction $0
Security Deposit $4,200 (I referred to this as "MSDs" earlier.. this reduces my MF)
Monthly Payment $588.21 (also called "First month's payment)
Registration Free $471
Doc Fee $45.00
Up front Sales Tax $59.68 (tax on the registration and doc fees)
Acquisition fee $725 (dealers can make this higher if they want, or they $0 this out and increase your MF as well. If the car is cheaper, it is worth it to pay the higher MF)
California tire fee $7
Prior Credit or Lease Balance $0

Total Due on Delivery $6,095.89


Note that in my case, if I did not do MSDs, my drive off would have been around $1,895.89. That is why I was asking you why your drive off was $2,500.

All things being equal, I would zero out any cap cost reduction and pay the higher monthly, or I would use the cap cost reduction to put down MSDs instead.

Hope that clarifies things a bit more.

[windnsea00]

So to clarify you would receive your security deposit back at the end of the lease? I actually do not know what makes up exactly the $2,500 down.

[nicknaz]

The lease contract holder gets deposit back at lease end. If you hold lease to end that is you. If you transfer lease, the new leasee gets it.

You should figure out what that total due at delivery contains to evaluate the full deal economics.

[silvrevo]

How about
$580 a month
O down
On a 2014 z35i?

Or $550
With $1500 down

This is 10k a year.

Ask further if interested

Thanks

[toplessrydr]

If I understood you correctly those terms came from quick ads. Down means cap reduction. These terms really do not tell you anything....just a monthly payment to lure you in.....Then you will get surprised by the high drive off.

[nicknaz]

Full details need to be posted (msrp, selling price, residual %, money factor, and itemization of the 'drive off') otherwise it isn't possible to compare apples to apples.

For what it is worth, I personally consider residual % and money factor to be non negotiable (just need to make sure you are getting the BMW FS published rates for the month you are initiating the lease) and the selling price is the main negotiating point.

It actually isn't that hard to self-calculate how 'good' your own deal is....