Lease: what to expect

Paddy · 12-07-2005, 08:56 PM

Can anyone tell me what payments /upfront costs for a lease on a 06 330i. Price $35910 including dest. fee. Was going to pay cash but am now considering lease (48mo).

Would like to have some numbers in advance of talking to dealer...

Thanks in advance,

E90-4life · 12-07-2005, 08:58 PM

Don't they give you lease opt's on the BMWUSA website?

Saosin17 · 12-07-2005, 09:30 PM

yes they do, but add about 150/mo on what they give you, they leave out certain things that really add up in the end. my 06 330i was 41,000 and a monthly of 670

YV1 · 12-07-2005, 10:01 PM

On a 330 you should expect: money factor .00195 or 4.68 %. About $ 140 per month
Residual value about 48 %. About $ 390

So monthly payment about $ 530 + taxes

Origination fee and doc fee about $900
First month and deposit $ 1030

My advice, call BMW Financial Service directly and you deal with them. They provide a very good and honest servicer over the phone.

Paddy · 12-07-2005, 10:34 PM

I called my dealer and he was non-commital on the phone.."we need to sit down and look at the numbers" was his reply. He did give me a ballpark value when I pushed him, which was $600-650 with $2500 at signing. That sounds more like 5 series pricing than 3-series!!

Thanks all, I used the info provided and did dome research and here is what I came up with....

MSRP: 37075
Base Cap Cost: 33735
Cost Added to Lease: 625 (Asquisition fee)
Adj Cap Cost: 34360

Using 36mo Lease MF:.00195 and Residual 62% and sales tax 7.75% in San Diego.
Monthly payment works out at $427.74 + $33.15 tax
(total: $460.89).

I presume that the lease only needs to cover Base Cap plus acquisition fee???

Other Fees...
Disposition: 350
Dest Charge: 695
Security Deposit: 500
DMV/Lic Fees: 373.75
MACO+Training: 480

Total other fees: $2398 + Tax??? (179.85)

Question 1: Do I have to pay tax on those "Other Fees"?
Question 2: Am I missing any fees
Question 3: Do third party leasing companies (non-dealer) give better rates?.
Question 4: Is Disposition fee refundable if I buy car at lease end.
Question 5: Is Security Deposit refundable at lease end?

Thanks in advance...

MIKEYMIKE · 12-08-2005, 01:30 AM

I've called around a few dealers and got quoted very high lease numbers as well. I know the phone isn't too reliable...but the ball park numbers are still very high and truly do sound like 5 series lease numbers.

I guess the E90 is still just too new. The funniest part is...once the Coupe comes out the pricing is going to be really high on that, and the Sedan price will drop.

BTW; When is the coupe supposed to come out??!!

YV1 · 12-08-2005, 08:53 AM

Quote:

Originally Posted by Paddy

I called my dealer and he was non-commital on the phone.."we need to sit down and look at the numbers" was his reply. He did give me a ballpark value when I pushed him, which was $600-650 with $2500 at signing. That sounds more like 5 series pricing than 3-series!!

Thanks all, I used the info provided and did dome research and here is what I came up with....

MSRP: 37075
Base Cap Cost: 33735
Cost Added to Lease: 625 (Asquisition fee)
Adj Cap Cost: 34360

Using 36mo Lease MF:.00195 and Residual 62% and sales tax 7.75% in San Diego.
Monthly payment works out at $427.74 + $33.15 tax
(total: $460.89).

I presume that the lease only needs to cover Base Cap plus acquisition fee???

Other Fees...
Disposition: 350
Dest Charge: 695
Security Deposit: 500
DMV/Lic Fees: 373.75
MACO+Training: 480

Total other fees: $2398 + Tax??? (179.85)

Question 1: Do I have to pay tax on those "Other Fees"?
Question 2: Am I missing any fees
Question 3: Do third party leasing companies (non-dealer) give better rates?.
Question 4: Is Disposition fee refundable if I buy car at lease end.
Question 5: Is Security Deposit refundable at lease end?

Thanks in advance...

It looks to me like a good deal. $ 460 for a 330, that's good.
I think you should pay taxes on all the fees, expect on the DMV doc and security deposit. They should refund the security deposit if the car is in good condition. BMW has a brochure that you can download that explains all that you have to do before your lease ends.

jflecha · 12-08-2005, 09:24 AM

First of all, your payments will be lower if you do 36 months and the best way to get an idea is to use the payment calculator on BMW's website, the out of pocket is the tricky part.

espo · 12-08-2005, 12:27 PM

Quote:

Originally Posted by Paddy

Thanks all, I used the info provided and did dome research and here is what I came up with....

MSRP: 37075
Base Cap Cost: 33735
Cost Added to Lease: 625 (Asquisition fee)
Adj Cap Cost: 34360

Using 36mo Lease MF:.00195 and Residual 62% and sales tax 7.75% in San Diego.
Monthly payment works out at $427.74 + $33.15 tax
(total: $460.89).

I presume that the lease only needs to cover Base Cap plus acquisition fee???

Other Fees...
Disposition: 350
Dest Charge: 695
Security Deposit: 500
DMV/Lic Fees: 373.75
MACO+Training: 480

Total other fees: $2398 + Tax??? (179.85)

Question 1: Do I have to pay tax on those "Other Fees"?
Question 2: Am I missing any fees
Question 3: Do third party leasing companies (non-dealer) give better rates?.
Question 4: Is Disposition fee refundable if I buy car at lease end.
Question 5: Is Security Deposit refundable at lease end?

Thanks in advance...

I can answer at least of couple of these questions:
1. Paying Tax on the other fees depends on what state you are in and how you pay them... Since I'm from New York I have to pay taxes on the total lease payment and if I roll the fees in, I have to pay taxes on them.
2. I didn't even pay that many fees on mine... Again this varies state to state. The only "Fees" I had were the DMV fee (which was about $50), a tire recycling fee ($12). The destination charge is built into the price of the car, and my Acquation fee was $825 (another NY thing).
3. Yes/No/maybe... You can always check. In NY none of the independent leasing agencies will touch us because of liability laws, so I was stuck with BMWFS, but in the end it wasn't a bad deal.
4. BMWFS will waive the deposition fee if you buy the car, buy another BMW with financing through them, or lease another car through them.
5. Yes.. They will refund it minus any excess wear charges. In fact if you end up leasing another car from them, they will waive the security charge on the second car.

zdognaylor · 12-08-2005, 12:32 PM

36 months 2500.00 down payments are 483.00

pharding · 12-08-2005, 10:52 PM

1. The best lease calculator is on Edmunds.com
2. BMW FS rates are generally difficult to beat. BMW FS staff are excellent to deal with.
3. The current rates on a 330 are excellent. 36mo Lease Base MF:.00195 and Residual 62%
4. Never let the dealer mark up the Base MF, or also called the Buy Rate.
5. Always check the dealers math on a lease. They make a surprising number of "mistakes" that always favor the dealership.

Paddy · 12-09-2005, 01:19 AM

All helpful, was able to talk to my dealer today with a clear plan/deal in mind. He was a bit surprised when I came out with the 0.00195 MF but had no problem agreeing to it.
Nothing beats being prepared. I got screwed many years ago on my first car (lease) all due to my inexperience/ignorance. Hey, I was young, restless and had some money saved, easy come - easy go. Not this time, the sensibility of age and probably the marked drop in testosterone levels made it a different ( and I would have to say, more fun) game.

BTW: This is one advantage (probaly the only one) of having to wait 8+ weeks from order to delivery. It sure gives you a lot of time to be certain the deal is right for you. I changed my mind from paying cash to leasing because of a lot of posts in this forum. I figured for a first model year, especially with so much electronics in it ( I work in the elctronics industry and pretty much nothing is guaranteed to last much longer than 7 years), plus the good leasing deals people seemed to be getting, I would lower my risk by leasing this time. As one poster commented, "if this were a Toyota, long term ownership would be low risk, but for a new model sports car, it's anyones guess". I sure feel a lot better having my $40K sitting in an high yield mutual fund for the next 10 years, than worrying if I pi$$ed it away on a possibly not-so-good investment. Note: I do have the added advantage that I use this vehicle for business only and can write off all lease payments.

It also seems to help if you have ordered a car (which is en-route) that is not easy to sell. I ordered TiAg 330i 6M, no options. Doesn't seem like many people want this configuration, so the dealer doesn't have much choice but to keep you in the deal.

Thanks again....

mrchris91 · 12-09-2005, 01:18 PM

So I spoke to a dealer and he said the finance guys indicated that the .00195 MF is only for current BMW owners. .0025 is for non-bmw owners. Is this accurate?

Quote:

Originally Posted by pharding

1. The best lease calculator is on Edmunds.com
2. BMW FS rates are generally difficult to beat. BMW FS staff are excellent to deal with.
3. The current rates on a 330 are excellent. 36mo Lease Base MF:.00195 and Residual 62%
4. Never let the dealer mark up the Base MF, or also called the Buy Rate.
5. Always check the dealers math on a lease. They make a surprising number of "mistakes" that always favor the dealership.

hoonie99 · 12-09-2005, 01:27 PM

Quote:

Originally Posted by mrchris91

So I spoke to a dealer and he said the finance guys indicated that the .00195 MF is only for current BMW owners. .0025 is for non-bmw owners. Is this accurate?

Haha that is so bogus.

0.00195 is for everyone that has decent credit.

Paddy · 12-09-2005, 02:06 PM

Damn Right!!
Everything over you pay is money in the dealers pocket..
Say your Agreed cost is 38K based on a 40K MSRP. If you fold destination charge, MACO, Training, Security deposit, DMV+Fees, Disposition Fee, Acquisition Fee, all into the loan. Then you pay about $603 per month @.00195. You would pay $643 @ .0025.

You are giving your dealer $40/month for nothing.

Nice work if you can get it. Imagine if he has done this to 20 people, thats $800/month ($10K/Year) for him. Imagine if he does this to 200 people over a period of time and they all keep leasing from him. $100K/year...WOW!!

Turkitron · 12-09-2005, 04:52 PM

I'm sorry for asking a noob question, but can someone explain to me what MF stands for?

mrchris91 · 12-09-2005, 05:07 PM

LOL I figured as much. I'll make sure that I get .00195 then. Will the security deposit then lower the current mf (.00195) by .00015 like it did before?

Quote:

Originally Posted by hoonie99

Haha that is so bogus.

0.00195 is for everyone that has decent credit.

Paddy · 12-09-2005, 05:41 PM

For previous/previous poster... MF is Money Factor. It's basically the interest rate you pay for the lease. 2400*MF=Interest Rate.
.00195*2400=4.68%.

For previous poster...
The first security deposit won't make any difference from the posted MF rate. Each additional security deposit (up to 5 extra) will reduce your rate. I'm not sure the exact increment but I think your number is wrong and the actual value is the .00005. Works out about 0.12% off the rate per deposit.

Note some dealers caclulate deposit as a $50 roundup of monthly payment, some calculate as $100 roundup.

I personally don't like the Multiple deposits, here's why....
5 Additional deposits (assume ~490/mo lease)= $2500 out of your pocket.

This lowers your MF to .0017 and your payment drops to $473, a whopping $17/month savings.

Also security deposits are collateral that you GIVE the dealer as play money for him to mess with when you return your "slightly used" car at end of lease.

I'd rather have $2500 lying in a CD for 3 years, it's money you can access if you need it.

mrchris91 · 12-09-2005, 07:32 PM

So would .00195 apply to the 325 as well? The dealership can mark it up .0004 right?

Paddy · 12-10-2005, 01:44 AM

325i Rates are a little different...
go to..
http://www.bimmerfest.com/forums/sho...d.php?t=117858

Don't miss the comment at top...
Residual Rates shown are for 15K/Yr...

Add 2% Residual for 12K/yr and 3% for 10K/yr

Apologies for referencing another BMW forum here...(if needed)

__________________________________________________ _
NOTE:::: The rates posted above are BMW USA Financial Services rates for persons with GOOD or BETTER credit.
Get approval from BMWFS first and you can safely go tothe dealer and state the numbers in the link above.

NOTE:::: From my short experience BMWFS rates are, as good or better than you can get from 3rd party lease companies...

Dealer can TRY mark up, but if you are firm that these are the rates that are posted on internet then he should drop the markup..

Remember the car dealer is not a bank, so why should you pay him for financing. The finance company is only getting .00195 regardless what the dealer charges you!!

Here's my recommendation....

(This applies to lease only)
1. Go to dealer to buy the car you want, do NOT discuss finance on your first visit. PERIOD.
Your focus on this visit should be to negotiate the lowest price possible for the car.

2. Go home and work the numbers through your spreadsheet. There are a few really good spreadsheets available on the internet for working lease payments. They are Excel based, if you do not have excel, download OpenOffice 2.0 (big but freee) and they have a spreadsheet program (calc) that will handle .xls (excel) files.
3. Play with the numbers, until you are happy. again I recommend folding everything into the lease EXCEPT Security Deposit and DMV Tilte/Reg/Docs

(Reasons for #3 above...)
1. Why pay tax on a tax (DMV fees). You pay sales tax on the monthly lease fee. If that includes DMV fees (which I consider tax 'cos they relate to the purchase price) then you pay taxes on the tax.

2. Rolling in security deposit may push your monthly payment over the security deposit roundoff ($50 or with some dealers $100)
For example if your lease Monthly was $485 without security deposit included, and you decided to roll in security deposit, monthly would increase to $500+25 cents (a guesstimate but good enough for this example). This would bump your security deposit to $550 or $600 depending on dealer, so you end up forking out (and paying interest on) an extra $50 or $100.
This is the only variable fee and because it varies based on your monthly payment, it affects your final monthly payment calculated value. Take it out and pay on signing, it makes the calculations MUCH simpler and less likely for "calculation error" which tends to favor the dealer!!

mrchris91 · 12-10-2005, 03:10 PM

Man some dealerships really tick me off. This guy is adament about .00195 not being the lease rate. Then he says oh well we can do something to get it down to .00195 and then oh no it's .0025... Won't be buying a car from that guy. Amazing.

Paddy · 12-10-2005, 07:28 PM

The .00195 rate is for 330i, the 325i sedan rates are higher (0.0025 for 3yr/45K according to the link I gave above), make sure you know the rate for your car choice. The dealer may be correct if you're talking 325i speak.
If you get lease pre-approval from BMWFS then you should be able to get the posted rates.

PS. you may notice that when I posted this thread initially I knew nothing about leasing. From the couple of days investigation and reading posts I've gained a tremendous advantage in understanding how it all works. This has changed my whole concept about how to purchase/negotiate with dealers. If I had not have had the 8 Weeks delay waiting for my car to come from Germany, I probably would have settled for some crappy lease deal at the local dealer.
Once you take ownership, negotiations are over. Until then everything is game.

12-07-2005, 08:56 PM	#1
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	Lease: what to expect Can anyone tell me what payments /upfront costs for a lease on a 06 330i. Price $35910 including dest. fee. Was going to pay cash but am now considering lease (48mo). Would like to have some numbers in advance of talking to dealer... Thanks in advance,
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12-07-2005, 08:58 PM	#2
E90-4life auto pilot 266 Rep 822 Posts Drives: E60 M5 chilln on slicks Join Date: Sep 2005 Location: SoCal iTrader: (0)	Don't they give you lease opt's on the BMWUSA website?
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12-07-2005, 10:01 PM	#4
YV1 Private First Class 9 Rep 138 Posts Drives: 325 354 LCSW ZSP ZPP ZCP Join Date: Nov 2005 Location: Raleigh, NC iTrader: (0) Garage List 2006 325 [0.00] 2006 X6 [0.00] 2000 Saab 9-3 SE [0.00] 2001 GS 650 [0.00]	On a 330 you should expect: money factor .00195 or 4.68 %. About $ 140 per month Residual value about 48 %. About $ 390 So monthly payment about $ 530 + taxes Origination fee and doc fee about $900 First month and deposit $ 1030 My advice, call BMW Financial Service directly and you deal with them. They provide a very good and honest servicer over the phone.
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12-07-2005, 10:34 PM	#5
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	After some research I called my dealer and he was non-commital on the phone.."we need to sit down and look at the numbers" was his reply. He did give me a ballpark value when I pushed him, which was $600-650 with $2500 at signing. That sounds more like 5 series pricing than 3-series!! Thanks all, I used the info provided and did dome research and here is what I came up with.... MSRP: 37075 Base Cap Cost: 33735 Cost Added to Lease: 625 (Asquisition fee) Adj Cap Cost: 34360 Using 36mo Lease MF:.00195 and Residual 62% and sales tax 7.75% in San Diego. Monthly payment works out at $427.74 + $33.15 tax (total: $460.89). I presume that the lease only needs to cover Base Cap plus acquisition fee??? Other Fees... Disposition: 350 Dest Charge: 695 Security Deposit: 500 DMV/Lic Fees: 373.75 MACO+Training: 480 Total other fees: $2398 + Tax??? (179.85) Question 1: Do I have to pay tax on those "Other Fees"? Question 2: Am I missing any fees Question 3: Do third party leasing companies (non-dealer) give better rates?. Question 4: Is Disposition fee refundable if I buy car at lease end. Question 5: Is Security Deposit refundable at lease end? Thanks in advance...
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12-08-2005, 01:30 AM	#6
MIKEYMIKE Lieutenant Colonel 63 Rep 1,516 Posts Drives: 330i 6mt Join Date: Oct 2005 Location: SoCal iTrader: (3)	I've called around a few dealers and got quoted very high lease numbers as well. I know the phone isn't too reliable...but the ball park numbers are still very high and truly do sound like 5 series lease numbers. I guess the E90 is still just too new. The funniest part is...once the Coupe comes out the pricing is going to be really high on that, and the Sedan price will drop. BTW; When is the coupe supposed to come out??!!
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12-07-2005, 09:30 PM	#3
Saosin17 Private First Class 33 Rep 138 Posts Drives: e90 330i Join Date: Nov 2005 Location: baltimore iTrader: (0)	yes they do, but add about 150/mo on what they give you, they leave out certain things that really add up in the end. my 06 330i was 41,000 and a monthly of 670
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12-08-2005, 09:24 AM	#8
jflecha Second Lieutenant 10 Rep 205 Posts Drives: E90 06 330i Join Date: Sep 2005 Location: The Garden State iTrader: (0) Garage List 2006 330I [0.00]	First of all, your payments will be lower if you do 36 months and the best way to get an idea is to use the payment calculator on BMW's website, the out of pocket is the tricky part.
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12-08-2005, 12:32 PM	#10
zdognaylor Private First Class 25 Rep 165 Posts Drives: 325i electric red Join Date: Oct 2005 Location: VA iTrader: (0)	36 months 2500.00 down payments are 483.00 __________________ This one time at band camp...........
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12-08-2005, 10:52 PM	#11
pharding Major 308 Rep 1,128 Posts Drives: 23 Audi Q4 e-tron + 14 X3 28i Join Date: Mar 2005 Location: Chicago iTrader: (0)	1. The best lease calculator is on Edmunds.com 2. BMW FS rates are generally difficult to beat. BMW FS staff are excellent to deal with. 3. The current rates on a 330 are excellent. 36mo Lease Base MF:.00195 and Residual 62% 4. Never let the dealer mark up the Base MF, or also called the Buy Rate. 5. Always check the dealers math on a lease. They make a surprising number of "mistakes" that always favor the dealership. __________________ 23 Audi Q4 e-tron; 23 i4 M50 on order 14 X3 Retired: 20 Tesla Model 3 LR AWD; 17 540i x; 14 550i Euro Del; 11 550i Euro Del; 08 550i Euro Del; 06 330i Euro Del; 04 545i Euro Del; 01 530i Euro Del
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12-09-2005, 01:19 AM	#12
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	Thanks Everyone All helpful, was able to talk to my dealer today with a clear plan/deal in mind. He was a bit surprised when I came out with the 0.00195 MF but had no problem agreeing to it. Nothing beats being prepared. I got screwed many years ago on my first car (lease) all due to my inexperience/ignorance. Hey, I was young, restless and had some money saved, easy come - easy go. Not this time, the sensibility of age and probably the marked drop in testosterone levels made it a different ( and I would have to say, more fun) game. BTW: This is one advantage (probaly the only one) of having to wait 8+ weeks from order to delivery. It sure gives you a lot of time to be certain the deal is right for you. I changed my mind from paying cash to leasing because of a lot of posts in this forum. I figured for a first model year, especially with so much electronics in it ( I work in the elctronics industry and pretty much nothing is guaranteed to last much longer than 7 years), plus the good leasing deals people seemed to be getting, I would lower my risk by leasing this time. As one poster commented, "if this were a Toyota, long term ownership would be low risk, but for a new model sports car, it's anyones guess". I sure feel a lot better having my $40K sitting in an high yield mutual fund for the next 10 years, than worrying if I pi$$ed it away on a possibly not-so-good investment. Note: I do have the added advantage that I use this vehicle for business only and can write off all lease payments. It also seems to help if you have ordered a car (which is en-route) that is not easy to sell. I ordered TiAg 330i 6M, no options. Doesn't seem like many people want this configuration, so the dealer doesn't have much choice but to keep you in the deal. Thanks again....
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12-09-2005, 02:06 PM	#15
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	Damn Right!! Damn Right!! Everything over you pay is money in the dealers pocket.. Say your Agreed cost is 38K based on a 40K MSRP. If you fold destination charge, MACO, Training, Security deposit, DMV+Fees, Disposition Fee, Acquisition Fee, all into the loan. Then you pay about $603 per month @.00195. You would pay $643 @ .0025. You are giving your dealer $40/month for nothing. Nice work if you can get it. Imagine if he has done this to 20 people, thats $800/month ($10K/Year) for him. Imagine if he does this to 200 people over a period of time and they all keep leasing from him. $100K/year...WOW!!
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12-09-2005, 04:52 PM	#16
Turkitron Case Med 1 Rep 8 Posts Drives: RSX Type S Join Date: Dec 2005 Location: Cleveland/DC iTrader: (0)	I'm sorry for asking a noob question, but can someone explain to me what MF stands for?
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12-09-2005, 05:41 PM	#18
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	Reply For previous/previous poster... MF is Money Factor. It's basically the interest rate you pay for the lease. 2400MF=Interest Rate. .001952400=4.68%. For previous poster... The first security deposit won't make any difference from the posted MF rate. Each additional security deposit (up to 5 extra) will reduce your rate. I'm not sure the exact increment but I think your number is wrong and the actual value is the .00005. Works out about 0.12% off the rate per deposit. Note some dealers caclulate deposit as a $50 roundup of monthly payment, some calculate as $100 roundup. I personally don't like the Multiple deposits, here's why.... 5 Additional deposits (assume ~490/mo lease)= $2500 out of your pocket. This lowers your MF to .0017 and your payment drops to $473, a whopping $17/month savings. Also security deposits are collateral that you GIVE the dealer as play money for him to mess with when you return your "slightly used" car at end of lease. I'd rather have $2500 lying in a CD for 3 years, it's money you can access if you need it.
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12-09-2005, 07:32 PM	#19
mrchris91 New Member 1 Rep 8 Posts Drives: z Join Date: Jun 2005 Location: ca iTrader: (0)	So would .00195 apply to the 325 as well? The dealership can mark it up .0004 right?
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12-10-2005, 01:44 AM	#20
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	Rates don't change for december 325i Rates are a little different... go to.. http://www.bimmerfest.com/forums/sho...d.php?t=117858 Don't miss the comment at top... Residual Rates shown are for 15K/Yr... Add 2% Residual for 12K/yr and 3% for 10K/yr Apologies for referencing another BMW forum here...(if needed) __________________________________________________ _ NOTE:::: The rates posted above are BMW USA Financial Services rates for persons with GOOD or BETTER credit. Get approval from BMWFS first and you can safely go tothe dealer and state the numbers in the link above. NOTE:::: From my short experience BMWFS rates are, as good or better than you can get from 3rd party lease companies... Dealer can TRY mark up, but if you are firm that these are the rates that are posted on internet then he should drop the markup.. Remember the car dealer is not a bank, so why should you pay him for financing. The finance company is only getting .00195 regardless what the dealer charges you!! Here's my recommendation.... (This applies to lease only) 1. Go to dealer to buy the car you want, do NOT discuss finance on your first visit. PERIOD. Your focus on this visit should be to negotiate the lowest price possible for the car. 2. Go home and work the numbers through your spreadsheet. There are a few really good spreadsheets available on the internet for working lease payments. They are Excel based, if you do not have excel, download OpenOffice 2.0 (big but freee) and they have a spreadsheet program (calc) that will handle .xls (excel) files. 3. Play with the numbers, until you are happy. again I recommend folding everything into the lease EXCEPT Security Deposit and DMV Tilte/Reg/Docs (Reasons for #3 above...) 1. Why pay tax on a tax (DMV fees). You pay sales tax on the monthly lease fee. If that includes DMV fees (which I consider tax 'cos they relate to the purchase price) then you pay taxes on the tax. 2. Rolling in security deposit may push your monthly payment over the security deposit roundoff ($50 or with some dealers $100) For example if your lease Monthly was $485 without security deposit included, and you decided to roll in security deposit, monthly would increase to $500+25 cents (a guesstimate but good enough for this example). This would bump your security deposit to $550 or $600 depending on dealer, so you end up forking out (and paying interest on) an extra $50 or $100. This is the only variable fee and because it varies based on your monthly payment, it affects your final monthly payment calculated value. Take it out and pay on signing, it makes the calculations MUCH simpler and less likely for "calculation error" which tends to favor the dealer!! Last edited by Paddy; 12-10-2005 at 02:37 AM..
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12-10-2005, 03:10 PM	#21
mrchris91 New Member 1 Rep 8 Posts Drives: z Join Date: Jun 2005 Location: ca iTrader: (0)	Man some dealerships really tick me off. This guy is adament about .00195 not being the lease rate. Then he says oh well we can do something to get it down to .00195 and then oh no it's .0025... Won't be buying a car from that guy. Amazing.
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12-10-2005, 07:28 PM	#22
Paddy Captain 74 Rep 664 Posts Drives: 18' M2, AW Join Date: Nov 2005 Location: San Diego iTrader: (1)	Dont forget The .00195 rate is for 330i, the 325i sedan rates are higher (0.0025 for 3yr/45K according to the link I gave above), make sure you know the rate for your car choice. The dealer may be correct if you're talking 325i speak. If you get lease pre-approval from BMWFS then you should be able to get the posted rates. PS. you may notice that when I posted this thread initially I knew nothing about leasing. From the couple of days investigation and reading posts I've gained a tremendous advantage in understanding how it all works. This has changed my whole concept about how to purchase/negotiate with dealers. If I had not have had the 8 Weeks delay waiting for my car to come from Germany, I probably would have settled for some crappy lease deal at the local dealer. Once you take ownership, negotiations are over. Until then everything is game.
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