|08-28-2012, 07:43 PM||#1|
Private First Class
Drives: 2013 BMW 328i F30
Join Date: Aug 2012
Location: Jacksonville, FL
I have been lurking for some time reading threads intently as I am planning on placing an order in November (waiting for the new Nav to start production).
I was planning on purchasing, but after much reading, I am thinking about the possiblity of leasing. I don't know much about the lease process, so I was hoping some would be so kind as to answer some questions so that I may understand it better so I can make a sound decision on which way to go.
First, I am in FL and want a payment of no more than $500 monthly. I will have a trade in of about $7500 to work with. The MSRP of my configured car is $50,245 and invoice is $46,355. I am assuming I can negotionate the car for at or around invoice, but we'll use $500 over to be safe, so a $46,855 sale price. The only discount I am eligible for is the USAA discount, which I was told was $1000 using BMWFS or $1500 if I financed through my own bank. I assume the discount is considered a Cap Cost Reduction just as any additional down payment would be?
If purchasing I was planning to finance 32,500 @ 2.75% over 6 years for a payment of less than $500/mo. I would have a trade of $7500 and put the rest down CASH to get down to $32,500.
I know that the payment on the lease depends mainly on Money Factor and Residual Value. I would be doing a 3yr/15K lease.
Is this number negotiable? I assume it is dependent on your credit rating? I have an A+ credit rating so I would hope to get the best rate. I have seen in other threads that a MF of .00145 is something to shoot for (3.48%). For leasing, do I have to go through BMWFS or do banks/credit unions offer leasing rates?
Is this a negotiable or pretty much a set value depending on the car, length, and miles? What can I expect for 3yr/15K on a 328i? 59-60%?
Drive off Costs
From other threads I gather these are the things that will be due at signing:
Licence and Registration
Security Deposits (including any MSD's)
Is there anything else that should be included here? Is the Bank Fee usually included here or factored into the lease price or do you have a choice? The leasing calculator seems to add it into the lease price.
My understanding is that your security deposits are refundable when the lease is over. If I had any left over from my $7500 trade that I did not use as a down payment or my due at signing, shouldn't I put that toward MSD's to reduce my money factor?
Who is the gap insurance paid to? BMWFS or would my insurance cover that (USAA)? I am looking at about $105/mo for insurance as quoted from USAA for a purchase. Should I expect my monthly insurance rate will be higher if I lease as opposed to buy?
Is gap insurance added to the monthly total paid for the lease or separately paid to my insurance company? How much can I expect to pay montly for gap insurance?
Using the lease calculator here: http://leaseguide.com/calc.htm
Costs Added to Lease
What all is included here? Just the 750 (expected) Bank Fee?
Cap Cost Reductions
I assume I include any down payment/trade in value here. Do I also include the USAA discount here? I would only want to leave as much down to get my payment down to $500 or less.
I know that is a ton of questions, but any help would be sincerely appreciated.
|08-28-2012, 10:17 PM||#2|
Drives: 2015 M235i Vert
Join Date: Jun 2012
Location: Long Island NY
Discount should be counted as a cap cost reduction.
Money factor - they should give you the base money factor if you have good credit, but check.
The Residual for August is 59% on a 328/335 sedan for 15k/year.
The acquisition fee is typically paid up front, but can be rolled into the payment (but then you'll pay interest on top of the fee).
Keep in mind if you trade in, and then total your car a month later, you've just lost the value of your trade. MSD's are a great way of "loaning" BMW your money in exchange for a lower money factor and less interest. They are fully refundable so if you are OK with the cash up front, do them. Sadly I wasn't eligible for those due to NY law.
Gap insurance is included in the BMWFS lease.
The bank/acquisition fee should be $725, watch out since some dealers like marking it up to $925.
You include the down payment and trade in value as part of the cap cost.
Keep in mind what I mentioned about trade in value and down payments. You may want to consider selling your car privately and keeping that cash earning interest with a slightly higher monthly payment. You'll end up paying slightly more in interest, but you don't run the risk of losing the whole value of your trade if some bozo smacks into you.
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