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      12-13-2012, 10:47 PM   #1
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Lease deal question - Hate being this new and making a thread like this...

I figured i would begin a formal thread to voice my concern over my upcoming lease purchase. This is my first BMW and my first lease. Luckily for me, i thought, i knew the salesman and the finance manager. After finding a vehicle, which hasnt made it to the US yet (scheduled for first week of Jan), he worked the numbers. According to him and my credit i was a "super elite" customer.

Here is the car:

13 328i m-sport
alpine white
auto w/ sport shift
black leatherette
heated seats
moonroof

its an oddball car but was what i wanted except for the lack of xenons.

This is my deal:

36mo/ 15k a year
42500 Cap
25111 residual value
4.5% sales tax
2k down out of pocket
1k holiday cash
.00175 money factor
575 monthly payent

havent signed for the deal. after looking at others deals on here, based on my payment i should be getting a 335i m-sport. im lost and seems that i cant even trust who i thought was a friend giving me a "good deal." I havent tried to negotiate yet but i would like some ammo for when i do. Any insight would be awesome and greatly appreciated.

Thanks Jesse
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      12-14-2012, 01:46 AM   #2
Orient330iNYC
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this is a warning sign:
.00175 money factor

buy rate is 0.00130 not sure how they are marking it up that much unless you are waiving the security deposit and are not currently a bmwfs customer. even if you are, they are doing a pretty high bump.

39 month leases are the sweet spot right now, residual is 1% less than a 36 month.

what is your acq fee? msrp? selling price before cap cost reductions
cant really tell too much from what you posted without that info. but that payment seems really high for a modestly equipped 328i.

should be 100 less per month. you are correct, you are paying 335i money for a 328i

i ran the numbers for the deal on selling price and MF i got on my 335i m sport ( tech, dynamic, heated, pdc, backup cam) with the same cap cost reduction, tax rate and mileage as your lease (mine is a lower mileage, higher tax), and for a 39 month, 15K mile a year lease, i got a payment of 546 per month.
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Last edited by Orient330iNYC; 12-14-2012 at 01:58 AM.
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      12-14-2012, 07:17 AM   #3
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I didnt have my deal sheet with me last night. Here is all of the info off the deal review:

Msrp 43295
Cap Cost 41147
bank fee/ doc fee 1424
total cap 42571
cap reduction 2298
net cap 40272
residual 25111
total depreciation 15161


I understand that they are in the business to make money and i dont want to take away from that BUT i want as much as i can for my money. I dont mind my payments as long as they match the car i am purchasing.

Thanks for the response.
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      12-14-2012, 08:28 AM   #4
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wow. the bank fee should be 725. looks like they are marking it up to the max and adding a $500 doc fee (aka profit) to that. this is a bad deal.

you're basically paying more than 335i money for a lightly optioned 328.
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      12-14-2012, 08:39 AM   #5
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5 hours from atlanta and i go to atlanta all the time.
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      12-14-2012, 08:44 AM   #6
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I just leased a loaded 335i in November and my deal was MUCH better. You should walk away from this one. The money factor is way too high. You should be getting the BMW published rates (MF and residual). Also, the bank and doc fees are excessive. Finally, there is a holiday credit which everybody gets so you should add any discount off MSRP to that. In my case, I got $4000 off MSRP.

I got my car here in Baton Rouge after checking with dealers as far as Houston and Mobile. If I were you, I would check around.
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      12-14-2012, 08:49 AM   #7
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Going off of BMWconfig website with your options, it came out to 40k for dealer invoice. So the CA is making $1000+ invoice on your as well as the high bank/doc fee.
My 335xi was 9k more in list price and I'm still paying less than what you pay although I did have an extra $1000 incentive and no money down except for taxes and titles.
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      12-14-2012, 08:55 AM   #8
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i checked around but i didnt know the deals could be had like im seeing from you guys. uniformed buyer for sure. its just hard to find what i want or so i thought. not much luck in my area (the southeast). im going to keep looking and more thank likely get my deposit back. i wanted xenons and other options but was told it was out of my price range. its cleary not!
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      12-14-2012, 10:40 AM   #9
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It is sad that you friends are taking advantage of you. They are assuming you are stupid and will take this really really BAD deal.

I am paying $590 a month on a fully loaded M-Sport 335i.
You can get fully loaded 328 for less than what they are offering you.

I just did the math. If I include the marked up MF over 36 months you are essentially paying $2800 extra!!!

Using the same car above with no markups and +500 dealer profit over invoice your monthly would drop to $483. This is the average deal a customer should get. A good deal for a friend should be below invoice in my opinion... Some friends you have,lol

Here is my recommendation.
Go to bmwconfig.com.
Build the car you want.
Contact a dealership and offer then + $500 over the invoice price on bmwconfig.com
Plan to only pay $725 for Acquisition Fee, Base .00130 MF on the lease
Do not get any addons etc
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      12-14-2012, 10:47 AM   #10
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Quote:
Originally Posted by The Sage View Post
i checked around but i didnt know the deals could be had like im seeing from you guys. uniformed buyer for sure. its just hard to find what i want or so i thought. not much luck in my area (the southeast). im going to keep looking and more thank likely get my deposit back. i wanted xenons and other options but was told it was out of my price range. its cleary not!
If you can afford 580 a month you can shoot for a fully loaded 328 or nearly fully loaded 335.
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      12-14-2012, 11:26 AM   #11
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got a call into some new dealers and working pricing on fully loaded 328i's
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      12-14-2012, 11:53 AM   #12
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Quote:
Originally Posted by The Sage View Post
got a call into some new dealers and working pricing on fully loaded 328i's
Dont let them work the numbers for you. Just make them an offer on what you are willing to pay.
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      12-14-2012, 01:09 PM   #13
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You treat a lease just like you would a purchase. You first settle on an "acceptable" sale price - ie the mark-up over invoice you're comfortable with. From there, you make sure they're in line with respect to acquisition fee, bank fees etc. Then it's on to the money factor and residual value to make sure those are where they should be. Residual values are hard numbers published by the manufacturer. The money factor is a potential profit center for the dealer which is OK, but just make sure it's not excessive. For reference, multiply the money factor by 2,400 to get the effective equivalent interest rate. In this case, yours would be 4.2% while the base rate is 3.12%. Finally, any taxes and/or cap cost reduction you're looking to put down. At this point, the payment is the payment.

99% of people fixate on the monthly payment without any concept of what they're paying for the car. Never walk into negotiations without knowing the details. It will never end well.
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      12-14-2012, 01:44 PM   #14
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well thanks to all this assistance i a checking out two deals right now and doing it the right way. talking to adrian at south atlanta like Orient330iNYC suggested and talking to the other local dealer. one for a 328i msport and 1 for a 335i msport hopefully all goes well.
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      12-14-2012, 02:32 PM   #15
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Quote:
Originally Posted by The Sage View Post
well thanks to all this assistance i a checking out two deals right now and doing it the right way. talking to adrian at south atlanta like Orient330iNYC suggested and talking to the other local dealer. one for a 328i msport and 1 for a 335i msport hopefully all goes well.
Keep us updated with any deal you get, just post it here, and we'll review it before you sign anything Adrian has a good rep, I recommend him too :
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      12-14-2012, 02:49 PM   #16
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I locked my credit now when I ordered my 328i. Here is the deal that I got, mind you I'm a BMWFS previous customer though

39 month lease 12,000 miles/yr
MSRP 43595
Selling Price 41975
Rebates 1750 (1000 holiday cash plus 750 for loyalty)
LMF sell rate 0.00130 (like said above, this seems to be the new rate)
Lease end value 25721.05

Sign and drive payment (for prior BMWFS customers, no inceptions required at all)
$536.45 + 7.0% tax = $574.00/month tax incl
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      12-14-2012, 03:07 PM   #17
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Quote:
Originally Posted by TACA A320 View Post
I locked my credit now when I ordered my 328i. Here is the deal that I got, mind you I'm a BMWFS previous customer though

39 month lease 12,000 miles/yr
MSRP 43595
Selling Price 41975
Rebates 1750 (1000 holiday cash plus 750 for loyalty)
LMF sell rate 0.00130 (like said above, this seems to be the new rate)
Lease end value 25721.05

Sign and drive payment (for prior BMWFS customers, no inceptions required at all)
$536.45 + 7.0% tax = $574.00/month tax incl

That selling price seems very high
This was my deal

39 month
12k/year
MSRP: 44445
Selling Price 40850
Rebates: 2000
MF: .00130
Monthly w/tax at 7.75% $456
Due at signing is $1196



My car has almost 3k more options, has a lower selling price, I am new BMFS customer and I have higher tax rate, but I pay almost $100/month less than you. I think you can get a better selling price

Last edited by g2g8969; 12-14-2012 at 03:09 PM. Reason: forgot due at signing
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      12-14-2012, 06:48 PM   #18
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just got this one from a local dealer. do not have any numbers because this was just an email so here goes:

The car I located for you has the following options:
Alpine White exterior
Black Leather Interior
High Gloss Black trim
M-Sport Package
Premium Package
Lighting Package
Cold Weather Package
Harmon Kardon surround Stereo
Anti-Theft Alarm
Sport Automatic Transmission
BMW Assist and Blue Tooth with USB and AUX inputs

With $2,000 down your payment will be $593.88 and this will include all your taxes and fee
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Last edited by The Sage; 12-14-2012 at 06:55 PM.
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      12-14-2012, 07:54 PM   #19
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Quote:
Originally Posted by cchrisv View Post

Using the same car above with no markups and +500 dealer profit over invoice your monthly would drop to $483. This is the average deal a customer should get. A good deal for a friend should be below invoice in my opinion... Some friends you have,lol
I think you're exaggerating a bit, even friends have to put food on the table. No reason for them to take a loss on a deal, even to a friend.


Quote:
Originally Posted by The Sage View Post
got a call into some new dealers and working pricing on fully loaded 328i's
Quote:
Originally Posted by The Sage View Post
well thanks to all this assistance i a checking out two deals right now and doing it the right way. talking to adrian at south atlanta like Orient330iNYC suggested and talking to the other local dealer. one for a 328i msport and 1 for a 335i msport hopefully all goes well.
Buy the car you need, not what you can afford. If a lightly optioned 328 is all you need, then buy that and bank the $100/month you'll be saving over your 36-39 month term.
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      12-14-2012, 08:02 PM   #20
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You need to focus on the sales price of the car and not the monthly payment. Get the MSRP & invoice price of the car. Then negotiate the sale price. Then get the MF they are using, the acquisition fee and any other charges. Then you will be able to evaluate the deal.
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      12-14-2012, 08:30 PM   #21
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Quote:
Originally Posted by EnerJi View Post
I think you're exaggerating a bit, even friends have to put food on the table. No reason for them to take a loss on a deal, even to a friend.
No, I'm not. If I was in their position I would sell the car for 0 profit but that is how I treat my friends. I don't take advantage of them like these people are.
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      12-14-2012, 09:31 PM   #22
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for the record he found out i was looking and told me "man im not even making anything on this." i didnt ask for it. i didnt imply it. i was told by him he would give me an awesome deal. Im going back to him tomorrow and talk to him about every thing. But this time i will be armed with my new found info and the advice from the great people in this forum. If he cannot get where i want then i will walk away and try a different dealer.
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