[OneRib]

Originally Posted by golovko

Not sure if this has been answered before but I am taking advantage of the pull ahead program. Right now I have about 7 months left on my lease but when I turn in the car there will be about 4.5 months left. Currently I am just at 20k miles (36 months/10k miles). Even without pull ahead I will be well under the 30k miles at the end of my lease. Are they going to be calculating my miles at roughly 833 miles a month for this last year minus whatever months I have left at turn in?

No they just expect you to be under 30k miles when you turn it in. One advantage of lease pull ahead. Though in your case it doesn't matter.

[afadeev]

Originally Posted by tzsgti

different wheels though that's a noticeable modification vs. another brand tires or incorrect rating.

I wanted to be crystal clear for anyone searching archives in the future - the major hold-up on lease pre-inspection were non-RFT tires.
Dealer was going to dismount my PSS tires and re-install RFTs, then noticed non-OEM forged BBS wheels (fronts required spacers), and there it went.

Tire brand did not matter.
The fact that I got RFTs on day 0 and was thought to be returning the car with non-RFTs at the end of the least is what triggered the notification that I would have been charged for replacing PSS's (to be thrown away) with RFTs.

a

[M4LF]

Originally Posted by OneRib

No they just expect you to be under 30k miles when you turn it in. One advantage of lease pull ahead. Though in your case it doesn't matter.

I usually drive 45-50k miles every three years. So by year two I usually have at least 30k miles. So does that mean pull ahead is not an option for me then. I was thinking of leasing for 12k instead of 15k this time and get a new lease within the last 3-4 months.

[OneRib]

Originally Posted by mso4

I usually drive 45-50k miles every three years. So by year two I usually have at least 30k miles. So does that mean pull ahead is not an option for me then. I was thinking of leasing for 12k instead of 15k this time and get a new lease within the last 3-4 months.

It may be perfect for you. By 2.5 years you with be at about 40k and it would be cheaper to prepay the extra mileage at $0.16/mile rather than take the 2% residual hit for a 15k/year lease.

Now there are some potential pitfalls.
1- Many times M cars are not eligible for lease pull ahead
2- They may not offer lease pull ahead or have it at a time when you're eligible
3- If you wanted to stay in the lease until the end

That being said, it's not a huge financial hit to pay for extra mileage and you can do that up to the day before lease maturity and get the discounted rate (0.16 vs 0.20). Also you can buy extra mileage multiple times so if you aren't sure exactly how many miles you'll need, you can always underestimate. Lastly pre-purchased extra mileage can be refunded at a prorated amount if you don't use it all.

[M4LF]

Originally Posted by OneRib

It may be perfect for you. By 2.5 years you with be at about 40k and it would be cheaper to prepay the extra mileage at $0.16/mile rather than take the 2% residual hit for a 15k/year lease.

Now there are some potential pitfalls.
1- Many times M cars are not eligible for lease pull ahead
2- They may not offer lease pull ahead or have it at a time when you're eligible
3- If you wanted to stay in the lease until the end

That being said, it's not a huge financial hit to pay for extra mileage and you can do that up to the day before lease maturity and get the discounted rate (0.16 vs 0.20). Also you can buy extra mileage multiple times so if you aren't sure exactly how many miles you'll need, you can always underestimate. Lastly pre-purchased extra mileage can be refunded at a prorated amount if you don't use it all.

Actually come to think of it, it should still benefit me to do 12k even though I need 15k. In terms of total payments it's a wash: $28,796 for 15k and $28,747 for 12k plus extra 0.16 at the end. In terms of money due at signing it's slightly better at $7813 (7 MSDs, zero down) for 15k vs $7421 for 12k miles.

Potential benefits are if they decide in three years to make M cars eligible for lease pull ahead then I'll save to additional payment of mileage and waive disposition fees. So essentially zero downsides and a few potential upsides.

Just started the process for an ED M4 this morning so crossing my fingers that everything will go smoothly.

[OneRib]

Originally Posted by mso4

Actually come to think of it, it should still benefit me to do 12k even though I need 15k. In terms of total payments it's a wash: $28,796 for 15k and $28,747 for 12k plus extra 0.16 at the end. In terms of money due at signing it's slightly better at $7813 (7 MSDs, zero down) for 15k vs $7421 for 12k miles.

Potential benefits are if they decide in three years to make M cars eligible for lease pull ahead then I'll save to additional payment of mileage and waive disposition fees. So essentially zero downsides and a few potential upsides.

Just started the process for an ED M4 this morning so crossing my fingers that everything will go smoothly.

You seem to have a very good grasp of it, so I'm sure you'll be fine. When are you trying to do ED?

[M4LF]

Originally Posted by OneRib

You seem to have a very good grasp of it, so I'm sure you'll be fine. When are you trying to do ED?

Thanks. I'm trying to confirm 6/5 as we speak so a little nervous haha

[OneRib]

Originally Posted by mso4

Thanks. I'm trying to confirm 6/5 as we speak so a little nervous haha

Good luck. I have to wait until 7/9 myself. You will have a great time.

[evobeatsti]

this should be stickied!

[OneRib]

Originally Posted by evobeatsti

this should be stickied!

Thanks. Don't know the process for it becoming a sticky. I just try and update the original post as I learn more or things change. I also will give it a bump every once in a while for new members so it's not buried.

[DrePrime]

Wow I never knew about all of this. Thanks for the details information

[MrBlahBlah]

This is incredibly helpful information - thank so much all

[cheapa55]

What is the bank fee? Is it pretty much mandatory?

[OneRib]

Originally Posted by cheapa55

What is the bank fee? Is it pretty much mandatory?

As long as the bank fee is the acquisition fee, yes it's mandatory.
It's the same as a loan origination fee. Just more profit for the financer, in this case BMWFS. They set their terms and don't negotiate. It's a take it or leave it scenario.

Now if they have the bank fee listed as something separate from the acquisition fee, that may be dealer padding and is not mandatory.

[cheapa55]

Originally Posted by OneRib

As long as the bank fee is the acquisition fee, yes it's mandatory.
It's the same as a loan origination fee. Just more profit for the financer, in this case BMWFS. They set their terms and don't negotiate. It's a take it or leave it scenario.

Now if they have the bank fee listed as something separate from the acquisition fee, that may be dealer padding and is not mandatory.

Thank you! These are all the numbers they gave me. I take it the bank fee is the acquisition fee?



Lender BMW Financial Services
Term 36 Months
Mileage 15,000/year



Selling Price $46,495.00
Bank Fee $995.00

Total Capitalized Cost $47,490.00

Residual Value $30,256.00
Total Depreciation $17,234.00
Capital Reduction $0.00
Monthly Depreciation $478.72
Monthly Rent $62.20

Monthly Payment $540.92
Plus local sales tax



License & Registration $397.75
Documentation Fee $80.00
First Payment $584.19
Security Deposit $4,200.00

Drive Off $5,268.34

[OneRib]

Originally Posted by cheapa55

Thank you! These are all the numbers they gave me. I take it the bank fee is the acquisition fee?



Lender BMW Financial Services
Term 36 Months
Mileage 15,000/year



Selling Price $46,495.00
Bank Fee $995.00

Total Capitalized Cost $47,490.00

Residual Value $30,256.00
Total Depreciation $17,234.00
Capital Reduction $0.00
Monthly Depreciation $478.72
Monthly Rent $62.20

Monthly Payment $540.92
Plus local sales tax



License & Registration $397.75
Documentation Fee $80.00
First Payment $584.19
Security Deposit $4,200.00

Drive Off $5,268.34

Yes its the acquisition fee, but the dealer is making extra profit in it. The base fee is $795 and the dealer can mark it up to $995. You should tell them you want the base rates and fees. If the deal is great and your ok with paying the extra, you can just leave it.
Judging by your username you'll want to negotiate that down.

[cheapa55]

Originally Posted by OneRib

Yes its the acquisition fee, but the dealer is making extra profit in it. The base fee is $795 and the dealer can mark it up to $995. You should tell them you want the base rates and fees. If the deal is great and your ok with paying the extra, you can just leave it.
Judging by your username you'll want to negotiate that down.

ROFL!!! Good catch and yes, I will try to negotiate down. haha.

[bimmer_335]

Question:

when I sign lease, which lease deal do I get? One available at the time of placing order or the one available at the time of delivery?

[twincam23]

Thanks OP!

[bimmercar]

Originally Posted by bimmer_335

Question:

when I sign lease, which lease deal do I get? One available at the time of placing order or the one available at the time of delivery?

either. whichever is better deal

but the signed deal is usually only valid for 60days for lease rate lock

[OneRib]

Originally Posted by bimmer_335

Question:

when I sign lease, which lease deal do I get? One available at the time of placing order or the one available at the time of delivery?

bimmercar is correct. 60 days east coast and 90 days west coast

Originally Posted by twincam23

Thanks OP!

You're welcome

Originally Posted by bimmercar

either. whichever is better deal

but the signed deal is usually only valid for 60days for lease rate lock

plus 90 days for the west coast

Also remember it's the days after the last day of the lock period.

Example
60 day lock
Financing locked in 6/2/2015
Lock good until 8/30/2015 not 8/2/2015

It's helpful because you can immediately take advantage of good financing terms without having to worry about waiting until the last few days on the month.

[Quentin]

Thanks OP for this very well written summary!

I have a couple of related questions:
1. Money factor. Why are the leases quoted using the money factor? It is a bit counterintuitive in that you have to take that low number and multiply it by 2400, or 24, depending on decimals, to come up with the interest rate on the lease. Seems more complicated than it needs to be - at least to an average person.
2. Residual value. How close is it to the real price of the car /what you could reasonably sell it for in 3 years when leasing or buying? It depends on several factors, of course, but I wanted to see, if available, some historical chart of the distribution of the car values. In a leasing vs buying decision, it would be easier to buy outright and the sell in 3 years at some price if one knew what you could sell the car for in 3 years. For example, I was just given a residual value if 62% on a 4 series - how safe is it for me to assume that the car can be sold for 62% of msrp 3 years hence? When leasing, this is bmw's risk.
3. Miles driven. The minimum is 10k per year. Leasing is paying for what you use, as was well articulated. If one can't use 10k a year but only 5k then is the decision always to buy the car and then sell it in 3 years for something more than the residual value since the car has fewer miles?

Thanks again!