Leasing help

[M135]

I have my order in on the 135i and am hopefully 5th week (haven't checked lately and my order number is at home). I'm number 3 in line at my local dealer and they are the largest dealer in the midwest, so their allotment is no joke. I'd be a bit more excited about it, but I was talking to my sales specialist about a monthly payment just for guesses. He used a 6% rate and calculated out a payment of $800 a month to own the car.

My 135i will be my "fun car" so it won't be driven daily and thus a lease will suffice for me (that, and I've had 3 cars in the past 4 years--meaning I love new cars). For the $800 a month it would cost me to own a $40K car I could pick up an M5 at the dealership for a lease of $912 or something a month.

I'm not here to hash out why a lease is better/worse or why the M5 lease even matters...I just want to know lease numbers. I've been using figurative numbers on the 335i at $52K to get around $600 a month...how in the world could my $40K 135i run me any more than that?

Anyone else feeling my woes as well? Anyone have ideas on what we are looking at (worst case scenario)? I'm only looking to put down the minimums required for the lease which is the 1st payment, and the other little BS. My tax rate is 6% as well.

[Khobin~]

Lease payments could be higher, or around the same, due to the interest rates. The 135 is a new model, so no incentives yet, aka bank rates (around here that's 8-8.50%), a 335 has been out for a while, and here at least rates are being offered at 4.9% on them.

[NJKSC27]

this is my major concern too

do this....
figure a 60% residual over 3 years, 12K/ year, .003 money factor (multiply .003 by 2400 to get the total interest rate), calculate all your fees and tax and that should be a nice guess

Now....hopefully BMW isn't stupid and rates and residuals are not too bad since these cars are suppose to be targeted at a younger audience

I am getting my self mentally ready to hear 600 a month number!

if the rates are horrible, look for 575+ for payements, if the rates are competitive then i would assume maybe 475-525

Let's cross our fingers

[M135]

No offense to those super excited about the 1 (as I was until this point) but I have a hard time justifying the cost for it being so "special" when production isn't limited and doesn't really bring anything super to the table. It is a more nimble 335i, and pricing shouldn't be sooo off the wall that it takes it out of the price point and field it is trying to play in.

This isn't the new M3, why do I get the feeling more and more that it is being considered that way?

[NJKSC27]

Originally Posted by M135

No offense to those super excited about the 1 (as I was until this point) but I have a hard time justifying the cost for it being so "special" when production isn't limited and doesn't really bring anything super to the table. It is a more nimble 335i, and pricing shouldn't be sooo off the wall that it takes it out of the price point and field it is trying to play in.

This isn't the new M3, why do I get the feeling more and more that it is being considered that way?

well its a "new" model to the US markets. So you are paying for the exclusiveness more then anything

[TunedM2C]

I agree this isn't an M car. Futhermore, it's BMW's entry level car. I understand it's their newest offering but I can't see them screwing with the rates that much seeing where our wonderful economy is at and heading. For shits-n-giggles I inquired about lease figures from Leasecompare. It will be interesting to see what they come up with.

[Brandon26pdx]

Jeez, for $800/month you could finance a $42k car for 60 months at 5.49%

I'm shooting for a $570-575 72 month payment...

[M135]

Sorry guys, I jacked my own thread and started down the wrong path. I'm venting just because I'm a tad bit irritated about this right now. I'm looking to get some factual lease estimates and ideas of others with my issue.

On topic: Tuned1 please post your numbers back here when you get them. I've conteplated shopping the lease out to other places to see if it gets better but just haven't had time.

[NJKSC27]

Originally Posted by M135

Sorry guys, I jacked my own thread and started down the wrong path. I'm venting just because I'm a tad bit irritated about this right now. I'm looking to get some factual lease estimates and ideas of others with my issue.

On topic: Tuned1 please post your numbers back here when you get them. I've conteplated shopping the lease out to other places to see if it gets better but just haven't had time.

the problem is that we wont see the lease packages untill BMW releases it. and we really have nothing to compare a lease package to. Juts look at this way...if you are getting of the first ones ( ie. first 6-9 months) then the lease is going to be high. And going somewhere else wont help anything

[imported_SteveG]

I have leased many cars including 3 BMWs. Assuming that the selling price for the first few months is closer to MSRP than invoice, assuming that the MFs and residuals are similar to the current 3 coupe, on a 42K car (reasonably loaded negotiated price) you would be looking at about $500 - $550 plus your taxes depending on your negotiating skills and understanding of the lease process.

This is with nothing down except security, first payment, tags/title and acq fee.

Remember in MD, TX, IL, VA, WV your taxes are levied on 100% of the negotiated price, not the monthly payment.

[Brandon26pdx]

Originally Posted by M135

Sorry guys, I jacked my own thread and started down the wrong path. I'm venting just because I'm a tad bit irritated about this right now. I'm looking to get some factual lease estimates and ideas of others with my issue.

On topic: Tuned1 please post your numbers back here when you get them. I've conteplated shopping the lease out to other places to see if it gets better but just haven't had time.

Yeah, nobody knows where BMW financial is going to set the lease residuals and whatnot, so your question cant be answered now. The dude at the dealer was pulling #'s out of his tookis.

[colonel1961]

Originally Posted by M135

Sorry guys, I jacked my own thread and started down the wrong path. I'm venting just because I'm a tad bit irritated about this right now. I'm looking to get some factual lease estimates and ideas of others with my issue.

On topic: Tuned1 please post your numbers back here when you get them. I've conteplated shopping the lease out to other places to see if it gets better but just haven't had time.

I have the lease formula that the BMW dealer (or all dealers) uses to determine the final number. I need five values from you: adjusted cap cost, LEV (residual percentage), term of lease, money factor, and monthly use tax and it will pop the number right out...

[john970]

I totally agree and just asked for my deposit back when I ran the numbers. They are likely going to give me 7.2%, with excellent credit, on a lease. Add the full MSRP on top of this, and you end up paying something like $4,800 extra over the lease (~$115/mo) term compared with what you should get (1/2 the interest, $1000 or so off of msrp). When the 335i came out, the money factor worked out to about 7.2% and now I believe its somewhere in the mid 3% area.

I expect the 1 to be significantly more expensive to lease than the 3 this year, and probably won't be cheaper until next model year. My dealer has a new M Coupe that I can get for slightly less than what I expect the 1 to come in at.

This has been a learning process for me. If I bought the car this year I would be steaming looking at a new 1er owner next spring with a $115 lower payment than me just because he waited a year.

I considered buying (and suppose I still am) but I can only get about 6.5%, and will probably sell the car in a few years which is something I would rather not deal with.

Originally Posted by M135

I have my order in on the 135i and am hopefully 5th week (haven't checked lately and my order number is at home). I'm number 3 in line at my local dealer and they are the largest dealer in the midwest, so their allotment is no joke. I'd be a bit more excited about it, but I was talking to my sales specialist about a monthly payment just for guesses. He used a 6% rate and calculated out a payment of $800 a month to own the car.

My 135i will be my "fun car" so it won't be driven daily and thus a lease will suffice for me (that, and I've had 3 cars in the past 4 years--meaning I love new cars). For the $800 a month it would cost me to own a $40K car I could pick up an M5 at the dealership for a lease of $912 or something a month.

I'm not here to hash out why a lease is better/worse or why the M5 lease even matters...I just want to know lease numbers. I've been using figurative numbers on the 335i at $52K to get around $600 a month...how in the world could my $40K 135i run me any more than that?

Anyone else feeling my woes as well? Anyone have ideas on what we are looking at (worst case scenario)? I'm only looking to put down the minimums required for the lease which is the 1st payment, and the other little BS. My tax rate is 6% as well.

[NJKSC27]

Originally Posted by colonel1961

I have the lease formula that the BMW dealer (or all dealers) uses to determine the final number. I need five values from you: adjusted cap cost, LEV (residual percentage), term of lease, money factor, and monthly use tax and it will pop the number right out...

adjusted cap cost is basically the selling price, use 60% over 36 months, .003 bad money factor, ......monthly use tax?????

[M135]

colonel1961 using NJK's numbers there, where do you think it would be? Selling price is $43K (worst case) and the tax rate here is 6%

[imported_SteveG]

Boy it sounds like you lot need to learn to calculate a lease.

If you walk in that dealership and don't know how to do it on a napkin, you are screwed!

[ChrisK]

Originally Posted by SteveG

Boy it sounds like you lot need to learn to calculate a lease.

If you walk in that dealership and don't know how to do it on a napkin, you are screwed!

That's a bold statement my friend. The whole point of these forums is so we can exchange information.

[NJKSC27]

Originally Posted by SteveG

Boy it sounds like you lot need to learn to calculate a lease.

If you walk in that dealership and don't know how to do it on a napkin, you are screwed!

and how did this post add to the help the OP????? :iono:

[imported_SteveG]

See post #10.

I stand by my statement. If you are asking others in an internet forum what the payment should be or 'help me calculate this lease' you clearly have no idea.

Dealers love this kind of customer because they will wow you with the car and then stick you in the finance manager's office. Once he gets the slightest hint that you do not know what you are talking about (re:leasing), you will be nailed and pay more than you would had you learned your stuff.

You have to know the lingo, understand the calculation and be able to do it at the dealership and fully understand how your state, county and sometimes even town/city applies taxes to your lease.

That's the best advice I can give you! Learn it. The 'Ask The Dealer' section at Bimmerfest has everything you need to know (except rates on the 1 series lol).

[NJKSC27]

ok we understand that, but no need to jump all over him about it...not everyone knows how to breakdown a complex lease, actually hardly anyone unless your in finance. Secondly no need to direct us to other forums.... just my two cents...

[Fast Kiwi]

Further more^^ Dealers dont hunt down thier prey to drain them of every penny they have,.. the majority of my customers dont understand how a lease works.. if i screw them now.. i cant imagine they would ever come back.. and thats the only way you get any where doing what i do..

[NJKSC27]

Originally Posted by Fast kiwi

Further more^^ Dealers dont hunt down thier prey to drain them of every penny they have,.. the majority of my customers dont understand how a lease works.. if i screw them now.. i cant imagine they would ever come back.. and thats the only way you get any where doing what i do..

sorry for being off topic, but is that where you work, in your avatar?