Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Prices Paid: Buying & Leasing Experiences BMW 3-Series Prices Paid and Buying Experience
10316 messages, Last post on Dec 05, 2009 at 12:11 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
|
Replying to: realcrapper (Apr 01, 2007 7:52 am) Thanks very much for taking the time to review my lease details! And thanks for the info on the tax refund.. I really appreciate your help.. |
|
|
Hi all: I am helping a friend lease a 07 328 coupe with the premium package in metalic silver. I have learned about multiple security deposits and will do that. I live in Los Angeles. I am looking for a 2 year lease. ANy thoughts or suggestions.
|
|
Does anyone know what credit score is required to get a decent lease deal? And if you have below average credit should you even bother applying for a lease? Also is the 335i Coupe lease deal on the bmwusa site good? It's 3500 out of pocket, 499 a month, base plus auto transmission....thank you.
|
|
|
|
|
Replying to: poorprof (Apr 01, 2007 5:12 pm) |
|
|
|
|
Replying to: david22 (Apr 01, 2007 7:16 pm) |
|
|
|
|
Has anyone used www.southbankleasing.com? Here is the package that I wanted on the 2007 335i coupe: Sparkling Graphite Exterior with Red Dakota Leather interior Premium Package Sport Package Steptronic w/ paddle shifters DVD/Navigation And the lease terms were 36 months, $0 down, 15K miles/year. I was given a monthly payment of $593 inclusive of sales tax with a walk away tag of around $1500. Has anyone used this company before? Is this deal legit or am I wasting my time?
|
|
|
Replying to: delta737h (Apr 01, 2007 10:46 am) Thank you for your reply. I will be happy to get the info from the dealership. I was not able to send you a private e-mail to get the 1 page proposal - I think this service is not working at this time. Please enlighten me again on how to solve this technical challenge. Thank you, Izabela
|
|
|
Replying to: bmwnb (Apr 01, 2007 10:22 pm) Unless you wish to capitalize the first monthly payment or capitalize the sales tax, there really is no technical challenge. In other words, the real challenge surfaces when one enters into a sign and drive lease where no money is due at lease signing. The calculations aren't particularly difficult; however, they can be tricky. So tricky, in fact, that many lease software developers and dealerships often make calculation errors. My paper addresses this issue. Most people, however, usually make the first payment, pay doc fees, and, if appropriate, pay sales tax and a security deposit when the lease is originated. In this case, the above is a non-issue and structuring the lease and performing all required calculations is very easy to do. Because this seems to be the most popular option, let's consider the following hypothetical example... 1st. Collect all relevant data. MSRP = 45,000.00 S = Sell price = 42,000.00 A = Acquisition Fee = 600.00 M = Money Factor = 0.0010 N = Term = 36 months R = Residual = 27,000 (i.e., 60% x 45,000) 60% is arbitrary P = Monthly Lease Payment excluding tax P* = Monthly Lease Payment including tax t = Sales tax Rate = 6.0% Down Payment/Trade?: NO GAP Coverage Provided?: YES Annual Mileage: 15K Disposition Fee?: NO Excess Mileage Charge: 0.15 per mile Sales Tax: Computed on the payment streams Capitalized Amounts: Acquisition Fee Only 2nd. Perform all relevant calculations. Basic Money Factor Formula: P = M(S+A+R)+(S+A-R)/N P = 0.0010(42000+600+27000)+(42000+600-27000)/36 P = 502.93 Tax Formula: P* = P(1+t) P* = 502.93(1.06) P* = 533.11 3rd. Create a one page lease proposal. BMW xxxi Base MSRP 44,500.00 Destination Charge 500.00 MSRP 45,000.00 Sell Price 42,000.00 Acquisition Fee 600.00 Gross Capitalized Cost 42,600.00 Capitalized Cost Reduction 0.00 Adjusted Capitalized Cost 42,600.00 Residual 27,000.00 Money Factor 0.0010 Term (months) 36 Monthly Lease Payment excluding tax 502.93 Monthly Lease Payment including tax 533.11 Charges Payable at Lease Origination 1st Payment 533.11 Security Deposit 550.00 Document Fee 50.00 Document Fee Tax 3.00 License, Title, Registration Fee 60.00 Total Due at Lease Signing 1,196.11 GAP Coverage: YES Annual Mileage: 15K Disposition Fee: NONE Excess Mileage Charge: 0.15 per mile _________________________________________________________ Some Comments... (1) I believe all BMW lease contracts provide GAP coverage. However, in the event that I'm wrong (which happens occasionally), you should check with your insurance carrier. A GAP Rider should cost no more than 0.1% x MSRP as a rule of thumb or; in this example, 0.1% x 45000 = $45 annually. (2) Creating a professional looking lease proposal is very important. It's purpose is to save time, money, and eliminate aggravation. It should also send the message that you know lots about leasing so please, Mr. Dealer, don’t play any games because I don't have the time and neither do you. (3) Once your proposal is complete, simply FAX or email it to the dealer. It’s best to limit the proposal to just one page so the dealer doesn’t have to flip through bunches of paper and refer to items on page 1 when reviewing stuff on page 4. (4) Call the dealer soon after you’ve FAXED or emailed your proposal and be sure to review it with them. Should they ask silly questions such as how you arrived at the selling price, politely tell them that it is irrelevant (this is where I need to improve). The least said the better. What is relevant is whether or not they can do the deal. BE IN CONTROL AND BE FIRM WITH THE DEALER. THE ONLY RESPONSE YOU WANT TO HEAR IS EITHER: (A) YES, WE CAN DO THE DEAL OR (B) NO, WE CAN’T DO THE DEAL. If they can do the deal per the proposal, make sure that they are in complete agreement with every last bit of detail described. You want to make it virtually impossible for them to claim that they made a mistake once you’ve arrived at the dealership. If they say that they made an error once you’ve arrived, they’re going to look awfully silly. Remind them that the purpose of this exercise is to prevent mistakes, save time, and eliminate aggravation for all concerned. Unless they can remedy their mistake quickly, tell them that you’ll be taking your business elsewhere and thank them for wasting their time as well as yours. They’ll try to get away with as much as possible if you let them. Remember that you’re the expert and in control of the deal. If you still want my paper, here is my email: diffeq  zoominternet.net Hope that this has been helpful. John
|
|
|
|
|
Can anybody tell me why it seems that overwhelming majority people here lease BMWs instead of buying? Any drawbacks for buying? What's the advantages for leasing? I am in the market for a BMW, and can go either way. Just don't know which way? Thanks. |
|
|
|
|
Replying to: charlieliu (Apr 02, 2007 8:55 am) Your going to get a world of different opinions on this question, but here's mine. BMW's make excellent lease candidates because of their very high residual rates and, depending on the model, very low money factors. These combine to make your monthly payments very low. For me, I'd much rather lease than buy because I'm not very disciplined about being satisfied with a car for more than 3 years. New technology comes out (e.g. real time traffic, bluetooth) and I start to get itchy for a new car. Leasing allows me to keep my payments low and get a brand new car every 2-3 years. Hope this is helpful. |
|
You are here:
Forums
Prices Paid: Buying & Leasing Experiences BMW 3-Series Prices Paid and Buying Experience
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
2010 BMW 3 Series
Browse by Board
Browse by Topic
Today's Chats
