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BMW 1 Series, Car Buying, Car Leasing, Coupe, Convertible
#70 of 251 Apply Holiday Money to Cap. Cost or Fees?
Dec 26, 2009 (9:01 am)
Hi car_man, kydfx et al,
I am in the process of ordering a 2010 135i Convertible to lease for 36 mos 12-15k miles/yr.
One dealer said they could apply the $1500 holiday money to the costs (Acquisition fee, license, etc.) rather than reducing the capitalized cost. I know that reducing the capitalized cost has been discouraged due to issues if the car is totaled or possibly stolen and not recovered (you don't get the cap cost reduction back?).
Does it make more sense to apply the Holiday money to the up front costs/fee?
Here is one of the quotes I've received - this one applies the Holiday money to the cap cost and there is a corresponding tax on the cap reduction:
15k miles/yr, 36 mos
.00225 Money Factor
27,744.75 Residual Value 59%
44,330 Negotiated price
($500 over invoice - invoice price includes 380 MACO + 180 training as I understand it - Southern California dealer)
1,500.00 Cap Reduction (Holiday money)
42,830.00 Adjusted Cap Cost
131.25 Tax on Cap Reduction 8.75%
3,149.26 Customer Cash Down (Includes 1500 Holiday money as I understand it)
I need to ask how this is derived since I can't get the numbers to add up.
700.00 Security Deposit
577.82 Base monthly rental
50.56 8.75% Sales Tax
628.38 Monthly Payment
978.75 Up front/Acquisition Fee (BMW 775 + 150 markup, Doc fee, California tire fee)
597.00 License Fee
If I apply the Holiday money to costs and fees, the monthly payment goes up to 677.37 but I have less money out of pocket.
I appreciate any feedback you may have.
#71 of 251 Re: Apply Holiday Money to Cap. Cost or Fees? [leeshuck]
by kyfdx@Edmunds HOST
Dec 26, 2009 (9:18 am)
It really doesn't matter where the $1500 is applied, the result is the same..
The whole idea is to walk out with the minimum out-of-pocket.. On my last lease, that was 1st payment plus $114 in state/local licensing fees (no security deposit).
In your case, if it were me, I'd pay 1st payment and security deposit upfront... That will be around $1400.... Add the rest of it up (selling price, acq.fee, license fees), add it to the cap cost, and have them figure the payment on that...
According to your numbers, the $3149 is actually coming out of your pocket at lease signing.. The $1500 was already deducted from the CAP cost, so you would have to come up with that whole amount... That is too much, IMO.
Only paying $1400 upfront will raise your payment by $55-$60 per month, but that's better than putting that mone out there... Or, you can have the dealer do as he proposes... It is much the same... Use the $1500 to pay directly against the $3149, instead of reducing the CAP cost.. That will leave $1600-$1700 for you to pay upfront, instead of the $3149 (increasing the payment, naturally)..
#72 of 251 Re: Apply Holiday Money to Cap. Cost or Fees? [kyfdx]
Dec 26, 2009 (12:59 pm)
Thanks for the speedy reply kydfx.
I could do also do this with no security deposit, but the money factor then goes to .00240
#73 of 251 Re: Apply Holiday Money to Cap. Cost or Fees? [leeshuck]
by kyfdx@Edmunds HOST
Dec 27, 2009 (6:04 pm)
Yeah.. it's a better deal to make the security deposit, rather than pay the increased money factor.
#74 of 251 2010 lease deals
Mar 12, 2010 (7:30 pm)
Any thoughts on BMW's $339-a-month national deal for the 128i (MSRP $35,550 with premium package)? This is a 36 month lease with a $1,500 credit. Attractive monthly payment for a BMW, but a big upfront outlay.
• $339 First months payment
• $2,800 Down payment
• $350 Security Deposit
• $725 Acquisition fee
• $4,214 Cash due at signing
#75 of 251 Could get it even cheaper that that...
Mar 24, 2010 (10:29 pm)
That's the national lease deal with Premium and Auto. I'd do this deal and wait till the 4 cylinder diesel 1-series come in and just have the dealer do some kind of swap.
#76 of 251 Re: Could get it even cheaper that that... [zigster38]
Mar 26, 2010 (10:56 am)
I guess I should add that lease is for 10k miles a year only. If you need more, you will pay extra. On the other hand, you can always negotiate lower than a national lease deal.
#77 of 251 Re: 2010 lease deals [mtena]
May 06, 2010 (12:34 pm)
I was wondering where did you see this deal? (what state), where I am, the deal is very similar, but the payments are 379/month.....was that something you negotiated?
#79 of 251 2011 128 lease quote
Jun 14, 2010 (6:04 pm)
Dear Car_man and kyfdx,
I just got a quote to build-to-order (6 weeks waiting time) lease deal for this model:
2011 128i Coupe
STEPTRONIC Automatic Transmission
Heated Front Seats
Tax rate is %7.75
Dealer quoted for MSRP (which is $36000) and gave me these info: MF is 0.002 and residual is %64 ( $23040) for 10k/yr for 3 year
$440.85/mo with only $2190.41 due at signing. This amount due at signing represents no money down, only first months payment, security deposit, fees and upfront taxes...
I have a 5% off from work for that dealer, which he did not include right now... I will make him include that... I also did not want to put any money down...
What do you think of this deal, what should I do next to lower this? MF of 0.002 is a little bit high I believe, is there any way to lower that? There seems like no other incentive available for this model and there are no 2010's left in the lot unfortunately...