[SteveH]

All,
Its time to bid my 328xi farewell, and move into a 335i. I was seriously considering financing; but right now leasing is the way to go for me.

Local dealer has a car in inventory:
Sapphire Black
Anthracite Bamboo
Black Dakota
M Sport
Prem
Cold Weather
HK/Ipod/Navi

MSRP: $55920
Offer of the day: $53250

Lease Term: 27mo @ 10k/yr
Residual: 72%
Money Factor: .001208
$552/mo @ $7100 down

I don't want to put $7100 down - that's for sure....So what I need help with is figuring out how come my numbers and theirs' don't match
Because when I run this lease through some calculators, I cannot reproduce their numbers (go figure right ?).
Obviously I didn't see the workbook yet or anything like that...Just going dealer to dealer to find the best deal.

[manofb]

I think you can do way better than 2k under MSRP. Way better. And what does that 7100 comprise of? Max MSDs?

Doesn't look so good....

[plokij]

Originally Posted by SteveH

Residual: 72%
Money Factor: .001208

in their calculation, either the residual is LOWER or the Money Factor is HIGHER. probably a little of both.

try raising the interest rate and lowering the residual % and you will hit their quote.

from my experience, since the lease incentive quotes the residual of an example car, it's usually the MF that they screw with. are you sure they told you the MF up front? that figure is 100% up to the dealership. they can give you whatever they want.

[SteveH]

Agree 100% that they screwed with the MF....While they 'told' me a number; being as I never got to the point of seeing the workbook - who knows what they came up with.
That said, Im with manob in that the $2k under isn't such a hot deal....That's why I walked away from it to begin with. I'll be reaching out to a couple of other dealers today to see what I can come up with.

Thanks !

[pnutty]

Have you thought about going a CPO route on a 335? You can easily own a car with that downpayment & monthly

[SteveH]

Not really. To be honest I was planning on financing - with the high lease residuals out there now (and some other factors) - looks like leasing is making the most sense....That is if I can find a good deal. I'd like to be somewhere in the $5k down, $525/mo range.

[rpiopio]

Make sure your calculations match where they apply the $7,100. Some of that will go to the first month payment + Tax + Fees. For example, if I said I want to make a down payment of $1000. That can either mean $1000 total out of Pocket, or $1000 Down + $525 Taxes and Fees etc. so $1,500 out of Pocket.

If your calculator doesn't factor the interpretation in correctly, your calcs won't match. Good luck.

[plokij]

well, how much do you want this car? is it just convenient because a current lease is expiring, or will it meet your needs? is it practical?

i ask this because a lot of people lease a car with the mindset that it doesn't really matter whether or not the car is practical or will meet their needs because 27-36 months goes by fast and then you turn the car back in.

but if you really wouldn't mind driving this car for the next 4 years, and you are interested in keeping your monthlies down, then consider the BMW Select option, with the intent on trading the car back in after 4 years.

with 5000 down, you would most likely be around 600/mo over 5 years (but with the intent of trading in after 4) with none of the hassles of leasing. remember that with finance you lock into the interest rate of 2.9% and the good majority of every payment from day 1 goes to the principal. when you hit the break even point you can get rid of it just like a regularly financed car.

obviously, you will pay more tax. and you have to keep the car longer than 27 months.

just food for thought. i happen to do the Select program with the intent of driving my car until the wheels fall off. i like the flexibility of having a low monthly payment with the option of overpaying to whittle down the balloon. plus, the car is mine to worry about wear & tear and such. if i grow tired of the car after 5 years, i trade it in.

the dealership told me the Select plan with a trade in after 4 years was by far their most popular plan.

[SteveH]

I hear ya on the BMW Select; but right now its not for me. I was planning on financing as I said earlier; but the situation changed and now leasing is the most attractive (mainly due to the 72% res on the current 3-series).