2017 BMW 4 Series 430i Gran Coupe (Los Angeles) BAD LEASE HELP

Ask the Hackrs
1

My friend just signed what I think is a TERRIBLE lease last night 5/25 -

Desperately need your advice and if I should try and get him out of it:

Los Angeles (Norwalk is where he got the lease his home zip if 91325 Northridge)

2017 BMW 4 Series 430i Gran Coupe (4 Door Sedan) - NEW
MSRP: $50,090 - Per Dealer, $49,545 per Edmund

Options Included:
Mineral White Metallic $700
Driver Assistance Package $950
Wireless Charging $500
Apple CarPlay Compatibility $300
Navigation System $1,950
Premium Package $2,200

Edmund Price Analysis
Fair Price $47,173
Good Price $45,559
Great Price $44,636

He put $3,000 down (ARG!)

Capitalization Cost: $47,590.00 ($2,500 off of MSRP) *** I feel he should have done way better on the selling price
Acquisition/Bank Fee: $925
Total Cap: $48,595
Cap Reduction: $4,115.38
Net Cap: $44,479.62
Total Depreciation: $30,554.90 (appears to be 61% RV - is this right?)

Monthly Depreciation: $386.80
Monthly Rental (Interest): $135.06
*** They used .00180 for the MF - S/B .00150 right?
($44,479.62 + $30,554.90 = $75,034.52 x .00180 = $135.06)
Monthly Sales Tax: $45.66

Monthly Payment: $386.80 + $135.06 + $45.66 = $567.52

Other Upfront:
Tax on Credit: $360.10
DMV Fees: $450.00
California Tire Tax: $7.00
Advance Payments: $567.52

Total Drive Off ($3,000 Cash Down) = $5,500.00

Miles Per Year: 10,000

They THEN talked him into some kind of additional BMW Service Package that brought the monthly payment up to $676/month

I’m trying to get a copy of the paperwork too see if we can get him OUT of this!

Questions:

It looks like there’s a GREAT BMW Memorial Day Lease offer going on right now to compare with through 5/31:

https://www.bmwusa.com/special-offers/lease.2017-430i-Gran-Coupe.socalbmw.html

http://www.crevierbmw.com/specials-bmw-lease-2017-bmw-430gc-lease-special-dealer-10447-sid-76294.html

YOUR ADVICE ON THIS DEAL:

  1. Realistic/Reasonable Selling Price: $45,559? and still ask for the $2,500 incentive = $43,059? (any other deal incentives/reductions we should ask for?)
  2. RV at 61% is correct for this vehicle right? MF should be .00150 (is that correct)?
  3. We should make this ZERO down right? Should we use 7 Multiple Security Deposits (MSDs) instead of a down to reduce the MF? Whats would be the MSD costs and how much MF reduction would there be (I’ve read 7 x .00007 = .00049 max reduction?) Good Plan?
  4. BMW Ultimate Care is included for 3 years/36,000 Miles right? It doesn’t look like Ultimate Car+ is a good investment as from what I’ve read the wear and tear items it adds (i.e. brakes, wiper blades) wouldn’t likely be needed in the first 36 months anyway - also the Ultimate Care+ is a $600 one time to add - so how did that add $100+/month to the lease payment?!

DESPERATE FOR YOUR HELP (this is not my area of expertise - many, many thanks!!)

2

CA has no cooling period, so not sure what you can do. You can beg the salesperson/dealer, but they are not obliged to undo the deal.

I know you want to help, but your friend should have done his own homework. Let him live and learn.

3

Some comments regarding the rest of your post.

  • Base MF is .0015, but the dealer can mark it up by .004
  • RV can’t be changed by the dealer, so assume it’s correct.
  • BMWFS stopped accepting MSDs to reduce the MF.
4

Gotcha Jon - so appreciate you hitting me back - assuming by some miracle there’s a cooling off option in his lease agreement (hope to review it soon) can I ask you based on this info what a GOOD lease would have looked like for this vehicle (so we know how bad this situation is).

Many, many thanks!

5

Nothing he can do unless they brought the msrp up via fraud

6

Gotcha Warbeast - as I understand it - the dealer is a “friend” of his brother - so we may be able to leverage that relationship to get him out of this. Can I ask you based on this info what a GOOD lease would have looked like for this vehicle (so we know how bad this situation is).

7

BMW is not going to put a cooling off period in the lease, the car is his. A rough indicator of a good deal is 1% msrp monthly with nothing down, so ~$500 a month. Many have done much better with BMW’s (and especially demo’s) in the past, but their programs are not great right now. The car is his, best thing you can do right now is tell you buddy to enjoy the car. It’s just going to piss him off every time he gets in it if you tell him. Just make sure he comes to you before he gets another one in 3 years.

8

If the dealer really was a “friend,” they wouldn’t have hosed him so bad to begin with. :joy: Anyhow, good luck and let us know the outcome.

9

Oh man, this is totally McKenna BMW. What a horrible dealership to work with. Crevier BMW has 430i Gran Coupe M package white in red for $398 a month.

10

when you guys say 1% of MSRP with nothing down, is that truly driving away paying nothing? Or still paying TTL and fees to pick up the car?

11

It’s a rule made up on the internet. It can mean anything to anyone.

12

Btw, a Gran coupe will not fit under this “rule”, not in today’s BMW leasing paradigm. Obv talking about brand new, not demo, cars.

13

It’s strange to me that people like your friend exist. I feel like the dealer could have sold him a fancy dealership pen and squeaky toy for $100, too. Missed opportunity.

14

OK this just keeps getting WORSE the more I read it.

He was charged $1,340 for a “maintenance agreement” - this appears to be the second level of the BMW Maintenance - Ultimate Care+ but if I’m reading the BMW website properly this should have been $600 for 3 years and they charged him $1,340 which is for FOUR YEARS (a year OUTSIDE his lease agreement). They gave him NO DOCUMENTATION about what this BMW Maintenance is or what it covers.

They also charged him $1,875.00 for “BMW Lease Protection” (they gave him NO DOCUMENTATION for what this covers). From what I’ve read on the Internet I “think” this it’s supposed to provide up to $5,000 protection from excessive wear and tear (tires, dents, cracked headlights) - but again there is very little info out there on this.

  1. Can anyone confirm that he got screwed on the Ultimate Care+ charge (that it SHOULD have been $600 for 3 years rather than $1,340 for 4 years)

  2. Can anyone confirm what the charge should be for the BMW Lease Protection for 2017 430i MSRP $50,090 (again they charged him a whopping $1,875) and exactly what it covers?

I’m just SICK about this…

Many thanks.

15

take it to a lemon law lawyer

very little anyone can do to help your friend honestly

16

First of all this “friend” of yours is the biggest moronic loser to ever negotiate a lease and deserves an L tattooed permanently on his forehead.

Now that we got this out of the way let us focus on remedies. He can go back and politely tear up the warranties and extended care and get his money back. Those are refundable.

1 Like
17

Dddddaaaaaaaauummmmmmmmmm but don’t worry lots of suckers out there I don’t get how people get fixated on one dealership

18

Like @vhooloo said - cancel all that extra crap. They won’t change payments, but will refund by check.

19

There is no cooling off but the deal is not a deal until the bank approves. So if you by miracle convince the dealer to pull the paperwork(unlikely) or even freeze your credit ( so bank cannot verify your info) this may help. Sometimes people have been able to get some extra discounts. BUt again uphill battle.

The extras can be canceled no worries at all

20

Did he get delivery of the car? There might be a chance there. But like the experts said, cancel the extras and enjoy it. Leasson learned.