2017 BMW i3 REX lease 36mo / 10k mi/ $353mo

Ask the Hackrs
1

Hi Guys, Can you please help me look this quote for me. It is NOT matching my calculations using the calculator. Where are they marking up the price?

Here is the breakdown of my own calculation for the car:

2017 BMW i3 94 Ah w/ Range Extender
Exterior Color : Capparis White W/BMW I Frozen Blue Accent
Interior Color : DEKA GRAY/BMW I BLUE HIGHLIGHT
Parking Assistance Package

49445 MSRP

43325 SELL PRICE

7500 FEDERAL REBATE (TAXED)

0 DOWN PAYMENT
925 ACQUISITION FEE (PAID UPFRONT)

10000 MILES PER YEAR
58% RESIDUAL
36 MONTHS
.00134 MONEY FACTOR (APR 3.22%)
7 MSD
.00085 MONEY FACTOR AFTER MSD (APR 2.04%)

80 DOCUMENT FEE
400 LICENSE/REGISTRATION FEE
9% SALES TAX

253 MONTHLY PAYMENT (WITHOUT TAX)
276 MONTHLY PAYMENT (WITH TAX)

4547 DRIVE OFF

  • FIRST MONTH PAYMENT OF (INCLD TAX) 276
  • TOTAL MSD PAYMENT 2100
  • DOCUMENT AND LICENSE/REGISTRATION FEES 480
  • TAX ON CAP COST REDUCTION AND FEES 765
  • ACQUISITION FEE 925

350 DISPOSITION FEE TO BE PAID ON VEHICLE RETURN

12062 TOTAL LEASE COST

2

The dealership numbers look terrible, if I’m interpreting them correctly. $43,325 is not the ‘selling’ price, it is the capitalized lease cost. It looks to me like they are trying to charge you MSRP? The capitalized cost is what you owe after the down payment and the fed tax rebate. You should be negotiating a discount off of msrp of around 10%. Also, it looks to me like they are trying to get you to do a $3,000 down payment. If you were truly paying only $43.3k for the car, then subtract the fed rebate and the down payment, the adjusted cap cost should be $43.3 - 7.5 - 3 = $32.8k. With the residual of $28.7k, your monthly payment on the depreciation would only be $5.1k/36 = $142/month. Add in the interest (say $53/month), plus a bit for capitalized fees and you’d be around $200/month.

For comparison, I just leased a $51,500 '17 i3 for $359/month, with only a few fees and MSD’s up front. Plus, the cust acquisition charge was rolled into my lease (equal to $25/month), so if you pay that upfront, you need to back that out of my rate. In my state, the rebate isn’t taxed, and I only pay sales tax on the lease amount, so that will make a direct comparison not completely accurate, but still your dealership’s work sheet looks bad.

The general rule/advice is NOT to put any money down on the car, since if the car is stolen or totaled you don’t get this money back.

I think the dealership is trying to confuse you; their numbers don’t appear (to me) to in any way reflect the deal you think you’ve been offered.

1 Like
3

Thank you so much! Now I see what they’ve been doing… It might not be intentional, cause they said they had a system glitch the other day. I will let them know about this and post an update as soon as I get another quote from them.

4

Maybe, but don’t be so naive - their glitch did not make mistake in your favor :slight_smile:

5

Yeah they got back to me and it seems they are still playing tricks on me.
I told them not going to take the car from them, i simply don’t trust them anymore at this point.

I don’t know how they got security deposit to $2450: 7 MSD based on the calculator should be $2100, even 8 MSD (if real) is $2400.

This quote also doesn’t show the residuals and money factor.

6

That looks a lot more reasonable. FYI, the MSD’s run in $50 increments, and ‘round’ up. So, your $306/mo lease implies a $350/MSD price, thus their $2450 number is correct.

You need to get them to lay out all of the numbers, in detail. On a quick glance, the numbers underlying the $306/month price seems reasonable, if that includes sales tax on your lease payments or the total transaction (it appears they charge you sales tax on the fed refund up front, since there are $682 of taxes due at signing, which is about your 9% of $7500).

Certainly, I would say the discount of $6120 is pretty good on the MSRP of $49,445.

The original work sheet only showed estimated sales taxes of $1,593, versus the new one of $3,909 – what’s up with that? Also, the new work sheet omits the customer acquisition charge of $925, but that is a BMW FS charge, so you’re going to pay it.

The residual is set by BMW FS, so they can’t mess around with that. They can mark up the MF, but if they offered you the base .00134 before the MSD’s on the first deal, I don’t know that they would play with that. Still, you need to get them to confirm all the numbers.

Some of their fees seem a bit high, you might try to negotiate those down. Particularly the tag/registration fee. Maybe the doc fee.

Here’s how I see it:

depreciation: $43,325 + $925 acq fee - $7500 fed rebate - $28,678 residual = $8072 = $224/mo
interest charge: .00085 x (44,250 - 7500+ 28,678) = $56/mo
Sales tax: 9% x ($224 + 56) = $25

total per month: $305

1 Like
7

I missed the original deal last week as the car was taken by someone else.

However this is an INSANE quote they are giving me now for a base model i3 BEV MSRP 44595. Something is seriously wrong.

MF after 7MSD is .00105 (.00085 + .00020) due to high demand they said.
Residual is 61% for 30mo/10k miles lease.

8

Here’s my numbers using the leasebacks calculator

9

I’m currently in the process of negotiating a 2017 i3 REx around similar MSRP & was curious on what your selling price / % off of MSRP was.

I just started the process so the best I have is 7.8% off of a ~$52,000 MSRP.

What should I be aiming for?

10

Here’s one of the offer I got from BMW Roseville. Although I ended up not getting one. Use truecar.com and configure to your exact build. It’ll show you MSRP, invoice, and bell curves of what people paid. I usually aim 11-12% and been getting about 9-10% off MSRP

11

I think a target of 11 - 12% would be appropriate. Deals really seem to be all over the map, but I don’t think a discount smaller than 10% is a good deal. Some people seem to be doing much better, whether that is skill, luck, timing, location or whatever is difficult to say.

Of course, you need to watch fees and, most importantly, the Money Factor that the dealer is trying to charge. Definitely do the MSD’s.

I don’t believe the i3 can be selling that quickly, with the price of gasoline and the US fixation on SUV’s. Car sales are down, whereas trucks and SUV’s are booming. Plus, the Bolt has to negatively affect the sales of the i3, I should think. Moreover, rumors are that the i3 is going to get a facelift and greater range for '18. All of which is going to put pressure on this year’s i3. I think you can be aggressive in negotiating. There’s always another car coming off the production line, and dealers are going to want to move these (imo).

Finally, make sure you investigate things like a corporate/fleet discount, the USAA discount, etc.

12

You might find a good deal for one on swapalease.