2021 Bmw 740i lease..good deal?

36/10k
$100,745 msrp
$87,745 sale price
residual - 55%
MF -0.00118
$1879.47 Due at signing

Payment = $1194.57(that includes 9% tax on monthly payment)

Was looking for a 2020 that has all the money on it but can’t seem the find the combo im looking for …

Any incentives you can use or MSDs? I don’t know about that discount as 2021 are very new and not enough data points.

I can use USAA $500 lease cash that would bring it down about $15. Talked to them about MSD’s. They said the reduction wasn’t that significant to put in $7k.

Is the discount on line for BMW ?

I’d recommend you do the math for yourself here.

Dealers very rarely deal with MSDs and those that do, very rarely seem to grasp the value. They see the monthly reduction due to $7k in MSDs vs $7k in cap cost reduction and say “you get so much more off per month with a cap cost reduction!”, totally ignoring that whole part about getting the $7k back on the MSDs.

In this case, MSDs will save you about $2000 over the life of the lease.

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MSD’s will reduce your payment around $55/mo. resulting in a $2k savings over the term of the lease. You need to understand the math yourself, do not rely on a dealer’s often ill-informed opinion when it comes to MSDs.

At the very least you need to get the dealer to re-run the numbers with July programs as the MF dropped.

Overall I’d say the total deal is meh, you’re getting a paltry 13% total discount including incentives and have almost a $1200 payment on a slow-ish selling $100k 6-cylinder 7 series.

Personally I wouldn’t be in any hurry on this, let the 2021’s get out there and let BMW put some incentive $$ on them. Most of the brokers have 2020’s at 18-19% before incentives, huge difference.

This is not a good deal. BMW 740’s are very cheap, you can buy a 1 year old use one for in the high 40’s, low 50’s.

I don’t a used one. I want a brand new one. Also regarding the MSD’s I did the math with dealer. It made me about 3.5% on my money. I have better places to put 7k than 3.5%

Are you sure the MF’s dropped ?? We were waiting to see if a new program was coming out for July on the 21.

Yes I agree … the 2020 has great money on it I have seen as much as 20%. Just don’t want the color combos.

You might want to check that math

I confirmed on the BMW website using back-calculation from the specials page that it was 0.00099 after seeing a broker mention this.

Check edmunds for “real” confirmation but I believe my math is correct.

Let’s go through this math again

7 MSDs results in a .00035 MF reduction on a BMW.

RV is ~$55k. Cap cost is roughly $90k.

Annual saving due to MSDs is 12 * MF change * (cap cost + RV) = 12 * .00035 * (55000 + 90000) = $609

Annual ROI = annual savings over investment = 609/7000 = 8.7%

Add in the capital gains tax savings and to match that, you’d need an investment making at least 10% guaranteed to give you an equivalent cash flow.

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leasehackr commandment #6: Thou shall not question @mllcb42 's advice.

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Lol - well when you put it that way I will have to look at it again. Also that is a major change in money factor.

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Thou shall not mention the 1% rule.

Thou shall not put 10k cap cost reduction.

Thou shall roast vhooloo at any opportunity.

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Did the residuals go down?

I promise you, the dealer isn’t trying to save you money. They’re trying to sell you a car.

Hershey sweet - I live in Hershey pa as well. Small world !!

I think with MSDs, the dealers just aren’t well versed in the details. They’re used to strategies that minimize monthly payments rather than minimize total costs, as that’s what sells to the vast majority of people. Also part of why the dealer is never the place to go to ask what a car should cost.

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That’s definitely a possibility, but a few gems are versed, and coming into the dealer’s doors educated is 100% better than the other options.