Hi Everyone! Ive been reading posts on LH(awesome site) for months and have decided to continue the leasing with BMW. Please review my deal below and let me know if this feels good. Nothing signed yet and build is on verbal agreemnt with dealer. Delivery expected mid-April. Thanks All!
2021, BMW, X3e PHEV:
MSRP: $57,295
Selling Price:$51,566 (10% Off MSRP)
Monthly Payment: $563
Drive-Off Amount: $4,183
Months:36
Annual Mileage:10K
MF:.00096, was .00086 but dealer said they bump by 1bp and system will not allow them to strip
Residual:$32,085
Incentives:$2,000(Lease Credit $1,250, Lease Credit $750)
Region:Northeast(NNJ)
Leasehackr Score:7.7
Leasehackr Calculator Link:leasehackr.com/calculator?make=&miles=10000&msd=0&msrp=57295&sales_price=51566&months=36&mf=.00096&dp=0&dealer_fee=600&acq_fee=925&taxed_inc=2000&untaxed_inc=0&rebate=0&resP=56®_fee=515&sales_tax=6.625&demo_mileage=0&memo=&acqFee_check=true&totalLeaseTax_radio=true&bmw_demo_25=true
Looks good, dealer is right, 0.00086 MF was March, so unless u locked in that program before April 1st, u can’t get that
The correct base MF for April is 0.00093. I’ve typically seen dealers mark it up by 10 points (0.00103, 0.00113) up to 40 points max allowed. Not sure if the dealer can mark it up to 0.00096 but if they can it’s a difference of 1 dollar a month and 10 bucks up front more…
In other words, not worth the time to save the 50 bucks.
As for a good deal or not, compare it to the marketplace. Not sure about the plug in hybrid but X3s were being offered at 12% off for custom order by @nyclife. Check out his marketplace page or reach out to him before you sign.
Yep as a past lessee of bmw PHEV, bmw doesn’t give the fed ev credit. In my scenario back in 2018 they had at least a 2000 credit for the vehicle so about 40% came back to me.
In my scenario at least came out over 10k better even accounting for lack of fed ev rebate on a lease. Real RV for that vehicle and similar vehicle at the mileage was low 40ish vs 55 I contracted for
Thanks Spyder1
I locked this deal in March and extended the lease by one month. Currently in a 2018 X5E which I have thouroughly enjoyed. MF was .00086 when we locked but at that time the dealer said the MF would be .00096 based on above. Shold I push back onthis? Would be 5th car with same dealer. I know I have been had in the past but have become educated and really trying to strike the best deal on a brand I enjoy.
Ok so he’s basically marking up by 10 points, at a 10% discount and dealer fees are high. The 10 point markup costs you about 300 dollars over the life of the lease.
I’d look at other options, like the brokers nearby or other dealers in the area. Like Matt said, consider a finance/balloon loan.
Thanks mllcb42
From what I understand from the dealer and my CPA, the new owner is who gets to take advantage of the tax credit. It has changed from 2018 when I leased my X5 e. Thus on a 2021 X3e I would be allowed a tax credit(against my taxes, not taxable income) of $5,836.00. This was a major factor in dertiming the PHEV vs the X3 M40i which I also liked.
Thanks JOn!
I just researched the Feds site and this is what is referenced for the credit:
Can I claim the credit for a leased vehicle?
If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
This may materially change my deal!
Next question. Has anyone ever welched on a build from a dealer? I went into this build with the express thought that it would benefit me in the long run. Or how best to rework as a purchase?
This forum is amazing gand thanks all!
I do not see where it states that he leasee gets to take the credit, which to your point means that I would not get to take advantage of that deal. Shoot! Thought this would have been a win.
Forgive my continuing on here for a bit. Just clarifying…So there is really no incentive to me to run after this deal as the 10% discount is okay but not exactly in line with regular X3’s and the dealer does not push these as hard as the bank is ultimately the one benfiting(even if they give a bit back to the dealer) from the incentive.
You may find value here in doing one of.the balloon payment programs that makes you be the owner but has some of the benefits of leasing. The sales tax will change, but opens you to claiming the fed tax incentives.
I think the real answer is to find a better vehicle.
Thanks so much for the honest advice and answers. Have you seen blow back from canceling a build deal in the past? I have no financial obligation on the new build and can turn on my current lease anytime.
Fifth car from the same dealer and they will not give you buy rate? That’s pretty bad. Other hackers are correct on tax credit. Sometimes they chose to pass the full amount like the i3 was getting the full 7500 for the longest time.
Thanks SharksFan 15,
I have not pressed on the buy rate but yes it seems petty on their side. They are also charging for extra dents, dings, rubs and one scratch through the base coat(all about $600-$800 worth) of damages on the lease return.
Have others seen 10% discounts off MSRP on X3 e’s plus the rebate pass through and incentives?
I guess they are thinking that I should be satisfied with the 10% and incentives but it does seem like I could build a regular X3 and save a ton more even with the features I wanted.
Thanks again for all the good look out everyone!
