2023 BMW i7 Lease Deal

Ask the Hackrs
1

Hey there! Brand new to this forum and brand new to even potentially leasing. I had a build order for an i7, fully loaded, and am considering leasing. I’m in Texas.

My dealer is stating that I will not have sales tax and a $7500 incentive and is pushing me to lease instead of finance. I’m not against the idea, but just have NO idea if I’m getting in over my skis here.

36 mo/12,000 mi - $2280.38 payment

MSRP: $150,995
Sales price: $150,995

Customer Cash: $10,000 (can this be $0?)
Total Rebates: $7,500

Acquisition Fee: $925.00
Advanced Payments: $2280.38
Upfront Charges: $341.25
Total Cap Reduction: $14,878.37
Residual Amount: $73,987.55
Due on Delivery: $10,000.00

My questions: Does this all seem pretty standard? Should I push for something here? I built this car but given the huge change in the world/supply of vehicles/incentives even in the last 12 months, I’m considering if I even want to take delivery of the vehicle, even though I love it.

Would love advice! Be gentle. Thanks.

2

I should note, per the calculator:

RESIDUAL VALUE:

49%

MONEY FACTOR:

0.0019

3

I could do 6% off front end before rebate + lender tax credit (for lease) on the car and probably a little deeper on a store demo.

You did the right thing coming here, this is no longer a sticker’s quicker kind of car and the market is reflecting that for those in the know.

5 Likes
4

On a different car? I’m so picky on the options given the price of this thing.

Per your sticker’s quicker, I get a sense that the top end of this market has changed SIGNIFICANTLY in the past 6 months.

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5

Well I suppose if you abandoned it, I could probably dealer trade for it assuming it isn’t with a store we work with.

No one wants to get stuck with one of these on floorplan in 10 days. Shoot me over some info and I’ll see if it’s workable or if I have something I can acquire that’s similar.

2 Likes
6

Will DM. Any other advice from others is welcome, too.

7

I think it sounds like crazy sauce to spend $92K to rent this car for 36 months.

But – it’s going to depreciate so much, that I don’t know if I would want to hold title either.

It’s likely an amazing vehicle - but being the first owner will not be a pleasant financial experience.

If that must be you I would work with @IAC to improve the lease as best as possible.

FYI the last one sold on Manheim for $108K on 7/18.

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8

The crazy sauce is why I’m here! Throwing money down the drain cry

9

Almost $31,000/yr before insurance and electrons. Even at capital gains rate, you’d have to earn $40k to net enough to make those payments.

Almost $2.56/mi to lease :face_with_spiral_eyes::skull_and_crossbones:

3 Likes
10

I hear that. Do I just buy it then? I was gambling that I’d be about even to owning vs buying it at the end of the lease, and I could walk if the market collapsed.

11

You’d lose the rebate, maybe consider lease then buy to at least get that but you can save even more by buying/leasing it right.

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12

I would not purchase a high end EV right now unless you plan to drive it into the ground or if $50,000 is a rounding error in your finances.

This one has 400V architecture for the battery. Once BMW upgrades to 800V and gets NACS ports the value will be even lower for older models.

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13

Pretty much guaranteed to not be a good lease.

14

Are you wedded to the idea of an i7? Would you consider a 550/750/s-class/Etron gt etc instead?

15

Spend time and learn how to use lease calculator.

16

I am only considering full EVs for this purchase. I’m less worried about 800V architecture saturating the used market in 3 years and that impacting prices, and I fully expect an NACS adapter with CCS protocol to be standard for the huge lot of current cars as that standard is adopted over time. I hear you that they’ll impact the used market, but my argument is on the significance.

To me, that bears the bigger reason I want to lease right now. Not a great lease… Well, it’s BMW’s standard MF. I’m not going to drop security deposits to lower it because I can outyield that cash doing other things with it for 3 years.

So what are my levers? MSRP reduction and down payment, yeah? What else here? Dealer won’t have MF or residual as a lever, right?

Also I’m 95kish out at 3 years. Assuming I buy at 74k at 3 years and a 100k value (2020 150k msrp taycan as a proxy) I’m out 70k. In a purchase, I’m likely 108k out with 66k principal remaining, so again, around a 70k outlay over 3 years. Downside is if the projected residual is way lower than 100k, I’m screwed on purchase.

I get that the economics of a 150k full ev are different than most cars here. I’m not asking for comparisons to a Hyundai lease. I’m looking at high end EV comparison on a model I adore, if that makes sense.

1 Like
17

Look into the EQS and Etron GT and GTRS. Less than half the payment of an i7. Is the i7 twice as good as any of these cars?

Same goes for getting a car with a much lower lease payment.

18

I mean. I get it. I hate those cars. I’d never pay that for them.

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19

This is true. But it’s not an all else equal argument. I genuinely love the 7 series. So there’ll be a premium paid. I’m trying to improve my positioning.

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20

Down payment is not a lever. That’s just a prepayment of a lease. Barely reduces your total cost.

Without MSD, your only lever is discount off MSRP.

1 Like