2024 BMW i5. Another person trying to match lease quote with calculator

Ask the Hackrs
1

First time attempting to lease and am trying to model the quote in the calculator to obtain a better understanding but with only partial success. There is an EV credit of $7500 that I might not be modeling correctly and I couldn’t figure out where to put the cap cost reduction. I got the money factor over the phone.

Here is my calculator based model

And the quote:

i5 quote
i5 quote558×1077 62.5 KB

Any insight will be greatly appreciated since I’m trying to decide if I’m better off forgoing the credit and buying the vehicle instead.

2

Incentives are taxed, youre missing dealer fee, theyre likely marking the mf up, and probably have some other dealer add ons.

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3

They’re definitely marking up the MF.

You do not want to buy an electric vehicle. There is very steep depreciation as technology changes.

I have a dealership in the Bay Area and can beat this, with no add-ons, etc.

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4

What other makes and models are you willing to consider?

5

This is a bit of rhetoric. BMW electric vehicles are not, generally, depreciating any faster than BMW ICE vehicles. They both are seeing tremendous depreciation. The problem is it’s very hard to get a fair offer on selling a used electric vehicle, everyone is just low balling on them.

My concern with buying a 24 I5 eDrive is the 2025 model year is right around the corner and the new xDrive trim is not much more vs eDrive. Would need to be a huge discount as these are gonna pile up once we get to March.

3 Likes
6

Thanks for the caution but I have had a Tesla Model S for 7 years and it has worked out so far :crossed_fingers:

Have historically purchased our cars but leasing seemed to be a way to get the Federal credit even though our likelihood of buying the car at the end of the lease instead of returning it is high

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7

Test drove a bunch and this seemed to be the luxury EV with a good balance between not too new to have issues (e.g. glitchy software) and not too old, well built etc.

But I hadn’t read the post from @z0lt3c about the upcoming change

8

Thanks for the heads up!

Need to do some research on the 25 xDrive since I’m not in a huge hurry

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9

Leasing is turning out to be much more obfuscated than buying :slightly_frowning_face:

10

How so? You get the $7,500 that you wouldn’t otherwise. You can always do an immediate buyout if you want to purchase it and not lease.

11

I don’t use calculators except for those I developed. So, here is what I’ve generated using my Excel lease program given the data you provided coupled with some commentary…

MSRP = 71,295.00
Res. Factor = 53%
Residual = 53% x 71,295.00 = 37,786.35
MF = 0.00285 (appears to be marked-up (check the buy rate on Edmunds)
Term = 36 mo.

Tax Rate = 9.00%
Sales Tax = 9% x (7500.00 + 925.00 + 675.00) = 819.00
It appears that taxable dealer fees amount to 675.00. Could be a Doc fee (seems high)

Given the 7,500.00 rebate, there are two allocations: (1) an amount allocated to a cap reduction and (2) an amount allocated to paying all upfront fees. The allocation in the dealer’s worksheet is not accurate and should reflect a 3,862.83 cap reduction (CCR) and 3,637.17 applied to all upfront fees (rebate credit). So, here is how it should align…

Sell Price = 65,295.00
CCR = 3,862.83
Adj. Cap = 61,432.17
Base Payment = 939.60
= .00285 x (61,432.17 + 37,786.35) + (61,432,17 - 37,786.35)/36
Lease Payment = 1,024.17
= 1.09 x 939.60

Upfront Fees

1st Payment = 1,024.17
Acq. Fee = 925.00
Reg. & Fees = 869.00
Taxes = 819.00
Total Charges = 3,637.17
Rebate Credit = 3,637.17
Total DAS = 0.00

The dealer WS is structured so that the rebate credit (not cap reduction) is 3,643 and the cap reduction is 3,681.29….

Serll Price = 65,295.00
CCR = 3,681.29
Adj. Cap = 61,613.71
Base Payment = 945.17
= .00285 x (61,613.71 + 37,786.35) + (61,613.71 - 37,786.35)/36
Lease Payment = 1,030.24
= 1.09 x 945.17

And, here is the problem…

CCR = 3,681.29
Rebate Credit = 3,643.00 (see WS)
TOTAL = 7,324.29

Do you see the problem? The total should be 7,500.00, not 7,324.29. I would ask the dealer what happened to the remaining 175.71. The allocation was inaccurate. They should either cut you a check for 175.71 or re-allocate as shown above.

12

Isn’t an EQE sedan much cheaper? It was last time I checked.

Or a Q4 Etron if you’re ok with the taller seating position.

13

The hard part is the used evs have no resale value. Who is buying them when you can lease a new one for sub 500 a month?

14

Had to get creative and make some unconventional adjustments but here is my LH calculator result using the correct allocation…

Had to increase the sell price by 7,306 and show the 7,306 as a taxed incentive so that the tax is correct. This illustrates the kind of problems one can encounter with on-line calculators although, LH is the best I’ve seen. At least you can manipulate the data if you know what you’re doing to get accurate results. However, there is no way to get the DAS = 0 as far as I know. You just have to know that the balance (7500.00 - 3,862.83 = 3,637.17) is used to pay all the upfront fees leaving you with DAS =0.

15

image
image835×258 8.74 KB

Here is the LH calculator filled out for the deal offered. MF is marked up to .00295

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16

I was trying to model the dealer’s WS but with the correct allocation. How did you get dealer and government fees of 85 and 784, respectively? Guess and check? Looks like an adjustment to get the payment to match. I actually thought about checking the cap all payments box but we’re not capping anything in this lease, and it wouldn’t mimic the dealer’s WS. I would like to see an itemization of taxes and all fees capped in the lease. I wouldn’t want the first payment capped. Anyway, thanks for providing me with some insight. I’ll try this approach in my spreadsheet but I’m sure I’ll get much different results. I’d like to see the code for the LH calculator to see what it’s actually doing.

17

CA dealer fees are limited to $85

18

How about the 784?

EDIT: Never mind, I know.

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19

Using the base MF of .00245 should get the payment down to $975. I still think that is an awful big payment for an i5. I would go for an iX before the i5 for that payment, but some people don;t want SUVs.

20

If that’s a concern it should absolutely be viewed as “too new”. A whole lot of people took EQS, for example, before it became known how common its issues were.