Looking at a very highly spec’d I5 M60 - they’re offering $9k in rebates/incentives if leased, but just a 2.99% rate if purchased.
Is my use of the calculator correct? Is either of these a good deal?
I would target a discount closer to 10%. Do you qualify for loyalty? If so, your MF should be: 0.0016, if not 0.0019. Your RV should be 54% at 36/7500. Most of us here wouldn’t advocate for $10K down on a lease. Perhaps enough to cover fees and first payment. Even if you prefer to finance, you should buyout the lease.
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There’s several things wrong with the calc:
- Residual for 36/7500 should be 54% and not 50%
- Money factor is right assuming they’re marking it up 10 points (if you don’t have loyalty) or 40 points (assuming you do have loyalty)
- The incentives need to be taxed (you have them in the untaxed field)
- The notes say $1500 Conquest, but Conquest is only $1000. Loyalty is $1500.
- The acquisition fee is $925 for BMW FS, not $1010
- The gov’t fees are very inflated. On a $101k MSRP i5 M60 the reg will be around $1k at most
Feel free to text me, I can do significantly better on the discount for you. 818-314-1456
-Zack
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Apologies - Newbie here (Purchased a lot, never leased)
Answers:
Residual - Agreed, but that’s what Irvine BMW listed
Money Factor - as they listed
Loyalty - Yes, we qualify. Sorry, I got it wrong.
Acquisition fee - Yeah, it defaults to that, but that’s what they listed!
Gov. Fees - I had a hard time breaking down their quote. I wish I could attach it.
Per their offer, they list the following
Drive Off $10,000
Cash Ca Reduction $6,470.47
CapTaxl Rt/Amt: 7.75% $1,198.96
Base Mo Rental $1,207.95
County Tx $93.62
Mo Payment $1,301.57 (Not close to the 1% rule!)
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Texted you!
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Ignore the 1% rule. Definitely work with ZZ on this.
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Really? God, next you’re going to say “Not everything you read on the internet is true!” I must have seen that referenced 20 times…
Your calculator is wrong. Incentives are taxed and down payment is not drive off. Did you checkout leasing 101?
I did…but between deciphering the dealers very strangely formatted lease offer, and trying to figure out how to translate it into the calculator (plus, after a 12 hr work day), I’m pleading JPS (just plain stupid)
Use a broker for sure if leasing, the calc, etc isn’t as plain as day to you.
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Looking to see which is better at the end, buy vs. lease.
Here is a more reasonable comparison with $10K out of pocket and using BMWFS. However, the better way to buy this is via a lease, so you get the extra incentive and bring your own financing. That’s a bit more complicated, but anyway you do it, owning one is risky.
If the MF is 0.00125, it’s unlikely bringing your own financing is going to be cheaper. It seems like just riding out the lease and enjoying your christopher-walken-approved BMW makes the best sense. Save some bucks along the way so you have flexibility to help buy out the lease at the end, or just roll into a new EV subsidized by taxpayers in 2027.
Even if you brought out the lease with cash a week after lease inception, the opportunity cost of that capital is going to exceed an implied yield of that 0.00125 MF.
My point was that, if you insist on buying it, bringing your own financing and buying out of a lease, has a lower TCO than buying it upfront with the BMWFS financing and not getting the $7500 incentive.
Leasing and returning is superior to any method of buying, but MMR is decent compared to lease buyout price (mine is about $70K).
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Hi, my calculation doesn’t add up. What am I missing with calculations?
| MSRP | $102,560.00 |
|---|---|
| Discount | $4,500.00 |
| Selling Price | $98,060.00 |
| Leasing Program | 36 - Month |
| Miles/Year | 7,500 |
| Residual Value | $55,382.40 |
| Money Factor | 0.00200 |
| Tax Incentive | $7,500.00 |
| BMW Loyalty | $1,500.00 |
| Total Cash & Rebates | $9,000.00 |
| Net Cap Adjustment | $89,060.00 |
Can’t you get 10% off msrp before rebates and incentives? You’re far from that here.