340i lease evaluation and help for the math challenged

Hello again everyone. I have the following offer from a dealer:

2016 BMW 340i with about 3k miles
MSRP $61,870
Selling price: $45,982
Doc Fee $225
Acquisition Fee: $925
MF: .00174 (marked up but almost 26% off MSRP)
7% tax
36/15k
55% RV

When I plug all these numbers into the lease hacker calculator including rolling in doc and acquisition fee, I get $545/month with just first month due at drive off

When I do the math by hand, I get $568.30
MSRP 61,870
Selling price w/fees $46,357
Acquisition Fee $925 (rolled into lease)
36/15@ 55% residual $34,028
7% sales tax
.00174 MF

Monthly depreciation: $342.47 (46,357-34,028)/36
Finance charges $139.87 (46,357+34,028)*.00174
Tax $ 86.30
$568.30

First, is this a solid deal? Second, how is my math wrong?

Thanks in advance as always.

I think I figured out the difference. 3680 miles - 500 x .25 = $795/36 = $22/month. I was forgetting to calculate the added depreciation for mileage. I’d still like to know what people think of the deal though.

I think you’re in a not very competitive BMW regional area? Off the top of my head that seems a bit high, why can’t you reduce the MF? Also note that you’re paying for about $12,329 in depreciation, but you’re ending up paying almost half the the base monthly in finance charges. So essentially 30% of your monthly goes to finance. That’s ridiculous IMO.

I remember reading here on the forums yesterday about something snagging a loaner 340i for like mid-300/month.

This one is 500+ miles away from me. They won’t even negotiate on the money factor. This is a Loberant deal. I took a look at the thread you mentioned. It looks like the residuals were much higher back in October and the MSRP on that 340i was 6k lower. I’ll go back and ask for base money factor. That will get it down about $40/month. Any other thoughts? I’m still looking for a good deal on an M3, but I can’t get ANY traction on those.

Maybe I am not appreciating what is in the BMW 340i but why is it $62k?

It’s one step down from the M3. It has the cold weather package (heated steering wheel, front and back seats), technology package (for the HUD, Nav,connected services), lighting package (adaptive LED headlights and auto high beam), driver assist (backup cam and parking sensors), driver assist plus (lane keeping, blind spot monitor, reads road signs and puts them in the HUD), track handling (variable sport steering, M Sport brakes, adaptive suspension), 19" wheels, manual side and power rear sunshades. It’s loaded except for some trim pieces.

I found a 2016 M3 on swapalease as well. $82k MSRP, 27 months, 35k miles left for $934/month with a $5k incentive to bring the payments to $755/month. Is that a better deal?

But does it have leather? I hope $61K car does.

Yes, it’s the Dakota leather. It’s not as nice as the Merino leather in the M’s, but it’s better than Sensatec vinyl.

Any leather is better than Sensatec vinyl or MB-tex, IMO :slight_smile:

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$61k+ is a redic price for a non-M 3 series. 1 step down or not, it’s still just a 3 series. But i digress…

Sometimes the numbers just don’t work out. We all know BMW’s programs are not as good right now as they were in the past. I think you could have had that car easily for $100+ less when the programs were better but that’s just not the case right now so if you really want the car now you kinda have to pay for it.

I personally don’t like the high finance rate and i think it’s a rip but he’s basically offsetting the BIG discount with a higher interest rate. My objective in your situation would be to try hard to negotiate the MF down by insisting on the base MF which they won’t give you then settle on a slightly higher MF but lower than your current .00174, then you can kind of double dip at the very end by using MSDs and prob get the car’s payment well under $500/mo which would make it a decent deal in my opinion, nothing spectacular but given the current situation not bad. Lets not forget you also opting for 15k miles per year which costs extra, some of those mid $300/mo deals were prob 10k miles and not loaded at $61k+ MSRP (still baffles me for a 3 series). Getting a 340i or even a 335 before that in the $300s was hard even when times were better so if you can manage to get it into the high $400s i would be able to sleep well at night…

I would also like to say that not using MSDs, especially on this deal would be a big financial mistake. You get such a great return on your money through the monthly savings, you could only dream of that in the stock market or in real estate. I always use MSDs unless the interest rate is already close to 0% then it doesn’t make much sense.

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A 340i is not 1 step down from an M3

An M3 is an M3… it is its own category. Its a beast. Its a track ready daily driver.

Maaaaybe the M2 is a step down from the M3

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@carddicted i agree with you, a 340i is not close to an M3 in any way shape or form. It still has the plastic feel of a 328i etc. Nothing premium about that car. Sure it’s peppy but the Hellcat is faster and cheaper if you look at the other thread.

Maybe I am not appreciating what is in the BMW M3 but why is it $82k?

It’s another loaded example minus the carbon ceramic brakes.