Could you guys please give me some feedback on how much lower I can get this? My gut says at least $3K-5K more.
YIKES! Looks like a bad deal to me. You should be able to reduce the sell price by at least $4K-7K (I’m guessing). So, you need to do a little bit of leg work in that regard. The money factor (MF) is .00186 which equates to an interest rate of about 4.46% which seems a bit high. Apparently, they aren’t giving you the lowest possible MF called the buy rate. In other words, they’ve marked up the buy rate from what I think is .00166 to .00186. If your credit is 720+, you should be able to qualify for the buy rate. You may be able to apply multiple security deposits (MSD’s) to get the buy rate reduced if it’s advantageous for you to do so. Not sure if BMW does MSD’s anymore.
Suggest you get an itemization of the upfront charges (1,271.64). They show a monthly payment of 860.50 and an advanced payment of 883.26 for a difference of 2.645%. Hard to believe that sales tax is only 2.645% but, I suppose it’s possible. If so, then 860.50 is the base payment and 883.26 is the base payment plus sales tax. I assume this lease originates in CA where the payment streams are taxed.
Based on the assumed base payment, your adjusted cap cost would be 64,244.62 which is 1,399.62 higher than the sell price despite the fact that there is a 2,345.10 cap reduction. This suggests that a total of 3,744.72 has been capped which includes the 949.84 negative equity. This leaves as difference of 2,794.88 that’s unaccounted. You’ll need to get a break down of this amount. I’m guessing it includes the acquisition fee and maybe the dealer doc fee plus God only knows what else. It appears that the 4,500 cash and rebates is used to pay the advanced payment (first payment), upfront charges, and cap reduction.
There needs to be much more transparency in terms of disclosures IMO.