I have been working on a deal for a 2019 M550i with 7,067 miles and have been grandfathered into the May program. I need to take delivery soon to avoid losing the deal.
I agreed on DAS and monthly payment over the weekend, and finally received the lease contract last night.
MSRP is $80,245, so the LH calculator is adjusting the residual to $40,888 on 36/10 lease. Residual would be 60% (or $48,147) on a new car.
The lease reflected the same payment and DAS I agreed to over the weekend, but the residual calculated in the lease is about $2,000 less than the residual from the LH calculator. Net difference to me about is $50 per month.
The dealer claims that the residual is reduced 9% + $0.30 per mile. I have always seen a 7% drop and $0.25 per mile residual reduction for the mileage of this car.
Did the BMW program change? I’m fairly certain the dealer can’t play games with the residual, but I want to avoid the headache of the lease being rejected/re-worked later once processed by BMWFS.
I understand all of that and am happy with the ~25% discount from MSRP. My only point is the residual calculated by the dealer does not match the calculation described in the LH wiki and the LH calculator.
As long as the payment terms outlined is what you agreed on, then I really don’t see the problem. Leasehackr calculator isn’t always 100% accurate.
Agree. The lower RV should result in a higher payment. If the dealer is keeping the monthly and DAS amount the same, just sign the contract. If BMWFS rejects the deal, make the dealer eat the difference. They will not want the 2019 back.
Have you verified the mileage? Maybe it was outdated? If you calculate 9% RV drop and $.25/mi for that loaner with 8368 miles, the RV comes out to $38,957.95.
SO not a bad deal per se.
Thing is, did you run numbers on a new one?
Here’s a broker deal off here on a 2020 M550 same MSRP
Essentially this one is $661+t…you’re at $639+t
similar drive offs and terms.
Except the 2020 is on the June program, you won’t be getting the 2 month pmts
That residual hit plays a big role. Your driving a loaner essentially for a net benefit of $22 per month and the two payments + $400 difference in drive offs. At this point it’d be a personal decision for you whether you want a loaner or a new car.
I don’t think that’s a good deal for the loaner. You are getting 25% off, but then you lose 9% RV, mileage adjustment is ~2.5% and incentives is ~4.7%. Taking that into account, you could get the same deal on a 2020 with with a 8.8% discount off a new unit.
