I am working on a lease for a 2020 BMW i3 REX. I was given this following information from the dealership.
Money Factor: .00122
Residual: .57
MSRP: $53,495
Selling Price: $38,308
Downpayment: $5,000
Lease: $277/month
However, when I plug this into the calculator I get $202/month.
Any hackers out there wanna help me understand what my deal should be?
Your first step needs to be verifying rv/mf/incentives so you know where you’re starting from a selling price stand point. Besides giving you a more useful number for comparing deals, it also makes sure that the proper tax on the incentives is captured.
Also, is the dealer offer $5000 cap cost reduction or $5000 due at sale. Unfortunately, “down payment” is often used by dealers interchangeably. I’d bet in this case it’s $5k DAS and the extra difference in pricing is due to upfront taxes on the cap cost reduction.
You baked in the incentives into your selling price. Need to separate those incentives.
Gearhead - thanks for the reply. So I changed the calculator. They discounted the MSRP by $4686. I then put my $10,500 in incentives into the “taxed incentive” section of the calculator. I still get $202/month.
mllcb42 - thanks for the info. I will verify from another source if the rv and mf are accurate. The dealer verified the incentives as the $7,500 tax credit being passed onto me plus $3000 lease loyalty.
The $5000 should be cap cost reduction. Taxes on that are not enough to make the difference in this deal.
It’s within $350 if we assume they’re considering the $5k DAS and not $5k down.
Still not correct, but much closer. I would triple check with them as to what the actual cash amount DAS really is here. With that said, after the incentives are backed out and you’re adjusted for buy rate mf, you’re at 7% pre-incentive, which is by no means a stellar deal.
Yeah that’s what I’m thinking. And when I told the dealer that we should be closer to $202, I was basically told to take a hike. Seems like they just want to hold fast to their not so good deal.
You’d need to be at about 13% pre-incentive to get to that price from where you’re currently at. Is that a number that’s substantiated based on research on comparable deals here?
No, I have not done that. I do have a spreadsheet that I’ve used in the past for all my leases. If I plug in all the numbers then I do get $202.
Nice clean sheet @iheartevs✔️
I still suspect the confusion here between you and the dealer comes down to the definition of money down. I’d bet that you’re saying money down and they’re hearing money due at sale. If you frame your $202 ask in that context, to get them to where you think they are is another $2700ish discount.
I also don’t see your spreadsheet capturing the tax on the incentives where appropriate.
Agreed with above. It looks like your spreadsheet is putting rebates as untaxed.
Here’s the spreadsheet with all rebates, etc. as taxed. It is under “Amount Due At Lease Signing” section, highlighted in yellow. $15,500 “down” and $1,588.75 is tax. Thoughts?
I think the dealer you’re working with is saying $5000 das rather than $5000 down.
If we assume that, dealer total lease cost = 5000 + 277*35= 14685
Your spreadsheet = 17811 - 10500 + 202*36 = 14583
Within $98. Not perfect, but closer
mllcb42 - that’s a very helpful way of looking at it. Thank you!
I have spent a little time looking around and can see that the MF wasn’t correct. It seems like it should be .00082 as this number has been confirmed with 2 different dealerships regarding an i3 lease. The residual is either 56 or 57.
Yes, buy rate is .00082 currently. That mf mark up is equivalent to about 2% less discount (which is how I got to the 7% number above).
It’s always a good idea to verify rv/mf/incentives with Edmunds at the start of your leasing process.
It’s not a very compelling deal IMO
That’s the first place I go. However, Edmunds is showing no lease numbers. People keep asking for December MF and RV and the moderator keeps saying “I do not see any lease programs for the 2020 i3, for December.”
I agree but wanted to put it out to the group for confirmation. Thanks!
