The option at the bottom applies sales tax to the monthly lease payment. That’s a different statement than cases where tax is on the lease amount and is then rolled in to the monthly payment.
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He’s trying to include taxes in his payment. Just put first month and fees up front. Wouldn’t that be the option?
Either way can be done to roll the taxes in the payment. The difference is if the calculator is calculating monthly first and then applying sales tax to the monthly payment or if the calculator is calculating sales tax on the lease value, including it in the cap cost, and then determining the monthly. Different states calculate the value differently.
I thinks it’s a decent deal. I would aim for a bigger discount based on what people write and brokers offer.
Yes, about 8.7-8.8% yearly return on the MSDs using the numbers in the calculator link.
With MSDs you save $59/mo, or $708/yr. With the $8050 MSD payment you are returning $708/$8050 = 8.8%. Since the payment in the calc is $1149 and BMW rounds to the nearest $50 per MSD, you cant really do better as far as return for the MSD (as if your payment goes up past $1150, the MSDs will increase to $1200*7, or $8400, and the “return” will be less. I put return in quotes as many folks dont feel that it is a return per se. I have personally always tried to have the payment be as close to the $50 increment as possible however to maximize the bang for the buck so to speak.
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So this seems to be ideal at 1149
For the purposes of MSD yes. For the actual car at that payment, Ill leave that to others.
I get it - perhaps another point. But it’s also for a new build not an in stock car on the lot. Assuming that makes a difference.
Generally yes…a car sitting on the lot (even better one sitting for a loooong time) will garner a better discount than a new build.
The ones I chase are loaners/demos that have been around awhile, but I am not too picky on the colors/options, etc as the savings outweighs the benefits to me.
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11% pre-incentive at buy rate mf on an order is about the best you’re going to get. Occasionally we’ll see 12%, but it’s not particularly common.
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That’s what I’ve gathered from reading on LH and learning from you guys. Thank you very much for your help and clarity!
Very limited options out there today especially with specific combinations. Production has halted and they are sitting on this inventory in an effort to maximize profits because the volume discounts are gone. I figured @11% for a build is respectable at this time. I’ll make sure to give a big shot out to the LH broker once it’s all said and done!
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