BMW X1 Lease Evaluation


Hello, guys!
My first time posting. I’m currently negotiating my first lease. It seems to be going well, but I was hoping to get some opinions on how they are coming up with the balance after trade in. I’ll post a pick of the numbers. Any feedback would be appreciated. It looks likes they are simply subtracting the trade allowance of 24,500.00 from the adjusted price of 30,780.92 and taking that amount of 6,280.92, plus fees: Doc fee 157.25, Tax 418.66, Fees 1,130.00, which all adds up to 7, 986.83 and adding it to my trade payoff of 35,603.00. I am to return today and go over what terms BMW FS approved. My question is about the end balance. Are they going to decide the residual from the 43,589.83? Also, I only came up with 43,013.92.


Sorry I don’t know how to post a picture.
This is what was given yesterday:
2020 BMW X1 Xserve 28i 4dr A
Selling price 41,030.00
Discount 10,249.08
Adjusted price 30,780.92
Total purchase 30, 780.92
Trade allowance 24,500.00
Trade difference 6,280.92
Doc fee 157.25
Tax 418.66
Fees 1,130.00
Net 7,986.83
Trade payoff 35,603.00
Balance 43,589.83
Drive off 668 down payment
Monthly payment 667
36 months
Mileage 10k

So you owe $35600 on your current car and they are giving you $24500 on trade?

Yes that is correct

Im wondering if the final balance they came up with, which is over 500 more than my calculations, is what bmw fs is going to look at and then come up with my MF and riesidual? If so how did the dealership calculate my monthly payment already?

Run away!

But seriously, find out what your car is worth (NADA guides, KBB, Vroom, Carvana)

:grimacing: They offered me what Kelly blue book and the car cash app quoted.

Please don’t roll $11,000 into a lease. Please.

What is the driver for this? Why are you trying to get out of your current car and into this BMW?

Trying to get out of negative equity. Was told leasing is the best way.

Whoever told told you this is giving terrible advise. Your best bet is to keep your current vehicle and pay it down over time. Rolling negative equity into a lease is not a good idea. Rolling in 11k in negative equity is insane.


Oh wow! Glad I checked in with you guys! Thanks for the feedback!

I was looking at my current financing of 699 for five more years verses this option of leading 667 for 3 years. On the surface it seems attractive.

Important flaw- apples:oranges, at the end of the financing you own the car which has possibly decent residual value(especially to you if you hold on for longer) at the end of the lease you are forced to return the car and have nothing. If the selling value of your current car is minimal after financing AND you wouldn’t drive it beyond the financing period, then I somewhat understand

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It’s a truck so it should be along value after paying it off. I’m also, looking to purchase a home in about three years so I would like to be done with a vehicle payment by then.

will you just be taking the Bus (public transport) once you purchase a home? You’d still need a car then no?

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Yes, my plan was once I am done with the lease in three years, I could lease a vehicle free of negative equity for a lower payment.

Just to answer your question, the residual is set by the bank and based on the MSRP of the car. The MF is also set by the bank (but the dealer can mark it up within a range).

Both the RV and MF have nothing to do with your trade, they would be the same regardless of whether you have a trade or not or how much negative equity you have, etc.

You would be very wise to run an amortization schedule on your current car loan, see how much you will still owe after 3 years vs. an estimate of how much the car will be worth. You’ll most likely have at least a little bit of positive equity.

Compare that to a lease where you’ll turn the car in and have zero to show for it. Even if you’re buying a house you can always sell your current car then and go lease or buy something cheaper.

Not to sound too harsh but overall your plan sounds extremely ill-advised and not thought out at all.

I’m with Jeff, you seem to be at a stage in your life where financial prudence is important. If that were my priority I would likely hold on to the truck for many years until I felt wealthy and comfortable to lease a brand new (and in this case, nice) vehicle.

Thanks all of you for the info and advice. A little tough love never hurt anyone. :grin:
Sorry can’t make a new comment. I’ve reached my limit but yes the 668 does include the negative equity.

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Honestly if the $667 includes the negative equity, this is a really strong deal (as long as the only money DAS is $668). The negative is $300+ rent charge a month. This really isn’t that terrible

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