BMW X1 Loaner - $3K down / $399/mo - Please review

You have to do the math. How much interest do you want to pay over the life of the lease for Tax, DMV, License, etc? You’ll pay much more in interest on those items on 3% interest than you would on 0.9%.

The text I quoted said roll everything in. That’s much more than 0 CCR. That’s acq, doc, Reg/DMV and any upfront taxes, etc.

That is obvious, but where should one draw the line? Rate of inflation?

One should never want to pay any interest but in this case we are weighing the interest paid vs potential loss if paid up front (ie in the totaled car scenario).

Depends, I think. If any tax is due upfront, I think a lot of people would find it preposterous to pay interest on that and on your DMV fees, if they logically thought about it. Do they? The internet is full of “rules” set in stone, like never pay anything (except 1st) upfront and roll it all in, regardless of the rationale behind it. The 1% “rule” is another one, but I digress now.

An MF below a risk-free rate you can earn elsewhere…that’s one way of looking at it.

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That’s a personal question you need to answer IMO. Is it worth it to you to roll those items in at 3% for 2-3 years rather than pay them up front vs risking a loss? The likelihood you will total that car is small, but it exists.

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It’s something you need to figure out for yourself. I personally always roll it in if it’s <4% since I can usually average a better rate of return by investing that money. And it’s less risk in the off chance the car is totaled before the lease ends.

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That’s probably the better way to make the determination.

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I am looking to get a similar deal on a loaner X1. How many miles do these two models have? I was recently quoted $500+ per month which is crazy.

Thank you for the help.

  • You’re absolutely right. I’ll do that before I go back.
  • Agreed. I just don’t know any other way to bring them down other than just walking away. I’ll try to go back to my dealer and show them the quote I received for the other dealer to see if they’ll match. Wish me luck.
  • Risk factor aside, as much as I know Cash is King, I want to deflate my monthly payments a little. I’ve been going back and forth on this, especially now since I have to pay $800 out of pocket for the overmileage.

Thank you for the tips!!

I believe they have 3K and 4K miles respectively. How much down was the quote for and are you in the tristate area?

I am located in New York. The down was something crazy like $2000. Which included all the fees and taxes. I won’t lie I am new to this and I did counter with an offer similar to what you got but they have not responded yet.

The other thing I would recommend would be to reach out to @nyclife. He’s a broker in NY and surrounding areas, he might be able to get you a better deal.

Trade it in at night while it is raining. :wink: I have done that before and they somehow missed a big dent in the back quarter panel. LOL

I would take the 2nd deal. If your credit is above 700 you should be getting that .00156 MF. I’m negotiating a lease now and that was the rate I was given. And that is also my dealer’s buy rate so your dealer may not be marking up the financing. My only issue is I’m confused on why the residuals are different. That’s set my BMW financial and it should be 59% for both so id question your dealer on that. If you ultimately opt to go with the first deal, demand that they adjust your MF to .00156.

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Err… I’d draw the line somewhere though, and wouldn’t encourage being blatantly dishonest. There’s a difference between subjective wear and tear and denting the car.

Mine was not a lease. I was getting killed regardless on a 2 year old Dodge. I had SUCKER written all over my face at that point in my life. They did just fine! :frowning:

Is this a good deal for X4 iDrive 28i

MSRP 49795
Selling price(inclusive of 2k rebate) : 37836
Monthly payment : 451
Down : 2000
36m/12k
MF: 0.00206
Residual: 58%

Is this is a good deal? Are the MF & Residual value correct? From BMW website I also see 1000 conquest certificate… what is the eligibility criteria for this ?

That looks like a great selling price, even after the $2k rebate. I’m curious why the MF is so high? Did the dealer give you the buyrate MF, but waive the acq fee to get to .00206? It’s costing you more in this case than just paying the $975 acq fee.

It seems like a good deal. That’s close to 20% off. How many miles does it has on it?

Because of the discount on selling price, he is not ready to negotiate on MF anymore … is the Residual value correct ? This is a loaner vehicle with 4k miles on it