Could you help take a look at my previous BMW lease contract?

, , , , ,

Hi, I am considering doing a new lease. I was looking back at the lease I signed three years ago and I need some help understanding it (I didn’t do my homework enough).

Could anyone help take a look at this lease and see if everything was as they promised? The agreement was 10% off on a MSRP $59,215 car, residual at 61%, incentive/rebates was $4,000 ($1k college grad + $3k holiday) and base MF at 0.00152. With that said, I ended up paying $616/month for 10/36. I am in Delaware.

I see the selling price is correct at 53,200 (10% off). But the capital cost reduction is not $4616, but $1,713.05. There is a sales/use tax of 2,261.00. Based on my research, it seems that is b/c lease tax in DE is 4.25% on sales price and 2% on monthly payments, and the capitalized cost reduction is decreased because of this sales tax. If this is true, then I am basically paying ~$100 on taxes each month, making a good deal on a lease almost impossible.

Could you check if my understanding of the numbers is correct and the dealer was honest about their promise? I am considering what I should do next, given this tax on sales price, I don’t know if leasing still makes sense, but I don’t know better options to my knowledge.

Any thoughts would be appreciated. Thanks.

Looks like you got

  • 1713.05 in Incentives
  • 4000.00 in Rebates

So a little different than 4000 in incentives.

Where are you getting $1713 in incentives from?

B - Cap Cost Reduction.

Cap cost reduction isn’t an incentive…

1 Like

oh, then I read it a little different since he has a reduced price AND a cap cost reduction.

Bmw likes to apply their rebates as money due up front, so the $4000 rebate is being used to cover $2287 in taxes/drive offs and the $1713 balance is applied as a cap cost reduction.

1 Like

Oh I see, they used the 4000+600 to pay for the taxes and the $1713 is what’s left over

$616 is first month payment. $4k rebate covers, fees, etc and then the balance to cap cost reduction

I guess BMW doesn’t do a $0 DAS and made him pay for 1st Month?

Seems you guys figured it out, similar to what I thought was going on. However I am not sure about the difference between incentives and rebates. But at the time I qualified for 1k recent grad (incentive?) and 3k holiday (incentive?), seems they are treated as rebates.

So nothing weird is going on here, right? It took me some time trying to figure it out. The relatively high monthly cost is b/c of the 4.25% tax on full sale price instead of just on monthly payments. This means I had a solid deal but was hit by the tax, bummer! Now I have to pay that tax again for a new lease.

High tax and higher MF. At least bmw mf is a good bit lower right now.

Was that buyrate back then? Either way BMW’s old MSD program at .00049 reduction for 7 MSD would have saved you a decent amount of money

0.00152 was the buy rate at that time. Do you happen to know if it is possible to add MSD to a new lease now? Thanks.

As long as you’re not in NY, MSDs can be done. You can’t add.them to an already executed lease though, if that’s what you mean by add them.