Newbie here, trying to secure a surprise lease for my husband. Despite my reading and research, I am 100% sure I am not understanding the concept of MF correctly. I tried using the calculator and the score was outrageously good, so I know I did something wrong there too. Based on comparable posts, I think this deal is meh bc its a loaner but would appreciate detailed thoughts. I hate going to the dealer looking ill-informed, esp was a woman. (BTW- this is the second offer they have given me. I knew the first was so bad, I rejected it outright).
CALCULATOR:
Vehicle: X3 sDrive30i
Terms: 36/10
Location: SF Bay Area
Loaner Miles: 4644
MSRP: 46445
Sale Price: 37153
MF: 0.0006 → This looks off to me. MF was not disclosed but I used the formula: Money Factor= Lease Charge/(CC+RV)×LT
Monthly Payment: $400
MSD: 1 ($2,800)
DAS: 3,663 ($863 Down + $2,800 for MSD)
Buy rate MF right now is .00142. dealers will often mark it up to .00182, but it is going to be .00142 at the lowest.
What amount are you using for the rent charge in your calculations?
Also, have you gotten a purchase quote in the x1 from carvana or vroom rather than trading it in?
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The easiest way to deal with this is to not go to the dealer. You shouldn’t be going in until you have the deal all worked out remotely. No need to let them know your gender.
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The discount is actually very good here (which could be an indication of how they’re valuing your trade in).
As mllcb42 suggested, confirm the MF they’re quoting and aim for buy rate of 0.00142, and consider lowering with MSDs.
The big question though is are they giving you a fair trade allowance for your X1? Make sure you’ve compared around.
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Thanks both! I should have clarified, the X1 we would be trading is an existing lease with this dealership, so I had assumed the trade in value is not negotiable.
You can always sell the trade in separately. You’ll want to get the current payoff quote from bmwfs and get purchase offers from carvana, shift, and vroom to see where they’re at. They may be showing you a big discount in the new vehicle but taking a bunch of equity out of the x1 to make up for it.
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If you are at lease end/ maturity date soon take the trade out of the equation and ask them for full disclosure on the lease to include a breakdown of the drive off and disclosing the money factor.
You can get your payoff if it’s through BMW FS at 877-269-3577 option 3. Have the last 7 of your VIN handy.
With the payoff you can test the waters selling the vehicle to carvana, vroom, etc. Any amount you are offered above the payoff is yours to keep. If you don’t profit selling it on your own simply turn it in at lease end. No need to include the vehicle as a trade if you are just turning it in. You can message me directly if you have any other questions. Glad to help.
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If im not mistaken, if the MSD’s are 2800 it should be for 7 of them, not 1.
Numbers seem off.
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Super helpful information here! Unfortunately we are only about 40% into our current lease. I wouldn’t say it’s close to term but I’ve asked for the full disclosure on the lease to include drive off and MF as the trade in numbers are muddying my ability to assess this deal independently of the X1. Thank you all
So complicated, why not just get him the Peloton?
It will take you less than 10 minutes to get a quote from carvana and your payoff info from BMW. I suggest you stop everything you’re doing regarding this deal until you’ve done that.
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I checked your calculator and I think what might be incorrect is the residual. In your link it says 67% but when I checked on Edmunds for current X3 residual, it said 59% or 58%. Once I change that residual and adjusted the money factor as well the payment seems to line up with the dealers. And the old bmw you’re trading in looks like the full value of that trade is going into the 20% discount off msrp. I could be wrong but that’s what it seems like. Good luck on the deal.
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You are putting 7 msds down also not 1. If you lease this one first and trade in your x1 with carvana or vroom you could get extra money off in the form of loyalty which will be another 1000 in taxed incentives for this lease.
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