Deal Check: 2021 M340i RWD / ATL GA

Hi guys, long time lurker first time poster. The amount of information has given me so much more knowledge and understanding when it comes to leasing.
I am currently working on a deal located in Atlanta, GA for a 21’ M340I RWD I will be leasing. The most challenging this I cannot figure out in the calculator, is how to input the negative equity. There is also not tax credit added.

MSRP $63,865
Sale Price $56715
Discount $7150
Incentives $2000

My Trade $40k
Pay off $42,403

Term: 36 / 12k miles
Residual 57% / $36,403
MF .00100
Down Payment $3000
Cap Reduction $4,294

Estimated payment $705.00

Negative equity is essentially like a negative down payment.

Also it looks like the dealer is using the $2k incentive to cover some of the upfront costs and negative equity rather than lowering the overall sales price (some dealers set up their deal sheets differently than others).

I got the calculator close but still not exact. For the down payment I used the net of -$2403 negative equity, +$2k incentive, plus whatever the difference was to get your total DAS to $3k.

LH Calculator

I don’t think that’s correct. The down payment field just adjusts what’s due upfront vs the monthly payment. To account for negative equity, I believe the easiest method is to just add it to the sales price.

Yep, the end result and calculation is exactly the same if you add the negative to the selling price or input it as a negative down payment, up to the individual on which is easier.

Edit…assuming you match up the other inputs so everything is equal.

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Here is the screen shot of numbers I received.

wow 11.2% off a new model seems good. i believe in the broker deals i’ve been seeing 10%. don’t do a down payment though. did you check the money factor on the Edmunds forum? it might be marked up

How do I check the MF on edmunds?

You can ask here… but the MF should be .00082 and according to what you wrote in your initial post it’s marked up.

Dealer told me MF is based on my credit score which is based on 700+. I will let them know

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Did you shop the mystery trade-in around? Probably do msds, would save you about $45~ a month


Ask them to use the base MF of 0.00082. Otherwise, this seems excellent

something doesn’t add up. My mistake it does add up :slight_smile:

I suspect you MF is marked up because of Tier 2 credit, so everything is fair.

unless you already did it, your options are to check with Algo/Carvana/Vroom if they would offer more on your car. if that’s the case, you can have a better deal, and then replace down with MSDs for similar monthly but MSDs refundable at the end.

you can also negotiate the buyout with the dealer. otherwise the discount and all the numbers are fair.

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Just wanted to share the car I picked up.