Monthly Payment: $725.65
Residual Amount: 31,044.75
Mileage: 7500
MSRP: 56,445
Discount: 4,000
Sale Price: 52,445
Total Rebates: 7,500
Doc Fee: 85
Advanced Payments: 725.65
Upfront Charges: 2209.70
Total Cap Reduction: 4,564.66
Due on Signing: 0
My intention is the buy the lease out immediately.
Does this seem like a good deal to folks? I’m not sure whwere “Upfront Charges” or “Total Cap Reduction” really means. I’ll ask my salesperson about it when I speak with him next.
Is 0 down really the right move here? I figured it made no difference for my case.
If you intend to buy it out right away, tell them to waive acquisition fees in lieu of higher MF. As you are paying it off right away the bumped-up MF won’t matter and you will save $925 in acq fees.
There is no set rule for upfront charges. You can pay as little or as much as you want upfront.
Acquisition fees is something BMW financials chargers so its not going to the dealer, there is no reason for them to get upset if you ask them to remove it and bump up the Money factor. This is an option from BMW and dealer is not harmed in any way by processing the lease that way.
If i were you I wouldn’t mention anything about paying off the lease right away and just politely ask them to do it. If your sales guy has never heard about it than don’t be shocked as its not very common these days with already high MF, just tell him to check with his finance guy and they will know what to do. make sure they don’t ding you else where with any other addons and you are good to go.
You are around 7% with your discount, which is better then most, but I would be asking for 8% to close the deal. You should investigate tax consequences of a lease buyout. As far as BMW leases go, the i4 e35 is not terrible – what is your motivation for the immediate buyout.
The 7500 credit appears to only apply to leases. And otherwise I wouldn’t qualify for the federal ev credit if there was one in this car.
The motivation to pay it off is to avoid paying interest. I’d be paying it off with cash.
So to recap so far, we’re thinking 8% off msrp, plus try to negotiate a lower lease fee in exchange for higher interest
I am looking for lease on i4 here in so cal ( any brokers have anything available please DM). So, as I understand your payment is $725.65+ tax with zero drive off ?
Yeah that sounds right. Originally I didn’t care about the monthly payment because I intended to pay it off. But there are some good points being made here so now I’m rethinking it.
It really depends on what time horizon you’re looking at. If you want to own it for 4-5 years and sell it when its value is in the 20s, you’ll come out way ahead of the lease on an annualized basis.
I feel like many people extrapolate way too much from the short term volatility of EV pricing which isn’t really relevant. With a longer term view you are not beholden to the whims of stock buyers of Carvana, Vroom, Carmax etc which then dictates how much they can bid for “like new” inventory.
People also got used to EVs being worth MSRP in 6 months so now they’re really shocked that a 1yr old car is worth 20+% less. That’s pretty normal. An ICE BMW would reflect the same dynamic. That’s not an abnormal level of unpredictability or some scary level of volatility. That’s just a return to normal.
