Lockable Residual: 55% (7500 miles per year) Lockable MF (before MSDs): 0.00069 Lockable MF (after MSDs): 0.00027
Due at signing: $0 + MSDs Due monthly: $949.83
Lease deal seems good, especially for an order. But the MSD calculation isn’t matching up with the LeaseHackr calculator. Dealer says (7) MSDs is $8,400; calculator says it is $7000.
If I enter into the calculator, there’s a slight difference in the monthly cost, and a huge difference in the MSDs ($7000 vs $8400): link
One difference is that the dealer’s screenshot doesn’t show the expected change in adjusted capitalized cost — I’d expect it to be $84792 after removing $9900, but instead it’s $88,423.95. They seem to put the rebate towards the customer cash down instead of using it in the adjusted capitalized cost?
But the dealer screenshot looks to be direct from BMW Financing so it’s hard to say what’s wrong here.
I think the adjusted capitalized cost is different from my initial expectation because I asked for $0 DAS, so taxes and other fees got rolled into that.
But it’s still unclear why (7) MSD is $8400. I thought it should be lease payment (after MSD) rounded up to the closest $50, and then multiplied by 7. But doesn’t match what I’m seeing here.
The LH Calculator is correct. I believe BMW rounds the payment up to 1000. 7 x 1000 = 7000. That’s the worst-case scenario. God only knows what the dealer is doing.
There is no change. Your cap reduction is 7193.05, not 9900. Here is what’s happening…
Lease Inception Fees…
MSD’s 8400.00 (should be 7000)
DMV 971.00
Taxes 664.12 (explained below)
1st Pay 949.83
TOTAL 11106.95
Rebate Cr. 2706.95 (explained below)
DAS 8400.00
Taxes: Note that the dealer WS reflects total taxes of 3532.24. However, that includes payment taxes of 79.42 each for 36 months. 36 x 79.42 = 2859.12. So, the lease inception tax is really 3523.24 - 2859.12 = 664.12. (you’re already paying the monthly tax of 74.42 with your payment). No need to double count!
The 2706.95 rebate credit is just the difference between the 9900 rebate and the rebate CCR of 7193.05. This remaining credit is used to offset a portion of the lease inception fees so that your DAS = 8400. As such, your cap reduction is fixed at 7193.05 meaning your adj cap does not change.
Hope this helps. ??? Let me know.
EDIT: Suggest you check with BMWFS regarding their MSD policy.
I dont know know off hand what bmw does, but some banks round the monthly pay before the msds are applied up, rather than the post-msds monthly. Of course, in this case, that would only get you to $7700.
The upfront sales tax on the $9900 rebate is $903. Some other fees such as document fees are also subject to sales tax. So the upfront tax is more than $664.
Not according to an analysis of the dealer WS. Furthermore, checks and balances confirm otherwise. The only sales tax showing is 3523.24. After deducting the total payment sales tax, I get 664.12.
9.125% x (7193.05 + 85) = 664.12. I’m betting the 122 upfront fee includes an 85-doc fee. The entire 9900 rebate does not get taxed. It’s a common misconception to believe otherwise. Only a portion of the 9900 rebate gets taxed including the 7193.05 rebate CCR.
BTW… lease inception fees should be…
MSD’s 8400.00 (should be 7000)
DMV 971.00
Upfront Fees 122 (I left this out in my above post but included it in the total)
Taxes 664.12 (explained below)
1st Pay 949.83
TOTAL 11106.95
Rebate Cr. 2706.95 (explained below)
DAS 8400.00
Dont recall if bmw rounds up to the nearest $50 or nearest $100, but the pre-msds application payment is somewhere in the $1025-1050 range, so if it rounds to the nearest $100, it would bump the msds to $1100 each. That’s if they compute off of the pre-msds payment amount like some brands do.
The OP’s payment is 949.83. Rounding up to the next whole 100 yields 1000…
7 x 1000 = 7000. I doubt they double round or, round up twice. … round up to 1000 and then, round up again to the next whole 100 yielding 1100. That’s nuts for which there is no rationale. YIKES!
It does if you round up the post-msds payment. It doesn’t if you round up the pre-msds payment, like some banks do.
There are some banks that calculate the payment based off the normal money factor, calculate the msds payment amount off of that monthly, and then give the msds mf reduction to establish the now lower monthly payment (but don’t recalculate the pre msds amount with the lower payment).
Ah, now I see what you’re saying … pre v. post money factor. The pre-MF would mean an OP payment of 1017.19. Rounding to the next 100 yields 1100. Got it. Still, that’s not very nice.
@Otherman
Thanks for the info. Very helpful as I’m planning to order a 2025 ix as well.
Newbie to leasehackr, not sure if it’s ok to share the name of the dealership you got the deal. If the exact dealership is not cool, do you mind sharing which area the dealership is in? Thanks.
Why order?
Do you need a specific build and are you willing to pay a lot higher payment for that specific build? Usually negotiating with a lot of dealers gets one the best payment but most likely not their ideal build.
I need to order bc I need to keep my ICE until the summer is over. Also I want to get sports package, air suspension and active steering. I don’t see a lot of ix with that option on the lot.
