Deal check: BMW X3 M40i

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Long time lurker first time poster. I’ve learned a bunch from everyone here so thank you for all of your wisdom. I’m still learning. Looking at the below deal on SAL. Any and all input on how it stacks up would be greatly appreciated. Many thanks in advance.

Looking at the ad it looks like the original lessee signed up for a 12k/48 lease and the car is significantly under its allotted mileage. If you take it over (the only valid reason would be to put >1500 mi/mo) you’ll be liable for a couple of service rounds at least and the dispo fee.

If you don’t drive much you can get in a new 2020 one for less and get free maintenance for the life of the lease.

Thanks so much for the quick response. I need 15,000 miles a year. Should have mentioned that in the original post.

15k/year is more on the “Buy” side than “Lease” and you’re unlikely to get a financially sound deal on a new German car lease at that mileage level. You can ask the seller for more incentives to bring the payment closer to 600.

The total cost of this lease is around $45k plus I don’t know if there was some down money on the table to end up with 0 equity on a $63k car four years later. B A D.

Got it, thanks so much for the insight. So I would really need to get them to $600 a month for this to be worth my while. Greatly appreciated!

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Hi again guys,
Trying to help my sister secure a lease on a 2020 X3 M40i. Attached is the lease worksheet. How does it look? I’m a new member here and apparently I cannot post new topics yet.

Thanks so much

Seriously, run. The “vehicle profit” is just another discount.

Edit: forget my negative equity question - I just saw “still owed”. Seriously though, I think this lease sheet was written by a conman.

I like how they marked up the MF a little bit and then went all the way in with the “reserve profit” of an extra .00020. Nice touch.

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Yeah push for base MF. Can someone also confirm the backend is only 500 for a 66k car?

All good information so far, keep it coming. Is the residual on a 36/10k mile lease 56% or 58%?

Base MF is 0.00099. The RV isn’t something they can screw you on - it’s 56% for 36/10k.

What state are you in, the doc fee is pretty high.

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Honestly, the way they broke it down is crazy weird, but with a msrp 66k, the discount (including their minus profit) is not bad at 9% pre-incentive. You have at most another 1-2% discount in this climate.

But the MF is marked up to the max. You maybe be able to negotiate a lower doc fee as well - that’s straight profit for them.


Yes, the doc fee is straight profit. That being said, some states require that, even though there is no cap on doc fees, they must charge the same doc fee to all customers. If this is the case, you just need to push for an additional discount to help offset it. I don’t know what the rules are in FL on this, but I have seen that most FL dealers have very high doc fees.


It is in Florida guys. My sister should be Tier 1 or “Super Elite” as she’s over 700 and qualify for the .00099 / 2.3% rate.

They said the $899 dealer fee is non negotiable.

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BMW dealers can mark up it 0.00040 even if Tier 1. But this deal shows they marked it up 0.00050…

Anyway, it’s a bad deal so just contact other dealers

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Bad in regards to the base rate of .00099 being marked up or bad in other ways as well? Because based on the rate markup alone, we will walk if its not base rate. Is there something else that smells funny on the lease worksheet? There is a little meat left on the bone…

How are they getting from the MSRP after discount (55900) to the selling price (60788) in the capitalized cost breakdown???

Also, the base rate is 0.00099 so that’s just not correct and while their max 0.0004 reserve is correct they end up marking it up .00005 which isn’t allowed?

Looks like classic scummy FL stuff to me!

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Hi Rsantoro,

Yeah I can’t figure out the 55900>60788 math yet, hopefully with everyones help here we will.

Regarding the base rate, I’m sure with my sisters excellent credit she’ll get base rate of .00099 or we will run away from this deal.

They are doing something fishy.

They are charging you @ 15k miles/yr residual (53%). Then they are charging you over the maximum allowed markup on the MF. Then the sell price is weird.

Just move on to other dealers.

Unfortunately, they don’t have to give you the base rate, even if you have excellent credit. That being said, they are not allowed to mark it up beyond 0.004 if you do. (I don’t know the markup rules for sub-prime credit, though I’d imagine the 0.004 markup still applies)

This is not correct. They list 53% as the base (for 15k/36) and add a 3% bump for 10k. These are both correct.