Just Leased a 2016 BMW 330e Last Week...How did I do? and Some Questions for Experts

-I live in NC; I intended to title the car in NC.
-I drove to DE to lease a 2016 BMW 330e from a dealership.
-The car was being used as a demo with 2000 miles on it the day I arrived.
-BMW was offering a August 2016 330e specific lease deal with $3000 cash incentive and requires $3000 down (see here: http://www.bmwusa.com/special-offers/lease.2016-330e-Sedan.html).
-MSRP = $57120.00 (all the bells and whistles, every option you can get for a 3 series)
-I have no intention of keeping this vehicle for any reason beyond the 36 month lease term as this is my very first hybrid and even if I like it, I want a more advanced version in the future.
-THIS WEBSITE IS VERY HELPFUL. I used it in advance and while in negotiations.

-I asked for the $4001 tax credit on the car per the IRS website.
-I was then told by dealer that I “do not rate this this tax credit.” Rather, the BMW lease incentive offer of $3000 comes from the e-vehicle tax incentive. So the $3000 is “given” to me by BMW and BMW keeps the other $1001 as I am not buying the vehicle outright.
-I ask for and receive $4000 off the sticker price due to the miles on the car. I should have asked for more, but felt $4000 was about right…they agreed quickly, so may be I could have gotten 6000 off?
-I also am a recent MBA graduate, so I asked for and received another $1000 from a BMW promotion for leasing vehicles as a recent grad.
-The offered me MF of .00360 and no MSD.
-I countered asking for MF of .00100 and 7 x MSD as I have superb credit.
-We all agreed to MF .00120 and 7 x MSD.
-I agreed to pay the $925 acquisition fee, all taxes, misc DOC fees, and down payment up front.
-Since I am titling the car in NC, the tax is 3% only on the leased amount. The dealership, in DE mind you, told me this was wrong, that I had to pay taxes on the gross capitalized cost or sticker price. We argued for a while about this. It was 6pm on a Saturday, so no way to call the DMV to confirm. So the dealership agreed if I could “prove” the 3% tax was only on the leased amount, they would refund upon showing the “proof,” so I had to pay taxes on the whole price of the car (I was not happy).
-I asked for a 65% residual for 12000 miles, they agreed.

Final Lease Terms Summary:
-MSRP: $57120.00
-$4000 dealer cash off MSRP due to the mileage and wear.
-$3000 green car tax incentive applied up front
-$1000 new grad incentive applied up front
-65% residual
-12000 miles a year for 36 months
-MF = 0.00120 or 2.88% APR
-MSD = 7 times or $2800
-Misc fees = $283.66
-Down Payment = $6724.25
-Monthly payments = $367.83 ($13241.88/36)
-Total amount paid = $23124.05

-How did I do overall? please rate the monthly payment achieve and terms. Above average? below? poor? well done?
-During negotiations, the payments always remained above $360. It seemed like the dealership was screwing me with the large down payment to recover other losses in terms. Looking back, $23124.05 seems “high,” but may be I am wrong.
-Am I wrong about the NC 3% highway tax and only being on the leased amount vice the sticker price of the car?
-See the picture below summarizing my lease terms. Did I get cheated anywhere or is this standard? Picture here: http://imgur.com/Yivh8rn

Thank you in advance…



I’m just going to leave this here…:http://www.bimmerfest.com/forums/showthread.php?t=927645&highlight=


Down payment of $6724.25, ouch! You have been had. Like Phantom said, you should have come here before signing on the dotted line.

Don’t listen to that hater, that is a good deal. after you subtract out the msd, add the remaining drive off into the payment, you are at about $475 a month for a $57K msrp car. that is a great deal especially if you get a state refund. you should have asked for the drive offs to be rolled into the lease since the mf is low but that really only matters if your car is stolen or totaled

How can MF can be considered low if the Rent Change in the contract amounts to $3,500?
That’s more interest that I would pay on the 7 year $20k used car loan with the rates these days.
If he rolled everything into the payment rent charge would be even higher.

I was also offered 0 down ~470/month (incl 7% tax) + 7 MSD’s quote on email so I don’t think you did very bad.

The mf is 2.88%. that is low.

Buy rate is .00137 minus .00049 for the MSD’s the MF should have been .00088. When they offered .00360 I would have been in my car driving home, maybe it was before they ran your credit, but afaik dealers can only mark up the MF by .0004, so i don’t even know how they get such a high MF. I also would have had a deal in writing before i got in my car to go anywhere. I also think your sales tax is incorrect, my in-laws are looking to lease in NC and the research i came across indicated 3% of the sale price, not 3% of the monthly lease. But if i am wrong please let me know, since i am helping them out with their lease.

0.00088 minus 0.00020 if you can get the corporate rate discount = 0.00068 which equates to 1.63% APR.

But in all fairness most don’t qualify for that, the .00088 is negotiable to anyone with tier 1 credit.

$4k of that is rebates though.

Read OP’s post again, the rebate belongs to BMW. Dealer already applied $3000 rebate.

Here’s what a 23k lease deal should look like

1 Like

Read OP’s attached lease contract. Section 9B.

You are not correct about the NC tax. The sales tax is 3%, but NC also charges you tax bc it considers the vehicle a part of property tax or something like that. I did the same a month ago. Bought and titled in NC, but got a letter asking for another $995 from the state for taxes.

They give you 3 months to submit it, so you can change in that window.

9B: 3: Amount to be paid in cash: $8700

Fees, MSD, and 2700 “down.” Which is still not great, but it’s not as crazy as $6700 down payment in cash.

I guess OP took advice and stopped looking at the post. On further review, the total lease cost as 23k is misleading. It seem the cash is 8700 minus 2800 MSD which is 5.9k drive off. Payments are 12k, total is 17.9. Divided by 36 is 500 a month all in. Still meets the 1% rule for a lease (original 57k msrp and sales price 53k), so I will change first opinion and say it was decent deal.

Where did you get the mf = 0.00088 number
My dealer is not willing to go down to this number even though my credit score is upwards of 800


Can someone explain how did the monthly number came out to be $279?
What mf are the BMW guys using to go to this monthly number?