Looking to get into a 330i lease

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Hi guys, this is my first time posting here and I’m not sure how or where this goes as far as categories go.

I currently drive a 2018 Honda Accord Sport 2.0T that quite frankly I’m not in love with anymore… especially because I feel like I’m paying so much and I didn’t get a good deal on it.

I really want to get into a BMW 330i (with an MSRP of about 48k) and while I owe more than what my cars worth (roughly $6k) I know I have to roll that negative equity into my lease payment. Right now I pay $580 a month and my intention is to get into the new lease rolling in that equity to be roughly the same if not $600/mth max.

I guess I just want to know if this is realistic without a wild number DAS.

If you could get 11-12% off a $48k MSRP 330i then getting a monthly close to $600 is do-able with the right rebates once your negative equity is rolled in.

Your best bets:

  1. try to find one of the 430i gran coupes that seem to have amazing rebates and big discounts these days. If you could manage to find a loaner even better. That might have the room to hide your negative equity.

  2. wait a couple of months until the dealer lots are full of 2020s and hunt for a stellar deal on the last of the 2019s.

  3. Drive your honda for another year and have less of a problem with negative equity

So the first dealer I went to said that about the 430 but the thing is I just really want a 330i, as far as rebates I see all these different names for rebates on this site and I honestly don’t know what any of them mean maybe someone can break it down for me

well there is
lease cash (varies by region): currently $250-1000ish
Loyalty (for current BMWFS customers): currently $1000
Conquest (for owning a competitor, which basically is anything with 4 wheels and an engine): currently $1000

these are all July numbers.

You can stack lease cash with either loyalty or conquest. But you can stack loyalty and conquest.

So in NJ you should probably be eligible for $2000 in rebates (lease cash and conquest).

Also In order to get close to $600/month you’d have to be able to pay the drives offs up front rather than rolling them in. Also are you in a position to do multiple security deposits to lower the MF?

Yeah I figured the drive offs I’d be upfront which I’m ok with and as far as MSD’s I can do them as well, I’m just wondering what those numbers are because max I think I want to put 3k down maybe 4 if I have too

well in Jersey you’re looking acquisition fee of $925, + Dealer doc fees of $600-900 + DMV fees of $200ish? + first month. So you’re looking at around $2,600ish DAS before any MSD. Each MSD would be about $650. if you did the full 7 you are looking at a total drive off of $7200.

depending on where you are in Jersey it might be worth the drive to either PA or MD where they cap the dealer doc fees ($144 in PA and $300 in MD).

The fees DAS are good as far as the MSD’s, are they 100% necessary to get it close to 600?

Probably.
Just to give you a sense. I leased a 52,XXX MSRP 330i and got 10% off. with 7 MSDs my monthly is $479 (including 9% PA tax). If didn’t do the 7 msds and rolled in $6k in negative equity my monthly would have been $699.

If you could get an 11% discount before rebates on a MSRP of $48,000 and another $2000 in rebates then with your $6k in negative equity you’d be looking at a monthly of $590+tax without doing MSDs. with the MSDs you’d be around $570+taxes

what state are you in? How does it treat leases vis-a-vis sales tax? what is the sales tax rate

So the car would be registered in New York where sales tax is 4% I believe and honestly that scenario is perfect as far as 590+tax I would be ok with that. I just wonder if any dealer would be willing to work with that, i guess I should push for 11% off for msrp

Which county in NY has 4% sales tax? :thinking:

Oh I just googled it I guess New York tax rate is 8.5? Combining state and county

In NY i believe you have to pay the 4% sales tax upfront. But yes for you the ball game would be all about getting a steep discount before rebates to make this possible. and then paying the drive offs up front instead of rolling them in.

There are two schools of thought about paying drive offs up front.

One view is to minimize you up front cost and hence the risk of losing money if there is a total loss of the vehicle before lease end. If you pay the drive offs up you effectively lose those and would have to repay on any new lease. where as if you had rolled them in you would have only paid what ever fraction of the total up to that point. the downside is that you also pay sales tax and interest on that money.

the second view says why pay any unnecessary interest and sales tax that you don’t have to. This views minimizing the total cost of the lease as the goal and accepts the risk of losing some fraction of the drive off in the case of a total loss.

My own view is that the first option is a good one if you have limited liquid capital and or interest rates/sales taxes are really low but the second one is preferred if you have the cash to spare and or interest rates/taxes are high.

I would recommend paying off the ends give equity yourself or riding out the current car a little longer.

The trade and negative equity will complicate getting a good deal on a 330i.

It’s always a bad idea to roll that much negative equity. The new 3 series will be around for a while and better deals will most likely be available around the corner.

You’re not wrong, I just feel like I’m going to wait for too long the value of my car will go down even more but I guess that also means less equity as time goes, how long would you say I should wait

but on a 2018 you are currently on the steep part of the depreciation curve. it slows down substantially the longer you go.

A year or so. Accords retain their value the best in the midsize sedan market, especially one with the 2.0T engine.

You’re payments are already on the high side so you’ll pay more into equity. Honda notoriously under values their residual values compared to real world market performance.

This means Honda is able to get you to pay them more money and they make a larger profit when reselling lease turn ins.

I think I forgot to mention that I financed this car!

I figured it was financed. My point still stands.

Hold onto it a little longer.