hi - after months of going back and forth with a multitude of dealerships, i found what i thought would be ‘the one’, but everything went south once i got the lease quote from the dealer.
i live in chicago, so i have the chicago use tax (9%) plus illinois taxes (another 9%) and on the informal quote i initially got from the salesperson, the tax numbers did not match and my only conclusion was that they were attempting to pad the numbers. it was pretty black and white - when you multiplied the base payment x 9% use tax, it was not the same number as on the quote. same for the illinois taxes, they were charging 10.4% and 13.7% respectively.
i told the salesperson that the numbers weren’t right and they had the finance manager send me a full quote today:
note: i do not intend to put $8500 down - the initial, initial quote was around $750/mo and i mentioned that ideally we’d get it down closer to $500 - $550. also, when i asked, they said they the MF was .00093 and residual was 54% - so those numbers, i believe are correct. i should also mention that this is a demo with 2500 miles, but they are writing it up as new and factored in the additional miles. the manager also seems to have forgotten to include the $500 incentive, so i removed from my calculator so it’s apples to apples.
we’re about $75 apart and i believe my numbers are correct and they’re padding the numbers somehow.
here is my calculator and i inserted the dealer quote as a .jpeg, which i hope is visible. if someone could take a look and offer some insight, i’d be eternally grateful. thanks.
Not how it works. You are first charged IL sales tax on the base monthly then Chicago use tax on top that new monthly payments. So if your pre-tax payment is $500 and then $550 with Cook County tax, Chicago charges you tax on the $550/mo. You are also charged tax on any cash due at signing (rebates or down payment) and doc fee.
Contract is showing a RV of 52.76% (probably due to demo mileage adjustment) and a MF of .00106 (which is a very odd number for BMW as they’re usually buy rate + a multiple of .0002).
Calculator looks more like this, assuming your gross cap is selling price + upfront taxes and acquisition fee:
Most of the discrepancy is in how the LH calc is calculating upfront taxes, as I assume that upfront taxes aren’t double taxed and I’m having to manipulate it a bit to deal with the extra chicago nonsense.
I ran your numbers through my actual dealer calculator for Chicago and I get $477/mo with $10381 due at signing. That is using the RV on their worksheet. .00111 gets you to $490/mo. Seems like their numbers are more in-line than yours.
Your calculator also has the wrong fees for IL too.
i hear ya - you’re absolutely right. as i said, i’m not putting this kind of money down on any type of lease…
so, i’ve always purchased, not leased, but was looking at leasing because i thought it was considerably cheaper than purchasing - did it used to be that way and these are inflated, pandemic-induced lease numbers and that’s just the way it is? or did the pandemic not have any affect and it’s just the way it is now. or is my thinking way out of line?
i was waiting to get feedback before developing any kind of plan…i have to look at everything and most likely will need to re-think what is realistic in terms of monthly payment if i want this car…i don’t NEED a new car right now, so i may end up waiting. thanks.
thanks for the response…so part of this is the MF and residual is not what i was told it would be. as far as your comment about upfront taxes being double taxed, if i’m understanding Wam22 correctly, they are double taxed.
hi - thanks for this, it was enlightening to say the least. i’ll admit, i’ve had a few bad experiences with car purchases and because of that i automatically assume every salesperson/dealership is out to screw me over…
they have a demo and they also have a new 2021, with a slightly lower MSRP that they’ll sell at the same price as the demo. am i better off going that route?
re: monthly payment - i did want to ‘pre-pay’ some of what i would normally pay monthly because i’m still making less money due to covid fallout and will be selling my place and buying another and a higher car payment will impact how much of a mortgage they’ll give me. if i got the new car and just put the $ amount of my trade down (about $3800), what kind of payment would i be looking at.
September used to be a happy hunting month for BMWs in Chicagoland, when you could easily see 15-20% off of previous year’s loaners as dealers tried to dump them to avoid having to CPO them when lease support ended. Obviously this year there’s no such pressure as they can probably list pre-owned 21s for the same price they’re listing for now as new.
That being said, if you really love this X1 it’s probably obtainable not too far from your price goal as a 72-month purchase if you can find a dealer that’ll move to 5-10% off of list on loaners. Lots of Credit Unions have 72mo rates between 2-3% which would put you right around $600/mo pre-tax on a 40k new car loan. If you have to roll in the full 9.5% tax it’s hard to stay in that range but Chicago taxes make it hard to hit a number in any market. 3800 to put down would definitely help, but I’d only do it if you’re buying, not throwing it in to an already bad lease with double-taxes.
15-20% off demos??? wow, i can’t even imagine - that would seriously change the equation…there are dealerships elsewhere sitting on inventory that are willing to take more off the price, but i’d need to have car delivered or fly/drive/train to pick it up and it’s not a big enough dollar amount to justify any of those scenarios.
they’ll do 60 mo / 0.9% and that’s probably the route i’m going to take. thanks for your input!
Honestly, you won’t see numbers like these anymore (not for a long time). These days, you’ll hear discounts of 3-7% (even for loaners) and max markup on the MF. Every region is different, so you’ll need to shop around and probably be flexible on what’s available. GLWT
Maybe they are, but at a different rate. The upfront taxes in your offer sheet are $150ish less than the upfront taxes the calculator spits out. May be due to things not being double taxed or due to the difference in tax rates between the chicago bonus tax and the normal tax rate.
