Need help to validate BMW i5 Lease offer

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1

Hello everyone,

Trying to negotiate a lease on BMW i5 in Dallas, TX area. Attaching the dealer quote:

  1. Dealer quote
  2. I have an existing lease of BMW 530i which is completely paid and due for return in Mid jun’24. The dealer is giving a trade-in of $29,000 for it (My residual is way higher and at this time the used car price is lower)
  3. I had put a MSD of $3,500 when i leased my 530. The dealer is taking the SD as a input (kind of down payment), while calculating the quote. So basically no refund
  4. If I return the car as is, I will have to pay BFS $1,500 based on the lease return assessment (Basically Tire replacement and disposition fee)
  5. currently there is a EV tax credit on sales tax, which brings it to 1% of car value.

I am trying to understand, whether the deal I am getting is good or not.

Also, I am not able to understand who to use the Lease calculator with the value provided by the dealer and what should be my ideal negotiation value. If any one of you esteemed folks can and help, I would be grateful.

Thanks you for all your help.

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2

Sounds to me like you’re better off paying the tire replacement rather than let the dealer yank your MSD reserve to make the deal as a trade in.

3

There’s $3,400+ in equity if he trades + no charges for tires or anything else from BMWFS.

4

There’s no “kind of”

Does that money become MSD on the new lease or CCR aka down payment?

5

Not MSD. It is down payment.

On top of the no return of $3,500, he is asking for more down payment - Slabs are in quote image: 2000,3500,5000.

I haven’t spoken to him about MSDs as yet and whether they can substitute for down payments. But he is not willing to let go the $3,500.

1 Like
6

Your choice: The old MSD either comes back to you now from BMWFS or becomes MSD on the new lease. Anyone saying otherwise tell them to GTFO.

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7

Got it. but in that case the monthly lease payment will shoot up drastically

8

You can fool your brain into thinking any asset you hand over will reduce your payment.

Aside from scale, what’s the difference between this and handing over the deed to a house with $100k equity just to have a $400 payment on a Ferrari?

2 Likes
9

As is always the case, you need to start by putting together a target deal. You can not effectively negotiate if you dont know where youre trying to get to.

2 Likes
10

My current lease residual in $33,600. I am getting the same model/year/near about mileage for $31K from used car dealers. So my understanding is that there is no equity. What I can do is to ask him to run numbers without the tradein to see what changes.

11

My current lease is $480/month, which i am comfortable paying. Do not want to go above it and also do not want to pay any down payment. as @max-g said, i would prefer to roll in my MSD of $3,500 to the new lease.

12

Your sheet shows the trade payoff as $25,616 and they’re offering you $29k for it.

13

This isnt a target deal though, thats a budget of what youre willing to pay. You need to put a target deal together to determine if this vehicle meets your budget.

14

What I was told was tat the pay-off amount is what they pay to BMWFS…so the higher trade-in i can get, the better it is for me

15

I hear what you are saying…I always based my search ion what i can pay…The price of $55,600 for similarly configured car after discounts is the best I have seen among 4 dealers in DFW metroplex.

16

I did try the equity hacker and it quoted a $27,500 for my car

17

You need to take a major step back here. Put together a target deal without accounting for your current vehicle and it’s MSD and equity. Way too many factors that are skewing the numbers which is more of a chance for a dealer to screw you over. Get your actual payoff from BMWFS. Perhaps @IAC can help.

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18

If you don’t want to pay any down payment, and you are comfortable at $480/mo, you will need to look into options other than the i5.

You also cannot do MSD’s with TX deals with tax credits right now for whatever reason, correct @IAC?

1 Like
19

So that’s your baseline on equity.

Just keep in mind that dealers might offer you more equity as part of a new lease, but that’s just an alternative to discounting. I just finished a lease where I had an equity positive trade and some dealers offered very high values and average discounts, but the most aggressive discounts had the lowest equity. I ended up selling the car separately from the new lease as I couldn’t get the best of both worlds.

20

May i request help fill the calculator…not able to figure out where all the values should go