Hi Guys,
I leased a BMW 430i GC Base Model Loaner from a dealership in Glendale.
I was a bit confused about how to use the leasehackr calculator. Especially on some parts like Downpayment breakdown.
For my understanding, 35209 is the selling price or is it the 41640 one?
I paid the dealership $1700 as downpay and from the calculator, the results could not match to actual cost.
I attached two photos from the deal and hope anyone could help me understand these fees.
I am really looking forward to learn if my mistake on this lease and trying to get relatives a better deal on her upcoming lease. Thus I am really hoping to get some advice from this forum.
Thanks to this forum I learnt MSD and aim for 1% MSRP lease to avoid getting ripped off:), now just want to learn more if I can.
Again, thank you for reading and helping!
Ouch. I’m not an expert by any means, but here goes. I appreciate any corrections here. It looks like your effective monthly comes out to 613/mo.
The actual sale price of the car is 41,640. MSRP based on residual (assuming RV 57% on 36 mo) is 46,110, so a discount of only 4,470 (9.7%). This should have been much higher (15%+) given its loaner status. That was mistake number 1.
Mistake number 2 was allowing the dealer to talk you into a “down payment” as part of the cap cost reduction, which should not have been the case. Instead the cap cost reduction should have consisted of only the rebates/incentives you qualified for.
I’m not sure what the money factor here is either, as it doesn’t specify. Someone smarter than me can probably do the math backwards and see. What I’m not 100% certain of is if the total rent charge is calculated pre or post MSDs; either way I don’t think that was the biggest problem with this lease, it was mistakes 1 + 2.
The 1% rule is nice, but outside the context of what comparable models are leasing for (and knowing that your cash due at signing should be included when thinking about the 1% rule and effective monthly payments), I think you have a ways to go before leasing another vehicle.
Hi Peezy.
Thank you very much for your reply! Definitely need to work on discount on car. Also I am sure you are right on 1700 downpayment part.
My DAS was 1700, and actually i think my effective payment per month is 415.7 or 416 after tax. Total payment is 15000+350 disposition fee. It should not be 617 right? I checked my leasehackr score it was only 9.4:(
Next time I would need to prepare first then move. Was a bad move that I did not ask clear about downpayment.
Well noted your advice and will keep an eye on the downpayment and discount part!
Thank you!!
Sorry! My math was off and didn’t subtract the rebates and MSDs from the total lease cost, my mistake. So certainly not as bad a picture as I had painted, but some room to grow. Thanks for pointing that out to me
Hi LeaserOC.
I felt kinda good after the deal however in this forum people get better model say 440i with cheaper price. That makes me wonder if I made a lot of mistakes.
Peezy previously mentioned that discount is really bad on this car, which I believe is correct.
I did put 7 MSDs and they do not allow me to put more. This trick is learnt all thanks to this forum.
Thank you!
Understood!
MF was .00165. Did 7 MSD and turns out to be this deal.
What I found extra suspicious is that their data sheet is really complicated.
Thanks!
Hi Orangeman96,
Wow your deal is amazing! I am really jealous of that:D.
Can you share some tips on how to achieve that? Should I hire a broker like you do?
Thank you!
Luke, Yes I would absolutely suggest a broker. the many fantastic brokers on here can help you get close but it all depends on many factors. @HN308 killed this deal for me.
This lease contract is standard, I believe nationwide (likely mandated by the fed govt) so nothing shady about it. Not sure why, but it never says the MF so you have to do the backwards math.
In the end, putting $1,700 “down” isn’t bad and doesn’t really matter what it goes against since some things are being paid upfront while for example the acquisition fee is being rolled in. It’s easier to do it this way for the dealer rather than determined the exact 4 items that would equal $1,700 and in the end only about $500 went to true cap cost reduction.
As other people said, decent deal so don’t beat yourself up too much but have seen better deals here.
