You’re dividing up the inception fees+taxes and adding to $441? Comes out to $546.75 - not worth it because of the car itself or not worth it because of the MSRP?
Honest question btw, appreciate your insight.
1 Like
Personally, I am not a fan of the 3 series. In my opinion, all you really get is a big screen and Optima style taillights. The 4 cylinder is loud and coarse. For $560/mo, you can get a fully loaded Q50 Red Sport with 400hp, twin turbo V6…if you can live without the AppleCar Play (which BMW actually charges monthly for). The MF is too high for this class (A4 is 0.00005), S60 T6 is also a way better lease. The good thing about the Audi is that with a virtually 0% interest, you are paying towards the car itself, and if you go over the miles in these 3 years and add some wear and tear, you will be able to trade out of it without being upside down by 5-7k. We all know the 3 series will not be worth $30,000 after 3 years (That 60% residual). They are barely RETAILING for $23,000 at the moment. Trade in is under $20,000. They will be charging you an MF of 0.001xx, which adds almost another $100/mo to the payment, which you are gifting BMWFS. I would look at Infiniti, Audi, Volvo…
Acura also has amazing deals at the moment. See the attachment.
1 Like
I appreciate the information and sheet… these numbers are good to know going into it. I’m not a fan of anything Acura puts out (aesthetically, on the exterior… interior’s cool though). But I love Audi, so I’ll do some digging there.
At $550-600/m with ~$4k towards tax and inception fees, what makes sense in the Audi lineup?
Just fyi it is not a good idea to pay $4k upfront on any lease.
1 Like
What are the cons of doing so? I’m not looking to pay anything towards cap cost, only the inception fees and taxes in full (which seems to fall around 4k).
If I roll those fees in, as far as I understand, they’re increased by the MF.
No, MF is a set number and not impacted by what you roll into your monthly. Anything you pay upfront will be lost in case your car gets totaled/stolen. Insurance will reimburse the lessor not the lessee.
You can pay for MSDs upfront, which will actually lower your MF and will be paid back to you at the end of your lease (doesn’t matter if the car is totaled or you return it at the of your lease or trade it in early etc).
Yes I understand MF is pre-defined, but what I was saying is:
If I have 4,000 worth of taxes and fees that are fixed fees associated with taking on the lease - this 4k will be rolled into the cap cost, and will be increased by the MF. Over the course of the lease, I’d have paid “interest” on it as though I was taking a loan on 4k. Isn’t that the case? It’d be like applying a 2% APR on it from what I’ve seen in the calculator.
But I hear you on the reimbursement…
Then you go on to recommend Acura with a .00225 MF. Makes total sense.
2 Likes
Sheesh, someone doesn’t like BMW’s…
I’ll admit it gets real pricey real quick kitting out a 330i but your comparisons are all over the place (values you are seeing now are on F30 cars)
You may be right that the residuals are pumped up but until these start coming back just in time for an LCI, we won’t actually know their resale.
The NY dealers are a nightmare took me awhile to find someone willing to even negotiate and wound up for the first time ever with a loner because the prices were ridiculous…I think the money down you’re getting quoted is a bit much…eventually they’ll be looking to get rid of the 19’s sooner than later…
Acura has better residuals and 15-17k discounts. You can buy it the car in few months, and finance through a local credit union at 2.9-3.5% apr.
In Audi’s case, per contract, the lesee gets the excess owed during insurance payout. Its no different than financing a car.
I would recommend the A4 2.0T Premium Plus. Also the A5 is worth a look too! I would personally prefer an Infiniti Q50 Red Sport or Volvo S60 T6.
Oh sorry I misread what you had said, yes you are paying interest on those fees by rolling them into your monthly but that interest is about 7 or 8 bucks a month. If you want to risk your $4k to save 7-8 bucks a month then of course that is your decision…
Why would you buy the car if the object is to lease?
In some instances, when the residual is much less then the market value, it makes perfect sense to buy out your lease (ex. GS350, A4, etc…) In many cases, leeses go over the miles, have to cover wear and tear items, and pay the disposition fee. If you go over by 10,000 miles on a BMW lease, that’s an automatic $2500 for the miles and $395 disposition fee. Just to give the car back, you have to cash out at least $3000 with no wear and tear. Trading a BMW in will give even a greater loss, since the leesee will owe about 8-10k more than its trade in value. In Audi’s, Lexus’s case, even if you go over these miles, put some dings and scratches, the car will cost really close to the payoff…so you can either buy it out for less than it’s market value, or trade it in without taking a loss. You realize the GS350 has a 40s residual and a virtually no interest MF (0.00005), which means it will cost $24,000 after 3 years (45% of $55,000). They sell for around 30k, being a 2016 having 36-40k miles.
The point of a lease is to mitigate loss of resale value while paying the lowest possible payment for that car. (At least here it does)
That deflated residual you’re paying for now goes kaput should the car get wrecked and repaired.
Whether you buy or lease, the car equally falls in value. Yes, an accident will cause a $1,000-$2,000 loss…yet after 5-6 years the difference will be much less. In BMW’s case, they drastically over inflated the residual, yet attached a very high money factor to it. In Lexus’s case, they give a lower residual and a ~0% MF. This way the payments balance out, but in the case with Lexus, you can always trade out of it without taking a hit, unlike BMW. Even if you go over the miles by 10-15k, the trade in value will still be really close with the payoff. In A4’s case, the residual is $21,000 assuming a 49k msrp, which is less than it’s market value in 3 years. Now if you need to trade out of either the 330i (30k residual), or A4, take a guess in which you will be upside big time?
You sure about this? What happened in a couple of months?
2 Likes
I could also just…turn the car in and not worry about the residual…