Generally $0 sign and drives don’t make a lot of fiscal sense since paying double interest on first payment and also interest on dealer and licensing/reg fees.
1 Like
How?
Can you explain with Math? where the double interest is being charged.
Instead of making a payment and paying rent charge you are adding a whole payment to the cap and paying interest on it. You can run the two scenarios in the calc to see what that does to payment and overall lease cost. Dealer fees and plate and reg get added to cap too with interest being paid on that also.
I see what you are saying.
but again end of the day I look at my total out of pocket 35 month cost. if that number is good to me for my baseline, I don’t care if dealer charged me double or triple interest. i care less.
This is real example, not a BS. - 24 LCI G05. MSRP 77595. I just picked up on 01/21, DAS 0. 877 pm x 35 payment
I go there, waive flash my ID, give them my autograph which they need for BMWFS, shake hand, get 400$ accessories free without asking and just drive back.
do that math, does it look bad??
I used the term ‘fiscal sense’ because by adding a payment amount to the cap and adding dealer and govt fees to the cap you are now paying interest on all those additional thousands (?) instead of just writing a check for it upfront. Most commonly people will pay for first and dealer/govt fees upfront to avoid the additional interest.
To truly analyze you need to compare total cost of lease for both scenarios in the calc to see what it is costing you. (I ran some quick numbers and dependent on how much actually rolled into the cap but by signing/driving you are paying several hundred more dollars over the lease term than if you had just paid upfront.)
Take a stab at the math in the calc and post links…you are missing a lot of info on your posted deal to really know anything about it…did you get base MF? What discount off MSRP did you get? Were there any incentives or loyalty? What was amount of fees rolled into cap? Did dealer hide BS fees that were rolled in? Could have/should have done MSDs, etc.
I have been in the game for so long 12+ years with BMW leases.
I never posted my deal here and NOT going to post it. Not relevant to the discussion.
You can just do the math
877 x 35 payments = 30695 total lease cost for 24 LCI G05 with 77595 MSRP for 36/10. Signed 01/21/24.
Does it make sense?