[Slaphappy1121]

I am leasing an 2022 X5 xDrive 40i in Pennsylvania.

Final Price is $75,995
Cap Cost Reduction is $4,500
3 years, 15K miles per year

I am being told the price is $1,235 per month, with $0 out of pocket other than taxes, doc and acquisition fee.

It seems expensive, but they say the money factor sucks right now and may be as high as 8 - 9% which is why they are typically not doing leases.

I worry about the car after year 3, which is why I thought about doing a lease, rather than a buy to not have maintenance headaches.

What are your thoughts?

[DG-X5]

Originally Posted by Slaphappy1121

I am leasing an 2022 X5 xDrive 40i in Pennsylvania.

Final Price is $75,995
Cap Cost Reduction is $4,500
3 years, 15K miles per year

I am being told the price is $1,235 per month, with $0 out of pocket other than taxes, doc and acquisition fee.

It seems expensive, but they say the money factor sucks right now and may be as high as 8 - 9% which is why they are typically not doing leases.

I worry about the car after year 3, which is why I thought about doing a lease, rather than a buy to not have maintenance headaches.

What are your thoughts?

That's complete BS on the money factor - the max they're allowed to mark it up is 0.00040, meaning it isn't crossing a 1% difference at maximum markup. They're just trying to force a sale. Move on to a new dealer or find a broker; this one isn't worth your time. They are overcharging for sure.

Try BMW of Springfield NJ or Reading PA.

[TurtleBoy]

As mentioned, they are lying about the interest rate. The base MF is currently .00111 so the highest it could be is .00151 which equates to an interest rate of 3.62%. That said though, the number they are quoting may be legitimate as my quick/rough calculations came close to their number.

You need to get all of the details of the deal to draw a conclusion. That should include all fees, MF, RV, tax rate, etc. The RV should be 49% so that of course will lead to a higher payment than many have. I think certain areas of PA also add an additional tax onto leases so that could be raising it also.

[tag21]

Originally Posted by Slaphappy1121

I am leasing an 2022 X5 xDrive 40i in Pennsylvania.

Final Price is $75,995
Cap Cost Reduction is $4,500
3 years, 15K miles per year

I am being told the price is $1,235 per month, with $0 out of pocket other than taxes, doc and acquisition fee.

It seems expensive, but they say the money factor sucks right now and may be as high as 8 - 9% which is why they are typically not doing leases.

I worry about the car after year 3, which is why I thought about doing a lease, rather than a buy to not have maintenance headaches.

What are your thoughts?

I live in NJ and got quoted similar lease deal. They are insane. You can finance that for $1300 per month. After three years your loan will be $31k. If you want out you can trade it for more than $31k. Don't lease. My dealership said people are paying these crazy lease prices. They will keep increasing as long as people are willing to pay it.

[arciga18]

From sun motors ?

[Slaphappy1121]

I would rather not say who the dealership is, but I did get some more information.

The money factor is .00161 = 3.864 Interest Rate
Residual Value is 49% at 15K miles or 51% at 12K miles

Up Front Fees (Taxes, Doc Fees, Etc.) = ~$7,224
Cap Cost Reduction (trade-in) = ~$4500

So therefore, my loan amount is going to be $37,757.

They are still quoting me ~1235 per month...

[TurtleBoy]

Originally Posted by Slaphappy1121

I would rather not say who the dealership is, but I did get some more information.

The money factor is .00161 = 3.864 Interest Rate
Residual Value is 49% at 15K miles or 51% at 12K miles

Up Front Fees (Taxes, Doc Fees, Etc.) = ~$7,224
Cap Cost Reduction (trade-in) = ~$4500

So therefore, my loan amount is going to be $37,757.

They are still quoting me ~1235 per month...

I think you mean your depreciation amount. When you have a lease there is no loan and you pay interest on the depreciation as well as the residual value.

The MF appears to be marked up beyond what is allowed by BMWFS but it could be related to your credit score.

What is your MSRP and what is your tax rate. The taxes are paid monthly on a lease in PA. They should break down that $7,224 amount, that seems awfully high. You need to have moire detail in order to calculate the payment.

[Slaphappy1121]

MSRP is 75,995
Tax rate is 9%

The $7,224 does include taxes (which I believe is about $4K or so), doc and acquisition fee (~1300) and first months payment

Thanks so much

[TurtleBoy]

Originally Posted by Slaphappy1121

MSRP is 75,995
Tax rate is 9%

The $7,224 does include taxes (which I believe is about $4K or so), doc and acquisition fee (~1300) and first months payment

Thanks so much

Okay, sounds like they are trying to screw you somehow. That is not the way the tax on leases work in PA unless something changed very recently. Have them explain why they are charging taxes when they should be paid monthly.

You also can't include the first payment in that amount since you need to calculate the amount first. Tell them they either give you a full breakdown of everything or you walk.

[Slaphappy1121]

Thank you

[S_McTowelie]

I'd also add you aren't at $0 out of pocket. You're $4500 out of pocket since you're trading in a car that you own and using it as a cap cost reduction.

Have you run the numbers just buying the car? At that price with 9% sales tax, make a down payment of $7k plus trade in your car as apply that to purchase price. 1.9% financing for 60 months should be doable if your credit is okay. Monthly payment would be nearly same as lease. Could still trade in after 3 years if it looks like a maintenance headache.

It's wild the residuals on BMWs are so low these days. I remember years and years ago the general consensus was that BMWFS set them artificially high, thus making BMWs lease so much better than Audi's. It seems they have now fixed that.

[TurtleBoy]

Originally Posted by Slaphappy1121

Thank you

Anyways, that fee amount is not effecting your monthly payment since you are paying those upfront (although some dealers roll everything into the lease and then use the payment as a cap cost reduction). Here is what I came up with for your payment, it is only a few dollars off theirs.

[Slaphappy1121]

Thanks for all your help...so it seems it is not as far off as we thought. Much appreciated for all your help for the monthly payment.

[TurtleBoy]

Originally Posted by Slaphappy1121

Thanks for all your help...so it seems it is not as far off as we thought. Much appreciated for all your help for the monthly payment.

No problem. The monthly payment amount always seemed to be in th ball park to me, it is the other items that are questionable. It could be they just made a mistake and are charging you the sales tax as if you are buying. I have seen that before when someone was getting quotes on a lease.

[Slaphappy1121]

Actually, I found out the number was incorrect...not sure what he was quoting me.

Turns out it was really around $3K or so and included:
- Sales tax on trade in
- Tire fee
- Doc fee
- Acquisition cost
- Bank fee
- Registration/Title
- Sales tax on those items :-)
+ First Month Payment....

Definitely now more in line I would think.

[TurtleBoy]

Originally Posted by Slaphappy1121

Actually, I found out the number was incorrect...not sure what he was quoting me.

Turns out it was really around $3K or so and included:
- Sales tax on trade in
- Tire fee
- Doc fee
- Acquisition cost
- Bank fee
- Registration/Title
- Sales tax on those items :-)
+ First Month Payment....

Definitely now more in line I would think.

That makes much more sense. The only thing I would question at this point is the .00161 MF, see if you can get them to drop it to the base of .00111 unless it is credit score adjusted.

[tag21]

Originally Posted by TurtleBoy

That makes much more sense. The only thing I would question at this point is the .00161 MF, see if you can get them to drop it to the base of .00111 unless it is credit score adjusted.

Do you think $1228 is a good lease price? These used to lease in the $800-900 range a few years ago.

[TurtleBoy]

Originally Posted by tag21

Do you think $1228 is a good lease price? These used to lease in the $800-900 range a few years ago.

I don't think it is but then again it may be a great one given the market. I have not looked at anything to compare it to other deals, all I was doing was making sure the OP knew how the monthly payment was being calculated. The RV's are too low to make leasing attractive in my opinion but then again the most popular reasons for leasing are not financial based.

[alewifebp]

Yeah, deals are bad that's for sure. BMW of Reading is going to be your best bet.

[Mieleo]

I bought my car 3 years ago.
Right now ,The used car price is only $8000 lower.
$8000 ÷36 ＝ $222 per month.
Way better than lease.