Please Double Check My Lease Before Order Place

[jspdr]

Can you guys look at my lease deal below to see if monthly payment ok with respect to other numbers before i order.
Thank you

MSRP $64225
Selling price $60725
MF .000129
Residual %59
36 months/10k
Sales tax $2217.91
Acquisition $925
With 7 MSD's
Drive off $1200
No money down @$811 a month

[senoromar]

Originally Posted by jspdr

Can you guys look at my lease deal below to see if monthly payment ok with respect to other numbers before i order.
Thank you

MSRP $64225
Selling price $60725
MF .000129
Residual %59
36 months/10k
Sales tax $2217.91
Acquisition $925
With 7 MSD's
Drive off $1200
No money down @$811 a month

Some questions to better evaluate:
- whats your sales tax rate? It looks to be somewhere around 7.6%
- what's the invoice price on your build?
- besides the selling price and acq fee, what else is being rolled in?
- are you sure MF is 0.00129? That was the october MF, this month it is 0.00130 and after 7 deposits that puts it at 0.00081

When I put in the selling price and acq fee for the cap cost at 0.00081 MF and 7.6% tax rate, I'm getting a payment of around $796/mo. I'm assuming some other fees are being rolled into the lease but I need to know what those are and your exact tax rate to verify.

My comments:
- where is your selling price relative to the invoice? I would aim for no more thank 1K over invoice if possible.
- acquisition fee is marked up by $200; try to get it down to $725
- check the MF

Overall it looks like a solid deal but if you're in a competitive market, I think you can do a little better.

[///Armin]

MF is too high since you are putting down 7 MSDs

[jspdr]

Originally Posted by senoromar

Some questions to better evaluate:
- whats your sales tax rate? It looks to be somewhere around 7.6%
- what's the invoice price on your build?
- besides the selling price and acq fee, what else is being rolled in?
- are you sure MF is 0.00129? That was the october MF, this month it is 0.00130 and after 7 deposits that puts it at 0.00081

When I put in the selling price and acq fee for the cap cost at 0.00081 MF and 7.6% tax rate, I'm getting a payment of around $796/mo. I'm assuming some other fees are being rolled into the lease but I need to know what those are and your exact tax rate to verify.

My comments:
- where is your selling price relative to the invoice? I would aim for no more thank 1K over invoice if possible.
- acquisition fee is marked up by $200; try to get it down to $725
- check the MF

Overall it looks like a solid deal but if you're in a competitive market, I think you can do a little better.

Sales tax rate is 7.75%. The selling price is about $1k over invoice. Only $925 acquisition is being rolled in.
Total capital cost is 60,725+925+2,217.91 tax=$63,867.91
Your right, they said MF is .00130
But MF after 7 MSD's is .00088 does not match up.
I put a total down payment of $1,196.08, included first payment and T+T+doc fee.

[jspdr]

Originally Posted by ///Armin

MF is too high since you are putting down 7 MSDs

MF is .00088 after 7msd's

[senoromar]

Originally Posted by jspdr

MF is .00088 after 7msd's

Base MF = 0.00130

7 msd = 0.00049 reduction

Final MF = 0.00130-0.00049 = 0.00081

Anything above 0.00081 with your deposits means they are marking it up.

[senoromar]

Originally Posted by jspdr

Sales tax rate is 7.75%. The selling price is about $1k over invoice. Only $925 acquisition is being rolled in.
Total capital cost is 60,725+925+2,217.91 tax=$63,867.91
Your right, they said MF is .00130
But MF after 7 MSD's is .00088 does not match up.
I put a total down payment of $1,196.08, included first payment and T+T+doc fee.

Why is tax part of the cap cost? Does that have to do with the state you live in?

[hyde]

Does Haris' app include MSD option? If so, please get his app, it's extremely valuable and the information it provides is very clear and easy to follow. Get a copy of your invoice (advertised invoice) price from various sources and compare against edmunds or truecar. I cannot comment on MSD since it is not possible in my state, but others have more experience. All I wanted to say is, get the leaseomatic app!

[senoromar]

Originally Posted by senoromar

Base MF = 0.00130

7 msd = 0.00049 reduction

Final MF = 0.00130-0.00049 = 0.00081

Anything above 0.00081 with your deposits means they are marking it up.

Ok I got it, even though you are putting 7 MSDs they are only giving you credit for six. 0.00007 x 6 = 0.00042. Taking that off the base MF gives you 0.00088.

This means that they are counting one of your security deposits as a real deposit. This is usually waived if you have bought/leased from bmw before. Also the advertised lease specials waive the mandatory security deposit. I would bring this up with them, say that 7 MSDS should reduce it by 0.00049, not 0.00042, and if they say 1 deposit is required then point out the advertised lease deal which does not require a sec deposit.

[jspdr]

Originally Posted by senoromar

Ok I got it, even though you are putting 7 MSDs they are only giving you credit for six. 0.00007 x 6 = 0.00042. Taking that off the base MF gives you 0.00088.

This means that they are counting one of your security deposits as a real deposit. This is usually waived if you have bought/leased from bmw before. Also the advertised lease specials waive the mandatory security deposit. I would bring this up with them, say that 7 MSDS should reduce it by 0.00049, not 0.00042, and if they say 1 deposit is required then point out the advertised lease deal which does not require a sec deposit.

Thanks guys. They told me it was a mistake, they put in only 6 MSDs. My payment now is $802 with MF .00081

[opasha]

Originally Posted by jspdr

Thanks guys. They told me it was a mistake, they put in only 6 MSDs. My payment now is $802 with MF .00081

Nice, $324 back in your pocket .

[senoromar]

Originally Posted by jspdr

Thanks guys. They told me it was a mistake, they put in only 6 MSDs. My payment now is $802 with MF .00081

"Mistake" lol.

[NavyBeeker]

What is "MSD"? Months Down payment?

[jspdr]

Max 7's $1200

[senoromar]

Originally Posted by NavyBeeker

What is "MSD"? Months Down payment?

MSD = Multiple Security Deposits

This applies to leasing. There is a primary security deposit which is often waived in advertised lease specials or if you are a returning bmw customer. Beyond that, bmw and several other car companies allow you to pay some more security deposits which will help lower the interest rate. A security deposit equals your payment rounded up to $50. For bmw, each one reduces your APR by about 0.17% and bmw allows up to 7 deposits, so you can reduce your interest by up to 1.2%. All security deposits will be returned upon lease end less any excessive wear and tear. MSDs can help lower the payment by a good amount and is a great option to consider if you have the extra cash and can wait 36 months to get it back.

[NavyBeeker]

Originally Posted by senoromar

MSD = Multiple Security Deposits

This applies to leasing. There is a primary security deposit which is often waived in advertised lease specials or if you are a returning bmw customer. Beyond that, bmw and several other car companies allow you to pay some more security deposits which will help lower the interest rate. A security deposit equals your payment rounded up to $50. For bmw, each one reduces your APR by about 0.17% and bmw allows up to 7 deposits, so you can reduce your interest by up to 1.2%. All security deposits will be returned upon lease end less any excessive wear and tear. MSDs can help lower the payment by a good amount and is a great option to consider if you have the extra cash and can wait 36 months to get it back.

Thanks! Great explanation too!