2014 M5 Demo....This can't be right?

[G30Nashville]

Found a car locally that is a dealer demo. 2014 SO M5 with ceramic brake package with 1,200 miles.

Dealer is asking $87,500. I emailed them asking about lease possibilities and I get a reply saying they can offer a lease or owners choice. I say just send me some lease quotes at 3 and 4 year possibilities.

This guys response is "We can do 5 year lease with 10k miles/yr at $1488/mo.

If you do the math, those lease payments exceed the asking price of the car lol. Not sure if this salesmen is a newbie or just gave me a $0 down 5 year loan amount.....WTF?

I replied with - Um, what residual are you using and MF? No reply on his end yet.

[stealth.pilot]

You should get some documentation and ideally some YouTube footage of this guy quoting this. Then send it in to Autoblog for a fun article on a sleazy salesman.

A guy like that deserves to never work in the industry again.

[frisky]

Basic math. Not his strong suit.

f.

[240SXFAN]

Originally Posted by E92Atlanta

Found a car locally that is a dealer demo. 2014 SO M5 with ceramic brake package with 1,200 miles.

Dealer is asking $87,500. I emailed them asking about lease possibilities and I get a reply saying they can offer a lease or owners choice. I say just send me some lease quotes at 3 and 4 year possibilities.

This guys response is "We can do 5 year lease with 10k miles/yr at $1488/mo.

If you do the math, those lease payments exceed the asking price of the car lol. Not sure if this salesmen is a newbie or just gave me a $0 down 5 year loan amount.....WTF?

I replied with - Um, what residual are you using and MF? No reply on his end yet.

I am sure he quoted you a financing deal for an outright purchase.

[G30Nashville]

Originally Posted by 240SXFAN

I am sure he quoted you a financing deal for an outright purchase.

I submitted a request to work with another salesmen and this is what he sent me.


Thank you for your inquiry on the 2014 BMW M5.

Based on current programs, if you absolutely must lease the vehicle, you may want to consider the new 2015 model instead of this 2014. The lease rates are lower and residuals are higher on the 2015 model.

Here is the full breakdown on the lease for the 2014 model with ZERO down payment. Give me a call if you have any questions:

$115,000 MSRP
-$27150 Discount
=$87850 Sale Price
+$699 Dealer Doc Fee
+$695 Lojack Stolen Vehicle Recovery System
+$995 BMW FS Lease Acquisition Fee
+$5496.75 GA TAVT Tax (under the new tax law, this amount is the same whether you lease or buy)
+$87 Tag and Title
-$0 Down Payment
=$95822.75 Net Cap Cost

24 Month Lease
.00205 Money Factor
$47859.00 Residual
$1998.49 Monthly Depreciation (Net Cap Cost - Residual)/24 months
+$294.55 Monthly Rent Charge (Net Cap Cost + Residual)*Money Factor
=$2293.04 Total Payment Per month

36 Month Lease
.00205 Money Factor
$41,025.00 Residual
$1522.16 Monthly Depreciation (Net Cap Cost - Residual)/24 months
+$280.54 Monthly Rent Charge (Net Cap Cost + Residual)*Money Factor
=$1802.70 Total Payment Per month

48 Month Lease
.00205 Money Factor
$34,950.00 Residual
$1268.18 Monthly Depreciation (Net Cap Cost - Residual)/24 months
+$307.32 Monthly Rent Charge (Net Cap Cost + Residual)*Money Factor
=$1575.50 Total Payment Per month

[FLOMACKS]

Originally Posted by E92Atlanta

I submitted a request to work with another salesmen and this is what he sent me.


Thank you for your inquiry on the 2014 BMW M5.

Based on current programs, if you absolutely must lease the vehicle, you may want to consider the new 2015 model instead of this 2014. The lease rates are lower and residuals are higher on the 2015 model.

Here is the full breakdown on the lease for the 2014 model with ZERO down payment. Give me a call if you have any questions:

$115,000 MSRP
-$27150 Discount
=$87850 Sale Price
+$699 Dealer Doc Fee
+$695 Lojack Stolen Vehicle Recovery System
+$995 BMW FS Lease Acquisition Fee
+$5496.75 GA TAVT Tax (under the new tax law, this amount is the same whether you lease or buy)
+$87 Tag and Title
-$0 Down Payment
=$95822.75 Net Cap Cost

24 Month Lease
.00205 Money Factor
$47859.00 Residual
$1998.49 Monthly Depreciation (Net Cap Cost - Residual)/24 months
+$294.55 Monthly Rent Charge (Net Cap Cost + Residual)*Money Factor
=$2293.04 Total Payment Per month

36 Month Lease
.00205 Money Factor
$41,025.00 Residual
$1522.16 Monthly Depreciation (Net Cap Cost - Residual)/24 months
+$280.54 Monthly Rent Charge (Net Cap Cost + Residual)*Money Factor
=$1802.70 Total Payment Per month

48 Month Lease
.00205 Money Factor
$34,950.00 Residual
$1268.18 Monthly Depreciation (Net Cap Cost - Residual)/24 months
+$307.32 Monthly Rent Charge (Net Cap Cost + Residual)*Money Factor
=$1575.50 Total Payment Per month

His comment on TAVT is correct, leasing is basically a thing of the past in GA. If you bought out a the end of the lease, you'd have to pay full TAVT again to get the title.

If you have to lease, you can register in Montana.

[Bimmer6]

Think I saw this car at United BMW today is that the location? I wanted to look at a M4 convertable for the wife. Started the M4 up man it has zero sound very dull ......think we will wait for the new Audi RS5 rag.

[M6-Coupe]

Originally Posted by E92Atlanta

Found a car locally that is a dealer demo. 2014 SO M5 with ceramic brake package with 1,200 miles.

Dealer is asking $87,500. I emailed them asking about lease possibilities and I get a reply saying they can offer a lease or owners choice. I say just send me some lease quotes at 3 and 4 year possibilities.

This guys response is "We can do 5 year lease with 10k miles/yr at $1488/mo.

If you do the math, those lease payments exceed the asking price of the car lol. Not sure if this salesmen is a newbie or just gave me a $0 down 5 year loan amount.....WTF?

I replied with - Um, what residual are you using and MF? No reply on his end yet.

Because you have to pay rent fee (in addition to depreciation) which is more than 10-15k in 5 years...
With number you posted (1488) , I believe you can lease a 30 Jahre M5 at 140k MSRP lol...

[G30Nashville]

Guess I stand corrected on this one....sounds like it would be better to lease a '15 or '16 at this point. Thanks fellas. Good group in this section of the forum!

[Mr.SugarSkulls]

Simply put/ when leasing anything that's not a 2015/2016 (residual programs only exist for those) you'd be leasing based on a dollar amount. Not residual%.

You're better off financing OR as you said- leasing something newer

[sdshah]

Get it down to 80 and buy it. End of story.

[MavRick]

Originally Posted by E92Atlanta

Guess I stand corrected on this one....sounds like it would be better to lease a '15 or '16 at this point. Thanks fellas. Good group in this section of the forum!

E92Atlanta
if your location is correct....dont lease ANYTHING in georgia. the sales tax on a new M5 would probably raise your monthly payment close to $200. they've really screwed the pooch with these stupid ass tax laws.

go with Owner's Choice (its like a lease but youre only paying for the same percentage of the taxes as your are of the car) or finance it.

PenFed has a payment saver program that looks interesting. if i could ever feel confident about how much a 2013 M5 would be worth in 3 yrs...i'd go about and match my wife's M4 with my very own M.

[550i88]

Hey buddy I work at BMW of Schererville In I am a Client Advisor I showed my GSM this and he said he would like to see the VIN and do better on a 2015 M5 on the monthly Payment PM me I will give you my number or you can Call 219-864-3380 ext:367 I will be More then able to help you

[stealth.pilot]

Originally Posted by MavRick

E92Atlanta
if your location is correct....dont lease ANYTHING in georgia. the sales tax on a new M5 would probably raise your monthly payment close to $200. they've really screwed the pooch with these stupid ass tax laws.

go with Owner's Choice (its like a lease but youre only paying for the same percentage of the taxes as your are of the car) or finance it.

PenFed has a payment saver program that looks interesting. if i could ever feel confident about how much a 2013 M5 would be worth in 3 yrs...i'd go about and match my wife's M4 with my very own M.

With Owner's Choice I'm pretty sure you are paying the same taxes. Owner's choice is basically a loan with a non linear amortization schedule, so from a tax perspective it is the same as a purchase. You would pay the full amount of tax just less monthly, and more in the balloon.

GA taxes are stupid, thanks to their greed they get zero tax from me.

[MavRick]

Originally Posted by stealth.pilot

With Owner's Choice I'm pretty sure you are paying the same taxes. Owner's choice is basically a loan with a non linear amortization schedule, so from a tax perspective it is the same as a purchase. You would pay the full amount of tax just less monthly, and more in the balloon.

GA taxes are stupid, thanks to their greed they get zero tax from me.

They are rolling all of the taxes into the 'loan' but with the residual being used for the balloon payment...you're only paying for 'used' portion of the car in your payment. That's why the OC payment on the M4 that we ordered is about $50/month cheaper than a regular loan.

The balloon...or residual in the case of the OC...isn't affected by down payment or taxes. It's a straight percentage of MSRP...

But yeah...fuck Georgia. The #3 state for car leases and they screw the pooch...