[ChristianReyess]

What do you guys think about this? This is my first time doing a lease and I would like to get you guys opinion as a comparison.

I would like to know what to look out for, what doesn't seem right, and the works.

Thanks in advanced!

And it's a bare minimum with technology package only. I wish it had the heated seats and the Harmon K. Systems but we'll see how good they sounds stock.

[element241]

3 things:

That Money Factor is marked up. Assuming you qualify, you should be able to get 0.00130 easily.

The Total Cap/Acq. Fee is marked up, too. BMW Financial Services charges $725.

Almost $4,900 is a lot to be putting down on a lease considering you're not doing Multiple Security Deposits. If the car gets totaled early in the lease, insurance will pay off your monthly payments but your $3,675 in cap cost reduction goes down the drain. Weigh that risk against your need for a lower monthly payment and decide what's best for you.

[ChristianReyess]

Originally Posted by element241

3 things:

That Money Factor is marked up. Assuming you qualify, you should be able to get 0.00130 easily.

The Total Cap/Acq. Fee is marked up, too. BMW Financial Services charges $725.

Almost $4,900 is a lot to be putting down on a lease considering you're not doing Multiple Security Deposits. If the car gets totaled early in the lease, insurance will pay off your monthly payments but your $3,675 in cap cost reduction goes down the drain. Weigh that risk against your need for a lower monthly payment and decide what's best for you.

Okay yeah I'll look into the money factor/ and those fees (would fees be different in California? . Maybe I'll reduce the down payment a little. Thank you!

[webdither]

You should consider changing your down payment to MSDs. They lower the money factor (thereby reducing your payment) as well as having the benefit of getting that money back at the end of the lease. You should search the forum for how they work.

[ChristianReyess]

Originally Posted by webdither

You should consider changing your down payment to MSDs. They lower the money factor (thereby reducing your payment) as well as having the benefit of getting that money back at the end of the lease. You should search the forum for how they work.

What's a MSD?!

[ChristianReyess]

Should I just search msd?

[disco4me]

Originally Posted by ChristianReyess

Should I jut search msd?

I don't know much about leases but saw this.
http://www.infinitiq50.org/forum/inf...html#post38442 as possibly a good explanation.

[ChristianReyess]

Originally Posted by disco4me

I don't know much about leases but saw this.
http://www.infinitiq50.org/forum/inf...html#post38442 as possibly a good explanation.

That is genius, that's something I'll like to look into.

[element241]

Just to give you an idea, I'm getting about $1,560 in total benefit over a 3-year lease from my $4,200 MSD x7. That's equivalent to investing the $4,200 and earning a little over 11% per year on my money. But instead of getting more cash back after 3 years (like an investment), I'm paying less on the lease. In addition to getting 11% guaranteed return on my money, I don't have to pay taxes on it like I would if it were an investment.

If you were considering a large down payment, MSDs are a great alternative place to park your money for 3 years. Great return plus lower exposure in case of total/theft. It does result in a higher monthly payment, but if you look at it in terms of overall cost for the lease, it's a great way to go.

[Desert Guy]

Actually, I think you guys are missing something. In California, if your car is stolen or totaled, your insurer pays you its actual cash value, PLUS the full sales tax on that amount. Since you've paid very little in sales taxes on your monthly payments early in the lease, you actually get a huge windfall. Not sure that I understand the need for "MSD" in California.

[webdither]

Originally Posted by Desert Guy

Actually, I think you guys are missing something. In California, if your car is stolen or totaled, your insurer pays you its actual cash value, PLUS the full sales tax on that amount. Since you've paid very little in sales taxes on your monthly payments early in the lease, you actually get a huge windfall. Not sure that I understand the need for "MSD" in California.

The main benefit of an MSD is that you get that "down payment" money back at the end of the lease. The insurance thing is just an added benefit (in states that it applies)

[ChristianReyess]

Hmmm I'm going to see how that would reflect on my payments.