# New to leasing? Tips and Facts here



## Ågent99 (Jan 7, 2002)

bump


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## Xspect (May 9, 2006)

Ms 7%
La 9 %
Sc 5 %


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## Ågent99 (Jan 7, 2002)

bump


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## mclaren (Jan 5, 2005)

Here are few things about leasing that I have learned :

I can't stress this enough, you must understand every number. Dealers are very creative at finding ways to make profit.

If you read this website you will hear about all kinds of deals. Don't know if these deals are true, what I do know is the dealers in Central Florida don't give new BMWs away nor should they. 

The way to get a good deal is read this site and look for situations where BMW has bargain buy rates and trunk money ( where the dealer gets money back from BMW ) like right now on the Z4 with a buy rate of .0005 and $1800-$2000 trunk money.
These deals often don't last long so if you see one jump while there are cars available and the dealer may not realize they are going to be selling their inventory soon.  

Don't argue about every dollar, it is not that important. What is important is to know within about $10 per month what the dealer can do and make a fair profit. Also know the approximate drive off.

Do the 7 multiple security deposits, it's a great deal.

Finally, the Z4 I just did would have cost over $800 per month with the normal MF and no trunk money but I got it for $528.48 with just the security deposits, 1st payment and a couple of hundred drive off so you can see having your ducks lined up means real savings.


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## dbtheo (Apr 24, 2006)

iversonm said:


> One more tax tidbit. Ohio taxes your lease like most states, where you only pay taxes on your lease payments. However, they force you to pay all the taxes up front.
> 
> New Jersey evidently gives you the option to pay taxes up front or wrap them into the payment.


Not true, you can roll tax into your payments in Ohio. If you were told otherwise, you were lied to.


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## iversonm (Nov 15, 2004)

My source is: http://www.leaseguide.com/lease09.htm:

_In some states, such as Ohio, you pay sales tax up front on the capitalized lease cost. In other states, such as Texas and Illinois, you actually pay sales tax on the full value of the leased car, not just the leased value, just as if you were buying it. In Illinois, you can also pay monthly taxes. In a few states, such as New Jersey, you have a choice of paying up-front taxes on either the full purchase price or the total of lease payments. Some states tax fees and taxes; others don't. Most states tax the lease acquisition fee; a few don't. Some states, have a cap on the total amount of taxes paid. Some allow a tax credit for trade-in vehicles, others do not._​
I lived in Ohio when they made this change, but I did not actually lease a car under this rule, so I can't speak to the exact implementation.

My understanding is that Ohio gets all the sales taxes when you start the lease. 
If you roll the taxes into the payment, and you're more or less financing the taxes like a regular loan.

This is distinct from other states that simply compute the taxes as a percentage of the monthly payment. It is likely that this method is cheaper than Ohio's approach.


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## iversonm (Nov 15, 2004)

I did a little more investigating, and here's (hopefully) the definitive answer on taxation in the 17th state.

Ohio taxes are computed on the sum or all lease payments, and are payable upon lease inception.

It is possible to roll the cost of those taxes into the lease, but this does not change the fact that the State of Ohio gets paid up front. Therefore, when you choose this option, you are in essence financing the taxes, and will pay interest on this amount as a result.

Anecdotally, it appears there may be a problem if you move to another state during you lease, as you could be subject to double taxation, as the new state will collect sales taxes on payments, after having already paid up front to Ohio.


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## I Love BMW's (Mar 18, 2006)

Do you know how the payoff amount is calculated on a lease if I want to pay off the lease early and buy the car?


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## mclaren (Jan 5, 2005)

I Love BMW's said:


> Do you know how the payoff amount is calculated on a lease if I want to pay off the lease early and buy the car?


Approximately it is the price of the car ( not MSRP ) minus the number of payments made times the monthly depreciation minus the security deposits ( if any ).

It is available on BMW owners circle exactly if you used BMWFS.


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## indostal (May 24, 2006)

great info from everyone but let me ask everyone this, assuming you're about to purchase a brand new 750i with a price of $75,000 and you only drive 15,000 miles/yr. Which would be more profitable in 3 years, to lease it or finance it with a rate of 8%


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## northlonglake (Aug 21, 2006)

SteveinBelAir said:


> I think it would be a good idea to get everyone to chime in on the tax rates and requirements for each state.
> 
> I'll start.
> 
> Maryland - 5.00% - Based on full negotiated price of vehicle. Can be paid up front or rolled into vehicle price.


Minnesota charges sales tax up front and is based on the lease value (essentially vehicle cost - residual - any trade) PLUS the interest/finance charge.

http://www.taxes.state.mn.us/taxes/...f#search="minnesota sales tax lease vehicles"


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## Miamifan1354 (Feb 12, 2006)

I have a question about damage to a leased car..

My mother leased an x5 and a chain hit the car on the highway and went up over the hood and roof. Damage is estimated at like 3000. Can we take it some place to get it fixed, or do we have to take it to BMW and have it fixed through them?


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## zibawala (May 1, 2006)

I would take it to bmw and get it fixed through them, involving insurance company!


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## scotchontherox (Dec 31, 2006)

*Leasing*

While I think it's important to be aware and knowledgeable of all the various factors (mf, residual, etc...) to determine what you should offer the dealer, in the end doesn't it come down to the bottom line?

Bottom Line = Money down + (# of payments x Amount) + any costs at end of lease?

I'm not a fan of Money Down...so if you negotiate a monthly price x # of payments do you really need to negotiate the variables? Just figure out what "Bottom Line" # is a good deal to you and offer that to the dealer...let them figure out where they want to put their profit....maybe they give you a great Cap Cost and a high MF, or a low MF and a high cap cost....make sense??? (assuming you don't plan on buying the vehicle after the lease ends)

Cheers.


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## schley (May 26, 2005)

scotchontherox said:


> While I think it's important to be aware and knowledgeable of all the various factors (mf, residual, etc...) to determine what you should offer the dealer, in the end doesn't it come down to the bottom line?
> 
> Bottom Line = Money down + (# of payments x Amount) + any costs at end of lease?
> 
> ...


Your offer makes sense as long as you know the numbers if after you run the numbers with acceptable levels of dealer markup (if any) in MF and acquistion fee combined with the amount over invoice you are willing ot accept. Once you find that number for say

1k over invoice
825 acquistion fee
buy rate

then offer them that for a monthly payment is OK, however be on the lookout for other extras.

I always build in an option for the dealer and let them select.

1k over invoice, 625 acquistion, buy rate
800 over invoice, 825 acquistion, buy rate
800 over invoice, 625 acquistion, .0002 mf mark up
600 over invoice, 825 acquistion, .0002 mf mark up

this is an example but the premise is exactly the same.


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## Desiboy (Apr 1, 2005)

Random question, and if this has been answered elsewhere on the forum, then I apologize... for ED Leasing, is the end of lease residual calculated on the MSRP of ED or MSRP of US delivery?


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## schley (May 26, 2005)

Desiboy said:


> Random question, and if this has been answered elsewhere on the forum, then I apologize... for ED Leasing, is the end of lease residual calculated on the MSRP of ED or MSRP of US delivery?


us msrp.... ED msrp is absolutely meaningless!


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## LeaseCompare (Mar 3, 2005)

Here are a couple of resources:

*For Tax & Title Issues*

*For Good Leasing Information*


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## bdavid527 (Dec 19, 2006)

how does the 7 multiple security deposti work? sorry, I'm a newbie here. I've leased about 4 different cars in the past 5 yrs. sounds like I've been screwed on all of them..


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## ronn888 (Apr 26, 2007)

Is there acquisition fee for ED delivery lease? Thanks!


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## cvb (May 10, 2006)

*Calculate Gas Guzzler and Acquisiton in MSRP?*

.


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## Bunky (Nov 21, 2008)

Hey everyone,

I'm getting close to finishing my lease deal and have a few questions. I've reached agreements on the selling price, money factor, acquisition fee, trade in price, and doc fees. I've gotten all the true numbers for tax, title, and registration from my state's 2010 Tax Manual so they can't try to pad extra money there.

1. What tricks to make profit come after all of these are negotiated?
2. Is gap insurance included from BMWFS on the lease documentation, and if so, is this yet another place where the dealer will try to boost profit? If so, I'll get gap insurance from my own insurance company and have that number before going in.
3. Where/When is this MACO fee gonna be brought up? Is that a little bomb the finance person drops when you are signing lease papers?
4. I'm using BMWFS for the first time, so it's my understanding that I WILL have to pay the security deposit. Can all of the fees, tax, title, registration, license, etc. be lumped into my Net Capitalized Cost, so my drive away cost is my first months payment + security deposit?

Thanks!


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## X6Jenna (Jul 5, 2010)

As you have agreed upon all of the costs, put everything into a lease calculator and make sure your payments are that number when you're signing your deal. If they add extra fees, tell them you did not agree on the fees - you should be at a point where your sale figures are finalized. Our CA brought up the MACO fees when we were doing the original negotiation.

1. When you're working with the finance person, they will try to sell you extras (i.e. clear bra, tire insurance, leather protector, etc). If you search here, you will find threads on all these with great input. 
2. Gap insurance is included in the lease payment
3. See first paragraph
4. We did not have to put a security deposit down (or down payment) with our first BMW lease. We do have great credit and a car buying history, but if they tell you that you HAVE to, you should be able to negotiate that as well. You should be able to lump that all in your cap cost, but probably don't want to because you end up paying interest on it. See if they can waive the deposit and use that to pay your fees.

Hope that helps


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## mookjohnson (Aug 5, 2005)

Michael Schott said:


> Bump. Does anyone have that spreadsheet they can post?


Ditto. There are good ones, and then there were some GREAT ones, but the only ones I can find have been locked and you can't input your own data in the macros.

Anyone?


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## Newmanium (May 9, 2007)

Here's the one I use - was tweaked from one I found on here a long time ago. I have it setup where 36 and 24 month are side by side, and the MSD drop is also listed.

For some reason it won't let me upload an XLS - so rename from PDF to XLS.


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## AnonCA (Oct 26, 2010)

That one works great, at least the first time I tried it. I can't, on quick glance, see where the sales tax is figured in


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## AnonCA (Oct 26, 2010)

I take that back....sumpins not quite right


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## whoisthat (Jun 2, 2011)

New here, but just about ready to pull the trigger on a 2011 335i m sport... Anyone find that xls spreadsheet to do the numbers?


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## SLORIDE (May 16, 2006)

*Spreadsheet*

Anybody have the spreadsheet?


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## mrMTB (Jan 4, 2009)

SLORIDE said:


> Anybody have the spreadsheet?


Check out post #85.


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## zinm (Nov 1, 2011)

Newmanium said:


> Here's the one I use - was tweaked from one I found on here a long time ago. I have it setup where 36 and 24 month are side by side, and the MSD drop is also listed.
> 
> For some reason it won't let me upload an XLS - so rename from PDF to XLS.


Could you help me calculate the tax paying up front roll it into loan?
Thanks.


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## Dave 330i (Jan 4, 2002)

be careful of lessor using 39 month instead of 36 month lease. There is not too much you can do about it. Never heard if anyone had negotiated it into a 36 month lease. In 39 month lease, you pay for the 4th year's registration. It may be advantage to the lessor in some states.

And, in TX, as in some other states, you pay the sales tax of the leased price of the car up front.


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## zibawala (May 1, 2006)

I am looking to order 2013 328i what is the best I shall expect. I am previous owner


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