# Jon Shafer- lease question



## Mark49 (Mar 3, 2002)

Jon, do you have any idea what is going on at BMWUSA.com? When configuring an e46 and looking at financing the lease payments have gone up about $100/month since two days ago. And even before that they went up about $39/month about two weeks ago. A total of $139/month in two and a half weeks...has to be a mistake, doesn't it? The lease payments are way more for a 330i than for a 530i that costs thousands more.

Have you recently received any information regarding major increases in lease rates through BMW? I'm going to be placing my order for a 330Ci in the next month or so but would like to have a reasonable idea as to payment when I configure the car.

Thanks for any info you might have.

Mark


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## DSinSoCal (Mar 19, 2002)

The base Lease Rate for the 330Ci in the month of March is .0021 (up from .00205 last month).

BMWUSA.com's "build your own" feature uses quite higher rates. It was using something like .0025 last month -- which is the equivalent of raising the APR of a financing deal a full percentage point. The dealers try to get you closer to the website's figure in order to bake in additional profit.

The residual also dropped 1% in March, going from 62% to 61%. This also leads to higher lease payments. However, none of these changes begins to explain the strange results currently being displayed on BMWUSA.com.

The same car that projected monthly payments of $374 four weeks ago is now estimating payments of $515.

I suspect that one of the programmers made an error, entering a residual value of 51% instead of 61%. That would pretty much account for the difference.


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## Big Al 330i (Jan 12, 2002)

DSinSoCal said:


> *The base Lease Rate for the 330Ci in the month of March is .0021 (up from .00205 last month).
> 
> The residual also dropped 1% in March, going from 62% to 61%. QUOTE]
> 
> For how many miles per year is this residual good for? 12k or 15k?*


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## DSinSoCal (Mar 19, 2002)

Sorry. 12K

I don't know why I always forget that other mileage options exist :tsk:


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## Big Al 330i (Jan 12, 2002)

DSinSoCal said:


> *Sorry. 12K
> 
> I don't know why I always forget that other mileage options exist :tsk: *


Thanks. A friend of mine was over tonight and wants a 330i. He is not sure whether to buy or lease. When I leased my 330i in 6/01 the mf was .0021 and the residual was 64 for a 3yr 36k mile lease. Seems like it is still right about there.


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## Nick325xiT 5spd (Dec 24, 2001)

The web site can be WAYYYY off. One time, I configured a 330i and got an estimated payment of almost $1200 a month. The MSRP is accurate, but not much else.

Nick


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## Jon Shafer (Dec 15, 2001)

*Re: lease question*



Mark49 said:


> *Jon, do you have any idea what is going on at BMWUSA.com? When configuring an e46 and looking at financing the lease payments have gone up about $100/month since two days ago. And even before that they went up about $39/month about two weeks ago. A total of $139/month in two and a half weeks...has to be a mistake, doesn't it? The lease payments are way more for a 330i than for a 530i that costs thousands more.
> 
> Have you recently received any information regarding major increases in lease rates through BMW? I'm going to be placing my order for a 330Ci in the next month or so but would like to have a reasonable idea as to payment when I configure the car.
> 
> ...


Mark,

Whether it be BMW, Audi, or any other brand that has an online payment _"estimator"_ (now there's an oxymoron) I have never seen a situation where the payment resembles anything even close to what it is in reality... One time for the heck of it I tried it myself (on BMWUSA.com) for a 540iA. Lo and behold it said that I could lease one for around $600/mo. given fixed parameters. The next day I plugged it in to my computer that I work all of my deals on (one which has never made a miscalculation), and the payment was only about $300/mo. _more_ than what the website said. Sheeeeeeesh!!

Mark, there have not been any increases in lease rates in the past few days. The current lease program runs through the end of April with BMWFS. Disreagrd any payments that you might generate on the site. Just do the math yourself with pencil and paper. Depreciation + tax + rent my friend.

Snip, snip...



> _Originally posted a long time ago on the .org _
> 
> *
> We had a power outage the other day, and I had to "work" a few deals the "old-fashioned" way... It's really quite simple! A lease payment is basically two things: 1) monthly depreciation, and 2) monthly rent.
> ...


Hope this helps,
--Jon

:thumb:


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## in_d_haus (Jan 2, 2002)

DSinSoCal said:


> *...I suspect that one of the programmers made an error...*


Programmers NEVER make errors...they add functionality..


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## in_d_haus (Jan 2, 2002)

SO where IS the best place to feel out payments etc on a car if the BMWUSA site is bogus? 

$300/mo is a big difference!

Thanks,
Doug


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## Big Al 330i (Jan 12, 2002)

in_d_haus said:


> *SO where IS the best place to feel out payments etc on a car if the BMWUSA site is bogus?
> 
> $300/mo is a big difference!
> 
> ...


Check out this site:http://www.leasesource.com/workshop/run_the_numbers.cfm

You will need to know the money factor expressed as a decimal and the residual as a percentage. Hope this helps.


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