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05242012, 05:49 PM  #1 
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Lease on a 2012 740li
So I am looking at a new 740il. The MSRP is 87k. Dealership is giving me these numbers for 36 month 12k/yr miles.
Residual of 59% Money factor equating to 5.5% $1282/month no money down Thoughts? 
05242012, 09:07 PM  #2 
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Run
http://www.ridewithg.com/index.php/2...atesmay2012/ go to bmw config. www.bmwconfig.com and build the 7 and see what it comes out to. 
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05242012, 09:46 PM  #3 
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Drives: 2008 E93 M3 6MT FTW!!!
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To elaborate on the post above, yes definitely run.
It is a 2012, and the LCI is almost here. All allocations are done for 2012 7 series, meaning only lot cars are left now. I know because I was shopping for one just last month. First of all, go to ridewithg.com to check lease residuals and money factors. According to this site, the base rate is 0.00190 which translates to 4.56%  simply multiply by 2400 to get this number. So you are being screwed by 1% already. Second, when negotiating for a lease, always negotiate the price first, to get the lowest number, aka highest discount off MSRP. This is where bmwconfig.com comes in. Get the build sheet from your dealer, have them email it, so you see all the options. Plug them in to bmwconfig.com and you will see the invoice price for that exact car. Note that when I was shopping for this car list month I offered $1k over invoice and it was accepted without questions from several dealers. People here told me I could have done better. Regardless, even with $1k over invoice, you will also have a $2500 option credit on the 7 series this month, which is to be taken off from the final negotiated price, because this is a credit from BMW. Don't let them tell you that 'the price we negotiated already reflects this option credit' that is BS and there are dealers who try this and those who are honest about it. I stop talking to the ones who pull this crap. Finally go to leaseguide.com, plug in your MSRP, final price including discount for option credit (this is the capitalized cost, or cap cost, on which your lease is based on), the residual, money factor or interest rate, the term or length of the less in months, and finally your state tax rate. You will get, within $20 per month, the payment that you should pay for this car. When dealer quotes you lease numbers with just a residual percent, interest and payment, they are hiding a lot of information. You need the Cap cost, and to see if they are rolling any BS fees into your lease, which you should pay up front. Hope this helps! I got screwed once and swore to myself ... Never Again!!! Would hate to see anyone else get screwed, either. 
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05252012, 09:55 AM  #5 
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Looks like i should be at $1237/month based on the info on these websites. Thank you all for your help. The car is being sold at invoice price so hopefully I can leverage the information that I now have

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05252012, 12:55 PM  #6 
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I did some calculations on these websites and ran some numbers for the dealer and was told i am $9600 off the cap cost. Not sure how or where they get this difference in cap cost but here is my logic.
Here are some calculations that I did on the 2012 740il. This is what I would be interested in to lease the 2012 BMW 740il on your lot for a term of 36 months, 12K miles per year. MSRP  $83,735 Base Cap Cost  $76,900 (selling price of the vehicle) Down Payment – $4,000. I also know that I will have a $2500 option credit on the 7 series this month, which is to be taken off from the final negotiated price, because this is a credit from BMW. Therefore the cap cost reduction would be $6500. Adjusted Cap Cost  $70,400 Residual value on the 7 series right now 57%. Therefore the residual value is $47,723. http://www.ridewithg.com/index.php/2...atesmay2012/ Money factor on the 7 series for May is .00190. http://www.ridewithg.com/index.php /2012/05/2012bmwleaseratesmay2012/ Term – 36 months Sales Tax – 6.75% Therefore the monthly payment with tax should be $912.02. Depreciation  $22677 Finance (rent) charge  $8080 Total Sales Tax  $2515 Total of all payments  $32833 Total Lease Cost  $39,771.75 
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05252012, 07:11 PM  #7 
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Sounds fishy.
First off note that residuals on the ridewithg.com site are for 15k miles per year. Add 2% for 12k (59%) and 3% for 10k (60%) If your cap cost is $70,400 and dealer says you are $9600 off, then they are using a cap cost of $80,000. Clearly with $4k down (btw usually a bad idea unless you really really want to get the payment down by $120) this is based off the MSRP with the dealer adding some other cost to your lease. I would bet $1 they added $600 for clear plastic protector crap for your door handles. I'd get them to throw that in. Also note you were not clear, is it $4k down plus inceptions, or $4k down total with inceptions? Inceptions include dealer fee, doc fee, registration, and first payment. So they are not a cap cost reduction, but usually it should be $2.5 to $3k for this car. Again this is why it is important to ask for itemized breakdown of the numbers. Even if your $4k includes inceptions, and it's only a $1k cap cost reduction, and you get the option credit of $2500, it still shows me your dealer is basing all the numbers off of MSRP  NOT invoice price. Email a few other dealers with your offer and see if they play ball. 
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05252012, 10:01 PM  #8  
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