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BMW lease chances! help!

Valued Member

Re: BMW lease chances! help!


nykos5000 wrote:

aa18leo wrote:

nykos5000 wrote:

MSD do not go towards the actual cap costs such as a down payment so essentially a down payment is a form of lowering your monthly payment by advancing a portion of your payment. It's the same as if you were to lease an apt and give the landlord an extra $5k to lower your monthly payments by a few bucks a month. On the other hand, MSD is like giving a loan to the bank in exchange for a lower MF. MSD are different from a holding security deposit. Holding security deposits are for dealerships to hold a vehicle such as for a custom ordered car. MSD deals directly with the bank. 



wow awesome!! so basically a MSD wont go towards the monthly payment, but It will go towards the price of the car (MF)in which would automatically effect the monthly payment? or am I confused...because if 675 and up qualifies me for the lowest interest rate possible then MSD wouldnt help much in regards to the interest rate because its already low


 


The MSD will go towards the MF (interest rate) and there is no such a thing as an interest rate being too low Smiley Happy Even qualifying for the lowest rate, leases are never 0% so if the current rate this month for a 4 series is 3%, MSD can lower that down to 1.5%. This would ultimately lower your monthly payment. A down payment would effectively do the same but you would never see your money again but MSD are refundable. 


THIS IS GREAT INFORMATION!! NOW, with that being said, is this process done before the purchase of the vehicle? and how do I go about informing the dealership of me wanting to do this? its SO FUNNY how they havent mentioned this option to me...esepcailly with my sitaution with my negative equity with my car...you would think theyd try to help as much as possible Smiley Indifferent

Message 11 of 37
Valued Member

Re: BMW lease chances! help!


aa18leo wrote:

nykos5000 wrote:

aa18leo wrote:

nykos5000 wrote:

MSD do not go towards the actual cap costs such as a down payment so essentially a down payment is a form of lowering your monthly payment by advancing a portion of your payment. It's the same as if you were to lease an apt and give the landlord an extra $5k to lower your monthly payments by a few bucks a month. On the other hand, MSD is like giving a loan to the bank in exchange for a lower MF. MSD are different from a holding security deposit. Holding security deposits are for dealerships to hold a vehicle such as for a custom ordered car. MSD deals directly with the bank. 



wow awesome!! so basically a MSD wont go towards the monthly payment, but It will go towards the price of the car (MF)in which would automatically effect the monthly payment? or am I confused...because if 675 and up qualifies me for the lowest interest rate possible then MSD wouldnt help much in regards to the interest rate because its already low


 


The MSD will go towards the MF (interest rate) and there is no such a thing as an interest rate being too low Smiley Happy Even qualifying for the lowest rate, leases are never 0% so if the current rate this month for a 4 series is 3%, MSD can lower that down to 1.5%. This would ultimately lower your monthly payment. A down payment would effectively do the same but you would never see your money again but MSD are refundable. 


THIS IS GREAT INFORMATION!! NOW, with that being said, is this process done before the purchase of the vehicle? and how do I go about informing the dealership of me wanting to do this? its SO FUNNY how they havent mentioned this option to me...esepcailly with my sitaution with my negative equity with my car...you would think theyd try to help as much as possible Smiley Indifferent


Dealers do not make money on the back end of MSD as they do on a down payment so this option is kind of something that is never really mentioned. How much is your current vehicle upside down? Being that you have negative equity you have two options depending on how much you want to put down. You have option "A," you can put a down payment towards the new car that would only be enough to wipeout the negative equity. The remanining portion of the down payment could go towards a MSD that would lower your interest rate. Option "B" would be to roll the negative equity into the lease and put down all your down payment towards the MSD. This depends on how much you owe on your current vehicle but if you were to roll all the negative equity into the new lease, make sure you keep the car for the life of the lease as trading a lease early with negative equity already rolled into the car would tremendously make your loan upside down. When negotiating, make sure your CS is aware that you want to go the MSD route and he'll know what you're talking about. 

BK7 08/2016 DC 12/2016
Cap1 Quicksilver $3000 | Merrick Bank $1400 | Barclays Apple Rewards $2500 I CFNA $1200 (Survived BK7)
I Starting Score 10/2016 Fico8: TU 597 I EX(LP) 607 I EQ 592
I Current Score 11/2017: TU 650 | EX 658 | EQ 665
Message 12 of 37
Valued Member

Re: BMW lease chances! help!


nykos5000 wrote:

Dealers do not make money on the back end of MSD as they do on a down payment so this option is kind of something that is never really mentioned. How much is your current vehicle upside down? Being that you have negative equity you have two options depending on how much you want to put down. You have option "A," you can put a down payment towards the new car that would only be enough to wipeout the negative equity. The remanining portion of the down payment could go towards a MSD that would lower your interest rate. Option "B" would be to roll the negative equity into the lease and put down all your down payment towards the MSD. This depends on how much you owe on your current vehicle but if you were to roll all the negative equity into the new lease, make sure you keep the car for the life of the lease as trading a lease early with negative equity already rolled into the car would tremendously make your loan upside down. When negotiating, make sure your CS is aware that you want to go the MSD route and he'll know what you're talking about. 


well I have about 5-7k in negative equtiy in my cayenne right now, and im really trying to avoid putting so much money down . the CS told me he would recommend putting atleast 4k down but even that just seems like alot to me...I told them givent the current situation,ill bite the bullet on the payments but  i dont want my payments over 750$,so with that 4k down we were at 645$ i believe which im very happy to see if we can get that done.i just dont want to put that much down unfortunately, so what would you recommend? and how would the MSD come into play given the info you have about my sitaution now?

 

Message 13 of 37
Valued Contributor

Re: BMW lease chances! help!

I went into BMW when my wife wanted a 650i and I was approved for tier 1 with 731 EX fico 8 , auto enhanced was 702, the finance manager told me the big limit credit cards (25k) show I can manage my finances.. If this helps Smiley Happy!
Message 14 of 37
Valued Member

Re: BMW lease chances! help!


Creditplz wrote:
I went into BMW when my wife wanted a 650i and I was approved for tier 1 with 731 EX fico 8 , auto enhanced was 702, the finance manager told me the big limit credit cards (25k) show I can manage my finances.. If this helps Smiley Happy!

650i is so so nice!! Smiley Happy what an awesome car!!! how do you guys like it!? and can I ask if you financed or leased? also can I ask what the finance manager meant saying big limit credit card (25k)? whats that mean exactly from the finance managers prespective? also with all this being said, do you have any advice for me going into this lease purchase given my slightly crazy situation lol?

Message 15 of 37
Valued Member

Re: BMW lease chances! help!


aa18leo wrote:

nykos5000 wrote:

Dealers do not make money on the back end of MSD as they do on a down payment so this option is kind of something that is never really mentioned. How much is your current vehicle upside down? Being that you have negative equity you have two options depending on how much you want to put down. You have option "A," you can put a down payment towards the new car that would only be enough to wipeout the negative equity. The remanining portion of the down payment could go towards a MSD that would lower your interest rate. Option "B" would be to roll the negative equity into the lease and put down all your down payment towards the MSD. This depends on how much you owe on your current vehicle but if you were to roll all the negative equity into the new lease, make sure you keep the car for the life of the lease as trading a lease early with negative equity already rolled into the car would tremendously make your loan upside down. When negotiating, make sure your CS is aware that you want to go the MSD route and he'll know what you're talking about. 


well I have about 5-7k in negative equtiy in my cayenne right now, and im really trying to avoid putting so much money down . the CS told me he would recommend putting atleast 4k down but even that just seems like alot to me...I told them givent the current situation,ill bite the bullet on the payments but  i dont want my payments over 750$,so with that 4k down we were at 645$ i believe which im very happy to see if we can get that done.i just dont want to put that much down unfortunately, so what would you recommend? and how would the MSD come into play given the info you have about my sitaution now?

 


Based on my calculations it would be better to put down $4k to eat up some of your negative equity on your Cayenne. I can't find lease residuals for the 430xi GC but for the 428xi GC and they seem to be inflated this month to 68% for 36 mos with 12k miles/yr. Plus BMW is giving a $1,500 rebate until 10/31. With all of this and $4k down you should be around $734/month. The base MF is .00136 (3.26%) this month and putting down 5 MSD ($3,500) would cut you down to .00101 (2.42%). Without the negative equity this would be helpful but with the negative it wouldnt make much of a difference and your payment would actualy be higher. So I would focus on putting $4k down and getting them to discount the car as much as possible. I calculated these numbers of a $53k MSRP with a 6% discount. You might can get 10%+ on a 16 428xi vs a 17 430xi. The 30i have the new B series engine but I dont think it would be a siginificant difference. 

BK7 08/2016 DC 12/2016
Cap1 Quicksilver $3000 | Merrick Bank $1400 | Barclays Apple Rewards $2500 I CFNA $1200 (Survived BK7)
I Starting Score 10/2016 Fico8: TU 597 I EX(LP) 607 I EQ 592
I Current Score 11/2017: TU 650 | EX 658 | EQ 665
Message 16 of 37
Valued Member

Re: BMW lease chances! help!

 

 


Based on my calculations it would be better to put down $4k to eat up some of your negative equity on your Cayenne. I can't find lease residuals for the 430xi GC but for the 428xi GC and they seem to be inflated this month to 68% for 36 mos with 12k miles/yr. Plus BMW is giving a $1,500 rebate until 10/31. With all of this and $4k down you should be around $734/month. The base MF is .00136 (3.26%) this month and putting down 5 MSD ($3,500) would cut you down to .00101 (2.42%). Without the negative equity this would be helpful but with the negative it wouldnt make much of a difference and your payment would actualy be higher. So I would focus on putting $4k down and getting them to discount the car as much as possible. I calculated these numbers of a $53k MSRP with a 6% discount. You might can get 10%+ on a 16 428xi vs a 17 430xi. The 30i have the new B series engine but I dont think it would be a siginificant difference. 


wow dude you are so so good!! this is incredible information...Im just hoping the bank can get the lease done, I never have done a lease and I also want to probably order the car since they dont carry alot, will this play into anything at all?? would you know?

Message 17 of 37
Valued Member

Re: BMW lease chances! help!


aa18leo wrote:

 

 


Based on my calculations it would be better to put down $4k to eat up some of your negative equity on your Cayenne. I can't find lease residuals for the 430xi GC but for the 428xi GC and they seem to be inflated this month to 68% for 36 mos with 12k miles/yr. Plus BMW is giving a $1,500 rebate until 10/31. With all of this and $4k down you should be around $734/month. The base MF is .00136 (3.26%) this month and putting down 5 MSD ($3,500) would cut you down to .00101 (2.42%). Without the negative equity this would be helpful but with the negative it wouldnt make much of a difference and your payment would actualy be higher. So I would focus on putting $4k down and getting them to discount the car as much as possible. I calculated these numbers of a $53k MSRP with a 6% discount. You might can get 10%+ on a 16 428xi vs a 17 430xi. The 30i have the new B series engine but I dont think it would be a siginificant difference. 


wow dude you are so so good!! this is incredible information...Im just hoping the bank can get the lease done, I never have done a lease and I also want to probably order the car since they dont carry alot, will this play into anything at all?? would you know?


If you do a custom order, this would change things a lot being that you would be getting a dedicated dealer allocation, thus, they will not be as willing to negotiate on price. With all that negative equity, your best bet will be to settle for a left over 16 but if you can't hold yourself to doing that then a 17 off the lot would be better. The greater the discount, the less your payment will be, although, I have heard of people getting like a 5-7% discount on a custom order so it wont hurt to bargain. That all depends on your location and how competitive the market is. Here in SoCal, there are so BMW dealerships that many are willing to do what it takes to get your business. On the other hand, a friend of my lives in the Midwest where there are only two BMW dealerships in the whole state and he was lucky to get 3% off a custom order. 

BK7 08/2016 DC 12/2016
Cap1 Quicksilver $3000 | Merrick Bank $1400 | Barclays Apple Rewards $2500 I CFNA $1200 (Survived BK7)
I Starting Score 10/2016 Fico8: TU 597 I EX(LP) 607 I EQ 592
I Current Score 11/2017: TU 650 | EX 658 | EQ 665
Message 18 of 37
Valued Member

Re: BMW lease chances! help!


If you do a custom order, this would change things a lot being that you would be getting a dedicated dealer allocation, thus, they will not be as willing to negotiate on price. With all that negative equity, your best bet will be to settle for a left over 16 but if you can't hold yourself to doing that then a 17 off the lot would be better. The greater the discount, the less your payment will be, although, I have heard of people getting like a 5-7% discount on a custom order so it wont hurt to bargain. That all depends on your location and how competitive the market is. Here in SoCal, there are so BMW dealerships that many are willing to do what it takes to get your business. On the other hand, a friend of my lives in the Midwest where there are only two BMW dealerships in the whole state and he was lucky to get 3% off a custom order. 

 


well thats the thing, We have about 4-5 dealerships all within not to far of a distance between one another, But none of them carry the 4 series GC in bulk... theres always like a few that they will have, i missed out on a great deal for loaded loaner 28xi for 45,900...we worked up numbers on it and when next thing you know its sold, so in order for me to get one that I will even like and more so to fit my budget I think id have to order, I built one online for about 49-51k and thats how I actually want it, so I figure if they can discount the price of the built out car then id be more than a happy camper, only thing is I HEAR NIGHTMARES about ordering cars!!! So im kind of stuck right now lol

Message 19 of 37
Valued Contributor

Re: BMW lease chances! help!

What nightmares??? 😳

I just ordered mine this past weekend. Your scaring me lol! 

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Message 20 of 37