How does your i3 Lease compare to my Volt lease

[cab]

One of the challenging aspects of cross-shopping EVs these days is that some manufacturers really seem to be subsidizing the leases while others don't or don't as much. It can sort of skew what is a "good deal" relative to other EVs.

Anyway, we all know the early i3 purchases leases were pretty pricey, but then residuals increased a bit, and hte discounts started showing up. I THINK I am starting to see deals that are at least as good as my Volt's lease, but I'll toss it out there just to see how others compare:

2012 Volt
3yrs/36K miles
$45,203 - MSRP
$42,535 - Selling price
$2,343 - Sales tax (note: this was Texas, where you have to pay tax on the FULL purchase price)
$45,919 - Gross capitalized cost with sales tax,acq fee, doc fees, etc

$422.54 - Monthly payment, $0 down (they even waived the security deposit)

My total out of pocket over the 3 yrs/36k miles will be $15,211.44.

The easiest way to compare is to look at what your own out the door price was and if it was around $45,919 above then compare your total out-of-pocket over three years to my $15k. The latter is key as when people say "I got a lease deal for $89/mo!" and leave out the "$10K down", well that's not the complete picture is it.

Some of you appear to be paying a LOT more, while others seem to be paying considerably less (some of the 24 month lease deals seem amazingly good lately).

Thanks,

 

[aobapapa]

2014 BEV - 100% electric
3yrs/30K miles
$50,900.00 MSRP - loaded with everything, tech package, auto drive cruise control, leather, auto park, full nav, stereo upgrade... every option except the 20' wheels.
$44,820.00 selling price
$5k down, $380. a month.
and a coupon for a few hundred bucks of accessories...doesn't go far but nice gesture by BMW.
Total payments $18,316 before the $2,500 back in CA.

Yup, the car is worth 3k more... or $2.83 a day to be exact.
Every time I drive it I love it more and more.

The 24 month lease is a little better.

Hope this information helps....

 

[Schnort]

Not a lease, but owners choice w/flex

base model, only heated seats as an option. 576 miles on it when purchased

$1500 down
$199/mo for 2 years/20K miles

Price: $36200
Sales Tax: $2262
Total cash price: $38462
Total other fees: $754
$1500 down
Total amount financed: $37716
Balloon payment: $34685 (satisfied by surrendering the car, plus $350, plus $7500)

Taking into account the $2500 rebate from the State of Texas, my total cost of ownership for 2 years is $4126, or $172/mo.

 

[rtanov]

Barebones 2014 BEV Mega (heated seats only), MSRP $43175, sell price 35650, $4875 tax credit, $27200 residual, $259/month for 24 months, 10k miles/year, $0 down, ~$720 in taxes, fees & registration (@ 6.75% tax rate). Put $2100 in refundable MDS to lower the MD, otherwise the monthly would have been ~$285. Taking into account the $1000 BMW CCA rebate total cost for 2 years would be ~$6000.

 

[websterize]

An outstanding deal, rtanov.

 

[czarmar]

rtanov - Definitely a great deal based on the sell price, but looks like they really jacked your MF, and that's where they got their profit. Based on my calculations they started you out at a .00214, then let you buy down to .00165.

If they were dealing with you straight(assuming you have excellent credit), they would have given you the base rate of .0013 and then your MSDs should have gotten down to .00081. That out of pocket difference in MF rate put the whole $1K BMWCCA rebate back in their pocket.

But the dealers do have some right to make money and you did get a great deal on the selling price. I just wish they'd be more upfront about it. Maybe that's why I like the Tesla sales model - consistent pricing, no games.

EDIT: I see you rolled the lease acquisition fee into the lease term - makes sense now. I think you've got one of the best deals I've seen. $6K total to drive the i3 for two years, tax inclusive is a crazy good deal.

 

[rtanov]

Czarmar, thanks for looking into this, but unless I did my math wrong I came with .00081 for the MF. Can you please check my calculations:
Sale price - $35,650
Acq. Fee - $995 - I know they hit me with $200 here but decided to let it go as I was happy with everything else
Sales tax - $393
-----------------
Gross Cap. Cost - $37,038
Cost reduction - $4,875
Res. Value - $27,200.25
-------------------
Depreciation - $4,962.75
Rent Charge - $1253.73 - there is nothing showing how this number was calculated

So, I thought that the RC would be (37,038 + 27,200.75)*0.00081*24 = 1,248.80 - close to RC what they had, so was Ok with it. Is this not correct?

 

[czarmar]

OK, I see you rolled your up front lease acquisition fee into the lease term. There's that extra $1000 I was missing.

Since I've been considering this lease, do they not reduce the initial cap cost with the credit? I would think that it should be:

(32163+27200)*.00081*24 = 1154?

Or do they game the system a bit by issuing the credit over the lease term, making the average amount of capital tied up larger?

i.e. 4875/24 = 203/mo?

Now I understand how great your deal is. My spreadsheet has me paying all one time fees up front along with my MSDs.

 

[rtanov]

Yes, I can see some logic in leaving the $4875 in there as it is related to a tax refund which is not immediately available.

BTW, I had another similar offer from a different dealer. Same car (they seem to still have them - two in stock) and it was about $250 less for the term of the lease but taking into account the cost of shipping to my location it got a bit more than this one. If anyone is interested and willing to travel to sign the agreement (they wouldn't do it remotely), and ship the car - send me a PM and I will give you that dealer contact info.

 

[seungboy]

what do you guys think about this lease?

MSRP 52,400
Residual value is 63% of MSRP, or $33,012
MF is 0.00125
There are no taxes on i3 lease/purchases
$5,500 lease rebate will be listed as rebate on the contract, and the $2,000 build out cash is included in the $4,125.31 discount
As you are leasing you do not receive a federal tax credit. That's why BMW has made a total of $7,500 available as capitalized cost reduction.
Your $5,000 is used as follows:
​$358.71 First payment
$150 Documentary Fee
$369 Estimated licensing fees
$775 Acquisition fee paid up front
$3,327.29 Capitalized Cost Reduction ("down payment")

 

[czarmar]

@seungboy - The lease numbers check out, although I think the selling price is a bit high at 48274. This amounts to about a 7% discount from MSRP, when a lot of people are reporting 15-17% off before the lease credit. Depending on your location, I'd hope to bring that selling price down to about 45K, and consider paying MSDs rather than down payment to reduce MF. If you can do that, then:

1K down to reduce payment under $300/mo for MSDs

Monthly Depreciation:
45K -1K - 33K - 5500 = 5488/24 = 228.67

Monthly Lease Fee
(45K + 33K)*.00125 = 97.51

With 7 MSDs ($2100 security deposit)
(45K+33K)*.00076 = 59

Total Monthly = 288/mo.

Total Cash up front: 1K + 2100(MSDs) ~= 3300 Cap cost reduction = so you still have about 5K down.

The difference is you'll get the MSDs back at the end provided you don't trash your car, and your payments are lower.

So consider negotiating hard on the selling price as they are high on that, and use MSDs in lieu of down payment to lower your leasing fees.

 

[Lectro]

rtanov,
You got a great deal!!
you could have also waived your acquisition fee with a MF adder of 0.00035.

 

[rtanov]

rtanov,
You got a great deal!!
you could have also waived your acquisition fee with a MF adder of 0.00035.

I wasn't aware of this, could have saved another $450 maybe. Thanks for pointing this out.
Edit: Interesting, if this waives the whole acquisition fee I am coming with $550 savings for the whole lease and $236/month. This will also reduce the MSD from $2100 to $1750. I was actually thinking of putting a small down payment to bring the monthly to under $250 which would reduce the MSD but decided it's not worth the hassle.

 

[adric22]

I have one payment left on my Volt lease. I'd like an i3, but i'm afraid it is too expensive. What is realistically the lowest lease payment I could get a base-model i3-Rex for with zero down (other than first month's payment)

 

[rtanov]

I have one payment left on my Volt lease. I'd like an i3, but i'm afraid it is too expensive. What is realistically the lowest lease payment I could get a base-model i3-Rex for with zero down (other than first month's payment)

cargurus.com and the TMV on edmunds.com are good places to see what sale price you might be expecting. Do the lease math and see what you come up with. The current residual value is 63% for a 2 year lease with 10k miles/year, money factor should be 0.00125-0.0013 but you can lower it with security deposits down to 0.00081 if you are willing to put some money that would be refunded at the end of the lease. Owner's Choice might be better than lease if you can find a dealer with a good offer to do it, i couldn't. Good luck!

 

[seungboy]

Thanks Czarmar, this is useful information.
For the selling price, the best i could do so far is 2k off invoice. still working to see if i can get that lowered.

has anyone have any success in increasing the residual value to > 63% on a 24month lease?

thanks,
Seung

@seungboy - The lease numbers check out, although I think the selling price is a bit high at 48274. This amounts to about a 7% discount from MSRP, when a lot of people are reporting 15-17% off before the lease credit. Depending on your location, I'd hope to bring that selling price down to about 45K, and consider paying MSDs rather than down payment to reduce MF. If you can do that, then:

1K down to reduce payment under $300/mo for MSDs

Monthly Depreciation:
45K -1K - 33K - 5500 = 5488/24 = 228.67

Monthly Lease Fee
(45K + 33K)*.00125 = 97.51

With 7 MSDs ($2100 security deposit)
(45K+33K)*.00076 = 59

Total Monthly = 288/mo.

Total Cash up front: 1K + 2100(MSDs) ~= 3300 Cap cost reduction = so you still have about 5K down.

The difference is you'll get the MSDs back at the end provided you don't trash your car, and your payments are lower.

So consider negotiating hard on the selling price as they are high on that, and use MSDs in lieu of down payment to lower your leasing fees.

 

[GoochBHBMW]

Hey Seung!
2k below invoice is not a super aggressive deal. That looks like invoice plus the rebates from BMW. Give me the details on the car you are looking at (what options you need) and I will get you some pricing way below invoice. Here is the real deal, when trying to negotiate a deal below invoice. The dealerships get paid directly for BMW for hitting sales quota's, if your dealer doesn't think they will hit the sales quota's then it doesn't make sense to take a crazy digger deal. My dealership is always wacky on price because we sell a lot of cars. Let me know if you want my help, just private message me.

 

[seungboy]

Thanks GoochBHBMW... PM sent.

Hey Seung!
2k below invoice is not a super aggressive deal. That looks like invoice plus the rebates from BMW. Give me the details on the car you are looking at (what options you need) and I will get you some pricing way below invoice. Here is the real deal, when trying to negotiate a deal below invoice. The dealerships get paid directly for BMW for hitting sales quota's, if your dealer doesn't think they will hit the sales quota's then it doesn't make sense to take a crazy digger deal. My dealership is always wacky on price because we sell a lot of cars. Let me know if you want my help, just private message me.

 

[ivonesh]

I sent Gooch this as a PM, but thought the group may be able to help me out.
--

I've been reading all the threads on leasing costs, pricing, etc. today and joined to ask a few questions.

I'd like to get into a 2014 or 15 REX with the minimal amount down and a low monthly payment, wouldn't we all. Ha!.

The newest BMW lease offer on their site is appealing for $329/mo, but that is $4,875 down and only 10k miles.
http://www.bmwusa.com/standard/cont...x?NAModelCode=14IB&OfferType=2&regiontypeid=1

I don't fully understand the MSDs and how best to approach the pricing. Looking for some help.

I'd like to do a 2 or 3 year lease, 15k yearly miles and a minimal amount down.

I'm in the Chicago suburbs, 7.25% sales tax. Additionally, an IL law was just passed that we only pay 50% of the sales tax, prior it was 100% just as if you bought a car.

I'm assuming that I can factor in the 7500 Federal Tax Credit and the IL specific 4000 tax credit.

I understand that if I lease with the Owner's Choice with Flex that I can apply the 7500 and reduce the monthly cost and still walk away at the end of the 24 months. If I wanted to purchase at that time, I would need to pay an additional 7500.

Of course I emailed a dealership today and they want me to come in. No thanks. When I asked more specific questions they never replied. Shocking, I know.

I want to understand my options and call/email exactly what I want before stepping foot into the dealership.

Any help would be greatly appreciated. Thanks in advance!

 

[websterize]

The most important initial step for the i3 deal is negotiating the sales price before factoring federal/state/OEM incentives. Aim for 15%-20% off MSRP. This will be easier on a stale 2014 than a new 2015. Once you're in the ballpark of that discounted selling price, we can advise on next steps with regard to MSD, MF, RV, trunk money, leasing vs. OC+Flex, etc. — all the fun financing acronyms.