Is this a Good Lease on a Giga Rex in Los Angeles?

[johnnydrim]

I am on the cusp of closing on a lease for a Giga World Rex and would like your advice.

I had an extended test drive -- 3 days-- and fell in love with the car. I have been driving a 528i for 14 years. I was driving my daughter to 5th grade in the i3 and for the first time we heard the birds as we drove down our driveway.

The model I want has the Tech Pkge, Parking Assist Pkge, fast charging and heated seats. I contacted at least 10 dealers. No one had the color and specs I wanted. Ionic silver. I had a broker locate the car and negotiate. It's just arrived at Port Hueme yesterday.

I haven't signed anything yet but the car should be prepped within 1-4 days.

the MSRP is $52950

The selling price is $47955.

Monthly payments are $569 including tax at 10k mi /year.

finance rate is 0.00125 money factor (which is approx. 3% APR)

They want $2000 down which covers aprox. $700 in registration, taxes and other fees, $569 first payment and the rest goes to Cap reduction.

It seems pretty good to me from what I've read on the site. I don't need the bestest deal in the world, just a good, solid, fair one.

Also one added question>>

The rate for the 24 mo and 36 mo is exactly the same: $569. I was surprised by this.

the residual for 24 months is $33,358 and for 36 months is $28,063.50.

I really only want it for 2 years but if I lease for 3 years I get the California credit of $2500.

I asked about the OC plan. The dealer's finance guy said no one is using the OC plan and that there was no appreciable benefit. He sounds like he doesn't understand it.

So any advice will be a great help!

Johnny in Santa Monica

 

[fferro09]

Look at my post (very last one at the bottom). That doesn't seem like a good deal compared to what I got. I'm not sure if this varies by state, but as long as your federal income tax liability is equal to or greater than $7,500, you should receive $7,500 from the IRS, and BMW will raise the residual value of the car by $7,500, thus reducing monthly payments. But, as an example, if your federal tax liability for 2014 is $5,000, you'll only receive $5,000 from the IRS but BMW will still raise the residual value by $7,500, so you'll owe BMW the difference of $2,500 at the end of the lease. But at least those $2,500 are interest free.

If California limits it to $2,500, I think you're better off with the 2 year lease and no credit, because the residual value after 36 months will be more than $2,500 less than the 24 month residual value.

Ok, long answer short, your payments should be around $400, depending on the credits the dealership offers. They should be offering you holiday credits of $3,000. The MSRP of the one I got was $49,900. They reduced it to $41,625. With $2,000 down, my payments are $399/month. So I would not go with $569!

 

[i3Alan]

..., but BMW will still raise the residual value by $7,500, so you'll owe BMW the difference of $2,500 at the end of the lease. But at least those $2,500 are interest free.

The OC with Flex plan adds $7500 to the OC plan, but that is a loan. The residual does not change. If you walk away from the car at the end of the plan, you still owe BMW the $7500 (which in theory you saved off your federal taxes the year following your purchase), and you also still owe the fees for a title transfer (the same fee that is paid on a lease if you decide to pay the residual and keep the car). You also pay interest on that $7500.