Is this a good deal - 335xi?

[nlapoula]

I'm new to this site - this is awesome.

2008 335xi coupe
36mo. / 15k miles per yr
premium
sport
ipod
sat. radio
heated seats
metallic paint

MSRP: $49,670
Money Factor: .0023
Discount: $2,500 off MSRP
Residual is 59%
Free window tinting and floor mats

Monthly payment is $750 (with no $ down except, security deposit (750) + Title, Tags & Misc (166) + first months payment (750))

Still debating whether i want to put some money down or do the MSDs...

Is this a good deal?

Has anybody heard anything bad about the MSD program? I am nervous that at the end of the lease, since they already have my $, they will be more inclined to charge me for wear & tear, etc. (in essence finding ways to keep my money) than if they didn't have my money.

[Nikolas1]

That seems high to me. Did you use the lease calculator. Mine came to an agreed upon cost of $46,500 or so and my payment is $601. I had the same MF and terms. I put $1000 down. Our overall cost difference is only $2000. I don't believe that would increase the payment by $150/mo.

[psucelticXI]

Still debating whether i want to put some money down or do the MSDs...

Is this a good deal?

Has anybody heard anything bad about the MSD program? I am nervous that at the end of the lease, since they already have my $, they will be more inclined to charge me for wear & tear, etc. (in essence finding ways to keep my money) than if they didn't have my money.


Yeah, this is something I was wondering about too... It'd probably depend on the dealership though.

[TambourineMan]

i don't see how any of you can compare these leases because you do not include all the required info - like what is the tax rate, is it on the cap cost, the purchase price, or the payment. i can't get to either of the monthly amounts quoted here, although using the lease calculator I get closest to $750. I played with a bunch of parameters and can't get it down close to $601

[Ty Vil]

i don't see how any of you can compare these leases because you do not include all the required info - like what is the tax rate, is it on the cap cost, the purchase price, or the payment. i can't get to either of the monthly amounts quoted here, although using the lease calculator I get closest to $750. I played with a bunch of parameters and can't get it down close to $601
You're correct.

[Nikolas1]

Mine is without tax. Since tax is a variable, state by state it will always be different. With tax, mine is just under $650/mo. I would have to go through all my paperwork to get the other info. It just seems off to me that the price per month would be that much higher given the same MF.

[nlapoula]

My monthly payment includes 7.75% tax. I was using the lease calculator on leaseguide.com to calc my payment and I matched the dealers quote given the terms. Every thousand dollars down (or diff. in price) will decrease the monthly payment by approx. $30/month on a 36 month lease. So, w/ a $2000 difference that would put my monthly cost approx. $60 higher right off the bat. If my tax rate is higher, that could also account for the difference.

[Nikolas1]

I also went back to check my paperwork to see what was up. Mine is not a 36 month lease it is a 39 month. It was a good deal as it had the same residual as the 36 month and same mf so it just lowers the payment and extends the term 3 months.

[Beer Goggles]

If you want to put down MSDs why not put down some money to lower the payment. In a lease you're basically paying off a fix amount of the car, for example 50% of it. So if you have money to hold up in MSD for 3 years just to get a 1% drop in interest (which is maybe $10 a month). Then why not lower you payment by prepaying a little. You aren't losing anything (since you have to pay anyway) and you'll have a lower payment.

[nlapoula]

Well, if you do the math, the MSD will yield a return on your money of approx. 9%. If you put money down, you will yield a return on your money of approx. 5%. (each not taking into account opportunity cost of investing your money). The MSD downfall is that your money is completely illiquid for the life of the lease. With down payments you have more liquidity (getting more money back in lower payments each month), but you have the risk of losing the down payment completely if you total your car.

It is these risks that are swaying me back and forth. Liquidity vs. Return vs. Risk of Loss

I think ill do a combination of both - DP and MSD