Zero Down on a Lease?
03-04-2007, 06:13 PM
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Okay...maybe I'm learning something new here, which would be a good thing. I've leased my last 6 cars and have always put around $2,000 down which has covered the 1st month payment, tax/title/registration, etc. and maybe bought down the rate with whatever balance was leftover.....if you are telling me I am making a mistake doing this, the dealer will let me walk off the lot without paying for the 1st month's payment? (in essence, you're telling me I'll eventually get a bill from BMW NA?)...ditto for the title/registration--when would I get the bill from my local DMV? I would be allowed to drive off the lot without having first paid the registration fees??? Please enlighten me if I need enlightening. Thanks.
03-04-2007, 06:22 PM
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Originally Posted by elchevere' post='398501' date='Mar 4 2007, 07:13 PM
Okay...maybe I'm learning something new here, which would be a good thing. I've leased my last 6 cars and have always put around $2,000 down which has covered the 1st month payment, tax/title/registration, etc. and maybe bought down the rate with whatever balance was leftover.....if you are telling me I am making a mistake doing this, the dealer will let me walk off the lot without paying for the 1st month's payment? (in essence, you're telling me I'll eventually get a bill from BMW NA?)...ditto for the title/registration--when would I get the bill from my local DMV? I would be allowed to drive off the lot without having first paid the registration fees??? Please enlighten me if I need enlightening. Thanks.
0 down means , minimum drive off.. i think you can only finance the security deposit, but not the first month
and reg fees.. on a 5 series the lowest I saw was $1100 down..
03-04-2007, 06:24 PM
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Originally Posted by elchevere' post='398501' date='Mar 4 2007, 10:13 PM
Okay...maybe I'm learning something new here, which would be a good thing. I've leased my last 6 cars and have always put around $2,000 down which has covered the 1st month payment, tax/title/registration, etc. and maybe bought down the rate with whatever balance was leftover.....if you are telling me I am making a mistake doing this, the dealer will let me walk off the lot without paying for the 1st month's payment? (in essence, you're telling me I'll eventually get a bill from BMW NA?)...ditto for the title/registration--when would I get the bill from my local DMV? I would be allowed to drive off the lot without having first paid the registration fees??? Please enlighten me if I need enlightening. Thanks.
1. Capitalized Cost Reduction = $ 500.00
2. 1st Month Payment = 736.75
3. Initial License Fees (Reg). = 434.00
4. Acquisition Fee = 725.00
5. Sales tax in Capitalized Cost= 38.75
6. Other Upfront Charge = 56.19
7. California Tire Fee = 8.75
I imagine I could have skipped on the capitalized cost reduction, but that would have increased my monthly payment...anything else I should not have paid for.....I live in California, if that makes a difference.
Thanks for your help.
03-04-2007, 06:43 PM
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I'm no leasing expert but I think you are correct that the cap cost reduction is basically a down-payment. The other fees may not be as negotiable. Clearly, the reason for the down payment (cap cost reduction) would be to reduce the monthly payment but in the long run, you're paying more money in total by letting them have $500 bucks up front.
In my opinion, you're always better off with a $0 cap cost reduction -- take the money you'd otherwise hand to them and put it somewhere that pays interest. The increased payment per month should not be that much and you get to let your money stay in the bank longer...
In my opinion, you're always better off with a $0 cap cost reduction -- take the money you'd otherwise hand to them and put it somewhere that pays interest. The increased payment per month should not be that much and you get to let your money stay in the bank longer...
03-08-2007, 07:55 PM
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Originally Posted by alex911s' post='398503' date='Mar 4 2007, 10:22 PM
i think you can only finance the security deposit...
Why and how in the world you would finance a security deposit?
03-08-2007, 08:45 PM
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03-09-2007, 09:07 AM
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Originally Posted by vegastrashed' post='400528' date='Mar 9 2007, 12:45 AM
BMW calls it Multiple Security Deposit. For more info.
Guys:
Thanks for the input....so if I am understanding you correctly, looks as though I should avoid items 1 (CCR) and 6 (other) fees altogether....anybody know if the "Dealer Acquisition Fee" is a legitimate charge in California or is it a form of dealer profit padding? Many thanks--sorry for my ignorance.
03-09-2007, 09:40 AM
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My Ride: 2007 E63 AMG | Obsidian Black | Schwarzes Nappa | Black BirdEye Maple | Premium II Package | Electronic Trunk Closer | Parktronic
Engine: RPi/Powerchips custom ECU tune, RPi Ram Air Kit (BMC filter, scoops), RennTech Sport exhaust, secondary cats, charcoal and resonator delete, custom AAA x-pipe
Exterior: 50% side windows / 35% rear window Formula One Pinnacle Series | Flat AMG hood emblem
Suspension: Renntech Lowering Module
Wheels/Tires: Radenergie R10, Falken FK452 245/30/20, Yokohama ADVAN Sport 285/25/20
-----------------------------------------
2005 545i Sport SMG | Ti Grau | Schwarzes Dakota | Anthracite Maple | Logic 7 | Nav
Engine: Custom AFE CAI, Superchips ECU remap, Sprint Booster, RDSport Dual Exhaust Conversion with Quad Pipes and X-pipe, 3 resonators deleted, 90mm tips!
Exterior: M-Tech Aero kit | M5 Mirrors | M5 Rear Bumper | Trunk Lid Finisher | Vorsteiner decklid spoiler | 50% Formula One Pinnacle Tint
Suspension and Brakes: Bilstein PSS9 coilovers, JBT BBK: 16" cross-drilled rotors, 8 piston and 15" cross-drilled rotors, 4 piston
Wheels: VIP Modular VR 02 20x9F, 20x10R | Toyo T1R 245/30/20F, 285/25/20R
Lights: PIAA 4150K Xtreme White Plus fog lights, AIB v3
MOST IMPORTANT: Hardwired V1; =)
ED Date: 4/7/05, Re-delivery date: 5/21/05
The "Acquisition Fee" is legitimate. The fee is $625 but dealers can and do add to that amount. It's negotiable.
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