[limeypride]

Originally Posted by unfoundnemo

Figured I could add to his regarding what happens if you don't have those protections before anyone read through. You're quick.

Thx!

[Wolfman64]

Good to know that this can be done.

But then this is a run of the mill lease on which it makes no sense (to me) to put down any money in the first place. MSD's would be the better choice.

[Saunders17283]

While I realize I'm posting this a little late (I already leased the M850 GC), I want to further my lease knowledge for my next vehicle.

I was moving from a loaned X5 (BMWFS) to a leased M850 GC. Therefore, they took the trade-in equity and applied it to the lease (which lowered payment obviously).

When I read this thread, it seems the consensus is NO MONEY DOWN.

How do you handle a scenario like this in the future? Tell them you want to keep the sale of the trade-in vehicle off the deal?

Unfortunately, I'm also noticing I could have gotten closer to $10k pre loyalty (around 9-11% off MSRP of $116,025) and I only got $4k off + $7k loyalty. I just didn't engage in this forum as much as I should have during the purchase...lesson learned

I signed on the lease on 8/27/2020.

[Belugs]

Originally Posted by Saunders17283

While I realize I'm posting this a little late (I already leased the M850 GC), I want to further my lease knowledge for my next vehicle.

I was moving from a loaned X5 (BMWFS) to a leased M850 GC. Therefore, they took the trade-in equity and applied it to the lease (which lowered payment obviously).

When I read this thread, it seems the consensus is NO MONEY DOWN.

How do you handle a scenario like this in the future? Tell them you want to keep the sale of the trade-in vehicle off the deal?

Unfortunately, I'm also noticing I could have gotten closer to $10k pre loyalty (around 9-11% off MSRP of $116,025) and I only got $4k off + $7k loyalty. I just didn't engage in this forum as much as I should have during the purchase...lesson learned

I signed on the lease on 8/27/2020.

$7k loyalty? How?

Is car custom order or picked up from dealer lot?

Enjoy your purchase!

[Saunders17283]

Originally Posted by Belugs

$7k loyalty? How?

Is car custom order or picked up from dealer lot?

Enjoy your purchase!

My sales advisor sent me some link from BMW that doubled my loyalty dollars from $3k to $6k plus added $1k for "attending" a sales event at the dealership.

The car was custom order

Thanks!

[Belugs]

Originally Posted by Saunders17283

My sales advisor sent me some link from BMW that doubled my loyalty dollars from $3k to $6k plus added $1k for "attending" a sales event at the dealership.

The car was custom order

Thanks!

More details on the link pls; what is the link? And do you have a to satisfy a specific criteria to qualify for this 2X loyalty?

Thanks

[Saunders17283]

Originally Posted by Belugs

More details on the link pls; what is the link? And do you have a to satisfy a specific criteria to qualify for this 2X loyalty?

Thanks

Not really sure about specific criteria. I've purchased quite a few BMW's from this dealership and they hold special events at the dealership from time to time.

I just went back and clicked on the link I was sent and the page that loads says, "Registration for this event is now closed. We hope to see you at another event."

[Belugs]

Originally Posted by Saunders17283

Not really sure about specific criteria. I've purchased quite a few BMW's from this dealership and they hold special events at the dealership from time to time.

I just went back and clicked on the link I was sent and the page that loads says, "Registration for this event is now closed. We hope to see you at another event."

Ah gotcha thanks. Was most likely a sales event for select loyal customers.

[Saunders17283]

Are you currently working on a deal for a MY20 M850 Belugs?

[Belugs]

Originally Posted by Saunders17283

Are you currently working on a deal for a MY20 M850 Belugs?

Have a MY21 M8GC on order

[Saunders17283]

Originally Posted by Belugs

Have a MY21 M8GC on order

Congrats!

Any advise on my originally proposed questions in post #201 above?

[Belugs]

Originally Posted by Saunders17283

Congrats!

Any advise on my originally proposed questions in post #201 above?

Sure!

No money down is best practice meaning no cash down. If you have a loan vehicle obviously u can trade it in to lower your lease payments with your equity in the vehicle. I think that's okay. Saves you from the trouble and time to find another buyer etc. If the vehicle is already fully paid off then I wouldn't suggest trading it in.

For the new car, I think the $4k off MSRP + $7k incentives is good for a custom order. Doubling of the incentive makes this a good offer. If it were just the $4k off MSRP and normal rate incentives then would have said to push for at least 6-7% off MSRP. So good deal in my opinion.

[toneil44]

Originally Posted by Belugs

Sure!

No money down is best practice meaning no cash down. If you have a loan vehicle obviously u can trade it in to lower your lease payments with your equity in the vehicle. I think that's okay. Saves you from the trouble and time to find another buyer etc. If the vehicle is already fully paid off then I wouldn't suggest trading it in.

For the new car, I think the $4k off MSRP + $7k incentives is good for a custom order. Doubling of the incentive makes this a good offer. If it were just the $4k off MSRP and normal rate incentives then would have said to push for at least 6-7% off MSRP. So good deal in my opinion.

I'm confused w/ your advice in first para above.

Let's say I have existing car on loan w/ 50% paid off. OK to trade in the 50% equity to lower lease payments. W/ fully paid off car, not OK to trade in the 100% equity to lower lease payments.

Are you saying that ideally you wouldn't want to apply any of the equity in the car you're getting rid of to lower your lease payments in the new car. It's just harder to find a buyer w/ a car that's under loan w/ say 50% equity than to find a buyer for a car that's fully paid off. So keep the money you get by selling the fully paid off car. Use it to help w/ the monthly lease paynents or invest it or whatever.

Only issue here as I see it, is in MA, sales tax at 6.25% is applied to out-of-pocket cost when purchasing a car. So a trade-in lowers the value to be taxed on. W/ a leased car the sales tax is applied to the monthly payments.

Have I got this right?

[Belugs]

Originally Posted by toneil44

I'm confused w/ your advice in first para above.

Let's say I have existing car on loan w/ 50% paid off. OK to trade in the 50% equity to lower lease payments. W/ fully paid off car, not OK to trade in the 100% equity to lower lease payments.

Are you saying that ideally you wouldn't want to apply any of the equity in the car you're getting rid of to lower your lease payments in the new car. It's just harder to find a buyer w/ a car that's under loan w/ say 50% equity than to find a buyer for a car that's fully paid off. So keep the money you get by selling the fully paid off car. Use it to help w/ the monthly lease paynents or invest it or whatever.

Only issue here as I see it, is in MA, sales tax at 6.25% is applied to out-of-pocket cost when purchasing a car. So a trade-in lowers the value to be taxed on. W/ a leased car the sales tax is applied to the monthly payments.

Have I got this right?

I think we are saying the same thing with your 50% paid loan scenario. If I have paid for only 50% of the car I would be more inclined to trade it in and get some credits so I don't have to worry about finding a buyer because it is more difficult to find a buyer for a partially paid off car.

If the car is fully paid off I would be more inclined to find a buyer myself rather than trade in because the financials will probably be more favorable than trading it in (statistics suggest you get more $$$ when you sell to a private buyer over selling to dealership or trading in)

The reduced tax benefit is also true like u said. You can get reduced sales tax on both tax applied to selling price or tax applied to lease payments if you trade in. Obviously it all depends on the specific situation. I suggest you do the math first looking at all possible scenarios before making a decision by picking the most financially favorable scenario.

[toneil44]

Originally Posted by Belugs

I think we are saying the same thing with your 50% paid loan scenario. If I have paid for only 50% of the car I would be more inclined to trade it in and get some credits so I don't have to worry about finding a buyer because it is more difficult to find a buyer for a partially paid off car.

If the car is fully paid off I would be more inclined to find a buyer myself rather than trade in because the financials will probably be more favorable than trading it in (statistics suggest you get more $$$ when you sell to a private buyer over selling to dealership or trading in)

The reduced tax benefit is also true like u said. You can get reduced sales tax on both tax applied to selling price or tax applied to lease payments if you trade in. Obviously it all depends on the specific situation. I suggest you do the math first looking at all possible scenarios before making a decision by picking the most financially favorable scenario.

Thanks. I've never leased a car before. Thus my post. Wanting to learn about leasing.

I'm looking to be in the same position as you. Custom order a ML 21 M8 Comp GC.

[Belugs]

Production complete. About to make its way across the pond!

[limeypride]

Originally Posted by Belugs

Production complete. About to make its way across the pond!

Well, that looks rather nice but perhaps I'm a tad biased .

Post the build spec, please?

[Belugs]

Originally Posted by limeypride

Well, that looks rather nice but perhaps I'm a tad biased .

Post the build spec, please?

M8 GC Comp
Frozen Dark Silver Individual exterior color
Black full merino leather with midland beige
Carbon fiber interior trim
Driving assistance package
B&W sound system
M carbon exterior package
M Red caliper brakes

[limeypride]

Originally Posted by Belugs

M8 GC Comp
Frozen Dark Silver Individual exterior color
Black full merino leather with midland beige
Carbon fiber interior trim
Driving assistance package
B&W sound system
M carbon exterior package
M Red caliper brakes

Then my bias is confirmed: great choice!

What are your mod plans if any?

PS: PPF it *immediately *.

[Belugs]

Originally Posted by limeypride

Then my bias is confirmed: great choice!

What are your mod plans if any?

PS: PPF it *immediately *.

Yup already have PPF scheduled to drop car off after pickup.

Mods at this point are only wheel spacers and air intakes. Don't have much planned for mods yet.

[BavarianPrince]

Originally Posted by happydanny3

My SA offered me $1299 on a 2020 M850i lease. MSRP was $123,500. Lease was for 36/10k mike. Due at signing was $1724.

Do it!

[BavarianPrince]

Originally Posted by limeypride

Can you walk us through the hypothetical best-case scenario, please:

1. person leases an F90 M5
2. naively puts $10K down to lower their monthly payments
3. car is written off say 6 months later (no-fault state/policy)
4. person has your best insurance incl. new car replacement or equiv.

... what happens here once the car is 'written off' in terms of policy payout, etc.?

You lost your 10 grand