I was just given a quote on a 24 month lease for a 328i coupe. 499/mth with 2998 out of pocket, however I have a question. My girlfriend recently bought a 328xi sedan from the same dealership and her out of pocket was $2000 for 27 mths and she did NOT have to pay bank fee or security deposit. Here is her breakdown vs. mine

Mine
499 1st month
125 DMV fees
500 security deposit
625 bank fee
999.99 tax
249 Documentation Fee

Total $2998

Hers
249.51 cap cost reduction
499 first month
125 DMV fees
1126.49 tax

Total $2000 , Her 249 documentation fee was added to gross cap cost

Bank fee and security deposit she didnt have to pay. This is the same dealership, even SAME SALESMAN...I didnt realize she didnt pay them until after I got home and I'm supposed to sign the deal on saturday. Do you think I can convince them to waive these fees or am I stuck paying them??

did she have another BMW beforehand? the security fee carries over if you are coming from another BMW. I've never heard of no bank fee though... unless they rolled it into the cap cost.

No she didnt have another bmw...maybe they rolled it in and just didnt write it on the lease agreement.

I was just given a quote on a 24 month lease for a 328i coupe. 499/mth with 2998 out of pocket, however I have a question. My girlfriend recently bought a 328xi sedan from the same dealership and her out of pocket was $2000 for 27 mths and she did NOT have to pay bank fee or security deposit. Here is her breakdown vs. mine

Mine
499 1st month
125 DMV fees
500 security deposit
625 bank fee
999.99 tax
249 Documentation Fee

Total $2998

Hers
249.51 cap cost reduction
499 first month
125 DMV fees
1126.49 tax

Total $2000 , Her 249 documentation fee was added to gross cap cost

Bank fee and security deposit she didnt have to pay. This is the same dealership, even SAME SALESMAN...I didnt realize she didnt pay them until after I got home and I'm supposed to sign the deal on saturday. Do you think I can convince them to waive these fees or am I stuck paying them??


Sorry to hijack your thread, but can you tell me what options your car has? and your Gf's? I'm shopping on Long Island

You do not have to come out of pocket on any lease other than your first month lease payment.
All you are doing when you put money down is paying for some of your lease payment early so your monthly will be less.
Also, the dealership should waive the secruity deposit if you have decent credit.
I just leased a 328i e90,prem.pkg,graphite ext,heated seats for $590.00 per month for 36 months...TOTAL. This is with 20000 miles per year.
The original miles were 10000 which was not enough for me, so i bought addional 10000 per year at .015 per mile.
Bottom line...I only paid $590.00 and had the car brought to my house and will make 35 more payments at $590.00. This is for 60000 mile lease. Bmw will by back any unused miles at .015 per mile.
Hope this helps.

you probably don't really want to have the security deposit waived... the security deposit lowers your MF, thus giving lower payments. if your dealership is good you can tell them exactly how much you'll come out of pocket on delivery and they will calculate how much of that is the security deposit, bank fee and cap reduction. you do better on the rate if you pay the fees and use a smaller amount as cap reduction than the other way around. it saved me around $30 a month because of calculating this way rather than the other.

Yes, can you tell us what dealer you're working with, I am shopping on Long Island too, thanks!

you probably don't really want to have the security deposit waived... the security deposit lowers your MF, thus giving lower payments. if your dealership is good you can tell them exactly how much you'll come out of pocket on delivery and they will calculate how much of that is the security deposit, bank fee and cap reduction. you do better on the rate if you pay the fees and use a smaller amount as cap reduction than the other way around. it saved me around $30 a month because of calculating this way rather than the other.

I don't think the first security deposit lowers your money factor. You can buy down our rate by making additional security deposits. My understanding is the security deposit is required by the BMW FS lease and can not be waived by the dealer. It is waived by BMW FS if you are a returning BMW leassee

My secruity deposite was waived. I was told that any dealer can waive this if you have good credit. Im not sure how good it must be before this happens.
Why would someone need to ask for a secruity deposite if you have outstanding credit.
I would never put $ down on a lease, only the first month payment.

For a 1st time BMW finance customer, paying a security deposit will lower the money factor. If you are a returning customer, you dont need to pay any security deposit to get that same rate. Anybody can buy down the rate even further by paying up to 7 security deposits. Your gf must have had the bank fee rolled in.

What? They buy back unused mileage at .15 cents per mile? Can this be true?

Truths -

1. $625 bank fee is the lowest you can have thru BMWFS. Some dealers charge more as a markup.
2. Some people do put down up to 7 secured deposits to lower their MF. Whether it's worth it or not, it's up to you to do the numbers and see if putting down $700 saves you a hundred or so dollars. For my numbers, it wasn't worth it.
3. You can buy more miles on your lease. I think it's 15 cents per mile before hand, 17 cents per mile mid year, and then there's another rate which I don't remember. BMW only buys back unused mileage that you have prepaid for. So if you have a 12,000 mile lease, they will not buy back any of those miles unless you paid for more.

That is correct, they will only buy back addional purchased miles at the same cost you paid for them....015 per mile.

That is correct, they will only buy back addional purchased miles at the same cost you paid for them....015 per mile.

Only on leases that exceed 15k miles per year? Is that what you mean by additional purchased miles?

2. Some people do put down up to 7 secured deposits to lower their MF. Whether it's worth it or not, it's up to you to do the numbers and see if putting down $700 saves you a hundred or so dollars. For my numbers, it wasn't worth it.

Agree, I ran the numbers on this when I first heard of it and concluded that it was better to keep the money invested and liquid versus tying it up for three years.

2. Some people do put down up to 7 secured deposits to lower their MF. Whether it's worth it or not, it's up to you to do the numbers and see if putting down $700 saves you a hundred or so dollars. For my numbers, it wasn't worth it.

I put down 2 extra security deposits of $600 ($1200 total) on my lease. This lowered by payment by $10.63. Over the 36 month lease, that is a savings of $382.68. In order to beat that, I would need to be able to invest that $1200 and make MORE than a 9.5% APY return compounded monthly. Since that is more than any savings/CD/money market will earn, I decided to do it since I had the money available.

Sorry to hijack your thread, but can you tell me what options your car has? and your Gf's? I'm shopping on Long Island

My gfs is 328xi sedan with premium package, heated seats and metallic paint. Shes paying 499 per month for 27 months 10k per year...with $2000 out of pocket.

I'm looking to purchase a 328i coupe with Premium package, heated seats, sirius satellite and metallic paint. The current price Im negotiating is $487 per month for 24 months with 10k year...$2644 out of pocket.

Her deal was from Open Road BMW in Edison, NJ and my initial deal was but I'm currently being offered this deal which is a little better from Life Quality BMW in Bay Ridge, Brooklyn. I will let you know when I finalize the deal how it ends up.

I put down 2 extra security deposits of $600 ($1200 total) on my lease. This lowered by payment by $10.63. Over the 36 month lease, that is a savings of $382.68. In order to beat that, I would need to be able to invest that $1200 and make MORE than a 9.5% APY return compounded monthly. Since that is more than any savings/CD/money market will earn, I decided to do it since I had the money available.

Glad it worked out for you, it really isn't a pissing contest here, if it works out better for you, great. I'm glad you pointed out the numbers for the OP to see though. :)

p.s. Your situation is different than mine, I intend on buying at the end of the lease and saved money via ED.

Glad it worked out for you, it really isn't a pissing contest here, if it works out better for you, great. I'm glad you pointed out the numbers for the OP to see though. :)

p.s. Your situation is different than mine, I intend on buying at the end of the lease and saved money via ED.

Wasn't trying to start one. I just thought posting a real world example of the numbers would help the OP and anyone else who stumbled into the thread.

BTW, returning the car at the end of the lease or purchasing it doesn't affect whether the multiple security deposit scenario helps you.

Doesn't it? What would be the total price of the car (lease payments + buyout) if you used MSDs vs no-MSDs? Is the savings still $382.xx?

Yes, just verified this by looking at my lease agreement. Buyout is just residual which is calculated as a percentage of MSRP depending on what lease terms you choose (months/miles). Either way you get back all of your security deposits (assuming no damage), so that isn't a factor.