Here's a little bit of what I do all day, and why my customers always come back to me...It's all in the details..

Scenario: Customer of mine has a CL550 currently, leased it for 36 mos with 12k miles/year, and currently has about 83-84k miles on his car. He knew he would go over the miles, and at the time we did a bunch of calculations before determining that he's better off paying for the over miles after the lease is up. Here's the e-mail I just sent him, I confused myself a few times in these calculations, hopefully I did it right!


Car I used:
2012 CL550 4 Matic
Black Exterior/Black Interior

Options:
Premium 2 Package (Heated and active ventilated seats, keyless go, rear view camera, active multicontour seats with massage, night view assist)
Illuminated Door Sills
Driver Assistance Package (Distronic plus, active blind spot assist, active lane keeping assist)
Sport Package (19” AMG Wheels, Sport Body Styling, All Season Tires)
Heated Steering Wheel
MSRP $128,505

Lease:
24 mos/12k miles: $2130 plus tax with about $7,700 total out of pocket
27 mos/12k miles: $2079 plus tax with about $8,000 total out of pocket
30 mos/12k miles: $2035 plus tax with about $8,300 total out of pocket
36 mos/12k miles: $1965 plus tax with about $8,900 total out of pocket
39 mos/12k miles: $1905 plus tax with about $9,100 total out of pocket
42 mos/12k miles: $1825 plus tax with about $9,200 total out of pocket
48 mos/12k miles: $1695 plus tax with about $9,400 total out of pocket

24 mos/15k miles: $2230 plus tax with about $7,970 total out of pocket
27 mos/15k miles: $2169 plus tax with about $8,250 total out of pocket
30 mos/15k miles: $2115 plus tax with about $8,540 total out of pocket
36 mos/15k miles: $2030 plus tax with about $9,130 total out of pocket
39 mos/15k miles: $1965 plus tax with about $9,315 total out of pocket
42 mos/15k miles: $1880 plus tax with about $9,400 total out of pocket
48 mos/15k miles: $1745 plus tax with about $9,600 total out of pocket

Total out of pocket includes the 1st month, bank fee, dmv/plates/doc fee and sales tax.

The payments in bold would be your better option to lease with factoring in the mileage. Here’s how I got to it:

On a 24 mo lease, paying the extra amount on a 15k mile/yr lease will cost you $2,400 over the time, but would cost $1,500 if you paid the overage at the end.
On a 27 month lease, paying the extra amount on a 15k mile lease will cost you $2,430 over the time, but would cost $1,687 if you paid the overage at the end.
On a 30 month lease, paying the extra amount on a 15k mile lease will cost you $2,400 over the time, but would cost $1,875 if you paid the overage at the end.
On a 36 month lease, paying the extra amount on a 15k mile lease will cost you $2,340 over the time, but would cost $2,250 if you paid the overage at the end.
On a 39 month lease, paying the extra amount on a 15k mile lease will cost you $2,340 over the time, but would cost $2,437 if you paid the overage at the end.
On a 42 month lease, paying the extra amount on a 15k mile lease will cost you $2,310 over the time, but would cost $2,625 if you paid the overage at the end.
On a 48 month lease, paying the extra amount on a 15k mile lease will cost you $2,400 over the time, but would cost $3,000 if you paid the overage at the end.

--------------------------

I’m estimating you’re doing about 28k miles per year, here’s the realistic numbers if you work the miles in the payments:

24 mos/28k miles: $2615 plus tax with about $8,900 total out of pocket
27 mos/28k miles: $2515 plus tax with about $9,250 total out of pocket
30 mos/28k miles: $2439 plus tax with about $9,450 total out of pocket
36 mos/28k miles: $2315 plus tax with about $10,150 total out of pocket
39 mos/28k miles: $2239 plus tax with about $10,330 Total out of pocket
42 mos/28k miles: $2140 plus tax with about $10,420 total out of pocket
48 mos/28k miles: $1985 plus tax with about $10,630 total out of pocket

The payments in bold would be your better option to lease with factoring in the mileage. Here’s how I got to it:

If you pay for it at the end of the lease assuming you did a 12k (24/27/30/36) or 15k (39/42/48 mile lease and paid the overage:

24 month lease, paying the extra amount on a 12k mile/yr lease will cost you $11,640 over the time, but would cost $8,000 if you paid the overage at the end.
27 month lease, paying the extra amount on a 12k mile lease will cost you $11,772 over the time, but would cost $9,000 if you paid the overage at the end.
30 month lease, paying the extra amount on a 12k mile lease will cost you $12,120 over the time, but would cost $10,000 if you paid the overage at the end.
36 month lease, paying the extra amount on a 12k mile lease will cost you $12,600 over the time, but would cost $12,000 if you paid the overage at the end.
39 month lease, paying the extra amount on a 15k mile lease will cost you $10,686 over the time, but would cost $10,559 if you paid the overage at the end.
42 month lease, paying the extra amount on a 15k mile lease will cost you $10,920 over the time, but would cost $11,371 if you paid the overage at the end.
48 month lease, paying the extra amount on a 15k mile lease will cost you $11,520 over the time, but would cost $12,996 if you paid the overage at the end.
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My head is spinning, bro.

So basically it's cheaper to just drive the hell out of it and then pay the overage at the end, with the sweet spot being 36-39 months. That makes me rethink leasing, since I thought I drove too much to do it....I always finance....

 

It depends on the car, on how much the overage is for excess miles, and how expensive the car is. Not all the cars are the same..

 

It's cool that you figured that out for the customer, it builds trust which is rare when buying a car. How big is your dealership?

 

I figured as much. I think it's awesome you went to all that for your customer.

 

I'm a details guy, I tend to give a lot of information. Sometimes too much

As for my company, I'm sharing space with another dealer and the building is HUGE, but I'm not such a big company, only staffing about a half dozen. The space I have here is a LOT more than I need.

 

 

cliffs? Eddie - I hope you have some sort of excel spreadsheet where you could plug in the values and it links to formulas and does all the calculations for you???

 

So what did the customer wind up doing?

 

Cliffs are in the scenario...And I use a system to calculate the current programs. But all the numbers above I had to use a good 'ol calculator and figure it all out myself.

 

Nothing yet. He's probably reviewing and will let me know soon.

 

You need to make yourself a spreadsheet so you don't always have to use the good'ol calculator to do it.

 

I do everything with Excel. So much easier!

 

Hey Shoofin, are you able to negotiate better deals than manufacturer promotions? For example BMW is offering 2011 Z4 sDrive35is for 24 month, 12k miles, residual 81%, .00175 money factor. Are you able to get better terms?

 

I don't always go that crazy with every deal I do. Only certain customers. I do this maybe once a month. Otherwise the other deals are still detailed but not anything close to this. He's a special circumstance..

 

You think you're even going to be able to find a 2011 at this point? And you can't order one anymore either, it would be a 2012. The programs are set by the banks and are non negotiable.

Plus you're way off on your rates. The residual for 24 months is 65% for 12k this month. MF is .00195, unless you're super elite, than I believe it's .00185.

 

I know I probably won't be able to get one. I was just wondering for future reference. I was quoting last month's rate since I couldn't find September's rate yet.

 

in 6 months, i may need to dump my 36 month lease 18 months prematurely. what do you recommend? id be willing to give you business, by the way - if you are located in brooklyn.

 

I live in Brooklyn, work in LI. I might be able to help, let me know when ready. I would essentially have to buy the car out of the lease, which I have no problem doing as long as the numbers make sense.

 

Thats awesome! The thing I really like about leasing is you only pay tax on the portion of the car you depreciate.

Pretty wild that its actually cheaper to pay the overage vs leasing the miles and potentially not use them...

 

Hi Shoofin,
Please check your inbox. Sent you a PM.
Rick

 

Another car I'm working on..

 

Jeebus ... 7-series xDrive LWB is $130k now?

 

damn, can't wait to see pics of that B7...

 

Thats for an Alpina B7. The few that I've worked on both stickered at about 146-147.

 

 

That CL is hot!!!

 

 

Oy vey! That's hot!

 

Hey shoofin so my wife won't let meter the M3 just wondering any deals on the x5 3.5 fully loaded with option of 3rd row seats and M sport package?

 

This reminds me..what ever happened to that "today was a fun day of deliveries" thread?

 

^ It's somewhere around. I haven't had the time to update it. I took pics of as many cars as I remember to take pics of when I deliver, I have them in my phone, if you want me to throw some more on there I'll do it, let me know. Just thought I was people. I mean it took 5 days for someone to notice that I updated this thread with a pic of the end result..

 

Programs arent too bad for the X5. Not really cheap, but not bad. It's better today than 2-3 months ago, that's for sure. Do you have a color preference? I'll look and see if it's out there.

 

288

 

Its probably a long shot, but the owner of a Diner by me recently got a brand new Black CL. Wondering if you are the one who delivered it to him?

Actually it may be his daugters...

 

This.

 

 

https://acurazine.com/forums/ramblings-12/48%F72-9-3-%3D-vote-poll-added-814988/

 

wow!! your job is.....im having a headache!!!!!!!!!!!!!!!!!!!!!!!!! but i give you props for the job you do!!!!!