The $4000 is above and beyond any amount that is negotiated off sticker on the '01 models. Cutter Motors recently sold a couple '01 540/6s for around $48.5, which is well below the invoice of about $50k. The dealer will still make money on this, as once you add in the $4k factory incentives, they are really selling it for $52.5k and making a couple grand off it. The incentive is simply a way for BMW to lower the sticker. If that monthly is after all the discounts and yout $7500 down, then I would say it is not a good lease at all. It really should be lower considering, as far as leases are figured, you are putting around $15k down (your $7500 and the reasonable $7500 discount).