Is this a good lease deal ('11 535i)?

Hello all. I'm at the end of my '08 535 lease and am looking at getting into a new one--2011 535 w/ Prem 2, M-sport, Convenience, etc. Attached is the quote the dealer worked up for me on Friday. Is this a good deal? Can I do better? I'm trying to keep my payment around $850.

MSRP - $69,425
Selling price - $66,500
Residual - 58% (12K mi/yr.)
Money Factor - 0.00185 (loyalty rate)
Due at delivery - $6,160
Payment - $871

(By the way, in TX you pay 6.25% sales tax on a lease at the full price of the car. However, since I'm turning in my '08, the tax is reduced by $33K*6.25%.)

If not a good deal, what are the points I can try to negotiate?

Thanks,

Jason

The money factor is .00175 right now.

I'm doing ED on a $64,600 MSRP and will be around $780-$790/month with tax, no $$ down.

Originally Posted by FastMarkA

The money factor is .00175 right now.

I'm doing ED on a $64,600 MSRP and will be around $780-$790/month with tax, no $$ down.

That sounds like a really good deal, Mark. I'm guessing you got quite a bit off MSRP and the ED discount. I'm hearing the money factor can be as low as .00145, and anything above that is dealer mark-up. Is the MF really negotiable? I was under the impression the MF was dictated by BMWFS. ??

There's a sticky in this forum with current lease rates. It's very helpful.

I paid $500 over ED invoice.

Much to many dealerships' amazements, it's quite easy to calculate a lease if you know what the factors are. :-)

The sticky in the forum indicates a .00175 MF base rate for a 2011 535i. Can I expect to do better than that?

Originally Posted by jhill

The sticky in the forum indicates a .00175 MF base rate for a 2011 535i. Can I expect to do better than that?

yes, there is a loyalty rate reducer of 0.00030, you can get 0.00145

They're giving you the full MF markup (.0004, less loyalty reduction) and the full Acq. fee markup ($200). Unfortunately, that's very typical here in Dallas. I'd try to negotiate both down to base level.

What do you think your trade is really worth? Seems coincidental that they're giving you the exact payoff as trade credit and no more. You might work that angle as well.

If it weren't for the sales tax complications we have here in TX, I'd suggest checking with one of the board sponsors - there seem to be much better deals in other parts of the country.

Well, Classic BMW is not budging on the .00185 MF (they tell me it's non-negotiable, dealership policy) and won't go lower than $67,775 on a MSRP of $70,925. To add insult to injury, they're telling me I'm "upside down" on my '08 535 lease though I'm only at 36k miles (45k mile lease) and the car is perfect. They quoted
me a trade-in of $26k (payoff w/ BMWFS is $36k, dealer offered to sell to me at $33k). Being negative on the car means I won't get the sales tax credit I was originally told I would get. This is not looking good. I'm at CarMax now getting an appraisal to use as leverage.

Sounds like typical dealer posturing. Ask them about sales tax credits on a lease. If you end up paying full sales tax, might as well shop outside DFW.

Sent from my DROIDX using Bimmer App

Do not keep yacking with the dealer. Say "I am insulted that you are abusing me- a good repeat customer- with the MF and acquisition. I thought loyalty meant something, which I guess is just a silly idea with Classic"

Then negotiate elsewhere, let them stew.

Once you get a good deal elsewhere, give them one last shot to match/beat.

And WHY are you putting $5k down? Just throwing that money away.

Making 10 basis points on the MF - who cares... The F&I department is entitled to make a bit of money. I would push for a 725 acq fee though.

They gave you a 3 grand discount; that's huge.

You can further lower the MF with MSD (multiple security deposit). Unlike a down payment, you get the MSD's back at the end of the lease.

You can lower the MF by .00007 for each MSD up to a maximum of 7 MSD so you can lower your MF by .00049.

Doc fee at $155 seems really high and marked up. I pay $45 at my dealer but California may be different? I've seen as low as $29. I do believe that is a dealer charged margin, not a state fee.

Yup, the $925 acquisition fee is definitely marked up. You can press for $725 which is what BMWUSA.com shows for lease deals. Look at the fine print in the lease ad.

Originally Posted by ard

Once you get a good deal elsewhere, give them one last shot to match/beat.

Nah, just call them to inform them they have lost your business. Then make sure you find a way to take one of those BMW surveys and give them low scores. That's a dagger to the heart of the dealer.

Maybe I'm spoiled with my dealer, and there is certainly more compeition in the NY/NJ/CT area, but I would never consider buying from a dealer like this. My lease was up, I walked into my dealer (Greenwich BMW), sat down with Bob Kaufman, and the deal was done in 10 minutes. The only point we even negotiated on was the selling price. He knows that I know what he knows about MF, acquisition fee, invoice pricing, etc. That makes for a smooth, friendly transaction with no hidden fees or markups.

Even if you have to drive a few hours, it would be worth it. When I shopped for my car 3 years ago I had dealers 300 miles away willing to absorb the cost of shipping the car.

Originally Posted by Ty Vil

Making 10 basis points on the MF - who cares... The F&I department is entitled to make a bit of money. I would push for a 725 acq fee though.

They gave you a 3 grand discount; that's huge.

Sorry I have to disagree with you here. Maybe I'm spoiled with Greenwich BMW. I don't see why anyone should have to accept markups on the MF or acquisition fee. These tactics are best reserved for the uneducated consumer who looks only at the lease payment and doesn't realize the dealer is making a hidden profit. Same goes for negotiating down from the MSRP. Smart consumers negotiate up from the invoice.

Originally Posted by ard

And WHY are you putting $5k down? Just throwing that money away.

How? He'll effectively earn about 6% after tax - that's $300/year in interest savings on the lease. He should put down more money if he can. (the "totaled car" scenario isn't near enough to offset this benefit)

Originally Posted by Ty Vil

Making 10 basis points on the MF - who cares... The F&I department is entitled to make a bit of money. I would push for a 725 acq fee though.

They're making the full 40 basis points - he is getting a 30 BP loyalty credit.

Originally Posted by ahimanic

You can further lower the MF with MSD (multiple security deposit). Unlike a down payment, you get the MSD's back at the end of the lease.

You can lower the MF by .00007 for each MSD up to a maximum of 7 MSD so you can lower your MF by .00049.
.

Originally Posted by TXPearl

How? He'll effectively earn about 6% after tax - that's $300/year in interest savings on the lease. He should put down more money if he can. (the "totaled car" scenario isn't near enough to offset this benefit)

Really? So at the end of the lease he gets the $5k back?

Thanks to some of your recommendations, I ended up striking a deal with the dealership in Temple, TX. Owner's Choice ended up making the most sense for me (being in TX, sales tax issues, etc.) and had the lower payment once the loyalty discount was applied. I got a good amount off MSRP, exactly the car I want (will be ordered), with a down and monthy pmt. that works for me. Thanks all for your input and feedback!

Jason

Originally Posted by ard

Really? So at the end of the lease he gets the $5k back?

No, but the lease payments would be lower by $5,000 plus the interest savings.

Originally Posted by jhill

Thanks to some of your recommendations, I ended up striking a deal with the dealership in Temple, TX. Owner's Choice ended up making the most sense for me (being in TX, sales tax issues, etc.) and had the lower payment once the loyalty discount was applied. I got a good amount off MSRP, exactly the car I want (will be ordered), with a down and monthy pmt. that works for me. Thanks all for your input and feedback!

Jason

Good deal. Owner's Choice is a great program, but the dealers seem to discourage it - no acquisition fee to mark up. Plus you have more flexibility at the end of the deal.

Originally Posted by jhill

Thanks to some of your recommendations, I ended up striking a deal with the dealership in Temple, TX. Owner's Choice ended up making the most sense for me (being in TX, sales tax issues, etc.) and had the lower payment once the loyalty discount was applied. I got a good amount off MSRP, exactly the car I want (will be ordered), with a down and monthy pmt. that works for me. Thanks all for your input and feedback!

Jason

Great job. Classic is bad about non-negotiating. Autobahn would have been another source to look at but sounds like you got your deal. I, too, had issues with Classic and their charges, but eventually stuck with them by doing Owner's Choice as well. It does save the acquisition fee and works in your favor from a tax standpoint should you keep the car past the 36 mos.

Congrats!