Negotiations Begin... Questions for everyone

Ok, well, I headed to the dealer today and spent a couple hours there test driving a 535i (unfortunately without sport or DHP), and a 550i with sport and DHP and beginning negotiations. The salesman I'm working with is just a really cool guy. Laid back, no pressure... thankfully. It didn't seem like a fair comparison, but off the line, that V8 is just fantastic. I keep trying to talk myself into the 535i, but that feel of the 550i was a different level.

So... we built a 550i and 535i with what I want on each (Cold Weather, Convenience, DHP, Sport, Premium 2, Sport Auto transmission w/paddles). I would lease for 3 years with 12k miles/yr. I'd like a Titanium Silver Metallic with Cinnamon Brown Leather right now, but I haven't been able to find a combo like that in person.

Other fees: Doc fee $75.00, Acquisition Fee: $925 (this is high in my opinion). Here's a table, it's easier:

535i 550i
MSRP 65475 71125
Negot. Price 61400 66650
MF 0.0027 0.0027
Residual 60% 56%
Title/Licen./Regis. 843 937

The payment per month if I pay security payment, first payment, and title/registration up front (but no sales tax) is $990.15 for the 535i and $1148.98 for the 550i.

I told him that I noticed that they had added their max of 0.0004 to the MF from BMW. He smiled and said that he could probably give a break there. We didn't get into that any further. Next was my trade in which is a 2006 750Li in good-excellent condtion w/ cold weather, luxury seating, premium sound, sirius, navi, premium wheels and 34500 miles. KBB range $29925 (fair) to $34625 (excellent) on trade in value. They offered $28000. Actually that was my EXACT guess when he left to have used car guy look at it.

So far I'm think I'm doing ok. I'm going to work on the MF. And the trade-in offer is a joke, but I needed to get home so stopped short of working on that for now.

Here are my questions:
1. Can I lump title and registration into the lease? I think I read that you can, but then I'd be paying interest on this amount too over the 3 yrs.

2. I have to pay the security deposit no matter what right? This would be my first buy from a commercial BMW dealership.

3. What have any of you done if you trade in a car but are ordering a new Bimmer. I'd either have to wait and then probably get screwed with the 'ole "Your car is not worth what it was 2 months ago" when my new one gets here if I kept my 7er until the new one comes.

4. Thoughts on negotiating the trade? Obviously, they are low-balling me. I'm relatively confident that I could sell my car outright for $33-34k based off other vehicles for sale in town here. My car is in fantastic condition with low miles for a 2006. Richschneid, if you are reading this, how easy is it to dump a car on your own (I think you've said you've privately sold many of your cars. I've never done it)? The extra $5-6k would be worth it.

5. Are the residual values right above? I found a link the other night with published July 2010 numbers, but I can't find it again.

Ok, I'll stop there. Sorry my table didn't turn out right in the saved post.

Originally Posted by Bunky

2. I have to pay the security deposit no matter what right? This would be my first buy from a commercial BMW dealership.

3. What have any of you done if you trade in a car but are ordering a new Bimmer. I'd either have to wait and then probably get screwed with the 'ole "Your car is not worth what it was 2 months ago" when my new one gets here if I kept my 7er until the new one comes.

I think they waive the security deposit with good enough credit (know for sure this is true if you're a current BMW FS customer) - could be wrong, I know the answer is on here someplace if you search.

For my order, they gave me a guaranteed price offset from KBB excellent trade - whatever it is in 2 months, that's the price. Seems good enough for me (the KBB actually *increased* by $600 for my car last week!?! Never expected that, lol.).

So you were offered KBB excellent prices for your trade in and it will be adjusted to the excellent condition price in two months? Or it was a % of the excellent condition price that will be adjusted?

Originally Posted by Bunky

So you were offered KBB excellent prices for your trade in and it will be adjusted to the excellent condition price in two months? Or it was a % of the excellent condition price that will be adjusted?

It was a set amount under KBB Excellent. Two dealerships were willing to do this (with varying amounts, of course). I'm happy with the arrangement, I was paranoid that they would substantially drop the trade-in price in 2 months when they know I'm anxious to get the car.

What if you buy the car, use your trade to reduce the tax and finance over 4 or 5 years. I think that in the long run you would have the 55-60% equity at 3 years a small 10k or so balance, and be ahead. Purchase interest is so low 2.9% that I am not sure it makes sense to lease. OTOH, you can use your trade to essentially make free payments for the next 3 years, but what do you do then? I can never tell if it makes better sense to lease or purchase over a 3-4 year term.

Although leases and purchases each have distinctive advantages, one advantage of leasing is the ability to return the car at the end of the lease period without incurring additional cost (provided its been appropriately maintained), even if the car has been wrecked and properly repaired. When driving a $70,000 car, loss of value is a potentially huge risk in the event of an accident........................ I realize a high money factor might make the lease decision less advantageous.......