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  #1  
Old 12-10-2015, 11:29 PM
Bama-Bimmer Bama-Bimmer is offline
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Advice on 2016 550i Purchase

Considering purchase of 2016 550i:
Mediterranean Blue Metallic exterior and Black Leather interior! Options include a Executive Package, Speed Limit Info Display, M Sport Package that includes an M Steering Wheel, M Sport Seats, M Aero Package, M Wheels & M Badging, Driver Assistance Plus Package, Luxury Seating Package w/ Heated & Cooled Front Seats, Driver's Active Seat, Head-Up Display, Heated Front Seats, Front Ventilated Seats, Parking Assistant, Active Blind Spot Detection, Side and Top View Cameras, Soft Close Automatic Doors, Ceramic Controls, 19" Wheels, and a Moonroof

MSRP $83,585 and listed online $74,745. No where does it say this price includes December incentives. How do I approach this?

Quoted 2 lease/purchase options:
Select: $1,036.20/mo with nothing down. 60 month term at 2.9% with $24,239.65 residual

Lease (36 months/15K miles per year): $1,015.90/mo with $1,717.90 due at signing. Money factor of .00171 and 57% residual.

Can likely get at least 1.9% financing from credit union and I've already asked for money factor to be .00131. Have read about 7 MSD approach too but not sure about using it since I will likely have to use my cash to pay off my current car or I will end up being upside down.

Should I assume that the total of $2K for incentives from BMW are already included in price? Should I insist that they be included since there is no concrete indication that the sales price listed on the website includes them?

Haven't dealt with BMW before (United BMW of Roswell). Considering lease since I have a recent history of car-hopping quite a lot.

Thanks for the advice.

Last edited by Bama-Bimmer; 12-10-2015 at 11:30 PM.
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  #2  
Old 12-11-2015, 04:31 AM
cnair cnair is offline
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I did ED on my 2016 550i xdrive, not as loaded as this one though. Not sure about incentives but the lease MF seems marked up and residual seems too low?
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  #3  
Old 12-11-2015, 04:41 AM
Milo911MD Milo911MD is offline
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1) you should assume that the total of $2K for incentives from BMW are already included in price
2) 60 month term at 2.9% with $24,239.65 residual. ??? Purchase does not have a residual, only lease.
3) AT 0.00171, they are charging you max markup on the MF. You should insist at the buy rate 0.00131 ( or something better). USe 7 MSD to bring the MF to 0.00082 .
4) For BMWs ( not including 7 series) if the MSRP is greater than 72K, never choose 15kmi/y option. It will be cheaper over all to choose the 12k/year option and before your lease end pay @ 16cents a mile + tax. ( if your car MSRP is over 96K, then do not even choose 15 or 12Kmi/year and go with 10k mi/year for the same reasoning).
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  #4  
Old 12-11-2015, 04:44 AM
cnair cnair is offline
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Agreed...sorry I missed the 15k per year mileage...MF is heavily marked up.
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  #5  
Old 12-11-2015, 04:46 AM
Milo911MD Milo911MD is offline
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57% residual is correct for 15Kmil/y
you get 59% for 12Kmi/year. this is your better choice. It will save you a $ 1671.70 plus tax. any additional miles over 12k prior to lease end you can buy at 16c/miles. ( 9000 mil will cost you $1440 + tax)
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  #6  
Old 12-11-2015, 06:47 AM
Milo911MD Milo911MD is offline
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The MF markup by them (0.0004) is costing you $49 a month for total of $1762 for the 3 year lease
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  #7  
Old 12-11-2015, 06:59 AM
Bama-Bimmer Bama-Bimmer is offline
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So if I understand correctly, request a 36 month/12K mile lease with MF 0.0031 and 59% residual. Use 7 MSDs and calculate the mileage overage near end of lease and pay at 0.16 cents/mile before lease turn in?

The payoff amount was for BMW select at 2.9% for 60 months. I can get 1.5% for 60 months for outright purchase from my credit union.

Thanks and please correct if I'm off base. Never done a lease before.
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  #8  
Old 12-11-2015, 08:06 AM
Milo911MD Milo911MD is offline
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Quote:
Originally Posted by Bama-Bimmer View Post
So if I understand correctly, request a 36 month/12K mile lease with MF 0.0031 and 59% residual. Use 7 MSDs and calculate the mileage overage near end of lease and pay at 0..
the MF is not 0.0031, it is 0.00131. with 7 MSD it should drop to 0.00082
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  #9  
Old 12-11-2015, 08:09 AM
Milo911MD Milo911MD is offline
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The discount by doing 7 MSD is $61/m or $2188 for the lease
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  #10  
Old 12-11-2015, 08:12 AM
Milo911MD Milo911MD is offline
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Quote:
Originally Posted by Bama-Bimmer View Post
calculate the mileage overage near end of lease and pay at 0.16 cents/mile before lease turn in?

Thanks and please correct if I'm off base. Never done a lease before.
Yes, if you don't pay the overage and turn the car with extra mile, BMW will charge you 20c/ mile. However you can call BMW FS before maturation of the lease, (even 1 day before) and pay at a rate of 16c/mile+ tax
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  #11  
Old 12-11-2015, 09:06 AM
Bama-Bimmer Bama-Bimmer is offline
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Thanks for all of the advice. Just got an email from the CA asking why I'd want to tie up my money with BMWFS. I shared with him what I've learned here. I have a bonus coming that I can use to pay. Using the numbers you all have given me, even if I think I'm going to go over on miles (put 20K on my car last year but typically more like 15K/yr historically), doing 7 x MSD with 36 months/12K miles per year will be a better "return on investment" so to speak. I know that every situation is personalized but I should expect MF of 0.00082. List price is 83,585 and sales price would be $74,745 (don't expect them to lower it). Residual is 59% meaning $49315.15.

Check my numbers for payment:
With 7 MSD: (Cap cost - Residual) / 36 = $706.38 + (MF * (MSRP + Residual)) = $111.64 == $818.01/month + sales tax (Alabama is 2%)

Without 7 MSD: $708.36 + $174.10 == $882.46/month + sales tax

Cap cost doesn't include fees. To calculate MSD, which numbers do I use?

Thanks.
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  #12  
Old 12-11-2015, 09:49 AM
Milo911MD Milo911MD is offline
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Quote:
Originally Posted by Bama-Bimmer View Post

Check my numbers for payment:
With 7 MSD: (Cap cost - Residual) / 36 = $706.38 + (MF * (MSRP + Residual)) = $111.64 == $818.01/month + sales tax (Alabama is 2%)


Thanks.
Wrong
The rent is
MF X (Cap cost + residual)

Not
MF X (MSRP+ Residual)

Your Number should be as follows:
MSRP $83,585 . Cap Cost $74,745, Residual $49,315.15
Depreciation (74745-49315.15)/36=706.38
Rent: (74745+49315.15)x 0.00082=101.73
Base payment:706.38+101.73= 808.11
Tax 808.11x2%= 16.16
Total monthly payment= 824.27
Each MSD ( total monthly payment rounded off to the next 50)= $850
7 MSD= $ 5950

Your drive off should 1st month payment 824.27+ 5950+ lic/ reg/ fees

Last edited by Milo911MD; 12-11-2015 at 09:54 AM. Reason: mistake
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  #13  
Old 12-11-2015, 09:53 AM
Milo911MD Milo911MD is offline
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I would however put the Acq fee and Doc fee on the Cap cost instead of paying it as part drive off. Because just in case the car is totaled you have only paid a portion of those, rather than the whole thing.
you just need to add the 925 Acq fee + Doc fee to the Cap cost and calculate the whole thing again.
Also be careful with the Doc fee. it is unregulated in some states and dealers charge whatever they want, so don't be taken advantage of. ( in California is only $80 , but here is regulated)
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  #14  
Old 12-11-2015, 10:00 AM
Bama-Bimmer Bama-Bimmer is offline
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Thanks. Local CA showing me all of the numbers and it jibes with what you're telling me. Do you know if Alabama allows MSDs? Thanks! I'm in the showroom here.
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  #15  
Old 12-11-2015, 10:03 AM
Milo911MD Milo911MD is offline
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I think NY is the only state that does not allow MSD.
find out about their doc fees
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  #16  
Old 12-11-2015, 10:05 AM
Bama-Bimmer Bama-Bimmer is offline
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Thanks. The original quote from Roswell GA includes doc fees in the price. Would insist on it here. They're having a hard time finding one available for me. Might have to go to GA to get it.
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  #17  
Old 12-11-2015, 10:09 AM
Bama-Bimmer Bama-Bimmer is offline
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The other thing the CA just said is that I need to be sure that they've not already "punched" the car and activated the warranty. New term to me. Taking to sales manager to see if they have. Feel like I'm live tweeting.
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  #18  
Old 12-11-2015, 10:10 AM
Milo911MD Milo911MD is offline
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that should not happen with a brand new car
only with exec demo or loaners
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  #19  
Old 12-11-2015, 10:16 AM
Ninong Ninong is online now
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Quote:
Originally Posted by Bama-Bimmer View Post
The other thing the CA just said is that I need to be sure that they've not already "punched" the car and activated the warranty. New term to me. Taking to sales manager to see if they have. Feel like I'm live tweeting.
It just means they have placed the car in "demo status" to get certain cash-to-dealer incentives. Usually that is only done on new outgoing models (2015) and not brand new models unless the brand new model is actually being used as a demo.

If the car has been "punched," then you need to know the exact in-service date and the exact current odometer reading. Once you know that, it's up to you to decide if you want it or not. The factory warranty and factory free maintenance coverage started with that in-service date.

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  #20  
Old 12-11-2015, 10:17 AM
Bama-Bimmer Bama-Bimmer is offline
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What is the MSD based on for multiple MSD.
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  #21  
Old 12-11-2015, 10:20 AM
Ninong Ninong is online now
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Quote:
Originally Posted by Bama-Bimmer View Post
What is the MSD based on for multiple MSD.
It is based on what the monthly payment would be with the reduced money factor, rounded up to the nearest $50. If the monthly payment is $719 then each security deposit would be $750.
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  #22  
Old 12-11-2015, 10:23 AM
Milo911MD Milo911MD is offline
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For every MSD you get 0.00007 discount off base MF. for maximum or 7 MSD you get 7X 0.00007= 0.00049 discount of base MF
base MF 0.00131-0.00049=0.00082
Each SD is equal 1 month lease payment including tax rounded off to the closest next 50 ( you need to use the discounted MF to do the calculation for monthly payment.)
MSD total is the number of SD you choose ( max of 7) time the cost each SD

Last edited by Milo911MD; 12-11-2015 at 10:25 AM. Reason: dictation
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  #23  
Old 12-11-2015, 10:36 AM
Bama-Bimmer Bama-Bimmer is offline
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That's what they're quoting me. Unfortunately trade value on my car is less than I'd hoped. Not much market for blue Q7s I guess. Need to decide if it is worth it to go upside down to get out of it.
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  #24  
Old 12-11-2015, 11:10 AM
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Yinzer Yinzer is online now
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Quote:
Originally Posted by Bama-Bimmer View Post
That's what they're quoting me. Unfortunately trade value on my car is less than I'd hoped. Not much market for blue Q7s I guess. Need to decide if it is worth it to go upside down to get out of it.
Try contacting a board sponsor and see what they can do. Last black friday i got 8k with incentives off a 535, so with a 550 you should be able to do better.
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  #25  
Old 12-11-2015, 11:24 AM
Bama-Bimmer Bama-Bimmer is offline
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Thanks. They are already at 10% discount from MSRP. My local dealer will truck in the exact car I want at the sales price.
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