Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > BMW Model Discussions > 5 Series > F10 / F11 (2011 - Current)

F10 / F11 (2011 - Current)
The new chapter in the highly successful story of the BMW 5 Series Sedan (F10) and wagon (F11)

Reply
 
Thread Tools Display Modes
  #1  
Old 02-18-2013, 05:28 PM
cordoor's Avatar
cordoor cordoor is online now
cor door sedan
Location: Utah
 
Join Date: Jun 2012
Posts: 855
Mein Auto: 2013 550i xDrive
BMW Preferred Lease

I'm finalizing the paperwork with my dealer for my ordered 550 that just arrived.

The finance guy is suggesting I switch from the already-agreed 39 month lease to a BMW preferred lease for 36 months for $2 less per month and it includes wheel and tire insurance. The preferred lease is also with BMW financial.

Sounds like I should take it but I am having him send over the side by side info because something had to be slightly different for the numbers to come out as such.

Anyone have experience with this?
__________________
2013 550i xDrive | Jet Black | Venetian Beige | Dark Red Sycamore | M Sport | Dynamic Handling | Sport Auto Trans
2008 535xi | Jet Black | Cream Beige | Burl Wood | Sport



See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs. - Dave Barry
Reply With Quote
Advertisement
  #2  
Old 02-18-2013, 05:30 PM
Supercomputers Supercomputers is offline
Officially Welcomed to the 'Fest
Location: New York
 
Join Date: Feb 2011
Posts: 136
Mein Auto: 2012 550IX M Sport
Very intrested in your original numbers let us know. Wanted to see what guys are getting on a 550 these days Let us know the details if you dont mind.
Reply With Quote
  #3  
Old 02-18-2013, 06:40 PM
mryakanisachoad's Avatar
mryakanisachoad mryakanisachoad is offline
Officially Welcomed to the 'Fest
Location: brooklyn,ny
 
Join Date: Aug 2008
Posts: 570
Mein Auto: 550xi / 135i / M5
Quote:
Originally Posted by cordoor View Post
I'm finalizing the paperwork with my dealer for my ordered 550 that just arrived.

The finance guy is suggesting I switch from the already-agreed 39 month lease to a BMW preferred lease for 36 months for $2 less per month and it includes wheel and tire insurance. The preferred lease is also with BMW financial.

Sounds like I should take it but I am having him send over the side by side info because something had to be slightly different for the numbers to come out as such.

Anyone have experience with this?
Isn't BMW offering an extra $1500 this month?
Reply With Quote
  #4  
Old 02-18-2013, 06:43 PM
AggieKnight's Avatar
AggieKnight AggieKnight is offline
Can has cheezburger
Location: Atlanta, GA
 
Join Date: Dec 2008
Posts: 1,570
Mein Auto: 550 M-Sport
Quote:
Originally Posted by cordoor View Post
Anyone have experience with this?
I smell a rat. I would ask him to provide you the numbers to back up the differentiation.

It is a strong possibility that I'm just not up to speed on all the financing options, but "BMW Preferred Lease" is a new term to me. And google. In fact, this post is the 7th response to a google search.

Is it possible that he is mixing terms with BMW Select financing?
__________________
WARNING: Author not responsible for the readers failure to recognize sarcasm.
Yield, I can has picture?

Last edited by AggieKnight; 02-18-2013 at 06:45 PM.
Reply With Quote
  #5  
Old 02-19-2013, 09:23 AM
cordoor's Avatar
cordoor cordoor is online now
cor door sedan
Location: Utah
 
Join Date: Jun 2012
Posts: 855
Mein Auto: 2013 550i xDrive
I got the complete proposed lease docs from the dealer. The sales associate asked me not to disclose the money factor and residual he gave me when we made the original deal, so I won't disclose those here. But the changes are essentially these.

1. Increased the residual by 8%
2. Increased the money factor by 0.00061
3. Decreased the incentives/rebates by $500
4. Increased the agreed-upon price of the vehicle by $441

The original deal was for $400 over invoice (before applying incentives and rebates) and with a dealer fee of $399.

So basically, the finance guy moved a bunch of levers and ended up with a 36 month lease (instead of a 39 month lease) at $2 less per month payment.

I haven't decided on what to do yet. I'm asking him why he had to move so many levers.

-Corey
__________________
2013 550i xDrive | Jet Black | Venetian Beige | Dark Red Sycamore | M Sport | Dynamic Handling | Sport Auto Trans
2008 535xi | Jet Black | Cream Beige | Burl Wood | Sport



See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs. - Dave Barry
Reply With Quote
  #6  
Old 02-19-2013, 10:17 AM
Crmgr Crmgr is offline
Officially Welcomed to the 'Fest
Location: Brunswick Hills Ohio
 
Join Date: Aug 2008
Posts: 474
Mein Auto: 2008 535XI
I can't find anything on the BMW site about a Preferred Lease program. That is not one of the plans under the financing tab. If it's not a straight lease it is probably a purchase/lease hybrid program. Usually those programs get you into an attractive program, but instead of walking away at lease end, you could have to pay an additional amount if the value of residual is lower than the actually value of the car. Could be why the dealer is bumping up the redidual by 8%. Likewise, if the actual value is higher than the residual (unlikely), you keep the difference.

I would ask the dealer if you can walk away at lease end if the actual value of the car is less than the residual. If the answer is something like the above, either go with a conventional lease or traditional financing.
Reply With Quote
  #7  
Old 02-19-2013, 10:53 AM
cordoor's Avatar
cordoor cordoor is online now
cor door sedan
Location: Utah
 
Join Date: Jun 2012
Posts: 855
Mein Auto: 2013 550i xDrive
Quote:
Originally Posted by Crmgr View Post
I can't find anything on the BMW site about a Preferred Lease program. That is not one of the plans under the financing tab. If it's not a straight lease it is probably a purchase/lease hybrid program. Usually those programs get you into an attractive program, but instead of walking away at lease end, you could have to pay an additional amount if the value of residual is lower than the actually value of the car. Could be why the dealer is bumping up the redidual by 8%. Likewise, if the actual value is higher than the residual (unlikely), you keep the difference.

I would ask the dealer if you can walk away at lease end if the actual value of the car is less than the residual. If the answer is something like the above, either go with a conventional lease or traditional financing.
I don't know if it is officially called "BMW Preferred Lease."

What I do know is that the only differences between the contracts are those I listed. Both are straightforward BMW Financial leases with no "funny stuff" going on. I have scans of both contracts in hand to look at. They are standard stuff.

I actually had him make a few minor adjustments for things he got wrong, such as my local sales tax rate. Let me give you my absolute bottom line as it stands right now:

The vehicle is a 550i xDrive with MSRP of $85,450.

The first lease offer was locked in with BMW Financial when I ordered the vehicle. The new lease offer is also through BMW Financial. Both lease offers are $0 (well, technically, you pay your first lease payment when you sign the docs). Both are a 10K/year miles lease.

The original lease was a 39 month lease for $926.27/month.

The new proposed lease is a 36 month lease for $925.32/month that includes wheel and tire insurance.

These values do *not* include local sales tax, which for me is 6.75%.

That is the bottom line. I am going to email him after lunch which of the two leases I will go with.

Please provide me with whatever feedback you can before then.
__________________
2013 550i xDrive | Jet Black | Venetian Beige | Dark Red Sycamore | M Sport | Dynamic Handling | Sport Auto Trans
2008 535xi | Jet Black | Cream Beige | Burl Wood | Sport



See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs. - Dave Barry
Reply With Quote
  #8  
Old 02-19-2013, 11:42 AM
numbersguy numbersguy is offline
Officially Welcomed to the 'Fest
Location: El Cajon, CA
 
Join Date: May 2003
Posts: 468
Mein Auto: 2013 535i
I don't know how much it costs to register a vehicle in Utah but here in Cal it is a lot. On a 39 month lease you will have to pay for registration renewal just three months before the lease is up.
Reply With Quote
  #9  
Old 02-19-2013, 12:39 PM
cordoor's Avatar
cordoor cordoor is online now
cor door sedan
Location: Utah
 
Join Date: Jun 2012
Posts: 855
Mein Auto: 2013 550i xDrive
You are right, I forgot about the additional registration fee.

I went with the new lease offer. Everything checks out fine.

For those interested (someone asked):

The vehicle is a 550i xDrive with MSRP of $85,450 for $925.32/month (does not include sales tax) on a 36 month lease with 10K miles per year.

If you think this is a good price and are interested in who gave it to me, send me a PM.

-Corey
__________________
2013 550i xDrive | Jet Black | Venetian Beige | Dark Red Sycamore | M Sport | Dynamic Handling | Sport Auto Trans
2008 535xi | Jet Black | Cream Beige | Burl Wood | Sport



See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs. - Dave Barry
Reply With Quote
  #10  
Old 02-19-2013, 10:09 PM
evanswan evanswan is offline
Registered User
Location: Aliso Viejo
 
Join Date: May 2012
Posts: 81
Mein Auto: Mercedes E350 Sport
payment

That's pretty darn good deal.
Reply With Quote
  #11  
Old 02-19-2013, 11:17 PM
mryakanisachoad's Avatar
mryakanisachoad mryakanisachoad is offline
Officially Welcomed to the 'Fest
Location: brooklyn,ny
 
Join Date: Aug 2008
Posts: 570
Mein Auto: 550xi / 135i / M5
My guess is he's calling you "preferred" because you've done business with them in the past. I think you get 750 bucks for being "loyal". These are just silly terms of art for repeat customers.

Personally I try not to get so hung up on "winning" or getting the best deal in the world when i lease because at the end of the day I value my relationship with my dealer more than saving a few bucks over 3 years. Also - I send them a ton of business every year. I get more annoyed that I have to pay my corrupt state and local government an almost 10 percent vig so they can give my hard earn dollars to a bunch of ____ so they can go buy a bunch of ____.

My dealer hooks me up with pretty much whatever I reasonably need or want. I'm not really sure how you monetize being able to show up at the dealer when I feel like it for an oil change and drive around the new M6 demo for the day. And , it's nice to have a new set of floor mats in the trunk of my car when I pick it up. I didn't even think I needed floor mats but they sure look nice :-).

Last edited by mryakanisachoad; 02-19-2013 at 11:20 PM.
Reply With Quote
  #12  
Old 02-20-2013, 09:16 AM
cordoor's Avatar
cordoor cordoor is online now
cor door sedan
Location: Utah
 
Join Date: Jun 2012
Posts: 855
Mein Auto: 2013 550i xDrive
Quote:
Originally Posted by mryakanisachoad View Post
I get more annoyed that I have to pay my corrupt state and local government an almost 10 percent vig so they can give my hard earn dollars to a bunch of ____ so they can go buy a bunch of ____.
We think alike, brother.
__________________
2013 550i xDrive | Jet Black | Venetian Beige | Dark Red Sycamore | M Sport | Dynamic Handling | Sport Auto Trans
2008 535xi | Jet Black | Cream Beige | Burl Wood | Sport



See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs. - Dave Barry
Reply With Quote
  #13  
Old 02-21-2013, 10:53 AM
Ralph1201's Avatar
Ralph1201 Ralph1201 is offline
Officially Welcomed to the 'Fest
Location: Cleveland
 
Join Date: Mar 2012
Posts: 382
Mein Auto: 2013 BMW 528i
@ Cordoor,

Post the pics of your brand new car with that delicious sycamore trim ASAP!
__________________
2013 BMW 528i. My first Car.
Reply With Quote
  #14  
Old 02-21-2013, 10:59 AM
mryakanisachoad's Avatar
mryakanisachoad mryakanisachoad is offline
Officially Welcomed to the 'Fest
Location: brooklyn,ny
 
Join Date: Aug 2008
Posts: 570
Mein Auto: 550xi / 135i / M5
I want to see that sexy sycamore, STAT.


Car pRon
Reply With Quote
  #15  
Old 02-21-2013, 11:06 AM
mryakanisachoad's Avatar
mryakanisachoad mryakanisachoad is offline
Officially Welcomed to the 'Fest
Location: brooklyn,ny
 
Join Date: Aug 2008
Posts: 570
Mein Auto: 550xi / 135i / M5
Dekete!
Reply With Quote
  #16  
Old 02-21-2013, 11:50 AM
cordoor's Avatar
cordoor cordoor is online now
cor door sedan
Location: Utah
 
Join Date: Jun 2012
Posts: 855
Mein Auto: 2013 550i xDrive
Haha. I'm anxious too!

Still waiting for the vehicle to be shipped. It's shivering in Nebraska right now waiting for the big storm to pass.

I'll probably have my hands on it mid next week for some quality pics.
__________________
2013 550i xDrive | Jet Black | Venetian Beige | Dark Red Sycamore | M Sport | Dynamic Handling | Sport Auto Trans
2008 535xi | Jet Black | Cream Beige | Burl Wood | Sport



See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs. - Dave Barry
Reply With Quote
Reply

Bookmarks


Forum Navigation
Go Back   Bimmerfest - BMW Forums > BMW Model Discussions > 5 Series > F10 / F11 (2011 - Current)
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump


All times are GMT -7. The time now is 03:16 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms