Current Lease Special from BMW NA

Have never leased a car and was wondering what you thought of this deal. Totally in the dark as to what a good deal should be. I test drove this 2013 yesterday: http://bmwofwatertown.com/newbmwcars...4DE730922.aspx

The dealer said if we bought the car we test drove that he had some 'flexibility'
Here is the deal:
MSRP=53,985
Selling price=52,620
Down Payment=4700
Monthly payment=472 (includes tax, etc)
Residual value=35,090

36 months, not sure about the mileage as we discussed 10k per year but the printout he gave me has 15K miles per year.

You can definitely do better - don't look at the monthly payment alone - you are out $4700 or $130.56/month right from the start.
They are ripping you a new one with that selling price, I am pretty sure you can knock $4700+ off the MSRP on the outgoing model that collects dust on their lot.
Good luck!

I have always heard even when you lease to negotiate the price of the car like you were buying it. and also plan on getting up and walking away during the process, they will Always call you back

hondo

They won't always call you back. Though when I was at one dealer, they said the price can't go down any further. As I was walking the manager said he would reduce the price by 1500. I still left.

Go to bmwconfig.com, build the car to get MSRP and invoice for american and euro deliv
Other things to keep in mind:
Base money factor is .00130 + .00030 (lease). Make sure they are not adding to the base
Bank Fee (non-negotiable) is 725. Make sure they are not adding to that.
Don't put any money down, instead, look at the Monthly Security deposit. It's a deposit that reduces your money factor and can save you good money. I did the calc, and by doing this I would essentially be making about 10% interest on my deposit
After you figure out the numbers, tell them you want $500 over invoice. If they say no, call one of the board sponsors.

I am getting my car from Adrian Avilla at BMW of South Atlanta. Didn't have to argue with him, not even once. He is responsive, and friendly, and is the Mother F'ing pez dispenser of BMWs. If Wal-Mart sold BMWs, he would beat them in price!

BTW, please post your build, and the prices (invoice and MSRP) from bmwconfig.

always factor in the downpayment, thats how they make the monthly look so attractive. without downpayment your monthly is around 600.

BTW, the invoice for that particular car is $50210 - you can have that number in mind when negotiating final selling price.

A few corrections and clarifications-

The money factor for leases is a base of .00130. The .00030 adder is only for European Delivery vehicles.

The MSD program is Multiple Security Deposits. You can go to the ask a dealer section for all the details, but in essence you may add up to seven additional security deposits to your lease. Each of these will remove .00007 from the security deposit for a maximum of .00049. With interest rates as they are, I can be a nice option to get some return on that money.

Do go to the configuratior and determine the invoice price for the car. You should be working from that number as to the selling price of the car, and the current incentives - $1750 on a 3 series, I believe, should come off afterward as a cap cost reduction. As someone mentioned, $500 over invoice would probably be an OK place to shoot for on a car that's nearing the end of its model year; you could probably go lower if you negotiate well.

You should shoot for your drive-away costs to consist of only MSD, and possibly first months payment, though you can probably avoid that if you want.

There is wealth of leasing info in the Ask A Dealer section- I'd suggest becoming very familiar with that before you talk to the dealer again, and do be prepared to walk if they don't play ball.

Good luck!

Originally Posted by furby076

Base money factor is .00130 + .00030 (lease).

say what?
the 0.0003 adder is mandatory for ED. for a US delivery, there is no adder except for dealer profit

If they are not willing to sell at or around invoice, then they are flat out ripping you off.

Take the MSRP and subtract about 7%. That's where you should be. About $50K

I'm from Ct. and have found Watertown to be the least competitive dealer in the state right along side of Ridgefield..If I were you I would give Darien & North Haven a chance they are much higher volume and have always been competitive.There is much more room in your current deal trust me on this,Good luck and shop prices around you will be amazed.

Originally Posted by Orient330iNYC

say what?
the 0.0003 adder is mandatory for ED. for a US delivery, there is no adder except for dealer profit

THe reason for this is because they are paying your 2nd months payment (cause car is on boat). I don't know why they dont just make you pay for the 2nd month...overcomplicates things..then again, it's a BMW, so not surprised

Originally Posted by furby076

THe reason for this is because they are paying your 2nd months payment (cause car is on boat). I don't know why they dont just make you pay for the 2nd month...overcomplicates things..then again, it's a BMW, so not surprised

i know about the reason for the ED adder; the op is asking about a lot car.

your post seemed to indicate the 0.0003 was a lease fee:

Base money factor is .00130 + .00030 (lease). Make sure they are not adding to the base

Great info guys and I am going to take a serious look at all of it. I need to learn some of the terms etc. In case I forgot some details, here is the exact lease I was quoted:

They jacked up Acquisition Fee to the max from $725 (which is a no secret and listed on the BMWNA website).
You should negotiate a better deal and use $2500 rebates as your leverage to remove any up front fees except title and registration.
And the residual % is 0.62 for 15K miles/year lease on 36 month term unless it had changed from January, which I don't believe.
http://www.bimmerfest.com/forums/sho...d.php?t=667853

Originally Posted by Yomama

Have never leased a car and was wondering what you thought of this deal. Totally in the dark as to what a good deal should be. I test drove this 2013 yesterday: http://bmwofwatertown.com/newbmwcars...4DE730922.aspx

The dealer said if we bought the car we test drove that he had some 'flexibility'
Here is the deal:
MSRP=53,985
Selling price=52,620
Down Payment=4700
Monthly payment=472 (includes tax, etc)
Residual value=35,090

36 months, not sure about the mileage as we discussed 10k per year but the printout he gave me has 15K miles per year.

My only comment is that I would never put money down on a lease except for TTL. Make sure the lease term mileage fits with your actual yearly driving mileage as the penalty (per mile) cost can be very high if you go over the mileage.

I ran the car thru the BMWconfig and the invoice price came out to basically what lgaddict mentioned: 50,196. Right now they have the Gross Cap Cost as 52620 (selling price of 51,690+925 acquisition fee.
Is the acquisition fee the same as the bank fee being referred to. they have that as $925 vs 725.

If I am following along correctly my focus should be to get that 52K at minimum to 50K or better. So if I do that, let's say they agree to 50,500 and if the bank fee is the same as acquistion drop $200 from that.

New Selling Price = 50,500
Acquistion/bank Fee=725
Gross Cap Cost= 51,225

That would a $1391 reduction. Based on what the dealer said (every $1000 is roughly $30 per month), would drop the lease to $438.

Maybe do some magic with the MSD and reduce further. A nice drop but nothing dramatic. Am I missing something. What should I realistically expect if this was a good deal?

Originally Posted by Yomama

I ran the car thru the BMWconfig and the invoice price came out to basically what lgaddict mentioned: 50,196. Right now they have the Gross Cap Cost as 52620 (selling price of 51,690+925 acquisition fee.
Is the acquisition fee the same as the bank fee being referred to. they have that as $925 vs 725.

If I am following along correctly my focus should be to get that 52K at minimum to 50K or better. So if I do that, let's say they agree to 50,500 and if the bank fee is the same as acquistion drop $200 from that.

New Selling Price = 50,500
Acquistion/bank Fee=725
Gross Cap Cost= 51,225

That would a $1391 reduction. Based on what the dealer said (every $1000 is roughly $30 per month), would drop the lease to $438.

Maybe do some magic with the MSD and reduce further. A nice drop but nothing dramatic. Am I missing something. What should I realistically expect if this was a good deal?

Sorry, it won't work that way.
Your original quote included $4700 cost reduction (down payment), and basically put you at $600.00/month.
With the latest numbers with $0 down it puts you at $600.00 before the TTL (tax, title and registration).
You need to negotiate it harder, at the same token have the dealer profitable - so your play should be around the current rebates - as I understand it now it's $2500.00. Are you a returning BMWFS customer? BMWCCA member (where it does not give you any advantage during the price negotiation, BMWCCA will issue a $500.00 check if you decide to go with a new 3-series, provided you are a BMWCCA member in good standing for the last 12 month).
Good luck!

EDIT: it's $600.00 for 15K miles/year lease vs $560 for 10K miles/year lease + applicable tax/license/registration

So lgaddict, help me out. Talk to me like a 3rd grader. What would be a good deal? and what specific elements do I go after. I posted the entire lease work sheet in a prior post.

I am not a BMWCCA member but I do own an X3 so they are giving me the $750 loyalty credit,

Originally Posted by lqaddict

Sorry, it won't work that way.
Your original quote included $4700 cost reduction (down payment), and basically put you at $600.00/month.
With the latest numbers with $0 down it puts you at $600.00 before the TTL (tax, title and registration).
You need to negotiate it harder, at the same token have the dealer profitable - so your play should be around the current rebates - as I understand it now it's $2500.00. Are you a returning BMWFS customer? BMWCCA member (where it does not give you any advantage during the price negotiation, BMWCCA will issue a $500.00 check if you decide to go with a new 3-series, provided you are a BMWCCA member in good standing for the last 12 month).
Good luck!

EDIT: it's $600.00 for 15K miles/year lease vs $560 for 10K miles/year lease + applicable tax/license/registration

1. Negotiate harder on the cap cost:

50,196 (invoice) + dealer profit ($500-1000 is fair) - any incentives
So hypothetically if you were eligible for $2500 in incentives you should shoot for a cap cost between $48,200-48,700.

2. Don't put any money down. i.e. no cap cost reduction. pay the acquisition fee up front instead of rolling it into the cap cost. Why pay interest on it if you have it?

3. Don't accept acquisition fee of more than $725 or a MF over the buy rate. I believe they have to tell you what that month's buy rate is.

4. Do the multiple security deposits. It won't reduce your payment as much as an equivalent cap cost reduction but you get that money back at the end of the lease. In return they are effective paying yu interest (in the form of a lower interest rate on the lease).

A down payment is just pre-paying part of the monthly payments. If you total the car in 6 months you won't get any of that money back. with MSDs you will.

Thanks for all the advice. I found a new car discount program at work. Configured the same car and two dealers popped up. One will sell the car for $49,940, the other $50,600. I have asked them to work out some lease numbers off that cap price and the current BMW/NA incentives going on. I'll report back on what they say.

I kind of liked the dealer that is close to me. If the numbers are better from these new dealers, I'll give them a chance to match them.

Originally Posted by Yomama

Thanks for all the advice. I found a new car discount program at work. Configured the same car and two dealers popped up. One will sell the car for $49,940, the other $50,600. I have asked them to work out some lease numbers off that cap price and the current BMW/NA incentives going on. I'll report back on what they say.

I kind of liked the dealer that is close to me. If the numbers are better from these new dealers, I'll give them a chance to match them.

That's the way to go
Is BMW of Bridgeport near you?
I've heard only positive things about the sales force there.

It's not too far, might actually be closer than the two dealers that are part of this program: BMW of North Haven and Wide World BMW in Spring Valley NY

Thanks lgaddict

Originally Posted by lqaddict

That's the way to go
Is BMW of Bridgeport near you?
I've heard only positive things about the sales force there.

In the end, you can also contact the board sponsors instead of going back and forth with some of these other places. You should be looking at:
Invoice + 500-1000 (dealer profit) - Bmw incentives
Money Factor should be at base
Bank Fee should bat at 725
No money down
Get MSDs if you can afford to

I checked the sponsor section, anybody know if any of them are in CT.

So I got a response back from one of the two dealers that have a connection with my work auto buying service. Not encouraging. They started with a selling price of $49,940 but came back with a $1,850 out of pocket and monthly payment of $543. Which works out to basically the same 3 year cost of ~21.5K that I got from my local dealer.

I asked them to provide more details

Any interest in executive car? if so, I would call around for executive 2012's on that. When I got mine I had a couple of cars to pick from... and leases were way less then what you're paying..and no cap cost reduction (but did do multiple security deposits)