Newb Lease Question - Good Deal? - Bimmerfest - BMW Forums



Go Back   Bimmerfest - BMW Forums > BMW Buyers Guide - Dealers, resources, pricing, tips and trick > Ask-A-BMW-Dealer

Ask-A-BMW-Dealer
Talk to our team of BMW Client Advisors from supporting BMW dealerships. Get all of your BMW pricing, ordering, buying, financing, and leasing questions answered here!

Reply
 
Thread Tools Display Modes
  #1  
Old 01-24-2012, 02:41 PM
NIGHTVIZ NIGHTVIZ is offline
Registered User
Location: SoCal
 
Join Date: Jan 2012
Posts: 5
Mein Auto: M3
Newb Lease Question - Good Deal?

Hello everyone, I apologize if the question is a bit redundant by now but I was currently offered this deal and just curious how much better I could do?


2012 SDrive28i
MSRP: $54,175
$3800 due at signing
$565 a month including tax
3yrs/10,000 miles a year

The dealer is pretty much matching BMWs national ad of $519/month (before taxes) on an SDrive28i based on MSRP of $52,845, which is about ~2% off MSRP.

I noticed from reading some of the sticky above that negotiating from $1k over invoice is ideal but is that pretty much the norm? Invoice on the vehicle is $49,890 AND $1K over invoice is ~6% discount. Should I be aiming for that number or at least close to it?


This is also the first time I am leasing so any opinions/suggestion is appreciated. Thanks!
Reply With Quote
Sponsored Links
Advertisement
 
  #2  
Old 01-24-2012, 03:24 PM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 983
Mein Auto: 16' F10 | 535i xDrive
We'll you could start by not putting any money down.

I recommend you educate yourself about leases. What is the residual? What is the money factor?

There is a lot of information here, read it and then do your own calculation


Sent from my SGH-I997 using Bimmer
Reply With Quote
  #3  
Old 01-24-2012, 03:36 PM
NIGHTVIZ NIGHTVIZ is offline
Registered User
Location: SoCal
 
Join Date: Jan 2012
Posts: 5
Mein Auto: M3
Based on this rates link (http://www.ridewithg.com/index.php/2...-january-2012/) it looks like the MF is 0.00195 and residual is 68% for 3yr/10kmiles. I'll double check with the dealer to be 100% sure on the numbers.

Thanks for the tip on no money down, though, I'll keep that in mind. Along with the MF and residual numbers I've given, would that monthly look more fair w/o money down or is it still possible to get it lower?


I've been reading some of the stickies above and the information is just a bit overwhelming. I'm sure it's easy to understand but just too much to digest in one sitting I guess.
Reply With Quote
Sponsored Links
Advertisement
 
  #4  
Old 01-25-2012, 06:01 PM
NIGHTVIZ NIGHTVIZ is offline
Registered User
Location: SoCal
 
Join Date: Jan 2012
Posts: 5
Mein Auto: M3
Can anyone tell me if this is a better deal or at least decent one?

MSRP: $56,345
3yrs/10kmiles
Residual 68%
MF .00195
Down payment + Drive off= ~$3800
Monthly: $560 including tax

Any good?
Reply With Quote
  #5  
Old 01-25-2012, 06:40 PM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 983
Mein Auto: 16' F10 | 535i xDrive
I guess it looks ok but you really need to do the calculation yourself.

again, you are better off not putting any money down. If the goal is to lower the payment then you should look at MSDs and lower the mf.

A rough calc in my head says:
56k msrp
52k sale price
0 down
38k residual

That would give you
388 +
175.5

For a payment of 563/no.

Now, I just estimated 52k as invoice. it may be higher or lower but not by much. I did not include profit to the dealer. I also did not include any other cost such as lease fee, doc fee, registration, etc.
Also you need to account for taxes.

in your deal you are putting down 3800 but I don't know where it's going. Some may be profit for the dealer, some may be paying for drive off costs.

There are plenty of lease calculators in this forum. Run your own scenario.


Sent from my SGH-I997 using Bimmer
Reply With Quote
  #6  
Old 01-25-2012, 06:59 PM
NIGHTVIZ NIGHTVIZ is offline
Registered User
Location: SoCal
 
Join Date: Jan 2012
Posts: 5
Mein Auto: M3
That is actually my own calculations (used this calculator: http://www.leaseguide.com/calc.htm) and arrived at practically the same price as yours but with the down payment.
Invoice is ~$52k and with the advice from stickies above, the deal is with $1k dealer mark-up so $53k.
Down payment is $2500 with $1200 drive off = $3700.

Also, I read from one of the sticky that MF isn't negotiable?
Without changing the MF and residuals and with $1k mark-up from invoice, that seems to be the best price I can w/o increasing the down payment.
I'll look more into MSD, thanks for that advice. Any other advice that might help?
Reply With Quote
  #7  
Old 01-26-2012, 01:14 PM
bzcat bzcat is offline
Officially Welcomed to the 'Fest
Location: Los Angeles
 
Join Date: Sep 2009
Posts: 321
Mein Auto: 2013 Q5 3.0T / 2016 M3
To calculate lease payment requires these parts:

MSRP (simple, it's on the window sticker)
Selling price
Money factor
Residual
Fees
Taxes/license/DMV

Selling price is what you have failed to negotiate. You don't know what the dealer is using to calculate your lease payment so that's why you are coming up with the same monthly payment with $2500 down as ZoomVT did with no money down.

MF is negotiable but there is a floor. Dealer cannot use rates below what BMWFS is using but they are free to charge a markup. Without getting the MF in writing, you don't know what rate the dealer is using.

Residual is not negotiable as long as you are using BMWFS. But get it in writing anyway.

Fees are also negotiable. There is standard amount for acquisition fee that BMWFS charges depending on your area but the dealer can charge a markup. There is also document fee, which is totally negotiable (BMW doesn't require it) - but be reasonable... don't expect someone to do paperwork for free - something like $50 should be plenty.

Tax/license/DMV fees are not negotiable but you need to make sure the dealer apply the correct rate for your geographic area. For example, let say you live in Orange County and the dealer is in LA County. Orange County has lower sales tax rate than LA County - You have to get it in writing which rate they are using (generally, they should be using the rate of your city/county).

Last edited by bzcat; 01-26-2012 at 01:18 PM.
Reply With Quote
  #8  
Old 01-26-2012, 01:28 PM
NIGHTVIZ NIGHTVIZ is offline
Registered User
Location: SoCal
 
Join Date: Jan 2012
Posts: 5
Mein Auto: M3
We actually agreed on the selling price/cap cost already, $1k over invoice ($52900). I tried but this seems to be the lowest they can go.
MF is 0.00195
Residual 68%
Drive off actually went up after the lease acquisition fee (including a $2500 down, 1st month, dmv fees and doc), now ~$4500.
Monthly is $555 tax included.

If I go with the MSD route, monthly should be around $505 tax included.

Is there is still room for negotiations there? I don't think they'll give me the same monthly w/o a down payment as that will bring the cap cost to below invoice. The same if they cover the drive off (title, reg, fees, etc..). Any more recommendations?
Reply With Quote
  #9  
Old 01-26-2012, 02:25 PM
chrischeung chrischeung is offline
Officially Welcomed to the 'Fest
Location: Dallas, TX
 
Join Date: Sep 2002
Posts: 8,146
Mein Auto: 2003 Miata,2017 Volvo S90
Wait until next Monday or Tuesday. It will be the last days of the month.
__________________
2019 M2 Comp (ED)
2003 Miata 5 speed
2017 Volvo S90 T6

3/12 ED 7 - thread ID 610350
1/11 ED 6 - thread ID 5767556&postcount=175
4/10 ED 5 - thread ID 453501
5/08 ED 4 - thread ID 290679
3/07 ED 3 - thread ID 201013
3/06 ED 2 - thread ID 136454
Reply With Quote
  #10  
Old 01-30-2012, 06:57 AM
bagwell56 bagwell56 is offline
Registered User
Location: nj
 
Join Date: Jan 2012
Posts: 26
Mein Auto: 525I
Quote:
Originally Posted by chrischeung View Post
Wait until next Monday or Tuesday. It will be the last days of the month.

see i would love for a dealer to really advise if that is correct. Not an agrument here or to say you are wrong, but there have been many car advocates with yrs in the biz that say the end of the month means nothing and may not always be the best advise. News reporters have done stories on this and have confirmed. the 1st or the 31st it made zero difference more times than any.

so i guess this really depends on the indiv dealership, not simply based on the end of the month profits. If you believe the reports and advice from car experts or you listen to the experts who say this is the best.

Nonsense IMO

I think the best advice would be to try another dealer next monday or tuesday. Its your money and doesnt hurt to wait until you decide when the best time is to buy it.
Reply With Quote
Reply

See More Related BMW Stories


Forum Navigation
Go Back   Bimmerfest - BMW Forums > BMW Buyers Guide - Dealers, resources, pricing, tips and trick > Ask-A-BMW-Dealer
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 10:50 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
© 2001- VerticalScope Inc. All rights reserved.