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Discussion Starter · #1 ·
Dear All,

I wanted to run a scenario by you BMW experts before I do something stupid. So I am coming off a lease of a 328i. I am thinking about entering into a new lease but the damages are killing me and I thought the dealer is more flexible when you get another car. I will admit I have a good amount of damages to it. I live in the city so I constantly get bumped etc. But they aren't giving me much of a break at all.

I went there today, and they looked at the car and said I was looking at around $3k damages. They said this was a rough estimate and it could be more/less (probably more) if BMW financial gets a hold of it.

They have found another car I could lease. Details are below. In the end, they say I get about a 50% tax break (around $1,500) and that they will save me about $1,000 on the damages by knocking it off the purchase price.

These are the details of the new car. It is a 335i that I would lease for 3 years at either 10k or 12k miles. The price would be $48,000, the MF would be 0.00210, and the residual would be 64%. They said the MSRP of the car is $51,850 and it has the following:

Deep Blue
All packages (sports, premium, CW)
Navi
Satellite radio
Premium Sound
ipod
smartphone

If I put $6,000, they say my payment for 10k miles would be $604.39. The damages are killing me, without them I would pay $550 for the same car. Is this a good deal? Am I asking too much? Let me know if you need additional information. I know this is a lot, thanks for your time and wisdom.

JL
 

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It's best to negotiate the 2 separately (sale price of the vehicle and repairs to the vehicle). When you have the two mixed together it's difficult to tell what you are really buying the car at and what you are paying for the damages. Ask them to itemize the two categories.

You can also consider taking the car to an independent shop to make the repairs. Go get an estimate to see how it compares to the dealer.

In addition, you can also try another BMW dealer to see what they would charge or waive on the damages. Some are more generous than others.
 

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Porleau
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I went there today, and they looked at the car and said I was looking at around $3k damages.
Wow, what happened to the thing? When I had my car inspected by a dealer prior to turn in, they noticed scratches under the front bumper. Said it was the first place they look and just about every 3 series has scratches. He showed me the fee schedule and, indeed, it was a $600 charge. Luckily, I had such low mileage that BMW picked up the first $500. They would have waived the other $100 if I leased or purchased a new car, but declined (going w/o a car for the time being). Once the inspector knew the mileage, he pretty much ended the inspection right then and said the car was fine other than the bumper scratch - Oh, I did have a couple windshield chips fixed as per his instructions.
 

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You damaged a leased car - you're contractually responsible for that.

I don't see why there's a question here...
 

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Discussion Starter · #6 ·
There is a question because I am considering entering into a new lease because of representations by the dealer that they will be more forgiving on the damages. I told them up front that if there was no advantage in that respect, I would likely let the lease end and just pay the damages.

This question arises directly from the dealer's own suggestion to try to get another car leased. Hope that answers your question.
 

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Discussion Starter · #7 ·
Wow, what happened to the thing? When I had my car inspected by a dealer prior to turn in, they noticed scratches under the front bumper. Said it was the first place they look and just about every 3 series has scratches. He showed me the fee schedule and, indeed, it was a $600 charge. Luckily, I had such low mileage that BMW picked up the first $500. They would have waived the other $100 if I leased or purchased a new car, but declined (going w/o a car for the time being). Once the inspector knew the mileage, he pretty much ended the inspection right then and said the car was fine other than the bumper scratch - Oh, I did have a couple windshield chips fixed as per his instructions.
It is a city car. I parallel park everyday. People bump into other cars all the time. Frustrating but I knew what I was signing up for.
 

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You damaged a leased car - you're contractually responsible for that.

I don't see why there's a question here...
What he/she is contractually responsible for and what the dealer is willing to eat/forgive as an incentive for him/her to enter into a new contract are 2 different things. i agree with ahimania, try and negotiate the new vehicle separately or try another dealer and see what they can do for you.
 

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Need more information. But based on your limited description--

$3k in damages should amount to about $83.33/mo ($3k / 36), before any interest component.

You say your payment went from $550 to $604, so on the face of it the dealership ate the rest of it, about $1k.

That said, there are a lot of moving parts to this. One easy way to see where it's going is to pull the lease end charges out of the deal entirely. Just ask to see what the numbers would look if you shouldered the lease end charges yourself.
 

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Discussion Starter · #10 ·
Need more information. But based on your limited description--

$3k in damages should amount to about $83.33/mo ($3k / 36), before any interest component.

You say your payment went from $550 to $604, so on the face of it the dealership ate the rest of it, about $1k.

That said, there are a lot of moving parts to this. One easy way to see where it's going is to pull the lease end charges out of the deal entirely. Just ask to see what the numbers would look if you shouldered the lease end charges yourself.
Thank you for your response. I am trying to determine how they are structuring this deal. When I spoke to him before they saw the car, he told me a lease would run roughly $550 a month with $3,000 down and $3,000 MSD. He lead me to believe that they would give me a significant break on the damages if I did the lease.

When I went in today, he looked at the car, said I had around $3,000 of damage, and presented me with a new lease calculation where the payment went up to $650. When I asked, he said this was with no break for the damages. I told him that I was only considering another lease if they would give me that incentive. I asked him to see if his GM would do anything further and he came back by saying they would reduce the damages by reducing the cost of the car from $48,900 to 48,000. This would reduce my payment to $618.

Why is he structuring it this way, i.e., why is he reducing the purchase price to account for discounts in damages. Is there something I should be on the look out for?

How would you all suggest handling this sort of transaction? Figure out the lease first without regard to damages? Then pay damages out of pocket with an incentive reduction? Is there another way?

Also, does anyone know if the Loyal Customer MF Reduction is still available?

Thanks again everyone, apologies for the long messages
 

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Get a loan and drive it into the ground? Especially since you would be getting a similar car again.
 

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Yes, you are returning lease customer so loyal customer discount applies.

Why is he structuring the deal that way? Simple. The less clarity you have and the less you understand, bigger is his upperhand. It's hard to argue with what you don't understand.
 

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Discussion Starter · #14 ·
I got him to send me a breakdown putting aside the damage and I must say I am more confused than before. The purchase price is higher yet the payment is lower. The purchase price would be $49450 and the payment would be $554.50.

What gives? Anyone have any idea how they are structuring this?
 

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Go to a local dent and scratch shop and see if they can make it look new without actual bodywork. Then take the repaired car to a different dealer and turn it in.
 

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Freedom isn't free!!
2018 Glacier Silver 340i M Sport
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Why don't you post some pics of your car? Have you checked into paintless dent removal? I imagine though it is your bumpers that have the most damage.
 

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I got him to send me a breakdown putting aside the damage and I must say I am more confused than before. The purchase price is higher yet the payment is lower. The purchase price would be $49450 and the payment would be $554.50.

What gives? Anyone have any idea how they are structuring this?
I'm guessing that in the previous calculation the dealer included the damage repair into the lease payment whereas the revised lease payment does not include the damages because you asked him to separate them. He may be now setting up the damages as a separate cash payment. (net decrease from damages > net increase in purchase price)
 

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Discussion Starter · #19 ·
I compared the two and I see what is going on. For the one with the lowest payment and the highest purchase price, he entered an equal value for the trade and payoff.

For the other one (higher payment/lower purchase price, he entered the trade as $3,398.58 lower than the payoff (trade = $24,000 and payoff = $27,398.58).

So in the end, he wasn't even charging me $3,000 for the damage, he was trying to charge me $3,398.58.

Not sure I want to make a deal with these guys anymore...
 

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Why not go to another dealer (or do it online). Negotiate a fair price for the car off the invoice. Demand full disclosure of all the leasing terms. Ensure dealer is giving you best possible money factor and not marking up the acquisition fee or adding other hidden charges. Pay 7 security deposits to get the best possible rate. Then once you have the lease payment, go back to your dealer and negotiate. If they want your business they will absorb some of the cost for the damages.

I don't know the extent of your damages, but my preliminary inspection was very positive. I had quite a few scratches and even a cracked mirror, but they assessed only $200 in damages. Maybe this will change when I finally turn the car in, or maybe my dealer is just being honest and ethical...
 
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