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Discussion Starter #1
Working on a lease deal in Atlanta and have a few questions.

ED MSRP = $100,860

ED Invoice based on the 93% of ED MSRP + $475 + 92%*Options for a 2019 comes out to approx. $93,400.

Dealer is including a .0004 markup that they are allowed which comes to about $2100.

So all in all the dealer stands to profit = $9560
[$100,860 (ED MSRP) - $93,400 (Invoice) + $2100 (From Markup)]

I was under the impression that I was being reasonable advising that I'd be open to paying $3-3.5K over the ED Invoice (not including the lease rebates). So should I be concerned with any dealer(s) claiming that they will not negotiate more than a few "hundred" off the ED MSRP? (Claiming that they would not be getting any profit if they did?)

The forums all say to deal with Adrian Avila in the past, but it looks like he's no longer a CA and is a finance manager now.

Let me know Bimmerfest.
 

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The lease markup isn't profit. BMW charges a higher rate on ED leases.
 

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The lease markup isn't profit. BMW charges a higher rate on ED leases.
I think he is referring to the maximum markup on leases that dealers can do over the base rate, which is .0004 and that is pure dealer profit.

Additionally, there is a .0003 adder on ED leases that is not dealer profit. This is basically to offset the fact that BMWFS makes your second lease payment for you.

In a nutshell, I believe the Dec base Rate is .00182. On an ED, that would go to .00212 as the base rate (with no additional dealer profit). The dealer can then mark that up to .00252, which would be pure profit (the delta between the .00212 and .00252).
 

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Discussion Starter #4
I think he is referring to the maximum markup on leases that dealers can do over the base rate, which is .0004 and that is pure dealer profit.

Additionally, there is a .0003 adder on ED leases that is not dealer profit. This is basically to offset the fact that BMWFS makes your second lease payment for you.

In a nutshell, I believe the Dec base Rate is .00182. On an ED, that would go to .00212 as the base rate (with no additional dealer profit). The dealer can then mark that up to .00252, which would be pure profit (the delta between the .00212 and .00252).

Right. I'm aware of the .0003 and the dealer's ability to add the .0004 making the max factor .00252. I was just surprised that the dealer would not negotiate any off the ED MSRP nor would they add less than the .0004 to the MF.

With the lease rebates not applying to ED as well, it almost makes since to not do ED, get the credit and work out a deal with some reduction on the MSRP.
 

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The OP is trying to lease a new M5 for ED; my experience is that M cars on allocation don't follow conventional wisdom on pricing. It depends on the dealer, their allocations, the market; the past relationship between the dealer, CA and customer, and sometimes the phase of the moon.
 

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The OP is trying to lease a new M5 for ED; my experience is that M cars on allocation don't follow conventional wisdom on pricing. It depends on the dealer, their allocations, the market; the past relationship between the dealer, CA and customer, and sometimes the phase of the moon.
I'm surprised that a dealer would sell a new M5 at MSRP or less.
 

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I'm surprised that a dealer would sell a new M5 at MSRP or less.
After the initial 1st year 'wow factor' and the early adaptors/1st on the block purchasers, M vehicles (except for the M2) price moves closer to invoice.

On the other forum, there was an ED offer on the new M850i $500 above ED invoice-- I know that regular series and M's have different ED allocations, but the 8 series is brand new to market. Also, OP may be looking for a non-competition M5.

Maybe one of the CA's can chime if both the regular M and competition models come out of the same allocation bucket, or different since BMW has recently separated out the two as different models (such as MY 2019 NA codes are 195G & 195R)-- meaning ZCP is no longer an option package such as with the F80/F82/F83?
 

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After the initial 1st year 'wow factor' and the early adaptors/1st on the block purchasers, M vehicles (except for the M2) price moves closer to invoice.

On the other forum, there was an ED offer on the new M850i $500 above ED invoice-- I know that regular series and M's have different ED allocations, but the 8 series is brand new to market. Also, OP may be looking for a non-competition M5.

Maybe one of the CA's can chime if both the regular M and competition models come out of the same allocation bucket, or different since BMW has recently separated out the two as different models (such as MY 2019 NA codes are 195G & 195R)-- meaning ZCP is no longer an option package such as with the F80/F82/F83?
I'm sure the list of people wanting a M5 is longer then production, that is why I'm surprised.
 

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I'm sure the list of people wanting a M5 is longer then production, that is why I'm surprised.
Cars.com lists 449 F95 M5's available. From my personal BMW discussions, M vehicles except for the M2 are not selling well and sitting on lots. One reason is the awful residuals for MY 2019 (December 2018 rates):

15k miles / 48% residual
12k miles / 50% residual
10k miles / 51% residual

BMW NA offered a $5,000 lease credit only for the MY 2019 regular M5. Similar situation compared to initial M3 CS lease rates that BMW FS overtime improved closer to F80 residuals.

With the recent Fed interest rate increase and stock market decline, give it a few months before residuals increase and dealerships discount, as BMW AG needs to manufacture M5's to offset R&D costs-- factories can't idle.
 

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Cars.com lists 449 F95 M5's available. From my personal BMW discussions, M vehicles except for the M2 are not selling well and sitting on lots. One reason is the awful residuals for MY 2019 (December 2018 rates):

15k miles / 48% residual
12k miles / 50% residual
10k miles / 51% residual

BMW NA offered a $5,000 lease credit only for the MY 2019 regular M5. Similar situation compared to initial M3 CS lease rates that BMW FS overtime improved closer to F80 residuals.

With the recent Fed interest rate increase and stock market decline, give it a few months before residuals increase and dealerships discount, as BMW AG needs to manufacture M5's to offset R&D costs-- factories can't idle.
WOW a 5K lease credit on a new M5.

#MAGA
 

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WOW a 5K lease credit on a new M5.

#MAGA
Agreed, haven't seen a significant lease credit like that since the e39 M5's. You're right Ibiza, deals are only going to get better, and the abysmal residuals gotta go up.
 

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Greg Poland Pacific BMW
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If you want a ED deal, please contact me directly.
 
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