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Discussion Starter · #1 ·
I'm buying my first BMW (a 2006 Monaco Blue 330i with Sport Package, Premium Package, Rear Parking Assist and Sirius Radio) so I apologize up front if my questions are a bit naïve. I’ve done a bunch of searching and think I’m on the right track but would appreciate a review, confirmation and some questions answered from someone more experienced.

I negotiated a purchase price on a vehicle that closely met my specifications that was already enroute to a local dealership, reducing my wait time to about 2 1/2 weeks. The price I got was ok, certainly not the best, I’ve agreed to pay $1695 over invoice. I didn’t want to wait the 6-8 weeks for delivery on a special order, and finding a 6MT that met my color and option choices wasn’t easy, so I was willing to pay more over invoice than the best deals I’ve seen negotiated.

I’m going to pick the car up in a few days and would like some advice on how to negotiate the final deal. I will be leasing the vehicle for 36 months with 12k miles per year. My plan is to put no money toward cap cost reduction, as I’ve learned it is a throw away if you total the car. Based on the BMW Captive Lease Rates and Residuals effective 7/6/2006 , I should shoot for a base lease rate MF of 0.00195 with a residual of 64% of the MSRP. I’m also looking closely at using the MSD program to drive down the MF.


Here are my questions:
1) Are my assumptions above correct (MF, Residual %, etc.)?
2) Is the current MSD program still offering up to 7 over the required security deposit and a reduction of 0.00007 per?
3)What additional items should I expect the Finance guy to try to sell me? I’m assuming the tire/wheel insurance is one. I’m considering it as I live in NJ with lots of potholes and have read the stories about all of the RFT problems. What is a good price for 3 years of tire/wheel insurance? ($300?) Are there any additional items they will try to sell me that are worth considering?

Any help would be greatly appreciated as I’m new to dealing with BMW dealers.

Thanks!
 

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Discussion Starter · #3 · (Edited)
Thanks for the feedback, I feel more confident in my MF and MSD figures now.

I'd still be interested to see what dealers think is a good deal on the 3 year tire/wheel insurance.
 

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Depends what that tire/rim insurance covers. In my case I bought it for about $300 and it paid off big time as they replaced two tires and two rims. Had I not gotten that insurance I would have easily have had to pay over 1k. Just check what it actually covers!
 

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As far as my post about buying from F&I the plain truth is ALL extra warrantees sold by anyone are not a good deal. They are a real profit item. So when you buy a TV, a computer, or anything else don't buy an extended warrantee. Some said they were glad they bought the road hazard but in the long run the odds are strong that it will cost you money. I look at it this way, I'll be my own insurance company. I'm 63 years old and have never bought anything like this and would have never used it if I had. I have spent enough to buy several BMWs on health insurance, car insurance, home insurance etc and have never collected penny one. But I need them because the risk is big, but with road hazard the risk isn't big. That's the rule, if the risk is big buy insurance, if it isn't don't.
 

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Discussion Starter · #6 ·
mclaren said:
As far as my post about buying from F&I the plain truth is ALL extra warrantees sold by anyone are not a good deal. They are a real profit item. So when you buy a TV, a computer, or anything else don't buy an extended warrantee. Some said they were glad they bought the road hazard but in the long run the odds are strong that it will cost you money. I look at it this way, I'll be my own insurance company. I'm 63 years old and have never bought anything like this and would have never used it if I had. I have spent enough to buy several BMWs on health insurance, car insurance, home insurance etc and have never collected penny one. But I need them because the risk is big, but with road hazard the risk isn't big. That's the rule, if the risk is big buy insurance, if it isn't don't.
I hear what you're saying, and I've never before considered buying anything from the F&I guy at a car dealership. In this case though, with all of the horror stories I'm reading about people having to buy replacement RFT tires due to nails, cupping, etc. I thought that if a tire/wheel insurance package ran about $100 a year ($300 total) and it covered these types of issues, then it would be a good investment. Thanks for you input!
 

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Discussion Starter · #7 ·
I just got back from the dealership and they are claiming that the MF of 0.00195 is only available to previous BMW FS clients, and that as a new client, the base rate for an '06 330i for 36 months is .00225. Sounds like he's scamming me. Can anyone confirm that the .00195 base rate is available to first time BMW clients.

My credit score was high enough that they waved the security deposit.
 

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mclaren said:
(1) yes
(2) yes
(3) I wouldn't buy ANYTHING from the finance guy.
Except the tire/wheel insurance. About $399 and covers tires/wheel damage for 100k miles.

Worth EVERY penney. :thumbup:
 

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Boondoggler said:
I just got back from the dealership and they are claiming that the MF of 0.00195 is only available to previous BMW FS clients, and that as a new client, the base rate for an '06 330i for 36 months is .00225. Sounds like he's scamming me. Can anyone confirm that the .00195 base rate is available to first time BMW clients.

My credit score was high enough that they waved the security deposit.
The buy rate is .00195. Normal markup is .0002, or .00215. That is the number you should get. They are marking it up .0003. Some on this board want the buy rate but I don't know ANY dealers that will do it. :p
 

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chuck92103 said:
Except the tire/wheel insurance. About $399 and covers tires/wheel damage for 100k miles.

Worth EVERY penney. :thumbup:
So the company that sells this is running a charity ? Let's see, the F&I guy gets something, let's say $50 ( could be more ), so the company gets $349 and they aren't losing money.:)
 

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With all due respect mclaren, you CAN definitely obtain the buy rate. I just did it on our 3.0si. You may need to shop a few dealers. Just give them a proposal to agree to that includes using the buy rate. As I said in a previous post, do your homework and be professional and courteous with the CA when you present the proposal. Never give a dealer additional profit because you would like to lease or finance. Your deal should be for X over invoice whether you lease, finance , or pay cash. It takes an finance manager all of 5 minutes to input the numbers and print out the lease agreement. In fact if you ask a straight forward finance manager, they will tell you a lease deal takes less time than a traditionally financed deal. At least this is the case in CA. Good luck with your deal!
 

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Any captive deal takes less time from F&I. They do hundreds of transactions with BMWFS and the IT systems are linked. They plug in a few numbers and it is done. It is even better than a cash deal. On a cash deal you have to follow through that the check actually clears, the funds are legit etc., since the deal is being funded from an external source and the dealer is releasing the car without any collateral. A finance deal from a 3rd party is also painful for the dealer since there are three parties involved. A captive lease is the fastest for them.
 

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Discussion Starter · #13 ·
I had driven the car off the lot without finalizing the deal because their computers were down. I waited about an hour and they just had me sign a document stating that we would finalize the paperwork as soon as their system was back up. This afternoon I talked at length with the F&I guy, and got him to drop the MF to .00215 and include the premium wheel/tire insurance.

Certainly far from the best deal I've seen, but it's my first bimmer, and damn, I'm still really psyched to have her sitting in my garage.
 

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Congratulations!

While it's possible that you could have shaved a buck or two off the deal here or there, I think you did very well.

mclaren's point about warranties is well-taken, but I also understand your point about the relatively new RFT issues; it will be interesting to see how it plays out over time.

Enjoy! :thumbup:
 
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