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Discussion Starter · #1 ·
Good Afternoon, negotiating with a dealer and was given the following. Where am I leaving money on the table. I am in a X4 lease that expires in 4/18, so 4 payments left, financed through BMWFS.

Msrp: $65,635
Dealer discount: $7907.15
Holiday: $3,000
Additional incentives: $1,000 event attendance + $1,000 Corp Fleet discount (both reflected with discount)
Sale Price: $57,727.85
Fees Rolled in
NY Sales Tax: $2,322.89
Cap Cost $3,000 Holiday Credit applied as Cap Cost Reduction
MF: .00152
Residual: 59%
Due at signing: $2,401.53
First Month: $654.64
Reg - $300
Upfront Tax - $117.94 (NY sales tax on bank fee and doc fee)
Bank Fee: $925
Doc Fee: 395.00
Title Fee: $8.95

Total due: $2,401.53
 

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Happily Driving
2018 X5
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That's a pretty decent lease on an X5.
 

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Looks solid. NY charges all the tax up front so that is taking up most of your rebate per your numbers, but your discount of 7907 (5907 + 2k in incentives) seems pretty good to me. Everything else looks in order, but I am not super familiar with states that charge all the tax up front on the entire purchase price.

With that being said it looks very solid to me, and you have all the data too, so thats 4/5ths the battle right there.
 

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Discussion Starter · #4 ·
That's a pretty decent lease on an X5.
We agreed to 9.5% off invoice for sales price, before incentive. Should the Fleet and Sweepstake be applied on my end not to discount the car. For some reason I think I am about a $1000 or so over???
 

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Is that for an in stock vehicle? The best I've been quoted thus far is 6.5% + $500 - $3k for an order... which I don't think is very good... and I'm ordering two cars.

Needless to say, I am still looking.
 

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Discussion Starter · #6 ·
Is that for an in stock vehicle? The best I've been quoted thus far is 6.5% + $500 - $3k for an order... which I don't think is very good... and I'm ordering two cars.

Needless to say, I am still looking.
Local stock, still think money is on the table, since we started at 9.5 off MSRP.
 

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We agreed to 9.5% off invoice for sales price, before incentive. Should the Fleet and Sweepstake be applied on my end not to discount the car. For some reason I think I am about a $1000 or so over???
We (the buyer) dont get to choose how incentives are applied. "rebate" style incentives are applied as cap cost, and some other types are applied as discount to the price of the car (not as rebates). You cant dictate it, because cap cost reductions are taxed in many states, so there are some rules about what has to be applied how.

Anyway, you cant negotiate the how of where your incentive money is applied, that is dictated by where its coming from, and what type it is.

As for you "feel you are 1k over because they started at 9.5 off MSRP before incentive"... I can only say that sales is emotional. You likely wouldnt feel that way if they started at 7% off and you "worked" them to 9.5% off.

invoice is 7% . anything over 7% off before incentive is the dealer selling into some back end money.. either trunk money or something else. You say you are at 9.5% off before incentives. I think they just want to move a car, and started with a great offer.

Could you get more? Maybe, it sounds like they really want to move a car. You certainly are already getting a great deal from what I can see. Its also possible they offered you their best deal out of the gate, and what you should be asking for now is freebies like all weather mats, or other BMW accessories.

One of the keys to buying a car, is recognizing a good deal and then executing on it. This looks like a really good deal.
 

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Discussion Starter · #8 ·
We (the buyer) dont get to choose how incentives are applied. "rebate" style incentives are applied as cap cost, and some other types are applied as discount to the price of the car (not as rebates). You cant dictate it, because cap cost reductions are taxed in many states, so there are some rules about what has to be applied how.

Anyway, you cant negotiate the how of where your incentive money is applied, that is dictated by where its coming from, and what type it is.

As for you "feel you are 1k over because they started at 9.5 off MSRP before incentive"... I can only say that sales is emotional. You likely wouldnt feel that way if they started at 7% off and you "worked" them to 9.5% off.

invoice is 7% . anything over 7% off before incentive is the dealer selling into some back end money.. either trunk money or something else. You say you are at 9.5% off before incentives. I think they just want to move a car, and started with a great offer.

Could you get more? Maybe, it sounds like they really want to move a car. You certainly are already getting a great deal from what I can see. Its also possible they offered you their best deal out of the gate, and what you should be asking for now is freebies like all weather mats, or other BMW accessories.

One of the keys to buying a car, is recognizing a good deal and then executing on it. This looks like a really good deal.
Thank you for your opinion, I am not concerned where the money is applied. It's not a true feeling, more like a thought.

Is there money on the table? That is what I am asking and why I join forums like this. I plug the numbers into several lease calculators and have seen $0 out the door for approximately the same payment.
 

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Thank you for your opinion, I am not concerned where the money is applied. It's not a true feeling, more like a thought.

Is there money on the table? That is what I am asking and why I join forums like this. I plug the numbers into several lease calculators and have seen $0 out the door for approximately the same payment.
You previously asked:

"Should the Fleet and Sweepstake be applied on my end not to discount the car."

So I took that to be a question about where the money was applied. Based on your subsequent response, that was an incorrect assumption on my part and you ment something else.

I already gave my opinion on the other question. I would just remind you that in NY you are paying the tax up front added to the cap cost (2322.89 in your quote). In most other states we are taxed monthly on the RV. As you are comparing to other deals, you need to either be comparing to only other NY deals, or removing 2322 from the cap cost to compare your deal to theirs.

Good luck.
 

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Texas is unfortunately another lease-unfriendly state where we have to pay taxes on the total cost of the vehicle and not just the "leased" part...

On another note, I've lost track of the discounts available this month... So there's the Holiday ($3000), loyalty (how much is that?), event attendance ($1000), corp fleet (variable I assume?)... Anything else?
 

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... ....

Due at signing: $2,401.53
First Month: $654.64
Reg - $300
Upfront Tax - $117.94 (NY sales tax on bank fee and doc fee)
Bank Fee: $925
Doc Fee: 395.00
Title Fee: $8.95

Total due: $2,401.53
I'm curious in these fees. Is it common for dealers to play with numbers?

Here is what I paid in my '18 40e -

* 1st month lease payment
* Sales Tax on Capitalized Cost Reduction

All other fees -
* Initial License Fees - $80.00 (I used the same plate from my previous car, which was just renewed for 2-years 2-months ahead of my new lease.)
* Inspection - $10.00
* Doc Fee - $75.00

(Another vendor's quote indicated approximately $230 for "all other fees".)
 

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I'm curious in these fees. Is it common for dealers to play with numbers?

Here is what I paid in my '18 40e -

* 1st month lease payment
* Sales Tax on Capitalized Cost Reduction

All other fees -
* Initial License Fees - $80.00 (I used the same plate from my previous car, which was just renewed for 2-years 2-months ahead of my new lease.)
* Inspection - $10.00
* Doc Fee - $75.00

(Another vendor's quote indicated approximately $230 for "all other fees".)
A dealer can charge whatever they want for a "doc" fee, as it is not an official fee at all, just a charge dealers charge for "doing the documentation". In california, the fee is regulated by the state at $80. In places like florida, they charge 699 to 899 for the same thing.

"Registration" is normally an official fee. "inspection".. what are they charging $10 to inspect? You could ask them, but its such a small number most people will usually let a fee that size pass (including me) but for the dealership, $10 X "every car sold" is a lot of extra money just for adding a line item called inspection.
 
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