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Discussion Starter · #1 ·
Jon,

Would appreciate your opinion on this..

1. I just gave my dealer a $500 deposit for an 03 540i that is in his allocation but unspoken for. In fact, he tells me it was just built and sitting in Germany awaiting shipping. He now wants a signed sales order in addition to the deposit in order to put my name on the car. Is this legit?

2. We have agreed on terms and numbers on the sales order, which is a lease by the way, using the standard lease rate from BMWFS. The deal has about $3K knocked off the MSRP. He has also agreed that if BMWFS releases lower money factors, or sales support rates, before delivery of the car that he will pass along that lower rate to me - resulting in a lower payment than I'm signing on the sales order today. This is what he has written on the sales order: "Subject to program rates & residuals at time of delivery." Is this legit?

The reason I asked for this is I'm guessing rates will be lowered at the start of November. But I could run the risk of the residual being lowered too?

Thanks for all help.
David
 

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Discussion Starter · #2 ·
...By the way, for those wondering, the reason I'm not just working with Jon (Cutter) on this is I'm in Florida and the laws say he can't work a lease deal with me...
 

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David,

I would say that I wouldn't worry too much at this point.
In CA we don't have "buyers' orders", or "sales orders" that
many of the other states have, but it's pretty safe to say that
such an order is not an enforceable contract. Signing it
should, at the very least, make both parties feel more
comfortable or secure. In the vernacular of the car biz,
we call these things "glue"...
They help make the deal stick! ;)

As far as rates go, as I have said previously, waiting
should only make things look better. It's much too early
in the selling season for "residual value decay", and
once the 2002's are for the most part sold out by
month-end, money factors will drop when November
programs are announced.

If you get pre-approved through BMWFS, that will
effect a "rate lock" just in case rates go the other
way.

David, I think you're fine...
 

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Discussion Starter · #5 ·
Jon Shafer said:


If you get pre-approved through BMWFS, that will
effect a "rate lock" just in case rates go the other
way.
Jon, just to confirm, are you saying that if I do the credit app now and lock the rate that when it goes down within 60 days from now that I can be assured my dealer will give me a lower rate as he has stated and written on the sales order?

Thanks as always for the quick, informative, and assuring response.

David
 

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David,

The rate lock would protect you from (an unexpected) decrease in
residual value. In all likelihood, that's not going to happen
anyway; but if it did, you would still be able to utilize
the current residual value percentage...

As far as giving you the benefit of a rate reduction goes,
you are going to have to assume that your dealer is
operating from a position of good-faith, and fair-dealing.

You are in the best position possible, because
you are extremely well-informed...

:D
 
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