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Discussion Starter #1
Hi,

I have various pricing related questions and your guidance/input would be much appreciated:

I. MSRP discounts and rebates:
What's the most aggressive discount to the MSRP one could expect in 2019 530e/i and 540i/x?
Does the discount vary by model? by car/stock number?
Does it matter if it is lease vs purchase?
What are the key variables affecting MSRP pricing discounts?

I am seeing 8% and in some cases 10%. I was offered 20% for a 2018 Audi hence the question.

II. APR
What is the target/lowest leasing APR for buyers with FICO scores over 800? 750-800?
I am seeing .00188 (without providing scores yet)

III. Residual Value
Is 60%-61% the highest RV offered? It is the highest I have seen.
Does this vary by model / stock number?

Audi was offering much lower RV, like ~42% (2018) and 50% (2019).

If it matters the dealers are in the SF Bay Area / Silicon Valley.

Typically I purchase cars and keep them for a long time but I am considering leasing with BMW because the terms seem attractive but there may be more than meets they eye once I read the small print.

Of course, any suggestions on how to get the best deal possible are appreciated.

Lots of questions... I know.

Thank you!
 

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///Monkeyazz Duck
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Leasing is a black art. Those who don't understand how leasing works almost inevitably get fleeced. You should start by reading the "New to Leasing?" thread on Bimmerfest, then getting yourself a good leasing calculator and playing with it.

BMW Financial Services (BMWFS) sets the RV. A higher RV results in a lower monthly payment. It does not vary car-by-car, but it often varies model by model. Note that lower mileage leases (10,000 per year vs. 12,000 or 15,000) will always have a higher RV.

When you are talking about leasing, the term is Money Factor (MF) not APR. There is a real difference, and it's difficult to convert one to the other accurately. BMWFS also sets the MF, and it can vary by model. However, dealers are allowed to mark up the MF. This is one of the ways that unwary consumers can wind up getting worse of a deal than they thought.

There are all sorts of discounts, many advertised, some not. Example: if you test drive an X5 at one of the Winter Driving Events, you get a $1,000 coupon from BMWNA which can be used for almost any model, not just an X5. This comes out of BMW's pocket, not the dealer's, so shouldn't impact your negotiating.

Most experienced lessors start at Invoice and negotiate UP (e.g. $750 over invoice, minus all available discounts and allowances) rather than starting at MSRP and negotiating DOWN.

Of course, you could always just save yourself the hassle and contact Greg Poland at Pacific BMW in Glendale. Greg gives EVERYONE the very best available deal, no negotiating required. https://www.linkedin.com/in/greg-poland-298158b/
 

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Discussion Starter #3
Thank you! I will read the thread you mentioned. I already built a calculator that replicates the payment quoted by the dealer to the penny and have sensitivities around the 3 factors you mentioned (other than cost plus because I have MSRP discounts). I read somewhere that people multiply the MF vy 2400 to get the APR but my model uses the MF, not the APR.
 

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The most important things about leasing:

1. Calculate the GRAND TOTAL of all payments and everything else. Do NOT get lured into a low monthly payment number.
Example: GMC trucks had an offer of $199 or $299 a month, but with all the upfronts and BS fees, it came out to be more like $650-700/month.
Example 2: I had a firm budget for my 535i, and went a little higher for my replacement car, but leasing skyrocketed, so I had to switch to another brand. And got a great deal.

2. Do not pay multiple security deposits or cap cost reduction (unless you plan to buy the car at the end).
Yes, I know this is a common trick w/ German cars. Avoid it.

3. Forget calculating the "interest rate" or APR. It's meaningless. Yes, it's MF x 2400, but it's not used the same way. You can't just say "well money factor is 0.00143 x 2400 = 3.432%, so then over 3 years it's 10%...". Can't do it.

4. Finally, look at all FEES -> documentation, tax, etc. This changed things this year - moreso than previously.
 

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Discussion Starter #5
Thank you very much. Something I found interesting about the MF is that it applies not just to the depreciation amount but ALSO to the residual value. Initially I could not reconcile the payment from my model to the dealer quote and then when I made this adjustment it matched to the penny.
 

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The one that gets me is all the TV ads with the low monthly cost plus a one time payment. a $ 3,600 up front payment is equivalent on a 3 year lease to another $100 per month and you are giving the company the use of the money.
 

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///Monkeyazz Duck
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If you are serious about getting a BMW, join the BMW Car Club of America. You will get a $1,000 rebate check which will reimburse you for a lot of the start up costs at inception. www.BMWCCA.org

One exception to Lindros' post: while generally cap cost reductions are a stupid move, you could use the BMWCCA rebate to reimburse you for a $1,000 cap cost reduction. That could cut your monthly cost, and/or allow you to add $2,000 of options you might not otherwise get, and still stay within your budget. Yes, a $1,000 rebate / cap cost reduction will buy you $2,000 or so of options. If you doubt me, run it through your lesaing calculator.
 

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If you are serious about getting a BMW, join the BMW Car Club of America. You will get a $1,000 rebate check which will reimburse you for a lot of the start up costs at inception. www.BMWCCA.org

One exception to Lindros' post: while generally cap cost reductions are a stupid move, you could use the BMWCCA rebate to reimburse you for a $1,000 cap cost reduction. That could cut your monthly cost, and/or allow you to add $2,000 of options you might not otherwise get, and still stay within your budget. Yes, a $1,000 rebate / cap cost reduction will buy you $2,000 or so of options. If you doubt me, run it through your lesaing calculator.


Thanks for the tip on the BMW CCA!


Sent from my iPad using Bimmerfest mobile app
 

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Great info in here and I 100% agree with all above comments.

My lease is coming to an end on my F10 and sadly BMW leases are nowhere close to where they used to be.

Leasing a similarly priced G30 will cost me almost $200 a month more than what my F10 with same terms and conditions. I am with Lindros2 as I have a set budget for my daily drivers.

I am leaning towards looking at other brands with better offerings but of course will reach out to go to people on the forums to get the best possible price 1st.
 
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