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i'm gettng ready to lease a 530i. i've not leased before. the finance guy is quoting me a $775 acqisition fee and a $100 processing fee (all separate from the MACO and destination fees already on the sticker). Is this standard? Thanks for your help.
 

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Dealers will try to get $825 or more for lease acquisition fees, but I've helped a few friends lease BMWs and $625 is not a problem to get.
 

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As stream said, the range for the acquisition fee on a BMW lease is from $625 - $825. $625 is the minimum and BMW allows dealers to bump it a max of $200.

The MACO and Destination are both legitimate charges that you just need to swallow and move on from.

Your processing fee is whatever they can get away with charging you but you have room to argue on this processng fee and the acquistion fee if you so choose. Good Luck!
 

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Another way to look at it

wcm said:
i'm gettng ready to lease a 530i. i've not leased before. the finance guy is quoting me a $775 acqisition fee and a $100 processing fee (all separate from the MACO and destination fees already on the sticker). Is this standard? Thanks for your help.
Anything above $625 is profit for the dealer. Just negotiate overall profit and keep it simple.
 

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I'd like to add that if you are doing ED (European Delivery), MACO/Training fees are to NOT be included and shouldn't be anywhere on the invoice.
 

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My 2 cents.

It is shortsighted to try to grind the dealer too much on their "profit".

I probably could have gotten my 550 for $1,000 over invoice and a $625 acquisition fee, and had both the CA and the Finance Manager think I was a prick.

Instead I paid $1,500 over (so the CA made out okay) and $825 for the acquisition fee (so the F&I gal made some $$ and helped her numbers). In return, I got treated very well, and got some "stuff" thrown in (winter floor mats, latest version Nav DVD, rear reflectors) that I never would have seen if I had pushed for the "best" deal. I also got some wear and tear waived on the E39 540 I turned in.

IMHO it's a little small investment that will more than pay for itself over the life of the car. I want to be one of their favorite customers, not one of "the jerks".

Again, just my $0.02
 

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Perhaps it is shortsighted but who knows if you would have gotten that regardless of grinding the dealer or not.

However, I do agree that it can be important to establish a good rapport with a dealer (local or not) because when you go back there to buy another BMW, you can probably get it cheaper (maybe you'll get 1000 this time and still get all the freebies thrown in....).

I have purchased 2 BMWs from my dealer, and the deal gets easier and easier and I am paying less and less. :)
 

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But - thanks to the pricks as well!

quackbury said:
My 2 cents.

It is shortsighted to try to grind the dealer too much on their "profit".

I probably could have gotten my 550 for $1,000 over invoice and a $625 acquisition fee, and had both the CA and the Finance Manager think I was a prick.

Instead I paid $1,500 over (so the CA made out okay) and $825 for the acquisition fee (so the F&I gal made some $$ and helped her numbers). In return, I got treated very well, and got some "stuff" thrown in (winter floor mats, latest version Nav DVD, rear reflectors) that I never would have seen if I had pushed for the "best" deal. I also got some wear and tear waived on the E39 540 I turned in.

IMHO it's a little small investment that will more than pay for itself over the life of the car. I want to be one of their favorite customers, not one of "the jerks".

Again, just my $0.02
But thanks to all the people who take it, being pricks, pricing remains competitive. Luckily, there are enough dealers out there to cater to both ends of the market. I guess I'm in the "P" group - I love to shop at Wal-Mart, Target and Costco. But surprisingly, they seem to be doing OK - and they never treat me too badly.

My suggestion - there is a way to get the price you want, without being a prick. Just present your offer, don't waste their time, and tell them if they want it, say Yes, and if not, say No, shake hands and leave. That's a fair business dealing. No one's being a "prick" in this case. I fully agree, that if either party engages in shady dealings for advantage, its warranted.

Just an approach that's worked for me.
 

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chrischeung said:
But thanks to all the people who take it, being pricks, pricing remains competitive. Luckily, there are enough dealers out there to cater to both ends of the market. I guess I'm in the "P" group - I love to shop at Wal-Mart, Target and Costco. But surprisingly, they seem to be doing OK - and they never treat me too badly.

My suggestion - there is a way to get the price you want, without being a prick. Just present your offer, don't waste their time, and tell them if they want it, say Yes, and if not, say No, shake hands and leave. That's a fair business dealing. No one's being a "prick" in this case. I fully agree, that if either party engages in shady dealings for advantage, its warranted.

Just an approach that's worked for me.
Totally agree, and that's what I do. $1,000 over on the X5, $1,500 over on the 550. Both were fair prices, which allowed the CA to make a profit, and a lot less than what most folks who walk in off the street wind up paying. I could have played 3 or 4 dealers off against each other to save an extra $500, but run the risk of having a cruddy service experience down the road.

I'd like to think that there's a range of buyers ranging from "Dumbass who'll pay retail" to "smart shopper who knows what he is willing to pay" to "Jerk who shops 10 dealerships on the last week of the month hoping to find a CA desperate to make his numbers". I like being in the middle group.

A $500 savings works out to about $15/month over a 36 month lease. To me, it's just not worth it. To each his own.
 

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Just a suggestion

quackbury said:
Totally agree, and that's what I do. $1,000 over on the X5, $1,500 over on the 550. Both were fair prices, which allowed the CA to make a profit, and a lot less than what most folks who walk in off the street wind up paying. I could have played 3 or 4 dealers off against each other to save an extra $500, but run the risk of having a cruddy service experience down the road.

I'd like to think that there's a range of buyers ranging from "Dumbass who'll pay retail" to "smart shopper who knows what he is willing to pay" to "Jerk who shops 10 dealerships on the last week of the month hoping to find a CA desperate to make his numbers". I like being in the middle group.

A $500 savings works out to about $15/month over a 36 month lease. To me, it's just not worth it. To each his own.
This is just my personal experience. For the last 3 cars I bought (2 BMWs and a Honda), I did my research, found a good market price, was happy with it, and made a written offer, by fax or in person. In all cases, I said take it or leave it, we're still all friends, and even think let them think it over if they wanted. I told them I was giving the offer to them first, and would not shop their deal, and the offer I presented wasn't based on shopping my deal. All 3 situations, the CA and SM agreed immediately, without negotiation, or any animosity. You may want to try it on your next deal. $500 is $500 - donate it to a worthy cause if you wish. But, if you want your CA to get it, that's also fine as well. Heaven knows how much money I've left on the table before the internet...

Good luck!
 

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quackbury said:
My 2 cents.

It is shortsighted to try to grind the dealer too much on their "profit".

I probably could have gotten my 550 for $1,000 over invoice and a $625 acquisition fee, and had both the CA and the Finance Manager think I was a prick.

Instead I paid $1,500 over (so the CA made out okay) and $825 for the acquisition fee (so the F&I gal made some $$ and helped her numbers). In return, I got treated very well, and got some "stuff" thrown in (winter floor mats, latest version Nav DVD, rear reflectors) that I never would have seen if I had pushed for the "best" deal. I also got some wear and tear waived on the E39 540 I turned in.

IMHO it's a little small investment that will more than pay for itself over the life of the car. I want to be one of their favorite customers, not one of "the jerks".

Again, just my $0.02
Let me play devil's advocate. I've purchased many cars in my life, and the notion that you should leave some money on the table for "relationship" reasons really doesn't apply to the car business, IMHO.

So you paid $700 more than you think you could have gotten the car for. What did that buy you? Winter floor mats, latest version Nav DVD (which you should get with a new car), rear reflectors. Doesn't sound like $700 to me. ;)

I paid $1,000 over invoice for my 545i in January 2005. Also got hats, key chains, and a BMW bear for my daughter. I didn't lease so the acquisition fee isn't applicable. Even at that price the dealer is making plenty of money (don't forget holdback).

I helped a lady friend negotiate a lease deal--got $1,000 over invoice and $625 acquisition fee on a '06 545i. From the same dealer, and they were happy to hear from me--so much so, in fact, that they offered me one of their first E60 M5s--at MSRP.

There's nothing wrong with pressing for the best deal you can get--rest assured, the dealer will walk when they can't go any lower. I'm not suggesting acting like a jerk, walking out of the showroom in a huff, etc., but I've never agreed with the notion that you shouldn't press for the best purchase deal you can--to establish a relationship with the dealer to get a good deal on the next car, or because you'll get better service when you need repairs done.

In fact, I've found that once the dealer realizes you're a savvy buyer, the subsequent negotiations go even smoother. Just one man's experience. :)
 

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Okay, fair enough. But just like I didn't "need" to pay that extra $700 (or $20/month over the term of the lease), I really didn't "need" to get PDC, Nav or some of the other toys on the car, either. Heck my wife would even tell you I don't "need" a 550, and could have gotten along just fine with less horsepower. (She'd be wrong).

The terms I got ($1,500 over on the 550 and $1,000 over on the X5) were exactly what I asked for, and both were business-like professional transactions. The time I DIDN'T spend haggling and negotiating was easily worth $700 to me.

And if you re-read my previous post, you'd see I'm not really concerned about leaving a profit for the dealer principal (who's a personal friend). I know he's doing just fine. But if I leave a little $$$ on the table for the F&I gal, it makes her look better to the boss. And the CA treated me fairly - you should ask yours what he/she makes on a deal $1,000 over vs. $1,500 over. In most stores, the unit count is the same but the increase in the CA's pay is exponential.

Bottom line: I'm really not concerned about the $20/month (especially since it's being written off anyway). In fact, if time is money, I must waste 50 times that here on bimmerfest each month!
 

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PS Regarding the Nav. All the cars on the dealers lot (including the 07's which were just arriving) had the "old" Nav disc - 2005 version something or other. My CA ran down the latest (v. 2006 something or other) for me, so now I have 2 disks.
 

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stream said:
Even at that price the dealer is making plenty of money (don't forget holdback).
Holdback is a rarity on BMWs as far as I know. The Z4 was a pretty rare instance of trunk money that BMW provided the dealers to move those slugs....
 

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Ågent99 said:
Holdback is a rarity on BMWs as far as I know. The Z4 was a pretty rare instance of trunk money that BMW provided the dealers to move those slugs....
Holdback exists on BMWs--they might call it something different, but it does exist--trust me ;) (it's around 5% of invoice, half based on CSI, half basically a gimme). Trunk money to move inventory is something entirely different.
 

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Ågent99 said:
Holdback is a rarity on BMWs as far as I know. The Z4 was a pretty rare instance of trunk money that BMW provided the dealers to move those slugs....
For what it's worth, there's trunk money in X5's for July ($1,500 for 4.4's and $1,000 for 3.0's if memory serves).
 

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Always thought trunk money = holdback....
 

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Ågent99 said:
Always thought trunk money = holdback....
Trunk money = special manufacturer incentives (on specific models at specific times) to clear inventory.

Holdback = additional dealer profit (beyond MSRP less invoice), which may be--in part or in whole--dependant on CSI scores. Porsche's holdback, for example, is basically dependant on CSI (although the dealers get ~15% spread between MSRP and invoice).
 

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Agree with Stream above. I do also agree with Quackbury in the sense that time does equal money, and if it is going to take a lot of effort to obtain an additional few $$$, it probably isn't worth it. But, I don't think it does. A lot of it has to do with the timing of the purchase (winter months, end of month, etc), whether the dealer already has the car sitting on his lot, how savvy your CA is, how bad a month he is having, how knowledgeable and savvy you're able to persuade him you are, etc. If I could knock off $700 just by negotiating for an additional 20-30 mins (that's usually how long it takes anyway if the guy is going to budge), I'd take that money - since that works out to $1400-$2100 an hour and that's a bit above my paygrade! :)

Regarding service, in my experience, CA's treat each deal as a new deal with no regard to history. They basically want to maximize profits for themselves for each deal that is infront of them. They don't really care about much else. For instance, I actually sent a colleague of mine to my CA and he did the whole shebang on him - negotiating down from msrp, etc. I mean, did he really think I was going to let my buddy be ripped off?? You'd have thought that he'd simply default to something close to the deal I got, but, no, he had to go through the whole BS. It's just what they do - they maximize profits and aren't really interested in future transactions that might not materialize for them.

If you're talking about service as in the service department, then that's just totally different. The CA's have very little to do with the service dept. people, in my experience. It *is* worthwhile cultivating a good relationship with the service manager and personnel. But, don't bother greasing the palms of the CA. :bigpimp:

My 0.02 cents.

cheers,
sunta
 
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