[Dan_335i]

Is it true that if another dealer has the car i want and to get the car to my dealer i have to pay for the shipping of the car?

[bobblehead]

all comes down to how bad you want the car, if the dealer detects you wanting the car real bad, then yes, the dealer will tell you the shipping charge will be paid by you.

As opposite, if the dealer wants a sale on their book and you are not so concern about wanting the car, then you can be in the driver seat by suggesting to the dealer that I am here to buy a car from you, it's up to you to find and deliver the car we have on agreement. As for transport charges from another dealer, you can refuse outright for such added charge and insist the dealer to absorb it.

btw, I did the latter 5 years ago when I was buying a 535xdrive, I am in Toronto and the car was in Alberta, the dealer was Maranello and after about 30 minutes of discussion, I refused to pay $750 of added shipping charges to ship to Toronto. At the end, dealer ate the cost.

[Dan_335i]

Originally Posted by bobblehead

all comes down to how bad you want the car, if the dealer detects you wanting the car real bad, then yes, the dealer will tell you the shipping charge will be paid by you.

As opposite, if the dealer wants a sale on their book and you are not so concern about wanting the car, then you can be in the driver seat by suggesting to the dealer that I am here to buy a car from you, it's up to you to find and deliver the car we have on agreement. As for transport charges from another dealer, you can refuse outright for such added charge and insist the dealer to absorb it.

btw, I did the latter 5 years ago when I was buying a 535xdrive, I am in Toronto and the car was in Alberta, the dealer was Maranello and after about 30 minutes of discussion, I refused to pay $750 of added shipping charges to ship to Toronto. At the end, dealer ate the cost.

i changed the deal to lease instead of finance. ill probably buy the car at the end of the 3 year term. reason i did this is because if the car is accident free in 3 years ill purchase but if its been in a major accident ill return the car.

is it a ok deal?

[bobblehead]

typically, lease then buy will cost a bit more. If you buy it out, then there is the dealer admin fee (again) + inspection fee, which you would have to budget around $750 or so.

On the good side, when that time comes to consider buying it out, you can check out the market selling price of the car (similarly equipped and mileage), if your buyout is much lower than the market listing price, then go ahead and do it. If not, then give it back to the dealer and get another one.

btw, that interest cost of $6,000 over 3 yrs ... Oucch !

[Dan_335i]

Originally Posted by bobblehead

typically, lease then buy will cost a bit more. If you buy it out, then there is the dealer admin fee (again) + inspection fee, which you would have to budget around $750 or so.

On the good side, when that time comes to consider buying it out, you can check out the market selling price of the car (similarly equipped and mileage), if your buyout is much lower than the market listing price, then go ahead and do it. If not, then give it back to the dealer and get another one.

btw, that interest cost of $6,000 over 3 yrs ... Oucch !

it should have be 2000$ difference right? financing vs leasing

And in novemeber there might be a holiday credit and cheaper interest rate. I can ask the dealer to add those in?

[bobblehead]

Your earlier purchase option shows you are trading in a car and finance for 5 yrs @ 4.9%.

Your current lease option shows no trading in a car and lease for 3 yrs @ 4.9%.

[bobblehead]

I am just looking at your lease calculation ... something does NOT make sense at all.

Are you putting down $6,159 in cash deposit ? If so, why is the dealer is adding 13% HST onto the cash down, essentially, you are paying more taxes than required. The cash down should be treated as deposit as such. I have never heard of you pay tax on cash deposit !! that's $800 in taxes you are overcharged and required to be paid on delivery.

ie. If you add $6159 + 395 +23.36 + 100 + 5 + 45.73 = $6728.09 * 13% = 7602.74 + 934.26 first month payment = 8537 - 1000 visa = 7537.

[Dan_335i]

Originally Posted by bobblehead

I am just looking at your lease calculation ... something does NOT make sense at all.

Are you putting down $6,159 in cash deposit ? If so, why is the dealer is adding 13% HST onto the cash down, essentially, you are paying more taxes than required. The cash down should be treated as deposit as such. I have never heard of you pay tax on cash deposit !! that's $800 in taxes you are overcharged and required to be paid on delivery.

ie. If you add $6159 + 395 +23.36 + 100 + 5 + 45.73 = $6728.09 * 13% = 7602.74 + 934.26 first month payment = 8537 - 1000 visa = 7537.

I put $5000.00 cash down when the delivery comes. and $1159 is for excess wear and tear paid upfront. Hmm. I should only be paying the excess wear and tear tax and not taxed on the $5000 down payment. Will email the SA

[bobblehead]

No No No.

the excess wear & tear is already included in the amount financed. Therefore, cash down is cash down. No taxes.

The monthly lease calculation I have on my own spreadsheet shows $937.41 vs the dealer's # of $934.26 ... close enough. Difference of $3.15 per month lower on dealer's cal.

Or if you want to look at it this way. Since you have made $1000 in Visa, tell the dealer that if you subtract $5000 from cash down side and add another $5000 on the "less: customer deposit made" to $6000, you will see the difference in "Due on delivery".

[Dan_335i]

Originally Posted by bobblehead

No No No.

the excess wear & tear is already included in the amount financed. Therefore, cash down is cash down. No taxes.

The monthly lease calculation I have on my own spreadsheet shows $937.41 vs the dealer's # of $934.26 ... close enough. Difference of $3.15 per month lower on dealer's cal.

So your saying the excess wear and tear is already included into the monthly payment? I asked the dealer i only wanted $5000 down payment and it said $6159 on the sheet, dealer said its because 5000+1159. i had to pay excess wear and tear upfront or something



YEH something is wrong.

the excess wear and tear is rolled into my monthly payments, it adds up here. The part where it says Options (see above) $3439.00 includes freight, PDI, and excess wear and tear. and then there charging me for wear and tear as a downpayment also?

[bobblehead]

Yes. The excess w&t 1159 + freight/pdi 2280 = 3439 ... included in the finance portion.

That's why you don't see this amount shown & due on delivery.

If your sales guy does not know math. Then talk to the Sales Manager to look over the offer sheet. Ask the question why the 'Cash down" has 13% taxes on it. It should be treated as deposit category.

[Dan_335i]

Originally Posted by bobblehead

Yes. The excess w&t 1159 + freight/pdi 2280 = 3439 ... included in the finance portion.

That's why you don't see this amount shown & due on delivery.

If your sales guy does not know math. Then talk to the Sales Manager to look over the offer sheet. Ask the question why the 'Cash down" has 13% taxes on it. It should be treated as deposit category.

So even tho the SA said $5000+$1159 is $6159. Said the $1159 is for excess wear and tear. But the excess wear and tear is already included in monthly payments. The extra $1159 is basically treated as a downpayment?

So all I need to worry about is the tax on the $6159 down payment?

[bobblehead]

On another different look, if the dealer maintains that the w&t is to be paid on delivery, then it's fine. Then the dealer will have to remove this same amount from the option amount of $3439 (total).

Your SA is an idiot ! Bring this up to your Sales Mgr ... maybe even BMW Canada

[Dan_335i]

Originally Posted by bobblehead

On another different look, if the dealer maintains that the w&t is to be paid on delivery, then it's fine. Then the dealer will have to remove this same amount from the option amount of $3439 (total).

Your SA is an idiot ! Bring this up to your Sales Mgr ... maybe even BMW Canada

If i tell the dealer to remove the $1159 from the cash down because its already rolled into my monthly payments I will end up having $5000 cash down and my monthly payments will be higher correct? If i just leave it as it the payments will still be 934.26 right?

All I need to worry about is the tax on my down payment?

EDIT you've been very helpful.

[Dan_335i]

Originally Posted by bobblehead

If you do the following:

1) Leave the w&t 1159 in the finance amount and adjust your due deposit to $5000, then your monthly payment would be $976.45 (taxes incl.). This $5000 should NOT be taxable. Total due on delivery should be $6,619 - $1000 (Visa) = $5,619

2) Have the dealer remove this w&t 1159 from the finance amount and you will pay this amount on delivery and adjust your due deposit to $6159, your monthly payment should be $898.36. Total due on delivery should be $9,010 - $1000 (Visa) = $8,010

im going to just leave everything the way it is. I dont mind leaving the down payment at $6159 and I'll leave the excess wear and tear rolled into the monthly payments. so I can keep the $934.26 monthy payment. I will talk to them about the tax on my deposit.

After they fix the tax on my deposit everything seems OK? Nothing out of the ordinary?


talk later going to school

[bobblehead]

If they fix everything, you can post up the corrected offer sheet and I will be the judge.

[Dan_335i]

Originally Posted by bobblehead

If they fix everything, you can post up the corrected offer sheet and I will be the judge.

This is what the SA said about the tax on the down payment


Any money that you put as a down payment on a lease is taxable because you are reducing the net cap cost.

[bobblehead]

Alternatively, you can tell him you won`t be making more cash downpayment, therefore, it will be 0. Your grand total deposit will be just that 1000. Anyway, the wear & tear cost is already being included in the finance option already, just like the freight & pdi amount.

Let him run the number based on this scenario. I calculated the monthly payment to be $1,111 (taxes included). Total due on delivery is $1,111 (first month) + $643 ( upfront fees) = $1,754 (taxes included).

Originally Posted by Dan_335i

This is what the SA said about the tax on the down payment


Any money that you put as a down payment on a lease is taxable because you are reducing the net cap cost.

[bobblehead]

I don't understand this anymore.

Originally Posted by Dan_335i

This is what the SA said about the tax on the down payment


Any money that you put as a down payment on a lease is taxable because you are reducing the net cap cost.

[Dan_335i]

Originally Posted by bobblehead

I don't understand this anymore.

yeh lol confusing. im gonna jusr call bmw canada to make sure am i suppose to get charged tax on down payment for lease

[bobblehead]

Let's say you DO have to pay taxes on the cash down. Here is the scenario:

1) Your current offer sheet says - $6159 cash down and total lease obligation is $41,236

I then use this scenario if the cash down is changed -
2) say to $1000 which is your visa payment. with tax chargeable on this $1000 cash down, the calculated total lease obligation is $41,776. Difference of $540 more.


At the end, I guess I have to eat my words for not being 'lease' smart after all, certainly the gov't would be happy of additional taxes received.

[sbotta370]

I guess the pricing is totally fine to what i see cause i recently bought my 335i xdrive M Sport Package with Premium Package they kinda gave me a good deal some what like yours.