[BEM-S4]

Originally Posted by Lrscpa

OP here...

So here is how the transaction played out. As you can see in my handle, the car is a loaded 640xi GC, and I was able to negotiate a 25% discount on the car's MSRP. Order sheet showed the car's owner as BMWFS, and Carfax showed only one owner. Since the residual on a lease is based on the MSRP, the monthly payments are suprisingly low. Had I leased the car new with a 5% discount off MSRP, the monthly payment would have been >$500 more.

I've been in the car for a month, the 640 is a major step up from a 3/4er, my concern at this point is what I will do when the lease is up. But I have plenty of time to think about that.

Exec demos are rarely good to purchase at lease end. As you know the residual is based on the MSRP not the fair value (which you paid).

[BimmerRob]

Originally Posted by Lrscpa

OP here...

So here is how the transaction played out. As you can see in my handle, the car is a loaded 640xi GC, and I was able to negotiate a 25% discount on the car's MSRP. Order sheet showed the car's owner as BMWFS, and Carfax showed only one owner. Since the residual on a lease is based on the MSRP, the monthly payments are suprisingly low. Had I leased the car new with a 5% discount off MSRP, the monthly payment would have been >$500 more.

I've been in the car for a month, the 640 is a major step up from a 3/4er, my concern at this point is what I will do when the lease is up. But I have plenty of time to think about that.

Congrats OP, glad it worked out for you. I'm selling my car after the warranty expires, no point keeping it after that. Up to you what you do with your lease, but I wouldn't keep it.

What's your monthly payment and how much did you put down? Did you put any MSD?

[BimmerRob]

Originally Posted by BEM-S4

Exec demos are rarely good to purchase at lease end. As you know the residual is based on the MSRP not the fair value (which you paid).

How sure are you of this? I've always known the residual to be based off the negotiated price of the vehicle.

[BEM-S4]

Originally Posted by itsonlysmellz

How sure are you of this? I've always known the residual to be based off the negotiated price of the vehicle.

Then you're doing leases differently than literally every deal I have ever seen. The residual is based on MSRP and the % is set by BMW.

[BimmerRob]

you're right, its based off MSRP

[shawntech]

how are you guys seeing 30-35% off MSRP? I'm trying to buy a 16' 340i xdrive and they are stuck at 13% under msrp

[BimmerRob]

Originally Posted by ls3c6

how are you guys seeing 30-35% off MSRP? I'm trying to buy a 16' 340i xdrive and they are stuck at 13% under msrp

Some Executive Demo's have damage disclosures where there was damage done to the vehicle while under the ownership of BMW, and fixed by BMW. In the case of my car, the rear bumper and trunk took a ding, and was repainted by BMW. The damage came out to $5,000, which I was able to negotiate off the sticker price. The larger the damage disclosure, the larger the discount. Just be careful to make sure there's no damage to the frame. On the disclosure form it also tells you the mileage of the vehicle when it had to go in for repairs. In my vehicles case, the mileage was reported at 11 so it probably happened when unloading the vehicle. No big deal to me, as the repair was done by BMW and I can't tell the difference. My vehicle had an MSRP of over $60k and was fully loaded with everything but M-Sport, so that might also have had an affect on the 35% off MSRP since MSRP was so high to begin with.

[BEM-S4]

Some more info to add for folks interested. First demo does not equal loaner, so that's an important distinction. Second, not all exec demos are actually driven much if at all. Every now and again BMWNA will program where dealers can classify cars as exec demo. I just found this out. Basically dealers can take that credit, typically like $2k, and apply it to eligible cars to subsidize a discount on something they want to move. It does start the clock on the warranty and someone from the dealer like the sales manager or whatever may put some miles on the car for personal commuting or whatever, but basically it's just a way for the dealer to move slow inventory at a reduced rate, get their volume up, and BMW eats the additional discount to buyer instead of dealer.

[Deleted853]

Originally Posted by XRAVE

Considering most cars lose 20% of their value in the first year, yea it's not a huge discount.

Also demo cars have like 100+ owners, which include kids who do donuts. Your paying for what you get

What part about executive demo and dealer loaner not being the same do you not understand?

[XRAVE]

Originally Posted by Mwm1166

What part about executive demo and dealer loaner not being the same do you not understand?

What part about me posting this 3 months ago and your not quoting me do you not understand?

Either way, I was commenting on the fact that 20% discount on a car with 1 owner and a year old is not a good discount.

[mbanks21]

Originally Posted by XRAVE

What part about me posting this 3 months ago and your not quoting me do you not understand?

Either way, I was commenting on the fact that 20% discount on a car with 1 owner and a year old is not a good discount.

I'm the first owner of my factory demo and I got 25% off MSRP. I don't know anyone getting 25% off on a brand new BMW

[XRAVE]

Originally Posted by mbanks21

I'm the first owner of my factory demo and I got 25% off MSRP. I don't know anyone getting 25% off on a brand new BMW

People on these forums don't read... I was clearly referring to the OP who said the car was a year old. He asked if that was a good deal, I said no 20% off a car that is 1 year old is not a good deal.

Also I have seen people get 15-20% off brand new cars. If you were to get a 2016 mode right now and could find one on the lot, you'd be looking at that discount range.

I don't know the situation of your deal but generally any demo car is not a good deal. The first owner of your car was the dealership, who knows what they did with it.