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      01-29-2015, 04:44 PM   #23
sampelligrino
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Awesome information, very very helpful. Thank you for taking the time to write this up for us first-time "leasers"
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      02-01-2015, 08:23 PM   #24
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I added a lease transfer section.
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      02-02-2015, 09:15 AM   #25
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Question - to get a lower lease rate I was quoted by dealer to have to pay a cap reduction fee of about $777 can I say no to the cap reduction and buy MSDs instead which sounds like a better option to reduce the monthly lease rate?

And thanks a lot for writing this up! Very helpful for leasing newbies like myself!
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      02-02-2015, 09:17 AM   #26
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Quote:
Originally Posted by neuzpeed
Question - to get a lower lease rate I was quoted by dealer to have to pay a cap reduction fee of about $777 can I say no to the cap reduction and buy MSDs instead which sounds like a better option to reduce the monthly lease rate?

And thanks a lot for writing this up! Very helpful for leasing newbies like myself!
You absolutely may do that. You don't have to do any cap cost reductions. Most of the time dealers suggest this because people are used to making a down payment.
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      02-02-2015, 12:31 PM   #27
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You absolutely may do that. You don't have to do any cap cost reductions. Most of the time dealers suggest this because people are used to making a down payment.
This is 100% accurate. Leasing and buying have different nuances. When you buy, it can make a lot of sense to put significant capital in a car. When you lease it makes no sense unless its an MSD.
A lease is all about paying for the amount of car you use. You have no capital in it.

MRCUR is right about dealers mostly using cap cost reduction because people are used to putting money down on a car. Also some have no interest in taking the time to explain MSDs because it exposes the money factor they may be trying to jack up. No one understands 0.0013 but everyone knows 3.12%.
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      02-18-2015, 09:15 PM   #28
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Just a bump to make sure new members get a chance to read it.
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      02-19-2015, 12:14 AM   #29
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Good info for those new to leasing and I'm sure there will be noobs since the F8x is new.
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      02-19-2015, 03:45 PM   #30
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So guys, I have got a quick question about leasing and thought it would be best posted in here. I have negotiated a lease thats like this:

M3
MSRP: 65575
Sale: 619900
Residual: 63%
MF w/ 7 MSD: .00081
Upfront charges + first month payment: 1505
Cap cost reduction: $1000

Monthly is 616 + tax.

My question is this: I qualify for the college grad incentive of $1000 which is great but is that incentive applied to the sale price or used as a cap cost reduction. It is my understanding that since its not like I am receiving a check or cash from BMW to use as a cap cost reduction then shouldn't my sale price be lowered by $1000?

Thanks guys! Love the info here, really helped with finding a good deal.
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      02-19-2015, 03:51 PM   #31
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Quote:
Originally Posted by thecurryman View Post
So guys, I have got a quick question about leasing and thought it would be best posted in here. I have negotiated a lease thats like this:

M3
MSRP: 65575
Sale: 619900
Residual: 63%
MF w/ 7 MSD: .00081
Upfront charges + first month payment: 1505
Cap cost reduction: $1000

Monthly is 616 + tax.

My question is this: I qualify for the college grad incentive of $1000 which is great but is that incentive applied to the sale price or used as a cap cost reduction. It is my understanding that since its not like I am receiving a check or cash from BMW to use as a cap cost reduction then shouldn't my sale price be lowered by $1000?

Thanks guys! Love the info here, really helped with finding a good deal.
Looks like a pretty solid deal. The $1000 isn't a cap cost reduction, I believe it should reflect on the sale price. They may have already included it in there. They still have about 1000-2000 they could take off, but if they have provided you with a production number and won't budge any lower, I would grab that deal.
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      02-19-2015, 04:01 PM   #32
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Originally Posted by XRAVE View Post
Looks like a pretty solid deal. The $1000 isn't a cap cost reduction, I believe it should reflect on the sale price. They may have already included it in there. They still have about 1000-2000 they could take off, but if they have provided you with a production number and won't budge any lower, I would grab that deal.
Yeah, here is the specific sheet he gave me. So you are telling me that the sale price should actually be 60990 with the $1000 incentive.

Also there is a production number but its at 111 status for a 5/22/15 build date...

Edit: sorry about the sideways rotation on the attachment.
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      02-19-2015, 04:08 PM   #33
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Quote:
Originally Posted by thecurryman View Post
Yeah, here is the specific sheet he gave me. So you are telling me that the sale price should actually be 60990 with the $1000 incentive.

Also there is a production number but its at 111 status for a 5/22/15 build date...

Edit: sorry about the sideways rotation on the attachment.
I'm actually not 100% sure. I'm assuming if their throwing it in as rebate, it's essentially the same thing. Its a pretty good deal, I would take it. Only thing that concerns me is that build week. Pretty far out, almost to the point of it almost being a 2016 model.

If you haven't put a deposit, call around, look for a dealer that has a week 10-13 allocation that will match their offer.
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      02-19-2015, 04:19 PM   #34
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Originally Posted by XRAVE View Post
I'm actually not 100% sure. I'm assuming if their throwing it in as rebate, it's essentially the same thing. Its a pretty good deal, I would take it. Only thing that concerns me is that build week. Pretty far out, almost to the point of it almost being a 2016 model.

If you haven't put a deposit, call around, look for a dealer that has a week 10-13 allocation that will match their offer.
I have contacted my local dealer and I doubt they will match (very greedy dealership). But the initial quote I got from them a bit ago was $63000 sale price (so +$1000) and a base MF of .00150. I asked about the MF and they said they do not use BMW base rate of .0013 buy rate.

Its going to cost me $750 to do a courtesy deliver anyways, so the sale price difference is doable for a local dealer. But there is no way I could buy with a base MF that high knowing its all just markup.
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      02-19-2015, 04:25 PM   #35
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Quote:
Originally Posted by thecurryman View Post
I have contacted my local dealer and I doubt they will match (very greedy dealership). But the initial quote I got from them a bit ago was $63000 sale price (so +$1000) and a base MF of .00150. I asked about the MF and they said they do not use BMW base rate of .0013 buy rate.

Its going to cost me $750 to do a courtesy deliver anyways, so the sale price difference is doable for a local dealer. But there is no way I could buy with a base MF that high knowing its all just markup.
Call more around the New England area. NJ, NY, CT. I got a deal there for 7% off.

Also, to avoid the courtesy delivery, have you looked into the Performance Center Delivery? Free of charge, your car gets delivered to SC and you get a full day of racing. They pay for your hotel and food. Then you could enjoy the 700-1000 mile drive back through the mountains.

You might say you can't put those miles on your car but even 1000 miles at 16 cents a mile is only 160$. Lets say another 150 for gas, 310 is cheaper than 750. I'm sure a one way ticket is about 100 bucks or use miles.
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      02-19-2015, 04:33 PM   #36
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Originally Posted by XRAVE View Post
Call more around the New England area. NJ, NY, CT. I got a deal there for 7% off.

Also, to avoid the courtesy delivery, have you looked into the Performance Center Delivery? Free of charge, your car gets delivered to SC and you get a full day of racing. They pay for your hotel and food. Then you could enjoy the 700-1000 mile drive back through the mountains.

You might say you can't put those miles on your car but even 1000 miles at 16 cents a mile is only 160$. Lets say another 150 for gas, 310 is cheaper than 750. I'm sure a one way ticket is about 100 bucks or use miles.
The dealership I am talking to is located in NJ, and the previous ones are in the area as well. I avoid NY because they don't allow MSDs.
I want to do PCD badly but I'm not sure if I have the time to fly out and do all the stuff (I know its cheaper but it would be easier to just get it delivered here).
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      02-19-2015, 04:37 PM   #37
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Quote:
Originally Posted by thecurryman View Post
I have contacted my local dealer and I doubt they will match (very greedy dealership). But the initial quote I got from them a bit ago was $63000 sale price (so +$1000) and a base MF of .00150. I asked about the MF and they said they do not use BMW base rate of .0013 buy rate.

Its going to cost me $750 to do a courtesy deliver anyways, so the sale price difference is doable for a local dealer. But there is no way I could buy with a base MF that high knowing its all just markup.
The college grad incentive should be applied to your sale price. They list it on the info sheet so you know it has been used. It looks like your true negotiated price is $62,990. It's always wise to negotiate the price without incentives and then stipulate that the agreed upon price is prior to any applicable incentives. If you list your build, it would be easier to tell how good the price is. I don't know the invoice price. You should be able to get 1-2k above invoice prior to any incentives if you are willing to deal out of state.
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      02-19-2015, 04:44 PM   #38
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Originally Posted by OneRib View Post
The college grad incentive should be applied to your sale price. They list it on the info sheet so you know it has been used. It looks like your true negotiated price is $62,990. It's always wise to negotiate the price without incentives and then stipulate that the agreed upon price is prior to any applicable incentives. If you list your build, it would be easier to tell how good the price is. I don't know the invoice price. You should be able to get 1-2k above invoice prior to any incentives if you are willing to deal out of state.
I actually told him about the incentive after he gave me the initial $61,990 sale price but I will double check with him next time I talk to him.

My build is a semi-stripper essentially.
AY color
cloth interior
19 black wheels
HK sound
MT

Invoice should be around 61k I believe. If he really is selling at %62990 then its really not worth the OOS purchase when I get the same price at local.
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      02-19-2015, 04:45 PM   #39
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Quote:
Originally Posted by thecurryman View Post
The dealership I am talking to is located in NJ, and the previous ones are in the area as well. I avoid NY because they don't allow MSDs.
I want to do PCD badly but I'm not sure if I have the time to fly out and do all the stuff (I know its cheaper but it would be easier to just get it delivered here).
Just out of curiosity what dealership are you working with as I am dealing with someone in NJ as well.
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      02-19-2015, 04:56 PM   #40
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Originally Posted by XRAVE View Post
Just out of curiosity what dealership are you working with as I am dealing with someone in NJ as well.
BMW of turnersville. Specifically Adam
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      02-19-2015, 05:00 PM   #41
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BMW of turnersville. Specifically Adam
Thats funny lol, my name is Adam. I'm dealing with Bloomfield in NJ. Great people but I cant guarantee they have an allocation.
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      02-19-2015, 05:12 PM   #42
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Quote:
Originally Posted by thecurryman View Post
I actually told him about the incentive after he gave me the initial $61,990 sale price but I will double check with him next time I talk to him.

My build is a semi-stripper essentially.
AY color
cloth interior
19 black wheels
HK sound
MT

Invoice should be around 61k I believe. If he really is selling at %62990 then its really not worth the OOS purchase when I get the same price at local.
One question. Are you paying the $1000 cap cost reduction? If not that's where the incentive went and you got the pricing you should have.
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      02-19-2015, 05:18 PM   #43
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Quote:
Originally Posted by thecurryman View Post
I actually told him about the incentive after he gave me the initial $61,990 sale price but I will double check with him next time I talk to him.

My build is a semi-stripper essentially.
AY color
cloth interior
19 black wheels
HK sound
MT

Invoice should be around 61k I believe. If he really is selling at %62990 then its really not worth the OOS purchase when I get the same price at local.
Invoice for your build is $59925 + 950 dest. charge= $60,875

It's a good deal. Just curious about that incentive.
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      02-19-2015, 06:27 PM   #44
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Originally Posted by OneRib View Post
Invoice for your build is $59925 + 950 dest. charge= $60,875

It's a good deal. Just curious about that incentive.
Just got off the phone. The incentive is applied as a cap cost reduction (so no I am not paying the $1000 but my rebate is) because its considered a rebate that BMW gives. If the the 1000 comes off the sale price vs cap cost is there a significant difference in the monthly payment?

only neg about the deal is that the build date is set to 5/22...
He told me that since its a 111 status dealer lot car, when it is marked as sold then it could move up production a much earlier. Not sure if this is true or not. If it does build in may, id get the car in July which kinda makes getting a 2015 pointless...
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