08-05-2013, 04:36 PM | #1 |
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Please Help Is this Lease a Good Deal?
Hell everyone and thank you for helping me.
I called a Bmw Dealer In New York and this is what they are offering me. 2013 320i with navigation MSRP - 38125 Sell Price - 34800 Residual - 62% Money factor - 00125 3000 down + tax and fees $5600 total 1000 sign & drive credit 1000 build out credit 10,000 miles a yr 279/mo Is this a good deal or should i try to get the sale price even lower? I am looking to get this car this friday. |
08-05-2013, 08:37 PM | #4 | |
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You should be able to get .00121 as your MF (2.9% APR), right now you're at 3.0% APR. You should be able to wiggle this down. Also, I think that residual is wrong? I think it should be a bit higher for a 2013 for 10K miles at 36 months. I know the 328 & 335 is 64%, I can't imagine the 320 is that much lower? Just check that fact to be sure ... Don't put cash down, use that cash down as MSDs (google this if you're unsure as to what this means). Why is there so much due at signing? 2,600 seems a bit excessive for fees, should be more like 1,500, maybe 2,000 max. |
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08-05-2013, 11:17 PM | #5 | |
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I called another BMW Dealer and they also said 62% Residual i will double check. I specifically asked about the multiple security deposits and he told me "we do not do that in New York State." I did not believe his answer i felt he was being a little dishonest but i let it go since I know its still seems like a good deal. can someone verify for me that MSD are used in NY state? I will get the entire breakdown of all the fees and post them here tomorrow thanks so much for your help! |
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08-05-2013, 11:18 PM | #6 | |
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MSD
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state? |
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08-06-2013, 12:03 AM | #7 | |
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Sorry to be the bearer of bad news. |
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08-06-2013, 08:25 AM | #8 | |
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Some states don't permit MSD's, NY might be one of them. Even still, if this is the case, avoid putting money down towards the lease. Every $1000 you put down on the car lowers the total lease payments by $900 (because of the MF/APR charge). Surely you are better off holding onto that money down, and investing it or saving it and taking a slightly higher payment. |
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08-06-2013, 09:50 AM | #9 | |
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08-06-2013, 10:07 AM | #10 |
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why do such a high down payment?
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08-06-2013, 12:30 PM | #11 | |
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Zero down
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08-06-2013, 12:31 PM | #12 |
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Zero down
Im going to call tomorrow morning and see what number they give me for monthly payment with zero down. But from the original numbers they gave me what do you think would be a fair monthly payment for them to offer me with zero down?
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08-06-2013, 02:58 PM | #13 | |
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Call and figure out EXACTLY how much the total due at signing is for taxes, titles and fees. Then we can figure out how much they are allocating to cap cost reduction and figure it out from there. |
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08-06-2013, 07:25 PM | #14 |
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I would say get invoice price, and calculate lease payment based on that so then you know how good the deal you are getting really is
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08-07-2013, 04:39 PM | #15 | |
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O down $365 mo
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0 down $365/mo 36 months |
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08-07-2013, 04:53 PM | #16 |
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MODS: Should delete this thread. There's already another one.
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08-07-2013, 04:55 PM | #17 |
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08-07-2013, 07:20 PM | #18 | |
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Tire Tax is set by law so that's fine. Cash Down tax, is on the acquisition fee, insurance and fees, and first month's payment. This is also fine. Upfront tax is the selling price of the vehicle before incentives (state doesn't permit netting of incentives against selling price to lower the tax basis), so (34,800 + 2,000) * 8.875 = ~1,166 So your taxes check out. Just as an FYI, this means you are paying all of your taxes up front, so you shouldn't be taxed on your lease payments each month. If anyone else from NY can chime in on if you are double taxed on the depreciated value up front (like you are using the info the dealer sent you) AND THEN on lease payments, please speak up, but I don't think you are in any territory. If I were you, I would verify what the selling price of the vehicle is, NOT including incentives. If it does already include incentives, I think the selling price is probably 36,800, which is 1,000 above invoice. As it's an outgoing model, you should be able to negotiate the selling price to 35,800 or so before incentives. As I said before, go to BMW config to find the exact invoice price and tell them that's the selling price you want BEFORE INCENTIVES. You still haven't done this so I can't help you further. You also need to locate the invoice from BMWCONFIG.com If the selling price they presented to you does NOT include incentives already, then it's still a really good deal. I just doubt a dealer would give you below invoice before incentives without you haggling them - they are throwing away profit for fun in that case, hence my suspicion and asking you to verify the selling price before incentives. |
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08-07-2013, 07:51 PM | #19 | |
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Bmw config
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On a side note when I first spoke to the dealer he said that they had the car in stock. But today he stated it is at the port and will be at the dealership next week. Which if he would have just said that to me in the first place I probably would have closed the deal today with the $365 a month. But since the story changed now that gives me more time to negotiate the cost down further. |
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08-08-2013, 06:29 AM | #20 |
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I calculated your lease with a cap cost before $1k build-out incentive at $35800 (invoice). If you take that, subtract the cap reduction that the dealer rigged up of $365 and then use the the $1k incentive, you end up at $362/mo, which is very very close to what you quoted.
Unless there's another $1k you haven't mentioned in there somewhere, that means you're paying invoice for the car and then BMW is helping you out with the build-out credit (that's the way I look at incentives). The $365 cap cost reduction is bit weird, but it's not that much money to have on the line considering. Yes, it's a good deal. |
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08-08-2013, 06:57 AM | #21 | |
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Sign & drive
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08-08-2013, 07:04 AM | #22 |
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Oh, sorry, I missed it but I see it now.
So your cap cost is $1k over invoice -- a little high for 2013 maybe, but it's not the worst deal ever. Basically, what's happening is the dealership is getting one of those incentive credits instead of you. If you paid invoice your monthly, with the MF and RV you originally quoted, would be $333. |
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