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Prices Paid: Buying & Leasing Experiences BMW 3-Series Prices Paid and Buying Experience
10325 messages, Last post on Dec 08, 2009 at 12:50 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: misterep (Jan 12, 2007 6:31 pm) Is it that bad? really? how much better do you think I could have done?
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Replying to: bmwpanic (Jan 12, 2007 6:01 pm)
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Go to leaseguide.com and read up on leasing before committing to a lease. 1. You always negotiate the sale price of the car - even on advertised specials. You can usually drop your payments significantly. 2. Negotiate the MF - make sure the dealer is getting only 1 or 2 points over the base. Some profit is fair, naturally. |
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Replying to: ili5 (Jan 12, 2007 7:29 pm) Once you have agreed to a reasonable price for the vehicle, the next step is you how you will finance the purchase -- lease, loan, or cash. The final step, is to discuss your trade-in (if applicable), which would ONLY relate to your down payment on amount financed. If a dealer inquires upfront inquires whether you have a trade-in, plan to loan or lease, or montly payment you desire, respond that you have not made any decisions. Further, those items relate solely to financing the vehicle, not price of vehicle which has yet to be discussed. For myself, I just send a email to the dealership's Internet sales manager with my proposed terms: car color and options, price willing to pay, finance terms including down payment and interest rate, and resulting monthly payment amount. I then ask a simple question -- will you agree to these terms? I only want a yes or no -- not talk with manager or anything else. This has worked with the purchase of my BMW and wife's Acura. Happy Hunting! |
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Okay - so being a little anal when it comes to anything that has anything finance related (maybe the Investment Banker in me) I took a few days off work, or more appropriately got distracted from work, to learn about leasing and get a good deal. Here's my experience and tips of getting a good lease: ++ First, IGNORE the monthly payment -- that can easily be manipulated. If you harp on a certain number (say under $500/month), the dealer will find a way to get there. ++ Get a printed sheet of the invoice price of the car with options and then go to the dealer. Both of you should be talking the same MSRP number. Do not rub the invoice price into him/her -- personally, I see it as an insult when someone wants something from me at my cost and expect me to give them service. Some cars do sell for under invoice given company rebates. At this time (Jan 2007) I don’t think BMW is offering any known rebates other than volume/target bonuses to dealers. ++ For the 3-series a price $1000-$2000 above invoice or midway between Invoice / MSRP is a good number. A couple of hundred here or there...let the dealer win this round - get them on the next one. ++ Money Factor: Okay so here is where you want to get the best deal. BMW's going money rate for lease specials in 0.0011 with $600 deposit and $625-$900 acquisition fee -- do not capitalize this fee (i.e. add to lease payments) as it will increase the MF. (Also see MF Tip below) Note: After speaking to 7+ dealers, only 3 dealers had this MF of 0.0011. So ask your dealer what they are using to compute, some charge higher to make more $$$. ++ Residual Value (RV): You can't change this - this is set by the company. It's 58% for the Coupe, 61% for the sedan assuming 15K/3 yrs miles. For 12K add 1% for 10K add 3%. 24 month leases are about 10% higher. Example: Coupe 10K/2y - 71% (68+3) Coupe 15K/3y - 58% Unless you go to a private leasing company which may give you a higher RV, this is nearly impossible to change (only do this if you're buying 2 or more - otherwise stick with BMW finance). ++ Money Down - A really bad idea, IMHO. Just incase something happens to the car - gets stolen or totaled chances are you're out the down payment -- this is also how the monthly payment can be manipulated. Instead pay an additional Security Deposit (See MF tip below) ++ Other Stuff - I would highly recommend Tire & Rim insurance if you live in a city (I'm in New York). Hitting pot holes, getting slashed, excessive wear an tear is covered. On a 2 yr lease, it's a toss up. On a 3 year I would lean toward it. Capitalize this amount in the lease payment (again if the car gets stolen you don’t want to have paid this upfront). Finally, get a lease calculator and plug in these values. A good lease calculator is: http://www.leaseguide.com/calc.htm In summary (and some Tips): 1. Know the invoice and MSRP. A price midway is a good point for the 3-series. This is the first of the two important variables you need to negotiate. 2. Get the lowest Money Factor (MF). This is the second and most important variable - you want this to be the lowest you can get. Tip: BMW has a program whereby paying additional security deposits you can reduce the MF by 0.00007. You can pay 6 additional deposits (+ the required one). This will make the MF 0.00061 (Lowers the monthly payment nicely - SWEET!) You do get the Security Deposit at the end of the lease. 3. Always go for no cash down expect for the Security deposit(s), Title, registration, acquisition. Tip: I see no reason paying sales tax upfront when I could apply that money towards a deposit and reduce the payment and pay the sales tax monthly. (Folks in Illinois may not have this option) Hopefully, this gives you a good idea of what factors affect a lease and helps you make an informed decision. Oh..what did I get: 328xi Coupe with Performance, Cold package, comfort access, steptronic, park distance monitor. MSRP: 44,185 Invoice: 40,685 Negotiated price (Implied for the lease): $42,235 Tire and Rim warranty: $645 (capitalized) Acquisition: $625 Monthly Payments: $535 with 8.25% tax included. 3yr/30,000 miles |
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Okay - so being a little anal when it comes to anything that has anything finance related (maybe the Investment Banker in me) I took a few days off work, or more appropriately got distracted from work, to learn about leasing and get a good deal. Here's my experience and tips of getting a good lease: ++ First, IGNORE the monthly payment -- that can easily be manipulated. If you harp on a certain number (say under $500/month), the dealer will find a way to get there. ++ Get a printed sheet of the invoice price of the car with options and then go to the dealer. Both of you should be talking the same MSRP number. Do not rub the invoice price into him/her -- personally, I see it as an insult when someone wants something from me at my cost and expect me to give them service. Some cars do sell for under invoice given company rebates. At this time (Jan 2007) I don’t think BMW is offering any known rebates other than volume/target bonuses to dealers. ++ For the 3-series a price $1000-$2000 above invoice or midway between Invoice / MSRP is a good number. A couple of hundred here or there...let the dealer win this round - get them on the next one. ++ Money Factor: Okay so here is where you want to get the best deal. BMW's going money rate for lease specials in 0.0011 with $600 deposit and $625-$900 acquisition fee -- do not capitalize this fee (i.e. add to lease payments) as it will increase the MF. (Also see MF Tip below) Note: After speaking to 7+ dealers, only 3 dealers had this MF of 0.0011. So ask your dealer what they are using to compute, some charge higher to make more $$$. ++ Residual Value (RV): You can't change this - this is set by the company. It's 58% for the Coupe, 61% for the sedan assuming 15K/3 yrs miles. For 12K add 1% for 10K add 3%. 24 month leases are about 10% higher. Example: Coupe 10K/2y - 71% (68+3) Coupe 15K/3y - 58% Unless you go to a private leasing company which may give you a higher RV, this is nearly impossible to change (only do this if you're buying 2 or more - otherwise stick with BMW finance). ++ Money Down - A really bad idea, IMHO. Just in case something happens to the car - gets stolen or totaled chances are you're out the down payment -- this is also how the monthly payment can be manipulated. Instead pay an additional Security Deposit (See MF tip below) ++ Other Stuff - I would highly recommend Tire & Rim insurance if you live in a city (I'm in New York). Hitting pot holes, getting slashed, excessive wear an tear is covered. On a 2 yr lease, it's a toss up. On a 3 year I would lean toward it. Capitalize this amount in the lease payment (again if the car gets stolen you don’t want to have paid this upfront). Finally, get a lease calculator and plug in these values. A good lease calculator is: http://www.leaseguide.com/calc.htm In summary (and some Tips): 1. Know the invoice and MSRP. A price midway is a good point for the 3-series. This is the first of the two important variables you need to negotiate. 2. Get the lowest Money Factor (MF). This is the second and most important variable - you want this to be the lowest you can get. Tip: BMW has a program whereby paying additional security deposits you can reduce the MF by 0.00007. You can pay 6 additional deposits (+ the required one). This will make the MF 0.00061 (Lowers the monthly payment nicely - SWEET!) You do get the Security Deposit at the end of the lease. 3. Always go for no cash down expect for the Security deposit(s), Title, registration, acquisition. Tip: I see no reason paying sales tax upfront when I could apply that money towards a deposit and reduce the payment and pay the sales tax monthly. (Folks in Illinois may not have this option) Hopefully, this gives you a good idea of what factors affect a lease and helps you make an informed decision. Oh..what did I get: 328xi Coupe with Performance, Cold package, comfort access, steptronic, park distance monitor. MSRP: 44,185 Invoice: 40,685 Negotiated price (Implied for the lease): $42,235 Tire and Rim warranty: $645 (capitalized) Acquisition: $625 Monthly Payments: $535 with 8.25% tax included. 3yr/30,000 miles
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Hey guys, love this website! I am looking at a 3.28 with automatic transmission and seat heater. Anyone has has good experiences with local dealerships? What price should I pay? i think MSRP is around 35K. Thansk! Adam- 
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Guys, do anyone know how long it takes for a car to go on the vessel, trains etc to get to so. cali? The dealer told me roughly 6 weeks to get to their dealership. I thought it was quicker then this. Does the vessel dock on the east coast and the cars gets train into so. cali?
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Replying to: tcn2k (Jan 14, 2007 11:04 pm) |
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I just negotiated my first lease on a 328i coupe, auto. trans. w/ premium and sports packages and navigation. I'd appreciate any input as to whether you think I got a decent deal: MSRP $43995/Invoice 40450 Negotiated $42588 Bank (acq.) fee $625 BPA fee $28 Cap Cost 43241 Cap Reduction (trade in) 2416 Adjusted Cap Cost 40824 RV 60% MF .00140 Tax 8.25% Total monthly payment = 535 including tax. I received $3500 for my trade-in which was actually more than I expected, considering that I heard BMW typically ripped people off with trade-ins. To me this made up for the mediocre deal they gave me off the MSRP of the car. The rest of the trade-in money covered license tax registration and first month's payment, so I paid nothing in cash out the door. For me this also validated the deal. A few questions: 1. Is it typical to capitalize the acquisition fee instead of paying cash? 2. I always thought a lease requires a deposit (I didn't have to pay one)--is this correct? 3. Did I get ripped off on the MF? I couldn't get them to lower it to .00125 or .00130 even though I had good credit. Thanks for any input. |
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