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Prices Paid: Buying & Leasing Experiences BMW 3-Series Prices Paid and Buying Experience
10316 messages, Last post on Dec 05, 2009 at 12:11 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: rebirth24 (Apr 12, 2007 3:44 pm)  peninsulite.com
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Hi, I've been drooling over the 335i coupe since its been released and have finally decided that life's too short without the car that you want. I've been reading the forums on and off and am trying to devise a plan to keep my monthly payments around $500/mo. I've already run senarios on the lease calculator and there are still some variables I'm unsure about and was hoping for some concerte answers from someone. Here are the specifics. -Calculated msrp: 48550 (premium, sport, nav, heated seats, power rear sunshade, manual trans, metallic paint) -Desired Lease length: 3yr 15k miles -If I assume I can get the car out the door after tax for the MSRP price, how much would that make my Cap Cost (tax 8.75% Bay Area, CA tax)? I calculated approx. 45000 (which is the invoice price). Is this a realistic price? -Second question: Since I live in N. Cali, can I make multiple security deposits (7, 8, max)? I am also willing to make a down payment. I'm just not sure how many security deposits I can and need to make and how much if any I need to down to achieve the $500 goal. Any advice or suggestions would be greatly appreciated. Thanks! |
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Hi Everyone, I am preparing to make my first offer on a 328i, and I prepared the following based on info I found in this Forum, as well as BMWUSA.com, Edmunds, LeaseGuide.com, and Bimmerfest. Any and all feedback is much appreciated! BMW 328i - jet black sedan w/ $775 Destination Charge Options: Sports Package, Steptronic MSRP: $36,050 (Edmunds) Invoice: $33,250 (Edmunds) Base Cap Cost Offer: $33,750 (Invoice + $500) Acq. Fee: $625 Doc., Title, and Reg. Fees: $500 (I am hoping this is a high estimate.) Disposition Fee: $350 Down Payment: $0 Adjusted Cap Cost Offer: $35,225 Lease Factors Term: 36 mo. Mile: 12k/yr Money Factor: 0.0014 Residual: 63% State Sales Tax: 9% (Louisiana) Monthly Payment: $467.28 ($428.70 + $38.58 tax, via LeaseGuide.com; 1st payment due at lease inception.) MISCELLANEOUS MSDs: I have spoken w/ 1 dealer, and he told me they no longer allow Multiple Security Deposits for reduction of the Money Factor. Security Deposit: I am allowing for a $350-$400 deposit due at lease inception, to be refunded at lease-end. (This aspect of the lease is not a major concern for me.) Income Tax Deductions: It is my understanding that Art. 162 of the Fed Tax Code allows an above the line deduction for the % of auto-lease-payments (excluding sales tax thereon) allocable to "ordinary & necessary" business expenses (and that the same rule applies for gas). Inasmuch as I would be using my 328i about 75%-80% for daily travel to and from work, and other work-related travel, over the term of my lease I could deduct up to $28,180 of my $35,225 adjusted cap cost. Assuming those deductions are applied to income taxed at a low, fictional rate of 22.5%, that allows for a tax credit equivalent of $6,340.50 - giving me an effective adjusted cap cost of $28,884.50. MORE MISCELLANEOUS Insurance: My auto insurance will go up about $200/yr with the 328i. Car Alarm: Does BMW offer an alarm on the 328i? I have not seen alarms listed as either standard or optional. Steptronic vs. Manual: Automatic transmissions have always irritated me - but the BMW I test drove had one, and it was pretty tight. I am only about 90% sure I want the Steptronic, so if anyone has a horror story, please share. Leatherette vs. Leather: I could not tell a difference. Jet Black vs. Metallic-Saphire Black: I could not tell a difference. Thanks in advance for any and all feedback and assistance. I'm pretty psyched about all this.
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Replying to: pepperjack (Apr 18, 2007 5:32 pm) 2) $500 over invoice? Doubtful. Realistically? $1200-$1500 over. But, it can't hurt to ask. 3) Tax deduction? Do you own a business? If not, commuting to and from your job is not deductible from your income. If you do own a business and lease a car, only a portion of the actual lease payments are deductible. You can't figure your expenses based on the CAP cost. 4) Alarm is optional and dealer-installed. But, the car is basically impossible to steal, unless it is towed away. IMO, not necessary. 5) Manual transmission is cheaper. Leatherette is cheaper. Jet Black is cheaper. Those three options add about $50/mo. to the lease payment. If you don't desire them, then don't get them. 6) MSDs not allowed? Maybe a Louisiana thing? If they stopped allowing them, that will be big news. I haven't heard that.
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Replying to: pepperjack (Apr 18, 2007 5:32 pm) http://fs.bmwusa.com/BMWFSPulp/VEHLEA_PaymentOptions.htm Also 500 over invoice is realistic, I got and other on this forum has as well, although I am in an area that BMW's are in avg car and plenty of dealers around. Also use the invoice numbers from cars.com they have the latest numbers that account for the march increase. |
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Replying to: kyfdx (Apr 18, 2007 7:36 pm)
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Replying to: tayl0rd (Apr 19, 2007 5:15 am) New York restricts the amount of security deposit to $750. Other than that, I've heard of no state where they aren't available. When a dealer doesn't want to do MSDs, it usually means one of three things: 1) They aren't familiar with the program 2) They are worried about it complicating their deal, and taking the customer's eye off the ball. Sometimes, when it comes to writing a big check, even if it is ultimately beneficial, customers start to get cold feet. 3) They are marking up the money factor, and don't want to get into reducing it by MSDs, as that will make it evident that they are profiting from the mark up. (this is probably the most common reason). If you want to do MSDs on a lease (and you don't live in NY), then just insist on it. regards, kyfdx |
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Replying to: pepperjack (Apr 18, 2007 5:32 pm) Here is a status update in regard to your comments: Disposition Fee: Thank you kyfdx. Originally I thought to include it up front, as I did, to get a sense of how much I would really be paying overall. However, if I made an offer that included the $350 up front, if I was not careful, I could have ended up paying the disposition fee twice. That would have really irritated me. Now I realize this is one more thing I need to be careful about. Base Cap Cost Offer: $500 over invoice is designed as an aggressive first offer. I expect it will be rejected. I will take this one step at a time, though under no circumstance - based on the purchasing experiences I have read - would I pay more than $1000 over invoice. Tax Deduction: I do not own my own business. I had heard that commuting costs are not deductible (as they are factored in to job acceptance decisions). However, I travel approximately 400+ miles a month for work aside from commuting (based on a sample of a 3.6 month period from 2 JAN 07, when I started work, to 18 APR 07). Accordingly, I would still be allowed a deduction of up to 40% of my lease payments (before sales tax) - correct, kyfdx? Alarm: I had read other people's complaints (I think on a Yahoo blog) regarding the lack of an alarm. It's reassuring to know it is not really an issue. (Also, just FYI, I checked with my auto insurer who indicated the addition of an alarm would only reduce my insurance by $10 a year. This also weighs in on the side of an alarm not being an issue.) Exterior, Interior, Transmission: The metallic paint and leather are not important to me. The transmission, however, may be. My gut is undecided so far - and if it stays that way, I will go with NO STEPTRONIC. However, the dealer I spoke with indicated it may take as long as 90 days to acquire a 328i w/o steptronic. That gives rise to three new considerations for me: (1) whether I feel like waiting that long; (2) whether I should consider ED - since I understand allowing 90 days for that entire process is a good standard, and that the cost savings are substantial; and (3) I need to start talking to other dealers. MSDs: Apparently, these are dealer specific. Thank you wrobbins8047 for the link to FS.BMWUSA, which provides: "The Multiple Lease Security Deposits: This option saves you money. You reduce your monthly lease payments, and you get the deposits back at the end of your lease. You can make up to 5 additional refundable security deposits. This option is not available with PrePay. MSDs are ltd by law in the state of NY. Ask your BMW center for more details." After reading that, I started snooping around to find out how much each of of the 5 allowed MSDs would reduced the MF. One source said that it was by .00005, and another said it was by .00007; so I called Vehicle Services 1-800-578-5000, who indicated it is entirely up to the dealer. This gave rise to 2 considerations: (1) I would be very happy to put up to $2500 towards MSDs to reduce the MF from 0.0014 to 0.00115; and (2) I need to start talking to other dealers. Cars.Com: I checked this website b/c wrobbins8047 indicated it incorporates March 2007 price increases. It shows that the base invoice price increased by $180, and is now $29,990; the invoice price of the options I want have not changed. See Cars.Com. Kelly Blue Book, which indicates its prices are current for March 2007, matches Edmunds. See KBB. I have not decided how this info will affect the adjusted cap cost ceiling I want to set. My first inclination is to make my initial offer of $500 over invoice by using the higher invoice listed on Cars.Com, but to retain the $1000 over invoice ceiling by using the lower invoice found on Edmunds and KBB. My second inclination is to do the exact same thing, but vice versa (e.g., offer $500 over the lower invoice data, but base my $1000 over invoice limit on the higher invoice data). In any event, a new question I have is: are Power Seats included in the Sports Package? I thought they were. BMWUSA.com and Edmunds indicates they are. However, they are listed as separate options on Cars.Com and KBB. Time is Money?: It recently occurred to me that I have probably spent 20 to 40 hours - maybe more - researching all of this in the hopes of saving a few thousand dollars. At some point, my direct savings in purchase price will balance evenly with the value of my time spent trying to save. I do not like to think about this too much!! Thanks again to everyone for your continuing assistance and feedback. Very truly, PJ
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Replying to: pepperjack (Apr 19, 2007 9:33 am) That's one caveat with KBB and Edmunds. They show a la carte options when they are part of packages; however, Edmunds does show the packages, too. In any case, I do believe power seats are standard on all BMWs nowadays. The definitive source will be the BMW website and your dealer. |
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Replying to: pepperjack (Apr 19, 2007 9:33 am) 2) MSDs: Last we heard.. 7 MSDs, with each dropping the MF by .00007 for a total of .00049.. The amount of each MSD is your payment, rounded up to the next $50 increment. 3) Power seats: Don't know about the new model, but in the old model 3-series, they aren't included with the Sport package... If you also get the Premium package, the seats are power... otherwise, they are manual. 4) Time is money? Spare time is FREE.. take all the time you want or need.
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