Last post on Dec 10, 2013 at 1:37 PM
You are in the Prices Paid - Buying & Leasing Experiences
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BMW 3 Series, Sedan, Wagon
#9285 of 12242 Re: Automatic on 2008 335I decreases dealer invoice by $1210 [liche90]
Oct 26, 2008 (4:51 pm)
Honestly, I wouldn't be surprised. BMW is getting away from the lease business where they leased their cars like banks did with mortgages. Now they ended up with a glut of cars which are worth far less than they took in lease payments. So to get away from this subprime market, they will have to offer rebates and low financing like the rest. They also plan to build and distribute less cars than before so they don't have to push cars out the door and suffer big losses on a car. I wish them luck. I bought my last BMW in 1994 and this is my second in 2008 so I'm not the kind of customer that keeps the money flowing to them,
#9286 of 12242 Re: Automatic on 2008 335I decreases dealer invoice by $1210 [sammybmw]
Oct 27, 2008 (9:10 am)
Honestly, I wouldn't be surprised. BMW is getting away from the lease business
For years BMW has been subvented their leases with artificial high residuals and much lower than market interest rates (i.e. the money factor). A majority of BMWs were leases so I also thought they were in the car rental rather than car sales business. While BMW couldn't compete based on price but by playing around with lease numbers, they could definitely compete on the monthly lease payment as other auto manufacturers choose their residuals and money factors based more on reality.
This finally caught up with BMW so now their residuals and money factors are just like everybody elses. Of course their monthly lease payments have gone up big time although they now seem to advertise low lease payments requiring a huge down payment. Many are now finding that BMW residuals are often lower than their competitors - a dose of reality for those who thought their cars had higher resale values than the competition.
#9287 of 12242 Is this a good deal
Oct 27, 2008 (9:12 am)
Buying it for: 35,900
Lease Terms: 435 a month plus tax (466 tax included), 12k, 36 months
0 down, 2600 out of pocket. First Month, tag, title, registration, dealer fee (bs) and bank fee (825) it seems all of the south florida dealers charge the bank fee, and a security deposit (first time BMW owner).
money factor: .0017
Should I do it?
#9288 of 12242 Re: Is this a good deal [jpcerni]
Oct 27, 2008 (11:28 am)
Its not too bad of a deal. maybe you can get like the dealer to pay for the "dealer fee"
#9289 of 12242 Re: Automatic on 2008 335I decreases dealer invoice by $1210 [drtravel]
Oct 28, 2008 (6:07 am)
Your observation is dead on. The next question is how long before the prices drop big time on the glut of late model returns and trade-ins that sit on the lot. The asking prices at dealerships do not reflect any concession to the economy or the oversupply of these cars. Who would spend 35-40k for a two-three year old 3 series? How long before they adjust their expectations?
#9290 of 12242 Re: Automatic on 2008 335I decreases dealer invoice by $1210 [jayrider]
Oct 28, 2008 (5:31 pm)
The asking prices at dealerships do not reflect any concession to the economy or the oversupply of these cars.
Depends on how much it costs them to keep cars on their lots and customer demands. If people are willing to overpay for a used BMW there is no incentive for them to change their asking prices. It always amazes me that people who earn enough money to buy a BMW or M-B don't seem to be fiscally responsible shoppers when it comes to their cars. It's like financial planners can't figure out the basics of leases ; ( Or maybe they don't mind throwing money away.
If someone pays the dealer's asking price for a two-year old BMW they will be in for a shock if they determine their car's true value in a few years - the depreciation will be incredible, especially after the warranty period. The fact that some BMW dealers are offering discounts for those who elect to purchase their car at lease end is incredible and shows that BMW does indeed understand the current financial situation. I guess those shopping for two-year old BMWs are making an emotional instead of a rational decision. IMHO!
A funny thing happened to me - I requested some quotes on an Acura a few weeks ago and one dealer adds dealer accessories that he charges $750 for to every car in stock. (I checked the Acura web site and could buy these accessories for $275). My response was that with the current economic situation this type of behavior was quite stunning bordering on the idiotic. He should be trying to get my business instead of trying to make another $500 in dealer profit. Told him he could throw these in for free and that I was willing to pay exactly zero for this package. He agreed but I informed him I was not interested in a dealer who was looking for any way to gouge the customer. It's a buyer's market - act accordingly!
PS For those asking about leases - I can hide my grandmother in a monthly payment. You need to know the MSRP, the capitalization cost (i.e. purchase price), the down payment (preferably zero) and the money factor used to determine whether it's a good deal or not. Concentrating on the monthly payment is a tried and true method for car dealers to confuse you and extract as much $$$$ from your bank account as possible. But it seems to work!
#9292 of 12242 attitude adjustment [drtravel]
Oct 29, 2008 (7:23 am)
The 3 & 5 series BMW's are stunning cars. Beautiful lines and wonderful interiors. They drive like dreams. They have big emotional potential for those looking for more that just a ride. Oh yeah, did I mention status. The dealers are aware of that customer base and still believe there are enough of them to warrant business as usual practices. If they can swing it , more power to them but when the supply of goodies exceeds the demand something has to be resolved. I suppose that if new 08's are still on the lot 1-2 years from now, there actually might be an attitude adjustment.
Oct 29, 2008 (9:18 am)
Which BMW model did you recently lease? I know the money factors on some 2008 3 Series models are only 0.00075 through the end of the month. Tempting.
#9294 of 12242 Re: Hey KYFDX!! [hpowders]
by kyfdx@Edmunds HOST
Oct 29, 2008 (10:46 am)
.00125 MF, and killer residuals..
It's for my wife... and exactly what she wanted, so just dumb luck that they have good lease deals at the same time..