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Prices Paid: Buying & Leasing Experiences BMW 3-Series Prices Paid and Buying Experience
10277 messages, Last post on Nov 09, 2009 at 7:16 AM
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Replying to: sammybmw (Oct 26, 2008 4:51 pm) 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.
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2008 328i MSRP 39,800 Invoice: 35,740 Buying it for: 35,900 Residual: 58% 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?
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Replying to: jpcerni (Oct 27, 2008 9:12 am) |
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Replying to: drtravel (Oct 27, 2008 9:10 am)
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Replying to: jayrider (Oct 28, 2008 6:07 am) 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!
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Replying to: bahn (Oct 26, 2008 5:13 am) http://www.bmwusa.com/Standard/Content/FinancialServices/FinancingOffer/2008335i- SedanAPR.aspx i am betting they will extend and probably enhance incentives over the next month.
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Replying to: drtravel (Oct 28, 2008 5:31 pm) |
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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.
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Replying to: hpowders (Oct 29, 2008 9:18 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.. 
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Replying to: soupcon (Oct 28, 2008 11:37 pm) |
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