Last post on Apr 02, 2008 at 7:01 AM
You are in the BMW M/M3/M6
What is this discussion about?
BMW M3, Coupe, Convertible
#110 of 204 Ques. re: Leasing
Jun 16, 2006 (6:02 pm)
Hello everyone. First, thanks for all the info - I'm truly learning a lot. I've always wanted a BMW and finally at the point where I can "afford" (i.e., struggle but get it) one. Here's the deal I was offered on a 2006 M3 convertible:
Money factor - .0031 (i might be missing a zero but its definately .something 31)
MSRP - 62,500 (I've checked on Edmunds and w/the features it comes w/that's the correct MSRP)
10,000 miles a year (all I need)
The woman doesn't seem like she'll budge all that much re: price. From reading other BMW posts it seems you can really get it down to about 1,700 over invoice, but when I ran the M3 on edmunds it said folks are pretty much paying MSRP. Is this true? If not how much should I expect to pay over invoice. I live in NY - shopping in LI and NYC.
All in all came to about $1,025/month lease for 36 months and about 5k due at signing (3k of which was taxes - fun)
Also, I'd much prefer a hard top but does anyone know if / when these will be available on M3's?
Again, thanks for all the help everyone in your posts. Please let me know your thoughts re: my lease offer and also anything else that I'm too new to know to ask about.
Best of luck !
#111 of 204 Re: Ques. re: Leasing [glkatz]
Jun 16, 2006 (6:47 pm)
TMV on edmunds really isn't that accurate. You can get as much better deal. The good thing about your lease is that the .00310 is the correct buy rate (money factor) for an '06 M3 Convertible with you 36 month/10K per year lease. The bad part about it is the upfront money and of course the cost. $5,000 is a lot of money to pay up front on a lease. Roll your taxes into the payment. If the car gets totalled or stolen an hour after you take delivery, good luck getting your money back from Gov. Pataki. Your only up front costs should be $625 bank fee (sometimes the dealer marks up this fee by $200, 1st month's payment, & security deposit. Given the competition and so many dealers in the NYC area, unless you're buying a Supercharged Range Rover Sport, M5, M6, Ferrari, or Mini you shouldn't be paying MSRP.
Call around to different dealerships. Sit on her offer and let her know that you won't pay MSRP for the car. Pick a number that you're comfortable. Give her a hard number, not $1500 over MSRP or whatever.
What dealership are you shopping at?
#112 of 204 Re: Ques. re: Leasing [nyccarguy]
Jun 17, 2006 (5:30 pm)
First - thanks for taking the time to respond - I really appreciate it. A couple of questions - how does "rolling" the tax payment into the lease work? I just want to know how to "argue" for it. Being new at this I just thought my pmts to BMW are one thing and the tax is just like if I bought a t-shirt (to a much larger extreme) and the money goes to NYS - didn't know I could roll it into the pmt.
I'm definately going to call around. I'm dealing w/a dealership in Huntington, LI. I actually work on Wall st and the dealership there is so much more helpful and friendly. They're not there on weekends so I'll discuss w/them monday. You'd think on Wall st they'd try and rip you off but I had a great feeling from them / pricing on the 330xi I orginally wanted.
Any idea as to what would be a "reasonable" agreed sales price for a $63k M3 convertible? I dont want to get ripped off but dont want to get laughed at either.
Also, I know this is a BMW forum, and that's the car I've fallen far, but a not so distant 2nd was the CLK convertible. Any thoughts? I'm going w/the BMW - just wondering if folks agree.
Thanks again for your time - it is very much appreciated.
#113 of 204 Re: Ques. re: Leasing [glkatz]
Jun 17, 2006 (6:48 pm)
If you tell me what options are on the M3 you're looking at then we can look up the invoice and we'll work out a selling price, then use the bmw money factor, and your tax rate (you live in Nassau or Suffolk & what is sales tax there?) to figure out what your payment should be.
#114 of 204 Re: Ques. re: Leasing [nyccarguy]
Jun 18, 2006 (5:18 pm)
Again, thank you for your help. The specifics as to the M3 convertible are as follows (some may not be needed but I figured I'd tell you everything I know):
1. Metallic paint
2. Leather interior
4. Xenon headlights
5. Rear airbags
7. Harmon sound system
I've been told MSRP is approx. $63,730 (including a dest. charge of $695).
The sales tax in NYC is 8.375%
10,000 miles a year lease / 36 months
.0031 Money factor (again might be messing up the number of 0's).
Also, if you can explain to me how "rolling" the tax into the pmt works I'd appreciate it.
Again, I can't thank you enough for your help - it's great knowing there are folks out there taking the time to help make sure those who really love and desire a BMW, but aren't as educated on the topic, obtain the best possible deal. Thanks!
#115 of 204 Re: Ques. re: Leasing [glkatz]
Jun 18, 2006 (7:43 pm)
Gabe - I worked up some numbers for you based on the options you provided for me:
MSRP: $65,030 (Includes $695 destination & $1,300 gas guzzler tax)
Invoice: $59,535 (Includes $695 destination & $1,300 gas guzzler tax)
Leasing is just like buying a car. You negotiate the price of the car first. $1500 over dealer invoice is a fair deal on an M car. The number I want you to shoot for is: $61,035 (start $500 lower & work your way up). This is the capitalized cost of the lease.
For 36 months with 15,000 miles per year the base money factor (lease rate) is .00310 (which you have been given) & residual value is set at 56% (this is set by BMW FS & cannot be marked up by the dealer).
You will not "put money down" which means maken a capitalized cost reduction.
This car should cost you $1068.50 per month for 36 months including NYC sales tax of 8.375%.
Your total amount due at signing is $625 Bank Fee (they might try to mark this up by $200), First month's payment of $1068.50, & a Security Deposit of $1100.00 (I think).
You want to roll (include) your taxes INTO the lease payment instead of paying them upfront. Like I said previously if you pay the taxes upfront and your car gets stolen the night you pick it up or totalled driving out of the dealer's lot good luck getting that money back from Gov. Pataki. This is also the reason you don't make a cap cost reduction on a lease (just change Gov Pataki's name to BMW Financial Services). Good luck! Let me know how you do.
#116 of 204 preperation
Jun 25, 2006 (9:44 pm)
I presume the last several posts are referring to the current M3 since the next M3 is expected to come out, according to what a sales rep told me this Saturday, some time early 08, late 07. Quite some time from now. How accurate is this prediction??
I think it's fair to say that many 06 330i 3/yr lease goers may consider the M3 when their lease is up mid 08 time-frame. That is, I'm probably not the only one. Having never bought or leased a car like this, I'd appreciate some useful hints on how to go about getting the car I want, (08 M3 with all the options/colors), when I want it, (when my lease is up in 1.8 years), and for how much I want to pay for it, (a fair price).
I'd really appreciate some hints on how to prepare. For example, do I really need to put 1G down to get on a waiting list as a dealer highly recommended? Do waiting lists restrict ability to get a fair price? Furthermore, should I be grateful at the dealer's "generous" and noble oath to "only" charge MSRP? Or will there be room for negotiation? I really don't like to haggle, but if I can get a better deal with little or no more stress compared to on-line vendors, such as carsdirect.com, I'm more than willing to try. Another thing I'm concerned about is whether or not I'll have the skillz to really enjoy all that an M3 has to offer. I'm seriously considering participating in a local BMW's performance driving school.
Lastly, I've leased this 330i because I thought I'd want, well,..more. I was right. Furthermore, I've heard that BMW's costly repair requirements, due to costly German parts and less than stellar 3 series reliability after 4 years, make leasing attractive. With an M3 however, I'm sure my sports car appetite will be satisfied. I am curious about M3 quality/reliability. What do repair costs after 4 years look like for an M3? Should I buy or lease the 60-65k beast considering this will probably be my only/last sports sedan before I get married and have kiddies. say hello to Honda Odyssey nooo!!
Thanks for all advice in advance,
#117 of 204 Re: preperation [jmaroun]
Jun 26, 2006 (7:03 pm)
We have been talking about the current e46 body style M3. Gabe, how did you do btw?
Just to make a few points:
The M3 isn't a "step-up car" like you say. many people "step up" from a 325i to a 330i or from a 330i to a 530i... The M3 is a different animal. It is designed to be an all out sports car. Not for the timid at heart
What you pay is up to you. I could car less about being the first on the block with the new "hot" car. I wouldn't pay $1,000 just to get my name on a waiting list. But what do I know? I'm not in the market for one of these amazing machines (I have a customer who told me today he got a good deal on an '06 Shelby GT500 Mustang because he only paid $15K over sticker). How well they sell depends on the economy. Back in '01 when the current M3 was introduced, people were paying $10K over sticker.
Do you have a 330i now? When your lease is up, there will be a Twin Turbo (300hp/300 lb-ft) 335i Coupe/sedan available.
#118 of 204 learn some respect
Jun 26, 2006 (10:54 pm)
Thanks, but No Thanks for that load of advice.
I'd appreciate advice from people who can at least
respect the question and not make assumptions about
the person asking the question.
Firstly, I'm seriously considering an M3 when my lease is up.
Secondly, I'd appreciate constructive advice on how to get one. Preferably from experienced buyers and not from the indifferent and especially not from a biased sales rep!
I hope there will be better advice out there cause I'd sure appreciate it.
San Diego, CA
#119 of 204 Re: learn some respect [jmaroun]
Jun 27, 2006 (3:31 pm)
I'm not a biased sales rep at all I'm not in the car business at all. I thought I answered your question constructively and honestly. My customer that is buying the Shelby GT500 Mustang certainly isn't buying it from the plumbing supply house I work at. He is buying it from a Ford dealership. I do not advocate buying ANY car for one cent over MSRP (or even at MSRP).
If you want a new M3 and have to be the first on the block to have it, then go and pay money to get on a waiting list.
If you can be patient and wait (maybe extend the lease on your 330i). Maybe that sounds like your best option since you sound like you want to keep the car for a long time. I LOVE BMWs (and hope to own at least one further down the road). The M3 is a high performance sports car with a free revving engine and tightly wound suspension. The new V8 will be a derivitave of the current E60 M5's V10 and may have some teething problems. The current E46 M3s had engine problems (I can't recall exactly what) during their first year of production.
As for buying vs. leasing, since BMW will sell every single one of these with no problem don't expect any lease support in the form of a low lease rate (money factor) or pumped up residual value. A loan payment might be the same as a lease payment. Example: A $50,XXX dollar 530i will probably have a much lower lease payment than an M3 with a similar sticker price given the mileage allotment & term of lease are the same (say 3 years 15,000 miles per year).