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Prices Paid: Buying & Leasing Experiences BMW Z4 Lease Questions
613 messages, Last post on Dec 07, 2009 at 6:31 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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If I run your numbers, it looks like $37,805 is the CAP cost (amount financed, sort of)... If your due at signing is around $1700 and that amount does not include a security deposit, then it probably equates pretty close to the selling price... and, with tax, I get your payment almost exactly... Here is what I would be looking for: $39,995 MSRP $36,505 Selling price (invoice.. dealer makes $1800 profit) Actually, I'd shoot for lower than this, but any dealer should be happy with this number.. $37,130 CAP cost (selling price + $625 acq.fee) 2yr/24K lease .0009 money factor 71% residual Payment = $423/mo.+ tax = approx. $456/mo. Due at signing: 1st payment ($456), security deposit ($500), title/license fees (approx.$400). Approx. total = $1350 Really.. .this is still a very fair deal for the dealer.. If you could get a selling price of $35,700 ($1K profit), the payment would drop another $35/mo. Now, to the big question... Can you negotiate further? It might be hard with this dealer... You can lay your cards on the table... Tell them you found out about the $1800 in dealer cash.... and that the money factor is marked up the maximum, etc, etc.... They might be willing to re-work it. But, you've probably got to be willing to walk, and start again with another dealer. It doesn't mean you'll have to, but the option has to be there, if you are going to get them to budge.. regards, kyfdx Host-Prices Paid Forums Hey Car_man.. Sorry for hijacking your forum.. you know how I am with BMWs.. 
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Please give me some figures with my scenario as explained in post #196. I am going to the dealer this week to place my order. Need your help.
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Replying to: dagsz4 (Jun 14, 2006 4:06 am) $44,195 MSRP $40,280 Selling price (invoice) $40,905 CAP cost (selling price + $625 acq.fee) 3yr/30K lease 60% Residual .0009 MF Payment = $461/mo. + tax.. Due at signing = 1st payment ($500), security deposit ($500), title/license fees (approx. $400) = approx.total $1400. Although I don't recommend it, if you put an extra $2600 down (making $4K total due at signing), then the payment would drop to $386/mo. + tax.. Just an FYI.. the 2yr/20K lease payment would actually be a little lower... $444/mo. plus tax, in the first scenario.. These numbers all assume an $1800 gross profit for the dealer (the amount of the dealer cash on this model). Hope this helps.. kyfdx Host-Prices Paid Forums
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Car Man and kyfdx, You two are awesome. I have really learned a lot reading your posts and I hope others appreciate you as much as I do. I have never leased a car before. I normally buy cars 2-3 years old and keep them a long time, but my wife wants a new fun car. Dealer raved about incredible lease deals on the Z4 through June 30. Picked out the Z4 I wanted and was quoted $676 a month for 36 months / 15K per month. Based on your input, it sounds incredibly high based on the lease calculator I tried, but wanted to run these by you to make sure I am correct. It seems the dealer didn't take as much off the MSRP as he should have - I only think he deducted $2200 or $2500 in the calculation. Here goes: MSRP - $44,595 therefore the invoice is $40,685 - I should pay no more than that because of the $1800 mfg. dealer cash (and probably less! - I used $40,700 to be conservative) acq cost - $625 adjusted cap cost - $41,325 36 month / 15K / yr - 57% per cent residual value (not sure if this is correct) for a final value of $25,419 money factor - I think he used .0013 - but I should be using .0009 right? sales Tax - Arlington, Texas - I think the local rate is 8.25% total due at signing - first and last payment I calculate the payment to be $543.31 - Is this correct? If so, he is $133 a month too high! and you may have saved me $4800. If not, where did I go wrong and what is the correct payment amount? Thanks again for your help!
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Replying to: txranger1 (Jun 14, 2006 11:03 pm) But, check into how the tax is calculated.. Sales tax in Texas is usually levied against the entire selling price of the car, not just the monthly payments.... That can easily double (or more) the amount allocated for taxes. It is also entirely possible that they are using a higher selling price than invoice, even probable... regards, kyfdx |
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Replying to: kyfdx (Jun 14, 2006 4:02 pm) |
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I think you are correct about the taxes being on the full amount up front in Texas. My dealer made some comment that seemed to equate the money factor to the taxes. In other words, I would potentially get a better money rate if the taxes were paid up front. Is this legitimate or should I expect the .0009 rate reagrdless. They definitely used a price higher than invoice. I talked to a friend who bought a stripped down Z4 in April and was pumped about getting $1500 off the MSRP. I didn't mention how much I expected to get off MSRP (almost $4000) I am now heading into this negotiation with a completely different mindset. Thanks again for the rapid response. |
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Replying to: kyfdx (Jun 13, 2006 3:57 pm) Many thanks for your help!!! So I took all the printouts including calucations to a different dealer yesterday just to get a quote from him. As expected he immediately didn't agree on the .0009 money factor rate, telling me that this rate is fixed to .00145 by the "bank" and couldn't adjust it. I can tell he was full of BS. We did negotiate for a while but his manager still wouldn't lower the rate to .0009. My question to you is: Where can I find documents to back me up to show him that this is indeed negotiable??? Thanks again!!!! This will be my first lease so I really appreciate all your helpful advice.
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Replying to: tee7788 (Jun 15, 2006 10:52 am) All you can do is vote with your feet.. The key to negotiation? You have to be willing to walk, introducing some competition.. But, check around for inventory.. My local dealer only has four units...
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Replying to: kyfdx (Jun 15, 2006 11:53 am) |
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