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2013 and earlier BMW 7-Series Lease Questions

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  • What you were told is correct, miamivicing. If you order your new car you can lock in the current lease program that is available on it and take advantage of either that program or the new one that is available when your car arrives if it is better. You cannot however mix and match different elements of the two programs. So, for example if BMW was to introduce an additional cash incentive on the 2013 7-Series, you would not be able to use that cash and the old lease program...you would have to use the new rates and residuals.

    It's difficult to predict what automakers' future incentives programs will be like, but if I had to make an educated guess I would say that BMW's programs for December are likely to be fairly aggressive because they will likely be in a battle with Mercedes-Benz to see who sells the most vehicles for the year in the U.S.

    Car_man
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  • Thanks for your input. I understand these guy's need to make $, but not at the cost of a good customer (especially when I told the guy that I 'll also likely be getting my wife a 3 or 5 series in the coming weeks which is true). Sales tactics don't need to be fraudulent to be effective, but whatever, it all comes back to you.

    You are right, the current terms can't get worse. I'll order the car by the end of the month, ensure I get the lowest number over invoice (which now is about $750, which I know for sure I can do better) and play the time game to see what benefits me most by the delivery date (after first week of Dec.). No matter what, the cap cost and residual won't change, which is most important. In looking at last year's deals on 7's, it appears the option $ is anywhere b/t a better MF (.00091) or $2.5k-$5k, which won't change much if the M kit option is taken away. I appreciate the info.
  • Car MAN: Do you know what the factory holdback usually is for a 7 series? I know this usually comes in the form of a %, and since the salesman is crying about the dealership not making money except for any number over "invoice", I would like to tell him what I know the dealership gets on the back end. Also, on a 7 series that needs to be ordered, what number above invoice (as listed on Edmunds) should I be happy with accepting?
  • Hi miamivicing. Edmunds has an article about dealer holdback here:

    http://www.edmunds.com/car-buying/dealer-holdback/

    According to the article BMW technically does not have dealer holdback. Having said that, I'm sure that there is some back-end money that they get kicked back from their manufacturer...they just call it something else. Regardless of how much money the dealership is getting kicked back to it, you as a consumer are ultimately going to have to pay what the market dictates for the car that you want. I suspect that if you are in an area that has a decent level of competition that's probably $500 to $1,000 over invoice minus any available cash incentives at best on a new 7, but I am not intimately familiar with the market for it.

    2013 7's have either $1,500 to $2,500 dealer cash or a free M Sport Package on them right now.

    Car_man
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  • Miamivicing,
    I'm looking for that $700 credit voucher for bmw iPhone/iPad that you mentioned but can't find it. Please let me know how you found it.
  • I printed it off the BMW experience app on my ipad. I believe it is only valid through 9/30/12, so check quickly. Another thing, you need to type a salesperson name and dealer to get it, so make sure you have a person/dealership who you are buying from.

    Just an fyi, what I did is I am having the car built and locking in this month's deal and waiting for 1st week of Dec to take delivery to get the better of either deal. Let's see.

    GL!
  • kath0kath0 Posts: 3
    edited October 2012
    Hello there,

    I just preordered a 750i with the Executive package and the B&O sound system. We negotiated a fair price for it but I got nothing in writing before the order went in. When I asked about things like the MF on the lease, they said it could "get better" by the time the vehicle comes in December. I am concerned because there is nothing given to me other than an email agreeing to the monthly payment for the lease (3yr, 10,000mi/yr).

    Can I have the rates for the leases for Oct please so I have some idea of what they probably gave me and I can compare to what there will be out there in December? Can I ask for any paperwork in writing now? One of the parts of the deal was that I would trade in my current lease (not a BMW) as the "downpayment" for the new lease.

    BTW, I did shop around with 2 other dealers.

    Thanks, Kit
  • miamivicingmiamivicing Posts: 10
    edited October 2012
    No need to worry about price as you can always just walk away (and get your money/downpmt back if you gave one). The good thing is that you ordered the car you want, custom if you will; so when it comes time to buy, the exact car is there. However, it's not good that the salesman only emailed you the monthly lease payment, since it's transparent that he wants you to focus on that number and not the adjusted number once the better rates for Dec come in, with the hope that you will still pay that same monthly amt that you agreed to and he can pocket the difference b/t that current number and that adjusted one with the new Dec MF/interest rate. Always distrust these guys, they are out to make a killing!

    If I were you, I would simply wait until 1st week of Dec, after the car comes in and walk in and renogotiate EVERYTHING (tell him to forget the past numbers or else you walk out). Rebuild your car on Edmunds and from the "invoice" number substract all incentives you can find (on Edmunds and elsewhere) and multiply by .04. An offer of 4% profit is more than reasonable (that is of the truest/most accurate dealer invoice, and I say this b/c we will never know the true amt in cash back and other manufacturer to dealer money there is to compute the actual dealer invoice). Now that you know what you should pay, compare it to what you agreed to before to see if you are near that number.

    If I am not mistaken, the current rates equal a 3.5% interest rate (.001458 MF x 2400), which is bad. I believe this is where a lot of manufacturer to dealer money will come from (even though the salesperson will BS you saying that they could mark up this interest rate/MF but won't and "save you" money here - this is b/c BMW Fin. already does that for them). You need to see the big picture to see the sales scam. But last Dec, on 7's, I believe they had a 0.9% or $5K in option money, whichever you chose, which I is where you get the good deal. Let's see what this Dec brings - no one knows this now, so don't bother looking. Just wait until 1st week of Dec and then make your decision, which is exactly what I am doing.

    Also, don't let that whole sales gimmick work your head, i.e. seeing "your" car "in production" (getting you to feel as though your car is already yours). The sales pitch/scam is an entire experience. However, I will say I do love the dang car. Just don't let your emotion allow you to buy a bad deal.

    GL!
  • I'm ordering a 750 with a lot of bells and whistles. Can I still walk out without penalty when the car actually arrives? Another question: I negotiated a great price bu the residual value is being computed from the MSRP and not from that price - is that how it is?
  • As long as you didn't sign anything that says "non-refundable" down payment, you should be able to walk out.

    The residual price is always calculated by using the actual MSRP, which is a good thing. The higher the MSRP used, the lesser the difference b/t the residual value and the actual cap cost, which translates into lower monthly payments. Remember, lease payment is generally cap cost - residual value + interest / # of months + tax.
  • kath0kath0 Posts: 3
    Thanks for the replies. I will try to be patient and see what December brings!
  • I am getting MF based on 3.29% with provision to accommodate anything better in the next 90 days - fair isin't it? Please provide expert opinions
  • Hello Kit. BMW Financial Services' October buy rate lease money factor and residual value for a 36-month lease of a 2013 750i with 10,000 miles per year are .00135 and 58% for consumers who qualify for its top credit tiers.

    Car_man
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  • Hi nother1inlin. BMW Financial Services' current buy rate lease money factor for most models is .00135. That's equivalent to an interest rate of around 3.24%. On an ordered BMW, you can lock in the lease program that is available at the time that you placed your order and then use either that program or the one that is available at the time of delivery, whichever is better. Which is a good thing because I suspect that BMW's December programs will be fairly aggressive because it is in a dog fight with Mercedes-Benz for the U.S. sales title.

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  • A dealer is offering me 2K below invoice but the money factor they want to use is .00175 - is that fair?
  • Hey nother1inlin. Is this a 2013 model? Is it equipped with the M Sport Package? I'd say that $2,000 below invoice plus that money factor is reasonable for a '13 without M Sport...though I would still prefer that the dealer use the buy rate whenever possible.

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  • It is 2013 with M sport (no cost option). Vehicle in stock - please advise if I should order and wait 8 weeks for delivery to lock in a better money factor (possibly) but the price will then be at invoice and no less
  • kath0kath0 Posts: 3
    Can we have the November lease rates please and what any specials are for the end of the year that are known? Is M Sport package still free? Thanks very much! Kit
  • If I could get an ordered 2013 7 at invoice I would definitely do it. That's a good deal. You'll be getting the exact car that you want at an excellent price with the potential that the lease program on it will improve by the time your car arrives.

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  • Hi Kit. BMW is scheduled to introduce its new November programs some time later today, though I don't know if that will be delayed as a result of the horrible storms that they had in the Northeast.

    Starting in September all 7-Series models are being produced with free M Sport packages. All of the units in inventory that have this option will likely continue to receive credits from BMW for them.

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