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Help! Dealership rejected my counter offer for a new 2015 BMW 328i OwnersChoice Lease

zaarz7zaarz7 Posts: 3
edited July 2015 in BMW
Their final offer for a 3-year, 10K miles/year: $431 per month, with down payment of $3,046 for the OwnersChoice lease-like Program

A counter offer I made ($399/mo for 12K miles instead of 10K, with same down payment) has been rejected by the local high-volume dealer. Here is some background and details:

BMW OwnersChoice is a program offered in lease-unfriendly states like TX, GA and IL, where you pay full sales tax on the discounted MSRP upfront. With this program you get lease-like low payments (and ownership benefits for business vehicle depreciation), with the options to either purchase, refinance or walk away from the deal at the end of the term (36 mo).

Vehicle Details:

metallic paint, leather seats, moonroof, 8-speed automatic, Premium Package (ZPP), Technology Package (ZTP), Driver Assistance Package (ZDA) & Heated Front Seats (494)

Details of Retail Worksheet:

MSRP: $46,905; Discount: $5,035; Selling Price: $41,870; Doc Fee: $699; License Fee: $20; Total Fee: $90; Total Taxes: $2,983 (sales tax); Total Price: $45,642; Trade Difference: $41,870; Down Payment: $3,046; Balloon $: $30,957 (with option to purchase or walk away with $350 disposition fee); Sell Rate: 3.5; APR: 3.5; Amount Financed: $42,595; Finance Charge: $3,889; Total of Payments: $46,485; Total Sales Price: $49,532

Monthly Payment: $431

Why did the dealership reject my counter offer and what can I do to salvage this deal without capitulation? Help!

Answers

  • MichaellMichaell ColoradoPosts: 121,835
    zaarz7 said:

    Their final offer for a 3-year, 10K miles/year: $431 per month, with down payment of $3,046 for the OwnersChoice lease-like Program

    A counter offer I made ($399/mo for 12K miles instead of 10K, with same down payment) has been rejected by the local high-volume dealer. Here is some background and details:

    BMW OwnersChoice is a program offered in lease-unfriendly states like TX, GA and IL, where you pay full sales tax on the discounted MSRP upfront. With this program you get lease-like low payments (and ownership benefits for business vehicle depreciation), with the options to either purchase, refinance or walk away from the deal at the end of the term (36 mo).

    Vehicle Details:

    metallic paint, leather seats, moonroof, 8-speed automatic, Premium Package (ZPP), Technology Package (ZTP), Driver Assistance Package (ZDA) & Heated Front Seats (494)

    Details of Retail Worksheet:

    MSRP: $46,905; Discount: $5,035; Selling Price: $41,870; Doc Fee: $699; License Fee: $20; Total Fee: $90; Total Taxes: $2,983 (sales tax); Total Price: $45,642; Trade Difference: $41,870; Down Payment: $3,046; Balloon $: $30,957 (with option to purchase or walk away with $350 disposition fee); Sell Rate: 3.5; APR: 3.5; Amount Financed: $42,595; Finance Charge: $3,889; Total of Payments: $46,485; Total Sales Price: $49,532

    Monthly Payment: $431

    Why did the dealership reject my counter offer and what can I do to salvage this deal without capitulation? Help!

    We don't have a lot of details on the Owners Choice program or how the payments are calculated, but my guess is that the dealer wasn't making any money (or enough money) on the deal you proposed.

    Generally, you want to negotiate the best selling price you can, which you seem to have done. Perhaps there is no more wiggle room for them - you're asking for $32/mo, or over $1150 over the 36 month term.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • zaarz7zaarz7 Posts: 3
    Thank you for your response. You are right. I couldn't find much info on the OwnersChoice option anywhere.

    Do you think I should give it one final shot and ask for 12K (instead of 10K) miles without changing any other terms? I've got nothing to lose, but I don't think I'll have any leverage if I go back.
  • MichaellMichaell ColoradoPosts: 121,835
    zaarz7 said:

    Thank you for your response. You are right. I couldn't find much info on the OwnersChoice option anywhere.

    Do you think I should give it one final shot and ask for 12K (instead of 10K) miles without changing any other terms? I've got nothing to lose, but I don't think I'll have any leverage if I go back.

    If you don't ask, you don't get.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • isellhondasisellhondas Issaquah WashingtonPosts: 20,225
    Simple answer. Had you made an acceptable offer you would have had a deal. A store won't sell a car if they aren't making what they consider to be an acceptable profit.
  • steverstever Posts: 52,462
    The store might get hungrier toward the end of the month. But "your" car may be gone.

    If you are sort of close to other dealers, get another quote or two.
  • zaarz7zaarz7 Posts: 3
    Thank you all for the answers. I primarily wanted some one to go through the numbers I've provided and tell me if it was a great deal to begin with. That way I can decide to go back to them with a more reasonable counter offer.
  • kyfdxkyfdx Posts: 128,281
    zaarz7 said:

    Thank you all for the answers. I primarily wanted some one to go through the numbers I've provided and tell me if it was a great deal to begin with. That way I can decide to go back to them with a more reasonable counter offer.

    The base APR for Owner's Choice is 3.00%, so they are marking up the rate (which is typical).

    As you mention, they've already let you walk, and you don't have a lot of leverage. I would definitely shop another dealer.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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