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Dreading a lease negotiation tomorrow

jwdccmdjwdccmd Posts: 4
edited March 2016 in BMW
Great forum. Dreading a lease negotiation tomorrow for a 2015 i3 BEV. Feel under informed. As far as I can tell, need to be focused on getting 7,500 credit + 2,000 build out credit from BMW, money factor of .00125. Not sure I see how the residual is treated. Is it a percentage of the MSRP or negotiated price? Looking at 36 mo lease. Any insights here would be appreciated.

Answers

  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    Residual is not negotiable but the MSRP certainly is (the selling price upon which your lease payments are based). Pay attention to miles per year limitations, too. Negotiate the selling price as if you were buying it.

    Also if it makes you comfortable, come back here with all the lease numbers and we'll look it over for you.
  • jwdccmdjwdccmd Posts: 4
    Many thanks.
  • sergeymsergeym Posts: 273
    Wow!
    Who you going to negotiate MSRP with, the manufacturer?


  • steverstever Posts: 52,462
    Here's another way to say it. The lower the price of the car, the lower your lease payments. So you negotiate the selling price of the car (MSRP) with the dealer just as if you were buying the car. The idea is to lower the cap cost.
  • MichaellMichaell ColoradoPosts: 121,824
    There are 4 parts to a lease, only two of which are negotiable:

    MSRP - bottom line number on the window sticker, set by the manufacturer
    Selling price - as noted, you negotiate this just like you would for a purchase; the lower, the better. Get your best price before factoring in any incentives
    Residual - percentage of the MSRP that the bank thinks the car will be worth at the end of the lease. Set by the bank, but varies based on lease term and miles per year
    Money Factor - similar to an interest rate on a loan, this determines the "rent charge" on a lease. The base value is set by the bank, but the dealer can mark it up for more profit.

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


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