BMW 3-Series Lease Questions

smithsonga

Wow..what was MSRP on that puppy?

jmcbmw

The MSRP was $49275 got the deal at Stevens Creek BMW in San Jose CA. I am from LA but was hard to find a car with heated seats in So Cal. Plus, the internet manager and entire staff was amazingly friendly and accomodating and gave me at least as good a price as I could have gotten in LA.

niclaf77

just got back from making a deal on a 2008 bmw 328xi and thought i would share - hopefully it will help someone out.

2008 BMW 328 xi with premium package, cold weather package, ipod adaptor, automatic.
MSRP - $40,858 (invoice - $37,640)
Cap Cost - $38,540
36 months - 12,000 miles per year
Residual - 63%
Money Factor - .00165
Down Payment - $0
Monthly Payment - $496.54 (this includes tax)
Due at signing - $2089 (Acquisition $625, First Month $496, Security Deposit - $500, Registration - $262.50, Doc Fee - $199, Tire Tax - $6)

It was the easiest car deal i ever made and i highly recommend BMW of Freehold in NJ - John McBride was the salesman - very easy to deal with - no shady dealings. let me know if you have any questions!

futurebmw

hi everyone. first pf all, i wanted to say thank you to all those who have been posting on this forum. i have learned so much from all of you guys. i just had a couple questions about leasing in general. i wanted to know what the values are that we should be haggling with the dealer on?

1. i know that the msrp is DEFINITELY the first place to start. i am getting the idea that i should not be paying more than $1000 above invoice.

2. is the residual value fixed or negotiable? and does changing the lease from 10k to 12k to 15k change the overall please price much?

3. is the money factor another value which is set by BMW financial and non-negotiable?

4. what exactly is the bank fee and is that something which is required, or again is it negotiable?

any other tips regarding negotiating with dealers. i am trying, for the first time, not to negotiate the monthly price but instead to haggle down each parameter to the lowest and then just plugging in the calculation in hopes of a better deal. thanks to everyone in advance.

niclaf77

i will try and answer some of your questions.
1 - the msrp is the sticker price on the car and i found with bmw - it seems to be about $3000 over invoice. you can go right here on edmunds.com and build a car the way that you want it and it will tell you both msrp and invoice of the car. it will also tell you what other people are paying in your area. it depends on the type of car - for bmw, i would try to pay no more than $1000 over invoice - this can be easy or hard depending on how popular the car is and how bad they want to make a deal. see my deal above - i saved about $2100 off msrp and paid about $900 over invoice.

2- the residual percentage is set by bmw each month. the residual values are different for each car and are also different depending on how many miles and lease term. for example - a 3 month lease with 10,000 miles a year on the bmw 328xi had a residual of 64% - with 12,000 miles, it went down to 63%. you can usually come on here and find out what the residuals are on the car that you are looking for. they are not negotiable so you want to make sure they are not using a different number and making money off of you.

3- the money factor is also set by bmw each month and each car has a different one - this is your interest rate - be careful as some dealers try to mark these up to make a profit. again, you can come on here and find out what the money factor is for the car you are looking at.

4- the bank fee is $625 for bmw - some dealers try to mark it up to $825 but i would not pay more than $625 for this. i don't think it is negotiable with bmw. i know that some dealers will waive this fee if you have tier one credit but i am not sure if bmw is one of them.

i would go to the dealer equipped with all of the numbers above as well as the target price you are looking to negotiate for the car. also, use the lease calculation with those numbers to get an idea of what your payment should be, before you go in. also, bring the equation with you and a calculator so that you can plug the agreed upon numbers into it while you are there. good luck and i hope some of this was helpful!

nicole

njfresh08

okay a friend of a friend of mine got a 2007 335i coupe its alpine white/coral red
with:
Walnut Trim
6MT Transmission
Premium Package
Sport Package
Navigation
Lease Term - 36 months (34 payments remaining)
Lease Mileage - 10K per year
Lease Payment - $629 including taxes
car has 986 miles on it
the thing is he is moving overseas.is it worth taking it over?

boomer23

Sounds like a great deal if the mileage works for you. How many miles has he put on it so far? Will the 10K miles per year work for you? Excess mileage charges are very expensive, though I was told that during the lease, you can ask to have the miles per year increased, of course for a fee. Also, some of the 2007 335s had oil temperature problems, causing BMW to install an oil cooler, and some had a failure of the high pressure fuel pump. All of this is covered under warranty, of course, but you might try to find out of these issues have been addressed on this car.

satishd

I got the following deal, please tell me whether it is a good deal or not? Do I have any room for negotiation? I have no clue as this is my first lease. Please help!
BMW 328Xi sedan AWD with Premium package, Sport package with 8 way power seats and lumbar, 6 speed steptronic automatic transmission, heated front seats, ipod and usb adapter, logic 7 sound system with surround sound, Black sapphire metallic paint exterior, beige leather interior with burl walnut wood trim.
MSRP-------------------------------------- 43,375
Selling price------------------------------$ 41,875
Acquisition fee------------------------- 625.
Capital cost reductions-------------- zero
Residual value--------------------------- 63%
Money factor----------------------------- .00175
Lease term-------------------------------36 months
Monthly payment (12k)---------------------- 525.23
Security deposit----------------------- 550.

futurebmw

wow!!! that is a great little deal you got there.... here is what i am interested in:

bmw 328i sedan
steptronic transmission
metallic paint
premium package
sport package
xenon lights
heated seats

and here are the lease terms that i am interested in:
12k - 15k miles
36-39 months
$0 down

I have figured the msrp to be $41,075. satishd, you got a great payment for a car that has a higher msrp than i do. i want the payment to be under $500 no matter what. but obviously i want the cheapest payment that i can get. so here's the deal, 1) what factors whould i start to haggle on, and 2) when is the best time to buy, i.e. with regards to money factor and residual etc..

thanks.

jackals

What do you guys think. I'm not thrilled with the out of pocket. If I could get this payment with $3K out of pocket I think I would jump at it. Am I being too greedy? I don't think I can expect anything more off of the car. I think I would try and get the money factor down to possibly .00175.

2008 335xi Black Sapphire Metallic / Terra
Cold Weather
Premium
Steptronic
Nav
Sirius
iPod

MSRP - $49,820
Selling price - $46,850 ($2970 off MSRP !!!)
Residual (36 mo / 10K miles per mo) - 64%
Money Factor - .0020

Monthly payment - $580
Total out of pocket - $3800 ($580 first payment + $600 security deposit + $1,514 tax + $625 acqui. fee + $125 doc fee + $270 registration + sup title fee $188 = $3,902 (he will round it down to $3,800))

boomer23

Looks like a very good deal. You got almost $3,000 off MSRP and exactly the current buy rate money factor of .0020. The other important thing is that you're not paying anything "down", meaning customer cash down payment that pre-pays the lease, which is not recommended.

I don't know how much of those doc fees, registration and supplemental title fees are pure profit for the dealer. You might challenge him on those. The $625 acqui. fee is the lowest they'll try to charge, but it is also pure profit, I hear. I'd work more on the total of those up front fees. The ones I read about most often on forums are something called MACO and training fees, and they usually total between $400 and $500.

The money factor is set by BMW Financial Services and can't go lower unless you pay multiple refundable security deposits. You can pay up to seven additional S.D.s. Each one will lower your money factor by .00007, but BMW will have $600 of your money for 3 years for each S.D. you pay. They're probably still a good deal, though, if you figure that you'll save about $5.50 a month for each SD that you give them, so you save $200 over the life of the loan for each $600 that you lend BMW, which is an 11% return on your money, I believe.

jackals

Thanks for the feedback. I appreciate your input. Doc fee is a BS fee and is pure profit for the dealership. It varies by dealership in NJ but everyone pays it as far as I know. I've seen it as low as $100 and as high as $199. In PA it is a state regulated fee and is $55 at all dealerships. The acq fee is only on leases and not on loans. I'm told that it is there to cover gap insurance. The return on the investment from the multiple security deposits is probably even higher if you figure you are not paying tax on gains like you would on other investments.

jpl

Hi: Need advice, My lease expires 1/17/07, have 28,300 miles, Love the car, getting older-(63), do not want to go up in payments, but cannot find anything that keeps My interest more than thev BMW (Coupe!!!) Would it be feasible to re-lease the car, buyout is $26,200 , just put $1300 New-Run-Flats on car!! Does BMW work with You on these things, or do They really want the car back????
Also, 1 year left on Maintenance.
Thanks, In Advance
jpl

ebro83

Hey guys , I am interested in some feedback. I am currently negotiating a lease for a 2008 328 I. Right now the offer on the table is:

MSRP $39,200

Selling Price $37,100

$0 Down

$547 a month

36 Months
12k Year
Money Factor .00100
Residual 67%

All taxes and fees are rolled into the monthly. Thoughts????

jackals

How are people able to negotiate the residual and money factor? I have talked to 4 different dealerships about a lease and every single one of them has told me that for 36 mos and 10K miles the residual is 64%. They all presented the same MF of .00200 also. Each has said that these are directly from BMW Financial Services and they are not negotiable. How are people getting better MFs and residuals?

futurebmw

hey there... that's an AWESOME money factor and residual... which dealership are you getting this rate from?? and what is the car you are getting equipped with?? did you have to negotiate the mf and the residual??

maritza2

Hi Car Man & Kyfdx,
I posted my question last week but cant find my own posting to see if it was answered. I'm going to try again.
I got a deal over the phone, but when I calculated the math to figure out my monthly lease payments it came out to $490.33, but the salemen told me $459.46. He also told me the amount due at signing is $2,793 , but I calculated $2,475.69. I cant figure out where is coming up with another $317. I'm a single female & I'm going by myself to try & get a good deal. Please review the figures below & let me know what you think. Thank you.
BMW 328xi, automatic, leatherrette seats, no extra package, 15000miles, 3yr lease.
MSRP $36,350
Residual Value (he said 61%) $22,173.50
Money factor .00165
Due at signing:
1st month $459.46
Security Deposit $0( my BMW lease is up 1-28-08)
Bank fee $625
Title fee $0
Reg. Fee $57.75
License fee $0
Tire recycle fee $12.50
Inspection fee $10.
Documentation fee $45
No cap reduction fee $0
Sales tax $1,265.98
Please let me know what you think. Is he going to come up with other charges when I go in for the signing? Is he not telling me the correct monthly fee, so he can get me in his office & then tell me it's $490, or did I calculate wrong?

kyfdx

The one figure missing from your calculations is the selling price. You can't figure a lease payment without it..

CarMan@Edmunds

Hi futurebmw. The two main numbers to focus on when negotiating a lease are your vehicle's selling price and the money factor that is used to calculate its monthly payment. The selling prices of vehicles are negotiable, just as if you were paying cash for or financing them. You should be able to get an idea of what sort of price you should pay for this car by stopping by the "BMW 3-Series Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar vehicles lately. Shop around until you find a dealer that's willing to give you a selling price that you are comfortable with and then have that dealer calculate your monthly payment using BMW Financial Services' buy rate lease money factor. BMW FS' current buy rate for a 36 month lease of a 2008 BMW 328i Sedan is .00165 for consumers who pay a security deposit and acquisition fee at lease signing. It is important that you make sure the dealer is using this money factor because BMW dealers are notorious for marking up vehicles' factors to add additional, hidden back-end profit to deals.

The money factor that I mentioned above is scheduled to run through January 2nd. It is difficult to say what BMW's new January program for this model will be like. If I was in the market for a new 3-Series, I personally would pull the trigger on it before the end of the year. Dealers will be motivated to squeeze as many vehicles in before the end of the money and calendar year that you should be able to negotiate a pretty good deal.

Good luck in your hunt for a new car and let us know if you have any other questions.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi jpl. There is a decent chance that BMW Financial Services (I assume that this is the bank that you are leasing through) will allow you to extend your current lease for a certain period of time. Give them a call and see what they are willing to do for you. Another avenue that you may want to explore is letting your current lease end and then having a dealer certify your car as a CPO BMW and leasing it through BMW FS again. Normally leasing used vehicles isn't a great idea because of the lack of support that manufacturers provide on used vehicle leases, but BMW's CPO lease program is often pretty decent. This option might be worth looking into.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi jackals. BMW Financial Services' residual values are set in stone and individual dealer do not have the authority to alter them. BMW dealers are allowed to mark-up BMW FS' buy rate lease money factor to add hidden profit to deals, but they cannot charge less than the buy rate. BMW FS' current buy rate for a 36 month lease of a 2008 BMW 328i is .00165 for consumers who pay a security deposit and acquisition fee at lease signing. If you shop around and confront dealers with this information, you should be able to find one that will use the buy rate to calculate your monthly payment.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

jackals

they cannot charge less than the buy rate. BMW FS' current buy rate for a 36 month lease of a 2008 BMW 328i is .00165

Car_man-

Thanks for the response. You confirmed my doubt about a money factor of .00100. That seems highly unlikely. Looks like most of the people here are intersted in the 328i. I am looking at a 335xi though. Is the money factor still .00165 or does the money factor differ by model? If it is different, do you know what it is for the 335xi?

I posted it in another message but here is the current deal that I've been offered. If I could get a better money factor, I would sign immidiately.

2008 335xi Black Sapphire Metallic / Terra
Cold Weather
Premium
Steptronic
Nav
Sirius
iPod

MSRP - $49,820
Selling price - $46,850 ($2970 off MSRP !!!)
Residual (36 mo / 10K miles per mo) - 64%
Money Factor - .0020

Monthly payment - $580
Total out of pocket - $3800 ($580 first payment + $600 security deposit + $1,514 tax + $625 acqui. fee + $125 doc fee + $270 registration + sup title fee $188 = $3,902 (he will round it down to $3,800))

satishd

I am leasing BMW 328xi sedan and the residual value is 63%. My question is is it 63% of MSRP or selling price. The money factor I was given is 0.00175 and I was told that it can be negotiated down to 0.00165. Could you please tell me where I can find out the official value of the money factor. Thanks.

jackals

residual is based on MSRP, not the selling price. I believe 63% is the value for 36 months and 12,000 miles per year. From the posts here, you should be able to get down to .00165 on the MF.

boomer23

jackals and satishd, just in case our host doesn't get the chance to get back to you soon enough to make a decision, the December buy rate money factors are as follows for 2 and 3 year leases: (quoted on another forum site).

328i and 328xi sedans: .00165
335i and 335xi sedans: .00200
328i and 328xi coupes: .00190
335i and 335xi coupes: .00235

If you're a new BMW customer, make one security deposit or you'll pay .00015 higher money factor. Make additional security deposits (up to 7) and you'll lower your money factor by .0007 for each SD.

ledgem81

How you doing Car Man and all you BMW drivers? I leased my first car which happens to be an '06 BMW 325i sedan and my lease expires in Feb of '09(14 months to go). I love this car, DO NOT get me wrong. But, is there any way to get out of this lease and into an '08 BMW 328i Coupe lease or do I have to wait for my current lease to expire to the end??? Like I said this is my first lease and I don't know what I am allowed to do.

jackals

Thanks boomer23. Ugh, why can't the 335 MF be .00165 as well. We are already paying $10K more over the 328. Why do they fee the need to stick it to us even more?

cdnpinhead

I think it's called supply & demand.

They are trying to move 328 sedans. Everything else costs more. Coupe, wagon (my personal favourite), anything with a 335 engine & convertible drivers are invited to grab their collective ankles and. . .

kyfdx

You know.. it's really rare for the AWD models to have the same money factor as the RWD models.. Especially across so many different models.

I don't remember that ever occurring before..

mfc1

futurebmw - i am looking for a similarly equipped 328i in so cal - automatic, premium package, sports package. for a 36 month lease with $0 cap reduction and 15k miles a year. what kind of quotes are you getting? i got quoted appx $570 incl. tax. is that too high?

ursamajor

What is December money factor on a 2008 328xi?
Any word on a change in January in money factor or reduction in cap. cost resulting from manufacturer incentives?

jackals

328xi MF is .00165 for Dec
335xi MF is .00200 for Dec

My CA knows I am not buying in Dec so he has no reason to mislead me with regardds to the following info. He says that at the beginnign of Dec, BMW had put out a bullitin telling their dealership that they need to sell 'X' number of cars in Dec. They are currently being pushed on volume, not price. My latest offer is 3K off MSRP on a 335 when most say 2K off is the norm. That would seem to support this. He also sent me an email saying that yesterday they received another bullitin stating that there will be a slight increase for the 3-series in January that will amount to about $10 a month. He said to be able to lock in a Dec price you need to fill out a credit app online before the 31st and send it to the dealership of your choice. That dealership can honor the Dec MF for up to 60 days. Sounds like typical salesman talk, but again, he knows I am not buying in Dec. He was just giving me a heads up on a way to lock in the Dec MF for 60 days with no commitment. And if by chance the promos get better in Jan or Feb then you obviously get the better deal. If you place an order in Jan but did not submit the credit app you will get the Jan MF.

Bottom line, fill out a credit app this week. Wait until next week to see the new MF. If Jan MF is higher either sign with the Dec MF or wait until Feb to see if it gets any better. If you wait until Feb, make sure you can take delivery by the end of the month. If you take delivery past 60 days from Dec, you will lose the Dec MF.

Certainly verify all this with your local dealer before you decide to wait on a deal you are currently being offered. Hope this is not too confusing.

ursamajor

I went through this exercise three years ago and opted for an Infiniti G35, but had a very bad leasing experience with the dealer, which has effected a complete change in management. I overpaid about $ 30/mo., with hindsight. However, I am not enamored of RWD and even though I live in So. Cal., I am a skier and cyclist and I find that there is an option to obtain a beautiful 335xi sedan with fold-down rear seats and a ski bag slot and accomodate my bike inside without using a rack. I went to Pacific BMW in Glendale web site and have a pending "bid" at invoice. To confirm: if I order (and I will have to order to get the precise equipment and colors) now, I can lock in a MF of .002, 10K miles/yr w/resid. of 61% (or is it 64%?) on a 36mo. lease? And two additional questions I haven't seen here: when ordering, can you eliminate the moonroof and save $? And how much should I expect to pay or "imbed in the lease payment" the cost of a 6-CD-in-dash unit, which is not a factory option. Thank you very much for your help. Merry Christmas. P.S. I spoke to a buddy in Ashland, OR, where several folks have this car, and they don't grouse about run-flats, but change the tires until they turn it in. But where does the spare go?

emgunz

Trying to get 335xi ED:
Prem, Sport, Paddle, Cold, Auto, Comfort, Nav, IPod, Metallic ($47,870)
$2500 down + 1st + Security (600) + Plates (150) (~$3,750)
We have to pay tax (7.75%)up front in Ohio.
Tax included: $580/month 10k/yr. 36 mos.
Is this a good deal? I wouldn't get the car until May or June, should I wait until March to do this?
Any assistance is most appreciated! My other option is the G35x in the summer, but this car is FAR better IMHO!

frodriguez1

Deposit placed on 2008 BMW 335iC with an MSRP of $56,845.

First month, tag, title and bank fee at delivery (in a few days). $817 plus tax for 39 months with 10k miles per year.

Good deal? Thanks!

futurebmw

hey there... to be honest, i haven't gotten around to getting any quotes as yet because i haven't had the time... but also, i got caught in the "tire dilemma" while going through the forum... everyone was making it sound like getting the run flat tires on the sport package was like signing a deal with the devil... honestly, it is almost a deal breaker for me... i mean i can just barely afford the lease payment, but it will totally be a no go if i have to drop another 1-2k for new tires... so i started thinking about the g35 sedan... so i was confused about that for a while... and then secondly, i was wondering if it's a better time to buy now during the year-end sales, or around summer time when the new year models wil be coming out... i really wonder what the money factors will be for those months, as i am assuming that they would be eager to get all the "old" year models out... please chime in if you know anything about the above two points... take care and good luck...

jackals

I'm trying to locate 335xi 36 month residuals for Dec.

10K = 64%
12K = 63%
15K = ???

Any idea on 15K?

boomer23

Paying money down on a lease is usually discouraged. Reason is that you lose that down payment if your car is totaled. Instead, you could make multiple security deposits, which you would get back at the end of the lease or in case the car is totaled. For each security deposit, your money factor is reduced by something like .00007. You can make up to 7 additional security deposits. Each one would only lower your monthly payment by about $5, but it adds up, AND you get the deposits back, as opposed to going in the dealer's pocket if you pay the money down.

boomer23

Nobody can answer your question without knowing your negotiated selling price as well as the MSRP. You should also know your money factor, residual and whether you're paying a security deposit or whether it is waived as a returning BMW customer.

kyfdx

Close..

12K is 1% lower than 10K

15K is 2% lower than 12K

kefler

I attempted (and failed) to negotiate a lease deal w/ the only BMW dealer in my
town (Tucson, AZ) yesterday. I'm posting the details here to see if my deal seems
crazy, and to get validation that I wasn't incorrect in my calculations.

Car Details:
* 335i Sedan w/ 6spd manual
+ ZSP Sport Package
+ ZPP Premium Package
+ iDrive Navigation
+ iPod /USB Adapter
+ Metallic paint (color: Sparkling Graphite Metallic, interior Gray / Burl Walnut trim)
(MSRP 46,900 including dest)

Lease: 3 Year (36 Month) / 12k/year. $3000 out of pocket.

After an hour of back and forth (they started out at $732 w/ tax), they came out with
two pieces of paper with lease numbers on them. The first piece of paper had the
dollar amounts for the lease, the second had stuff like taxes, money factor, residual
on it. At one point I pulled out my PDA w/ pocket excel and wrote the #'s down off
their sheet (not sure that they liked me doing that).

I offered them $44900 ($2000 off MSRP) to start with. They "accepted" this but then added $825 to that for the "aquisition fee".

=======================================================
Paper #1: Money Factor .0020, Residual 63%.

Paper #2:
Fees:
Doc Fee $239 (bogus?)
License $665 (this is accurate)
Dwn Pmt Sales Tax $108
First Pmt $652
--------------------------
Total $1661

Lease Numbers:
MSRP $46900
Sale Price $45725 -- they added an $825 aquisition fee here
Residual Amount $29547
Capcost Reduction $1339 -- My 3k after taking out those fees.
Net Cap Cost $44386
Depreciation fee $412
Finance Fee $188 --- This seems bogus to me! this is not @ .0020 MF?
Monthly Payment $652
==========================================================
Tax is 8.1%...

At this point I argued that "Paper #2" must have not used .0020 as the money factor, in fact it looks like they used .0025. The salesman threw me a sheet of paper, actually a printout from edmunds.com, on how a lease is calculated and said
"All leases are calculated the same, look for yourself, your calculations are
wrong". So I told him to use his calculator and the formula on the paper
he printed out:

(Negotiated Price + Residual Value) * Money Factor = Finance Fee.

He did and when it came out to $147 he put away the paper and said "well we don't
do leases like that, we use the computer." and stepped away.

At this point I think I pissed them off, he brought out the "general manager" who
said he was "already feeling bad about this deal" and he had "never seen a price
this low with so little profit in his 16 years at BMW".

I told him I couldn't buy a car with these numbers not adding up, and he insisted
along with the salesman that the MF was .0020 and I was wrong. So I walked.

I dont think I was wrong.. besides the stupid fees, which I dont think are legit,
They were doing two shady things:

#1 -- not being truthful about the money factor
#2 -- adding the aquisition fee to the negotiated price, which means it then
increases the term depreciation! Fees dont depreciate, the car does.

I really believe $590 a month is possible with $3k out of pocket, does that seem
crazy?

kyfdx

Acquisition fee is legitimate.. However, the base fee is $625 and they marked it up the maximum to $825 (extra profit for them).

It doesn't really matter if they add it to the CAP cost, or you pay it out of the $3000, and your CAP reduction is smaller. The effect is the same. All charges, minus money upfront results in Net Cap Cost. Depreciation is Net CAP Cost minus Residual. It doesn't matter that the car depreciates, it's a mathematical formula.

Doc fee-- Extra profit for the dealer.. a lot of dealers charge this.

Money factor... Looks like they were marking it up the maximum to .0024, plus adding the .00015 security deposit waiver, for a total of .00255

They either don't know the money factors ("we just use the computer"), or they were lying to you ("we just use the computer"). Some salespeople have no idea what F&I does, what the mark-ups might be, etc... but, I can guarantee that the manager knows.

I don't know if you can get to $590, but given your paramaters, and the $3K upfront, you should certainly be able to get to $600-$610 without any problem.

Maybe you'll have to expand your search to Phoenix..

regards,
kyfdx
Host-Prices Paid Forums

kefler

Thanks for setting me straight on the aquisition fee. In the grand scheme of things, $200 there and $239 for the doc fee aren't a big deal.

I'm just not happy that they would show a printout that said the MF was .0020 and then use .00255 when calculating the numbers. The problem with the situation is that they got "upset" about me telling them the #'s did not make sense. I dont want to accuse them of being dishonest (even though of course they will only be as honest as they absolutely have to be) but I just want them to lower the MF, or atleast say what they are using.

One more question, do you know what the security deposit is? If it's refundable It might make sense to pay it and save the $10 or $11 a month.

Thanks.

kyfdx

Security deposit is the monthly payment, rounded up to the next $50 increment..

So, yes... it is definitely wise to make the deposit. Returning BMWFS customers get the deposit waived, with no bump in the MF.

The 335i sedan isn't a high demand, low supply item. I think your offer of $2000 off MSRP was more than fair.. They shouldn't have to rake you over in the finance office to make up for it.

Most dealers that have doc fees aren't going to cut them, so it probably isn't worth wasting your breath on that one.. But, you should insist on the base rate MF (buy rate in industry lingo), and if they won't cut the acquisition fee to $625, then ask them to cut the price by that amount.

If you make the security deposit, get the buy rate on the MF, and get $200 cut out of the acq.fee, you'll knock $45/mo. off the payment they quoted you.. With tax, thats around $49/mo.less.

That would be a decent deal.

kefler

Thanks very much for all the information! Now I just have to figure out if I want
to go back and deal with these guys... being the only dealer in town
I'd have to go there for service no matter what.

I have been puzzling over why they didn't just put the aquisition fee in the 'fee'
column but instead added it to the price of the car. While its true it doesn't
matter if my $3k goes to reducing the capcost or to fees, I think they make
an extra $50 in "sales tax" on the capcost reduction by adding it in
for the #'s they show to me. (the $108 tax)

Maybe it would have been easier to not talk lease numbers and just monthly
payment, but I always feel dumb doing that.

kyfdx

Actually, the acquisition fee is taxable, so that wouldn't affect your sales tax, either way..

Most people don't understand money factors and lease calculations.. Dealers like those people... for obvious reasons. There is nothing wrong with negotiating by monthly payment, if you know how you are getting to that payment.

Good luck with it.

jackals

Any word on the Jan money factors and residuals? Specifically I am interested in MF and residuals for the 335xi Sedan for 36 months with 10K and/or 12K miles. Thanks!

ursamajor

I priced the car I had ordered at a client's long-time friend, who is sales manager at a high-volume S.F. Valley dealer, and he quoed me $ 1200 over invoice; my deal was $ 500 over at Pacific BMW in Glendale, CA, and I locked a basis point in by submitting my app. on Jan. 2nd at .0002.

smithre4

Posted this over at bimmerfest, but figured I'd also cross post.

In some states, tax is calculated based on the use of the car. For those states, when you want to roll the tax into the payment, the calculation is simple:

[(Monthly Depreciation Charge) + (Interest Charge)] * (Sales Tax) = Monthly Tax Charge

But what about states (like MD) where the tax is based on the selling price of the car? How do you determine the tax if you are rolling it into the payment? Is it simply:

(Sales Tax) * (Selling Price) / (Term) = Monthly Tax Charge

I think it wouldn't be like that since if it is going into the monthly payment you'd have to pay some sort of interest charge, but I'm not sure how to calculate it? Any pointers?

Thanks in advance.

Ross

kyfdx

Selling price X tax rate = TAX

TAX is added to the CAP cost, as BMWFS will pay it to the state upfront.