Good deal?

Russman1969

My ‘23 X7 has arrived and I’m in the negotiation stage. The price is $92945 and dealers 1st salvo comes in at $8000 down ($4925 tax and the rest 1st month and fees). The payment is $1497 for 3 years and 10k/year. They are saying the residual is 56%. Wouldn’t the tax be the local tax rate times the capitalized cost (price - residual)? They are saying it’s $1497 x the tax rate x 36 to get to the tax, that cannot be accurate, can it?

Does this sound like a fair deal? I don’t think they are killing me but it seems like they aren’t doing me any favors. I have a call with their finance folks at 9:30am EST tomorrow. Any insight would be greatly appreciated.

Michaell

Russman1969 said:

My ‘23 X7 has arrived and I’m in the negotiation stage. The price is $92945 and dealers 1st salvo comes in at $8000 down ($4925 tax and the rest 1st month and fees). The payment is $1497 for 3 years and 10k/year. They are saying the residual is 56%. Wouldn’t the tax be the local tax rate times the capitalized cost (price - residual)? They are saying it’s $1497 x the tax rate x 36 to get to the tax, that cannot be accurate, can it?

Does this sound like a fair deal? I don’t think they are killing me but it seems like they aren’t doing me any favors. I have a call with their finance folks at 9:30am EST tomorrow. Any insight would be greatly appreciated.

What is the negotiated selling price?
What state are you in? The lease sales tax is calculated differently based on where you live.

Russman1969

I believe the selling price is $91445 after the $1500 loyalty. I am in NY

Michaell

Russman1969 said:

I believe the selling price is $91445 after the $1500 loyalty. I am in NY

OK, NY taxes the sum of the payments and collects the money up front; the dealers description is correct.

You can choose to pay it at lease signing (which is how the dealer has structured your deal), or you can add the tax amount to the cap cost and make it part of the monthly payment.

The lease program is .00190 MF and 52% residual.

Using the MSRP and selling price you've given, I get a payment of $1463/mo, so not far off the quote you were given.

Russman1969

Michaell said:

Russman1969 said:

I believe the selling price is $91445 after the $1500 loyalty. I am in NY

OK, NY taxes the sum of the payments and collects the money up front; the dealers description is correct.

You can choose to pay it at lease signing (which is how the dealer has structured your deal), or you can add the tax amount to the cap cost and make it part of the monthly payment.

The lease program is .00190 MF and 52% residual.

Using the MSRP and selling price you've given, I get a payment of $1463/mo, so not far off the quote you were given.

Ok, that’s good to know. Thank you so much. I didn’t think they were beating me up, I thought it was a fair deal. In cases like this, BMWFS sets the residual and MF… does that mean there’s no room for negotiation?

Russman1969

$1699/mo in NY. $3k down (1st month, DMV and Bank fee). 12k year.

Michaell

Russman1969 said:

$1699/mo in NY. $3k down (1st month, DMV and Bank fee). 12k year.

The MF we quote is for top tier credit; the dealer can mark up the MF for extra profit.

Russman1969

Michaell said:

Russman1969 said:

$1699/mo in NY. $3k down (1st month, DMV and Bank fee). 12k year.

The MF we quote is for top tier credit; the dealer can mark up the MF for extra profit.

Understood. The initial numbers were based on 10k miles and now we are at 12k. The dealer is telling me they are using 51% as the residual for 36m/12k and an MF of .0022. My credit score is on the top tier and I questioned why not the .0019

Assuming I get to the .00190 with a price of $91445 and 51% residual. Tax at 8.375% (10956) is in the payment… the out the door number is $3k… 1st month, dmv, bank, dealer, etc. What does your calculation come up with for the monthly payment. I get to $1633

Michaell

Russman1969 said:

Michaell said:

Russman1969 said:

$1699/mo in NY. $3k down (1st month, DMV and Bank fee). 12k year.

The MF we quote is for top tier credit; the dealer can mark up the MF for extra profit.

Understood. The initial numbers were based on 10k miles and now we are at 12k. The dealer is telling me they are using 51% as the residual for 36m/12k and an MF of .0022. My credit score is on the top tier and I questioned why not the .0019

Assuming I get to the .00190 with a price of $91445 and 51% residual. Tax at 8.375% (10956) is in the payment… the out the door number is $3k… 1st month, dmv, bank, dealer, etc. What does your calculation come up with for the monthly payment. I get to $1633

What is the adjusted cap cost, with the taxes added in?

51% is the correct 36/12 residual; that is a number the dealer cannot alter.

Russman1969

Michaell said:

Russman1969 said:

Michaell said:

Russman1969 said:

$1699/mo in NY. $3k down (1st month, DMV and Bank fee). 12k year.

The MF we quote is for top tier credit; the dealer can mark up the MF for extra profit.

Understood. The initial numbers were based on 10k miles and now we are at 12k. The dealer is telling me they are using 51% as the residual for 36m/12k and an MF of .0022. My credit score is on the top tier and I questioned why not the .0019

Assuming I get to the .00190 with a price of $91445 and 51% residual. Tax at 8.375% (10956) is in the payment… the out the door number is $3k… 1st month, dmv, bank, dealer, etc. What does your calculation come up with for the monthly payment. I get to $1633

What is the adjusted cap cost, with the taxes added in?

51% is the correct 36/12 residual; that is a number the dealer cannot alter.

Still waiting for that but we landed at $1659/month 36/12. $3500 out the door. $91445 price. 8.375% tax. If I could guess, it’s an average deal. Not a great deal and they’re not beating me up

Michaell

Russman1969 said:

Michaell said:

Russman1969 said:

Michaell said:

Russman1969 said:

$1699/mo in NY. $3k down (1st month, DMV and Bank fee). 12k year.

The MF we quote is for top tier credit; the dealer can mark up the MF for extra profit.

Understood. The initial numbers were based on 10k miles and now we are at 12k. The dealer is telling me they are using 51% as the residual for 36m/12k and an MF of .0022. My credit score is on the top tier and I questioned why not the .0019

Assuming I get to the .00190 with a price of $91445 and 51% residual. Tax at 8.375% (10956) is in the payment… the out the door number is $3k… 1st month, dmv, bank, dealer, etc. What does your calculation come up with for the monthly payment. I get to $1633

What is the adjusted cap cost, with the taxes added in?

51% is the correct 36/12 residual; that is a number the dealer cannot alter.

Still waiting for that but we landed at $1659/month 36/12. $3500 out the door. $91445 price. 8.375% tax. If I could guess, it’s an average deal. Not a great deal and they’re not beating me up

If you're rolling the tax into the payment, then that looks about right.

Russman1969

Here’s the sheet. Please let me know where these boys are crushing me or not. The agreed price was $91445 after my discount of $1500

Michaell

Russman1969 said:

Here’s the sheet. Please let me know where these boys are crushing me or not. The agreed price was $91445 after my discount of $1500

I'm about $20 less per month than that quote. Given the size of the payment, I'd say that's in the ballpark - there might be slight bump to the MF.

HQ_90

1611/month; 10k/36 mo, State: PA. The adjusted cap cost after applying loyalty is 88,600.00, and the Total Sales tax is 5,365.06. Initial down payment 3178 (includes 1st month and Title/registration), MF quoted 0.00230 with Tier 1 credit.

Michaell

HQ_90 said:

1611/month; 10k/36 mo, State: PA. The adjusted cap cost after applying loyalty is 88,600.00, and the Total Sales tax is 5,365.06. Initial down payment 3178 (includes 1st month and Title/registration), MF quoted 0.00230 with Tier 1 credit.

Is that a quote or a deal you signed?

HQ_90

@Michaell said:
Is that a quote or a deal you signed?

That is a quote and hoping to hear your insight on it?

Michaell

HQ_90 said:

@Michaell said:

Is that a quote or a deal you signed?

That is a quote and hoping to hear your insight on it?

MF is marked up the max allowed.

What is the MSRP?

HQ_90

@Michaell said:
MF is marked up the max allowed.

What is the MSRP?

MSRP: 90,600.00

Michaell

HQ_90 said:

@Michaell said:

MF is marked up the max allowed.

What is the MSRP?

MSRP: 90,600.00

MF markup is adding about $50-60/mo to the payment.