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BMW 5-Series Lease Questions

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  • cebphlcebphl Member Posts: 1
    Car Man -

    I'm considering a one pay (upfront pmt) lease on a 2013 BMW 550i (36 mo., 12K mi/yr). Local dealers are quoting .00195 to .00225 for the MF, which is higher than their quoted rate of .00185 for a 36 month, monthly pay lease. I am aware that the base rate from BMW FS is .00145 for a monthly pay lease and it would seem to me that the same base rate should apply for a one-pay lease. Dealer is claiming that MF on one-pay leases are always higher. This seems counter-intuitive to me, given that they are getting all the cash upfront in a lump sum pmt, vs over 36 months. I realize that they're trying to mark up the base rate on the monthly pay leases as well, but to mark it up even more for a one-pay lease seems even more ridiculous. Is it common practice to charge a higher MF on one-pay vs. monthly pay leases? Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi gjoa. If you are in an area that has a decent level of competition I suspect that you should be able to do better than a $2,000 dealer discount on this car.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Charles, dealer invoice minus the available cash incentives and the use of the buy rate lease money factor is an excellent deal on this car. If you like it, go for it.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're in a good bargaining position, vp1993, because there's tons of BMW dealerships in your area. More competition generally means lower prices. BMW is providing dealers with $2,500 dealer cash on 2012 528i and $3,500 on 2012 535i models right now. If I was in the market for either of these cars, I'd shoot for a selling price that's as close to dealer invoice minus the aforementioned cash incentives as possible. And then have the dealer calculate your car's payment using BMW FS' buy rate lease money factor of .00145.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're absolutely right, cebphl. At the very worst, the money factor for a pre-paid lease should be the same as it would be on a normal lease. It certainly should not be higher. In fact, the money factors for pre-paid leases are almost always lower than normal money factors. I haven't looked into this in a long time, but at one point BMW Financial Services was providing consumers with a .00080 money factor reduction for pre-paying their lease.

    Definitely do not let the dealer charge you a higher factor for a pre-paid lease. You may want to find a different dealership to work with.

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  • carkrazy786carkrazy786 Member Posts: 7
    Hey everyone,

    I just wanted to see if I am getting a decent deal here. Tier 1 credit high 700's

    A dealer in Chicago (suburban tax cook)

    MSRP: 65,832

    Sale Price: 62,998

    36 month 12K miles per year

    Money Factor. .00185

    5k down + 1st Payment.

    Monthy Payment including tax: 727.36

    Please let me know your thoughts.

    Thanks!
  • eagajanyaneagajanyan Member Posts: 12
    Congrats on your lease. I was wondering if you could post milage and duration of the lease. Thank you. I am offered on the same car with 3k out of pocket with 15k/36m 660 payment. thank you.
  • drofnatsdrofnats Member Posts: 4
    Hi Carman,
    I'm looking to lease a 2012 535i lease 36 mo/10k. Returning customer. Prem pkg, sat radio. Inv $50440 + 895 frt = $51335 - 3500 Sept allow - 750 loyalty = $47085. If the MF of .00145 is used, payment would be $525 + tax. Drive off costs would be something like 1st month payment + acq fee + tag transfer. Am I on the right track.? Is the MF negoitable? Thanks for your help.
  • tybalt33tybalt33 Member Posts: 11
    If they are quoting you a MF of .00185 they are marking up the BMW MF of .00145, not a nice thing to do for someone with top tier credit. Did they tell you that is what they were doing?If not, ask what other fees they are going to charge you. Looks like they are giving you a fair price off MSRP but going to make it back on the MF. I leased a 535i with a MF of .00145 this Septmember.
  • armitagemikearmitagemike Member Posts: 23
    Car Man:

    Please advise the residual and money factor on 528xi for 2012 and 2013 for September based on

    36 months, 36,000 miles.
    36 months 30,000 miles

    Thanks!
  • floridapauldfloridapauld Member Posts: 1
    Hi, I am looking to lease a 528i, 12k miles per year, 36 months. The MSRP on the car I want is $53,795.

    Total drive off I will pay no problem. But I don't want to put money down. 750 credit score. What price range is considered good for a lease on a car with these specs? I wanted to get insight here before talking to the dealers.

    Thank you in advance for your help!
  • urojoeurojoe Member Posts: 4
    just leased 2012 535i with tech, premium

    MSRP: 58025
    Cap price: 49500
    36 month lease 10k miles
    2k down which included ac fees, dealer fees etc
    MF 0.00145
    residual 3 yrs at 57%
    credit score: 786

    purchased wear and tear only. $1250

    monthly including everything: $673.

    good deal?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You definitely are on the right track, drofnats, if you are able to lease this car for invoice minus the cash incentives with the use of the buy rate lease money factor. .00145 is the lowest possible money factor on this model right now.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello armitagemike. BMW Financial Services' September buy rate lease money factor and residual value for a 36-month lease of a 2013 528xi with 12,000 miles per year are .00145 and 60%, respectively for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical lease of a 2012 model are .00145 and 58%.

    If you were to lease with only 10,000 miles per year, these cars' residual values would be 1% higher.

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  • amanda0amanda0 Member Posts: 1
    I am need of major help. I am to leasing and have been really do my research but I am still lost. I am going to look into a 2012 528i. I emailed a dealer and this is what he sent me:

    (I do have the perfect car for you with the color combination you want. It’s actually a Factory Demo which has only 1,666 miles on it but the lease comes out to be better. It’s got the basic packages you need.

    The MSRP is $56,095

    We have it advertised for $50,981 (discount of $5100). If you are a current BMW customer you also get an additional $1,250 from BMW!!!!

    Rates and programs have never been better on the 528i.

    Let’s say that with 2,000 total drive off / 36 month lease. Difference in payment between 10k and 12k is $15.00

    Average Monthly is $615 + tax (on approved credit) and this is for 10k miles per year. Residual is 59%

    I really need help on what I should ask next. He did not give me the details and break down on the car yet. If this has the so called basic options than why would the msrp so high? The invoice on a basic is about 43,330. Since this has some miles on it would I be able to negotiate an extra discount because I would have to pay for it? They are also offering a $2500 option allowance am I able to apply that to MSD? I have a crappy credit score of 570. Another dealership is also offering a $1000 dealer cash on the same car, would I be able to ask for it here also? Thanks in advance.
  • repete81repete81 Member Posts: 3
    Car Man can you tell me what the residual would be on a 2013 BMW 535xi with 15000 miles is?
  • friedcfoodfriedcfood Member Posts: 2
    Car_man-

    Lease offer for 535i 2012 manager demo car with 5kmiles
    Msrp 63k
    Cap 54200
    MF 0.00125
    RV 57% 10K miles
    Monthly 668 tax inc
    Down would be about 2k to include first month, bank fee, registration.

    Problem is I have a BMW lease 2009 model with 2 payments left costing 950.
    They're not willing to pay off my current lease. If I eat the 950 will this be a good deal? Or is there something else I can do? I checked the buy off on my current lease and its less than the current trade in value. So buying my current lease and then selling it is not an option.

    Thnka for your help. Cheers.
  • dv5990dv5990 Member Posts: 2
    This isn't carman but it seems like you could do better.

    I just leased a 2012 with an msrp of 65,745 for 670 with 3500 all in.

    Brand new 12k per year including tax.

    Hope this helps.
  • drofnatsdrofnats Member Posts: 4
    2012 535i

    10K/36 mo
    MSRP 55745
    RV 57%
    MF .00145
    Prem/XM Sat
    $3500 BMW, $750 loyalty, $2500 dealer discount
    $1k due at signing inc 1st mo payment/$625 inc tax

    Is this a good deal?
  • kssod1kssod1 Member Posts: 50
    The only way to evaluate a lease is to know:

    1 MSRP
    2 Negotiated sale price
    3 Money factor
    4 residual

    It is highly advised on this board and others that one does not put money down to lower payment.
    state taxes vary so independent of lease
  • sergeymsergeym Member Posts: 283
    edited September 2012
    Not really. You use these four numbers to calculate a lease payment, but the only number that actually counts is the monthly payment, I assume $0 OOP. MSRP is only important to specify how much car you getting.

    E.g $63K BMW 535 for $600 per month for 36 month, 12K miles per year is a great value, $750 per month for the same car and terms - not so much.
  • kaz12kaz12 Member Posts: 6
    edited October 2012
    Hi,
    I need some help here. I was wondering what is the right amount of money to put down with monthly lease for this http://www.motorwerksbmw.com/detail-2012-bmw-5_series-4dr_sdn_535i_xdrive_awd-ne- - w-9135769.html

    I was thinking in terms of $3500 down with $600 monthly lease. Is it still high or is it a good deal if it works out?

    Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi repete81. BMW Financial Services' current buy rate lease money factor and residual value for a 36-month lease of a 2013 535xi with 15,000 miles per year are .00145 and 58%, respectively for consumers who qualify for its top credit tier.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    HI friedcfood. Including all of the available cash incentives, there is probably a spread of a little over $8,000 between this car's MSRP and dealer invoice price. That puts the selling price that you were quoted at around $800 under invoice...plus the use of an attractive money factor. That's not bad at all. I personally might want a slightly larger discount on a demo that already has 5,000 miles on it, but then again dealers are rarely willing to discount demo vehicles enough for my taste.

    This is a fairly thin deal already, so I can't say that I'm surprised that the dealer isn't willing to absorb the remaining payments on your current vehicle.

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  • tybalt33tybalt33 Member Posts: 11
    Be careful putting down too much on a lease. If the car gets totaled or is a loss this is money you will not get back. Dont focus on the monthly payment when negotiating. Negotiate the price alone first. Then, make sure you know all the fees the dealer is going to add in. Watch the money factor as well as many dealers will tack on their own profit to BMW's published rate. This is negotiable. If you have good credit and the dealer won't work with you on the MF, go elsewhere. I just got my 2013 535i lease at the published MF of 0.00145 paying only the BMW delivery fee (not negotiable). Multiple security deposits are a good option and will lower the money factor as opposed to a chunk of money down. You will get the money back after lease termination as well. Good luck!
  • kaz12kaz12 Member Posts: 6
    Hi,
    This is what I get from edmunds after putting in the package and navigation optoins:

    535i xDrive Sedan
    (3.0L 6-cyl. Turbo AWD 8-speed Automatic)

    MSRP: $61,545
    Price as configured Invoice : $56,655
    True Market Value®: $55,820

    The True Market Value® (TMV®) price is our exclusive method for calculating what others are paying for a 2012 BMW 5 Series Sedan 535i xDrive in Minneapolis, MN (based on actual sales data from your region).

    So now what do you think should be a good monthly lease with a down payment.
  • friedcfoodfriedcfood Member Posts: 2
    Thank Car_man,

    I tried to push them to go lower, but they weren't willing to budge. Ended up getting it the day the lease incentives expire.
  • kssod1kssod1 Member Posts: 50
    I am looking at a used CPO 2012 535xi. Original MSRP is 69K CPO price is 55.5k. Is there a CPO Lease. If so what are the numbers that are used: i.e. Residual , money factor, and cap cost?

    Secondly, on a 2013 base 535xi with premium BMW is advertising a 579 per month. When I add 10k worth of options the dealer lease quote was over 850/month. MSRP 68k, cap 64.5k residual 58%, and MF .0016. It seems like the entire 10k in options is added directly in to the lease term, divided by 36, with no offset for the residual.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome friedcfood. Enjoy your new ride :shades: !

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  • jddssc121jddssc121 Member Posts: 151
    Hi carman

    can you post the MF and residual (and any available incentives) for remaining inventory of 2012 535xi's

    36 month 15K/year

    thx!
  • insidecarbuyinsidecarbuy Member Posts: 95
    Hey Kssod1,

    That deal on the CPO isn't too great. The true dealer cost on that car new is about $57,420 (after invoice, minus holdback, $2,500 option allowance money, $1,000 USA Drive Event Money, $750 loyalty and $500 BMW apps. for being a current BMW Financial customer). On the 2013 the dealer is just toying with you. Here is a deal I just did for a friend on a 2013 Model 535xi sedan, he picked up the car yesterday.

    The car was a little cheaper than what you were looking for (about $65,000) but a much better deal. Money factor for 36 months is .00135 and residual for 12,000 miles per year 61%. He came out of a BMW X5 so he had loyalty which gave him an extra $750 and $500 credit towards first month payment. His payment includes tax (7.375%) and just put first month, bank fee and DMV out of pocket…. See below - Hope this helps you!

    Friday, October 05, 2012 6:45:14 PM
    CUSTOMER DISCLOSURE
    Customer Name: Inside Car Buying LLC WD Deal ID: 234612
    Sale Vehicle: New 2013 BMW 5 SERIES 135D 4dr Sdn 535i xDrive w/AC , Automatic , Odom: 0
    Payment Details
    Term 36
    Base Payment 676.49
    Total Payment 676.49
    Purchase Option 39,570.70
    MSRP 64,870.00
    Est. Miles Per Year 12,000
    Disposition Fee 350.00
    Excess Mileage Charge 0.20
    Amount Due at Signing
    1st Month Payment 676.49
    Acquisition Fee 725.00
    Fees & Insurance 247.50
    Total Inception Fees 1,648.99
    Total Cash Required on Delivery 1,648.99
    Tax Information
    Customer State: New York Customer County: WESTCHESTER
    Type Amount Rate Paid
    Cashdown Tax 59.00 7.3750 Capped
    Upfront Tax 1,789.79 7.3750 Capped
    Fee Information
    Description Amount Paid
    Reg 150.00 Upfront
    Insp 10.00 Upfront
    Title 12.50 Upfront
    DocFee 75.00 Upfront
  • insidecarbuyinsidecarbuy Member Posts: 95
    Hey Jddssc121 -

    The Money factor on a 2012 BMW 535xi is .00135 and residual for 15,000 miles for 36 months; 54%. This car has an option allowance credit of $2,500 which most dealer received in July, $750 loyalty if your coming out of a BMW, $500 first month payment waiver though BMW Apps if your currently in a lease or finance contract with BMWF, $1,000 USA Drive Event cash if you took part in this program that was offered all summer long across the USA and if you find the right dealer; he'll be able to sell the car about $2,000 behind invoice. Hope this helps… Good Luck!
  • jddssc121jddssc121 Member Posts: 151
    dealer told me it's a 2,500 credit for the 528, but a 3,500 credit for the 535!!! is he blowing smoke?

    (and yes, i have a team drive credit, an ultimate app credit and a loyalty credit:))
  • ckrelingckreling Member Posts: 23
    Is that 2000 behind invoice prior to deducting incentives ? Or expecting to pay about 2000 under invoice ?
  • insidecarbuyinsidecarbuy Member Posts: 95
    Yes, its $2,000 behind invoice prior to deducting incentives.
  • nj_bknj_bk Member Posts: 4
    bridgewater dealer in nj quoting me for 2012 528xi, premium, cold weather, technology:

    msrp - 56500
    sale - 50300
    upfront - 1000 including first month payment
    monthly 639
    residual 58%
    12k miles a year
    36 months

    payment includes loyalty, app credit. any good? or could this be better. this is one of the last few 2012s i guess. have a feeling it could be at least 1000 better?
  • fyostfyost Member Posts: 2
    edited October 2012
    Hi Car Man -

    I'm reaching the end of my 3rd lease and these forums have helped me every step of the way. Leasing is so much easier when you can calculate your own payment, and then know whether or not a dealership is padding the numbers. We are lucky to have this forum.

    I've been offered a pull-ahead on my current 528 lease. I've done some preliminary research, but I'm confused between 2012 and 2013 offers, rebates, RV, and MF.

    I'm looking for a 10K mi, 36 mo lease. Can you give me the MF and residuals for the 2012 and 2013 528 and 535? Also, are the $2500/$3500 dealer cash being offered in October for both model years or just 2012?

    Thanks again for your help.
  • ckrelingckreling Member Posts: 23
    Anyone see the TV add today 499 for a 2013 528 - maybe I misread it ?
  • jp007fjp007f Member Posts: 1
    I am new to this. Interested in a 528 Xi 2013. 12000 mile, 36 month lease. The web special is $569 a month with 2500 down + taxes etc. This includes the premium package but not the tech or cold weather. My question is how much should the tech and cold weather packages add on the monthly lease?

    Thanks
  • snow26snow26 Member Posts: 24
    Looking to lease a GT. I have read this is a very slow seller that may be discontinued after 2013. Sort of a miscalculation for demand. Are there any incentives on these right now? What is the is the residual and money factor right now for a 36 mo lease, 15,000 miles?

    What type of deal should I be getting off MSRP, say a vehicle the is $68,000. MUCH THANKS!
  • moorech1moorech1 Member Posts: 3
    I know this is an old post, but was looking for updated lease info (money factor, residual, etc) for 2013 550xi. Thank you!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jddssc121. BMW Financial Services' October buy rate lease money factor and residual value for a 36-month lease of a 2012 535xi with 15,000 miles per year are .00145 and 54% for consumers who qualify for its top credit tiers.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Wow, you're making me feel old fyost ;) . I'm glad that you find this forum so helpful. Thanks for being such a loyal reader.

    BMW Financial Services' October buy rate lease money factor and residual value for a 36-month lease of a 2013 528i with 10,000 miles per year are .00135 and 60%, for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical lease of a 2013 535i Sedan are .00135 and 61%.

    The numbers for the 2012 528i Sedan are .00135 and 58%.

    The numbers for the 2012 535i Sedan are .00135 and 57%.

    When negotiating your deal, make sure to take advantage of the $2,500 in cash incentives that's available on the '12 528i and $3,500 on the '12 535i. There is not really any cash incentives on the '13 models right now. I say "not really" because there's some behind the scenes dealer cash that's based upon dealers hitting certain sales objectives that could provide a couple hundred dollars on deals.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the latest information for you moorech1. BMW Financial Services' October buy rate lease money factor and residual value for a 36-month lease of a 2013 550xi Sedan with 15,000 miles per year are .00135 and 57% for consumers who qualify for its top credit tier.

    Car_man
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  • 312chibears312chibears Member Posts: 1
    edited October 2012
    Hi Car Man,

    I'm new to the site and really appreciate all of the great information I'm seeing so far. I am looking at a lease on a 2012 528i xDrive with Premium, Tech and Cold Weather packages. Let me know if you think this is a good deal or if I can do better:

    MSRP = $56,325
    Sale Price = $49,313
    Money Factor = $.00165
    The dealer is located in MI so there's a $190 documentation fee and I'm being told a $925 acquisition fee on all BMW leases.

    I'm planning to put $7500 down and I'm getting the following numbers from the dealer for 15,000 miles per year:

    $621 (includes tax)/ month for a 24 month lease
    $590 (includes tax)/ month for a 36 month lease

    Thank you for your help!
  • karscokarsco Member Posts: 2
    Car Man--new to this forum and my questions have probably been asked and answered but would appreciate your take on this leasing scenario and then a follow up question.

    We are current BMW customers with lease on our 2010 528xi expiring January 2013. Contacted by our dealer looking to terminate this lease and get us into a new one. We like the BMW and have brand loyalty (which probably weakens our position) and want to stick with the 5 series. This particular 528 comes with the cold weather/executive packages and also contour seats. MSRP is $59,895. "Initial Cap Cost" is $56,600 with dealer invoice (we're told) at $55,800. Dealer may take a few hundred off the ICC but clearly not interested in going behind invoice. Dealer adding $925 in bank fees as additional cap. Residual @59% = $35,338 after 3 year lease term @12k miles per year. Money factor = .00155. As structured, deal sees us putting $5,500 down of which $3,800 is identified as cap cost reduction. We also get the $750 loyalty credit. Monthy payment including taxes is $676. This does not seem like a great deal frankly and would like thoughts.

    Follow up question has to do with leasing a 2012 535xi that is on the show room floor with reduced listed price of about $56,300. This car has all of the features we're looking for but not sure how a 3 year lease deal would compare given that we're late in the model year.

    Thanks very much.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome karsco. If the dealer invoice price that the dealership that you are working with quoted you is correct, $800 over on a 5-Series isn't bad. You may want to double check the number that you were given over in the New Vehicle Pricing section of Edmunds.com.

    The acquisition fee that you were quoted is being marked up slightly, $925 versus a base charge by BMW FS of $725. So add another $200 to the dealer profit and you're really at around $1,000 over invoice. Again, this isn't terrible, but if you are in an area that has significant competition, I would not be surprised in the least if you were able to beat this offer by several hundred dollars.

    The dealer is marking up your vehicle's money factor as well. BMW FS' October buy rate for the 2013 5-Series is only .00135. Make sure that they use this factor to calculate your car's payment, especially if they are charging you $1,000 over.

    In my opinion, $3,800 is too much money to put down as a capitalized cost reduction. I always advise consumers to put zero down towards the cap cost. I do so because consumers whose vehicles are totaled in an accident or stolen and never recovered risk losing part or all of any money that they put down. Your monthly payment will be a little higher, but it's much safer to go with a zero down lease.

    Given the cash incentives that are available on the 2012 5, you might want to get the dealer to quote you a payment on that car as well. I wouldn't be surprised if it was less expensive to lease than an equivalent '13 model, even this late in the year.

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  • sportconnectsportconnect Member Posts: 2
    In the Los Angeles/SFV area looking to lease a 2013 528, 36 months, 12,000 miles: Premium 1, Navigation, rear view camera, titanium silver, black dakota. No cash down, prefer to give multiple security deposits, high-tier credit rating. What numbers would I be looking at: cap cost, money factor, residual, etc.?
    Thank you for any assistance. First time leasing. Currently own a 2002 530, exc. condition, 118,000 miles which I may trade in.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome sportconnect. Since you are new to leasing, you definitely should check out the following informative articles on the subject that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In short, the easiest way to get a good deal on a leased vehicle is to shop around for the lowest possible selling price and then have the dealer that you decide to go with calculate your vehicle's monthly payment using its buy rate lease money factor.

    BMW Financial Services' October buy rate lease money factor and residual value for a 36-month lease of a 2012 528i Sedan with 12,000 miles per year are .00135 and 59% for consumers who qualify for its top credit tiers.

    If I was in the market for this car in an area that has a lot of competition, like Los Angeles does, I personally would shoot for a selling price of $500 or so over dealer invoice and see what happens.

    Car_man
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  • sportconnectsportconnect Member Posts: 2
    Thank you Carman for an excellent and rapid answer.
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