Hows this deal for an M3 lease?

[thegeneral101]

MSRP: $79,645
Sale price after rebates: $74,961
Residual 59%
MF: .00165
39mo
10k miles
$989/mo

+ they cover half of shipping cost

MF might be a bit high, but the deal seems fair since they are including shipping. Thoughts?

[chrisv_335EBII]

The 36 month lease will net you a lower monthly payment @ 62% residual for 10k/year.

The other thing you want to find out what is the acquisition fee (should be 725), dealer fee etc. The MF right now for the M3 is .00125. That is a high mark up....

It looks like you still have some negotiating to do.

[thegeneral101]

I just went back to them with this bid:

36mo, 10k, $0 down
Residual 62%
MF .00125
Sale price $75,000
MSRP: $74,645

Let's see what they say.

[thegeneral101]

ok, they countered with this.

39 month / 10,000 miles per year
Sale Price: $75,076.55
Money Factor: .00155
Residual: .59
Rebates: $1,500 Holiday Cash, $750 Loyalty, $300 Ultimate Drive App
Monthly Payment: $989.00 per month including FL 6% sales tax and registration

I told him get the payment to $980 and we probably have a deal. I do understand its a limited car, so they don't have to let it go.

I don't think I'm getting raped on the deal.

[B-52Gunner]

MSRP $79645
Negotiated Price $75076.55
Residual .59
Residual $46990.55
Negotiated price minus residual $75076.55-$46990.55=$28086
Monthly $28086/39 months=$720.15

MF ($75076.55+$46990.55)*.00155=$189.20

MF $189.20 + Monthly $720.15 = $909.35

Tax $909.35 * Tax .06 = $54.56

MONTHLY PAYMENT = $963.91

[thegeneral101]

^^ how the heck is he getting $989 then. Like the math btw,thanks

[NHman]

Originally Posted by thegeneral101

ok, they countered with this.

39 month / 10,000 miles per year
Sale Price: $75,076.55
Money Factor: .00155
Residual: .59
Rebates: $1,500 Holiday Cash, $750 Loyalty, $300 Ultimate Drive App
Monthly Payment: $989.00 per month including FL 6% sales tax and registration

I told him get the payment to $980 and we probably have a deal. I do understand its a limited car, so they don't have to let it go.

I don't think I'm getting raped on the deal.

Seems high plus never negotiate by establishing a agreed upon monthly lease payment. There is roughly $6k difference between MSRP and invoice. Add dollars above invoice and subtract available incentives. The base rate for 10k/36 on a M3 coupe is .00125. Don't go to 39 months. It is a way for the dealer to "reduce" the payment by extending the term.

I would have the dealer define all of the variables including MSRP, incentives applied, cost, acquisition fee, money factor and shipping cost. It is a limited production vehicle compared to a standard 3-series but it is also year-end and the M3 has been on the market since 2008.

Can you post the dealer link of the vehicle that you are considering?

[thegeneral101]

^^ LRE w/manual

[thegeneral101]

@NHman, thanks for the help...can you explain the 36 vs 39 month more? I understand its lowering the payment a bit, but I mean either way I'm going to have a lease payment around 900-1000 for a while, so what does it really matter? Just trying to understand, and also giving you my reasoning.

[NHman]

Originally Posted by thegeneral101

@NHman, thanks for the help...can you explain the 36 vs 39 month more? I understand its lowering the payment a bit, but I mean either way I'm going to have a lease payment around 900-1000 for a while, so what does it really matter? Just trying to understand, and also giving you my reasoning.

By extending the terms from 36 to 39 months the residuals will change. Currently for 10k per year @ 36 months, the residual is 62%. This will allow you to have a reasonable payment.

What is the exact configuration of the M3 that you are negotiating on? From this I can work out the math for a payment. I am not a CA or associated with any dealer. Simply put, I have gone through the leasing process a few times and know the process.

[thegeneral101]

^^ PM sent

[NHman]

Originally Posted by thegeneral101

^^ PM sent

Just responded.

[ES BMW]

Use bmwconfig.com to play with the numbers but the money factor is .00125 and residual of 62% for a 36 month lease with 10K miles. Get them to explain why they are pushing you to a 39 month lease.

Hopefully you aren't dealing with one of the dealers down here in Miami. They DO NOT negotiate.

I just got a car for my wife at Ft Lauderdale BMW on Federal hwy at a few hundred over invoice with base MF and residuals.... and this was an ordered car.

PM me if you feel like giving it another try with a new sales person.

[NHman]

Originally Posted by My E90

Use bmwconfig.com to play with the numbers but the money factor is .00125 and residual of 62% for a 36 month lease with 10K miles. Get them to explain why they are pushing you to a 39 month lease.

Hopefully you aren't dealing with one of the dealers down here in Miami. They DO NOT negotiate.

I just got a car for my wife at Ft Lauderdale BMW on Federal hwy at a few hundred over invoice with base MF and residuals.... and this was an ordered car.

PM me if you feel like giving it another try with a new sales person.

Not listed in the post but the OP wants the LRE w/ MT. This reduces the options to what is available and how much that specific dealer will negotiate. I agree, the lease should be base rate at 36 months. The buy price might be higher vs. a standard M3. It all depends on how the CA and/or Sales Mgr sees the value and/or wants to close year end.

[thegeneral101]

^^ trying for 36mo now

[thegeneral101]

So the dealer is saying they aren't going to change the MF in a 36mo lease...but the residual will go to 62%....so payment will be higher.

You still think thats a better option?

He also said that the program incentives for december are all based on 39mo

[///M Ryder]

As others have pointed out....push for 36 months. If the dealer is pushing you go 39 they must be getting some back end funding. Now they won't admit that to you so if they insist on 39 months try to get more off the selling price. Money factor is also negotiable...BMWFS dosen't set the drive off rate so don't let the dealer throw that your way...............Phil

[///M Ryder]

Too lazy to read all the post but are you trading in your current car? If so make sure to maximize your trade and the tax credit.........Phil

[thegeneral101]

Originally Posted by ///M Ryder

Too lazy to read all the post but are you trading in your current car? If so make to maximize your trade and the tax credit.........Phil

nope, turning in my current lease at a completely different dealer.

[///M Ryder]

Originally Posted by thegeneral101

nope, turning in my current lease at a completely different dealer.

Hold on before you do that......If your current car is in good condition see if the dealer will buy it from you as opposed to lease ending it. You are giving up a tax credit that could save you a hefty amount of money.........Phil

[thegeneral101]

Originally Posted by ///M Ryder

Hold on before you do that......If your current car is in good condition see if the dealer will buy it from you as opposed to lease ending it. You are giving up a tax credit that could save you a hefty amount of money.........Phil

I'm getting a good deal on the lease turn in. Dealer is covering swapping exhausts (and re-welding x-pipe) and tires.

[thegeneral101]

they got back to me on the 36mo lease....the same MF, and the higher residual come to $989/mo as well