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      07-18-2010, 09:27 PM   #1
ciantosca
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ED Lease leaving me sour

So I am 2 weeks out from leaving for my first ED ( 9/6 )with my wife and 2 small kids and super pumped.

I spent a ton of time here getting a feel for the market and thought I did well back in March negoitating $ 800 over Euro invoice for a well equipped 2011 M3 sedan ( US list $ 70,800, negotiated price $ 62,485 ). I planned to pay cash for the car but knew I had 2-3 weeks prior to pickup to arrange BMWFS finance or leasing should I decide to go that route.

I end up finding a great real estate investment between now and then so I need to lease. Met with dealer last week, made it clear I was informed of July MF .0018 and residual 55% and wanted 36 months 10k miles/yr lease w/ min money down.

Here is what I got:

Aquisition fee $ 925
Doc fee $ 289
Title fee $ 80
Reg fee $ 75
Sec deposit $ 1000
negotiated MF .0022
Payments $ ~950 month

They started by marking up money factor .002
Here is the MF breakdown as I understand it.

MF .0018 + .0003 ( Euro deliv markup for 2nd payment being waved ) + .02 dealer buy rate markup = .0023 effective MF

Needless to say I was pissed. My question is who is leasing and not paying a MF dealer markup. I know they are allowed to markup as much as .004 but it just seems wrong in conjunction with $ 289 doc fees + $ 200 markup on acq fee.

I ultimatly negotiated MF markup down to .001 but they made me feel awful and directly insulted me in the process. I now have a lousy impression of my dealer who until now has been great with the whole process.

Now I am confused, am I a cheapskate or was the dealer trying to play me and take advantage of my change of circumstance.

Thanks.
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      07-18-2010, 10:15 PM   #2
dimabimmer
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I think they were trying to take advantage of you. Doc fee, and all other fees they can not explain and MF mark up,- is just the way they bump a customer at a very last moment.
I've been charged Doc fee, and I know it's BS, but I don't care,- I want this kid,-CA make some money... since he honestly gave me $250 over invoice, I will insist on paying doc fee so he could buy his girlfriend some ice cream...

You have to be absolutely fierce with them, or else...
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      07-19-2010, 08:27 PM   #3
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No need for buyer's remorse...you got a good deal. Did someone get a slightly better deal than you, ya, but so what...not much difference and its water under the bridge at this point anyhow. You certainly didn't get ripped off. I don't understand people that demand the base rate or claim they are being ripped off. My company doesn't work for free, does yours? There are some dealers that will do ED at base rate and no markup on acq fee, etc., so buy from them if you want...but will most likely mean long distance travel, out of state reg issues or shipping the car so it won't save you much. I got lucky and a fairly local dealer is one of the best in the nation, so I give them my business.
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      07-20-2010, 02:28 AM   #4
enigma01
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This is the reason why it's so important to go with a dealer that you trust and built up a relationship with, not a random one that will give you the car for $100 less than the next guy. A dishonest dealer can and will figure out a way to screw you with another fee at the last minute.

Also, you should've anticipated that you *may* need financing and negotiated the terms before hand. Like you, I typically pay cash for my car, but I also negotiate the financing terms just in case. You never know how your finances will change in a few months (e.g. last minute emergency).

It's a bit too late, but it's a lesson learned.




Quote:
Originally Posted by ciantosca View Post
So I am 2 weeks out from leaving for my first ED ( 9/6 )with my wife and 2 small kids and super pumped.

I spent a ton of time here getting a feel for the market and thought I did well back in March negoitating $ 800 over Euro invoice for a well equipped 2011 M3 sedan ( US list $ 70,800, negotiated price $ 62,485 ). I planned to pay cash for the car but knew I had 2-3 weeks prior to pickup to arrange BMWFS finance or leasing should I decide to go that route.

I end up finding a great real estate investment between now and then so I need to lease. Met with dealer last week, made it clear I was informed of July MF .0018 and residual 55% and wanted 36 months 10k miles/yr lease w/ min money down.

Here is what I got:

Aquisition fee $ 925
Doc fee $ 289
Title fee $ 80
Reg fee $ 75
Sec deposit $ 1000
negotiated MF .0022
Payments $ ~950 month

They started by marking up money factor .002
Here is the MF breakdown as I understand it.

MF .0018 + .0003 ( Euro deliv markup for 2nd payment being waved ) + .02 dealer buy rate markup = .0023 effective MF

Needless to say I was pissed. My question is who is leasing and not paying a MF dealer markup. I know they are allowed to markup as much as .004 but it just seems wrong in conjunction with $ 289 doc fees + $ 200 markup on acq fee.

I ultimatly negotiated MF markup down to .001 but they made me feel awful and directly insulted me in the process. I now have a lousy impression of my dealer who until now has been great with the whole process.

Now I am confused, am I a cheapskate or was the dealer trying to play me and take advantage of my change of circumstance.

Thanks.
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      07-20-2010, 03:07 AM   #5
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It is about a relationship, and clearly they could care less...

I'd ask them what they would like you to do with the nice dealer survey that is coming your way???
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      07-20-2010, 07:02 AM   #6
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Unfortunatly it is a game. Their job is to sell you a car, make you feel happy, and make the most money. The good dealers can read people very well and Know what to say, price to give you, to make you bite and make the average guy feel like they got a deal. How many people know the base mf when buying a car? I find that the lease estimates at leasecompare and edmunds are always higher then what we talk about here. My guess is those fees you were quoted were the dealers usual markups, and you are one of the few that knows it.

But, as I told my dealer when he looked hurt, I didn't blame him when he tried to rape me, don't blame me because I spent the time to get other offers and a better deal. What were the numbers that your dealer was throwing around before you started negotiating the first time - I bet he highballed you at first.
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      07-21-2010, 02:52 PM   #7
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Quote:
Originally Posted by ciantosca View Post

Now I am confused, am I a cheapskate or was the dealer trying to play me and take advantage of my change of circumstance.

Thanks.
I think if you got a decent deal, e.g. invoice or invoice + 500, then split the LAF fee mark up and the allowable MF mark up, so +100, +0.0002 or whatever the decimal is, it's a fair deal for both parties. It looks like they charged you the full 200 mark-up and a bogus doc fee, so I wouldn't feel cheapskate for making it up on the MF if I were you.
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      07-27-2010, 04:00 PM   #8
iczer34
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To answer your question: NO, you are NOT a cheapskate.

So what if the dealer was trying to take "advantage" of your circumstance? That's their job. Luckily, you were well informed of current lease rates and pricing - so you negotiated. That's a win for you!

Take this as a lesson learned that the dealer put you in a position to doubt yourself. Which, to me, is not right. I'd understand if you kicked their dog in the process but you didn't - so fcuk them.

I would not press the issue any further since they can still screw around with your ED (i.e. change dates on you, not call you when the car arrives in the US, etc.). Once you get your car back in the US and drive-off their lot, don't ever return or give them extra business :P

I've purchased/leased 4 BMWs over the years at the same dealership, nothing beats customer service and honesty. As long as you are fair and let them make some money too

Have fun on your ED, I enjoyed every minute of mine. Stock up at the free lunch cafeteria, excellent drinks and snacks! Don't forget the 12-hour rule (per bimmerfest.com), karma will get you. I ignored the rule and I curbed a rim somewhere in Europe and didn't even know it until I dropped it off in Frankfurt. Luckily my dealership processed the repair quickly, hehe.
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