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      03-12-2013, 05:11 PM   #1
InTheNightKitchen
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Dealer called wants my '11...

My dealer called me today, and said they are interested in my 2011 E92 M3 and would put me in a '13 E92 M3 for around/or the same price.

I was busy at work so I asked if they could call me back. Any idea why'd they do this?
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      03-12-2013, 05:15 PM   #2
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Originally Posted by InTheNightKitchen View Post
My dealer called me today, and said they are interested in my 2011 E92 M3 and would put me in a '13 E92 M3 for around/or the same price.

I was busy at work so I asked if they could call me back. Any idea why'd they do this?
It's just a sales tactic.

Unless you are in a lease, you'd lose all the equity you built up in the car. The dealer makes a ton of money reselling used cars. There is no way they would pay you over market price for your car.

I always get a "We want to buy your car!" flyer when I bring it in for service.
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      03-12-2013, 05:15 PM   #3
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For around the same payment per month. Not for the same price.
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      03-12-2013, 05:21 PM   #4
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Quote:
Originally Posted by Z K View Post
It's just a sales tactic.

Unless you are in a lease, you'd lose all the equity you built up in the car. The dealer makes a ton of money reselling used cars. There is no way they would pay you over market price for your car.

I always get a "We want to buy your car!" flyer when I bring it in for service.
Yes it's a lease!

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Originally Posted by Longboarder View Post
For around the same payment per month. Not for the same price.
Yeah I believe that's what she said. So from what you're saying I have nothing to lose at this point? Their gain is mine as well, right?
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      03-12-2013, 05:49 PM   #5
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Quote:
Originally Posted by InTheNightKitchen View Post
Yeah I believe that's what she said. So from what you're saying I have nothing to lose at this point? Their gain is mine as well, right?
Not at all. To make your payment the same, they would just make the terms of the loan longer to accommodate the numbers. You're likely to pay WAY more in total.
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      03-12-2013, 05:54 PM   #6
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Not at all. To make your payment the same, they would just make the terms of the loan longer to accommodate the numbers. You're likely to pay WAY more in total.

Ahhhhhh, ok. No, no, no, none of that I'm good with the numbers when it's signing time. BUT, I'll hear what they have say, never know
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      03-12-2013, 05:55 PM   #7
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Ahhhhhh, ok. No, no, no, none of that I'm good with the numbers when it's signing time. BUT, I'll hear what they have say, never know
they hooked one.
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      03-12-2013, 05:56 PM   #8
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they hooked one.
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      03-12-2013, 06:08 PM   #9
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You never know, worth looking at the numbers. Agreed they usually sucker people in on the same monthly payment sales pitch but if you know what you are looking at you will find out quickly whether they are screwing you or not. Could be a good deal if they are just trying to drive sales....
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      03-12-2013, 06:19 PM   #10
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likely will be same or close on monthly payment but extend what you owe for another 3 plus years. so it will look like great i can afford that payment but really need to add up total due.
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      03-12-2013, 06:20 PM   #11
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Quote:
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Not at all. To make your payment the same, they would just make the terms of the loan longer to accommodate the numbers. You're likely to pay WAY more in total.
yep. If you're in a lease and they're offering another lease, it's essentially having you re-sign a new lease, and they basically made 2 years of interest off of you and they can keep in you the same car for another X years in a new lease. Plus, they'll make more profit selling your 2011 as a CPO.


hmmm maybe a bmw dealership is a for profit business?
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      03-12-2013, 06:40 PM   #12
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Quote:
Originally Posted by Z K View Post
It's just a sales tactic.

Unless you are in a lease, you'd lose all the equity you built up in the car. The dealer makes a ton of money reselling used cars. There is no way they would pay you over market price for your car.

I always get a "We want to buy your car!" flyer when I bring it in for service.
THIS
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      03-12-2013, 07:01 PM   #13
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Although I agree it is just a sales tactic (I get these in the mail constantly) - if they are looking for business enough to call you, you are in a lease, and you want to stay in a new m3 longer they may be willing to deal. If they buyout the old lease and get you in a new one now without any costs, why not?

That should be just about enough time for all the kinks to get worked out of the new m4.
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      03-12-2013, 07:11 PM   #14
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Although I agree it is just a sales tactic (I get these in the mail constantly) - if they are looking for business enough to call you, you are in a lease, and you want to stay in a new m3 longer they may be willing to deal. If they buyout the old lease and get you in a new one now without any costs, why not?

That should be just about enough time for all the kinks to get worked out of the new m4.
This , it can't hurt to hear what they say, It's not like I lose anything if their talk makes me walk.
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      03-12-2013, 10:13 PM   #15
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Quote:
Originally Posted by Z K View Post
It's just a sales tactic.

Unless you are in a lease, you'd lose all the equity you built up in the car. The dealer makes a ton of money reselling used cars. There is no way they would pay you over market price for your car.

I always get a "We want to buy your car!" flyer when I bring it in for service.
You can have equity even with a lease car. My cars payoff is right at $40k right now for my 2011 M3 for which I can probably get a quick sell at $46k+ and it is leased. You are right though..you would be better off selling the car pocketing the difference and move on from there.

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      03-12-2013, 10:22 PM   #16
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Quote:
Originally Posted by scm6079 View Post
Although I agree it is just a sales tactic (I get these in the mail constantly) - if they are looking for business enough to call you, you are in a lease, and you want to stay in a new m3 longer they may be willing to deal. If they buyout the old lease and get you in a new one now without any costs, why not?

That should be just about enough time for all the kinks to get worked out of the new m4.
+1
They're putting you in a 2013 M3 versus 2011 M3 that you currently have. Even with the same payments, obviously they would extend your lease term. Let's say your current lease was 3 years and after 2 years they're putting you in a new car, it would only make sense to restart the term of 3 years. Now if they extend the term by 5 years, than that's a different story.
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      03-13-2013, 03:25 PM   #17
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How many months before your lease ends?
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      03-13-2013, 08:08 PM   #18
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they hooked one.
LoL...
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      03-14-2013, 10:23 PM   #19
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      04-02-2013, 10:51 PM   #20
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The amount of misinformation here is appalling.

BMW as well as other manufacturers have pull forward money to get you out of your lease early. BMW is usually around 6 months and Porsche is running a deal right now for an 18 month pull forward on some models.

The whole idea of a lease is to be in a new car every three years. If you buy a car and then sell it in less than 3 years, you should have leased it. Yes, even if you have to pay to get out of the lease. If you do the financial analysis there is absolutely ZERO DIFFERENCE between buying and leasing over a three year period and many times leasing is financially advantageous if you take into consideration the opportunity cost of capital.

The other consideration is sales tax. In most states the tax is paid on the portion used monthly. Ex $65K purchase price at 8.25% (my local sales tax) is $5362 in sales tax. On a lease with a 61% residual you only pay $2091 in sales tax, plus you get the use of your money over a three year period. Total savings would be over $3K just in sales tax! If you financed your car you are paying interest on that sales tax!

If you paid cash the value of your $70,369 at the end of three years would be over $91K (assuming a 9% investment return) which means you lost $20K+ in investment income.

I understand that people make decisions for different reasons. Some people just like the feeling of "owning" a car. That is an emotional decision and not a financial one. I do not advocate maxing out lease payments at 25% of gross income (this is BMWFS max under the college grad program!), but saying that leasing is stupid or that the dealership is trying to rip him off is idiotic. Unless he wants a different car the real question is why WOULDN'T he re-up the lease? New car for same money before the end of the lease is a great deal for him unless he has a huge amount of equity (which would mean the bank screwed up).

So who here is going to keep their car for 5+ years? My guess is very few, so why didn't you lease?
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      04-03-2013, 04:00 AM   #21
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Quote:
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The amount of misinformation here is appalling.

BMW as well as other manufacturers have pull forward money to get you out of your lease early. BMW is usually around 6 months and Porsche is running a deal right now for an 18 month pull forward on some models.

The whole idea of a lease is to be in a new car every three years. If you buy a car and then sell it in less than 3 years, you should have leased it. Yes, even if you have to pay to get out of the lease. If you do the financial analysis there is absolutely ZERO DIFFERENCE between buying and leasing over a three year period and many times leasing is financially advantageous if you take into consideration the opportunity cost of capital.

The other consideration is sales tax. In most states the tax is paid on the portion used monthly. Ex $65K purchase price at 8.25% (my local sales tax) is $5362 in sales tax. On a lease with a 61% residual you only pay $2091 in sales tax, plus you get the use of your money over a three year period. Total savings would be over $3K just in sales tax! If you financed your car you are paying interest on that sales tax!

If you paid cash the value of your $70,369 at the end of three years would be over $91K (assuming a 9% investment return) which means you lost $20K+ in investment income.

I understand that people make decisions for different reasons. Some people just like the feeling of "owning" a car. That is an emotional decision and not a financial one. I do not advocate maxing out lease payments at 25% of gross income (this is BMWFS max under the college grad program!), but saying that leasing is stupid or that the dealership is trying to rip him off is idiotic. Unless he wants a different car the real question is why WOULDN'T he re-up the lease? New car for same money before the end of the lease is a great deal for him unless he has a huge amount of equity (which would mean the bank screwed up).

So who here is going to keep their car for 5+ years? My guess is very few, so why didn't you lease?
Oh, the irony. For someone who's appalled by misinformation, you had to do your own share of spreading misinformation? Add miscomprehension to your misinformation problem.

1. BMW Lease "Pull Ahead" program typically waives 3 payments (not 6).

2. Why are you arguing about lease vs. finance/buy? No one here is arguing one is better than the other.
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      04-03-2013, 07:19 AM   #22
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If you paid cash the value of your $70,369 at the end of three years would be over $91K (assuming a 9% investment return) which means you lost $20K+ in investment income.

?
thats not accurate because you did not account for the amount of interest that would be paid on a lease / financing a new car. plus, assuming a 9% rate of return is pretty ambitious.

also, not all states only tax the residual value of the lease.

agree with the others on this, i guess its worth listening to them, but all they are going to do is have you pay the same amount of money per month with a longer term. unless you want to do this for some reason and need a newer car, i dont understand why you would.
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