Lease offer, is this dealer crazy??!!!!

[///AVE HT]

Hello, My name is Nicholas and this is my first post here. I've been on the board for a better part of a year but just registered the other day. I have found tons of useful info and want to thank all of you for your Knowledge.
I have had several BMW's in the past including an E46 M3 and currently own an E90 335i.

I'm coming out of a 2003 Audi RS6 (catastrophic engine failure due to a bad oil change; a story for another time) and into an F80 M3. I'm supposed to take delivery in two weeks but want to make sure the dealer isn't screwing me on the lease.

Build:
2016 F80 M3
San Marino Blue
All options except CCB and park assist
SS full leather
Silver 19" rims

MSRP $84,695.00
Negotiated for $2k over us invoice: @$71,500.00
$1000 build allowance
$2000 BMW loyalty check


36 months
10k annual miles
$25,000 out of pocket
Money factor is 0.00245
No MSD's included (or offered)
Residual is $61,000
Lease end value $51,663.95
Monthly payment: $540

**I've attached the build offer**

I told the dealer I want a better offer and they said:

"We will not negotiate until the car gets to the lot. We would also prefer not to redo the credit app."



It should also be noted that I have a mid 600 credit rating and my 335i is currently financed. I told the dealership I could payoff/trade in the current 335i and they said it wouldn't matter towards the financing.

Am I missing something????

Thank you very much for your input and time.

[///AVE HT]

Forgot to mention, build credit and loyalty money was not included in lease offer.



Thanks!

[Ramos]

Why on earth would you put this much money down on a lease??

[MRCUR]

They are 100% screwing you with that money factor. It should not be higher than the buy rate, which is currently .00132. Also, it is highly recommended that you do NOT put money down on a lease - especially a huge amount like you currently have.

Read through the Leasing 101 sticky and look through the 2016 Pricing thread. I think you'll see pretty clearly what you need to work on with the dealer.

Also - they don't need to resubmit the credit app to adjust the MF. Call their bluff if they say they do.

[Alvinized52]

Damn! This one of those moments where im glad i have been careful about my credit rating. Its like the key to everything you want in life in this country. One less excuse to give the dealer to steal your wallet.

Fortunately for me, i have great fico over 798+ ( even had a 814 ). With that I went to get qualified by my one credit union banks outside of BmW to give me a lease finance option with very low rates. I brought that to BMW to see if they can beat it, so able to leverage it and got mine at invoice price and a better deal... Very little down to lower my monthly even more. I did this before i ordered the car to get maximum leverage.

Prepare to walk away.

[///AVE HT]

Thanks for the input. I have gone through the leasing 101 thread to great depth. the dealer said "with mid 600 credit this is the best MF your going to get. And that ONLY with $25k down and multiple exceptions"

So I am here asking if I should just walk away if they will not negotiate.

[RickFLM4]

Personally I'd walk away, buy something much cheaper (or keep 335) and work on getting credit score up before going back for something more expensive. I wouldn't put $25K down on a lease, nor pay nearly 2x standard BMW rate.

[visi107]

Originally Posted by ///AVE HT

Thanks for the input. I have gone through the leasing 101 thread to great depth. the dealer said "with mid 600 credit this is the best MF your going to get. And that ONLY with $25k down and multiple exceptions"

So I am here asking if I should just walk away if they will not negotiate.

Walk away? Dude RUN as fast as you can.

Another idea though if you are willing to put that much money down, why not look at buying the car?

[TB///M3]

what's this 2k loyalty check?
new program?

[///AVE HT]

The loyalty credit was for :
**Short version** I was driving and already had my F80 build in process
my ex-girlfriends 2012 650i vert left us stranded in the middle of the road when the car shut off due to transmission failure notice and wouldn't restart. Tried to get it towed by AAA and they couldn't get it into gear either. Ended up calling BMW roadside. The car was stuck in traffic for over 6 hours. They ended up replacing the motor saying they found shards of metal, but couldn't determine the cause of failure.

It was a bad day!!

As to buying: I'm getting divorced and she can't have it!

[deplaya]

My recommendations would be:

1) Find another dealer if this one won't deal. They are lots of dealers out there willing to deal (look out of state if you have to).

2) Try to find a dealer that will offer a base MF (.00132) or close to it. I'm not sure how much your credit score plays into this but I would still hunt around.

3) DO NOT PUT 25K DOWN ON A LEASE.

4) Do put money into MSDs(7 * your monthly payment rounded up to the nearest 50). This will drop your MF below the base by a certain percentage and you will get your money back at the end of the lease.

5) Put the 25K - 7 MSDs into an account and make your monthly payment from that.

[///AVE HT]

Thank you Deplaya, I'm going to go the MSD route as you mentioned. Thanks!

I could buy the car outright but want to build my credit.

[deplaya]

Originally Posted by ///AVE HT

Thank you Deplaya, I'm going to go the MSD route as you mentioned. Thanks!

I could buy the car outright but want to build my credit.

No problem dude. Don't believe the stories some of these dealers tell you and shop around as much as you can. These days ordering a car from a dealer on the other side of the country is almost as simple as order something from Amazon (well not exactly, but close enough).

[TB///M3]

Originally Posted by ///AVE HT

The loyalty credit was for :
**Short version** I was driving and already had my F80 build in process
my ex-girlfriends 2012 650i vert left us stranded in the middle of the road when the car shut off due to transmission failure notice and wouldn't restart. Tried to get it towed by AAA and they couldn't get it into gear either. Ended up calling BMW roadside. The car was stuck in traffic for over 6 hours. They ended up replacing the motor saying they found shards of metal, but couldn't determine the cause of failure.

It was a bad day!!

As to buying: I'm getting divorced and she can't have it!

Ah, ok , thanks for explaining, and sorry for your expedience.

Thought there was a program out I didn't know about.

[DocWeatherington]

Originally Posted by ///AVE HT

Hello, My name is Nicholas and this is my first post here. I've been on the board for a better part of a year but just registered the other day. I have found tons of useful info and want to thank all of you for your Knowledge.
I have had several BMW's in the past including an E46 M3 and currently own an E90 335i.

I'm coming out of a 2003 Audi RS6 (catastrophic engine failure due to a bad oil change; a story for another time) and into an F80 M3. I'm supposed to take delivery in two weeks but want to make sure the dealer isn't screwing me on the lease.

Build:
2016 F80 M3
San Marino Blue
All options except CCB and park assist
SS full leather
Silver 19" rims

MSRP $84,695.00
Negotiated for $2k over us invoice: @$71,500.00
$1000 build allowance
$2000 BMW loyalty check


36 months
10k annual miles
$25,000 out of pocket
Money factor is 0.00245
No MSD's included (or offered)
Residual is $61,000
Lease end value $51,663.95
Monthly payment: $540

**I've attached the build offer**

I told the dealer I want a better offer and they said:

"We will not negotiate until the car gets to the lot. We would also prefer not to redo the credit app."



It should also be noted that I have a mid 600 credit rating and my 335i is currently financed. I told the dealership I could payoff/trade in the current 335i and they said it wouldn't matter towards the financing.

Am I missing something????

Thank you very much for your input and time.

I agree with others don't do any money down.. do MSDs

Why don't you do PenFed Payment saver? If your final price is 71,500.00 out the door including your 2 Mentioned rebates.

Looking at your post your wanting the lowest possible payment .. and in the end I assume plan on buying the car? PenFed Payment Saver in concept is the same principal as a lease with a balloon due at the end, except non of the strings of a lease. But neither the residual value protection of a lease in the end. Which I wouldn't fear that, the history of BMW and M3s are solid.

Year
2016

Model
M3

PURCHASED Value Price: 71,500
An I used your 25k as a down payment.

Residual Value
$39,600

APR
1.74%

Monthly Payment
$254 for 36months

Final Payment
$39,854

** That doesn't take in consideration the tax side of things... But my math with your taxes puts it at $437 with the added $6500 added back in
https://netmember2.penfed.org/NetMem...?section=PLGRD

I would ask the dealership for the cash price OTD with taxes and fee and your trade( After you take your trade to CarMax for an estimate)..
Take that number do your 25k down then go to PenFed and punch in the numbers and see what your payment is.


Yeah the residuals are off, but PenFed doesn't look at all the extra options that are added that have no real value. An I believe they use 15k per year for there Residual values.

$254 for a 36month with a balloon due of 39,600 isn't bad. Which if your miles are low, no reason a 3yr M3 shouldn't return more value than that. PenFed does include GAP insurance with the loan. Food for thought you can actually pay more a month if you want, or if in 2months decide you don't want the car sell it yourself. You just have to have the loan paid with no negative equity which with 25k down you won't. Again more flexibility

If your goal is to build your credit this would also work but is more beneficial in the finance department. An I know PenFed can be hard to get a loan approval for 1st time buyers but if you mention your doing 25K down, you will get approved..


I agree with others no reason you can't find a lease deal in the 700-850 with little or no money down. If leased/purchased I would pay the taxes up front and put as little money down as possible. Invest the 25k...but we all need credit and have to pay dues to get it. So I understand your battle.

[TN_3]

Am I missing something, or does $2k above invoice being $71,500 on a $85k M3 seem wrong?

This deal doesn't pass the sniff test based on that deal worksheet.

[drexplode]

row 8 does not reflect your agreed upon price.

MF is way too high.

Any dealer who says "we can't negotiate pricing until the car arrives" is playing games. I've heard this many times and walked away every time.

[///AVE HT]

TN_3,
Not sure how I missed that....

It's $81,500.00 before discounts, great catch. sorry!

[///AVE HT]

Doc,
The heads up on PenFed is great, I'll look into that option.

[firedown31]

Yes, your dealer is crazy. Your sale price is alright, the $3k incentives make it good. But the lease write up is a complete rip off, as said never put anything down on a lease. I don't know how set on a lease you were but I would go for outside financing if the dealer isn't budging. As mentioned penfed is great.

[guni]

Don't take this personally, but if you are getting divorced and have a 600s credit score, getting into an 80k car should not be in the priority list.

As to the lease deal, walk away. That money factor implies a close to 6% rate, which is ludicrous. For comparison, I got about 1.2% on my lease. Do NOT put money down.

[DocWeatherington]

Originally Posted by guni

Don't take this personally, but if you are getting divorced and have a 600s credit score, getting into an 80k car should not be in the priority list.

As to the lease deal, walk away. That money factor implies a close to 6% rate, which is ludicrous. For comparison, I got about 1.2% on my lease. Do NOT put money down.

Haha.. hopefully he is taking her to the cleaners before she takes him.. lol or was at least prepared with a pre-nub/slush fund.