Cut the selling price down to $62,000 not sure about MF and got to a $723 payment or a one pay option that gets it to a $667 payment (not putting out $24K for this). We are still very far apart - about $3,500 in selling price of vehicle.
Which engine size version were you targeting as your MSRP is quite high. Did you mention a percentage discount to them you were looking to reach?
If the one pay is significantly cheaper couldn’t you loan the amount via a credit union at a much lower rate and save the difference between the lease rate and loan rate?
It is a 35i sdrive - pretty much loaded, not many x5 sitting with third row at this point. I did mention percent discount I was looking to reach and they said it would be difficult. I still think there is further to go as they are only 14.5% off before incentives. I am pushing for 18-20%.
The difference in one pay is about 7.7% cheaper. $667 vs $723, only first month due at drive off in the $723 option.
I went in and looked at the X5 loaners Woodlands BMW have a couple of days ago. I got a new sales guy who was eager but wasn’t much help. A note of caution about the loaner vehicles I saw, they’ve had really hard lives. I test drove one with 4k miles and it had several deep scratches, missing interior trim pieces, stained plastic, etc. If I hadn’t of known the mileage I would have thought it had 40k mileage. I know it’s only to lease but the condition of them is really poor. I’m amazed they didn’t get them detailed and paintwork fixed so they wouldn’t have to discount them so much and would shift them easier.
They gave me an awful quote even though I told them the numbers I was looking for, marking up the MF and including my incentives as part of the already advertised discount which was expected.
^^^ These TX dealers aren’t wanting to move right now. I was told today when circling back on a car that shows to have sat on their lot for 255 days (not sure if that is accurate via CarGurus). They could maybe meet my asking price, but were not interested bc I wanted a non marked up MF and tax credits.
Do you know if you can get tax credits for no charge or does BMW in TX require a 1% of MSRP in order to utilize them?
Tax credits are voodoo magic. It’s really difficult to find a coherent pattern with them. One thing that we have seen is that you’re not going to get a huge discount, base MF, and tax credits together. It’ll be 2 of the 3, but I’d be happy to see that proven incorrect (but haven’t seen any deals that have).
One good way to maximise it is to get a big discount, get the base MF, and use a trade-in vehicle to offset the tax. But of course you have to have the vehicle with a substantial value to do that.
The man @dfwguy listed the info he’s managed to collect on tax credits here: Fellow texans, how do you feel about leasing a vehicle in Texas? Other good info in that thread.
If I find a car at a BMW dealer out of state do they still have the ability to get tax credits from BMW for a TX lease? Say a CA dealer?
Doubtful. Seems like it’s done at the dealership’s discretion so the SoCal dealers probably don’t even know what tax credits are.
No, it’s a purely Texas thing. Basically Texas has to refund any excess vehicle sales tax paid back to the dealership, who have to offer it to customers but they decide when and who. It’s crazy but you can only get them in Texas.
On previous leases they were entirely free, now it seems like dealers have incorporated a 1% of MSRP in order to utilize tax credits. I mean it is still a great benefit, trade off of $3500-$4000 in taxes and in turn pay $500-$700 up front or rolled in.
Not sure if the entire benefit is still available or the 1% charge is just when they don’t really want to offer but can? Seems like they always have them just don’t want to use them.
When I was offered them at Sewell Audi they said it wouldn’t cover the whole 6.25% sales tax, but brought it down to ~1%. They didn’t put any stipulations on down payment, that sounds like a dealer preference not to do with any legal/tax requirement.
Yeah they seem to get them back as part of the dealership, I’m guessing they’re allocated by the Corporate Managers to the dealerships. Whether the state refunds them yearly/quarterly/monthly I don’t know.
Guess it’s time to play the waiting game and hope they want to move in December or BMW somehow sweetens the incentives mid-month or next with Holiday Cash…
Have you locked in your interest rate (incase it increases in Dec)?
I’d check back in the last week of November and see if any of them are more motivated.
^ I haven’t locked anything in, I know the fed may take more rate. Bmw is so much higher already than other manufacturers by 1-1.5% would seem crazy if they move it up again. Residual likely won’t hold 59% on a 36/10 though for the 2018 X5. I will monitor it by months end and see if something works out. Adding a $3500 option credit would be awesome though. Thanks for the help!
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the x3 we have been discussing which they wanted 900+ for FYI is currently in the shop getting all four shocks replaced and I quote “but it wasn’t in an accident” then they asked me when I could sign…
Here is what I got in Texas
MSRP - $63,485
Selling Price - $52,485
Residual - 59%
MF - 0.00182
Term - 36 months, 10k miles
Tax incentives of 5.25% so only pay 1% tax
Monthly payment - $624
Drive off - $976
Let me know what you guys think! I think I did pretty good.
Pretty good. I would sign.
^ if that is new and not a demo then I would likely take that deal. You could maybe push for a slightly larger discount as I am not sure what the selling price vs incentives are?
It’s a new car, not a demo. Tried pushing for more discount, but the dealer was already pushing back. Keep an eye out for December, supposed to have tax incentives and big discounts on the 2018 ones.
That’s as good a deal as you’re going to get on new, especially with that discount and sales tax credits combined.