Hello all, I know this is more than of a general question in terms of leasing, but I have decided to go for the i3 REx. I’ve done tons of work research on the car and even test drove it. I think I’m ready to start negotiating.
I’m in SoCal and looking to lease an i3 REx with Tech Package and Park Distance Pack. I’ve gone to Edmunds and Autonation to get the best prices from there and I’ve found a few suitable ones. They’ve even sent me offers but I know I’m supposed to reduce the MSRP before applying incentives.
I have about $8k in incentives (no loyalty or recent grad [graduated 3 years ago instead of 2]) and about $4k in rebates.
I know to expect ~12-13% off MSRP. Now this is a my first question, and I apologize if this has been asked ad nauseum but this is the first time I’m going to lease a car. How? How do you get 13% off MSRP? Do I start off with asking to get it $13% off or do I tell them I want the car for $X amount before incentives? I just don’t understand how to approach them or what my first email should be.
It’s really the only thing stopping me from starting.
You can’t reduce the MSRP. It is set by the manufacturer. You negotiate the sales price. Search the forum for negotiating and many good threads will come up. This one is my favorite: How to Get Actual Quotes Out of Dealers
If you are leasing you should calculate already what your monthly will be before you start negotiating so you get an idea. When you start talking to dealers tell them first you want sales price without including all incentives. Then minus rebates and apply residual and mf. This way if they talk monthly payments, you know your target that way as well. So you approach it both ways and if they ask how you got to it show your math.
But as I understand these great BMW deals, the first thing necessary is to bring the sales price down ~12-13%, then begin applying incentives, residuals, mf, etc.
I seem to not be able to get past step 1. I get a price of $55,000 from a dealership, but all they do is take incentives from the price they quote me, which half I likely don’t even qualify for. I don’t know if I should tell them “A BMW i3 REx isn’t worth $55,000” or “I saw some guy on the internet get it for $X”. I am just unsure on how to proceed or how to “prove” others have done this, and I know it’s possible.
The only reason I said 12-13% is because I thought the “golden standard” was 15% off the sales price, so I lowered it to be more realistic.
I don’t qualify for $12k incentives, but I do qualify for $8.5k, (EV Credit and OL Code), I would also qualify for $500 Fleet but I am going to use BMWCCA rebate of $1k instead, and they can’t be combined.
I thought the whole point was to negotiate price as low as possible first and then apply all my incentives.
What are you trying to “prove?” No sales manager cares that Joe Schmo from the internet got the car at that price. They’re going to try and get as much out of you as they can. As someone mentioned earlier, timing, kickbacks, inventory, etc…all play into this as well. If you feel you can get 13% off of the car, and dealer A is standing firm at 6%, move on to dealer B.
I hate to spoon feed but this is how i approach a dealer to reduce the MSRP
Google search all the dealers within 100 mile radius
Search for the car of your choice (BMW i3 Rex blah blah) in the dealers website. You should have the VIN number of the vehicle.
Call the dealer and tell them that they have a vehicle that has all the features that you like.
They will ask you to come down to the dealership to try out the car. I’ll tell them that i already drove the vehicle multiple times and i am calling to get the price of the car and if everything works out, i will be only at the dealership to take delivery of the car.
The sale’s guy will probably go to his manager get the sale price (this will include the incentives + 5% off discount before the incentives)
At this point you say that BMW already provides you with a iCredit (BMW call’s the federal credit as iCredit) of $7500 and the dealership is doing nothing with the exception of giving a 6% off of MSRP. Now you shoot the bullet to the head by saying that you are expecting a 13% off MSRP (If you need practice you can watch this: https://www.youtube.com/watch?v=jXEtOPMW2hM)
The sale’s guy will ask you to hold on a minute, go to his manager and tell you that the best he can get you is 10% or something. You have to again remind him that if he’s willing to give a 13% off, you can take the car right away that week.
This time he will get his final quote and if he says, that the best he can give you is 10.5% or 11.66 (given to me by a dealer), you can say 12% is the lowest that you can get to and you will take car that week if you can get 12% (reminding or physiologically saying that you are the best lead that can convert to a customer)
Also, tell them that other dealers are giving you 12% discount but the only reason you called them is that they have good online reviews and they have a car of your choice.
If it doesn’t workout GOTO Step 3 and CONTINUE with the next dealer. It would be better if you call them on the week before month end (June 18th in this case).
I prefer to email than call. I just tell them straight up what incentives, residual and mf is on the car (so they don’t start with their sales pitch), and ask them for their sales price. You should be able to get 13-15% off in SoCal. If you need help or want a SoCal salesperson recommendation who might get you that deal, PM me. @nGozz
I never go to dealerships once you know the car I want to lease. All negotiations should be done in your environment and not the dealership’s (email first and phone last). Once you get the quote(s) that suits your needs/numbers then call them and make arrangements for them to email the link to the credit app. Once credit app is filled out and approved then send the finance department a copy of your license and insurance so they can start the paperwork. Then have them detail the car and either you go down to the dealership to sign and drive (30 mins max) or have them delivery to your door. If you don’t trust the dealership then have them send you a copy of the lease contract/number sheet to verify the numbers before pulling the trigger. I doubt anybody would swim with the sharks without a shark tank then why go to the dealership unprepared? It’s all about control of the car buying/leasing process but once you go to the dealership (shark infested waters) you lose control. My last two cars where delivered to my house and I never once stepped a foot at that dealership and after inspecting the car, signing took a whole 15 minutes.
Thanks for the input guys, this is really helping out a first timer with a lease.
I know the deal is possible, it’s just getting over those first hurdles they throw at you and aren’t expecting.
@johncena I know you don’t want to spoon feed, but honestly you’ve given me the best advice so far, a breakdown of what you do and how. I’ll definitely use it. @Bimmer2 & @maguzma I’m definitely just sticking to email for now, I stepped foot in a dealership to drive it, then that was it. The internet is a great tool, and being able to negotiate from home is a huge plus.
I forgot, when you email dealerships try and use as much car leasing verbiage as possible for them to get the impression you know what you are talking about. I’ve noticed when I do, they don’t stall and send me responses right away. I use pull the trigger, Out the Door (OTD), zero customer cash, MF, residual etc… in them.
In addition, I like to contact the GM first and explain that if his deal is the best from what I have then this deal will be clean and easy for both of us. Generally, he/she run numbers and then refer me to the internet sales manager to complete the deal. If you can’t find the GM, then do an internet search on the dealership and GM you will get a phone number, Linkden profile etc…
Nerdy detail question JohnCena, do you know if loyalty (usually around $2000 for i3) would be given if I turned in my lease earlier this month? Or if I wait till end of June, 2-3 weeks before new lease?
Thanks Dave! Hope you’re well, you got any killer deals on i3 (Bev, rex, or s?) I basically want almost anything with the tech package if available.
Or, if there’s nothing like that, a leasable loaner demo 330e or 530e? I saw a few on your site but I wasn’t sure they’d qualify for lease if they’re 2017 models.
