I haven’t heard with any certainty when '21s are going to start arriving.
I’ve considered a 2020 (which are amazing) and after some thought, I know I would be a little bummed spending a significant amount per month for a car that has a refreshed model coming out within weeks. I have the time and we can get by with my wife’s car only for a bit if needed. Definitely not an ideal situation…
Mainly, are there a few BMW dealers/brokers that are recommended to ask about allocations or begin discussions about what I’m seeking? I have connected with Dan @nextlevelautobrokers and he’s been responsive but doesn’t have any allocations left. Also, he’s slammed with buyers who are ready for something now so I understand my deal isn’t priority.
June was a different story, they were trying to build up their orders, also this was probably through a dealer trying to secure allocations and move the unit quickly… could be for a bonus? To get more special models, etc etc. We don’t know the dealers motivation. Whatever it was that was a real good deal at the time, you can hit up @nextlevelautobrokers now and he might be able to get the same deal he might not.
Also you may be misunderstanding the m5 market, it has a cult like following(it is one of the two original M cars, m3 well m4 now, and m5) People with the pre-lci models like 2018s and 2019s would be looking to upgrade and for the first few months it would be tough, that $2500 incentive to lease disappears, the residual probably goes back to 55%, etc etc.
So even if he does get 10% he has to deal with a 5% residual cut… (last time I checked m5 was 60%)
Op is playing a dangerous game here, there are too many unknowns, not even factoring in the mf he doesn’t know if there will be any incentives, residual is unknown, dealer stock on lots, etc etc.
On top of all that b&o isn’t the most common option on an m5… if I were op I would target a '20 m5 or '21 m550, the premium between a pre and post-lci isn’t worth it unless you’re a hardcore m5 fan, planning to track a car, or can afford to throw $200-$300 to have the latest model.
Take this post however you want it, all pure speculation.
Love the candor! This is my favorite type of communication. I completely understand there are a bunch of unknowns that will most likely push the market to the 2020s and place a premium on the '21s. Right now I don’t qualify for any incentives on the M5. I don’t have loyalty, conquest only which is $0 based on the latest spreadsheets that I have reviewed.
Needless to say, I have MF and Residual which could definitely turn unfavorable when compared to the 2020. I haven’t leased a BMW right after a release but I have other models and my experience has been that the residuals have been higher out of the gate… Is that not the case with BMW?
Regarding MF, we are in a historic macroeconomic scenario where interest rates are going to be near the floor for at least two years. Would it make sense for BMW to jack the rates and potentially forego sales? Inventory is low so maybe make some additional spread on the financing…
My experience with leasing a BMW is this part of the vehicle’s life cycle is zero so I’d welcome past experiences with new BMW models rolling out and the impact on residuals and money factors vs. prior year models.
So for MY 2019 the m5 had a residual of 55% then they dropped a 2.5k incentive, eventually they increased it to 60% somewhere down the line.
As far as mf goes, I would imagine it stays the same or goes down because bmw standardizes mf. Like you said interest rates are all time low. But again who knows.
Also besides loyalty there is a $2500 lease cash from bmw, that is what I meant by incentives may disappear.
Can someone help me out. I live in Los Angeles, looking to lease the 36 months 12,500 miles 2021 M5 CP Sedan, there is 2 of them One sticker is 116k and another is 103k. Whats the deal I should be looking for numbers wise, Should I put minimal down? Do you recommend lesser down or more? I appreciate any and all advice.
Welcome to LH! Not knowing where you are, I roughly modeled out the deal in the LH calculator (2nd link below) for PA. Seems to suggest there’s some markup in there, perhaps on the MF, though that’s maybe to be expected on a LCI refresh. I’d pass on this one, imo, especially with NE brokers in marketplace offering comparatively better deals, such as:
Then again, depends on where you are. This may be great for Alaska. Check out the Marketplace for broker ads in your area!
Your deal roughly modeled, assuming a 9% PA tax that led to the 1480 number (should’ve been a 0.00082 MF, not the monstrosity that I ended up at):
You need to determine what a good deal is before talking to a dealer. Talking to dealers is for finding someone to do your target deal, not figuring out what a car should lease for. If you ever find yourself with a dealer offer asking “is this a good deal”, you have gotten ahead of yourself and set yourself up for failure.
I’m not posting about working out what a good deal is to be an ass, I’m doing it because that’s what is needed to be successful in getting a strong deal. Going in without the foundation of what your target deal needs to be puts you at a significant disadvantage. Use the resources here to learn how to give yourself the best opportunity for success as you can.
Mllc is 100% correct, though. You’ve read 20 min on this site, people appreciate when you try to do your research first and not just asking if it’s a good deal. If you don’t want to research here, go with a broker or at least start there looking at their offerings for similar car.
Check out the Marketplace for broker ads in your area!