2017 E300, P2 Demo with 1500 miles, $450 Per month

A few things the finance guy shared with me:

  • No Discount for Autopay. In fact, they can’t even offer to set you up anymore. I guess they want the car owners to set it up themselves online.
  • For each Security Deposit paid, they reduce the MF by 7 basis points. I started at .00110, paid 10 MSD, new MF is .0004 (Practically free! :-). The leasehackr calculator should probably be updated to fit these numbers.
  • Lease Manager told me they lose money on 90% of the deals they do. And make most of their money off service. Not sure if it’s true or not, not sure how they stay in business with just service.
  • Yesterday was the busiest day of the year, they usually sell 15 cars a day, that day, they were at 39 deals or so.
  • I think the last day to do this deal is 1/2/18. They can’t lease the 2017 demos after that.

How’d I do?

Year, Make, Model, and Trim: [2017 Mercedes E300, P2 1500 miles demo]

MSRP: [$65,185]
Selling Price: [$52,283]

Months: [36]
Annual Mileage: [7,500]

MF: [.0004]
Residual: [60% $39,117]

Security Deposit: [$5500]
Total Due At Signing: [$5996]
Monthly Payment (without tax): [$450]
with 7.65% tax Payment is $485

Zip Code: [80206]
Sales Tax Rate: [7.65]

Leasehackr Score: [11.6]

They don’t. There is holdback, incentive and bonus money for front gross.
Plus F&I makes an average of $1,600 to $1,800 per deal in a Benz store for finance backend gross.

Don’t let them fool you with that talk. Fleet manager at BMW told me that all their cars they buy at auction that are demos or loaners they get super cheap, and that while he can’t tell me the price they buy them for, it’s always less than the final sales price they give you, even if you get over 20% off MSRP.

Can auctioned demos be leased by the other dealer? I don’t believe so.

Actuallly the guy told me that all his demos are auction purchases from BMWNA.

I could see couple of them as auctioned in the Carfax history. I even saw one of them with engine/replaced and still eligible to be leased as loaner.
Apart from this one of the guys also told me that most of the 2017s sold as new in dec are mostly 2 pieces, which is why they sell it cheap (not sure about the authenticity) but they had one which had lot of discount.

Not sure if we should really worry about it if we have BMW warranty on top of them, but it certainly makes me rethink :slight_smile:

Ineresting. I always skipped auctioned loaners, didn’t think they could be leased, for some reason. My MB friend told me that they sell most of their loaners to a wholesaler in FL.

What does that mean? 2 pieces?

I think it’s all about whether the car has ever been registered or not, if they make it to auction without, they can still be leased out.

What I understood was that they met with an accident during loading/unloading/parking etc.

I’ve seen a demo that was considered “new” on a dealer lot, but had EXTENSIVE bodywork they disclosed on the sticker. The discount was stupid, like over 30% on a 2016 335i with all the bells and whistles, before incentives.

It still had the factory warranty, but I couldn’t bring myself to pull the trigger - this was almost a year and a half ago.

I see couple of them on the lot with bonnet covered with a white sticker? Does that mean they had some body work?

No, those come from the factory like that I believe - protects from damage during delivery.