2020 BMW M550ix Lease not yet a done deal

Ask the Hackrs
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1

New to this site, so please bear with me.

Car is 2020 BMW M550ix

MSRP $97,297 “76k base + $21 in options”
Dealer discount: $4,424
Loyalty incentive: $2,000
Lease rebates: $2,000
Money Factor: .00162
The residual is 59% or $57,992
Tax rate: 7%
No one said anything about the acquisition fee.
Lease offer: $1,239.15/month with $1,534.15 total due @ signing
Location: Indianapolis, IN 46240

I punched in the numbers in Leasehackr calculator and got a Leasehackr Score: 7.2

My only issue is the dealer discount here, it seems very low since the car has a base of $76 and then $21k in overpriced options. I think the car should get the $4k in discount if it was configured as a bare base. With such money going in marked-up options, I expect a better discount.

I tried asking for a better discount and the sales person said “There is only a 6% markup in a new BMW and I’m giving you the majority of it. After paying me a minimum commission, detailing and gassing your car, the dealership will only be making a few hundred dollars off of this deal.”
I was thinking of starting a GoFund me page for them!

Do you guys think I negotiate other aspects of the numbers above? Is it true that the $4k is a fair discount for such MSRP?
I’m new to the lease terms, but should I look into MSD?

2

Please just read like 2 threads to know this sucks

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3

Lol no, definitely not

4

Thanks for the replies. I just want to clarify that the $4k discount is in addition to the loyalty incentive and the lease rebate.

@Bostoncarconcierge , I read through some threads here, but only related to the BMW 550i, and did not get a definitive answer of how much is a fair discount by the dealer.

As I mentioned before, I know I deserve a higher discount is the car has a good chunk of MSRP $$$ going towards options.

We have only three BMW dealerships in Indiana, and I’m willing to travel to neighboring states if needed. Yet, I don’t have a clue about the fair discount that I should get. Also, I’m not sure how to check if I should be getting more rebates or incentives and the dealership is just going to be pocketing that.

5

That’s one way to approach this…

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6

As every thread says

10-12% off pre rebates w base MF

Maybe hire @kubikdanon if he serves Indiana

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It’s a bad discount at that base price of $76k, much less at $100k, and with a marked up mf.

You’d probably be overpaying by about $8k over the life of the lease.

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8

From Edmund’s moderators, it seems the ongoing MF is 0.00137, so the dealership marked-up MF of 0.00162 will yield them an extra $1,300. That’s in addition to the stingy discount from the MSRP.

9

The real question is why you are not getting an M5 with an MSRP that high?

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You should do some quick search here for M5, there are quite a few people get much lower monthly payment with higher MSRP.

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I wouldn’t bother too much trying to get good numbers in Indy. Dreyer won’t deal. They have too many people willing to pay full price and not negotiate. Try widening your search to other states.

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Best bet is to hire a broker and have the car shipped, you will save headache and money.
$1200 lease for an M550i is just too much.

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Yes but my guess is that it works for volume dealers (which can kick in hold-backs). if its a low volume, then 6% is all they are getting.

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If you know the deal is terrible and there is nothing about this specific car you are married to, then spending $400-500 on a broker seems like money well spent.

You’re in M5 turf indeed.

15

I don’t see myself in the M5 arena since the M5 will cost me an additional $25k if I get it with the same options. I’m very spoiled with the technology in my current 750i and don’t want to miss it with this lease. The M550i is quicker than my 750i and will get me the driving kick that I want with acceptable driving comfort.

I found the exact configuration as what I wanted in a car that’s already in the lot of a dealership in TN. It is only missing the ceramic controls option which is not a priority.

I will see if I can get the 10-12% off with them, which I doubt :slight_smile:

I have no clue on how to use a broker, and definitely a $500 in broker fees is acceptable in my world versus the stupid amount of haggle and hassle dealing with these shady sales associates in the dealership, the predators!

16

Said this before
«READ» up

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For where you are located, it is not a terrible deal although I would work on getting the base money factor. I do not think you will have any luck getting below 6% off in Indiana or TN on a M550 since the dealers do not play the volume game and inventory is low (total of 8 M550s for sale in both states). You will have better luck hiring a broker, but a $97k M550 will be hard to find.

19

So true, and that’s why I buy my cars from Illinois, NY and TX. Even Carmax would make sense on a trade-in. Also, I don’t need to count on getting a car that’s already on the lot if buying new.

At least, I know this was a ridiculous discount that I got, and I’m in no rush to get it locally.

20

I’d have a hard time downgrading to a 5 series from my 7. The new 750s are just as quick as the m550, and at least relative to these numbers, could be A similar cost

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21

True and that’s why I’m looking for full optioned M550i. Mine is 2016 750i with lower HP and longer 0-60 compared to the 2020 750. I can’t afford the 2020 750 though :slight_smile: