I’m working on a 2021 BMW X5 lease, and I’m wondering what my expectations should be in terms of % off msrp. I see brokers routinely posting 10% pre-incentives, is that something that a regular joe can achieve without a relationship? I was quoted a little over 5% off msrp currently. How do I get it closer to dealer invoice?
I also don’t have the MF he used yet I have to follow up but that should be negotiable hopefully. (Not interested in MSDs).
Lastly, is residual value a standard operation? I want to make sure that wasn’t decreased on me.
You can get residual value, Money factor for specific mileage/term/zipcode from Edmunds forums. Get rebates from the BMW site plus any affiliate rebates from this website. Plug those numbers into the LH calculator and see the score and other things.
5% over MSRP is a NO.
Yes, 10% pre-incentive is from brokers but I have got a dealer to do more than 10% but it was on the last day of the year and I did not get base MF. That said, I would say brokers definitely add value and a dealer beating them is a bit of work.
Sorry I wasn’t very clear in my post, I am currently being quoted ~5% OFF MSRP. I was wondering if I had a chance to squeeze more juice out of that without being a broker.
I checked edmunds for baseline MF and residual and will compare with his terms, thanks.
10% pre-incentive at base MF is definitely possible for an average joe but like anything it can require a little effort and oftentimes casting a wider net than your local dealers.
Also when you email a dealer for a quote of course their first response will be so-so at best (like 5%). A dealer is never going to offer an aggressive LH worthy deal right off the bat.
Your best strategy is to do your homework and know the numbers like the back of your hand. Use the calculator to build your target deal. When you’re ready to pull the trigger, tell the dealer you’ll be in to sign today if they can get to $XXX payment with $YYY DAS (whatever your target deal is).
And not all dealers will play ball (see casting a wide net above), if they balk or can’t get to your number just thank them and move on to the next dealer.
Yes, it is possible. You absolutely need to know the numbers inside/out. And you may only get close to what you want by being ready to commit to work with that dealer and with what is in inventory. I don’t settle when it comes to cars, so you have to take into consideration how much leeway you will allow.
You said that you didn’t want to work with a broker, but depending upon what you want, it may make more sense to pay their cost to get what you want. And don’t forget running around to dealers is also costly in a sense.
I’ve never used a broker before because I was always able to get the terms I wanted, but this time around I used a broker and it was an easy process for me and the fee was worth saving my time.
Thanks for the feedback all! It’s not so much that I’m opposed to using a broker, I just want to see what I can do on my own. I definitely need to familiarize myself more with all variables involved but it’s encouraging to hear 10% off is achievable.
Thanks again
