Sorry to post a finance offer on leasehackr. I know this is a lease forum but I figured the data points would still be very helpful.
I got this offer from a LA dealership. It’s a 2021 X5 xdrive 40i, with premium options package and parking assistance package.
MSRP: $67,445
Price before incentive and rebate: $60,445 (10.38%)
Rebate: $2.5k (finance cash) + $1k (corporate fleet rebate)
Total: $56,945, which is 15.6% off of MSRP, + tax, title and license
This deal looks solid to me. However, the dealer marks up APR to 2.9%, which makes this deal much less competitive. Does anyone know if I can negotiate APR with this dealership, and even ask the dealership to offer an APR lower than 1.9%?
I don’t know about Cali, but I know in the northeast the offer on a new car is 1.9% at up to 60 months so no, you can’t negotiate lower than 1.9%.
As for getting it down from 2.9% to the base, assuming that 1.9% is the base in Cali, that is something you can work on or ask for more discount to offset the APR bump, but it seems like you’ve got yourself a fairly solid deal so far.
Buy rate is 1.9% this month. (for 60 months). If your term is longer it will be more.
But no one here can tell you what that dealer is going to be willing to do on that deal.
If your happy with everything else I would tell them that you’ll buy car if they do the 1.9% and to take it or leave it at that. If they say they are unwilling either try another dealer, walk away from the deal, or just buy the car.
On a 60 month terms 1.9 vs 2.9 is about $25 a month.
The dealership is marking it up exactly how? Usually the rule of thumb, and exceptions exist, is Low APR or Cash from most automakers.
Can you confirm the finance cash has stipulation that says BMWFS will combine both low APR with cash offer?
If cash can not be combined, check market rates around Credit Unions and banks…typically right now 2.9/60 is the gold standard. You can lower that a couple of points based on auto debit, truecar, and certain mfg agreements if you have been a loyal customer at select institutions
Seems like it actually includes it (I removed some extraneous language from here):
“Through May 02, 2021, 1.90% APR financing for up to 60 months on any new 2021 BMW X5 xDrive40i model available from participating BMW dealers to very well qualified customers who meet BMW Financial Services NA, LLC credit requirements. $2,500 APR Credit is a credit against the MSRP of the vehicle purchased. APR Credit and Loyalty/Conquest Certificate available for eligible BMW Financial Services customer only. All credits valid through May 02, 2021. Credits may be combined with other offers unless otherwise stated.”
I have seen some things with other brands where you pick between 0% financing with no incentives or the 2.9 with a bunch, obviously up to the customer to determine which makes more sense.
I have a very flexible timeline. My target is to get this deal done by the end of May, so time is on my side. As for resale value, I was thinking about owning the car for 3-4 years and then sale it at ~50% of MSRP.
I’m under the impression that in the past several years, there were more competitive rebates/discounts around Memorial Day, so would you recommend me to wait until then? Thanks
Looks like this offer is not a either or. They way I read it is that you can get 2500 off and get financed at 1.9% for 60 months. So I concur with previous poster would offer to take the deal if dealer agreed to 1.9%
Have not seen anything less then 2.89% to refinance externally on a 60 month. There are options to decrease if you lower the amount of time, but then you bump the monthly. Any savings would also need to be factored into the time spent on the process.
Usually, for ease just try to jump on the lowest rate on delivery if the incentives package is low.
Yeah that’s how I interpreted that offer as well. Also considering take it with 1.9 or leave it. Overall, do you think this is a reasonable deal given the dealer discount and rebate?
I think others have summed it up pretty good. Consensus here on holiday sale is that they are mostly bogus. The 1% APR difference is $1500 which will decrease your discount by 2.4%. It’s the beginning of the month, dealer might not feel pressure to agree to the lower apr though. Good luck!
