I’m working on a BMW lease and something doesn’t add up and I can’t get the calculator to align with the numbers from the dealer. Generally speaking, I’m ok with the deal, just want to make sure the numbers work. Also, I asked for maximum MSDs and he came up with $4k as the refundable security deposit - Is that legit?
Here are the terms we agreed on - 39m/10k, DAS first payment + fees + MSDs
Below is the price sheet the dealer sent me, and here’s a link to my calculator
You can now do 10 msd’s with BMW. They marked up the rate slightly. New rate with 10 msd after their markup is 0.00075 which matches the sheet and the $4k. Nothing wrong with a marked up MF as long as you are happy with the commensurate discount.
I did calculate all the dealer’s calculations and can confirm that they are spot-on EXCEPT, I have concerns about the tax calculation…
7% x (39 x 396.16 + 3000 + 728.63) = 1342.51
1st. the payment of 396.16 already includes the 1342.51 because it has been capped. As such, you are paying tax on tax. The 1342.51 should be excluded and the base payment calculated. It is the base payment that is used to calculate the total payment tax. In this case, the base payment is 360.73.
2nd. The total fees of 728.63 includes license and title fees totaling 316.00 which I believe are considered gov fees and, therefore, not taxable. However, maybe Illinois taxes them. You need to research that. The only fees that are taxable are the doc fee of 377.63 and the EFF of 35 totaling 412.63.
Keep in mind, while advice given to you here is, with little doubt, accurate, you may want to consider what the dealer will think/how they will react if you decide to question 7% in taxes on a $316 fee on a loaner car that is over 20% off (since it looks like they’re giving you the full rebate, which requires they contribute money).
No skin off their nose. They’re not paying the taxes. In fact, if I were the dealer, I would appreciate a customer bringing that to my attention so that I can avoid future mistakes (assuming it was a mistake).
But you’re not, and 99% dealers are not you, and would react something like “I can’t believe this guy is bugging me about a possible $22 miscalculation in taxes when I’m giving him over $10k off this car”.
Now, do I agree? Yes. I value accuracy, and I appreciate things being done correctly. If I was the dealer, I’d want my systems calculating accurately.
That is very shallow thinking on the part of dealers. But you are right and is why I get very frustrated with some people and their warped, twisted, and flawed thinking. Many dealers don’t seem to get that it isn’t always about money. Rather, it’s about principles and doing things correctly instead of half-assed. Scott, I don’t know how you’re able to deal with dealers every day. I wouldn’t last 5 minutes.
So, we’re supposed to remain silent and accept their stupidity by allowing them to continue to make mistakes and promote mediocrity? I’m not built that way.
Thank you all for the help. With 20% discount on the car, and also dealer agreed to combine both corporate ($2k) and loyalty ($1k), I decided to take the car. Picking it up tomorrow.
I’ll upload the information to Signed Deals once it’s done.
That’s even more fun considering that’s impossible, you’re really getting 20% + $2k off if they’re doing that (which won’t even be possible on the contract so it’ll be amusing to see how they do it)
I’m picking it up tomorrow. Already gave them $1k towards the deal, so I hope it’s binding. Hopefully everything goes smooth (at least on my end ).
If he won’t be able to use both loyalty and corporate on the actual contract, I’ll ask him to remove the MF increase, which would even it out more or less.
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