I am trying to access what target deal I should approach the dealers with.
My plan is to go for a test drive (to one of them). Let them give a quote and then tell them what I am looking for (questions here, like should i ask for a discount on MSRP?).
Based on my research on the LH forum, below are the target deals I have made from the LH calculator, based on actual MSRP on dealer websites. 1) Please suggest if I am on the right track.
Audi Q5
BMW X3
Target deal:
I have a quote from a dealer. Which I have simulated in the calculator here.
Also, the negotiations are a little stressful for me given the unknowns, so can someone 2) suggest how it works to go with a broker? Would the dealership know that I came to them, and the broker is dealing on my part?
Can someone suggest how the broker deals work?
3) I dont drive much. I assume 7500 miles also too high for me given my last 3 year driving history. Do we still have miles credit for unused miles? or something that can drive the price down and residual up?
Location : PA
Thank you for taking the time to respond.
Are the discounts off MSRP you’re targeting based on broker deals? The discounts you’ve listed seem on the higher side.
Disclaimer: I haven’t leased b/f, but I think many of the experienced posters here state that offering a monthly + due at signing is a good way to start. I probably would only go to the dealership for the test drive and then offer the deal and negotiate over e-mail/text.
Did BMW or Audi ever offer credit for unused miles in the recent past (genuine question)?
How many miles/yr do you think you will use? I assume that, for the Q5 and X3, 7500 mi is the lowest mileage limit. Using less than that will not change the selling price or the RV.
Do you mean would the dealership know your identity? I assume they have to, since they have to process your paperwork. And, yes, they would know the broker is working w/ you, since you don’t contact the dealer directly.
BMW did or does but it’s a pitiful amount. Like you might use only 75% of your allotted miles and get something like $300 credit toward your next lease.
To add on to this, residual is going to be $31k. Assuming this is correct you can sell it for $31k in 3 years. Your cost will be $52k to buy with tax and say another $1000 in fees. So call it $53k.
This means it will cost you $22k to own this for 3 years vs $29k to lease it for 3 years.
The price was negotiated with the dealer based on leasing, dont know or have experience with switching to financing. Any insights?
Also i think the bmw apr on website is 4.99% for 48 months and higher for more. So it would cost me 1100 a month to own the vehicle.
You need to do a TCO analysis like ST_00 attempted above…yeah your financing monthly payment will be higher but the overall cost could be much lower based on the analysis.
The monthly will be higher w/ financing. But you have an asset worth some money (vs. leasing, where you have nothing). I don’t think the X3 or Q5 have fantastic resale values, so whether the TCO of ownership is lower is something you do have to calculate.
If you saw other posters be able to get this (where they in your part of the country?), then, sure, why not base your proposed deal those?
I wouldn’t know off the top of my head what a strong discount would be, but you could also check BMW/Audi-specific car forums to see if selling price (again, in your geographic area) is discussed in one of the threads there to see if the data there differs greatly from what you’ve seen here.
You’re still better off than leasing.
This is why consumers always get fucked buying cars. All they care about is the monthly payment, ignoring total cost.
I don’t know if these are actual deals or deals you are trying to accomplish? That’s a good discount on the Audi. Agree that 14% on the BMW is not happening. All the MF’s are raised up at least for tier 1 credit. BMW gives a max of $300 for a % of unused miles toward another lease.
Calculate your monthly lease payments over the term and compare them to a buy. Compare final numbers to purchase outright, or if financed adding in interest. Leasing a car normally is 36-39 months. If you buy a vehicle and don’t keep it for 4-5/years you are not making out. Vehicles are a depreciating asset. You just have to figure out the least path of resistance while enjoying a new ride.
Those are the target deals I am trying to simulate.
I am trying to get to a monthly of $650 with just inception fee(about 2K-2.5K).
I want to understand if this is a good target deal to go with to the dealers.
Clearly you do not support Audi Q5 purchase/lease.
I am trying to simulate a target deal which I can go to a dealer with. The SIGNED deals are not helping much.
You have a well-respected broker tell you that you’re not getting 14% off a BMW.
The deal you’ve been offered on an X3 seems not too far off your target and is only ~3% less off your targeted discount (w/ your targeted discount not being realistic).
It seems like you are actually not far off of your target (at least for the X3).
I realized that the % of MSRP is inclusive of 2500 rebate for new lease. Which essentially means that the % of MSRP is about 6.5%.
Do i include Rebates in MSRP discount, or MSRP discount is separate?
The 14% includes the $2500 new lease rebate. So does that mean that MSRP discount in my Target deal is only 6.5%. Or does the calculator includes rebates in % of MSRP ?
