Not so rehearsed on leases as I usually buy my vehicles so I thought I’d ask for help.
Looking to lease a demo/loaner 2024 530i. MSRP is 64,000 and it’s priced at 50,000 now so about 20% off MSRP.
Located in socal
Lease is for $0 down
7.5k miles
BMW loyalty credit included.
No MSD’s (although I don’t fully understand this)
$640 tax included.
I was initially looking to be at $500-$550 tax included for this car. Should I try and negotiate this deal? If so what is a realistic price? And are my price expectations out of this world or realistic?
Do you have the official offer from the dealer that you can share (with their info and your personal info redacted)? It’s tough to know what the structure looks like with only the MSRP and selling price and no other details (e.g., what are the total rebates being applied, are rebates being applied after the discounted selling price, are there any dealer add-ons/accessories, what rate are they using, etc.).
And when you say “$0 down” do you mean no cap cost reduction or zero driveoff (sign and drive)? Also what’s your tax rate?
I would try to at least put together a calculator based on the variables you know and see if it aligns with the offer you have.
Thanks for clarifying. I guess that’s something I would have to confirm prior to signing the deal. I wouldn’t sign if warranty is not included for the duration of the lease. Who knows what the car has been through as a service loaner.
Thanks for this. The deal is starting to sound less and less appealing.
Warranty will be covered throughout the lease.
Maintenance will end a year early.
Brakes have not been changed and tires are not new.
These are all going to add up throughout the lease and bring the overall cost up for me. Why are people going for demos at these prices then? Is everyone just getting suckered into it like I was about to?
No. They can be really good deals. Can’t make general assumptions. I’ve had two bmw loaner/demos myself before. Just got to do the math and know what you qualify for.
It’s the wrong question. The nickel and diming isn’t related to MSDs. It’s independent based on how anal the guy doing the inspection is. He doesn’t know you have MSDs. He just says there’s $1000 worth of damage or excess wear and tear. You have to pay that $1000. Whether you write a check for $1000 or you receive $1000 less of MSDs is the only difference. But you’re still out the same $1000.
So the real question is how badly does BMW nickel and dime you?
In my experience MSDs are one of the best ROIs out there. We’re talking 15% easily, tax free and as safe as a CD. If you can do MSDs, do it. There’s really no reason not to.
They don’t try to nickel and dime you, but they may ask you to pay for things that are not really considered excess wear and tear. Last BMW lease turn in, BMW said I needed to replace tires. I had recently installed a set of used tires with good tread so I was able to get that removed. Ended up only paying for some big scratches on the rear loading area of an X2.
You have to know the rules for leasing and what is considered excess wear and tear. In your case, leasing a car with 12K miles already likely means new tires and brake pads before end of lease. Personally I would lease something new or at least a demo with closer to only 5K miles or so. You are paying for those 12K miles through a reduced residual and you did not put them on the car.
I think it depends on who’s doing the inspection tbh. When I grounded my BMW I had a healthy amount of scratches and small dings that I didnt get charged for lol. The tires though for sure need to be solid
Recreate the deal they sent you in the calculator and then figure out a sales price at which taking a loaner with 12k miles makes sense. Then counter with the sales price/dont go back and forth with the sales person on monthly. Also the larger the discount the more likely 24 months will be the best option.
Talked to the dealer and added an MSD to see how it will change. Looks better but still not amazing if I’m on the hook for more maintenance than a new car would have.
