BMW lease deal review

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Hello, thank you for the help

This is for a 2021 540i xdrive. It’s a loaner with 4K miles
Some nice upgrades, with the sound system, park assist, hud…

From the Edmonds search, the MF is .0093 and 59%
66221 zip

Sales price of 68k, and only 700 was taken off for the loaner deal… but other loaners on their lot, were heavily discounted up to 10K with similar miles and model, some were 530s.

Would like some advice before I submit an offer to the sales manager.
Is 1% of MSRP unreasonable? Is it even a good deal. How to submit that deal in writing, and any other advice would be great, thank you

Vin WBA73BJ09MCG04506

When you have searched through the broker offerings in the marketplace and the shared deals sections here, what have you found for what these seem to be going for brand new?

I’m not familiar with those posts, from what I’ve seen most deals that were listed on here were CA lease deals, so I just glanced over quickly.
I will search.

I negotiated a bit with Baron back in February, but it was on an order. I think they have a $600 dealer fee and add ons, so you’ll have to take that into account as well.

You can pretty easily calculate what discount you need to get a payment using the calculator here. I did a quick attempt and to get a 1% monthly, I think you’d have an uphill battle because you’d need them to do 14-15% off before incentives AND eliminate any add ons:

Which of course is a pointless thing to target as it doesn’t tell you if it’s a good deal or unachievable.

I sent them an email after test driving it earlier asking them to send me lease incentives and discounts for this particular car.
Response.

“The 2021 model you and your wife drove today has a $500 lease rebates off the MSRP and we will take an additional $1,000 off to make up for the mileage”

Would this be 1500 off the discounted sales price? because they already took 700 off in the listing.

I would just contact a broker if I was you… I think there is actually $1500 in lease cash, so they are being sneaky from the start (I could be mistaken, but you can check Edmunds on that).

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I don’t think my goal is to get to a certain mo payment, it’s about the deal and not paying an inflated price due to the current market, which they say they do not list over sticker.

With tier 1 credit, I should be able to get a decent deal with no money down except drive offs, and I would like to get some advice on what a good deal would be for this car, I would submit for slightly less than that if it’s in the realm of possibilities, and see what happens

And it’s for the wife, I don’t particularly like white cars

Yes, go to the broker listings and look at what they are offering. It isn’t going to be super easy because they may not have a lot of 2021’s, but my experience with Baron was that getting something shipped from Chicago was going to be much cheaper, even with broker fees.

Where and how do I research deals from Chicago with a broker

No, this would be $1000 off msrp, so $300 less than their $700 list price (assuming they aren’t factoring the incentive into their list price, which they probably actually are).

Honestly, this deal is absolutely atrocious. If that’s their opening offer on a demo, you’ll never close the gap with them to get where you should be. Walk away, sort out what a good deal actually is, and after you know what you should be paying, then re-engage other dealers. This dealer has demonstrated they have no interest in doing business with you.

We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.

  1. Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from Edmunds forums for your zip code
  4. Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
  5. Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
  6. Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.

With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.

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Go to the broker listings on this website and look at the BMW tagged ones. There are a few who work in the Midwest. You could also look at BMW of Des Moines - I almost closed a good deal and they were going to drive the car to me here in KC.

ok, thanks for that. Also looks like there are broker deals on 2022, any advantage i wonder in ordering a 22 vs just getting a 21 now.

I think the 22’s and 21’s are the same, so it is just going for whichever is a better deal, as long as you don’t need it right now.

You can also see if they will beat a broker, but again, Barons didn’t want to match a deal I brought them (didn’t even get within 5%).

The 21s will usually have more rebates than 22s right now. However, this can vary by manufacturer and mode.

Im looking to submit a similar offer. did you negotiate the selling price before incentives?
trying to do this today,

2021 BMW 5 Series 540i xDrive

VIN: WBA73BJ09MCG04506 STOCK #: MCG04506

  • Trans: Automatic
  • Drivetrain: All Wheel Drive
  • Exterior: 0A96 Mineral White Metallic
  • Mileage: 3,962

Listed at 69,440
savings, 652
sale price 68788

where do I go from here??

That’s their offer?

that’s their listing, They had other 2021 540s, and 530s as loaners with 7k in savings… this one has similar miles, but hardly any savings, not sure why. I sent an email to ask and they said:

“2020 models have bigger discounts due to being older inventory and they do not lease well because of the residual difference which is why they’re discounted more. Some of our vehicles listed online have built in finance rebates/incentives that not everybody qualifies for and can be misleading.
The 2021 model you and your wife drove today has a $500 lease rebates off the MSRP and we will take an additional $1,000 off to make up for the mileage.”

also, I see in the fine print, that they have 1500 in lease credit… sneaky?

The best place to start is

Please read links in there such as “how to calculate payments” and other helpful articles.

It might seem like a lot but TBH there are fewer <60 minute exercises which will save you so much time, money and anxiety over your driving lifetime.

It may also save you (after your negotiations with LH input) inside the finance office where no one can from the internet can really help you.

Remember, it’s almost impossible to reverse-engineer the math starting from the output (monthly payment) and figure out if it’s a good deal. Start at the beginning.

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Don’t have the same discussion in multiple threads. @Reg1