Year: [2017]
Make, Model, and Trim: [BMW X3 sDrive28i]
Months/Annual Mileage: [36/10K]
Zip Code: [90503]
Does anyone know the RV and MF for a X3 Loaner/Demo that is over 5k miles?
Not sure about the mileage but yesterday I was trying to get a deal on one also. The residual is 64% with 10k miles and MF is 0.0015. Dealer was saying rent charge is $3600 on a 9k depreciation. MF seems high.
The base money factor for the month for BMW is .0015, so it may be high, but it wonât get any lower unless you have a corporate discount. However, to answer the residual question about demos, because its over 5000 miles, you deduct 4 percent from whatever the residual is (GeorgeA said it was 64, so I believe him) and you also deduct 25 cents a mile from the total. So if the car had 5000 miles on it, youâd deduct 1250 dollars from the residual amount, in addition to the 4 percent drop, so you are probably better off getting a new car unless that car is discounted heavily.
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Slight correction. I believe they dont charge you for the first 500 miles, so if the demo has 5000 miles, the mileage penalty is $1125 (4500*.25).
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Yes, I forgot about that, Jon is correct.
going back and forth with a dealer atm⌠insists on adding âfreightâ to the loaner price after the discounted price from MSRP (ie, taking back almost $1k)⌠is this common practice? legal? from my understanding, once itâs in the loaner pool, freight is covered.
I donât think itâs common, unless he is talking about the shipping fee of 995, but that should already be built into the msrp, but the way I look at things is what is the final price? He can add a 14,000 dollar window washing fee if he needs to, but if the car is discounted enough to offset the fee, who cares? You donât want pay an inflated money factor, and you want a a big discount off the msrp, but if they have policies that say they need to add a fee onto the offer sheet, let them, but make sure the discount offsets it enough so the deal makes sense for you.
So Iâd suggest you post the offer you have, msrp, cap cost, money factor, and residual, then people here can probably tell you if it is a worthwhile deal or not.
Freight is included in MSRP, but they can exclude it from selling price to make it look lower. Pretty common in some regions/brands. Just ask @CDJRElliott 
Gotcha @jakhfue. The MF was only inflated .0002 but Iâll get that back (only .48% but still).
I was more wondering @ursus if by default, the freight (and that is indeed the add back of $995), on a loaner sale/lease, should already be considered to have had the freight absorbed since one is, in fact, buying/leasing a used car.
You shouldnt consider it used and expect to not pay the freight charge, but then expect the RV to be calculated using the MSRP still. You canât have it both ways.
Just like @Jon said.
yeah, youâve convinced me on that one
Will let you know how it turns out
@dromicman, once in the loaner pool freight should be covered. Its not a ânewâ car by the dealership standards, It was registered, tagged and titled by the dealership to get in the loaner pool. They should not be adding Freight againâŚ
@CDJRElliott Are you sure with BMWs? So the dealerships consider them used, but BMWFS still considers them new and base RV off MSRP (if under 5k miles)?
I could be wrong about Bimmers⌠CDJR takes its loaner pool and when they move them from service fleets, places them as used inventoryâŚ
Yeah, theyâre not budging on adding the freight back in. I did ask about the new/used issue and they are considered ânewâ though you pay a 2% RV penalty up to 5k miles. After that itâs .25/mile
Are you saying you cannot advertise sale price on a demo/loaner without freight and later add it to the final sale price, the way you do on new cars? MSRP obviously always has freight included. Like in your fine print â*Sale price does not include freight,tax,âŚetcâ
No, I am saying that a vehicle placed in the loaner pool has to titled, tagged and registered to the dealership. It is not considered new after that, but part of a fleet. When we take them out of the loaner pool, we placed them in our used car inventory.
Most get a âCertified Pre-Ownedâ tag and we pay for that to the manufacturer and try to pass that on to the customer or justify a slightly higher price because the certification extends some of the warranties.
BMWâs CPO Elite vehicles arenât treated like that.
Bait and switch. Walk away if they wonât budge.