MSRP - 56,070
Selling Price - 49,995.
36 month lease would be 625.97 with you just paying your fees
12k miles per year and also includes sales tax.
RV - 63%
MF - 0.00180
This seems high to me based on the 1% rule. Please suggest how I should go about negotiating this deal.
Some vehicles will not get to the 1% rule of thumb. It is more of a lease vs. buy calculation, really. Vehicles that are selling well or redesigned may not lease well since the manufacturer/lease company is trying to churn a hefty profit on them, or they do not want to take as much risk.
Can you give us a breakdown of your drive offs, have you considered MSD’s?
Ed, I am asking the dealer for the breakdown of the ‘fees’ and MSDs. I suppose that we can do 7 MSDs with each one of them bringing down the MF by 7 points
Seems like the MF is marked up from 0.0014 which is the base for March.
Thanks Ed. I am going to mention that to the dealer as well
Is it a new car or demo?
This is a new car Jason. http://www.bmwpeabody.com/new/BMW/2017-BMW-X3-6d6276940a0e0ae854d002e5f8caa22b.htm
The dealer got back to me with this:
“he has included all incentives. The MF is different on each vehicle and subject to approval. Im not sure what tier he used. The drive off fees ar 2099.72.”
I have asked him for a breakdown of the 2099.72 fees
He’s bssing you, the MF is different on every MODEL of BMW but its the same from one x3 28i to another x3 28i, And the drive off could be so high because he’s making you pay the acquisition fee upfront
That is correct nyclife. Here is the breakdown for the drive off fees:
925 Aqu fee, 325 doc fee, 135 reg fees, 78 tax due up front and the first payment.
He did mention that he does not have all the numbers upfront and that this is a rough estimate of fees. He also sent me another email suggesting that instead of me running all the numbers what can he do to earn my business. He wants to go to his manager to put together a deal that works for me. Any ideas how to go about this? I should probably send over a proposal that makes sense for me.
What is your tax rate?
Well go in at 2k below invoice, with the base MF, 7 msd’s and see what your numbers come out at and post them here.
Best way to negotiate is to tell them exact numbers that you are happy with and they have to match.
Tax Rate is 6.25% here in MA. I am working on the numbers Ed.
They are taking advantage of you. This month dealers have some factory incentives to move X3s. I am turning in my 2014 x3 3.5 over the weekend and just negotiated 12% off sticker on a new one. The total deal for 0 down (drive off only 36/12 56K X3 3.5 (xdrive) is $525 including 7.25 percent tax. You should shop another dealer just for marking up the MF which is .00140 this month. I hope this helps.
I am not commenting on the deal itself even though the sale price is a tad high, maybe reduce by a percent or so. With your spec, correct MF (not the one the dealer is giving you), multiple security deposits, and paying the acquisition fee upfront I come up with a monthly payment of about 529 dollars with Tax.
Thanks sugar and nyclife. The above calculation is very helpful. I need to talk to a few other dealers as well.