We are looking at a 2020 Z4 M40i to replace our M240 lease
This is the quote we got back in March before all the lockdown happened.
Summary
MSRP: $68545
Lease terms: 36/12k
RV: 58%
MF: .00142 (old buy rate in March. April is 0.00118)
Sale price: $62289.25
Incentive: $2500
MSD: 7
Number of payments for pull-ahead: 2 ($1146) at the same of the quote. Only 1 payment ($573) remaining now.
We pay all fees and taxes upfront hence the high down payment.
Original goal before COVID: 11% off MSRP pre-incentives + 2-month lease pull-ahead ($1146)
The dealership is in MD, the car will be registered in VA.
We plan to reach out to the dealer soon to close the deal as our M240 lease ends in June. With all the posts about dealers losing volume incentives and trying to maximize profit, we really don’t know what to expect when we resume communications with the dealer.
Questions for fellow lease hackrs -
Since there’s only one payment remaining on the lease pull ahead instead of two when we got the quote, would it be acceptable to ask for more discount on the sale price?
2020 Z4 was released about a year ago, we can’t help but feel that MY 2021 is on the horizon. Should we wait for 2021 or ask for more discount since we are at the tail of MY 2020?
Would you still negotiate as aggressively as possible (within reasons of course) even though COVID has wreaked havoc on the economy?
discount is okay, but I would push for over 10% before incentives on a BMW
why not just wait another month, make your last payment, and see what the climate for car buying is like? By June we may be able to do more, so dealers may be looking to move some inventory more aggressively.
In total, I would recommend you wait, and not put any money down (unless you can and want to do MSDs.)
I have no idea what you’re asking. You’re paying for that one payment, either out of pocket or rolling it into this deal. Nobody is paying it for you and you are responsible for it.
what are the changes for 2021? I’m pretty sure the 2019’s are still leasable…
Thats up to you. IMO there are better charities to give to than car dealerships
Anyway the lease deal overall is really bad. Needs more discount, no cash cap reduction, and no rolled in payments.
Sorry we are doing 7 MSDs. Updated the post to reflect. The down payment was the dealer trying to trick us into thinking the payment is lower than it actually was. That’s the reason the deal fell through.
Re: question 1. At the time we got the quote, the dealer would’ve had to pay two payments for the lease pull-ahead.There’s only one payment remaining now on the old lease so I was wondering if I should try to get the dealer to reduce the sale price further since there’s less they have to pay for pull-ahead.
My goal for the Z4 lease was 15% off MSRP after all discount and incentives PLUS dealer takes care of the 2-month lease pull-ahead. But I have been getting the impression that I was asking for an impossible deal.
Unless you are grossly over miles, I would push this deal into mid/late May. You are paying for that month of utility one way or another at this point, just drive the 2-series until close to disposition.
There is no “pull ahead” (where manufacturer pays remaining lease payments). The dealer isn’t paying this, you are.
I would run the numbers on 2019 and 2020 and see what gets you the best deal (look at the residual and incentives on both to start). The best pre-incentive discount will be on the 2019 but need to run the numbers to see what actually leases well. What is in your favor this month is the MF.
The Z4 isn’t selling especially well and with everything else jammed up, I expect the 2021 will be late and I haven’t read anything about changes coming.
I got my 2019 Z4 Sdrive 30i 15.6% off pre-incentives last month. I initially was looking to get M40i, but not able to negotiate more than 13% off pre incentives, plus the lease cash is $1000 less for 2020 model, make the payment higher than my M3…
Not asking you to switch from M40i to 30i, just providing some data points for Z4s here.
Payment is $599. DAS is high because we said we want to pay fees and taxes up front. In VA you pay taxes on the entire purchase price, not just the leased portion.
Would it be better to roll the taxes and fees into the payment? I didn’t want to pay interest on the taxes and fees. Or are you saying that portion of the payment is interest-free?
And don’t get me wrong. I am not saying this is a good deal. This feels like a worse deal than I got initially. I wanted to get some feedback here just to make sure I didn’t miss anything.
deal. 