Deal Check: 2024 BMW M240i xDrive - IN

Ask the Hackrs
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I reached out to a broker in CA for a quote for the 2024 BMW M240i xDrive and inquiry about shipping to Indiana

MSRP: 58,420
Discount: 3,505
36Mo, 7,500 mi/year
$799/Mo, $2300 down payment, so total $3100 drive off
Plus delivery fee is about $1,750-$2,000 + $299 broker fee

First-time deal negotiating, wondering if this deal is good or not? Should I reach out to a local dealer and try to negotiate the price, my concern is M240i allocation is relatively small.

Also, any suggestion that I should finance/lease this car? I currently have a 2022 Honda Civic Sport and considering changing a car, my current mileage is around 15k. My concern about buying the car is considering the depreciation is relatively high compared to Honda. BMW USA official website saying after 3 years, the residual value is about 52% for 12k mi/year.

Updated on 9.17 Morning,
After applying new grad discount and negotiating with the broker about putting MSDs, he said MF is decided by BMW FS so no room to negotiate. Maximum MSDs (about 5.5-6k) can lower my monthly payment to the following:
MSRP: 58,420
Discount: 3,505
36Mo, 7,500 mi/year
$745/Mo, $2300 down payment, so total $3100 drive off, the estimate including $235 dealer fee.
Plus delivery fee is about $1,750-$2,000 + $299 broker fee

I feel for an M performance car there’s no much room for me to cut the price, but the only thing concerns me is the insane shipping fee.

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M240xi allocations are hard to come by.

6% off sounds very high in terms of discount, but obviously that’s going to be offset by insane shipping.

I see you reached out to me, and I assuming everyone else as well, I’m waiting to see who in my network wants to do your deal and who has an allocation, fun to know I’m being shopped as far as California though!

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Looks like theyre in Indiana

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I mean that he lives in IN, but is talking to California brokers about this car.

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5

Yeah the insane shipping fee is kind concerning for me as you’ve mentioned. I wish there will be more resources around where I live but I don’t have much luck spot any dealer around me yet. If you happened to know anyone and shared with me I am really appreciative.

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6

I think the residual is more like 54% on the M240xi. If you can get a 6% discount and a decent MF on the M240xi, then I think it is a worthwhile lease. You are going to pay that depreciation one way or another. At least with the lease you won’t be underwater at the end of 3 years. My guess is in 3 years you will want something bigger anyway.

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Sounds like a plan. I am trying to reach out any local dealer to see if I can negotiate the deal to reach at least same discount or better.

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Also question should I trade-in my vehicle for a lease? I feel the answer is no？

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It sort of depends on whether or not you need a second car. The 2022 Honda Civic Sport should be easy to sell, but a BMW dealer is not going to give you top dollar. You would probably get more selling by yourself or taking it to a place like Carmax. You can always get an offer from Carmax or Carvana and use that as leverage on the BMW dealer. A broker here may be able to help facilitate the whole deal.

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  1. Logistics won’t make sense to “trade” your car in - you would have to pay to ship it to the dealer in Cali. Sell it locally or to CarMax, etc.

  2. the shipping cost getting your car from Cali to Indiana is brutal - you might want to consider an east coast based broker in NY/PA/DC areas, or doing a Performance Center delivery and driving back from South Carolina.

  3. 2 series don’t lease all that well, you might be better off with a finance

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  1. Yeah thats what i planned to do, sell my car to local dealer or carmax/carvana.

  2. Thanks for the suggestion delivery car to performance center, the overall cost might be less than delivery fee.

  3. It will take some effort for me to do financing, and I probably not to keep that car after 3 years based on my current status. So my thought was using the money by selling the civic towards the leasing monthly payment

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Also it seems like currently they are doing BMW X model delivery, I doubt they will deliver M240i

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You have to apply for a lease and you have to apply for a loan. It’s the same process.

Even if you sell your current vehicle after you pick up your new one, you can take the proceeds from the sale and dump it on your new loan balance, which will dramatically decrease your interest expense from that point forward.

That won’t lower your monthly loan payment unless you refinance, but who cares? Your finance costs are only the interest portion of the payment, and the rest goes to equity when you sell.

And if the payment amount truly bothers you, you can refi. It’s a minor commitment in time/effort.

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Thanks for the suggestion.

What I mean by effort is financing stress. I haven’t graduate yet till May next year, so the monthly financing payment would bother me, even in future it might take 1/4 of my monthly salary to pay the monthly payment. Also I probably not going to keep the car at the end of year 3, I assumed even if I bought it full, the depreciation vs leasing is pretty much close.
My current thoughts is using the proceeds from selling my civic, which could use towards the leasing monthly payment for more than 20 months. I know financially it might be not the “best” way, but seems like the only option for me.

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Then you’re looking at too much car.

While there are some limited but logical reasons and reasonable use cases to opt for a longer term, if you can’t afford a 36-month loan payment at prevailing loan rates, you’re punching above your weight.

If you have $100k in savings and no other debt, that could be one example.

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I know this is not a personal finance forum, but why sell the civic? Because YOLO?

Looks like you are a student and stessing over the BMW payment, plus you have bought the civic when the market was hot and even Mitsubishis were selling over MSRP.

If these are true, selling your civic and leasing a new 240i seems to be a good way to prevent financial security.

Also, 240i is a good car, but $800/m unlocks a lot of good cars.

Not Judging No Big Deal GIF by NETFLIX

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Thanks for the suggestion…
The civic was bought at MSRP before market going crazy, but you are right about the financial security part, I will reconsider it and obviously buying it is not my good option.

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Why is this frankly disastrous idea the “only option” for you?

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As said above this means the car is too much for you

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Sorry for the confusion.
I mean if I really want the car, then leasing might be my only option instead of financing.

The other option is to keep driving my Civic, which is also a good car too. My thing is that I always wanted a sports car after my master’s graduation, I know this is not a personal financial forum lol so I would just focus on car leasing deal purposes.