Hey folks, after a bit of back and forth this is the best and final I was offered. Any input is greatly appreciated.
Don’t think there’s any danger that anyone on this forum will steal this out from under you.
Most cars cannot be hacked. They don’t have the MF and RV for it from the bank, so it doesn’t really matter what you try to negotiate with the dealer.
Thanks max. Im not sure what you mean? Just looking for input on the stated offer.
Seems like a fair enough offer. I assume this is 20bps markup with max SD’s?
I’d probably finance it instead if you are in a position to write it off. Consult your accountant.
Thank you. It will be used for business. Most likely buyout at the end. The mileage will be exceeded but again it will be a buyout. Do you think there is any room for movement?
Apologies for the double post. This is what they sent me but no mention of the sd. What is bps?
Wilber…spend some time on Leasing 101 and how to use the LH calculator because it appears you have no clue on how a lease comes together…or use a broker.
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Sweet, helpful reply. Why even bother replying if this is how you’re going to act?
So, you don’t think it would be very helpful if you knew how a lease comes together and be able to use the calc to put a deal together so you better understand the fixed items and the negotiables? Your earlier replies indicated lack of knowledge about MF RV etc.
I’m not the OP. I’m just a guy lurking threads, and came across your entirely unnecessary, passive aggressive, holier than thou response to the OP.
Sure it would be good to understand how to use the calc, etc… so offer some constructive advice to do so. It’s a forum. If you don’t want to be bothered to be helpful, than just don’t say anything at all.
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He (gohawk) is not trolling you or being a jerk,and is 100% correct.
I used to get upset at similar replies to my posts, but no more.
It is much better to fully understand leasing 101, before posting questions and/or relying on just posting a deal and getting feedback.
Case in point, when I first came to this site around a month ago I was a 100% lease newb.
I took a lot of advice here “literally” and hurt my deals.
The more I learned about leasing the more I understood what the replies were saying, but moreover knew when talking to the dealership to analyze what they were saying and then post questions here you dont want to ask the dealer for obvious reason.
This is a great community, they can be harsh and very direct, but its “tough love”.
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I think that’s a typo and he meant “MSDs.”
Stands for “multiple security deposits,” roughly the equivalent of one payment each. Each one up to a max reduces your money factor (reduces rent charges, or the cost of financing). You get them back at the end as the name implies.
bps is basis points. The lessor sets a min and a max for the MF that can be charged under the program. The delta is measured in basis points.
It’s like BMWFS offering 3.9% financing but letting the dealer to contract up to 4.9%.
If the dealer is able to sell a higher rate to the consumer, the dealer keeps a slice of the difference.
A marked-up money factor is essentially a reduction in the dealer discount, from the buyer’s side of the deal, because it makes the total cost of the lease more expensive and is discretionary on the dealer’s part.
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Thank you for the responses. They’re very helpful. None of that information was there so i asked for the full lease contract to understand it better.
The best skill you can learn to improve your leasing is establishing a target deal before reaching out to a dealer. Ultimately, you dont need any of that info from a dealer because you should go in knowing what they should be already and what deal you are offering to the dealer.
One cant effectively negotiate when you dont know whete youre trying to get to.
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A total lease cost of ~$60,000 to lease a car with a selling price of 98,xxx is just insane.
I used to try for the 1% rule, pay 1% a month in 36 month lease with minimal down (first month, tag, etc). from MSRP. Ex: 60k car try for payment around $600/mth + tax. If you get lower, awesome!
That doesnt work as much depending on model anymore, markups, interest rates etc…
Deals have been making their way back and now you can find cars in that 1% range.
At the end of the day, you will get the car you want and can afford to pay for.
X5’s are super hot right now and hard to get much off. You would probably get a better deal with a broker than what you are doing alone. Those numbers are in X7 territory. The x5 with big engine is a gas guzzler, I used to have some x5 5.0’s. Keep that in mind the MPG is awful if you are not aware.
One other thing to note is the 40i and 50e both got more power this year. Though the V8 is an amazing engine, you can get a significantly better deal on both of these models and BMW inline 6’s are exceptional.
Thank you. All fair points. I appreciate you time to reply. I am not opposed to a broker and did email carq on 7/29 with a new build code inquiry. I did not get a response.
In fairness to the other replies, i have made an effort to self educate and this site has been great. This is the second / revised offer. I requested 7 msds and 2700 down 36 /10 8% off msrp. I got those numbers from what i have seen in other peoples calculators and 7-8% seemingly was the discount.
That being said none of that information is there in the summary document. Do you have to ask them to spell it out? I am just trying to avoid getting lured to the dealership for the song and dance.
Rule of thumb:
Get MSRP and selling price
MF
Residual
Months and miles
Any extras like tag, fees, junk dealer fees…
Make sure you have it all
Then pop it in the calculator.
If it doesnt match what they are proposing, they are hiding a markup on the backend.
This is only one of 4 variables that determine the pretax payment on a lease.
If the other 3 are not favorable then it cannot be leasehacked period.