Deal Help - 2019 BMW 530i Courtesy vehicle Lease

Ask the Hackrs
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12

I am working on a BMW lease myself. This is the same form/format in which I received my quote. They conveniently don’t list several of the numbers you need to calculate the lease rate. The first thing dealers will do is try to include all incentives into their “discount,” so suddenly you have no incentives. Secondly, they try to bump up the MF (mine bumped it to .00225). Third, they try to lower the residual. Mine moved the residual to 55%. Suddenly, a lease that looks like $350/mo is $600/mo. Also, the $1,042 fee in this case looks entirely made up.

I am having some luck ignoring this form, and countering with my own proposal, using leasehackr terms from the calculator so I know exactly what they are doing.

13

The dealer can’t change the residual unless they change the number of miles per year.

14

Here is the deal

This is what I was talking about.

15

The biggest difference is that they got a deeper discount than you. Their selling price is without incentives, while I believe yours is with incentives. They also don’t seem to have the extra fees you have.

16

So you recommend I should counter offer with a 1 or 2 percentage increase on the discount (without incentives) or at least to get this discount I have plus incentives.
Also, get them to explain / remove those fishy fees?

Thanks.

17

I recommend asking for the rabtes/incentives broken down in a separate line item. That way you can see your true % off MSRP. From there you will have a better idea of what more to ask. Also it will be easier to replicate on the calculator because you know what is taxed and not taxed. There is some hidden monies in that deal structure.

18

Thank you! Will try that.

19

Let me know what they say too! I would like to see the numbers with legit selling price oppose to combined savings.

20

Is this a loaner? There is actually a formula for calculating reduction in RV for a loaner.

21

Yes, it is a loaner… do you mind sharing this formula?
Thanks

22

Start here:

23

Here is what they said! The incentives were included in the discount!

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24

Do you mind sharing that counter offer with me? Thanks!!

25

I figured. You’re just under 13% off -rebates my friend. I just realized this is a RWD, with that being said I am a dealer in the Midwest and xDrive is kind of a must so we won’t even order sDrives. I won’t have anything comparable. Just for xDrive you’re talking an additional $2300.

26

Yup, a vehicle like this (ex-courtesy, under 5K) I should be aiming for 18-19% off?

1 Like
27

If you can get over 16% I’d shake hands. I don’t know the market out in Cali though. Hopefully someone can chime in who knows the Cali Market.

28

Yes 18-21% pre-incentive is appropriate target for 4-5K miles car. $47,500 to $49,000 then subtract incentives.

It’s a sedan in a market where SUV’s are the hot ticket.

2 Likes
29

Miles over 300 are written down dollar based at .25/mile.

30

I think it also depends on how long the car has been sitting on their lot, how many other potential buyers are interested, and what a brand-new 5-series normally goes for…

31

As a service loaner, build date becomes largely irrelevant so long as lease support remains. Now, if it was retired 3 months ago and has been languishing on the sale lot since then this can make a difference however minimal as the car just needs to move for the purposes of putting a new one in it’s space.

Any dealer that isn’t moving loaners aggressively is missing out on a great opportunity to create a new brand ambassador, in many cases one who at some point in time will buy/lease a new unit.