Had a Dealer give me the following quote for a 2019 X3 M40i:
MSRP: 66170
Discount: 7000
Sale Price: 59170
Incentives: 2000 lease + 750 conquest + 1000 OL code
MF 0.00205 (down to 0.00170 after 7x MSDs, marked up and not ideal but beats having to ship from california)
699.37/month, 8500 up front to cover MSDs + fees + taxes
Putting this in to the leasehackr calculator, I get $699 with 8391 (4900 msds + 3491 drive-off). My own spreadsheet gives this, as well
After running through previous numbers they gave me where it looked like they didnāt add the cap cost reduction taxes to the up front, it looks like theyāre rolling all of the fees and taxes into the lease and then applying my up front payment (incl MSDs) as a capital cost reduction, cause me to get charged an extra 110 dollars in taxes? Is that how up front fees are handled or is this just dealers not knowing how to handle MSDs or people paying fees up front? Is broken? Am I being too pedantic?
Hereās a copy of the lease worksheets they gave me before I told them to raise the up front to 8400 showing me how they do their math:
Yup, both LeaseHackr and my own spreadsheet gave me 595 before tax (657 with WA sales tax) before the max marked up MF. I brought it up, they gave me the stuff about ādeep discountā and āthis is our cost center since youāre probably not going to be coming to us for oil changesā. The marked up money factor will cost me 1,440 over the course of the lease, but this likely one of the biggest discounts I can get up in the NW without going down to SoCal (which requires shipping of at least 900 bucks). There was a dealer a few hours away from this one that offered me 7% off MSRP with base MF, I guess I can counter with 9% and see where they go.
I havenāt agreed on this price with them yet, but did call out the difference between my numbers and theres in that theyāre rolling everything into the lease and then considering all of my up front a cap cost reduction (and so as a result, iām getting taxed on registration fees).
Honestly, Iām not in a rush so whatever, if thereās some bad math going on here, I should just take that as warning signs even if the difference between my numbers and theirās is about 120 bucks.
And youāre supposed to sign that piece of crap because you feel bad for their bottom line? They will make their bones on the next 50 knuckleheads that walk in to get bent over. Donāt reward these shell games by patronizing them.
Also, Why ship it when plane ticket and drive home over a weekend is cheap?
Iām insisting to the dealer that I want paying tax on rebates, acq/doc fees, and registration fees up front. Thereās a forum wide debate on that and Iām up in the air about it and might go back and just ask to roll all the fees in and Iāll just pay MSDs up front (which will probably go to 5950 with the MF theyāre offering). Their original offer (not posted here) had fees/taxes rolled in. I didnāt want to finance that stuff at the marked up MF but if they lower the MF, Iāll consider rolling it all in.
Theyāre marking up the MF to 0.00205 and using the 10.58% discount off MSRP to justify it. I agree with you guys all that this is pretty lame, so you guys think itās not out of the ordinary to get 12% nowadays on a X3 M40i down in SoCal (to offset the cost of shipping & travel)?
Seattle is a notoriously uncompetitive BMW environment. Iāve heard of some folks getting luck up here in Bellevue with the right timing, otherwise better luck in Portland (either at Kuni or BMW Portland). Even then, youāre likely to have an easier time negotiating with a SoCal dealer.
FYI, the difference in the math is because the Leasehackr calculator (and my original calculator) donāt consider paying fees up front as capital cost reductions and in Washington, thatās taxed. Their math was right, the MF is still off.
Anyways, Iāll work on getting the MF down to buy rate and see whatās up.
They came back with the buy rate MF so Iām going to pick it up Saturday.
MSRP: 66170
Discount: 7000
Sale Price: 59170
Incentives: 2000 lease + 750 conquest + 1000 OL code
MF 0.00165 (down to 0.00130 after 7x MSDs, marked up and not ideal but beats having to ship from california)
656.37/month, fees, cap cost taxes, and first month up front