Looking to lease a 328i this weekend. Need a great price need neg advice

Ask the Hackrs
1

I’m in LA, looking to lease a 328i (tech/prem/and driver assistance package). The vehicle is a 2016 but a CPO, low miles. Ideally looking for a 2 year lease but 3 will probably get me the best price. My biggest need is mileage. I drive quite a bit need 12 - 15k. I also would like to close this weekend, due to labor day sales. Sticker is 41k. I’ve seen the car in person. Dealer didn’t get back to me with numbers.

I want to know:
What incentives in my area are on this model can i take advantage of
How to find out what the dealer cost is.
Get advice/tactics on negotiating the sticker price down.
Get Residuals, MF, and incentive info.
Undestand MSD vs Down Payment benefits and effect on monthly cost.

Looking to get a sub $330 cost per month, tax incl.

2

First i think you should play with the lease calculator to get a better understanding of how each factor affects payment. Go to true car and build same car to get a sense what others are paying. It has a link for incentives when you build your car. For cpo i would push for 20% off msrp. Read the forum on 528 deals and see how they got great deals on cpo bmws.

3

just did true car. seems pretty useless. it doesn’t offer anything but new or used. CPO isn’t an option at all. I can’t build my car because the options aren’t specific enough and it limits everything to 3 dealerships in a mass radius.

4

Try and shop for it today? Last day of month should bring in good discounts.

5

Yes but it gives you an idea how much of a discount a new car you should aim for. Then based on that you can push for a higher discount for CPO.

6

True car used to be a great resource, now though they pretty much give you a slightly better than average deal, I would not waste my time. For a 328 the residual is 66%, MF is .00137, and don’t forget the miles on the car will be deducted from the residual, at I believe .25 per mile (but may be .20). With a demo or loaner (which is what this is since its leasable) incentives are irrelevant, unless you qualify for BMW loyalty, which may be regional, I have heard conflicting reports on bimmerfest as to whether it actually exists. MSD’s are great, I highly suggest using them. They lower the MF by .00007 each and you can do 7 of them for a total of .00049, do not put money down. With a high residual and it being a demo/loaner I think your goal is reasonable, whether the dealer agrees with us is another question.

7

What do you mean by this. How do I calculate this? It is a demo. Does that change the MF?

8

also what happens to your MSD if you transfer the lease before the term is up

9

I thought loaners and demos are treated as new in terms of being eligible for incentives

10

The MF does not change on a demo. As for the miles on the car its is calculated like this:

MSRP: $40,000
Residual 66% = $26.400
Miles: 4000 * .25 = $1,000 (this may be .20 per mile I am just not sure)
Residual after mileage = $26,400 - $1,000 = $25,400.

If the loaner has more than about 7k miles on it it becomes prohibitively expensive to lease.

If you put down MSD’s you either have to eat them in a lease transfer or try to get the assumee to pay (which is quite difficult from what i have heard). If you are thinking of transferring the lease I would not put down MSD’s.

11

Nope when the car is punched (put into service) the dealer takes all the available incentives at that time.

12

but the person assuming the lease would receive your MSD at the end correct? so they’d likely pay knowing they are getting it back.

13

So this is a bit unclear to me, i did the math and the residual is decreasing with the mileage on the car, should it not be increasing?

sticker is 40994 mileage is 3196 @ .20 pm. by my calculation residual goes from 66 to 64

14

Yes you are correct the person taking over the lease will get the money back but you will have a hard time convincing them of that, and paying you money, from what i have heard anyway. Most people are clueless about MSD’s.

15

The overall residual will go down as your math shows, but it is calculated the way i presented it. Take the msrp of the car multiply by the residual and then decrease the residual by a $ amount for the mileage.

16

What about any suggestions of negotiation. How far do you think I can get the MSRP down? Can I get it to 20%?

17

I think 20% is reasonable, but different dealers have different ways of absorbing the cost of a loaner, so if you are set on that specific car it may end up costing you more. I leased a 2014 328i msport, but the only thing i cared about was sport line or msport, found a car that was advertised more than 20% off msrp and made the deal.

18

I had a weird convo with the sales guy. Though the price is listed at 40994, he was quoting me a lease rate based on the original price, is that normal?

19

August car sales numbers are out. Blood bath. -5% across the board. So expect to be able to negotiate and have great deals out there.

20

I am now confused (actually I always was) the MSRP for BMW’s always ends in 0 ie $40,950, is the $40,994 the asking price of the car? The residual is based off the MSRP for the car minus the mileage (discussed above).