Hey Guys
Got a quote from BMW dealership on a loaner and the RV numbers dont match up to me. See screenshot below:
RV on this loaner adjusted for miles is .53477, which when multiplied by 46595, should result in 25,522.22 not 23783.41. This is a BMW X3 with 4700 miles.
Can anyone weigh in as to why this is happening? Dealer assured me he is using .53477 but the numbers just dont look right to me.
Who said the RV should be .53477? What terms are you looking at and what is the exact mileage on the loaner? 4700 doesn’t sound correct.
I’d put it into a calculator and attach the link so people could look at it. Do you also have all the info like MF and incentives broken out as well? The calculator will automatically apply the residual penalty for loaner mileage
I know our CRM automatically adjusts for miles in lease. So he could be manually entering .53477 for the RV and then the system is correcting for the miles, which would explain the lower residual.
thanks for your answers. sorry i forgot to mention the terms and MF.
MF is .00118 and term is 36/12K, which matches up with my research.
We need to know the year/trim to know the correct RV and then the exact mileage.
Trim is 2019 BMW X3 sDrive. The car, based on the advertisement on the dearlership website, has exactly 4700 miles.
FYI, in the calc, i added the new grad special which is why the rebate is 1K higher than in the screenshot.
Are you asking about the RV or other stuff? We don’t care about MF, cap cost, incentives if you are asking about the RV. There’s no way to get an RV of $25522.22 with the info you provided.
the RV for a new 2019 BMW X3 sDrive based on my research should be 56% based on 12K/36 lease.
Since this is a loaner the adjusted RV (when taking into account the 4700 miles) is 53.747% - this is what the dealer told me he is using and what the calc spits out when put in those inputs.
what i am asking is why the residual value on the quote is 23783 when 46595*.53747 = 25522.
I am not saying they are wrong, i am just asking why the numbers dont match up.
You need to recheck that.
As @wam22 said, the dealer is probably inputting the numbers into their system incorrectly.
sorry, it should be 25043, which is still 1260 more than what he is quoting me!
so this is not a mistake on my end it, its the dealer giving me the wrong numbers? he confirmed to me that he is using 53.747% … and that he cant override it.
The residual value he’s listing is just about 51%.
It happens to be exactly what you’d get if you manually calculated the RV reduction and then plugged it into a system with the loaner mileage, and the system reduced the new RV by the mileage reduction.
Basically, he’s double counting the mileage penalty.
ahh, thank you!!! ive shot him an email. hopefully this dumb mistake gives me some leverage in the negotiation process.
Probably with whatever mileage they have entered in their system. Could be closer to 5000 miles than 4700.
Does the software allow that? I’d hope it would be more user-proof than that.
Here’s the other scam they try pulling, did it to me. They double bump the residual and they try to sell you stuff in F&I, so once they fix it and print the final contract, it looks like the add ons were a great deal. If you don’t know the MF they can monkey around with that too. This is a perfect example of why you want a lease sheet or make sure the numbers match your calculations.
I’d be extra cautious with this dealer and double check everything, I call shenanigans
They have to type the miles in, they can type in whatever they want.
Most of the CRMs just pull whatever was last entered into the system. So if we had a loaner that was pulled out with 4000 miles, but went on enough test drives that it is at 4500, the software will still default to 4000. I don’t believe there is any malicious intent here, just a user error.
I’ve seen it done twice with malicious intent, to me and someone else on here. Mine could have been stupidity too, I did it out by hand and the sales manager still didn’t believe me or was thought is often used trick would work on me. F&I guy of course had to print the right residual on the contract.
