Did I misread something, or did the OP also make a $2500 down payment?
No, $766.84 if his BMWFS incentive was $1750 (see 9.A-1)ā¦but yes, the ā1% ruleā sucks for this reason and many many others.
$1462 DAS amount excluding MSDs
Oh, is this why incentives are taxed (b/c conceptually itās as if the manufacturer gave you taxable āincomeā that was used to reduce cap cost)?
Thanks for clarifying, @chrishs2000 and @mllcb42.
Yep, forgot about his $766 down. Still, under $400/mo all in
yeah it seems itās really weird thenā¦ the vehicle does come with a license plate, I guess thatās b/c itās a loaner, cuz all other used cars posted on their website have license plates.
I donāt know if thatās the reason why the fees is so cheap, but would like to post here so that people can set correct expectations when they are trying to lease a loaner, at lease in Nor-Cal.
Thanks for chiming in, @Dwight047 and @Jon! I didnāt know that before and thanks for sharing!
One extra point though, Iāve posted the calculator link and no matter itās pre-MSD or post-MSD the monthly amt doesnāt exceed $350ā¦ I guess they just somehow messed it up.
Thanks for the reply, @Ursus! yeah the total lease cost is not too bad, but it really sucks to see how I got played by the dealers and to see them lying to my face. I repeatedly asked about 0-down and using the base MF, and they confirmed no less than 3 times, even put something down in written like āMF: .00142ā. But in the end I found them still using .00172. Thatās really terrible.
Why didnāt you say something when the numbers didnāt match your calculations instead of signing?
@leaserookie You got almost 21% off, you should almost always expect to have the MF marked up. They gotta make some $$ some how. In the end you got a good deal. Enjoy in good health!
IIRC, the plate is tied to the car in CA, not the person like in some other states, so it makes sense the car had a plate already if it was in a loaner state/being used.
Donāt beat yourself up too bad. The entire sales process is designed to extract as much profit from every car sold if at all possible. Depending on the dealer Iāve seen them add 1/100th to the MF in an attempt to make SOMETHING on a deal. Just review the mistakes youāve made and do better next time. Itās helpful to complete as much of the deal as possible to give yourself enough time to properly review. Hell, half the time the salespeople donāt even know how leases work!
I almost closed a deal on a CPO 2017 Honda CR-V and I gave up on the dealership when they tried passing on the vehicle inventory tax and high doc fee after a week of negotiations. They lost a $25k sale over $150.
On the flip side, you walked away from a deal over 150 bucks? On a 25k sale, 150 bucks is a blip on the radar. I totally understand wanting to save moneyā¦but 150 bucks, or .006% of sales price?
Iām surprised to see your response on a forum driven by finding the absolute best price and highlighting dealership antics and deception. Especially in this thread about how easy it is to get tripped up in the car buying game even going into it somewhat informed.
I donāt have to buy a car if the dealās not right and the vehicle is in abundance locally. I refuse to play the āpay our fees or elseā game so I walked. Just as I would advise anyone here to do the same. The vehicle inventory tax specifically is a 0.02% tax levied on dealership inventory every year and I donāt think itās fair to pass that cost onto consumers. Similar to marking up money factor, artificially inflating prices with āprotection packagesā and vin etching. Itās all part of the game and I wasnāt willing to play.
Who cares about marking up MF if the deal is right. If someone is offering you 23% off a BMW in lieu of an inflated MF, who cares. Youāre still getting a deal. Letās not forget, dealerships ARE in the business to make money. If the discount on the front end is good enough to offset the MF markup on the back end, why does it matter if itās marked up. You canāt have it both ways, and I assure you, unless they are absolutely desperate to move a car, that discount WILL go down if you demand buy rate.
Iām all for getting a good, fair price, but you have to draw the line somewhere, or youāll never be satisfied. 150 bucks is not worth quibbling over or walking if the rest of the deal makes sense, and the car fits the bill, inventory tax or not. Weāre talking about 4 bucks a month over 3 years. FOUR DOLLARS!
At some point, you have to decide if walking away and continuing the fight vs taking what is available, which, by all intents and purposes is a good deal. 150 bucks over the term of the lease/purchase isnāt worth it to me to continue.
I care. This forum cares. Whatās one of the first things someone asks on here when a signed deal is posted?
- Can we see specifics of the deal and a breakdown of MF and residual?
- What was MSRP and what did you negotiate down to? Was it at least 10% off?
- How much did you put down? (DAS)
The deal isnāt right if the MF is marked up. As a consumer who has spent a lifetime building a tier 1 credit score I donāt think itās fair that Iām charged anything less than the absolute best rate that I qualify for. Why would I settle for less especially over a multi-year term?
How does one determine a fair price exactly? The consumer available resources to help us determine vehicle value are inaccurate at best if not completely useless and completely ignored by the dealership industry. Dealers have access to tools that tell them what a similar car sold for at auction, what similar cars are selling for nationwide, etc. They will not tell you how much they are into a car for so how, as a consumer, should I expect to know when Iām getting a fair price? There is too much information missing in the equation.
Sorry if I donāt shed a tear for the plight of car sales but theyāve dug their own grave. I did draw the line, set expectations, and took my business elsewhere. Sounds like we approach car buying differently. Iām not looking for a good deal - Iām looking for the best deal.
If the discount compensates for it, who is to say the deal isnāt right? Plenty on here would agree with me.
Because the discount on the car compensates for it. If they give me 50% off a 50k car, but a 12% interest rate, and 25% off with 1.2%, Iāll take the 12% interest rate all day long, regardless of having an 800 score.
I got news for youā¦someone doing the exact same thing private party isnāt going to tell you how much theyāre into a car either. That will greatly diminish their opportunity to get as much profit as they can out of that car. This isnāt a dealer problemā¦itās a capitalism problem. Both dealer and private party have all the right in the world to get as much out of that car as they possibly can. Neither is going to give you a hint as to what that is for them.
Speak for yourself. Some posters may care, some may not.
Probably not, actually, since the average buyer isnāt trying to get a max discount and lowest MF.
Thereās nothing wrong w/ you wanting the best dealā¦ And thereās nothing wrong w/ the dealership telling you that they arenāt going to give it to you.
This is nothing but vanity. And vanity surrounding something like credit scores ā¦SMH. Scores are pointless as long as you qualify for Tier 1. Doesnāt matter if your score is 840 or 710.
Would you take a $600 payment with 0 MF markup or a $500 with max MF markup? Same DAS