Firstly, let me say I have been reading these forums for awhile and your advice is invaluable and very kind of each of you. Thank you.
I have two deals from two separate dealerships in my area, both for 2018 430i’s with slightly different specs.
One is fully loaded w/o M-sport package
MSRP: 61350
Selling Price is around (sorry I haven’t been given specifics yet) $57000
MF: 0.00175
Residual: .57
Trade-In: $7000
Lease Credit: $2000
Waived Tint Fee: $968
Down Payment/Monthly Cost: $3000/$555mo or $0/$640mo
Second is everything the above w/o the Executive Package and 19" wheel upgrade
MSRP: $57000
Selling Price is around (sorry I haven’t been given specifics yet) $52000
MF: 0.00175
Residual: .57
Trade-In: $6500
Lease Credit: $2000
Down Payment/Monthly Cost: $3000/$515mo - haven’t been quoted $0 down option.
I was personally hoping for $0 down around $500 for either, without even considering my trade-in. I should point out that taxes/title/fees is all included, and the first payment is taken care of so in reality this is for 35 months. I think I can get the second dealer to value my trade-in for $7000, potentially get me a deal for around $500/mo with $3000 down.
What do you guys think? Rule of thumb is <1% MSRP, which I am aware of, but I am having a tough time getting the dealer on the same page as I am. Do you think this is an acceptable deal?
$10grand down between trade and cap cost to get to those figures? Doesn’t seem like a deal to me. Also if you have a higher trade in offer from one dealer tell the other to match or do better.
Where do you see wiggle room here? The selling price I assume? I got them to give me the base MF. What can the selling price of $61350 MSRP be negotiated down to, realistically?
Also, yes I agree, let’s take the trade-in out of the equation. I imagine getting them to $0 down for $610/mo with no trade-in would be a good deal and within the <1% MSRP arbitrary rule?
Then bring the trade-in back to handle acquisition fees, etc. etc.
He threw it out on a whim. He said it’s down to the “base”. Maybe that MF is incorrect but I can confirm with them. What is the buy rate? 3.8-3.9% APR?
Well, maybe that is what he meant and I misheard over the phone, because I could not get the numbers to add up.
If we update to this:
Residual: .57 - this is confirmed
MF: 0.00151
MSRP: 61350
Selling Price: ?
Down: $0
Monthly: ?
What would be considered solid numbers in both of these, without having the dealer slam the door in my face? I am thinking around $610/mo, backwards calculating to a sale price of $55000.
Does $0 down mean on the lease? I assume there is a difference between “Drive Off” and “Down on the lease”. Drive Off would include first payment, registration/doc fees etc. In my state, I would consider tax included in the $610 figure.
Agree, that request is brash, for sure, but they keep wanting to lump my trade-in into the entire cost and saying $575/mo off the lot, due for the 2nd month on. It’s muddying up the numbers (which I assume is what they want).
Would you consider the aforementioned $575/mo higher in the thread deal solid?
Makes sense. So, treat the trade-in completely separately, take the cash instead.
Removing it entirely, I guess I am further away from a deal with them than I thought I was. It makes sense to me to pay $610/mo with close to $0 down for a $61350 vehicle.
Sounds like I need to start from scratch and restart negotiations, maybe with a different salesman.
@nctoon the way to approach this IMO is to go to a different dealer and negotiate a deal on a car WITHOUT mentioning the trade in. Once you have the numbers where you want them, that’s when you bring up the trade in. They will try to lowball you on the trade-in but you can then decide what to do with it. The way you have it now, is they can give you a discount on the new car but will just make it up on the trade in or vice versa. If you negotiate the new car on the front end, you know where the numbers are on the new car and now it’s a matter of just negotiating the trade in. I’d start with a completely different dealership.
