[M6-Coupe]

Originally Posted by Longboarder

Cool. My M8 lease is the same as a new M3/4.

Yup.
And funny thing is that new M3/M4 is about 4" longer than F8x M3/M4.
Having said that M8 is only 2.7" longer that G8x M3/M4 but much more powerful, quicker and of course luxury

[doug_999]

Originally Posted by DAC17

You guys are focusing on the wrong thing if you're just looking at the monthly payment. First negotiate the purchase price (off MSRP), then review the lease terms. If your dealership is honest, they'll use the BMWFS rates and the numbers are what they are. Don't get hooked into monthly payments; the sales guys love that!

I think when talking leases this is fine - at least in general terms. The discussion is about ranges of payments and as long as you know the car at play and term/miles, it is pretty straightforward - at least with the exception of taxes which vary significantly by state.

Now... back to your point, if you do run the numbers the way you suggest, then it is clear that $800/month is not going to happen without some serious incentives

[ROBERT1183]

Yeah never go into the dealership and tell them what you wanna pay a month. always work on the price of the car first. The object is to close the gap as much as you can from the msrp to the residual value.

[doug_999]

Originally Posted by ROBERT1183

Yeah never go into the dealership and tell them what you wanna pay a month. always work on the price of the car first. The object is to close the gap as much as you can from the msrp to the residual value.

I'm not sure I agree. You can close the gap as much as you want, but then they can mess with your payment in a multitude of ways after that.

Work out what the payment is you want and then tell them that.

You say "I want $800/month, 10K, 3 years, zero out of pocket"

You don't say "I want the car for $62K, I want the MF without markup, and I want to lease the car for three years at 10K per year"
Cause then they say "Ok, that will be $950 per month"
and then you get to unwind everything. Why fight. Tell them where you need to be.

The old "don't tell them what payment you want" stems from the fact that they could / can - make the payment whatever you want - provided they stretch the loan out to 900 years. That's not possible in a lease - be clear on the term and the miles and then go for the payment. Who cares how they get there.

[Thewolfbmw]

Thought not for most, another option is the BMW Select.

If you qualify for tier 1, the residual factor percentage (balloon amount) is currently 38% of MSRP. Highest I can recall seeing on this program. X3M's where close for a few months after launch but no longer.

Interest rate is 1.9%. It was .9% mid 2020.

So negotiate 5 to 7% off MSRP to offset some (no where near all) of the instant depreciation.

The payment will be lower than a lease. You can pay more (when you can) to limit being upside down.

But know, you will be upside down by paying minimum payment.

80k msrp with 7% off and then adding sales tax and fees, probably would put one at $915 a month.

If you kept it for the 5 years (not possible for me), I would imagine it would be worth 30k at trade in, the amount of the balloon.

Just a thought.....

Happy hunting and I will be ordering my AWD ///M3 when allocations hit. I had a X3M, I can't wait to see what the new ///M3 will be like with awd.

[ROBERT1183]

Originally Posted by doug_999

I'm not sure I agree. You can close the gap as much as you want, but then they can mess with your payment in a multitude of ways after that.

Work out what the payment is you want and then tell them that.

You say "I want $800/month, 10K, 3 years, zero out of pocket"

You don't say "I want the car for $62K, I want the MF without markup, and I want to lease the car for three years at 10K per year"
Cause then they say "Ok, that will be $950 per month"
and then you get to unwind everything. Why fight. Tell them where you need to be.

The old "don't tell them what payment you want" stems from the fact that they could / can - make the payment whatever you want - provided they stretch the loan out to 900 years. That's not possible in a lease - be clear on the term and the miles and then go for the payment. Who cares how they get there.

Everyone has their own way of doing things. I work in the car business. Its not what Ive done on my 3 leases. I negotiated the price of the car first. I knew what my mf should be. I took all the fees and plugged them into a lease calculator to know approximately what my lease payment should be and what my out of pocket was. I was able to get my 18 comp for $719 a month. I paid my tax, acquisition, and dealer fees upfront.

[doug_999]

Originally Posted by ROBERT1183

Everyone has their own way of doing things. I work in the car business. Its not what Ive done on my 3 leases. I negotiated the price of the car first. I knew what my mf should be. I took all the fees and plugged them into a lease calculator to know approximately what my lease payment should be and what my out of pocket was. I was able to get my 18 comp for $719 a month. I paid my tax, acquisition, and dealer fees upfront.

I think you are misunderstanding.

My point is, if you feel good about the $719 a month and you get it, what do you care how they got there? If my dealer wants to play games with the selling price and MF, I couldn't care less - as long as they hit my number.

[HawaiiG80Green]

Originally Posted by doug_999

I think you are misunderstanding.

My point is, if you feel good about the $719 a month and you get it, what do you care how they got there? If my dealer wants to play games with the selling price and MF, I couldn't care less - as long as they hit my number.

Yupyup. This is how I approach it too. Faster way of negotiating since we know what our target number is. Which is always minimum 1% every month of the msrp or less.

I let them calculate what discounts they need to get there. And it satisfies their question all the time. Haha.

Always been successful on this

[OperationSunset]

Originally Posted by hawaiiM2

Yupyup. This is how I approach it too. Faster way of negotiating since we know what our target number is. Which is always minimum 1% every month of the msrp or less.

I let them calculate what discounts they need to get there. And it satisfies their question all the time. Haha.

Always been successful on this

Couldn't agree more. I recently leased a regular X3 and calculated everything on my side and said "I want a 480/mo payment with x total due at signing including tax in zip 94XXX. You should get there if you apply this residual, this MF, these rebates, and this tax rate." Was in and out in 30min and had the car delivered later that day.

Another way I approach leases is "I want the total lease cost out of my pocket to be <20k (assuming this is what I calculated) for 36 months."

[Jason]

Updated with March lease program. Residuals have increased - please see first post.

[unfoundnemo]

Originally Posted by Jason

Updated with March lease program. Residuals have increased - please see first post.

Those are starting to look pretty respectable. Thanks!

[yousefnjr]

Originally Posted by ROBERT1183

Yeah never go into the dealership and tell them what you wanna pay a month. always work on the price of the car first. The object is to close the gap as much as you can from the msrp to the residual value.

Better yet, don’t go into the dealership at all until you’ve already negotiated exactly the terms you want

[jmg]

Originally Posted by DAC17

You guys are focusing on the wrong thing if you're just looking at the monthly payment. First negotiate the purchase price (off MSRP), then review the lease terms. If your dealership is honest, they'll use the BMWFS rates and the numbers are what they are. Don't get hooked into monthly payments; the sales guys love that!

I think anyone who knows how leases work and how to negotiate one already knows to talk purchase price first, and only accept buy rate MF. Cheapest payment is generally the 36/10k or lower miles. Residuals are set monthly and they can see those at the top of the thread. Unless there are heavy discounts, with only a 57% residual and $500 incentive, it's going to be difficult to get the monthly under $800. With zero down and zero drive-off and no trade, the monthly is basically the bottom line.

[jmg]

Originally Posted by doug_999

I'm not sure I agree. You can close the gap as much as you want, but then they can mess with your payment in a multitude of ways after that.

Work out what the payment is you want and then tell them that.

You say "I want $800/month, 10K, 3 years, zero out of pocket"

You don't say "I want the car for $62K, I want the MF without markup, and I want to lease the car for three years at 10K per year"
Cause then they say "Ok, that will be $950 per month"
and then you get to unwind everything. Why fight. Tell them where you need to be.

The old "don't tell them what payment you want" stems from the fact that they could / can - make the payment whatever you want - provided they stretch the loan out to 900 years. That's not possible in a lease - be clear on the term and the miles and then go for the payment. Who cares how they get there.

That leaves a lot of room for them to try and pull a fast one. Zero down is NOT the same thing as zero drive-off, so they could unload the fees on you at the last second after seemingly agreeing to "$800/mo zero down". Oh they forgot to mention that the first month payment is due immediately. Or they give you a 7k mile/year lease. You didn't specify right? You're opening yourself up to the standard tactics. Not so if you stick to the basics of lease negotiations.

It's much cleaner to negotiate the purchase price first. I don't even talk about zero down because it doesn't matter. It's always about the discount and the interest (money factor). How much can you give this car to me for buy rate money factor? Get the answer and call the next dealership on the list and get their quote. Then get them to beat each other. Outside of those two numbers, purchase price and money factor, it's all non-negotiable math.

When I drive away with a new leased car, I know I paid the best price because I negotiated the purchase price and I paid buy rate MF. I paid literally nothing to drive home that car that day unless I pains MSDs. Let all the fees residualize for all I care.

[jmg]

Originally Posted by OperationSunset

Couldn't agree more. I recently leased a regular X3 and calculated everything on my side and said "I want a 480/mo payment with x total due at signing including tax in zip 94XXX. You should get there if you apply this residual, this MF, these rebates, and this tax rate." Was in and out in 30min and had the car delivered later that day.

Another way I approach leases is "I want the total lease cost out of my pocket to be <20k (assuming this is what I calculated) for 36 months."

When you give them numbers they understand and make sense, leasing can be painless. They know you did your homework and know exactly how the lease works and they can't increase the MF on you.

Talking about monthly, in most cases, paints a target on your back.

[Wills2]

The pricing is a joke in the UK as well, they trying to offer £1300 a month which in $ is 1800 when they pumped out the X3M for £549, I've had 4 M3s and no way on Gods green earth would I ever pay those kind of figures.

If it stays like this they will be rare cars, divisive looks and silly monthlies do not a sales success make.

[mattssi]

Originally Posted by unfoundnemo

Those are starting to look pretty respectable. Thanks!

56% to 57% doesn't really change the equation much. Need some cash incentives for sure.

[unfoundnemo]

Originally Posted by mattssi

56% to 57% doesn't really change the equation much. Need some cash incentives for sure.

Wasn't it 54 initially?

[mattssi]

My recent quote as of a couple days ago showed 56% for 10K anyway.

[alz0rz]

It jumped 2%. Huge change.

[BMW Lunatic]

Where are the days of 58-60% residual and $4000 in rebates m3s for 700 a month with taxes and fees . Miss those days man damn !!!

[CanesM4]

Originally Posted by alz0rz

Not possible to get an 800-900 lease payment on this car with current available discounts and no lease money down.

I'm at $950 a month including tax and that was with February's residual of 55% it's now 57% so that's probably another $50 or more a month off of that. No money down, just drive off costs. I did get a little over 9% off of MSRP though.