Best New car deal for Sept 2011 Z4

[Memphis1]

??? You can find MFs, I'm at work but will get you the link

[BlueZ4AZ]

Originally Posted by SANguru

not sure where you are going with this. Cap cost is a only small portion of the lease equation. There is a buy rate that dealers mark up. The mark up is negotiable and so is the cap cost. Why wouldn't you negotiate based on monthly payment because a lease is all about cash flow and based on the change or those 2 variables.

What I meant was that you don't want to negotiate on monthly payment ALONE, and you need to be aware of the fact that CAP cost, etc are all negotiable, as I previopusly stated.

If a buyer is negotiating monthly payment and not educated on all the other negotiable items on a lease, that when the dealer takes total control of the situation.

[BlueZ4AZ]

Originally Posted by Memphis1

??? You can find MFs, I'm at work but will get you the link

You can also do the math yourself and "back into" what the MF the dealer or Mfg is offering by entering all the other variables. Then enter a number of MF's until the monthly pmt matches what the Mfg quoted.

This is the calculator I use. It allows you to change and play with all the variables.
http://www.leaseguide.com/calc.htm

[Memphis1]

2012 BMW Z4 sDrive28i
36 Month – Residual 62% of MSRP – .00195 Base Rate

2012 BMW Z4 sDrive35i
36 Month – Residual 62% of MSRP – .00195 Base Rate

2012 BMW Z4 sDrive35is
36 Month – Residual 62% of MSRP – .00195 Base Rate

[Memphis1]

http://www.truecar.com/
http://www.ridewithg.com/
http://www.leaseguide.com/calc.htm

do your homework, walk in to dealer, walk out with awesome ride at low price

[BlueZ4AZ]

Originally Posted by Memphis1

2012 BMW Z4 sDrive28i
36 Month – Residual 62% of MSRP – .00195 Base Rate

2012 BMW Z4 sDrive35i
36 Month – Residual 62% of MSRP – .00195 Base Rate

2012 BMW Z4 sDrive35is
36 Month – Residual 62% of MSRP – .00195 Base Rate

That's a somewhat hefty interest rate of 4.68%

[SANguru]

Originally Posted by BlueZ4AZ

What I meant was that you don't want to negotiate on monthly payment ALONE, and you need to be aware of the fact that CAP cost, etc are all negotiable, as I previopusly stated.

If a buyer is negotiating monthly payment and not educated on all the other negotiable items on a lease, that when the dealer takes total control of the situation.

but you are negotiating the cap cost and the rate to get to a payment amount. Leases are all about cash flow.

[BlueZ4AZ]

Originally Posted by SANguru

but you are negotiable the cap cost and the rate to get to a payment amount. Leases are all about cash flow.

If you've sat with several car dealers before and negotiated leases you'd know exactly what I meant and your post would not have started with a "but.......".

Either that or we have a language gap.

Never mind. I'm not re-explaining it a third time.

[SANguru]

Originally Posted by BlueZ4AZ

If you've sat with several car dealers before and negotiated leases you'd know exactly what I meant and your post would not have started with a "but.......".

Either that or we have a language gap.

Never mind. I'm not re-explaining it a third time.

that's funny considering that I've done 3 BMWs this year alone... You???? you obviously have no idea what you are talking about.

[BlueZ4AZ]

Originally Posted by SANguru

that's funny considering that I've done 3 BMWs and a McLaren MP4-12C this year for delivery next year. you????

It's beyond funny. It's shocking. Perhaps every car dealer you've dealt with never tried the popular car sales tactic of trying to sell you on monthly lease payments alone. That would be odd, but possible.

I've purchased 10 new cars over the past 25 years (all financed or leased). Then there was the 2 cars I negotiated for my girlfriend (now wife) and my father's 2008 Enclave I negotiated for him. That makes 13.

I the past 25 years, every singe time the dealer started out negotiating with me on a lease they come out and try to ask what monthly payment they need to be at to make the deal today. Every time my response was, "The deal I am ready to do today is the one that has X Money Factor, X Residual Value, X Gross CAP Cost, X Cap Reduction, X NET Cap Cost, and X Lease Term...and, oh by the way, the monthly lease payment we arrive at when we plug in those variables"

[CeEl]

Originally Posted by SANguru

but you are negotiating the cap cost and the rate to get to a payment amount. Leases are all about cash flow.

You two are almost saying the same thing ... what Blue is saying is that if you tell the dealer "the monthly payment is too high", the dealer will most likely pull some tricks like suggesting a longer lease - but *not* lowering the interest rate or lowering the price of the car or any of the other variables.

Outcome is a lower monthly payment for you, but still more profit for the dealer and not necessarily a better deal overall for you. That is why concentrating only on monthly payment isn't a great tactic (usually). Now, I did notice you wrote about negotiating the cap cost as well -- hence my statement that the two of you are almost saying the same thing.

It's pretty easy to experiment with the two negotating tactics in an area with some competition. Go to one dealer and talk about monthly payments, go to the other and talk about outright purchase. It's amazing how the conversation can take different paths and how much (or little) control one has over how the conversation goes.

[Z42011]

I took a slightly different approach. I put together a spread sheet and looked at the total cost of each deal. It is very hard to compare dealers who have different cars for sale with all different factors. But for each deal, you can evaluate the total cost of the deal by adding up the total cost of all the payments, and add that to all costs required at signing. The only way I could make sense of multiple deals was with a spreadsheet and I always calculated the monthly payment given the known variables.


Something like this:

Name
Location
Dealer
Ext Color
months of lease
Car
MSRP
Invoice
Sale Price
USA promotion/Loyalty
Net Cap
Above or below invoice
Residual %
Residual $
Money Factor
Interest rate

Down payment

Lease price

Security Deposits - refundable
Tags/title - est
Bank Fee
Doc Fee
Sales Tax-Down, Bank, Doc

Total Down
23 lease payments

Total cost
bmw cca

Cost per mile


-------------------------------


Lease calculations:
dep fee
(Net Cap-resid)/24

Fin fee
(Net Cap+resid)*mf

Payment = dep fee+fin fee

[BlueZ4AZ]

Originally Posted by CeEl

You two are almost saying the same thing ... what Blue is saying is that if you tell the dealer "the monthly payment is too high", the dealer will most likely pull some tricks like suggesting a longer lease - but *not* lowering the interest rate or lowering the price of the car or any of the other variables.

Outcome is a lower monthly payment for you, but still more profit for the dealer and not necessarily a better deal overall for you. That is why concentrating only on monthly payment isn't a great tactic (usually). Now, I did notice you wrote about negotiating the cap cost as well -- hence my statement that the two of you are almost saying the same thing.

It's pretty easy to experiment with the two negotating tactics in an area with some competition. Go to one dealer and talk about monthly payments, go to the other and talk about outright purchase. It's amazing how the conversation can take different paths and how much (or little) control one has over how the conversation goes.

Agreed, it seemed like we were in a situation where I said:
"The sky is blue", then SANguri said, "No its not, it's blue".