[TifosiJZ]

Hi guys, after tracking M550i for a long time in this forum, I finally decide to get one. I visit several dealerships in great Seattle area and also talk to some dealerships near Portland in the last few weeks. However, the best deal I get is just around 3.5% off before rebates:

2021 M550i MSRP: $87,485
Discount: $3000
Rebate: $1750

One of the lease option:
12,000 miles / 36 months / 10K down payment
Monthly Payment with tax is $962
MF: 0.00122

This offer seems to be much worse than the deals I have seen in this forum. I wonder if there are any good strategies to negotiate a better deal? Or this is just the nature of Seattle market?

[Beerflakes]

At first glance, looks pretty rough. You might want to check out the forums on the Leasehackr website to see what brokers can do for you. You’ll usually pay a modest broker fee ($0-500), but will snag some of the best overall deals.

A couple suggestions:
1) try not to put money down on a lease unless you need to. Maybe use that money toward multiple security deposits (MSD) instead. They effectively buy down your interest rate, lowering your payment and are fully refundable after lease end. Down payment on lease is trouble in the case that you total the vehicle, you may not get it back.
2) I think you should be able to get 9-10.5% pre incentive discount
3) your money factor looks inflated. I think it’s still .00082. You’re being charged .00122.
4) payment still looks high even given the above. Wondering how high your tax rate is and how much they’re inflating dealer fees.

WITHOUT taxes included, your deal should be something like $550/mo with a 10% discount, 10K down, 1750 incentives, base money factor and normal fees. Run away, find a better deal.

They’re basically charging you full price (and then some) for the car, but making it seem discounted via inflated fees and interest.

[Bostoncarconcierge]

A couple of quick points...

Seattle is a tough market. You may want to consider shopping outside of it and shipping.

At this time based on current inventory and allocations of M550, a 9-10% pre-rebate discount would be a strong target for the car, assuming base MF, which changed from .00082 this month to .00086 (not much of a difference in the grand scheme).

Additionally, you should not put $10K down on a lease. If you have that much extra cash, MSDs is the way to go. This program also changed for Jan. Each MSD used to be worth 5bps for a total of 35bps if you do 7 MSD. They reduced the value of these to 4bps so the total savings is 28bps.

Assuming 9% off on this MSRP and 12K miles with the rebates you qualify for, it should look something like this (some of the fees are assumed)
$2650 for first and fees + $6300 in Refundable MSDs.
$833/Month + Taxes

[claykin]

Don't put money down on a lease.

That discount is weak. I'd keep shopping, even if you have to go outside your market.

[TifosiJZ]

Originally Posted by Beerflakes

At first glance, looks pretty rough. You might want to check out the forums on the Leasehackr website to see what brokers can do for you. You’ll usually pay a modest broker fee ($0-500), but will snag some of the best overall deals.

A couple suggestions:
1) try not to put money down on a lease unless you need to. Maybe use that money toward multiple security deposits (MSD) instead. They effectively buy down your interest rate, lowering your payment and are fully refundable after lease end. Down payment on lease is trouble in the case that you total the vehicle, you may not get it back.
2) I think you should be able to get 9-10.5% pre incentive discount
3) your money factor looks inflated. I think it’s still .00082. You’re being charged .00122.
4) payment still looks high even given the above. Wondering how high your tax rate is and how much they’re inflating dealer fees.

WITHOUT taxes included, your deal should be something like $550/mo with a 10% discount, 10K down, 1750 incentives, base money factor and normal fees. Run away, find a better deal.

They’re basically charging you full price (and then some) for the car, but making it seem discounted via inflated fees and interest.

Yeah, that's super weird. I try several online lease calculator and get a monthly payment around $903 after tax using the provided deal (10.1% sales tax). There is a $2000 fees but the number is still too high. Not sure how they inflate the numbers.

[TifosiJZ]

Originally Posted by Bostoncarconcierge

A couple of quick points...

Seattle is a tough market. You may want to consider shopping outside of it and shipping.

At this time based on current inventory and allocations of M550, a 9-10% pre-rebate discount would be a strong target for the car, assuming base MF, which changed from .00082 this month to .00086 (not much of a difference in the grand scheme).

Additionally, you should not put $10K down on a lease. If you have that much extra cash, MSDs is the way to go. This program also changed for Jan. Each MSD used to be worth 5bps for a total of 35bps if you do 7 MSD. They reduced the value of these to 4bps so the total savings is 28bps.

Assuming 9% off on this MSRP and 12K miles with the rebates you qualify for, it should look something like this (some of the fees are assumed)
$2650 for first and fees + $6300 in Refundable MSDs.
$833/Month + Taxes

Another consideration is that I may choose to trade in my current car to get some sales tax benefits. Would I lose the trade-in option if I choose to shop via some online broker on leasehackr?

[TifosiJZ]

Originally Posted by claykin

Don't put money down on a lease.

That discount is weak. I'd keep shopping, even if you have to go outside your market.

Yeah, Seattle market sucks. I'm shocked when I hear this deal after quoting 5+ dealerships.

[Beerflakes]

Originally Posted by TifosiJZ

Another consideration is that I may choose to trade in my current car to get some sales tax benefits. Would I lose the trade-in option if I choose to shop via some online broker on leasehackr?

Definitely make use of the lease calculator on leasehackr! That’s how I was able to plug in the numbers of your deal and move things around so quickly.

A trade-in might be doable, but it’s definitely better to have a clean deal. You might find a scenario where a broker is working with a dealer in your area and is willing to take your car as part of the deal. You’ll almost certainly come out better taking care of the existing car yourself.

I was in a very similar situation. I wanted a 10.5% off deal advertised on leasehackr at base money factor, but had my own vehicle I needed to get rid of. I, instead, took my leasehackr calculations for the brokered deal to one of my local dealers and said I’d like to do business with you but I need you to get close to this deal.

Considering I’d need to pay to ship the vehicle with the broker’s dealer and pay a broker fee, my dealer 10mins away offered 9% off with base MF. This worked out great, and they really didn’t give me much push back after knowing what numbers I needed to be at to make the deal. No games at that point, I literally sent them a link from the leasehackr calculator.

That’s when I also asked if they’d buy my current vehicle outright. Completely separate deal and knowing I was about to buy a 90K car from them, they gave me exactly what I needed for my existing vehicle.

This strategy might be worth a shot for you, as it’s a whole lot less complicated if it all works out. There’s also a chance the dealer will give you a big nope, and say they can’t do it. If this was the case for me, I would have 1000% have gone with one of the great brokers available to us.

[Bostoncarconcierge]

Originally Posted by TifosiJZ

Another consideration is that I may choose to trade in my current car to get some sales tax benefits. Would I lose the trade-in option if I choose to shop via some online broker on leasehackr?

Great question.

9.9/10 times a broker is going to want a deal that is not dependent on trade.

We will always recommend making sure you can unload your car via a Carvana or Vroom before proceeding w a new car deal.

Also, just want to confirm that while I am a broker, I am not soliciting any business on this site. Here only as a user and to provide any guidance I can while learning.

[LuvMyE92]

In my state (NC) the sales tax is charged on the lease payment each month, not on the purchase. So a trade-in doesn't help.

There's a dealership in California that has some awesome deals, you should check it out. Pacific BMW, I believe. Make a weekend out of it (fly in, drive home)

I concur that the lease payment seems high, but ignore that fella that says that it should be $550. That's nuts.

And people like to throw out that 10% discount off of MSRP, but IMHO it's not realistic either.

[Beerflakes]

Originally Posted by LuvMyE92

In my state (NC) the sales tax is charged on the lease payment each month, not on the purchase. So a trade-in doesn't help.

There's a dealership in California that has some awesome deals, you should check it out. Pacific BMW, I believe. Make a weekend out of it (fly in, drive home)

I concur that the lease payment seems high, but ignore that fella that says that it should be $550. That's nuts.

And people like to throw out that 10% discount off of MSRP, but IMHO it's not realistic either.

I know this response had good intentions, but I respectfully disagree with the assertion that my ~$550/mo pre-tax quoted is incorrect or that 10% in the market is not doable.

$550/mo seems extremely low for a $90K car, but keep in mind that the OP is receiving nearly $2K in factory incentives and mentioned putting $10K down. This is likely more than 1/3rd of the entire lease cost up-front. As mentioned, this is calculated with a very doable 10% discount.
See the math here
That being said, no one here is going to recommend putting money down on a lease, let alone 10 grand!

Several folks on this forum have recently secured 10-10.5% off deals on the '21 m550i, it is readily advertised on leasehackr forums, and Bostoncarconcierge is a well respected broker himself.

Ultimately though, I think the best deal is one that you're satisfied with and happy to pay for to enjoy the car. Happy searching!

[hoyas490]

Originally Posted by Beerflakes

I know this response had good intentions, but I respectfully disagree with the assertion that my ~$550/mo pre-tax quoted is incorrect or that 10% in the market is not doable.

$550/mo seems extremely low for a $90K car, but keep in mind that the OP is receiving nearly $2K in factory incentives and mentioned putting $10K down. This is likely more than 1/3rd of the entire lease cost up-front. As mentioned, this is calculated with a very doable 10% discount.
See the math here
That being said, no one here is going to recommend putting money down on a lease, let alone 10 grand!

Several folks on this forum have recently secured 10-10.5% off deals on the '21 m550i, it is readily advertised on leasehackr forums, and Bostoncarconcierge is a well respected broker himself.

Ultimately though, I think the best deal is one that you're satisfied with and happy to pay for to enjoy the car. Happy searching!

Second everything said here. I custom built my 2021 M550i using LeaseCompanion for a lease broker from Leasehackr's forums. Got 10.5% off, base .00082 MF, and all the standard incentives for my lease.

I'm in NY, so my taxes were paid in full up front, not in my payment. And on a roughly $87-88k car, my payment was $809 a month with $4,300 due at sign (inclusive of more than $2k in NY tax paid at sign).

Happy to connect you with a broker, or share proof (with PII blacked out) of my deal if it's helpful

[bluzbra]

Originally Posted by Beerflakes

I know this response had good intentions, but I respectfully disagree with the assertion that my ~$550/mo pre-tax quoted is incorrect or that 10% in the market is not doable.

$550/mo seems extremely low for a $90K car, but keep in mind that the OP is receiving nearly $2K in factory incentives and mentioned putting $10K down. This is likely more than 1/3rd of the entire lease cost up-front. As mentioned, this is calculated with a very doable 10% discount.
See the math here
That being said, no one here is going to recommend putting money down on a lease, let alone 10 grand!

Several folks on this forum have recently secured 10-10.5% off deals on the '21 m550i, it is readily advertised on leasehackr forums, and Bostoncarconcierge is a well respected broker himself.

Ultimately though, I think the best deal is one that you're satisfied with and happy to pay for to enjoy the car. Happy searching!

Well said. He probably didn't realize you were throwing the $550 number out there INCLUDING OP's intended $10k down payment. You put that kind of a down payment on any car and you're shaving off $285 from the payment. Having said that, I can personally vouch that 10% off before incentives is more than doable. I picked up my 2021 M550i last week from a small dealer here in So-Cal and that was my discount. I also received the base MF and $3250 in incentives ($1k lease credit, $750 loyalty, $1k OL, and $500 PenFed). I would personally aim for 11% off and settle on 10% any day. Given current M550i inventory levels, 10% is extremely fair.

[Bostoncarconcierge]

That’s right-

Discussing/shopping monthly payment is somewhat of an irrelevant metric. This will vary based on many different factors that are unique to each deal.

What’s important is what those above have mentioned.

As consumers, we have control over certain inputs of the equation. That is, dealer discount, ensuring the money factor isn’t bumped, and receiving all of the rebates we qualify for.

What we cannot control is the base MF/resulting post MSD MF, lease cash amount, loyalty/Corp fleet amount, and residual value.

The most important things to shop for your deal are pre rebate dealer discount coupled with base MF.

Once you have that locked in, ensure you know which rebates you qualify for and how they may or may not stack. For example, if you do not have loyalty but have Corp fleet, you cannot use Penfed with Corp fleet, or even College Grad.

Dealer Discount-In your control
Residual-out of your control but verify
Lease cash-out of your control but verify
Money factor-confirm it’s base (.00086 for Jan)
Additional Rebates-loyalty, Corp fleet, Penfed, OL code, college grad etc... Confirm what you qualify for and what can stack

Also, remember that dealers are not as motivated in Jan as they were in December to move high Msrp cars for large % discounts. They still do, but some dealers will be less likely to.

[LuvMyE92]

Originally Posted by Beerflakes

I know this response had good intentions, but I respectfully disagree...

Originally Posted by bluzbra

He probably didn't realize you were throwing the $550 number out there INCLUDING OP's intended $10k down payment.

Correct, I did not include the $10K. I thought we had sufficiently tossed out that idea.

Also, in my defense, I didn't consider that the discounts are likely higher on the 550 than on the 540. I did a lot of shopping and negotiation on my 540, and on top of that, my memory failed me... apparently I did do better than 10% but man, it was a hard slog. And it was back in August 2019, pre-covid, so comparisons are difficult.

[LuvMyE92]

I appreciate that Beerflakes did not take offense at my post, and we did not all slither down the Internet hole of pointless arguments and dangerous rhetoric.

[cwhit122]

I just purchased mine here in VA with 10k miles/ 36months with 0 down outside of 1st payment for $1050 monthly. MSRP was 84k and they knocked off 7k for a cost of 77,485. Im a strong proponent of putting down the lease amount on a lease vehicle especially if an accident occurs you won't get that cash back.