[LBBF87]

Hi All,

I am working with a dealership to get in line for an AWD M3.

They are asking me to submit a signed purchase order, spec sheet (fine), and a $1000 deposit.

This may be a very noob question but where does this leave me when it comes to negotiating on pricing once the allocations open up?

Am I more or less stuck due to the signed purchase order?

[xlover]

You should agree on a price (%off msrp as the awd pricing is not out) and as many of the financing or leasing details you can at this time. For example: require base money factor or base bmwfs apr if using bmwfs

[LBBF87]

Originally Posted by xlover

You should agree on a price (%off msrp as the awd pricing is not out) and as many of the financing or leasing details you can at this time. For example: require base money factor or base bmwfs apr if using bmwfs

Gotcha, so I plan on leasing so would we need to agree on a residual in advance?

[My8thMandcounting]

Yes. Although, like folks in another thread, I don't really care about the residual that much as long as the monthly is where I want it. I don't think I would sign a purchase order if I didn't have my cost of leasing in hand. When I ordered mine, I knew exactly what I would be paying for it (unless BMW numbers moved more favorably to me). I certainly wouldn't put money down without a guarantee on the price.

[LBBF87]

Originally Posted by My8thMandcounting

Yes. Although, like folks in another thread, I don't really care about the residual that much as long as the monthly is where I want it. I don't think I would sign a purchase order if I didn't have my cost of leasing in hand. When I ordered mine, I knew exactly what I would be paying for it (unless BMW numbers moved more favorably to me). I certainly wouldn't put money down without a guarantee on the price.

This is going to be tough given AWD pricing isn't out. I know it's stupid and I will pay for wanting the car in Sept/Oct but I have an itch I can't seem to scratch.

[xlover]

Knowing you are leasing:
Residuals are set by bmwfs and vary somewhat month to month so you won't know the final till around delivery, this number will NOT be negotiable for the chosen mileage limit
You won't know the final msrp till 2022 pricing guides are out
however you can negotiate:
-% off msrp
-That any incentives available at delivery are added to your % off msrp
-That your lease is at base money factor (lease interest rate) or [base + x markup]

You can lock in rates up to 60 days before delivery but it's likely best rates will be closer to delivery as this is an all nee vehicle

[jmg]

Originally Posted by LBBF87

Gotcha, so I plan on leasing so would we need to agree on a residual in advance?

You don't "agree" on a residual. It's set by the bank. You cannot negotiate it. You CHOOSE how long and how many miles you want and that determines your residual. Residuals change month to month so I would lock in the current numbers and negotiate for the purchase price now. If the numbers get worse, you are safe, if the numbers get better then you can always go with the new numbers.

Keep in mind your deposit doesn't tie you down. YOU CAN GET A REFUND ON YOUR DEPOSIT. Don't let them tell you otherwise. You can also renegotiate the purchase price but there's kind of a gentlemen's agreement to not do that. Agree on the all the numbers before hand so you not only get the deal you feel you are comfortable with, but you don't put your SA in a bad position. Yes, they are there to sell to you, and you could say they are "the enemy", but they are still people after all, there is a gentlemen's agreement to lease/purchase the car if you order provided you get the deal locked in, and the car is delivered as promised. This will develop a relationship between you and your SA so that future transactions can be mutually beneficial.

[jmg]

Originally Posted by My8thMandcounting

Yes. Although, like folks in another thread, I don't really care about the residual that much as long as the monthly is where I want it. I don't think I would sign a purchase order if I didn't have my cost of leasing in hand. When I ordered mine, I knew exactly what I would be paying for it (unless BMW numbers moved more favorably to me). I certainly wouldn't put money down without a guarantee on the price.

The discussion is about a deposit, not money down. There is a big difference.

BTW residual is a huge factor in determining your monthly and your monthly doesn't mean squat if you put money down or only get 7k miles when you want 10k etc. I highly suggest you do your research and look up exactly how leasing works and what all the numbers mean. You should be able to calculate your exact payment using the purchase price, residual, money factor, incentives, tax, and doc fees. If you don't care about the residual, don't know what a money factor is, and only care about the monthly then your SA is a lucky person because they are going to make a lot of money on you.

[GOLFFRR]

Originally Posted by xlover

You can lock in rates up to 60 days before delivery but it's likely best rates will be closer to delivery as this is an all nee vehicle

60 days for east coast dealers, 90 days for west coast dealers. (credit app will be run each lock in period, must take delivery within window to take advantage of locked time, can't mix months programing)

deposit is standard. It locks you in for the first one they get. They may not get many, depends on allocations and how many that dealership gets. You can get a car from any US dealer but if you want to get it from that exact one then getting on the list with a deposit may be a good move. As far as locking in pricing etc.. nothing is out yet on that so its hard to really lock anything in at this time.

[My8thMandcounting]

Originally Posted by jmg

The discussion is about a deposit, not money down. There is a big difference.

BTW residual is a huge factor in determining your monthly and your monthly doesn't mean squat if you put money down or only get 7k miles when you want 10k etc. I highly suggest you do your research and look up exactly how leasing works and what all the numbers mean. You should be able to calculate your exact payment using the purchase price, residual, money factor, incentives, tax, and doc fees. If you don't care about the residual, don't know what a money factor is, and only care about the monthly then your SA is a lucky person because they are going to make a lot of money on you.

Sorry, poor word choice on the money down. I wasn't implying it was a down payment. As to the other matters, yes, I fully agree there needs to be an understanding of how leasing works. And, you should have a pretty good idea of what the monthly payment should be based on those factors. If you know that, then on some levels how they get you to that point shouldn't matter as much to you.

[LBBF87]

Tried to swing a discount but according to the CA no one is getting discounts let alone on the first AWD allocation. I might bite the bullet...

[Jcali86]

Originally Posted by LBBF87

Tried to swing a discount but according to the CA no one is getting discounts let alone on the first AWD allocation. I might bite the bullet...

I got no discounts and put a $1000 deposit on the first awd order (Bay Area). They are going for over msrp in a few places around here so I'll take $0 off instead of +$!

[Barry9020]

does anyone know when the AWD models are coming out?

[Saturatedfat]

Originally Posted by Barry9020

does anyone know when the AWD models are coming out?

Last I heard it was July for orders being accepted. But, I'd be leary considering all the chip shortages and covid lingering.

[xlover]

Originally Posted by Barry9020

does anyone know when the AWD models are coming out?

There really hasn't been much discussion on this topic... but if you try the search a thread or two (or 100) might pop up

[Pantagathus]

Originally Posted by Saturatedfat

Last I heard it was July for orders being accepted. But, I'd be leary considering all the chip shortages and covid lingering.

It's a little unclear if it's July delivery or July production. I assume July production, otherwise they're not giving enough of a gap between RWD launch and AWD. I assume they're aiming for ~6 month gap between them, so March deliveries and then July production for ~August/Sept delivery. Who knows though

[Jcali86]

Originally Posted by Pantagathus

It's a little unclear if it's July delivery or July production. I assume July production, otherwise they're not giving enough of a gap between RWD launch and AWD. I assume they're aiming for ~6 month gap between them, so March deliveries and then July production for ~August/Sept delivery. Who knows though

Was there a reason given for awd being later though? I think it's just to help production and get the manuals out the way, as I'd assume the sales of them will drop off quickly.

[Pantagathus]

Originally Posted by Jcali86

Was there a reason given for awd being later though? I think it's just to help production and get the manuals out the way, as I'd assume the sales of them will drop off quickly.

I assume it's to keep the buzz going. Remember a bunch of markets aren't even getting the 6MT. I think the AWD will be hyped like a "new car", there'll be a ton more reviews and hopefully that mops up the people who were on the fence, while keeping momentum for the car going

[Jcali86]

That would make sense, guess we'll wait and see. I imagine they are waiting for the awd until they announce the Nurburgring times?

[LBBF87]

Managed to agree on 3%. Will take it and run. Hopefully will have delivery in August. Now just need to find an IoMG car to make sure I like the color.

[jailonacs99]

Originally Posted by LBBF87

Managed to agree on 3%. Will take it and run. Hopefully will have delivery in August. Now just need to find an IoMG car to make sure I like the color.

OP, do you mind sharing or PMing me your dealership?

I'm near the east coast and every dealer I've reached out to is offering MSRP. Better than the west coast where they seem to be asking 20% above MSRP, but watching reviews on YouTube where dealers have several in stock and/or are offering discounts has me antsy. 3%+ off would cover transport from any national dealer and then some, so I'd be willing to work with them.

As it stands, my local dealer is asking for a $1000 deposit to secure a slot, and then another $4000 after the build is completed "in order to get" a production number. Since every dealer here is selling for MSRP that doesn't make much difference, although there are a few posts on the forums about the wariness about having large deposits down without a clear production number. Where is the chicken or the egg on that?

[BzsBimmer]

You should be getting a production number prior to it being built. Not sure why they’d ask for a ransom like that since the car would be done.. unless I’m not understanding the dealer lingo.