Yet another lease/purchase question.

[trans_lux]

I have been researching purchasing/leasing a new M5 and have found a car that is going into production that I can choose my options.
The details:
1. The car has an MSRP of $92,940 –includes options, reduced gas guzzler tax, destination.
2. I’m trading in my M3 and am 3k upside down. Lease buy out $50,000. Trade value of $47,000.
3. I’m getting a tax credit on the trade so my tax is around $500.
4. Doc fee, misc. charges of around $500
5. I have a deposit from the previous lease that will not be required of $900
6. So the all in number is $95,540.00
7. I’m using a residual of 73%- 24 months 10K annually
8. I’m using a money factor of .003 or 7.2%
9. I get $1644.07 per month using the lease calculator on http://www.leaseguide.com/calc.htm
10. The dealer came back with $ 2,000 a month.???

They claim the Money Factor of .003 is their buy rate and that they need to make money on this. So the Money Factor is more like .0042. I also think they are giving me less on my trade than they are telling me.
If I use the absurdly high MF and less on my trade it does add up to close to 2k.

My feeling is that this is a bad deal-for me due to the high interest rate and the low trade value.
Guys I’m either really confused or too informed-thanks to this wonderful forum!

Any thought or comments are really appreciated!

[Digi]

One thing I ran into is BMW will only allow a maximum trade-in "value" of $33,500. My trade in was $42,000 -- what the dealer gave me. This calculation screwed me up pretty bad. You'd better use this value and see how bad it screws you up.

[gh342000]

Your feeling is right, it sounds like they are doing an addon to the lease rate. .0042 = 10.00%, this is too high. This is a common tactic with dealers, sell you the car at sticker but tack onto the lease rate and make up the money there, in this case they would get about ~8,500 in kickback from the addon to the lease.

Not to mention they are getting you on the trade in too.

[Rezf]

I have NEVER leased a car with anything other than buy rate money factor. Sure, they always tried the tactic of saying "need to make money on the rate" but at the end of the day I always managed to negotiate the buy rate. You can too! You just have to be firm with them and not appear desperate to do the deal. The dealers can smell desperation from a mile away and will do whatever it takes to maximize their profit.
They are a car dealership, not a bank. They don't need to make money on the money. As for the finance manager, he makes plenty of money PER transaction as well as the $250 document prep fee that you pay for 10 minutes of his time.
Teach them a lession and walk away from them and go to another dealership. There are plenty of M5s around to shop for

[MKRocks]

They are ripping you off on the money factor. The BMW rate is the rate you should use as a baseline. Anything above it is the dealer's attempt to recapture profit.

[catdog]

Originally Posted by trans_lux

I have been researching purchasing/leasing a new M5 and have found a car that is going into production that I can choose my options.
The details:!

walk away now!
keep looking, i have a 2yr -12k mi lease with 4500 down and 1200/mo (1260 incl MA tx). Silverstone II, multifunction seats only option. Still, good deal, from bmw gallery in norwood MA, excellent dealer. If you contact Peter Fard there, he will give you the best deal around.

[AUDIRS6]

Here in NY its $1650 per month for 36 Months, 15k miles a year. ( no money down)

[trans_lux]

Yes this deal is very bad!
The only dealer/person I have a great relationship, trust and respect is Aaron Zielinski at Rizza Porsche in Orland. Not only can I drive any car for an extended period-by myself-he is very fair. However the Panamara is not out yet and I'm really an M-man anyway.

Catdog the more I work on this I think multifunction seats is the only real option that I need and Sirius but I correct me if I'm wrong this can be dealer installed. How is the interior? I think I you have a black interior the ext. leather probably looks great. However I have yet to see anything other than full leather in person. Any detailed pictures out there of the ext. leather in black/aluminum?
Anyone know of an available car in the greater Chicagoland area that has these options: Silverstone, black or silver grey with black/aluminum interior, multi-function seats and HUD-but not necessary-and a reasonable dealer.

Why does this have to be so hard! I just want to spend $90,000!

[paule]

Originally Posted by trans_lux

They claim the Money Factor of .003 is their buy rate and that they need to make money on this. So the Money Factor is more like .0042.

Let me put it this way - if the dealer is talking lease, and their lips are moving, they are lying to make money.