[jmciver]

….and recommendations to move forward.

I have been on the hunt for a ‘24 i4 M50 for the past few months as I would like to get into something in late Spring/early Summer or so. I figured I would need to order one as I have yet to find anything across the US that is the spec’ed how I want, until now, possibly…

I found one at a local dealer almost spec’ed the way I wan’t, with the biggest issue being color - it is my 3rd choice color if I had to rank them . In any event, I could be motivated to make a deal if the price is right so I asked for their best out the door (OTD) price and was initially offered $4k off MSRP (before any factory incentives).

Thoughts on this “initial” MSRP discount given the current car market (BMW EV market specifically)? $4k off equates to 4.8% off MSRP. How much bigger of a discount should I push for before any factory incentives are added to the deal.

Note: I am eligible for the loyalty discount at $1k, the current lease discount is $8.5k (but not sure if I want to lease yet), and the military discount “up to” $3k (I have been unable to verify the actual military discount, but I believe it will be $1.5k based on my research). Hence why I want to negotiate the best dealer discount I can get before any factory incentives are thrown in.

Thanks!

[Windshieldfarmer]

Originally Posted by jmciver

….and recommendations to move forward.

I have been on the hunt for a ‘24 i4 M50 for the past few months as I would like to get into something in late Spring/early Summer or so. I figured I would need to order one as I have yet to find anything across the US that is the spec’ed how I want, until now, possibly…

I found one at a local dealer almost spec’ed the way I wan’t, with the biggest issue being color - it is my 3rd choice color if I had to rank them . In any event, I could be motivated to make a deal if the price is right so I asked for their best out the door (OTD) price and was initially offered $4k off MSRP (before any factory incentives).

Thoughts on this “initial” MSRP discount given the current car market (BMW EV market specifically)? $4k off equates to 4.8% off MSRP. How much bigger of a discount should I push for before any factory incentives are added to the deal.

Note: I am eligible for the loyalty discount at $1k, the current lease discount is $8.5k (but not sure if I want to lease yet), and the military discount “up to” $3k (I have been unable to verify the actual military discount, but I believe it will be $1.5k based on my research). Hence why I want to negotiate the best dealer discount I can get before any factory incentives are thrown in.

Thanks!

You would forgo an $8,500 lease discount for the privilege of paying cash or financing the thing? Lease it and then purchase at the end of the lease. BMW is able to pass along tax credits they receive for delivering EVs…tax credits you cannot receive as an individual. That is the source of the $8,500 lease discount.

[turbobeagle]

10-11% off before incentives seems to be the low-effort deal right now (i.e. a broker could get that for you). Base money factor, with a bit of effort. Definitely no add-ons.

[NOGBMW]

- Ask for a minimum of 9% off MSRP
- I highly recommended you Lease then buyout so you get $8500 incentive
- If you lease ask for the base rate money factor
- Check Edmunds i4 lease from for money factors and residuals in your area
- Use Leaehackr to evaluate any deals and get tips on leasing in general

Good luck

[Zaptrax]

Lease don't buy. Not just for the factory incentive but you should let BMW take the depreciation risk. In the next 3 years most EVs will move to 800v architecture for faster charging also we will see improved battery chemistry for better range and reduced weight. This will likely mean a lot of depreciation of today's cars. Also, I believe BMW will probably begin delivering 2025 model year cars at the end of July, you should consider if you might want to wait. I think custom order cars from April forward will be for 2025 model year cars. Not unlikely we will see better range and faster charging in '25 model year cars.

[jmciver]

Appreciate the feedback and the “passion” regarding leasing in this case . Admittedly, I have not been a fan of leasing in the past for different reasons, including the fact I like to modify my cars (sometimes heavily) to “make them my own” - the i4 would be no different. My last few cars I have had success with using BMW Select, which has benefits similar to leasing and financing - the best of both worlds in some respects. However, the $8.5k lease credit in this case definitly has given me pause to not completely rule out the lease option. Although, one other variable that is somewhat unique to my situation is that if I finance, I don’t have to pay sales tax due to my military status - that is an additional savings of almost $5k. If I lease, sales tax will still be part of the deal…

The depreciation hit of EVs (vs ICE cars) doesn’t really bother me - I buy cars to use them, not to worry about how much I might be able to get for it when I am done with the car. Although, the piece mentioned above about the rapidly changing EV technology is a variable I had not previously considered. I typically keep my cars for 6+ years (and pay them off in a similar timeframe) and the lure of new car tech does not usually deter me from long term ownership. This i4 M50 would be replacing my current ‘17 F80 M3, which I bought new in Dec 2016 (and it is somewhat modified now ).

I also thought about waiting for the ‘25 LCI coming in July ‘24. But based on what I see in the 4-series LCI, the LCI does not seem worth waiting for, for me anyway (the only thing I think I like are the LCI tail lights, which can be bought after the fact). For now, I think I will push for a bigger dealer discount, using the advice provided here, since the base OTD price is the same whether leasing or financing. A dealer discount of 9-11% off MSRP seemed like an agresive counter offer (and be taken seriously), but admittedly, I was surprised the dealer initially offered $4k of on his first offer, which I guess means there is definitely more “room” to give - I was expecting closer to $2k as an initial offer. Plus, I think this car might have been on the lot for a while, but hard to know.

Time for round two, I guess, and this would be my first counter offer…. Other than seeing the car in person to verify if I liked the color, all “negotiations” have been via email up to this point…

[turbobeagle]

admittedly, I was surprised the dealer initially offered $4k of on his first offer

The i4 is well regarded by customers and the media, but it's clear that for whatever reason, BMW has over-allocated production capacity to it. There are a lot of articles out there already about how the industry as a whole, just got the demand forecast wrong.

They can't just shut down the factories, and re-tooling is expensive, so they keep pumping them out. And now they're stacking up at dealerships. They don't want to lower MSRP, since that harms the brand, so they just discount on the back end.

There are over 500 new i4 units within a 50 mile radius of me according to cars.com. In contrast, there are only 200 X5s. And the X5 is the volume leader for BMW that probably outsells the i4 many times over. You can be very aggressive when negotiating for an i4.

[Zaptrax]

FYI - When they give you the money factor for the lease just multiply it by 2400 and that will tell you the annual interest rate you are paying.

[Windshieldfarmer]

One other thought for OP….in most states sales tax is only paid on the lease payment, not the entire price of the car(unless you are in Texas)…thus the sales tax hit is only $2,500. If OP were to buy out the car at lease end I suspect he might not need to pay sales tax on the buyout amount given his circumstances. My other question, I wonder if there is an option to buyout the lease early…as a way to capture the lease incentive but take ownership earlier and save some of that sales tax. That would be a question for the BMW F&I guy. I suspect his lease would need to be “seasoned” for at least a year before a buyout would be permitted.

I understand OP’s perspective and desire to customize his i4, but those mods will be extremely costly.

[turbobeagle]

You can buy out a lease as soon as BMWFS gives you access to the account. Early lease buyout to take advantage of lease-specific rebates is a common tactic, long before EV rebates.

Just read the contract carefully to ensure there are no specific lease buyout fees (which is not the same as the disposition fee). It’s a line item in the contract, usually set to $0 with BMW.

[jmciver]

So I figured I would close the loop on this as I just brought home the i4 M50 in question today …. Based on the advice in this thread, I was able to get 9% off MSRP before any factory incentives.

Price breakdown is as follows…

MSRP: $82,645
Dealer Discount: $7,438.95
Loyalty Discount: $1000
APR Discount: $5000 (New for the month of April, 3.99% for 60 months)
Military Discount: $500
Fees: $936.25 (Doc fee, title, tags, etc)

OTD Price: $69,643.20

I chose the “less popular” option to finance this car using BMW Select, but this option works for my needs. For those that don’t know, BMW Select is a balloon financing option. This option is similar to leasing in that it lowers the monthly payment and there is a large payment (the “ballon”) at the end similar to the residual payment at the end of the lease should you decide to keep the car or not.

This option works well for me as I keep my cars long term, 6+ years (and for me typically longer). In this case, even with the higher lease incentive, leasing the car and then buying out the lease (at the end or even early) did not work for me from a total cost of ownership perspective. Additionally, because I financed the car, I could take advantage of a sales tax exemption, which further reduced the price of the car.

The balloon payment for this deal worked out to ~$24k. Whereas the residual had I leased would have been 52% of the sale price that would have also included taxes. Additionally, I used proceeds from the sale of my old car as a down payment towards the new car - which provides some instant equity in the car, along with reducing the monthly payment some. As many of you already know, a down payment on a lease will reduce the amount of your lease contract (and thus the monthly payment), but not go towards the residual. So “the math” for this deal worked out well for my situation (as I intend to keep the car long term), and may for others over leasing (even though leasing the i4 is still a very good option for many given the current lease incentives, especially if you don’t want to keep the car past a typical 3 year lease timeframe).

As for the car, it is Dravit Grey with Black Vernasca leather interior. Packages include: Premium Package, Driving Assistance Pro Package, Parking Assistant Package, Shadowline Package, Cooling & High Performance Tire Package, Icon Headlights, Carbon Fiber Trim and a few other minor options. So essentially all the options I wanted, and even a few more. Now the fun begins….

[Enwhey]

Originally Posted by turbobeagle

You can be very aggressive when negotiating for an i4.

Would this still apply to custom orders, or just cars currently sitting on the lot. There's a ton of i4 inventory in my area but none are currently specced the way I'd prefer.

Planning to lease for max rebate amount, but have never placed an order, so I'm not sure how that would complicate negotiating.

[turbobeagle]

Originally Posted by Enwhey

Would this still apply to custom orders, or just cars currently sitting on the lot. There's a ton of i4 inventory in my area but none are currently specced the way I'd prefer.

Planning to lease for max rebate amount, but have never placed an order, so I'm not sure how that would complicate negotiating.

Yes I would say it applies to custom order. Mine was a custom order. Ordered in Dec and received it a week ago.

Just to be clear, “max rebate amount” is a baseline. That is money directly from BMW to you. I think you could even technically ask for that to be sent to you as a check from BMW. What you are negotiating is how much the dealership will discount outside of that rebate.

[Enwhey]

Originally Posted by turbobeagle

Yes I would say it applies to custom order. Mine was a custom order. Ordered in Dec and received it a week ago.

Just to be clear, “max rebate amount” is a baseline. That is money directly from BMW to you. I think you could even technically ask for that to be sent to you as a check from BMW. What you are negotiating is how much the dealership will discount outside of that rebate.

Yeah, sorry, I phrased that poorly. I meant that could purchase it outright or finance, but I'm preferring a lease since the $7,500 is the largest incentive they're offering, and can just do an early buyout.

Based on research & what's already been posted in the thread, it seems like ~10% off MSRP is a reasonable expectation, but having never ordered a BMW before, I wasn't sure if that would be a realistic target in negotiating with a dealer on a custom order.

e: Also, any suggestions on dealers in the Bay Area? There's a bunch and I'm new here and unfamiliar with who's good.

[turbobeagle]

Originally Posted by Enwhey

Yeah, sorry, I phrased that poorly. I meant that could purchase it outright or finance, but I'm preferring a lease since the $7,500 is the largest incentive they're offering, and can just do an early buyout.

Based on research & what's already been posted in the thread, it seems like ~10% off MSRP is a reasonable expectation, but having never ordered a BMW before, I wasn't sure if that would be a realistic target in negotiating with a dealer on a custom order.

10% dealer contribution, base money factor, no add-ons is what I got fwiw. That was the dealership’s offer. I never negotiated.

However, I believe BMW is now doing a $5k rebate for finance customers (right?). So then you’re comparing:

Lease: $7.5k rebate minus $1k acquisition minus $300 purchase fee (my contract has this) = $6.2k

Finance: $5k

So the difference may not be as extreme as before.

[Enwhey]

Really appreciate you sharing the info, now I guess it's time to start emailing dealers if they've got allocation. Thanks!

[turbobeagle]

Originally Posted by Enwhey

Really appreciate you sharing the info, now I guess it's time to start emailing dealers if they've got allocation. Thanks!

Good luck! DM me if you want to ping the salesperson I worked with. Though to be honest I think you will find every dealership can get an allocation. He was referred to me by another member here, so happy to pay it forward.

[jmciver]

While deals can be had on the i4, some better than others depending on the area of the country, in general discounts on ordered units will typically be less than what can be found on the lot. In my case, after I found a car I liked at a local dealership and made the deal I posted above, I went back to the original dealer I had intended to order the car from. I gave them the opportunity to counter or at least match the offer on an ordered unit. I even was willing to put down a non-refundable deposit as a sign of good faith (which I would not normally do). But the best they would give me was 6% off MSRP on an ordered car. But then, they also had a decent i4 inventory on the lot despite having allocations still coming in. So YMMV…..

As far as current incentives, the $5k finance incentive currently available makes financing vs leasing very close, especially if you intend to buy out the car anyway. I recommend you do the full math for both options to see how things pan out, including looking at the BMW Select option. Leasing may not be the automatic winning option for your situation as some would have you believe.

Good Luck!