[BMWEVGuy]

Originally Posted by JohnnyBeagle

I expect iX/EQS pricing to continue dropping because Tesla keeps dropping in entry level pricing. I think they'll be even better lease deals to compete with the much cheaper Model X. Yes the Tesla is built poorly, but I think your average person still considers Teslas as luxury and the charging network is still far superior for those that road trip or have range anxiety.

Mercedes already refused to further reduce price.

https://euro.dayfr.com/trends/712936.html

I have quoted some snippets from article linked above below:

Mercedes, evidenced by the words of its CEO, Ola Källenius.

“We are always looking for the best compromise to ensure the viability of a company. We seek the balance between supply and demand, on each market. But for a brand like Mercedes, too drastic changes are not a good thing. They are not the right solution and do not give the expected results”specifies the leader to the American journalists of InsideEVs. “For us”, the objective is clear: mobility must become zero emissions. There is no ‘if’, ‘and’ or ‘but’”.

The changes entail significant investments and “We are investing billions, tens of billions, not only for electrification, of course, but also for the rest of the automotive industry”said the boss of Mercedes.

To make matters worse, some markets on which Mercedes was relying heavily are not delivering the expected results: “Many observers, economic analysts, professors, thought that China would immediately return to growth after the Covid, but the market is a bit flat”.

“As a builder, you have to decide how to approach the market in this context”explained the leader, “and for Mercedes, price stability is crucial. Ensuring that the beautiful cars we build have a long lifespan, residual value, etc. is a top priority for us. We therefore do not give in to the logic underlying the depreciation of our products. »

“However, we must strive to be flexible in other areas. For example, studying a complete range, with a series of models having different degrees of electrification. We can build electric, hybrid and gasoline cars on the same lines in many of our factories. This allows us to adapt quickly to different market demands, whether in China, the United States or Europe. We won’t follow Tesla’s lead on pricing.

[Kief]

Delivery set for Saturday. As always, told the dealer not to touch the paint or prep. It should compliment my i4 M50 nicely.

[ilya4min]

Originally Posted by rivma13

Great post, thank you. For all of us that already got screwed by the dealers, if we got into a bad lease and we pay off the lease early, let’s say I regret doing a lease and I want to pay it off on month 3, does a crooked MF still matter?

Unfortunately I don't know. My previous lease was at 0% APR, and the upcoming one is well below market rate, so I've never considered terminating a lease early. But if you ask your dealer and find out an answer, please share the outcome here, I'm sure a lot of folks will be interested.

[darylp310]

Originally Posted by ilya4min

Unfortunately I don't know. My previous lease was at 0% APR, and the upcoming one is well below market rate, so I've never considered terminating a lease early. But if you ask your dealer and find out an answer, please share the outcome here, I'm sure a lot of folks will be interested.

Logically it wouldn’t make sense that the MF would matter if you buy out your lease. There are plenty of people on this forum (and the i4 forum) that did a lease to take advantage of the $7,500 tax credit, and then turned around and purchased their cars.

In fact if you log into the BMW USA website and checkout the Payoff Amount for your lease you’ll see a calculation showing how your “unearned interest” would be refunded as part of your buyout.

[MaC-N54-E82]

Originally Posted by exxxviii

At risk of further derailing an already derailed thread (this is about getting a best lease deal, not BEV preferences), the two recent objection posts are attempting to compare the driving experience of a couple M Competition models to a regular SUV. That the target of the objection is a BEV is almost irrelevant. The same two statements would apply to an ICE 7 Series boulevard cruiser. Few cars on the planet compare to an M4CX or X3MC. On the other hand, those two suuuuuck compared to the driving experience of about any BEV in stop-and-go and short trip daily driving. So, somebody sold you guys counterfeit Kool-Aid.

Our household has a full fleet of 5 cars including 2 BEVs. One is not ideal, so I have a balanced view. But the day-to-day driving comfort of a BEV is unparalleled.

With respect to the OP and further derailing the thread, I think we mostly agree. BEVs make excellent dailies. Where things get wonky is when people confuse the straight line speed with performance. The logic further goes off the track when individuals choose a performance brand, such as BMW, for their EV. If day to day driving comfort is the goal, why seek out a performance brand? The strengths of current EVs make them poor choices for a performance vehicle. At the end of the day, we all benefit from choice and the consumer will vote with their dollar. Just sharing an alternate view. Appreciate your perspective.

[MaC-N54-E82]

Originally Posted by Pawtato

Have you driven a Taycan?

I have and actually had one on order for a period of time. After experiencing our first BEV full time, I cancelled my order and moved forward with the M4CX.

[leasehackr]

Originally Posted by ilya4min

I posted this guide before, it was well received and helped a few people get their leases cheaply. With the recent discussions about discounts going down, it will be helpful to have a dedicated thread on lease negotiations. Feel free to ask questions, crowdsource tips, and share dealer/broker information. I will update comment #2 with links to most helpful comments to create a kind of wiki.

Overview
I ended up getting 2 similar deals from 2 Bay Area dealers: (1) 10% off MSRP with MF of 0.00111, and (2) 11.65% off with MF of 0.00151. These appear to be among the best terms I’ve seen online in July/August 2023 for a custom orders, but these terms are absolutely replicatable. Dealers are more motivated to sell the incoming cars and cars already on the lots, so for them discounts can reach 12-13% at base MF. Details of the deal (1):

• 10% off MSRP, so selling price is 108K, down from 120K, for a custom order M60.
• “Base” money factor (MF) of 0.00111, which is equal to APR 2.6%
• $9900 lease credits and an extra $1000 for having a graduation from Stanford GSB later this year (it's just a certificate, not even a degree, but it did work)
• Complete zero drive-off. Dealer asked for 1K refundable deposit.
• Payment at almost exactly $1400 per month, inclusive of taxes and fees. This is 36/7.5K miles lease.
• Promise that if BMW financial improves terms while the car is being built, I get the better terms (typically, it's both MF and lease rebate)
• Dealer said it's ok if I return the car with different tires, so I can change to all-season tires right away. Not clear if this will work in the end, but getting this from dealer in writing might be useful if returning the car to the same dealer.

Process
You should definitely reach out to brokers first and see what they have, and decide whether you're willing to go with them. Most brokers work with multiple dealers across the country, and will have access to stock at each of those dealers and/or can place an order at them. One of my brokers was going to deliver my car to a dealer at Idaho: it would be a 800 mile flight + road trip for me, and I was OK doing this adventure to save a few thousand. To find brokers, go to Leasehackr forum, select your state and BMW as the make. I personally messaged all the brokers who were active in the last month. If you don’t see too many brokers who work in your region, you can also check the ones who list neighboring states as well, if you’re ok picking up your car there. When messaging, explain your situation and what you're looking for. They all prefer to sell you stock, but if they don't have what you want, also ask for a custom order and what kind of deal they can do. Most brokers will still give you a good discount on orders, but usually they are better for stock.

For local dealers, suggest you test drive with a few of them (as many as you care, maybe pick different models), ideally identify the cars in stock you like. They all suffer from the “sunk cost fallacy” and will give you a better deal if they have already spent time with you. Mine wanted to push stock at first and didn't offer too much of a discount. Tables turned when I texted them something like: "FYI, got a couple of offers from brokers at 9-10% off MSRP, so will have to go that way. Would love to buy locally, but the price difference is too much. Thank you for test drive and getting me sold on the car”.

I was only doing it not to be rude, and didn't expect anything, but there was some magic in what I said and both local dealers promised to give me 10% off on an order. One in the end didn't follow through, but the other one did.

With both brokers and dealers, remember that you can only get the best deal if you're absolutely willing to buy today, but you’re also willing to walk away - they'll keep giving you better offers until they can no longer go lower, and then they let you walk. You can always come back to the best deal they had offered before you walk away, even if they claim that deal is "dead if you walk out the door" or something.

Zero drive-off was the last thing I negotiated. You usually start with the big items and you continue to smaller ones. Biggest items are: 1) discount 2) MF 3) specific car or order. Smaller are 4) money down 5) additional discounts (e.g. college grad discount for me - extra work for dealer) 6) extra favors (e.g. returning the car with another set of tires)

To summarize
1) Text all brokers who had activity on Leasehackr within ~1 month and see what deals / offers they have. Ideally you'd find something you like in stock for the best deal.
2) Cross-shop with brokers, tell everyone what the best deal you got, they're going to all progressively improve. Eventually, you should find a few you can actually go with, e.g. the drive is not too far to pick up and return the car, or you're ok with delivery fees.
3) Schedule test drives with BMW dealers nearby. They will only give you their best deals if you test drive. Counter-intuitive but true.
4) Hopefully by the time you test drive, you get some decent offers from the brokers, and can present them to your dealers. You’ll see if any of them are motivated enough to offer you a deal.

Worth it?
I did all that while still deciding which car and configuration I wanted, so didn’t really spend much extra time. But if this all sounds like too much work for a few thousand dollars of discount - maybe it is, for you. Everyone is always free to pay any price they want and be happy with the car, and the price is surely not the only factor. Build timeline, trade-in value, time spent, relationship with the dealership, fees, positive and negative extras, and other factors also matter. I personally hate the car buying process, but find it helps me master my negotiation skills. In addition, getting this kind of deal was essential for me to consider BMW - it would be too much outside of my target budget otherwise.

 If you’re trying to understand if a dealer is giving you a good deal - plug the numbers in Leasehackr calculator and see what payment you’re supposed to get with the canonical best terms, and/or the terms they're offering. If something looks way off, dealer/broker is probably trying to hide something.

Hey OP

Good advice

QQ - what exactly was in $9900 lease credits?

I'm in NW but have worked with Peter Pan in the past. Looking into ix lease as X5 lease is coming to end.

[leasehackr]

Originally Posted by Kief

Excited to take delivery of one of these oinkers on Saturday for my wife! Can’t wait to see how it compares to my i4 M50. We’ve been a full BEV garage for close to a year now, and find it hard to go back to ICE or even a PHEV. We had an X5 50e on order for delivery next month, and although the LCI has improved significantly IMHO compared to last year when we considered the 45e, it wasn’t enough to sway us back.

Which dealer? how much discount?
Care to share the lease payment?

Looking to get into ix after X5 lease.

[Multimodal]

The IX is a $800/month car. Any price above $1000 is a bad deal. Go lease an EQS instead.

[ilya4min]

Originally Posted by leasehackr

QQ - what exactly was in $9900 lease credits?

Not sure I understand the question. Can you rephrase?

[leasehackr]

Originally Posted by ilya4min

Not sure I understand the question. Can you rephrase?

Sorry just reviewed more pages of forum now

Looks like BMW upped the lease credit

[leasehackr]

Originally Posted by Multimodal

The IX is a $800/month car. Any price above $1000 is a bad deal. Go lease an EQS instead.

Would love to get ix at $800. Can you share the dealer?

How much for similar equip EQS?

[Kief]

Originally Posted by leasehackr

Which dealer? how much discount?
Care to share the lease payment?

Looking to get into ix after X5 lease.

$733 monthly base w/MSD, zero cap cost reduction.

[exxxviii]

Originally Posted by leasehackr

Would love to get ix at $800. Can you share the dealer?

It's all just plug-and-play math. Assume you are starting from a $94K MSRP iX (not many below that on the market). Dealer has to discount another 11% off MSRP, and you have to max MSDs to get MF down to 0.00069 on a 36 month lease with 54% residual. With 7% taxes, that comes to $808. So, the key is to find a dealer that will discount >10% and will sell you the lease at buy rate.

If you can find an un-optioned iX at around $87K, you can get the payments in the low $700s with same discount parameters above.

If you don't use MSDs to lower the MF, then that adds about $50 to the lease payment.

[ok31]

Originally Posted by exxxviii

It's all just plug-and-play math. Assume you are starting from a $94K MSRP iX (not many below that on the market). Dealer has to discount another 11% off MSRP, and you have to max MSDs to get MF down to 0.00069 on a 36 month lease with 54% residual. With 7% taxes, that comes to $808. So, the key is to find a dealer that will discount >10% and will sell you the lease at buy rate.

If you can find an un-optioned iX at around $87K, you can get the payments in the low $700s with same discount parameters above.

If you don't use MSDs to lower the MF, then that adds about $50 to the lease payment.

Either you guys are really good, my math is off or every deal I get screwed on. I got a 90k msrp. Less dealer contribution of 5k, less BMW 9900, zero drive off except first month and dmv and no MSD for 1087. NY taxes suck. If I’m reading this right then I got the short end of the stick? Cap cost is also in the price which basically negates the dealer contribution.

[ilya4min]

Originally Posted by ok31

Either you guys are really good, my math is off or every deal I get screwed on. I got a 90k msrp. Less dealer contribution of 5k, less BMW 9900, zero drive off except first month and dmv and no MSD for 1087. NY taxes suck. If I’m reading this right then I got the short end of the stick? Cap cost is also in the price which basically negates the dealer contribution.

Dealer contribution of 5K could be better, if you follow the guide you should be able to get 9-10K off MSRP, assuming you buy after mid-July when the latest incentives took place. MSDs are strongly encouraged, you save well over 2K by tying up 7K for 3 years. NY taxes are not as bad as California taxes!

[exxxviii]

Originally Posted by ok31

Either you guys are really good, my math is off or every deal I get screwed on. I got a 90k msrp. Less dealer contribution of 5k, less BMW 9900, zero drive off except first month and dmv and no MSD for 1087. NY taxes suck. If I’m reading this right then I got the short end of the stick? Cap cost is also in the price which basically negates the dealer contribution.

At a glance, that looks like an average deal that a lot of people are seeing:

• 0.00151 MF - that is the retail sell rate; many are getting 0.00111
• 53% residual
• 5.6% dealer contribution - that is OK, but a default that many dealers are adverting to everyone

If you can get the dealer to drop the MF to 0.00111 and just discount by 9% (still below great deal norms), that gets the payments to around $950 on that same car.

A lot of this depends on what they have on the lot and how badly they want to move them. I was very close to buying a $115K M60 for $1,240/month from my local dealer. That one had a 10% discount off MSRP and 0.00111 MF with 52% residual. I probably could have got that deal down a little more, but it was not my preferred color and more than I wanted to spend.

[Multimodal]

Originally Posted by leasehackr

Would love to get ix at $800. Can you share the dealer?

How much for similar equip EQS?

I'm not saying it's possible. I'm saying the car isn't worth paying more than that. EVs are categorically overpriced.

You may say, "well that's just unrealistic," but Audi has up to $22K of factory incentives on the e-tron GT right now and dealers are taking another $10k-$15k off out of their own pocket. The laws of supply and demand will always win.

[ok31]

Originally Posted by ilya4min

Dealer contribution of 5K could be better, if you follow the guide you should be able to get 9-10K off MSRP, assuming you buy after mid-July when the latest incentives took place. MSDs are strongly encouraged, you save well over 2K by tying up 7K for 3 years. NY taxes are not as bad as California taxes!

The blinders were on, they called on a Saturday before end of month being Monday saying they had 3. By the time we ended the call it was down to 1. Probably should have gone to do some shopping around but felt this was decent. Problem is around here not many lots with physical inventory from what I saw so motivation may not have been there much.

[ok31]

Originally Posted by exxxviii

At a glance, that looks like an average deal that a lot of people are seeing:

• 0.00151 MF - that is the retail sell rate; many are getting 0.00111
• 53% residual
• 5.6% dealer contribution - that is OK, but a default that many dealers are adverting to everyone

If you can get the dealer to drop the MF to 0.00111 and just discount by 9% (still below great deal norms), that gets the payments to around $950 on that same car.

A lot of this depends on what they have on the lot and how badly they want to move them. I was very close to buying a $115K M60 for $1,240/month from my local dealer. That one had a 10% discount off MSRP and 0.00111 MF with 52% residual. I probably could have got that deal down a little more, but it was not my preferred color and more than I wanted to spend.

Not having been prepared for the call and end of month not knowing if the 9900 contribution was going to roll over I wasn’t in a gambling mood. Felt this was acceptable and sounds like it’s average with room for improvement but not a complete ripoff so will have to live with it for 3 years then will see. Hopefully the gen 6 batteries will make these a bit more reasonable with more competition being out. Then again it is BMW so who knows.

[dmode]

Originally Posted by Kief

Delivery set for Saturday. As always, told the dealer not to touch the paint or prep. It should compliment my i4 M50 nicely.

Wow, I will have the same setup this December. IX and I4 50

[leasehackr]

Originally Posted by exxxviii

At a glance, that looks like an average deal that a lot of people are seeing:

• 0.00151 MF - that is the retail sell rate; many are getting 0.00111
• 53% residual
• 5.6% dealer contribution - that is OK, but a default that many dealers are adverting to everyone

If you can get the dealer to drop the MF to 0.00111 and just discount by 9% (still below great deal norms), that gets the payments to around $950 on that same car.

A lot of this depends on what they have on the lot and how badly they want to move them. I was very close to buying a $115K M60 for $1,240/month from my local dealer. That one had a 10% discount off MSRP and 0.00111 MF with 52% residual. I probably could have got that deal down a little more, but it was not my preferred color and more than I wanted to spend.

Corrrect, you have to find dealer who doesn't mark up the MF. I simply refuse to do the business with dealer who jack up the MF and other BS. Just go out of your state, drive 200-300 miles and pick up the car there.

Last 10 years, I have never leased one from my state BWM dealers because they are ass. 1-3% off and avg I have been doing 12% off + all lease incentives at the time of delivery + floor MF.