[RF100]

Hey guys,

I agreed upon a lease with dealer in April 2021. Placed an order for a 2021 M340i and we agreed upon a deal. 5k down $604 / month. (See picture attached)

Now the car has been delayed until now October 2021. 6 months later due to a stop sale. I have patiently waited and have been nothing but kind waiting. The car finally comes and now I go to pick it up and they tell me they have to charge me more. Salesman first claimed that it's not them, its that BMW changed the rebates, so I called them out on it. Then they claim the residual changed from 58% to 55%, I called them out on it.. and the sales guy realized he was wrong again. Now they claim it is because they have increase the Money Factor from an agreed upon .00093 to .00196 because they have to and have no choice from BMW. (My credit has not changed). But they claim they are doing everything they can and still honoring my discount agreed upon. (Please see picture of the new deal they gave me, 5k down and now $736 / month) (m performance exhaust was added at the port so that's why MRSP went up)

I feel as though I have been lied to multiple times and disrespected by the dealer. It seems claiming the MF must be raised is the last resort to avoid saying they simply want more for the car in this market and want to make more money off of it. I know the market is high right now, but feel as though turning back on an agreed upon deal and then even lying and being suspicious about lease terms is even worse.

Any thoughts/advice/feedback/insight would be greatly appreciated.

Was looking forward to the car and have been looking at everyone's cars for the past 6 months but now unsure if I will take delivery.

Thank you!

[RigaTony1982]

This is tricky, because I can't find a published money factor for 2021 model year anymore. Using what they have on the sheet is equivalent to 4.7% APR which seems a bit higher than usual, but again may be correct based on the model year.

If my math is right, you're getting about a 7% discount off of MSRP to get to the $736 (I assumed your tax rate was 9%). I don't know if that's terrible in this environment.

I know the incentives/discounts were much higher back in April when you originally got the quote (I bought mine in March and got 10% off MSRP and I think had $2K in incentives on top of that).

[jg4c]

Understand your frustration. If you are still getting 7% off MSRP, take the car and run. These are insane car buying times. After a week of driving it you’ll forget all the aggravation.

[clearwaterms]

I would post around on Edmunds and figure out if the money factor has really gone up that much. 2022 programs are pretty close to what was originally agreed upon but 2021 maybe different.

can you wait it out and order a 2022 and get the programs that are present now? you may not get to $60x a month again but you should be able to do something in between that and what you're being quoted now.

[RigaTony1982]

Originally Posted by clearwaterms

I would post around on Edmunds and figure out if the money factor has really gone up that much. 2022 programs are pretty close to what was originally agreed upon but 2021 maybe different.

can you wait it out and order a 2022 and get the programs that are present now? you may not get to $60x a month again but you should be able to do something in between that and what you're being quoted now.

Even with the money factor, he’s still getting like 7% off MSRP. I’d be curious how others are doing payment-wise in the current market.

[clearwaterms]

Originally Posted by RigaTony1982

Even with the money factor, he’s still getting like 7% off MSRP. I’d be curious how others are doing payment-wise in the current market.

with a broker I got 10% off a 330i order and I think they were offering 6% off at the same time. Granted that is a broker so you have the cost of the broker plus any potential shipping costs but 7% off while good isn't unheard of even in this market.

here is an example of a broker in Phoenix: https://g20.bimmerpost.com/forums/sh...8&postcount=12

$68x a month /w taxes $28xx due at signing not including broker fees and license plate fees (which were extra)

[RF100]

Originally Posted by RigaTony1982

This is tricky, because I can't find a published money factor for 2021 model year anymore. Using what they have on the sheet is equivalent to 4.7% APR which seems a bit higher than usual, but again may be correct based on the model year.

If my math is right, you're getting about a 7% discount off of MSRP to get to the $736 (I assumed your tax rate was 9%). I don't know if that's terrible in this environment.

I know the incentives/discounts were much higher back in April when you originally got the quote (I bought mine in March and got 10% off MSRP and I think had $2K in incentives on top of that).

So my tax rate is 6.625%.

I still don't think this is a bad deal in this market now. Totally get it..discounts are hard to come by. They will get more money for the car if I don't take it and they sell to someone else. My bigger issue is I waited 6 months and then get told right before delivery the deal will be changed. Then the terms are changed suspiciously to try to hide the fact they do not want to discount the car the same amount. I would have been more understanding if they just straight up told me once the market got higher (or even now) that my discount would no longer be the same.

I asked on Edmunds and the current MV is .00096 for 2021 m340. Residual is 58%.

What do you guys think? Shy away from the dealership and look elsewhere or do I take the car for 5k down $736 / mo. It's really more about the principal than the money to be honest. If I walked in now and got this deal I would have taken it.

Contemplating just dropping the order and being patient (I can also wait to get a bmw because I have a Toyota 4Runner for now) and ordering an M3 comp from another dealership when the market goes back to normal.

[RigaTony1982]

Originally Posted by clearwaterms

with a broker I got 10% off a 330i order and I think they were offering 6% off at the same time. Granted that is a broker so you have the cost of the broker plus any potential shipping costs but 7% off while good isn't unheard of even in this market.

here is an example of a broker in Phoenix: https://g20.bimmerpost.com/forums/sh...8&postcount=12

$68x a month /w taxes $28xx due at signing not including broker fees and license plate fees (which were extra)

The sticker on that example is about $6K lower though than what we're looking at here. Assuming the same residual that translates to an additional $70/month in payment.

RF100, others may disagree, but I don't think it's a terrible deal considering everything going on. I get your point about not moving forward based on principle. It sounds like they're marking up the money factor to offset the MSRP discount they gave you.

[trife.]

Factoring in the 5k down you're at about $875/month for a m340i. Personally I wouldn't take this deal. That's too much, IMO.

edit: If you can wait some more, find a broker and go with a MY22. That money factor is killing your deal, along with the 5k down.

[justbananas]

Find your own lender fast. A credit union or something.

And name the dealer?

[justbananas]

And this is why the Tesla discord server is flooded with new people. People are fed up with this sort of treatment and it’s time to simply say “no” to these sorts of tactics.

[RigaTony1982]

Originally Posted by trife.

Factoring in the 5k down you're at about $875/month for a m340i. Personally I wouldn't take this deal. That's too much, IMO.

edit: If you can wait some more, find a broker and go with a MY22. That money factor is killing your deal, along with the 5k down.

That $5K is due at signing and it looks like the OP is in NY where the tax on the lease is paid up front. Regardless of what MY he goes for he's going to have at least that plus his first month's payment due at signing, so that's about $3K of the $5K.

I missed that part at first. With that being said, he's getting close to 9.5% off MSRP to get to the $736 if my calculator is right:

https://leasehackr.com/calculator?ma...ee_check=false

To get to the $604 he was originally quoted he'd need the base MF and a 11% discount.

They're effectively marking up the MF to offset the 9.5% discount they're giving him. Assuming the marked up MF, the discount off MSRP nets to about 4.5%.

[jlapicki]

Originally Posted by clearwaterms

I would post around on Edmunds and figure out if the money factor has really gone up that much. 2022 programs are pretty close to what was originally agreed upon but 2021 maybe different.

can you wait it out and order a 2022 and get the programs that are present now? you may not get to $60x a month again but you should be able to do something in between that and what you're being quoted now.

Don't bet on getting anything off from dealer or any BMW rebates on a new 2022 order at this time...

[trife.]

Originally Posted by RigaTony1982

That $5K is due at signing and it looks like the OP is in NY where the tax on the lease is paid up front. Regardless of what MY he goes for he's going to have at least that plus his first month's payment due at signing, so that's about $3K of the $5K.

I missed that part at first. With that being said, he's getting close to 9.5% off MSRP to get to the $736 if my calculator is right:

https://leasehackr.com/calculator?ma...ee_check=false

To get to the $604 he was originally quoted he'd need the base MF and a 11% discount.

They're effectively marking up the MF to offset the 9.5% discount they're giving him. Assuming the marked up MF, the discount off MSRP nets to about 4.5%.

Ahh gotcha. I didn't realize taxes had to be paid upfront in NY. Sounds awful lol. I'll stick to my 1.5% rate on the monthly payment.

But yeah, that definitely makes the deal not as bad as I thought it was. In this market any deal isn't really a deal anyways.