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2019+ BMW 3 AND 4-SERIES FORUMS (G2x Generation) Ordering / Pricing / Order Tracking Forum Is $890/mo high for an M340i lease?

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      09-10-2020, 10:34 AM   #23
eforty6_m3
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Quote:
Originally Posted by jd_perspective View Post
General guidance is 1% rule. So a $60K car = $600/mo. before tax.
Instantly you know if it's high or not. I have had numerous leases and never have been over that except once - but I acted stupidly on that lease.
That's a good rule of thumb! My build was roughly $62k...got the dealer down to $53,300. So I'm at roughly $583/mo with $2262 total due at signing (taxes/fees). I think I got myself a pretty good deal. This was after getting 3 dealerships involved and basically getting each one to beat each other's lowest price.
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      09-10-2020, 10:34 AM   #24
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I couldn't agree more with wtwo3, in the preceding post. The 1% myth is not constructive in assessing a deal. And, frankly, if you stick to the 1% rule nowadays, with inventory tight and '21 incentives almost non-existent this month, many wouldn't be leasing a car anytime soon...

If anything, I think the COVID market constraints I mentioned demonstrate why a 1% rule isn't a good method.

Edit: I will add that, in my opinion, the best indicator of deal quality is the pre-incentive discount. This controls for incentives, which can vary be region, loyalty/no loyalty, etc, as well as the other factors outside the purchaser's control (MF, assuming base MF, residual,etc).

Quote:
Originally Posted by wtwo3 View Post
I'm compelled to dispel the 1% myth. 1% does NOT tell you if it's a good deal or not, because there are many more non-negotiable factors involved (residual value, incentives, geographic markets, timing, and overall discount-ability of the specific model in question).

On one car, 1% might be an unrealistically incredible deal, while on another it might be a pretty crappy deal. Case in point, on my X5 1% was unrealistic when I ordered it, however on my 3 series 1% would have been simply an OK deal, not good but not bad. On an M8 coupe 1% would not be a good deal as discounts can get quite heavy on them.

Another things to consider - If someone doesn't currently have a BMW and doesn't qualify for loyalty causing them to fall outside of the "1% rule", is that automatically a bad deal?

To truly evaluate if something is a good deal or not, you have to consider what sorts of discounts others have been able to achieve on the same model in your market. For that, forums like these as well as leasehackr are very valuable.

1% is something someone at one point came up with as the lazy-man's way of evaluating a deal, but it needs to be put to rest.
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      09-11-2020, 06:25 AM   #25
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Quote:
Originally Posted by mf44 View Post
I couldn't agree more with wtwo3, in the preceding post. The 1% myth is not constructive in assessing a deal. And, frankly, if you stick to the 1% rule nowadays, with inventory tight and '21 incentives almost non-existent this month, many wouldn't be leasing a car anytime soon...

If anything, I think the COVID market constraints I mentioned demonstrate why a 1% rule isn't a good method.

Edit: I will add that, in my opinion, the best indicator of deal quality is the pre-incentive discount. This controls for incentives, which can vary be region, loyalty/no loyalty, etc, as well as the other factors outside the purchaser's control (MF, assuming base MF, residual,etc).
I have had no issues negotiating deals on new cars in COVID times. Its the used luxury cars they are gouging people on...

Atlanta is a notoriously bad market and you can still go pick up an M340i lease in the low 600s all day.
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      09-11-2020, 06:59 AM   #26
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Quote:
Originally Posted by wtwo3 View Post
I'm compelled to dispel the 1% myth. 1% does NOT tell you if it's a good deal or not, because there are many more non-negotiable factors involved (residual value, incentives, geographic markets, timing, and overall discount-ability of the specific model in question).

On one car, 1% might be an unrealistically incredible deal, while on another it might be a pretty crappy deal. Case in point, on my X5 1% was unrealistic when I ordered it, however on my 3 series 1% would have been simply an OK deal, not good but not bad. On an M8 coupe 1% would not be a good deal as discounts can get quite heavy on them.

Another things to consider - If someone doesn't currently have a BMW and doesn't qualify for loyalty causing them to fall outside of the "1% rule", is that automatically a bad deal?

To truly evaluate if something is a good deal or not, you have to consider what sorts of discounts others have been able to achieve on the same model in your market. For that, forums like these as well as leasehackr are very valuable.

1% is something someone at one point came up with as the lazy-man's way of evaluating a deal, but it needs to be put to rest.
That's fair...but in his defense, he did say "rule of thumb". He didn't say the "end all, be all" or anything as definite as that.

I found leasehackr to be a great resource as I was shopping around for my car. Lots of good information there, if you're willing to spend the time to educate yourself!
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      09-11-2020, 01:24 PM   #27
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Quote:
Originally Posted by wtwo3 View Post
I'm compelled to dispel the 1% myth. 1% does NOT tell you if it's a good deal or not, because there are many more non-negotiable factors involved (residual value, incentives, geographic markets, timing, and overall discount-ability of the specific model in question).

On one car, 1% might be an unrealistically incredible deal, while on another it might be a pretty crappy deal. Case in point, on my X5 1% was unrealistic when I ordered it, however on my 3 series 1% would have been simply an OK deal, not good but not bad. On an M8 coupe 1% would not be a good deal as discounts can get quite heavy on them.

Another things to consider - If someone doesn't currently have a BMW and doesn't qualify for loyalty causing them to fall outside of the "1% rule", is that automatically a bad deal?

To truly evaluate if something is a good deal or not, you have to consider what sorts of discounts others have been able to achieve on the same model in your market. For that, forums like these as well as leasehackr are very valuable.

1% is something someone at one point came up with as the lazy-man's way of evaluating a deal, but it needs to be put to rest.
I fully agree - but it's a quick finger-to-the-breeze IMHO. Tons more goes into it but it's a starting point.
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      09-25-2020, 10:23 PM   #28
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Not enough info. We need MSRP, cap cost, money factor, residual, term, a lot of missing info to give you a proper answer. Please check out leasehackr
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      09-26-2020, 04:15 PM   #29
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#1 message for OP is learn the math involved, when dealers see you don't know it they feel comfortable taking advantage
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