Quote:
Originally Posted by AGS
Here's what I see. Based on US pricing, your M5 has an MSRP of $121,895 ($110,000 for the base Competition Edition plus exec, B&W, M5 drivers and dest & gas guzzler costs). So at a selling price of $116,895 the dealership is offering you a $5,000 discount to MSRP at a time when most dealers are selling Competition Editions at MSRP - so that in and of itself is not a bad deal.
However, when I put your numbers into my excel lease calculator the numbers don't quite add up. To get to the payment you quoted of $2,068 I have to use $1,280 of the $7,000 down as a cap cost reduction. You also need to cover first month, acquisition fee ($925) and other fees and taxes at closing (for me in NJ these total $1,227). All that totals about $5,500, so I don't know where the last $1,500 of you're money down is going. Did you agree to anything else like wheel and tire insurance or paint protection coating?
Another however. As Stav noted, ED invoice is lower than US invoice for the dealer. I don't know the numbers for the F90, but when I did ED on my first F10 the ED invoice was 7% below US invoice for the base car (no difference on added options). I would expect it to be the same now because the difference is the German export tax on cars shipped out of Germany (which only applies to cars still owned by the manufacturer). So what does all this add up to? Based on US invoice the dealer would be making $3,000 over invoice, but using an estimated ED invoice they're making roughly $7,000 more over invoice or about $10,000 in total. This profit is about $2,000 more than the difference between US MSRP and US invoice, so it's the net effect of them charging you $2,000 over MSRP for a US delivery car.
Some of my numbers are estimates so I wouldn't accept any of them as 100% fact, but it seems you need to have a conversation with your dealer. At a minimum, I think they should drop the price another $2,000 to match the profit they would otherwise make selling you a US delivery car at MSRP. And remeber, where's the last $1,500 of the money down going? I hope this is helpful.
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Yes - ED MSRP is currently US MSRP of base price of the car multiplied by 0.95 (5% off). All options are still at US MSRP to be added to ED MSRP to calculate final MSRP. ED invoice will be (approximately) ED MSRP of base car multiplied by 0.93 (7% off) plus a training fee of $475 that is usually charged plus US MSRP of options multiplied by 0.92 (8% off). For leases there is the 0.0003 rate added but second payment waived. Most likely I doubt any dealer will do less than ED MSRP for the M5 but at least it shouldn't be more.
I have done 5 EDs up to now, including a Mercedes one. At this point Mercedes has a better program at least as far as pricing goes.