[saveywil1]

As the title suggests, I’ve read many posts but I’m really struggling to get my head around the lease deal programs, residuals and generally all of it.. I like to think my strength in life is knowing when I am out of my depth...
So with that in mind, what are people’s thoughts on this..


Market value selling price 126,895
Total Savings 7,000 (BMW incentive 750 Dealer discount 6,250)
Adjusted price 118,895
Taxable fees 925
Doc 389
Tax 485
Non tax fees 151
Balance 121,845

36 months 10k per year Cash down 5,000 Monthly 1548

What should I be asking?

Very appreciative of time and thoughts,
David

[Oswiff]

Originally Posted by saveywil1

As the title suggests, I’ve read many posts but I’m really struggling to get my head around the lease deal programs, residuals and generally all of it.. I like to think my strength in life is knowing when I am out of my depth...
So with that in mind, what are people’s thoughts on this..


Market value selling price 126,895
Total Savings 7,000 (BMW incentive 750 Dealer discount 6,250)
Adjusted price 118,895
Taxable fees 925
Doc 389
Tax 485
Non tax fees 151
Balance 121,845

36 months 10k per year Cash down 5,000 Monthly 1548

What should I be asking?

Very appreciative of time and thoughts,
David

Are you rolling in the taxes and fees or are you paying that upfront?

At first glance, the discount isn't great, you should be at minimum 8% before incentives, you are sitting at 6% with incentives.

Also, money down is a bad idea on leases - if you total the car or if you want to get out of the car early, you will not be seeing that money back.

In addition, your payment listed is high unless you are rolling into the payments taxes and fees. My calculator paying everything upfront and not including your 5k down is about 1388/month.

Will double check my math later but at first glance those are my thoughts.

[BlueString]

My $0.02 as I am in the same situation. I think before incentives, you got about 5% off MSRP which is pretty good for a MY2021. I'm in California and trust me, I shopped like crazy with many many dealers here and dealers here in LA laughed and ignored me when I mentioned 10% off MSRP for a 2021. Some dealers here were going $1000 off MSRP. Since you are in the east coast, these discounts will vary. At the end I finally got a dealer that offered 8% off but will have to drive further out. Realistically, 5% was the average here in the LA area. 8% was heroic. Again this is for MY2021. Great deals are for MY2020.

As for the leasing numbers, I was offered:

MSRP: 119,845
Sell Price: 110,239
MF .00082

36 months/12k

$1430/month taxes included
$2500 initial/drive off

Not sure if this is a good deal. CA did say as December has just arrived, he will check to see if there are lease deals coming up as this month is the most aggressive for discounts. My vehicle should arrive in January so he told me I can take advantage of whichever deal is better before then.

[7summits]

Originally Posted by saveywil1

As the title suggests, I’ve read many posts but I’m really struggling to get my head around the lease deal programs, residuals and generally all of it.. I like to think my strength in life is knowing when I am out of my depth...
So with that in mind, what are people’s thoughts on this..


Market value selling price 126,895
Total Savings 7,000 (BMW incentive 750 Dealer discount 6,250)
Adjusted price 118,895
Taxable fees 925
Doc 389
Tax 485
Non tax fees 151
Balance 121,845

36 months 10k per year Cash down 5,000 Monthly 1548

What should I be asking?

Very appreciative of time and thoughts,
David

You can get 10% off pre incentive and base MF on a build or inventory 2021 M5 using a broker. $400 broker fee. One is located in East Coast and you wont have shipping. No brainer.

He can also get 9% off build or inventory in West Coast. I know because I am about to order one from him.

[Greer]

Your deal is below average IMHO. I would keep looking if I were you.

[TrevorM3]

you can do better.

[saveywil1]

Originally Posted by 7summits

You can get 10% off pre incentive and base MF on a build or inventory 2021 M5 using a broker. $400 broker fee. One is located in East Coast and you wont have shipping. No brainer.

He can also get 9% off build or inventory in West Coast. I know because I am about to order one from him.

Can a broker still offer the Spartansburg delivery?

[saveywil1]

Originally Posted by Oswiff

Are you rolling in the taxes and fees or are you paying that upfront?

At first glance, the discount isn't great, you should be at minimum 8% before incentives, you are sitting at 6% with incentives.

Also, money down is a bad idea on leases - if you total the car or if you want to get out of the car early, you will not be seeing that money back.

In addition, your payment listed is high unless you are rolling into the payments taxes and fees. My calculator paying everything upfront and not including your 5k down is about 1388/month.

Will double check my math later but at first glance those are my thoughts.

That was with the fees rolled in. I’m not keen on the upfront payment either, this was the initial offer from the dealer. Trying to get some ammunition to go back to them with.

[TheOtherOne]

Roll everything in. MF has never been this low. It's like 200-300 over the course of a lease to roll everything in. Cheap insurance. Can you do MSD?

https://leasehackr.com/

Originally Posted by saveywil1

That was with the fees rolled in. I’m not keen on the upfront payment either, this was the initial offer from the dealer. Trying to get some ammunition to go back to them with.

[5tony]

Originally Posted by saveywil1

Can a broker still offer the Spartansburg delivery?

Yes. That's what I'll be doing if the dealership ever gets me an allocation!

[Gary J]

Allocation? Just do Build my BMW and have it delivered anywhere.

[5tony]

Originally Posted by Gary J

Allocation? Just do Build my BMW and have it delivered anywhere.

Well this particular deal is with a 10% discount before incentives on an ordered 2021, so not an easy deal to get.

[Gary J]

So what does an allocation have to do with an "ordered 2021"?

[BlueString]

Originally Posted by Gary J

So what does an allocation have to do with an "ordered 2021"?

All dealers have an allocation slot at the BMW Dingolfing Plant in Germany where the M5 is built. I believe dealers are given a certain number of M5 allocation slots (number of M5s allocated to that particular dealership) for the year or maybe monthly? I learned some dealerships can even trade up an allocation say if they don't have a January allocation but a customer wants to have an M5 by March and another dealership happens to have a January allocation.

So in order for a dealer to order a MY2021 M5 for you, they would have to have an allocated M5 built slot that they can sell you. I believe this is true for all car makes since these allocations are what allows any given dealership to order inventory for their site. In other words, an ordered 2021 M5 is really just a dealership going into one of their allocation slots and modifying it to your particular specs, before the vehicle goes into production, and slap your name on it as "priority 1 - customer sold" which notifies the factory that this is a higher priority in their production timeline. I find BMW to be the most transparent as other makes seem to discourage ordering a vehicle and want you to buy off their lot which makes sense from their business standpoint but to an enthusiast's perspective, we want our cake just the way we like it and eat it too.

[Gary J]

I have seen allocations used for M3 and M4 in periods of high demand like resfreshed models but not the M5. When I did Build Your Own on BMWUSA and selected a few dealers I got responses and offers from each within minutes.

[rccarps2]

Originally Posted by Gary J

I have seen allocations used for M3 and M4 in periods of high demand like resfreshed models but not the M5. When I did Build Your Own on BMWUSA and selected a few dealers I got responses and offers from each within minutes.

Yes, likely from dealers who have current allocation or are selling you a production allocation they know they have coming up in the next few months. The M5 certainly has build allocations allotted to dealerships. No dealership can just sell as many M5's as they want.

I ordered mine from a very large volume East Coast dealer towards the end of the summer (August), yet they didn't have an allocation available for production until October. My order sat in BMW's system from August until October before it moved into production. I was told their next available allocation after mine was in December (from memory). So that meant they could only have 2 2021 M5's built in 2020, unless they traded a slot/allocation with another dealer.

[Gary J]

Originally Posted by rccarps2

My order sat in BMW's system from August until October before it moved into production.

That was likely due to scheduling. I did several European Deliveries, which are now no longer offered to North Americans, and in the factory tour at the Welt saw how they reconfiguration the production lines to do a run of the various models. I have a feeling the M5 is not in as much demand as some of the other M's so allocation is not so much of a factor.

[rccarps2]

Originally Posted by Gary J

That was likely due to scheduling. I did several European Deliveries, which are now no longer offered to North Americans, and in the factory tour at the Welt saw how they reconfiguration the production lines to do a run of the various models. I have a feeling the M5 is not in as much demand as some of the other M's so allocation is not so much of a factor.

My dealer literally said to me "We have 2 allocations. One in October and one at the end of the year. So if you can either get a car in November/December or in early 2021." But what do I know.

Even some of the bigger brokers who float around here have been sold out of 2021 M5s for stretches. I just checked one of their online spreadsheet listings (an active forum member), and he has 2021 M5s shown as sold out, and he works with a very large network of dealers.

[Gary J]

And on the other forum JS said -

"Are you planning on buying or leasing? I've sold probably 30 M5 in my career, every one coveted and loved, and every generation has it's idiosyncratic concerns. E34 had a few problems, so did E39. E60 probably the most. F10 better.

I have delivered three this year, everyone is thrilled.

This one went bye-bye today."

I guess you just have develop the right relationship. Not him but with my guy there was never a mention of "allocations".

[BlueString]

Originally Posted by Gary J

And on the other forum JS said -

"Are you planning on buying or leasing? I've sold probably 30 M5 in my career, every one coveted and loved, and every generation has it's idiosyncratic concerns. E34 had a few problems, so did E39. E60 probably the most. F10 better.

I have delivered three this year, everyone is thrilled.

This one went bye-bye today."

I guess you just have develop the right relationship. Not him but with my guy there was never a mention of "allocations".

I think you were quoting a car broker that has many relationships with many dealers. It's like where I'm at in SoCal. I have about 15 dealerships around here so allocation isn't really a factor. If one dealer doesn't have a sooner allocation, I can call another but you have to factor in the deal you get. I rather wait for a later allocation and secure the best deal I can.

However, I can see in another region where there are only a handful or less dealerships, it can be a challenge trying to secure the best deal and get the earliest allocation. Hence, some folks here go out of state or through a broker.

[rccarps2]

Originally Posted by Gary J

And on the other forum JS said -

"Are you planning on buying or leasing? I've sold probably 30 M5 in my career, every one coveted and loved, and every generation has it's idiosyncratic concerns. E34 had a few problems, so did E39. E60 probably the most. F10 better.

I have delivered three this year, everyone is thrilled.

This one went bye-bye today."

I guess you just have develop the right relationship. Not him but with my guy there was never a mention of "allocations".

I am not even sure what this means. My relationship with my CA is just fine, and he was more than happy to sell me my 2021 M5C. I have even recommended him to a few forum members.

My understanding is there are allocations on these cars, whether your CA told you that or not, they just don't have unlimited M5's to sell, so they are allocated. He may just have an open current build slot, so it is a moot point to mention "allocation" to you. I bet if you finalize the deal you will be informed of when the build week is, and I would imagine it is weeks plus out.

Do a 5 second search in the M5 forum for "Allocation". Dozens of threads mentioning it.

Just my opinion. I'll defer to more experienced people in here. Getting way off topic anyways.

[Gary J]

Originally Posted by BlueString

However, I can see in another region where there are only a handful or less dealerships, it can be a challenge trying to secure the best deal and get the earliest allocation. Hence, some folks here go out of state or through a broker.

No he is at a dealership. And no worries I got a good deal especially on a 535i trade in. Used cars are at a premium now. "a challenge trying to secure the best deal" is down the priority list for me anyway.

"some folks here go out of state" is what I did. There is no need to go local anymore. A BMW can be delivered through "Courtesy Delivery" to your local dealer or even to your address.