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      11-01-2020, 07:30 AM   #1
dk79
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Question Lease on new m5

I am currently leasing 2018 m5 for 1728 per month including taxes.
Dealership is offering me 2021 m5 competition msrp 117000, 5k down and same monthly lease payment. 12k miles per year.
What do you think I should be paying for lease payments?
I live in Arizona.
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      11-01-2020, 09:08 AM   #2
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Quote:
Originally Posted by dk79 View Post
I am currently leasing 2018 m5 for 1728 per month including taxes.
Dealership is offering me 2021 m5 competition msrp 117000, 5k down and same monthly lease payment. 12k miles per year.
What do you think I should be paying for lease payments?
I live in Arizona.
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.

Last edited by 7summits; 11-01-2020 at 09:27 AM..
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      11-01-2020, 09:32 AM   #3
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Quote:
Originally Posted by 7summits View Post
Quote:
Originally Posted by dk79 View Post
I am currently leasing 2018 m5 for 1728 per month including taxes.
Dealership is offering me 2021 m5 competition msrp 117000, 5k down and same monthly lease payment. 12k miles per year.
What do you think I should be paying for lease payments?
I live in Arizona.
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.
Yeah straight up what he said.

Your current monthly is not very good. And obviously that makes your new one, especially with $5k down, pretty terrible.

Follow the advice posted above. That's the way to go.
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      11-01-2020, 08:13 PM   #4
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Quote:
Originally Posted by 7summits View Post
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.
This is why I’m confused. I’m in LA and my 2021 M5 build has a MSRP $119,825. One of the dealers responded with 2.5% off MSRP (which is shitty) and he quoted me a lease of $1400/month which includes 9.5% LA sales tax. $5000 down and 12k/year. While I’m not getting 8-10% off MSRP like most of you here are, the monthly lease payments are very close to your calculation sample above and LA has a higher sales tax too. I understand I’m required a $5k down. I am leaning towards purchasing but this makes me wonder if negotiating off the MSRP really gets you a good deal since the monthly payments are what is realized at the end.

Am I missing something. It’s been over 8 years since I car shopped so educate me on these tactics dealers are using for these quotes.
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      11-01-2020, 09:17 PM   #5
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Quote:
Originally Posted by BlueString View Post
Quote:
Originally Posted by 7summits View Post
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.
This is why I’m confused. I’m in LA and my 2021 M5 build has a MSRP $119,825. One of the dealers responded with 2.5% off MSRP (which is shitty) and he quoted me a lease of $1400/month which includes 9.5% LA sales tax. $5000 down and 12k/year. While I’m not getting 8-10% off MSRP like most of you here are, the monthly lease payments are very close to your calculation sample above and LA has a higher sales tax too. I understand I’m required a $5k down. I am leaning towards purchasing but this makes me wonder if negotiating off the MSRP really gets you a good deal since the monthly payments are what is realized at the end.

Am I missing something. It’s been over 8 years since I car shopped so educate me on these tactics dealers are using for these quotes.
The lease payment is based off purchase price minus residual. So for low lease payments, you want the cheapest purchase price with the highest residual.

The residuals are pretty much set as a percentage of MSRP, but the purchase price, people have been getting up to 10% off sticker. Don't be afraid to have another dealer in another state ship in the car. $500-$1000 shipping one time to save $1000's per year is always worth it.
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      11-01-2020, 09:32 PM   #6
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Quote:
Originally Posted by DrHeLpErZx View Post
The lease payment is based off purchase price minus residual. So for low lease payments, you want the cheapest purchase price with the highest residual.

The residuals are pretty much set as a percentage of MSRP, but the purchase price, people have been getting up to 10% off sticker. Don't be afraid to have another dealer in another state ship in the car. $500-$1000 shipping one time to save $1000's per year is always worth it.
Thanks for the breakdown. Interesting got another response from another dealer same build/MSRP as above but 4% off MSRP (Which is a better deal at face value) same $5k down/12k per year but monthly lease is $1560 which is much higher. I guess this dealer is getting me from behind with the residual and MF. I guess patience is a virtue at this point lol.
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      11-01-2020, 09:49 PM   #7
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Quote:
Originally Posted by BlueString View Post
Quote:
Originally Posted by DrHeLpErZx View Post
The lease payment is based off purchase price minus residual. So for low lease payments, you want the cheapest purchase price with the highest residual.

The residuals are pretty much set as a percentage of MSRP, but the purchase price, people have been getting up to 10% off sticker. Don't be afraid to have another dealer in another state ship in the car. $500-$1000 shipping one time to save $1000's per year is always worth it.
Thanks for the breakdown. Interesting got another response from another dealer same build/MSRP as above but 4% off MSRP (Which is a better deal at face value) same $5k down/12k per year but monthly lease is $1560 which is much higher. I guess this dealer is getting me from behind with the residual and MF. I guess patience is a virtue at this point lol.
Residual is not negotiable and set by BMW FS; make sure you're getting dealer buy rate on MF .. you can get this figure through a simple search and should be able to get it with top-tier credit.

The biggest driver of lower payments is the discount off MSRP as well as possible rebates and incentives; again, you can do a simple search to see what is being offered during any given month.

The "latest and greatest" always comes with the downside that dealers are not as willing to offer aggressive discounts. I suspect 21 LCI's are not getting the steep discounts you may get on 20' models.

I took delivery of one of the 1st M5C delivered in the US and my discount was garbage.

Be patient and shop around.

There's a broker on this forum that may be able to get you a better deal; never used him personally but it appears others have. May be worth a try.
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      11-01-2020, 11:51 PM   #8
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Quote:
Originally Posted by 7summits View Post
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.
Ty, sent an email to the salesman at the dealership 😁
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      11-02-2020, 09:29 AM   #9
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Quote:
Originally Posted by BlueString View Post
This is why I’m confused. I’m in LA and my 2021 M5 build has a MSRP $119,825. One of the dealers responded with 2.5% off MSRP (which is shitty) and he quoted me a lease of $1400/month which includes 9.5% LA sales tax. $5000 down and 12k/year. While I’m not getting 8-10% off MSRP like most of you here are, the monthly lease payments are very close to your calculation sample above and LA has a higher sales tax too. I understand I’m required a $5k down. I am leaning towards purchasing but this makes me wonder if negotiating off the MSRP really gets you a good deal since the monthly payments are what is realized at the end.

Am I missing something. It’s been over 8 years since I car shopped so educate me on these tactics dealers are using for these quotes.
1. You are putting $5K down
2. Your plate fees are substantially less in CA than in AZ
3. CA has restrictions on dealer fees. In AZ they are uncapped and $599 typically.

Your deal is way worse than the example I gave especially if you are including incentives.

Last edited by 7summits; 11-02-2020 at 09:51 AM..
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      11-04-2020, 12:33 AM   #10
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Quote:
Originally Posted by 7summits View Post
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.
no one would do 10% off on 2021 M5 as of right now bro lol, not even anywhere close.
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      11-04-2020, 01:07 AM   #11
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Quote:
Originally Posted by derekana View Post
no one would do 10% off on 2021 M5 as of right now bro lol, not even anywhere close.
8% is realistic

https://leasehackr.com/calculator?ma...Tax_radio=true
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      11-05-2020, 10:55 PM   #12
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Quote:
Originally Posted by derekana View Post
no one would do 10% off on 2021 M5 as of right now bro lol, not even anywhere close.
For sure not in SoCal. I've been in touch with many of the dealers here in the LA area and for a 2021 M5 order, I'm getting anywhere from $1k to 3-5% off MSRP. I can't speak on behalf of others in other states but these are numbers I'm getting in the LA area. Thought I would share this in case any folks here in LA are shopping for a 2021 M5. Fortunately, I'm in no rush as I own my current vehicle so being patient until I find a deal for an ordered M5. Just got a source here so will give that a try and see if a deal can be worked out.
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      11-06-2020, 06:22 AM   #13
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Quote:
Originally Posted by derekana View Post
Quote:
Originally Posted by 7summits View Post
I think you should tell that dealership to go pound sand.

I just did the math for you using 10% off and base MF and no MSDS...

$1388 a month with AZ tax at 8.05% included and $0 due at signing. Your first month payment, AZ plates at $1950, $599 dealer fee and $925 acquisition fee all included. You could get your monthly down another almost $100 a month if you put 7 MSDs down. I am also not including loyalty or lease to lease incentive.

Only thing you will have to pay is a $500 broker fee and possibly shipping.

Don't ever get a car in AZ. I live here as well.
no one would do 10% off on 2021 M5 as of right now bro lol, not even anywhere close.
I would seriously consider shipping. The difference is material between what you're being offered and what others are getting (myself included), so the cost would be offset possibly. I don't know about the 8-10% others are getting, but 5-6% is very common in my area and I only got a tad more after seriously shopping to get a good deal.
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      12-06-2020, 06:05 AM   #14
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The numbers dealer gave you is, uh, not good...
I’ll suggest OP shop far & wide!
Go on Autotrader and search all the 2021s and start inquiring ones you like. (If you really want to get the 2021 M5 that is...)
I’ve really never bought/ lease new BMWs locally in Seattle. High demand drives up the price considerably. And I’ve purchased cars as far as from CA, NV, to Nebraska and even New York!
Especially on higher priced M cars saving could be big enough to justify the shipping costs!

Or simply look for a good lease broker. I just enjoy the fun of negotiating and “hunting” for the right car.
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