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BMW M5 F90 (2018+) General Forums F90 M5 Pricing, Ordering, Tracking, and European Delivery    What would you do? Lease now vs Lease Later

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      04-18-2019, 05:16 PM   #1
Mark240sx
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What would you do? Lease now vs Lease Later

I have a car on order that will be here tomorrow but I will be out of town so I can pick up my M5 Comp at the dealership on Tuesday. Just got the numbers and need some advice on what you would do. Here are my options.

Get the car now:

MSRP on M5 Comp $122,400
10,000 miles/36 months
.177 MF
.55 Residuals
$3695 drive off
$1800 mth tax included

Wait until August 1:
All the same terms, but I'm getting 10% off MSRP
$1647 per mth tax included
Plus a $1000 delivery fee

I have been dying to get this car but I don't want to feel like I'm getting a bad deal.

The question is do I pay the $1800/mth to get the car now or do I wait until August 1 to get the $1647/mth deal that I will have to pay an additional $1000 fee upfront for the delivery. So I am paying $4400 extra to have the car now.
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Last edited by Mark240sx; 04-18-2019 at 07:52 PM..
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      04-18-2019, 10:24 PM   #2
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Quote:
Originally Posted by Mark240sx View Post
I have a car on order that will be here tomorrow but I will be out of town so I can pick up my M5 Comp at the dealership on Tuesday. Just got the numbers and need some advice on what you would do. Here are my options.

Get the car now:

MSRP on M5 Comp $122,400
10,000 miles/36 months
.177 MF
.55 Residuals
$3695 drive off
$1800 mth tax included

Wait until August 1:
All the same terms, but I'm getting 10% off MSRP
$1647 per mth tax included
Plus a $1000 delivery fee

I have been dying to get this car but I don't want to feel like I'm getting a bad deal.

The question is do I pay the $1800/mth to get the car now or do I wait until August 1 to get the $1647/mth deal that I will have to pay an additional $1000 fee upfront for the delivery. So I am paying $4400 extra to have the car now.
Why would you pay MSRP for an M5C? Just to get it now?

As a matter of principle I personally wouldn't do it, but if you have the money to blow and want the car now, why not? To some people $10,000 is a fortune, to others it's nothing. It comes down to opportunity cost and your individual situation.
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      04-18-2019, 11:46 PM   #3
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1800 on a 122 car isn't that good of a deal anyway.
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      04-19-2019, 05:47 AM   #4
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Just curious, who is guaranteeing an August 1 deal of 10% off? And why that date unless dealer knows something about future MF or residual or other incentives coming? Why not try to negotiate for that % off MSRP right now?
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      04-19-2019, 06:12 AM   #5
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Quote:
Originally Posted by Kstadt911 View Post
Just curious, who is guaranteeing an August 1 deal of 10% off? And why that date unless dealer knows something about future MF or residual or other incentives coming? Why not try to negotiate for that % off MSRP right now?
I believe he was given August guidance with respect to allocation available. 10% is based off dealer margin (discount off MSRP) not what BMW may contribute by way of incentives to sweeten the deal.

No client advisor is privy to BMW Financial programs. I’m sure BMW looks at the economy, how much inventory on the lots, their competitors and God knows what else before coming out with each months program. With that being said, August would be very far off even for speculation!

I have a car on order with this guy OP is referring to. I’m of course hoping for a bump in residuals before July delivery. I’m actually expecting end of July for car to arrive on West Coast. I will push delivery into August if it were a matter of days to see what August programs might offer.

Last edited by calimarc; 04-19-2019 at 09:19 AM..
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      04-19-2019, 10:10 AM   #6
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Quick search of Autotrader will find several cars within a few hundred miles that are $10K off without even asking. Lots of good deals out there right now even though lease rates aren't great
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      04-19-2019, 11:40 AM   #7
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Quote:
Originally Posted by calimarc View Post
I believe he was given August guidance with respect to allocation available. 10% is based off dealer margin (discount off MSRP) not what BMW may contribute by way of incentives to sweeten the deal.

No client advisor is privy to BMW Financial programs. I’m sure BMW looks at the economy, how much inventory on the lots, their competitors and God knows what else before coming out with each months program. With that being said, August would be very far off even for speculation!

I have a car on order with this guy OP is referring to. I’m of course hoping for a bump in residuals before July delivery. I’m actually expecting end of July for car to arrive on West Coast. I will push delivery into August if it were a matter of days to see what August programs might offer.
I too have a car on order for expected July delivery, and as you say BMW financial makes MF and residual #s which we can't really predict. But occasionally dealers get wind before we do of certain incentives or other things coming which could affect dealer's ability to be more aggressive on pricing.

My question was to OP regarding taking delivery today on his ordered car for MSRP vs automatically getting 10% off MSRP if he waits until August ... still not clear on that or why his dealer would offer just those 2 scenarios.

As for you and me, and awaiting our ordered cars, hoping the MF goes down and the residual goes up ... also would be nice if BMW extends the $5k lease credit to the M5C and not just the M5.
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      04-19-2019, 02:38 PM   #8
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Quote:
Originally Posted by Kstadt911 View Post
I too have a car on order for expected July delivery, and as you say BMW financial makes MF and residual #s which we can't really predict. But occasionally dealers get wind before we do of certain incentives or other things coming which could affect dealer's ability to be more aggressive on pricing.

My question was to OP regarding taking delivery today on his ordered car for MSRP vs automatically getting 10% off MSRP if he waits until August ... still not clear on that or why his dealer would offer just those 2 scenarios.

As for you and me, and awaiting our ordered cars, hoping the MF goes down and the residual goes up ... also would be nice if BMW extends the $5k lease credit to the M5C and not just the M5.
Hopefully OP will add to his thread. But if it helps the 10% offer is from another CA outside the inflated market of California. The MSRP offer he is contrasting originates from SoCal. I'm not sure if they are going to include VASOLINE on that "deal" !!
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      04-19-2019, 05:07 PM   #9
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Quote:
Originally Posted by calimarc View Post


Hopefully OP will add to his thread. But if it helps the 10% offer is from another CA outside the inflated market of California. The MSRP offer he is contrasting originates from SoCal. I'm not sure if they are going to include VASOLINE on that "deal" !!
Ah that makes sense ... local Cali order at MSRP, car arrives now VS order another from out of state for delivery around August at $10k off .... decisions, decisions.
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      04-19-2019, 07:57 PM   #10
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Quote:
Originally Posted by Salespunk View Post
Quick search of Autotrader will find several cars within a few hundred miles that are $10K off without even asking. Lots of good deals out there right now even though lease rates aren't great
Is that for Competition Models or factoring in lease credit on base model M5? Overall sales are good for this M5 thus far as compared to previous generation M5 from what I’ve read. Might explain why BMW hasn’t budged but once so far on residuals.
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      04-20-2019, 06:19 PM   #11
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My two options are from two different sources. With the $1800 per month, my dealer knocked off about $5k off MSRP. I have made the decision to just wait until August 1 to get the second option at a much lower price. I just couldn’t live with myself for getting ripped off even though I have the money. Thanks for the advice guys. Just disappointed with my dealer that I have purchased five bmw cars from her and she would do me like that.
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      04-21-2019, 06:37 AM   #12
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      04-22-2019, 06:33 AM   #13
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Quote:
Originally Posted by Mark240sx View Post
My two options are from two different sources. With the $1800 per month, my dealer knocked off about $5k off MSRP. I have made the decision to just wait until August 1 to get the second option at a much lower price. I just couldn’t live with myself for getting ripped off even though I have the money. Thanks for the advice guys. Just disappointed with my dealer that I have purchased five bmw cars from her and she would do me like that.
Time to switch.
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      04-23-2019, 08:23 PM   #14
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My option 1 caved in and match my deal from out of state. So I now have my car.
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      04-24-2019, 07:46 AM   #15
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Originally Posted by Mark240sx View Post
My option 1 caved in and match my deal from out of state. So I now have my car.
Congratulations! I’m glad that worked out for you. She was trying to work you pretty hard, that CA in Beverly Hills. So you got something off the lot or your going to order ?
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      04-24-2019, 02:50 PM   #16
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My option 1 caved in and match my deal from out of state. So I now have my car.
Nice. Best of both worlds. Congrats!
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      04-25-2019, 07:26 AM   #17
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Originally Posted by calimarc View Post
Congratulations! I’m glad that worked out for you. She was trying to work you pretty hard, that CA in Beverly Hills. So you got something off the lot or your going to order ?
I custom ordered it end of December. Production didn’t start until March. So happy with this car. It’s exactly how I wanted it. Plus, I never had to make a deposit on the car. So it was easy for me to walk away. She was pissed that I had the upper hand. You can get the best deals if you can walk away from them. Thanks for your contact Marc. David was close to getting my business.
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      04-25-2019, 07:59 AM   #18
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Originally Posted by Mark240sx View Post
I custom ordered it end of December. Production didn’t start until March. So happy with this car. It’s exactly how I wanted it. Plus, I never had to make a deposit on the car. So it was easy for me to walk away. She was pissed that I had the upper hand. You can get the best deals if you can walk away from them. Thanks for your contact Marc. David was close to getting my business.
Post your specs when you can! I think it’s safe to say not many in SoCal can claim 10% off MSRP. You did real well and are right... if you can’t walk away from a deal with a CA your screwed before getting through the door!!

I’ll be retrieving my car from BMW Of Irvine in July (Courtesy Delivery). The drive home will take me Nrth past Sacramento. There goes a good chunk of the break in miles I anticipate production to BEGIN on the vehicle at just about 2 weeks from now.
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      04-25-2019, 08:05 AM   #19
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Quote:
Originally Posted by calimarc View Post
Quote:
Originally Posted by Mark240sx View Post
I custom ordered it end of December. Production didn’t start until March. So happy with this car. It’s exactly how I wanted it. Plus, I never had to make a deposit on the car. So it was easy for me to walk away. She was pissed that I had the upper hand. You can get the best deals if you can walk away from them. Thanks for your contact Marc. David was close to getting my business.
Post your specs when you can! I think it’s safe to say not many in SoCal can claim 10% off MSRP. You did real well and are right... if you can’t walk away from a deal with a CA your screwed before getting through the door!!

I’ll be retrieving my car from BMW Of Irvine in July (Courtesy Delivery). The drive home will take me Nrth past Sacramento. There goes a good chunk of the break in miles I anticipate production to BEGIN on the vehicle at just about 2 weeks from now.
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      04-26-2019, 08:33 AM   #20
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Quote:
Originally Posted by calimarc View Post
Post your specs when you can! I think it’s safe to say not many in SoCal can claim 10% off MSRP. You did real well and are right... if you can’t walk away from a deal with a CA your screwed before getting through the door!!

I’ll be retrieving my car from BMW Of Irvine in July (Courtesy Delivery). The drive home will take me Nrth past Sacramento. There goes a good chunk of the break in miles I anticipate production to BEGIN on the vehicle at just about 2 weeks from now.
So my timetable similar to yours, also no deposit so similar to OP in that regard ...

Question -- does anyone know exact MSRP versus invoice delta? I think its around 7% on the F90, and so I am wondering how dealers make these deals of 10% off MSRP? Are there incentives from BMW to dealer based on sales volume (or other criteria) that are that good to allow dealer to go that far below invoice? Or is invoice we think we know not the real invoice that dealers pay?

Any insight would be great, thanks
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      04-26-2019, 04:00 PM   #21
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Quote:
Originally Posted by Kstadt911 View Post
So my timetable similar to yours, also no deposit so similar to OP in that regard ...

Question -- does anyone know exact MSRP versus invoice delta? I think its around 7% on the F90, and so I am wondering how dealers make these deals of 10% off MSRP? Are there incentives from BMW to dealer based on sales volume (or other criteria) that are that good to allow dealer to go that far below invoice? Or is invoice we think we know not the real invoice that dealers pay?

Any insight would be great, thanks
Yes this is interesting. I don't believe 7% off MSRP is invoice and am not sure where this comes from. Obviously I could be wrong...I'm not in the business. The more a dealership sells the more they are allotted from BMW. So if they want to build inventory, market share it stands to reason they let go of some vehicles with little or no profit knowing they are "investing" in greater inventory down the road as well building clientele. Volume to BMW has to catch their attention and I can't see how a dealership would not be rewarded, even beyond increased allocations by Germany.
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      04-26-2019, 04:07 PM   #22
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Quote:
Originally Posted by Kstadt911 View Post
So my timetable similar to yours, also no deposit so similar to OP in that regard ...

Question -- does anyone know exact MSRP versus invoice delta? I think its around 7% on the F90, and so I am wondering how dealers make these deals of 10% off MSRP? Are there incentives from BMW to dealer based on sales volume (or other criteria) that are that good to allow dealer to go that far below invoice? Or is invoice we think we know not the real invoice that dealers pay?

Any insight would be great, thanks
I also suspect deposits are a hassle for dealerships knowing customers can back out and deposits have to be returned. Even though I have been told from some, "non refundable deposit" I believe that was BS and a way of gauging how serious a customer is before they spec out a car for order they may not be sure they can easily sell in their market.

We have all certainly heard all kinds of BS from dealerships. That's why these forums are invaluable to get to the truth and have a level playing field when going in for negotiation.
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