Purchase process when putting in an allocation

[White340]

Hi,

If i can find an allocation available for an M3, what is the process like? I spec out my car and say the MSRP is 80k. Do I negotiate the discounted price right then and there for a lease? What residual, financing rates, lease incentives apply - those at the time of placing the order or those when the car is physically delivered? I read on a post that someone got a better rate since by the time their car was delivered, lease rates/discounts were better. In that case, negotiating the price of the car at the outset is irrelevant. Once you place the order, is the deposit non-refundable?

Thanks

[BMW Lunatic]

Originally Posted by White340

Hi,

If i can find an allocation available for an M3, what is the process like? I spec out my car and say the MSRP is 80k. Do I negotiate the discounted price right then and there for a lease? What residual, financing rates, lease incentives apply - those at the time of placing the order or those when the car is physically delivered? I read on a post that someone got a better rate since by the time their car was delivered, lease rates/discounts were better. In that case, negotiating the price of the car at the outset is irrelevant. Once you place the order, is the deposit non-refundable?

Thanks

This is what I did while ordering a m3 last week.

- build out your specs with the CA at the dealership MSRP etc
- discuss agree on price . How much discount of msrp what rebates you qualify for . Taxes fees. Rates are lockable for 90 days in west coast and 60days in east coast. Which means you can negotiate your pricing now and lock in a rate incentives are pretty awesome right now . That is with submitting a credit app. Once you pick up your car you have an option to go with the leasing deals available at that time . You compare which is better and what makes sense for you .
- dealer will ask you for a small deposit and give you a production number if a allocation is available. ( if you don't get a production number right away it means dealer has no allocation ). Deposit should be refundable if u don't buy the product. But it varies negotiate that with your CA.

Hope this helps .good luck if u can find a allocation my suggestion is grab it even for a invoice + 1000$ at this time for a order car is good .

[instarand]

Originally Posted by White340

Hi,

If i can find an allocation available for an M3, what is the process like? I spec out my car and say the MSRP is 80k. Do I negotiate the discounted price right then and there for a lease? What residual, financing rates, lease incentives apply - those at the time of placing the order or those when the car is physically delivered? I read on a post that someone got a better rate since by the time their car was delivered, lease rates/discounts were better. In that case, negotiating the price of the car at the outset is irrelevant. Once you place the order, is the deposit non-refundable?

Thanks

FIRST... make sure the dealer has an allocation. When they don't, they have creative ways of making you think they do (or that they can easily get one). Ask the dealer to show you the allocation number and production week.

Then, yes. You essentially want to negotiate the discounted price of the car. Search around this forum, you'll see that you should be negotiating up from invoice instead of down from MSRP. Look for a deal around $500-1000 above invoice. Other threads talk about how to calculate invoice on your specific build.

Are you certain you want to lease? Once you run a credit application, you can lock in this month's rebates/incentives. When the car is delivered, if that month has better incentives you can choose those. If they are worse, you were locked in for previous month when you signed the deal - but only if you run a credit application. Not just window shopping.

But remember, negotiating the sell price of the car is independent of anything else - such as interest rates, rebates, lease/finance, etc. Always negotiate that sell price, and get it in writing.

LOTS of great information on all of these topics if you search around the various threads.

[White340]

Thanks guys. My lease is up at the end of the year, and have been eyeing an M3 for about 6 months now. It sucks that they're discontinuing it in May?/October?

Not sure what to do since I still have 8 months left on my lease. I don't want to have to settle for a color/options I don't want. Looking for AW with SO which is almost impossible to find around here and options will be even more limited the closer we get to the end of production.

[ben1233]

When negotiating a price, and if leasing, pin them down on a money factor while you're at it. If they won't tell you the MF, then ask what interest rate they're giving you. With the interest rate, you can back your way into the MF, I believe. Search this board for how to do this calculation as I can't recall it off-hand.

If you don't discuss MF or the interest rate, while you might declare a success getting a good "invoice+" price, in reality they might be really sticking it to you.

[BMW Lunatic]

Originally Posted by White340

Thanks guys. My lease is up at the end of the year, and have been eyeing an M3 for about 6 months now. It sucks that they're discontinuing it in May?/October?

Not sure what to do since I still have 8 months left on my lease. I don't want to have to settle for a color/options I don't want. Looking for AW with SO which is almost impossible to find around here and options will be even more limited the closer we get to the end of production.

I am in North Jersey - Are u located in NYC area ? AW with Orange should be easy to get ? Did u find something on the lots ? Happy to help you and put u in front of a dealer who has a allocation. Either u pay two car payments until your lease is up 8 months. or u build one get allocation by the time car finishes production and hits the dealership, maybe u can do a pull ahead with 6 months left on your 340. In short, if u want a m3 u need to order now a build or look for aw with orange I would start cars.com and do a 1000 mile search.