Originally Posted by Spoolin Montego
You probably have an unreasonable price in mind OP.
No I didn't. We agreed upon 6.5% of MSRP which in this market is not "unreasonable" (see truecar.com for historical transactions)
Originally Posted by Purgatory
+1 How about some details... and then we can all laugh about how dumb/not dumb you/stealership is/are. The forum is a great place to get a sanity check.
You are right. I should have given more background. Let me relate the conversations I had with the final dealer:
- Me: Want to lease a 1er
- Dealer: Ok. Do you have a price in mind?
- Me: I do, other dealers offered me 6% off MSRP and 22k on my trade. Can you beat that?
- Dealer (after back and forth BS with the Sales Manager): we can offer you 6.5% but not more because we don't make any money on the car. As for the trade we are at 22k as well.
- Me: I'll take it, although you still make money on the car since the MSRP is +7% on invoice and you get a kicker on the lease...
- Dealer: Ok, let's talk monthly payments. It would be $500/month with a down payment of $2,500
- Me: Ok, can you tell what is the MF, Residual and what the down payment is made of?
- Dealer (after back and forth BS with the Sales Manager): Sure. Here you go
- Me: there are couple of things not correct regarding your calculation. The MF is X, the Residual is Y and bank fees are Z (they all want to charge you $925 when it's actually $725 as advertised on BMW's website). Also what are those additional fees for (cap fee and cap taxes)?
- Dealer: let me go back to my sales manager
- Me (thinking): are they really serious with all that back and forth BS?
- Dealer: here you go, the payment is actually $490
- Me (thinking): "actually? well at least he tries to be honest, but I guess that's part of the game"
- Me: alright, let's see the details of the calculation. Yeah, I told you that I will pay the bank, documentation and dmv fees upfront (note that the other fees magically disappeared...). All in all we should be at $450.
- Dealer: This is already a great deal. I don't think we can do much better.
- Me: Oh the deal is great indeed, it's the just the monthly payment where we disagree. I'm sure we can work this out. Maybe there is something I'm doing wrong with my calculations. If you don't mind bringing your finance manager, he can probably walk me through this.
- Dealer: Ok
- Finance Manager: Here is how we calculate a lease payment...blah blah blah...
- Me: Oh ok. We actually do the same thing but in a slightly different way. So let me plug-in my numbers to your explanations. Here you go, $450.
- Finance Manager (thinking): yep, this one has done his homework...
- Finance Manager: yes, I guess it is $450
- Me: Great! Shall we shake hands on this?
- Dealer: Ok
- Me: I just need to have a quick conversation with the wife to make sure we are on the same base but I should give you the green light for ordering along with a deposit later today
- Dealer: that works for me
I sent an email 4 hours later to confirm everything was good and to this day, I never got a response. Honestly, I really don't know what happened...Either I scared them because I did my homework or they are making so much money on other customers that they don't need to bother with me...Either way that's just dishonest to shake hands and never call back. Yeah, call me naive, I still believe in shaking hands...
Does that answer all your suspicions?