Round 3.....
After looking at my scenarios, here is what the sealer came back with..
MSRP: $86,820
Incentives Applied:
- $2000 APR credit
- $1250 Loyalty Credit
- $500 Military Discount
Negotiated Price w/Dealer Discount & Credits Applied: $80467.66
Dealer processing fee: $299
Shadowline Grill & Rear Trim parts: $493.34 (w/o labor)
Total Purchase Price: $81,260
Down payment: $30k
Total Financed at 2.99% APR: $51,260 and $440/m payment
BMW Select residual: $26,914.20
So.....
The negotiated purchase price (not including processing fee and extra parts) with the BMW credits and dealer discount applied comes out to 7.3% off MSRP. If I remove the BMW incentives, the percentage off MSRP drops to 3% off MSRP. By giving me the BMW FS base APR of 2.99%, the dealer is clearly making up for lost profit on the APR by minimizing the discount before applying the BMW incentives. And of course, the $3750 in BMW factory incentives is pure profit for the dealer as well - so as expected, the dealer is still making a good profit.
From a financial perspective, the numbers work well for me and are in line with what I was looking for overall. Specifically, the monthly payment ($440/m) and the residual using the BMW Select program after applying my down payment ($26,914) is in line with what I have been researching using the BMW Select financial calculator. My $30k down payment plan, which consists of some money I have saved up and any proceeds from my Expedition (either via trade or personal sale) was going to happen with any deal I would make.
Regarding the actual X7, the one on the lot is very close to how I would have configured one - it has all of my "must have options" and none of the options I don't want (except one small one). And I have not found one this closely configured to my liking on any lot within a 500 mile radius of my location since I first started looking over 6 months ago or so (I was anticipating placing an order to get what I wanted). The only negatives:
a) Not my top color choice, but not my last one either
b) No Space Saver Spare option; but I know how to retro-fit that and plan to do so
c) No Ambient Air Package option; seemed like a nice to have, was a cheap option from the factory, not sure how easy or cost effective to retrofit though (may not be worth the effort)
d) No Extended Shadowline option, but purchasing those parts and adding them to the deal (and installing them myself) is very reasonable
e) Has the Glass Controls option; not a fan of this look, but I am confident I can "get used" to that look very easily over time, so not a deal killer.
So what do you think? The deal sounds pretty reasonable as far as getting an X7 very close to configured the way I want, and at a cost (i.e. monthly payment and residual value) in line with what I was planning for. Now, I would still need to convince the wife to let me pull the trigger now, since it was not supposed to happen until Jun/Jul (that is a different discussion
). But despite the deal being offered me, seeing these other great deals with 10% or better off MSRP, I hate feeling like I am leaving more on the table in terms of discounts. I mean, if I were not eligible for $3750 in BMW factory incentives (which is pure profit for the dealer), would I have still been offered these numbers
...??
Anyway, thoughts about pulling the trigger on this deal? Is there anything I might be missing or not considering?