[Kaz109]

XM Label you have a PM sir

[Padfan9]

Originally Posted by padrino

You do you, ask for advice then convince us all it’s a good deal…

25K down and 25K off, so a 50K cap cost reduction and you are still paying $1950 per month, dealer making it up in the MF..

I called 10 dealers and brokers and I was pushing very hard to get that, what other option do I have? I want the car, should I just walk out and not buy it? Or buy it all in cash?

[Padfan9]

Originally Posted by XM Label

A great deal isnt just discount off MSRP price. If you tell me what the money factor is I can tell you if you are getting a good deal. Also, DO NOT put down any money on a lease to get a lower monthly payment. This not a smart financial move. Smarter option is put the money into MSDs to lower money factor.

You’re saying to put down multiple security deposits? How does that work? I put that down and it lowers the payment the same way as a down payment but then I don’t lose it if there’s an accident where my car is totaled ? I have never done that before ..

[Padfan9]

Originally Posted by VirtualGuitars

I just love it when people come to owner forums (where we know more about these vehicles than the dealerships do), ask for our opinions, and then challenge all of our responses.

I am not challenging all responses actually, I’m asking questions and pushing back to get more details. I have purchased 7 other M cars and have always negotiated hard, and 90% of people get a few K off MSRP, and sure you can call all of them suckers and say you are the worlds best negotiator, but tell me, what option do I have? I’m not buying the car in cash, I don’t want to pay 3K per month for a car, so what would you do? I want the frozen black XM Label, and the best deal I could find after pinning multiple dealerships against each other and going back and forth was 25K off… sure if it includes the $9900, then I got 15,100 off which you’re all saying is a terrible deal, even though I have never heard of anyone getting more in my life.

How would you suggest I go about getting a better deal than this? There are 2 of the car options I want in frozen black available in California, one of them I walked out on mid deal because I got a better deal with the other… let me know?

[Padfan9]

Originally Posted by VirtualGuitars

I think you missed the point as I never mentioned anything about the base model. The word “Red” has been dropped from XM Label due to a lawsuit with Johnny Walker red label. There is no XM Label Red any longer and the name was changed before it went into production in early October. Look at your window sticker and it will not have the word “Red” in the name.

And putting down 25K on a lease is not very wise because if the vehicle gets totallled in a month, those funds will never be recovered. You’re getting 25K off, but I’m guarantee you that the dealer is including the $9900 purchase incentive or $7500 lease incentive in that number which has absolutely nothing to do with the actual sales price. They do this to make it look better when in actuality everyone that buys one of these qualifies for those incentives. I would highly reconsider how much you’re putting down. With a lease, it’s generally advisable to put down as little as possible.

Here is my window sticker with the same MSRP in addtion to a screenshot from the BMW configurator tool. Note that the name does NOT have the word ‘“Red” in it. I urge you to play around the configurator tool so you can see what I’m trying to explain. You can also order the XM Label with or without the red trim for the same cost. There are no interior options that can be changed - every Label will look exactly the same on the inside except the speaker grills if B&W was optioned.

Good luck with whatever you decide…

I am fully aware it’s called label now, I just don’t like the name.. not sure why they called it label or red label, both make no sense, but anyways.

Yes I could just put $0 down and then have a way higher payment, but then I have a huge payment for 3 years and I always get out of my lease about 2 years in using swapalease for example, and I generally always get my cash back.

Yes I know the $9900 is included but it’s still over 15K off on top of that, and compared to other deals I’ve seen and M cars I’ve purchased, that’s more than I’ve ever seen. How much more do you think I can get? I also risk losing the car I want and need now with a baby on the way.

[VirtualGuitars]

Originally Posted by Padfan9

I am fully aware it’s called label now, I just don’t like the name.. not sure why they called it label or red label, both make no sense, but anyways.

Yes I could just put $0 down and then have a way higher payment, but then I have a huge payment for 3 years and I always get out of my lease about 2 years in using swapalease for example, and I generally always get my cash back.

Yes I know the $9900 is included but it’s still over 15K off on top of that, and compared to other deals I’ve seen and M cars I’ve purchased, that’s more than I’ve ever seen. How much more do you think I can get? I also risk losing the car I want and need now with a baby on the way.

It makes no sense to put a large down payment on a lease. In the end, you will end up with more money keeping that 25k in a high-interest savings account then what a higher payment will cost you per month.

This is different than financing the vehicle where the interest is amortizatized and compounded over the course of a 36-to-72 month loan. Do the math. Yes, your monthly payments will be higher with a low down payment on a lease, but you will save more in the long run. I think everyone that has responded to this thread has basically said the same thing.

[Padfan9]

Originally Posted by VirtualGuitars

It makes no sense to put a large down payment on a lease. In the end, you will end up with more money keeping that 25k in a high-interest savings account then what a higher payment will cost you per month.

This is different than financing the vehicle where the interest is amortizatized and compounded over the course of a 4 to 6 year loan. Do the math. Yes, your monthly payments will be higher with a low down payment on a lease, but you will save more in the long run.

And what if, like I mentioned, I only keep the lease for 16 months, like the last 3 M cars I’ve had and I have someone take my lease and I get cash back from my down payment ? Does that change your opinion?

I looked into the MSD thing. It says bmw will let you put in 7 MSDs equal to monthly payment, which would be roughly 14K. If that lowers my MF to $0, then I am curious what my payment would be. I’m asking the broker to see if he can figure out the numbers for me vs a down payment.

[VirtualGuitars]

Originally Posted by Padfan9

And what if, like I mentioned, I only keep the lease for 16 months, like the last 3 M cars I’ve had and I have someone take my lease and I get cash back from my down payment ? Does that change your opinion?

I looked into the MSD thing. It says bmw will let you put in 7 MSDs equal to monthly payment, which would be roughly 14K. If that lowers my MF to $0, then I am curious what my payment would be. I’m asking the broker to see if he can figure out the numbers for me vs a down payment.

With all due respect, I’ve provided all the opinions I have left in me. I’m sure you’ll figure out what’s best for you.

[XM Label]

Originally Posted by VirtualGuitars

FYI, GAP coverage is already included with a BMW FS lease, so there’s no need to have that on your auto insurance policy. That’s why they don’t require it during the financing phase of the purchase.

Yes!

[Jd19]

Find a broker on leasehackr and let them negotiate for you. As other have said, you can get a much better deal and avoid putting a lot of money down.

[Padfan9]

Originally Posted by VirtualGuitars

With all due respect, I’ve provided all the opinions I have left in me. I’m sure you’ll figure out what’s best for you.

Wow you get tired easily…

With all the advice, I asked them to put down 7 MSDs and it did very little…

[Padfan9]

Originally Posted by Jd19

Find a broker on leasehackr and let them negotiate for you. As other have said, you can get a much better deal and avoid putting a lot of money down.

That’s exactly what I did… I can do:

$0 down for $2600 a month or

$20,000 down for $2150

Or $25,000 down for $1950

[VirtualGuitars]

Originally Posted by Padfan9

Wow you get tired easily…

With all the advice, I asked them to put down 7 MSDs and it did very little…

First off, I didn’t give you any of those recommendations. Secondly, reading this thread has been exhausting. It might also be helpful if you appeared to be “somewhat” thankful and less argumentative to everyone that has responded. After all, we’re all just trying to help you.

[Padfan9]

Originally Posted by VirtualGuitars

First off, I didn’t give you any of those recommendations. Secondly, reading this thread has been exhausting. It might also be helpful if you appeared to be somewhat thankful to everyone that has responded. After all, we’re all just trying to help you - at our own time and expense.

I’m very thankful, but nobody is actually giving me any numbers, just telling me “you’re getting a terrible deal, put less down and get a better deal” how exactly is that helping me? I need to know what a good deal is with numbers otherwise I have no idea what a “good deal” is. Do you not agree?

Example, my $1950 a month w 25k down is a terrible deal, which is 15K+ off mark plus another $9900 so 25k. If I were to put $0 down and get a better payment like people sugggest, that’s coming out to almost 50K off MSRP, that’s over 25%, how is that even possible? No chanve BMW is making that margin. They would lose a lot of money.

[VirtualGuitars]

Originally Posted by Padfan9

I’m very thankful, but nobody is actually giving me any numbers, just telling me “you’re getting a terrible deal, put less down and get a better deal” how exactly is that helping me? I need to know what a good deal is with numbers otherwise I have no idea what a “good deal” is. Do you not agree?

Wow, now that’s really going to make everyone want to help you! Good luck with whatever you decide, man. I’m out.

[XM Label]

Originally Posted by Padfan9

I’m very thankful, but nobody is actually giving me any numbers, just telling me “you’re getting a terrible deal, put less down and get a better deal” how exactly is that helping me? I need to know what a good deal is with numbers otherwise I have no idea what a “good deal” is. Do you not agree?

Example, my $1950 a month w 25k down is a terrible deal, which is 15K+ off mark plus another $9900 so 25k. If I were to put $0 down and get a better payment like people sugggest, that’s coming out to almost 50K off MSRP, that’s over 25%, how is that even possible? No chanve BMW is making that margin. They would lose a lot of money.

It’s a good deal if you get base money factor 0.00190, the money factor isn’t marked up, and no money down. Everyone’s situation is different and if you are only keeping car for shorter than 36 months it will complicate matters for sure in regards to MSD.

[Kaz109]

I’m pretty sure what’s going on is everybody has a different definition of “ deal “. You are only looking at the monthly payment. While others are looking at the overall cost.

13k off msrp , 25k down payment = lower monthly is a deal for you


13k off msrp , Zero money down , 7 MSDs = lower financing rate, and get the full value of the MSDs at the end of the 36 months meaning less overall cash spent over the 36mo period is a deal for others


If you feel you can get your 25k back on lease swap by all means go ahead and pull the trigger on the deal , I just don’t see that happening but then again, I’ve never used lease swap

[TXSchnee]

Originally Posted by Padfan9

That’s exactly what I did… I can do:

$0 down for $2600 a month or

$20,000 down for $2150

Or $25,000 down for $1950

You are spending $25,000 to save $650/month. If you take $650 over 36 months, that is $23,400. You are better off keeping that $25,000 and using it to pay the extra lease cost monthly and earn interest than having a "lower" payment.

[VirtualGuitars]

Originally Posted by TXSchnee

You are spending $25,000 to save $650/month. If you take $650 over 36 months, that is $23,400. You are better off keeping that $25,000 and using it to pay the extra lease cost monthly and earn interest than having a "lower" payment.

That’s basically what I tried to tell him - especially with savings accounts that yield well over 5% interest. He doesn’t seem to be grasping that, yes, he would have a higher payment, but he will also still have all of that $25K making interest at the same time. With that being said, I’m astonished that this thread is still going!

[Padfan9]

Originally Posted by VirtualGuitars

That’s basically what I tried to tell him - especially with savings accounts that yield well over 5% interest. He doesn’t seem to be grasping that, yes, he would have a higher payment, but he will also still have all of that $25K making interest at the same time. With that being said, I’m astonished that this thread is still going!

You are right, I decided to put $5,000 down instead.. I also got them to take another 7k off, so I’m getting 28K off MSRP, $9,900 plus $18,500 additional, so a little over 15%. MSRP was 191K ish and now it’s $163,000. So my payment is $2,450 per month w 5k down for 10k miles for 3 years. Is that better?

[Padfan9]

Originally Posted by XM Label

It’s a good deal if you get base money factor 0.00190, the money factor isn’t marked up, and no money down. Everyone’s situation is different and if you are only keeping car for shorter than 36 months it will complicate matters for sure in regards to MSD.

Thank you! I’ve decided to keep this one for the 3 years, and I tried the security deposit route but I would need to put in 7x my payment so let’s call it 15k, that’s tied up for years to get the MF down by 1%, I can make 5% on treasury bills so I’m not doing that, but you are all correct that it’s stupid to put down money in case of a totaled car, so I’m doing 5k to cover drive offs and payment will be $2450 ish, I have pushed them super hard and went through a broker and the final looks to be over 28K off in total. I hope that’s a good deal?

[VirtualGuitars]

Originally Posted by Padfan9

You are right, I decided to put $5,000 down instead.. I also got them to take another 7k off, so I’m getting 28K off MSRP, $9,900 plus $18,500 additional, so a little over 15%. MSRP was 191K ish and now it’s $163,000. So my payment is $2,450 per month w 5k down for 10k miles for 3 years. Is that better?

My 36 mo/10K lease payment is $2,398 per month on my Label. 192k MSRP, 13k off of that, $7,500 lease incentive with $20K down; however, $13.5K of that went towards the payoff of the 2023 iX M60’s that I traded-in, so essentially just a tad bit more money down (about $6,500) than you.

Moral of the story? The money factor plays a huge part in a lease and is generally where the dealer will make up for any discounts they give you upfront. You really have to run the numbers - It’s not just about the actual purchase price or lease payment amount. Sounds like they jacked up the money factor.