Texas BMW Car Dealers

Hello all, I'm a Canadian that has moved to Dallas about 2 months ago and am looking to lease a 2011 335i sedan from a local dealer. I'm interested in doing 27 month lease. I've shopped around at 3 local dealers and the best lease and residual rate I got was 0.0024 MF & 71% residual. I'm assuming that these rates are for customers that qualify with top tier credit. The vehicle I am interested in lease has an MSRP of $55,975. I was able to negotiate the selling price of the vehicle to be $54,886.32 out the door (inclusive of taxes, fees, title, license, etc.). Essentially the dealer is selling the car to me for $50,590.72 + fees and taxes. Based on these numbers, my monthly payment was to be $788/month. Keep in mind that in TX, the 6.25% sales tax is applied on the whole purchase price of the vehicle & not just on your monthly payments. After going through the approval process, the dealer comes back to me and says that since I'm a foreign national, I don't qualify for the 0.0024 MF. This is even after they pulled my Canadian credit (my Canadian credit history is perfect). They claim that the best rate they can offer me is 0.0045 MF. This rises my payment to $944/month. This MF seems outrageous. What is the buy rate for the dealership at the tier they are categorizing me in? To reduce my monthly payment, they have offered me the pre-pay lease option. In this scenario, the MF drops to 0.003325 and that I don't have to pay tax of the vehicle. So therefore my lease is based on a net cap cost of $51,657.71. Through this arrangement my monthly payment is $740/month, but I pay all my payments upfront ($19,980 due at signing). After crunching the numbers, I realize that they are charging me interest on the full $51,657.71. If I'm prepaying a lease, shouldn't I only be paying interest on the amount I'm borrowing? In this case the residual value of $39,742.25? The dealer claims that BMW's incentive for a pre-paid lease is the lower MF & no tax. My last question deals with how gap coverage is dealt with on a pre-paid lease. Is it the same as a normal lease scenario? I know insurance in the US only covers replacement value for the vehicle. For example, if the car is written of 6 months after I get it, my commitment into the lease is $740 x 6 = $4440 (balance owing is $51,657.71 - $4440 = $47217.71). Now if insurance is only going to pay out $45000 for the car, will BMW still cover the $2217.21 gap between the market value of the vehicle and whats left on the lease? Or since I prepaid, I'm going to have to eat the gap? Thanks in advance for your help.

Car Man, Thanks for the feedback. They would not negotiate above what I mentioned. I will be going to another dealer on Thursday to try to negotiate this deal with a 2011 750LI. Can you tell me if this is too aggresive to ask or is this what the market is bearing today because these are 2011 close out late models and the dealers want to move them along to make room for the 2012's in a few months. 2011 750LI, M Sport, camera, Lux Seat, Premium Sound, Heads Up, Smart Phone, Ceramic controls. MSRP $100,915. This includes $3460 Option credit. Invoice is $92,555. BMW FS is offering $2000 Build out cash incentive till 3/31 and there is also Manufacturer to Dealer Marketing Support for $2000 also. Taking these into account, I thought to offer them $91,000 for the car. Is this too aggressive or should I offer lower considering both cash incentives? On my trade, I know you recommended to have them cut me a check for the equity and that is the smart thing to do, however if I do want to bring my monthly payment down, I can apply that equity to bring down my net cap cost? I know if I get in an accident, I lose that equity and any cash down payment 100%. I was looking at Leasecompare.com buy rates for March 2011 for a 2011 750LI, and I got .00160? I'll take .00155 if this is actual that I can negotiate with the dealer. I wanted to ask if you thought it was a good idea to take advantage of the MSD program by putting 7 additional security deposits down to bring down the MF by .00049? I know it is cash up front, but the savings would be around $2300 for the term of the lease and you get the $ back at end of lease less charges for wear tear etc. Also is it required that the consumer pay doc, disposition, and/or termination fees? Lastly, What is Due at Signing? Residual is 55% for 10K/year. Non negotiable, correct? Here in TX, we have to pay 100% of sales tax of the total value of vehicle. Is there any way out of this? Can this be negotiated with the dealer? Sorry for all the questions. Just want to get solid advise and I will be pullling the trigger soon and getting in a lease of a 2011 750LI or 740LI. Thanks again Car Man. A Sun911

Car Man, Can you tell me if this is a good lease deal on a 2011 740LI lease. Convenience, Lux Seat, M Sport with 20" Wheel upgrade, Premium Sound. MSRP is $90,575. Car is out of state. They would have to ship to TX. I got a cap cost of $80,575 plus $1000 to ship. Total cap cost of $81,575. Invoice is $83,250. bmwusa is offering now $3185 option credit (not sure how that works. they did not mention this at all) and $2000 build out cash (this was not mentioned either). MF is .00200 and Residual of 55%. Acquisition fee = $925 (seems high?), Doc fee $155 and Govt Fee of $139.05. Are all these fees legit? 36 month lease with 10K miles per year. What is the difference in cost to go 12K miles per year? Quoted monthly lease payment of $1328.87. I do have a trade in which they low balled me at $30K. I owe $28K on it so I would yield $2K. Should I use this equity on a down payment to bring down cap cost? Also $1875 tax credit for the trade in which would bring my sales tax down. They quoted monthly lease payment of $1273 with the tax credit? Good deal? Thanks Car man

Hi Car_man, Do you know what are money factor and residual for 2011 Z4 3.0i? I'm looking for 36month lease @ 12K per year. The car have MSRP of $50950 and price talked last with the dealer is $46250. With $0 Down, we are at $602/month. What do you think about this deal? by the way, I live in TX, so the sales tax of the total vehicle is rolled in to the lease. Thanks!

I bought a 2009 X5 with 8Kmiles and following options for $46K (before taxes) in TX. Premium Package Technology Package Heated seats Bluetooth Comfort Access System 3rd row seat How much are they quoting you?