[TurtleBoy]

Originally Posted by Mattl0806

This is the right way of thinking about it. I was going to do the same.
To me, the 1.5% spread over my money markets account doesn’t make sense for this cash to be locked up with bmw financial. I’m in NY as well where I believe they are often not allowed. Regardless, I would not do them in this rate environment. Made more sense when rates were 0.

You would have to check your numbers but the returns on MSDs almost always outperform any comparable investment.

[Mattl0806]

Originally Posted by TurtleBoy

You would have to check your numbers but the returns on MSDs almost always outperform any comparable investment.

Yea I acknowledged it out performs by 1.5% to my money markers. But money market is liquid and accessible throughout the time period. Now money markets float so yes this spread can grow, but I don’t invest in CDs either or any product that locks my cash away unless there was a real large incentive to do so..

EOD 6.5% or 5% on 8400 is a delta that isn’t worth spending a lot of time thinking about.

[TurtleBoy]

Originally Posted by Mattl0806

Yea I acknowledged it out performs by 1.5% to my money markers. But money market is liquid and accessible throughout the time period. Now money markets float so yes this spread can grow, but I don’t invest in CDs either or any product that locks my cash away unless there was a real large incentive to do so..

EOD 6.5% or 5% on 8400 is a delta that isn’t worth spending a lot of time thinking about.

That makes sense, everyone has different preferences so it is just a matter of works, I guess you can say feels, better for the person.

[mhrir]

Originally Posted by Mattl0806

Yea I acknowledged it out performs by 1.5% to my money markers. But money market is liquid and accessible throughout the time period. Now money markets float so yes this spread can grow, but I don’t invest in CDs either or any product that locks my cash away unless there was a real large incentive to do so..

EOD 6.5% or 5% on 8400 is a delta that isn’t worth spending a lot of time thinking about.

Originally Posted by TurtleBoy

That makes sense, everyone has different preferences so it is just a matter of works, I guess you can say feels, better for the person.

The real take away is don't do a capitalized cost reduction. Money market, MSDs, etc are a smarter choice.

[crackerjack15]

Originally Posted by harshjadia

Need a negotiation masterclass from crackerjack15 on how they scored such a good discount on their vehicle! And a finance one from Mattl0806 to understand the invest in money market vs down payment suggestion! :-D

Well I did also trade in a vehicle (X7 M60i) that they probably made 4-7k on. So that may have been a small factor.

[harshjadia]

Alright alright alright, heard back from my dealer. Attached is the deal they are offering for the financing vs leasing option.

My plan of action-
1. Negotiating for a 2.99% APR and shopping around for this rate with other creditors.
2. They do offer complimentary window tinting which is great, will try to squeeze more off msrp as well.
3. As our down payment budget was $10-15k will see how much lower the monthly payment comes down to.

Not leaning towards leasing as I can’t pursue the commercial vehicle/ business registration route. However, considering the MF and residual value, happy to listen to y’all’s advice on pursing this route.

Let me know what yall think! TIA!

[Mattl0806]

Originally Posted by harshjadia

Alright alright alright, heard back from my dealer. Attached is the deal they are offering for the financing vs leasing option.

My plan of action-
1. Negotiating for a 2.99% APR and shopping around for this rate with other creditors.
2. They do offer complimentary window tinting which is great, will try to squeeze more off msrp as well.
3. As our down payment budget was $10-15k will see how much lower the monthly payment comes down to.

Not leaning towards leasing as I can’t pursue the commercial vehicle/ business registration route. However, considering the MF and residual value, happy to listen to y’all’s advice on pursing this route.

Let me know what yall think! TIA!

Do you qualify for any bmw incentives?

You are getting 4.7% off and a jacked up interest rate. Say you finance 70k - they make back 2300 of that 3799 discount in the extra finance charge. This lowers your effective discount to more like 2%.

IMO - This is not a very good deal at all.

If you quality for incentives then this deal is even worse. $1000 loyalty for example they would be hiding that in their 3799 discount which is not their $1000 but rather bmw mothership. Which means this dealer would only be discounting 2799 BEFORE incentives. Then throw in the jacked up rate and they are basically giving you 0 discount!!

[TurtleBoy]

Originally Posted by harshjadia

Alright alright alright, heard back from my dealer. Attached is the deal they are offering for the financing vs leasing option.

My plan of action-
1. Negotiating for a 2.99% APR and shopping around for this rate with other creditors.
2. They do offer complimentary window tinting which is great, will try to squeeze more off msrp as well.
3. As our down payment budget was $10-15k will see how much lower the monthly payment comes down to.

Not leaning towards leasing as I can’t pursue the commercial vehicle/ business registration route. However, considering the MF and residual value, happy to listen to y’all’s advice on pursing this route.

Let me know what yall think! TIA!

So far no one has been able to get 2.99%/3.99 on an ordered vehicle but worth trying to push for it. Some dealers will bypass the rules and give it and evidently yours doesn't have an issue doing it.

I think your discount is pretty decent given you are going for a 50e considered most are charging MSRP due to limited inventory.

It is too bad the business can't buy it as that would really help.

Doesn't seem to be any reason why you would want to pursue leasing it.