Automotive

Trying to get the best lease deal from BMW 2017 x3 28i

  • Last Updated:
  • Sep 20th, 2017 3:21 pm
[OP]
Deal Addict
Jan 17, 2010
3493 posts
636 upvotes
Toronto, ON

Trying to get the best lease deal from BMW 2017 x3 28i

Hi auto experts,

As per the title, I'm trying to get the best lease deal on a BMW X3 series and I need some advice/insight. I have done a little research on how to get the best lease deal before posting here and contacting BMW dealers in the GTA because I didn't want to go in blindly (wanted to have as much knowledge as possible so I get the best deal).

Please bear with me and the relatively lengthy post because I am trying my best to write this while understanding all the terminology and how the leasing a car works.

Here are some points I gathered that would help me in getting the best deal (in no particular order):
- Don't tell the dealer whether I am leasing or financing yet
- Try to find the invoice price from website like unhaggle (which I did)
- In order to get the best leasing price, I want to get the purchase price as close to the invoice price
- Want to get a low interest rate (money factor) and as much incentives/rebates as possible.

So one of the dealers contacted me, and he found me an X3 that fit what I wanted in terms of color and optional packages. He let me know the MSRP of the car is close to $57000 and asked me if I was interested. I said yes, but wanted to discuss what is the lowest purchase price before we take it further. After chatting a bit, he said he can do discount 10% of the MSRP ($5000) and if I came in he could reduce it further. I said yes, I would go in to see the dealer. He said the car is in the store and that they are getting rid of 2017 models - it seemed like he wanted to try get rid of the car from their dealership. I know that BMW is having a private sale event this weekend and the minimum $5000 discount offered includes the $3500 event credit that is being promoted. (So I am only getting $1500 extra discount on top of the $3500 event credit).

My question is, have I got off on the right foot? Is this a good starting point assuming if I go in and he offers even further discounts?

I plan to discuss with him other factors such as mileage (we only need 12K per year) and that we are going to lease the car instead of finance.

Many thanks!
40 replies
Member
Mar 27, 2012
295 posts
123 upvotes
Aim for 6% -7% off, then add in the BMW incentives, and take out the bogus fees that amount to around $500.
Deal Expert
User avatar
Jul 30, 2007
25112 posts
9996 upvotes
Toronto
Here is just an example for projected pricing for the 17 X3 28. I will assume: base + better seat + premium enhanced = $56,700 (as you have said the car is optioned to around $57,000)

first the target discount and net pricing
MSRP $56,700
target discount 6.5% = $3,685
factory credit = $2,500 + $1,000 (special bonus credit for 09/21-23) = $3,500
Fees - approx. $2,900 (since I don't know which dealer you are dealing as their fees will differ). Mind you, I advise you to tell dealer you have no intention to pay other bogus fees, such as vin etching admin (approx. $300); nitrogen air (up to $400); vehicle care / floor mats (approx. $300); wheel locks (approx. $100).

Target price = $52,415

If the target price has been accepted, then for leasing:
1.9% interest rate (assuming you are not a current bmw owner now) If you are, then 0.75% rate reduction
12,000km per year
$0 down
All fees $2,900 rolled into the payment
No excess wear & tear protection plan is chosen for this illustration
No tire & wheel protection plan is chosen as well for this illustration

* 36 months / Residual 52% (per bmw.ca). Projected monthly payment - $701.75 + taxes OTR ... with loyalty and interest rate reduced to 1.15%, the revised # is $676 + taxes OTR
* 42 months / Residual 48% (per bmw.ca). Projected monthly payment - $663.00 + taxes OTR ... with loyalty and " "" , the revised # is $638 + taxes OTR
* 48 months / Residual 44% (per bmw.ca). Projected monthly payment - $633.45 + taxes OTR ... with loyalty and " ", the revised # is $609 + taxes OTR

** Due on delivery - First month + security (usually rounded off to one month of lease) + PPSA (approx. $55 + taxes) + license + full tank of gas of $90 (unless you have negotiated this to be at no cost).
Last edited by booblehead on Sep 20th, 2017 8:22 am, edited 2 times in total.
Deal Expert
User avatar
Jul 30, 2007
25112 posts
9996 upvotes
Toronto
I prefer to be referenced as the 'money man' ... well, I am sure the dealers hate me. Smiling Face With Open Mouth And Smiling Eyes

smrtphur wrote:
Sep 20th, 2017 8:01 am
Lol designated rfd hagler
Member
Mar 27, 2012
295 posts
123 upvotes
Wow the residuals have dropped, I did 20k/year for 48 months and it was at 43%
Deal Expert
Aug 22, 2011
29604 posts
15436 upvotes
Ottawa
Based on Booblehead's numbers, you're ahead by $415, with the initial $5K discount off the $57K MSRP.
Since the sales person mentioned more off if you go in; you got yourself a good deal.
Deal Expert
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Jul 30, 2007
25112 posts
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Toronto
Do note the dealer will tell you BMW factory credit allowance requires the dealer to contribute some portion towards the $3500. In other words, their excuse will be approx. $500 to $750 is coming out from their margin. Hence, you will be facing some resistance if you ask more than 7% in dealer side discount and for now, I have penciled in for just 6.5% off from the dealer side.

Also, don't forget in the $2900 fees, there is dealer admin fee of approx. $400 and pdi of around $1100 which is already a 'cash cow' $ grab for their bottom line.
Sr. Member
Dec 10, 2007
587 posts
376 upvotes
Arviat
booblehead wrote:
Sep 20th, 2017 8:23 am
I prefer to be referenced as the 'money man' ... well, I am sure the dealers hate me. Smiling Face With Open Mouth And Smiling Eyes

You should get a token or gift from all these people you help get a great deal (not that you should expect it). Grinning Face
Remember when you liked what you currently have
Deal Expert
User avatar
Jul 30, 2007
25112 posts
9996 upvotes
Toronto
a few RFDers did offer to send me some Starbucks GC though. I declined politely.
ellesdad wrote:
Sep 20th, 2017 9:03 am
You should get a token or gift from all these people you help get a great deal (not that you should expect it). Grinning Face
Deal Expert
Aug 2, 2004
30733 posts
5157 upvotes
East Gwillimbury
Wow, why would you pay $700 per month just to drive 1000 Km per month? The mileage allowance is really low. It’s like paying to have it parked most of the time or paying $700 to have a car for the weekends.
Deal Expert
User avatar
Jul 30, 2007
25112 posts
9996 upvotes
Toronto
OP, just want to bring you up to notice on lease mileage ...

The difference in choosing 12,000 km per year vs 16,000 km per year, the residual is only 1% difference in each of the 36 / 42 /48 months scenario

Therefore, to give you a bit of slack, by bumping up the mileage to 16,000 km per year ... you are looking at $15 (36months) /$ 13 (42 months) / $11 (48 months) per month + taxes more.
[OP]
Deal Addict
Jan 17, 2010
3493 posts
636 upvotes
Toronto, ON
Gee wrote:
Sep 20th, 2017 9:28 am
Wow, why would you pay $700 per month just to drive 1000 Km per month? The mileage allowance is really low. It’s like paying to have it parked most of the time or paying $700 to have a car for the weekends.
We have a newborn baby and a kid. Lol.. I donno how else to put it but we need a car buddy... Yes we don't drive the car that much but we need it to go to places, like school, doctors office. Coming from an 328i we needed an upgrade to an SUV hence the choice in an x3.

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