[KingSlayerNYC]

Local BMW distributor broker (works with distributors and gets cars from them)I'm talking to is quoting me the following:

$980 per month. With initial down of $5800.

BMW 540xi $73k MSRP


Meanwhile, brokers like AutoCampanion from LeaseHackr have quoted me $890 with $6200 upfront for a $76k MSRP (taxes, dmv, first month etc). Here's the calculator link

https://calculator.autocompanion.com...0319&zip=11230

Why the disparity? And the local guy is telling me that these leasehackr deals are scams which I know for a fact aren't.

The local guy is nice and I want to do business with him but the pricing disparity smh

[KingSlayerNYC]

TLDR:

Higher MSRP deal is lower cost overall, from leasehackr AutoCampanion

$3k lower MSRP local deal is higher upfront and higher monthly.

Trying to make the local distributor understand the numbers here.

[RichardInCA]

Why not go with the better deal then?

[KingSlayerNYC]

Originally Posted by RichardInCA

Why not go with the better deal then?

Ah, my bad I should've clarified.

The better deal is custom order. Will take about 3 months.

The other one (more expensive despite lesser MSRP) is coming this month and checks off all my preferences (car wise).

[HandelJoyner]

Originally Posted by KingSlayerNYC

Local BMW distributor broker (works with distributors and gets cars from them)I'm talking to is quoting me the following:

$980 per month. With initial down of $5800.

BMW 540xi $73k MSRP


Meanwhile, brokers like AutoCampanion from LeaseHackr have quoted me $890 with $6200 upfront for a $76k MSRP (taxes, dmv, first month etc). Here's the calculator link

https://calculator.autocompanion.com...0319&zip=11230

Why the disparity? And the local guy is telling me that these leasehackr deals are scams which I know for a fact aren't.

The local guy is nice and I want to do business with him but the pricing disparity smh

Couple of things:

1) The calculator is confusing me a little bit. I'm actually seeing 972 + 4900 DAS from tbat calculator. I'm not sure if someone can go in and mess with it, though, so I accept at face value that the deal is 890 + 6200 DAS

2) This part you probably already know: If I were a local salesman trying to differentiate myself from a faceless online retailer whose scale I couldn't match, I'd try to play up my localness. Things like 'if anything goes wrong you know where to find me' (which a broker won't say, because you're not going to interact with a broker again once the deal's signed and checks clear), or 'you can trust me, you know me, but you can't trust that faceless guy.' Pretty easy to imagine a dealer who's trying to charge MSRP saying that about this broker, I think.

Basically, I suspect you know it's just a bullshit line in the Bag O' Sales Tricks. I don't know either your local broker or the online seller and don't implicitly trust either. I also don't trust dealers, either, nor do I trust the Tech companies that are building cars these days. But I need to buy a car SOMEHOW. So I probably lean toward the faceless internet brokers with good reputations. But that is just my opinion.

[RichardInCA]

To me, it all comes down to what you want to optimize for - exact spec of the car, when you take delivery, monthly payment etc.

If $ paid is your top priority, then the choice is pretty obvious! Good luck.

[isapple]

We all know autocompanion isn't a scam - they get their $ via broker fee and they push a lot more cars than the local guy. They also negotiates with dealers on your behalf (pre set rate for everyone) and then dealer doesn't have to pay local sales guy to sit with you for hours on end for you to not make a decision. Dealer also gets a small cut (1~2% profit) from the sale and they push more inventory leading to higher volume leading to benefits for dealer (sales / revenue $, more allocation (i think), etc.)

One the flip side, local guy's commission is based off of how much higher he can get you to pay and doesn't get that 800 broker fee separately. Has all the more reason to say that autocompanion is a scam.

[Roki_014]

thats too much money down, if your car is totaled you lose everything, happen to me, they totaled the car because airbags opened and it wasn't even that bad , but insurance wanted to make the money i guess so just know w leases always put least amount of $ down

Originally Posted by KingSlayerNYC

Local BMW distributor broker (works with distributors and gets cars from them)I'm talking to is quoting me the following:

$980 per month. With initial down of $5800.

BMW 540xi $73k MSRP


Meanwhile, brokers like AutoCampanion from LeaseHackr have quoted me $890 with $6200 upfront for a $76k MSRP (taxes, dmv, first month etc). Here's the calculator link

https://calculator.autocompanion.com...0319&zip=11230

Why the disparity? And the local guy is telling me that these leasehackr deals are scams which I know for a fact aren't.

The local guy is nice and I want to do business with him but the pricing disparity smh

[KingSlayerNYC]

Originally Posted by Roki_014

thats too much money down, if your car is totaled you lose everything, happen to me, they totaled the car because airbags opened and it wasn't even that bad , but insurance wanted to make the money i guess so just know w leases always put least amount of $ down

I mean it's not exactly down payment.

It's more so 1st.month + taxes + DMV + fees upfront.

I can make all that $0 upfront, but the monthly will increase . By a good $100-200

[SkykingUSA]

You are correct, but the idea with a lease is that you are "renting" the vehicle. Therefore, if you drive off the lot and a week later you are in an accident and the vehicle is totaled by the insurance company, then how much have you spent to that point? In your case, you have spent $5800 which you will likely never get back. However, if you roll everything in to the payment, you would have only spent around $1,200 (1 monthly payment).

Granted, if you prioritize having the lowest monthly payment, then put as much down at signing as you like. Just be aware that you run the risk of losing that money in the event of an early totaling of your car. Another benefit to putting more money down is that you don't pay a money factor (MF) on that amount (basically interest). I believe the MF only applies to the amount remaining to pay on the lease after your amount due at signing is paid. Essentially you spend less on "interest" by putting more down.

Either way can be good for you because everyone has different priorities, but it is widely recommended that you put as little down on a lease as possible so you are not out a lot of money in case the car gets totaled early in the lease. It's just a way of spending the least amount of money in the event the car gets totaled.

I hope that helps, so you can make a decision.

[LVBMW]

Originally Posted by SkykingUSA

You are correct, but the idea with a lease is that you are "renting" the vehicle. Therefore, if you drive off the lot and a week later you are in an accident and the vehicle is totaled by the insurance company, then how much have you spent to that point? In your case, you have spent $5800 which you will likely never get back. However, if you roll everything in to the payment, you would have only spent around $1,200 (1 monthly payment).

Granted, if you prioritize having the lowest monthly payment, then put as much down at signing as you like. Just be aware that you run the risk of losing that money in the event of an early totaling of your car. Another benefit to putting more money down is that you don't pay a money factor (MF) on that amount (basically interest). I believe the MF only applies to the amount remaining to pay on the lease after your amount due at signing is paid. Essentially you spend less on "interest" by putting more down.

Either way can be good for you because everyone has different priorities, but it is widely recommended that you put as little down on a lease as possible so you are not out a lot of money in case the car gets totaled early in the lease. It's just a way of spending the least amount of money in the event the car gets totaled.

I hope that helps, so you can make a decision.

Agree with this analysis totally. The less you put up front on the lease, the better financial sense it makes.

[KingSlayerNYC]

Originally Posted by SkykingUSA

You are correct, but the idea with a lease is that you are "renting" the vehicle. Therefore, if you drive off the lot and a week later you are in an accident and the vehicle is totaled by the insurance company, then how much have you spent to that point? In your case, you have spent $5800 which you will likely never get back. However, if you roll everything in to the payment, you would have only spent around $1,200 (1 monthly payment).

Granted, if you prioritize having the lowest monthly payment, then put as much down at signing as you like. Just be aware that you run the risk of losing that money in the event of an early totaling of your car. Another benefit to putting more money down is that you don't pay a money factor (MF) on that amount (basically interest). I believe the MF only applies to the amount remaining to pay on the lease after your amount due at signing is paid. Essentially you spend less on "interest" by putting more down.

Either way can be good for you because everyone has different priorities, but it is widely recommended that you put as little down on a lease as possible so you are not out a lot of money in case the car gets totaled early in the lease. It's just a way of spending the least amount of money in the event the car gets totaled.

I hope that helps, so you can make a decision.

Originally Posted by LVBMW

Agree with this analysis totally. The less you put up front on the lease, the better financial sense it makes.

So I should go ahead with the $0 down and $0 upfront, and just pay the higher monthly?

I don't have a problem with that.

[KingSlayerNYC]

The good thing about that method is, the initial $6000 upfront is equal to 5 months of payments. So I won't have to worry about payments for 5 months off the back.

[SkykingUSA]

I'm not sure we can tell you which way to go with this. We can only tell you some positives and negatives about both options, and then you have to decide for yourself which way suits you best.

Decide what your goal is, then pick what you're comfortable with. Look at the two extremes, then pick one of them, or something in between:

1. $0 deposit, and only pay the first month payment upon signing. This way, over the term of the lease you will likely pay more because the money factor will apply to the full amount. However, consider putting the down payment money you would have spent into a high interest savings account or into an investment account of some type so you can earn money on it and factor that into your calculations too.
2. Pay a huge up front down payment. You will likely pay the least this way because the money factor (interest) will only apply to the non-down payment portion. However, you have spent more if the car is totaled. You also lose money on opportunity cost because the money you put towards the down payment can no longer earn you interest through a savings account or investment account.

You really need to run the numbers and consider what is more important to you, then make a decision and stick with it. That is my two cents.


Look at the bright side: after all this thinking and deciding, you'll have a car to have fun with!

[alewifebp]

Besides the risks already pointed out about down payments or even paying the taxes upfront, I always ask myself: would I rather pay that money now or pay it later over time?

[KingSlayerNYC]

Originally Posted by SkykingUSA

I'm not sure we can tell you which way to go with this. We can only tell you some positives and negatives about both options, and then you have to decide for yourself which way suits you best.

Decide what your goal is, then pick what you're comfortable with. Look at the two extremes, then pick one of them, or something in between:

$0 deposit, and only pay the first month payment upon signing. This way, over the term of the lease you will likely pay more because the money factor will apply to the full amount. However, consider putting the down payment money you would have spent into a high interest savings account or into an investment account of some type so you can earn money on it and factor that into your calculations too.
Pay a huge up front down payment. You will likely pay the least this way because the money factor (interest) will only apply to the non-down payment portion. However, you have spent more if the car is totaled. You also lose money on opportunity cost because the money you put towards the down payment can no longer earn you interest through a savings account or investment account.


You really need to run the numbers and consider what is more important to you, then make a decision and stick with it. That is my two cents.


Look at the bright side: after all this thinking and deciding, you'll have a car to have fun with!

Appreciate the time taken to put your input! Will definitely go with the $0 route. Thanks! And yes definitely can't wait for the car, the $0 route gets me the car in less than a month as it is incoming and wouldn't have to be be custom ordered (2 to 3 months).

Originally Posted by alewifebp

Besides the risks already pointed out about down payments or even paying the taxes upfront, I always ask myself: would I rather pay that money now or pay it later over time?

Oh yes. Will invest that $6000 or put aside for next 5 payments.

[KingSlayerNYC]

Just gotta get this local broker/distributor to come as close to the online brokers deals. Will talk MF and the likes in detail and report back later what we numbers we agreed on.

[KingSlayerNYC]

Update:

So we agreed on $1,035 per month (with $1995 upfront).

I think that's not too bad. The monthly is closer to the other dealers and brokers and it's also less upfront now. Says the 1995 upfront is his distributors policy, can't make it $0

[RichardInCA]

Originally Posted by KingSlayerNYC

Update:

So we agreed on $1,035 per month (with $1995 upfront).

I think that's not too bad. The monthly is closer to the other dealers and brokers and it's also less upfront now. Says the 1995 upfront is his distributors policy, can't make it $0

Congratulations - now you can put that in the rear view mirror and focus on getting your hands on the car!