Topic: 2009 BMW 328i Demo Deal

[airbalancer]

So they tell you it's definitely a new car but the warranty is 6 months old. Man what will it take for you to walk away!

I agree, if it is a new car, then full warranty,

[vdk]

It's not a new car - it's more of a lease takeover.

MSRP: $48,000 -
Paid lease: 6 x ~$500/month
________________
$45,000

That doesn't include any BMW Discounts since it was a HQ car. How much can those be $4-5k?

[Julie]

Hi, I am surprised to see so many replies in the past few days. Thanks for joining. I just got an email conformation from the sale that they already got the car and will provide more details tomorrow. The offer I got is:

2009 BMW 328i Sedan (Space Grey Met with Saddle Brown Dakota Lthr)

ZRA - Premium Package
- Heated Steering Wheel
- Auto Dimming Mirrors, Ext.
- Compass Mirror
- BMW Assist w Bluetooth Wireless Technology
- Dakota Leather
ZLM - Executive Package
- Alarm System
- Universal Garage Door Opener
- Comfort Access
- Lumbar Support
- Burl Walnut Wood Trim
- Park Distance Control
MET - Metallic Colour
205 - 6 Spd Automatic Transmission w/STEPTRONIC
6FL - USB Audio Integration

Total MSRP: 48025.00
Discount:     7500.00
Freight/PDI:  0
Total:         40525.00 + Applicable Tax

Lease rate (42months): 2.5%
Financial rate (up to 60 months): 1.9%

I checked the CarProof record: The car was first renewal date is June 1, 2009 in Canada. Nothing else.

I haven't decided if I should choose to buy it or lease it, it all depends on the condition of the car and your valuable input.

Thanks again!

If it were me, I'd wait until Jan-Feb, for the deals on the 2010s...  They'll be coming.  For example, I saw lots of sedans still on my neighbourhood dealer's lot.  The 2011s are coming in April.

Last summer, there was a $5000 rebate from manufacturer to dealers on 335i sedans when the model year changed over (although less for the 328i - can't remember - I think maybe $3500 roughly).  Anyways, it'll be a new car, and if you may trade it in in a few years, you will suffer 1 year less depreciation.

[bmw8324]

Great point. The current offer is tempting because the car has all the features I need, such as lumbar support, leather seats, mech paint, parking assit, USB port etc. Plus the low rate and the discount. However, it all depends on the condition of the car. If I am not quite happy with the car, I will wait.

[Julie]

Great point. The current offer is tempting because the car has all the features I need, such as lumbar support, leather seats, mech paint, parking assit, USB port etc. Plus the low rate and the discount. However, it all depends on the condition of the car. If I am not quite happy with the car, I will wait.

Oh, I see.  If you like it, and your gut says, "Yes, yes!" all the way, buy it.  No sense chasing after possible future deals if you have found "the one". 

[articsteve]

About 600, with admin charge/security deposit/etc/ about 1000+ tax upfront.

Residual value is 20700 after 42 months.

So 42 month lease is $600. per month plus GST/PST?

Consider your "security" deposit already toast as they will "steal" it from you when you turn the car back in by nickel and diming you on the "excessive" wear.  Just consider it part of the total lease expense.

My two cents is to lease this vehicle, not buy it.  You will have a more relaxed ownership experience.     

[tortoise]

And if I were to buy I'd consider the states.

http://www.autotrader.com/fyc/vdp.jsp?ct=u&car_id=264565069&dealer_id=79780&car_year=2008&rdm=1261148454788&lastStartYear=1981&num_records=25&model=328I&systime=&make2=&highlightFirstMakeModel=&start_year=2008&engine=&keywordsrep=&keywordsfyc=&certified=&fuel=&body_code=0&awsp=false&search_type=used&distance=200&marketZipError=false&search_lang=en&showZipError=y&first_record=76&make=BMW&color=&keywords_display=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&seller_type=b&max_mileage=&style_flag=1&sort_type=priceDESC&address=05401&advanced=&end_year=2010&pager.offset=75&transmission=&doors=&max_price=&cardist=235&standard=false

http://www.autotrader.com/fyc/vdp.jsp?ct=u&car_id=263469398&dealer_id=79780&car_year=2008&rdm=1261148454788&lastStartYear=1981&num_records=25&model=328I&systime=&make2=&highlightFirstMakeModel=&start_year=2008&engine=&keywordsrep=&keywordsfyc=&certified=&fuel=&body_code=0&awsp=false&search_type=used&distance=200&marketZipError=false&search_lang=en&showZipError=y&first_record=76&make=BMW&color=&keywords_display=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&seller_type=b&max_mileage=&style_flag=1&sort_type=priceDESC&address=05401&advanced=&end_year=2010&pager.offset=75&transmission=&doors=&max_price=&cardist=235&standard=false

http://www.autotrader.com/fyc/vdp.jsp?ct=u&car_id=263749046&dealer_id=599121&car_year=2008&rdm=1261148454788&lastStartYear=1981&model=328I&num_records=25&systime=&make2=&highlightFirstMakeModel=&start_year=2008&keywordsfyc=&keywordsrep=&engine=&certified=&body_code=0&fuel=&awsp=false&search_type=used&distance=200&marketZipError=false&search_lang=en&showZipError=y&first_record=101&make=BMW&keywords_display=&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&seller_type=b&max_mileage=&style_flag=1&sort_type=priceDESC&address=05401&advanced=&end_year=2010&pager.offset=100&doors=&transmission=&max_price=&cardist=4&standard=false

[Julie]

About 600, with admin charge/security deposit/etc/ about 1000+ tax upfront.

Residual value is 20700 after 42 months.

So 42 month lease is $600. per month plus GST/PST?

Consider your "security" deposit already toast as they will "steal" it from you when you turn the car back in by nickel and diming you on the "excessive" wear.  Just consider it part of the total lease expense.

My two cents is to lease this vehicle, not buy it.  You will have a more relaxed ownership experience.     

By the way, the BMW residuals will be re-set again soon (you'll have to check exact date).  The lease/finance interest rates will likely go down again for the 2009s, but that may not offset the decrease in residual value if you are leasing (in other words, your monthly payments may go up a bit).

I considered 2009 coupes on the lot.  They have lower interest rates as well as an additional $3000 in factory-to-dealer rebate.  However, even with that, my monthlies would have been higher, even though I would be getting an older car, because the residual values are lower.  So, definitely not worth it.  Unless perhaps, you can get a significant reduction below invoice.  They may indeed be willing to move certain 2009s that way.

If you're financing - no difference.

If you're buying cash, even greater factory-to-dealer rebate.

[bmw8324]

The car is onsite. I will take a look tomorrow and will update afterwards.

BTW, $600 is tax included per month. But I found if I finance it, it will save me at least 2-3  thousands considering I may buyout after 42 months. Any advise? Thanks a lot!

[Julie]

The car is onsite. I will take a look tomorrow and will update afterwards.

BTW, $600 is tax included per month. But I found if I finance it, it will save me at least 2-3  thousands considering I may buyout after 42 months. Any advise? Thanks a lot!

I think it really depends what your priorities are and what are the current leasing/financing rates as well as factory-to-dealer rebates (depending on whether lease, finance, cash purchase) are

I personally lease (assuming the leasing rate is not high) for 1 main reason:  I don't like to own a car during its first years of greatest depreciation.  Because I had a relatively new car hit by a speeding driver once, and since then, I've suffered the depreciated value of the car through no fault of my own.  If I leased that car instead of financed it, I would have been able to return the car at the end of the lease and the depreciated value would have become the dealer's problem.

My understanding is that, if you put aside the difference in the monthlies between the leasing amount and the financing amount, you'll never lose money, and in fact could gain money by having a greater amount of your money earning interest.  Then, when lease is up, you simply buy out the car with that accumulated cash.  You will not lose any money because you will not have to finance the buyout.  If you don't like the car, you give it back and you only paid for its usage and don't have to worry about reselling it, etc.

[Julie]

Addendum:  It sounds like you may be saving a few thousand because of interest rate differences between financing vs. leasing used cars?

Usually, financing rates for used cars are much more attractive than leasing rates.  In fact, BMW is the only manufacturer I know that lets you lease pre-owned cars.

The leasing rate is higher because, with pre-owned, once someone is done with the car, it will be relatively old and with high mileage once they're done with it.  It won't be as attractive as a car with only 3 years and 60,000 km.

[bmw8324]

Thanks Julie for your thoughtful replies. Thanks everybody.

I went to see the car this morning. I forgot to take pictures of the car. The car arrived probably last night, the sale guy didn't even know if it was there. The condition of the car is a mixed bag. I didn't see many tiny paint chips or light scratches and the condition of the interior is quite nice,  but I did find a few significant cosmetic issues:
On the hood, there is a 160mm x 8mm scratch, not very deep, but the paint has peeled off.
On the front bumper, there is 12mm x 12mm round dent.
Under the driver side door, there are a few deep and long scratches, looks like curb scratches. But that part of the body is plastic, not metal.
The dealer promised to fix the issues. I think the only way they can do is repaint. Even though the body job may fix all the issues, but I tend to give up, unless they offer me a big discount.

Your advice is truly appreciated.

[ovr50]

Sounds like it may have been treated roughly. I think I would walk away unless the deal is very exceptional. I would worry that if the cosmetics are poor, maybe the mechanicals have been neglected also.

There are lots of BMWs to buy.

[johngenx]

Walk away.  That price is for a premium, well cared for car.  It is evident that this car is not such a thing.

[Julie]

Oh, that car wasn't well treated.

I would walk away.  As ovr said, lots of 2009s and 2010s left.

I have a few free invoice price reports left - I can run reports on any new models (2009 or 2010) either now or in the new year (when interest rates, but also residuals are expected to drop again slightly)

Let me know if you want me to run any of these reports for you, and give me an e-mail address via private message, and I'll send them to you.

By the way, BMW dealers very often stock well-equipped cars spec'd like you want (lumbar support, etc.), so lots of those on the lots - don't worry.  That's why my original order was a factory order - I didn't want as many options! 

[bmw8324]

Julie thank you so much for all the help. I will send you an email if I need those info. OK, I will walk away, as the cosmetic issues may indicate the car was not treated properly, which is a real concern to me.

Thank you all for your kind replies!

[TopGun]

But, but, but...it's from Budds BMW!  Surely that's worth an extra $5,000!

[JSCC]

Addendum:  It sounds like you may be saving a few thousand because of interest rate differences between financing vs. leasing used cars?

Usually, financing rates for used cars are much more attractive than leasing rates.  In fact, BMW is the only manufacturer I know that lets you lease pre-owned cars.

The leasing rate is higher because, with pre-owned, once someone is done with the car, it will be relatively old and with high mileage once they're done with it.  It won't be as attractive as a car with only 3 years and 60,000 km.

You can lease pre-owned MBs too. 

[JSCC]

After 3576 posts, Julie has transformed into an auto, financial advise expert.
We have witnessed the power of CTC! 

[Julie]

After 3576 posts, Julie has transformed into an auto, financial advise expert.
We have witnessed the power of CTC! 

Lol!, hey JSCC, how are you doing?  I see that you're a MB driver now!  How do you like your 2010 MB?