Price Increase: non-Porsche lease question
06-06-2018, 11:13 PM
#1
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Price Increase: non-Porsche lease question
Sorry for the non-Porsche related question but I could really use some knowledgeable advice (for the record, my other car is a 2008 997 S Cab).
The lease is up on my current Mercedes daily driver.
On February 3, I ordered a new BMW for lease. Written on the lease contract is "June 2018 delivery" (to coincide with my current lease end).
I've arranged a delivery date for June 21 but my salesperson called today to let me know that the monthly lease payment has gone up by $30 due to a 1% reduction in residual value from BMW Canada.
I looked over the lease contract and it does state "Prices are only valid for the month they are quoted in unless otherwise stated." I'm not sure whether the June delivery note would qualify in that regard.
It's not that I can't afford the extra $30 / month (almost $1200 over the course of the lease) but the principle bothers me - how can I agree to a car if the price isn't firm? And it's now too late for me to order a car from someone else in time for the end of my current lease. How binding is that offer to lease? I can't imagine that I could lower the amount I'm willing to pay and not lose my deposit!
I'm not sure I want to make an issue over this much money but any advice would be appreciated. I was thinking I might ask for $1200 off snow tires instead.
Thanks in advance.
The lease is up on my current Mercedes daily driver.
On February 3, I ordered a new BMW for lease. Written on the lease contract is "June 2018 delivery" (to coincide with my current lease end).
I've arranged a delivery date for June 21 but my salesperson called today to let me know that the monthly lease payment has gone up by $30 due to a 1% reduction in residual value from BMW Canada.
I looked over the lease contract and it does state "Prices are only valid for the month they are quoted in unless otherwise stated." I'm not sure whether the June delivery note would qualify in that regard.
It's not that I can't afford the extra $30 / month (almost $1200 over the course of the lease) but the principle bothers me - how can I agree to a car if the price isn't firm? And it's now too late for me to order a car from someone else in time for the end of my current lease. How binding is that offer to lease? I can't imagine that I could lower the amount I'm willing to pay and not lose my deposit!
I'm not sure I want to make an issue over this much money but any advice would be appreciated. I was thinking I might ask for $1200 off snow tires instead.
Thanks in advance.
06-07-2018, 02:00 AM
#2
Deals changing at the 11th hour really bother me as well, even if it’s not huge. However it sounds like it is a real change from BMW not just the dealer trying to profit at the last minute. What does the offer say about interest rate and residual? If they are changing the contract then you should be able to cancel it if you want and get your deposit back. Hopefully you didn’t sign a blank agreement to pay whatever they want per month.
What if they decided the residual was suddenly 10% and you needed to pay an extra $300 a month? If you want out tell them you can’t afford the $30. I’d love to here what they say to that.
What if they decided the residual was suddenly 10% and you needed to pay an extra $300 a month? If you want out tell them you can’t afford the $30. I’d love to here what they say to that.
06-07-2018, 08:53 AM
#4
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I would either try to get the snow tire discount ($1200 up front, after tax money is worth more than $1200 over the course of the lease) OR try another dealer to see if you can get a better deal.
06-07-2018, 10:18 AM
#5
you are negotiating the price of the car but since you are doing leasing, you are in the position of accepting whatever the interest rate & residual & factory credit (if applicable) on the month of delivery. This is the norm.
06-07-2018, 02:09 PM
#6
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Thanks for the advice.
I put up mild resistance (I didn't want to behave like an *** for a small amount of money when, in reality, it may have been beyond the dealer's control).
The salesperson called back to say that the dealership was adjusting the price to maintain the agreed monthly payment.
Thanks again.
I put up mild resistance (I didn't want to behave like an *** for a small amount of money when, in reality, it may have been beyond the dealer's control).
The salesperson called back to say that the dealership was adjusting the price to maintain the agreed monthly payment.
Thanks again.
06-07-2018, 02:12 PM
#7
what model is this new bmw ? There is probably factory credit applicable to your model. If so, you are entitled to this factory credit.
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06-07-2018, 03:13 PM
#9
I see $10K factory credit for June. The residual is extremely low though.
Congrats.
Congrats.