[galeface]

Hey all,

Received some rather exciting news today: my dealer has an M235i allocation available for September. But I need your input: financially, do you think September/October/November will bring some interesting deals? Correct me if I'm wrong, but I understand that I will be able to get deals from the month my car arrives?

Thanks for your help.

[cbbplanet]

Won't get much deals in Sept and definitely won't be on M235i. Demand too high for M235i. Dealers don't sell allocation at discount usually.

[galeface]

Originally Posted by cbbplanet

Won't get much deals in Sept and definitely won't be on M235i. Demand too high for M235i. Dealers don't sell allocation at discount usually.

How about those $1,000 incentives? Seems they don't have any in my area for this month but can I hope to get at least that?

[horsepower_and_hounds]

Do it!!!!!!

[dave235]

Allocations can be tough to come by. You will probably regret it if you don't

[hyperzulu]

Dunno about October incentives. November should usher in the holiday credit. Probably $1000.

Filling out a credit app locks you in. If you're ordering, don't bother filling one out this month. Just wait until September, so you're locked in for all of October as well.

[galeface]

Originally Posted by hyperzulu

Dunno about October incentives. November should usher in the holiday credit. Probably $1000.

Filling out a credit app locks you in. If you're ordering, don't bother filling one out this month. Just wait until September, so you're locked in for all of October as well.

Ha ok. What's the strategy behind that? Is there a 60 day window for incentives to roll into your credit application?

[hyperzulu]

Yes, exactly. On the east coast, the lock is good for sixty days. You are allowed to choose the program for any month that falls within that time frame before your car is signed for.

[galeface]

Originally Posted by hyperzulu

Yes, exactly. On the east coast, the lock is good for sixty days. You are allowed to choose the program for any month that falls within that time frame before your car is signed for.

Gotcha! That's awesome, I had no idea. First time leasing so I apologize if this is a stupid question but if I understand currently the process would go as follow:
1- Agree to purchase price and put into writing
2- Wait until September to sign actual lease
3- Wait forever
4- Take delivery

Now if those incentives magically appear AFTER you take delivery, how do you go along adding them to your lease?

Appreciate your help.

[hyperzulu]

For US delivery, you sign paperwork when you take possession of the car. You have the option at that time to use any sales program you qualified for through the credit lock.

After delivery is non existent. Once you sign, it's yours. Go home.

You want to agree to a price and no markups, make sure you know what fees dealer charges and get those in writing and negotiated if needed (acquisition fee, money factor, etc), money factor can change but just make sure there is no markup.

Then apply for credit.

Wait for car, test drive it to make sure it works LOL

Then sign and make sure all the numbers match up when you sign.

[galeface]

Originally Posted by hyperzulu

For US delivery, you sign paperwork when you take possession of the car. You have the option at that time to use any sales program you qualified for through the credit lock.

After delivery is non existent. Once you sign, it's yours. Go home.

You want to agree to a price and no markups, make sure you know what fees dealer charges and get those in writing and negotiated if needed (acquisition fee, money factor, etc), money factor can change but just make sure there is no markup.

Then apply for credit.

Wait for car, test drive it to make sure it works LOL

Then sign and make sure all the numbers match up when you sign.

That makes total sense. Thanks for clarifying this for me.

[galeface]

Originally Posted by hyperzulu

For US delivery, you sign paperwork when you take possession of the car. You have the option at that time to use any sales program you qualified for through the credit lock.

After delivery is non existent. Once you sign, it's yours. Go home.

You want to agree to a price and no markups, make sure you know what fees dealer charges and get those in writing and negotiated if needed (acquisition fee, money factor, etc), money factor can change but just make sure there is no markup.

Then apply for credit.

Wait for car, test drive it to make sure it works LOL

Then sign and make sure all the numbers match up when you sign.

Just thought of this and was wondering: in the even the residual drops before I take delivery, could that also be adjusted?

[hyperzulu]

Originally Posted by galeface

Just thought of this and was wondering: in the even the residual drops before I take delivery, could that also be adjusted?

By drop you mean lower? You would want to keep the program with the higher residual value, usually.

If you order in August with rates at 58% residual/ 0.0013 money factor and no incentives, you can lock in that rate even if you pick up your car in September. But if in September the rates go to 65% residual/ 0.00133 money factor and no incentives, you obviously want September rates, as the bump in money factor is heavily outweighed by the bump in residual value.

You cannot mix and match though- august mf with September rv.

With anything though it just pays to know beforehand what everything is fully worked out. Know what your monthly should be based on all figures for every given month and tell your CA which rate you choose when you go to sign. They will apply those rates. The monthly should not deviate much from what you calculate. A change in $30 monthly equates to about a difference of $1000 somewhere, just for perspective.

[galeface]

Originally Posted by hyperzulu

By drop you mean lower? You would want to keep the program with the higher residual value, usually.

If you order in August with rates at 58% residual/ 0.0013 money factor and no incentives, you can lock in that rate even if you pick up your car in September. But if in September the rates go to 65% residual/ 0.00133 money factor and no incentives, you obviously want September rates, as the bump in money factor is heavily outweighed by the bump in residual value.

You cannot mix and match though- august mf with September rv.

With anything though it just pays to know beforehand what everything is fully worked out. Know what your monthly should be based on all figures for every given month and tell your CA which rate you choose when you go to sign. They will apply those rates. The monthly should not deviate much from what you calculate. A change in $30 monthly equates to about a difference of $1000 somewhere, just for perspective.

Gotcha. Yes, I actually meant residual potentially going up (not sure if that is common) but glad I can pick and choose. I have tentitavley agreed on an 2015 M235i at $2k off MSRP. For South Florida, I think it doesn't get better than that. Since this is for a September allocation, I am going to do my best to sign the lease in September, so I can play the September vs. October rates. I am hoping that he won't try to sneak some fat profits in the MF once we go over lease details. Will keep everyone posted.

[hyperzulu]

LOL you cannot sign the lease in September. You fill out a credit application. Actually surprised they didn't ask you for this already. I guess with this car it doesn't matter. Your credit falls through and they sell to the next guy.

So yeah, credit app next month so you can choose between September and October. Good luck.

[galeface]

Originally Posted by hyperzulu

LOL you cannot sign the lease in September. You fill out a credit application. Actually surprised they didn't ask you for this already. I guess with this car it doesn't matter. Your credit falls through and they sell to the next guy.

So yeah, credit app next month so you can choose between September and October. Good luck.

LOL go easy on me, I have no idea what I'm talking about when it comes to leasing, always bought my cars cash until now!

So if my CA asks me to fill out a credit application, it's in my best interest to try and convince him to wait a couple weeks? Wonder how he'll feel about it.

Probably one of the reasons he didn't ask me yet is because -like you said- demand is high and I didn't request anything out of the ordinary (MG, Black Dakota, Premium sound) and it would take a couple hours to find someone else.

Appreciate all of your help, you've been awesome.

[asm777]

No issues signing credit app early to lock in rates. Filled out app in April and locked in rates. Got additional incentive added which was announced in May. Nothing else changed and took delivery in July with April rates + May incentive. If rates had been better in July (or June or May), would have gotten whichever was best between credit app date and actual lease execution date.

Edit: I guess things are different on east coast? Read a few posts up that said that rate is only good for 60 days... I wonder how that works if car comes in 62 days after credit app lock?