Want ED Invoice on '16 M6! How?

[M6-Coupe]

Originally Posted by djsaad1

This is for a B6

US MSRP was about $138000

ED invoice is $121230

At $123230 I am getting a monthly payment of $1721 without tax. Which would be about $1932 with tax.

If I use 2k above U.S invoice with the U.S. money factor I am at around the same payment about $20 more a month. There isn't much of a difference at all.

Thanks for sharing the numbers. As far as ED, there is another trick here. The trick is the MSRP. If you ED your car the base MSRP is ED MSRP and residual is based on that MSRP, but if you get US price, then residual is based on US MSRP. In order to lower your payment, you have to make the gap between sales price and residual as low as possible. Let me give you an example.

A 138K car (US MSRP) is priced at ~130K (ED MSRP) and ~121K (ED invoice)
You lease this car at 2k above ED invoice which is 123k. With 56% residual, the residual is $72.8k (130,000 * 0.56). Keep in mind, in case of ED, the residual is calculated based on ED MSRP. So the depreciation fee is 50.2k (123k-72.8k). You also have to pay rent fee at ED MF (0.0016) which is $11.3k [36 *0.0016*(123k+72.8k)]. Since you live is Texas, you have to pay 6.5% tax on whole sales price which is ~$8k. Adding those numbers your total lease payment is $69.5k or ~$1930 per month.

Now if you find the same car (138K) in US and negotiate to get the same sales price (123k) then:
The residual is $77.3k (138,000 * 0.56). This time residual is based on US MSRP no matter how much discount you get. The depreciation fee in this case is $45.7k (123k-77.3k).The rent fee at US MF (0.0013) is $9.4k [36*0.0013*(123k+77.3k)]. The same tax will be applied (~$8k) and your total lease payment would be ~$63k or ~$1750 per month. This means lowering your payment about ~180 per month for total of $6500!

You might not be able to get this discount on B6, but for sure you can get 15k off MSRP on a 138k M6 GC.
If you need to know about the formula that dealers use, you can see this thread:
http://f80.bimmerpost.com/forums/sho....php?t=1084623
I have posted the formula with an example over there…

[dsad1]

Originally Posted by M6-Coupe

Thanks for sharing the numbers. As far as ED, there is another trick here. The trick is the MSRP. If you ED your car the base MSRP is ED MSRP and residual is based on that MSRP, but if you get US price, then residual is based on US MSRP. In order to lower your payment, you have to make the gap between sales price and residual as low as possible. Let me give you an example.

A 138K car (US MSRP) is priced at ~130K (ED MSRP) and ~121K (ED invoice)
You lease this car at 2k above ED invoice which is 123k. With 56% residual, the residual is $72.8k (130,000 * 0.56). Keep in mind, in case of ED, the residual is calculated based on ED MSRP. So the depreciation fee is 50.2k (123k-72.8k). You also have to pay rent fee at ED MF (0.0016) which is $11.3k [36 *0.0016*(123k+72.8k)]. Since you live is Texas, you have to pay 6.5% tax on whole sales price which is ~$8k. Adding those numbers your total lease payment is $69.5k or ~$1930 per month.

Now if you find the same car (138K) in US and negotiate to get the same sales price (123k) then:
The residual is $77.3k (138,000 * 0.56). This time residual is based on US MSRP no matter how much discount you get. The depreciation fee in this case is $45.7k (123k-77.3k).The rent fee at US MF (0.0013) is $9.4k [36*0.0013*(123k+77.3k)]. The same tax will be applied (~$8k) and your total lease payment would be ~$63k or ~$1750 per month. This means lowering your payment about ~180 per month for total of $6500!

You might not be able to get this discount on B6, but for sure you can get 15k off MSRP on a 138k M6 GC.
If you need to know about the formula that dealers use, you can see this thread:
http://f80.bimmerpost.com/forums/sho....php?t=1084623
I have posted the formula with an example over there…

The link isn't working for me. But why are dealers giving $15k off cars if invoice is only about $10k off. How does the dealer profit?


Edit---I found the thread and towards the beginning posters were saying residual on a ED car is based on U.S. MSRP. If that is true that would change a lot in my calculations. But that doesn't seem right.

[M6-Coupe]

Originally Posted by djsaad1

The link isn't working for me. But why are dealers giving $15k off cars if invoice is only about $10k off. How does the dealer profit?

Check the link again...
They make money on other cars instead. M6 is a high dollar car and is hard for them to get rid of this car so they offer those great deals...
There are many members here (including me) got 15-25k off MSRP
You may be interested to read this thread:
http://www.6post.com/forums/showthre...1104217&page=2
I had a long discussion with my friend doug_999 over there...

[M6-Coupe]

Originally Posted by djsaad1

Edit---I found the thread and towards the beginning posters were saying residual on a ED car is based on U.S. MSRP. If that is true that would change a lot in my calculations. But that doesn't seem right.

No it's not correct. The residual on ED is based on ED MSRP. The residual on US is based on US MSRP

[dsad1]

Originally Posted by M6-Coupe

No it's not correct. The residual on ED is based on ED MSRP. The residual on US is based on US MSRP

This is saying U.S. msrp as well.

http://www.bimmerfest.com/wiki/index.php/ED_Summary

[mjr24]

Originally Posted by M6-Coupe

Check the link again...
They make money on other cars instead. M6 is a high dollar car and is hard for them to get rid of this car so they offer those great deals...
There are many members here (including me) got 15-25k off MSRP
You may be interested to read this thread:
http://www.6post.com/forums/showthre...1104217&page=2
I had a long discussion with my friend doug_999 over there...

This just isn't true, not sure where you get that impression from. Many dealers get cash back or incentives or kickbacks if they sell a high volume of cars. Also, it reserves their right to offer these types of cars in the future. If they allocate 10 M6's to a dealer and the dealer can't sell any.....best believe that BMW won't be allocating anywhere near that many to them next time.

Why would a car manufacturer sell the model if they only made money from other models?

You also have to understand $25k off a car with $20k of options isn't the same as $25k off a car with no options. They still are making money off that $145k car they sell for $120k.

[M6-Coupe]

Originally Posted by mjr24

This just isn't true, not sure where you get that impression from. Many dealers get cash back or incentives or kickbacks if they sell a high volume of cars. Also, it reserves their right to offer these types of cars in the future. If they allocate 10 M6's to a dealer and the dealer can't sell any.....best believe that BMW won't be allocating anywhere near that many to them next time.

Why would a car manufacturer sell the model if they only made money from other models?

You also have to understand $25k off a car with $20k of options isn't the same as $25k off a car with no options. They still are making money off that $145k car they sell for $120k.

Back in 2013 the base M6 Coupe was 110K. My car has 10K option for 120K MSRP. I got my car 100K, 10K off for options and 10K off for base... so??

[M6-Coupe]

Originally Posted by mjr24

This just isn't true, not sure where you get that impression from. Many dealers get cash back or incentives or kickbacks if they sell a high volume of cars. Also, it reserves their right to offer these types of cars in the future. If they allocate 10 M6's to a dealer and the dealer can't sell any.....best believe that BMW won't be allocating anywhere near that many to them next time.

Why would a car manufacturer sell the model if they only made money from other models?

You also have to understand $25k off a car with $20k of options isn't the same as $25k off a car with no options. They still are making money off that $145k car they sell for $120k.

Who said they don't make money? Have you ever heard about ED invoice? that's the price almost 14% below the MSRP and there are lots of deal at ED invoice and they still make money... They also mark up some cars to make more money... it's a total package as BMW automaker...I said they make money on other cars instead, but still they make some money on even 20K off M6.
Also, They need to have high dollar cars to compete with their competitors such as MB, Audi, Porsche,... I'm wondering why you don't know this simple rule
why do you think BMW introduced 6er GC? 6er was always Coupe or Convertible since 1976 when the first 6 series (E24) came out but after about 36 years they introduced 6er GC because Audi introduced A7/S7/RS7 and MB had CLS...BMW is not gonna lose the market of this size/class car.

[M6-Coupe]

Originally Posted by djsaad1

This is saying U.S. msrp as well.

http://www.bimmerfest.com/wiki/index.php/ED_Summary

I see.
I also checked with GOLFFRR who works for dealer.
He confirmed it's based on US MSRP!
So basically your monthly payment must be lower... around 1800

[dsad1]

Originally Posted by M6-Coupe

I see.
I also checked with GOLFFRR who works for dealer.
He confirmed it's based on US MSRP!
So basically your monthly payment must be lower... around 1800

Yeah, it's about $100 less a month.

I am going with a different strategy though, I am using the pull ahead program to get my wife an X5. I am going to wait a couple months to see if the residual changes at all on the b6, it doesn't feel like it will get worse than what it is.

I also thought that the B6 has a frozen alpina blue option, I was a little disappointed when I found out it doesn't. I have a frozen bronze car now and got a little addicted to the frozen colors.

[doug_999]

Originally Posted by djsaad1

I am going with a different strategy though, I am using the pull ahead program to get my wife an X5. I am going to wait a couple months to see if the residual changes at all on the b6, it doesn't feel like it will get worse than what it is.

I don't think 6-series residuals are going to return to where they were. The car just has not held up well in terms of residual and BMW, as much as they like new sales, probably hates losing money even more.

I do know that the B6 had HORRIFIC residuals originally and they changed it to match the rest of the lineup (which used to have all different residuals this time last year - with the 640xi GC having the highest and the 650 coupe (xi and I) having the lowest. About 5-6% separated those two models (640xi GC vs. 650 coupe).

edit - on 36 month leases, for the 2015 models, for last April, all models of the 6-series were at 51% for 3 years and 15K (add 2% for 12K and 3% for 10K) - so 51/53/55 was the initial 2015 percentages in April of 2015. They are currently at 53% now on the 2015s so up 2% from the initial release a year ago

[POBA]

Originally Posted by M6-Coupe

I see.
I also checked with GOLFFRR who works for dealer.
He confirmed it's based on US MSRP!
So basically your monthly payment must be lower... around 1800

Sorry if it has been noted before, how do you calculate ED MSRP (not ED invoice)? Thank you.....

[M6-Coupe]

Originally Posted by doug_999

I don't think 6-series residuals are going to return to where they were. The car just has not held up well in terms of residual and BMW, as much as they like new sales, probably hates losing money even more.

I do know that the B6 had HORRIFIC residuals originally and they changed it to match the rest of the lineup (which used to have all different residuals this time last year - with the 640xi GC having the highest and the 650 coupe (xi and I) having the lowest. About 5-6% separated those two models (640xi GC vs. 650 coupe).

Agree with you on this. When I got my first 650i (September 2011) the residual was 60% or 61% (I'm not sure).
Today, if you look at the BMWUSA shopping tool, for a 94.450 650i, the residual after 3 years /10k is 52,892 which is 56% ... Looks like all the 6er (640,650) are the same..

[dsad1]

Originally Posted by M6-Coupe

Agree with you on this. When I got my first 650i (September 2011) the residual was 60% or 61% (I'm not sure).
Today, if you look at the BMWUSA shopping tool, for a 94.450 650i, the residual after 3 years /10k is 52,892 which is 56% ... Looks like all the 6er (640,650) are the same..

Knowing the 650 and 640 are only a percent higher than the alpina or m6 does make me feel better.

I am not saying 55% isn't realistic or even a little inflated. But I guess I am just used to overly inflated residuals from BMW.

[doug_999]

Originally Posted by djsaad1

Knowing the 650 and 640 are only a percent higher than the alpina or m6 does make me feel better.

I am not saying 55% isn't realistic or even a little inflated. But I guess I am just used to overly inflated residuals from BMW.

Agreed - it is nice. My dealer recently took a lease turn-in on a B7 with like 20,000 miles. I think they were able to pick up the car (2 years old) for something like $54K. Original price was $125K.

[dsad1]

Well...it looks like I will be waiting either way. For a frozen alpina blue b6 the very earliest production slot I could get is the third week of July. So best case scenario I have an ED around the holiday season. On the bright side, maybe they will have some cash incentives around that time on the 6 series.