[AGS]

Originally Posted by lgallo9980

I have a 2008 M3 with 48k miles on it

Dealer told me they will give me $42,300 for my car. I was going to trade my car in, I still have about $18,300 left to pay on it. I was going to roll the money over into the lease for a lower payment. Seems like they took money off the M5 and rolled it into the trade.

2013 M5 Im looking is $102495.00 sticker price

36 month lease
10k miles a year
Buy out will be $52323.45 at the end.
Monthly Payment will be $887.81
taxes on payment $62.15
Total monthly payment with taxes $949.96

What do you guys think ?

A couple of recommendations:

1. Never let a dealer "bundle" a trade-in with a new purchase, that's how they take advantage. Negotiate the two deals separately. You've got the trade-in offer, so compare that to the market price of your car. The dealer will be below market, but that can still work if the tax benefit of trading in gets you at or above market price. Based on the info you provided, it seems like the dealer is charging you at or near invoice for the M5 - that's complete BS. There are tons of M5s sitting on dealer lots right now. You should not be paying more than $3,000 over invoice, and you can likely do better than that. With the amount you're rolling into the lease you should be near or below $800 per month with taxes.

2. On the new M5, use edmunds.com or other sources to calculate the invoice price of the car you're interested in. Then negotiate a fair profit for the dealer over invoice. As I said before, if you're willing to take a car out of dealer stock there are enough M5s sitting around you can get one for a few thousand over invoice or better.

3. Once you have both deals negotiated, you can have the dealer apply your trade-in as a down payment on the new car. However, as smashhell indicated, it's usually not a good idea to put money down on a lease. If the car is ever totaled in a wreck, you could likely lose that money. I would only do that if the dealer is giving you a really fantastic offer on the trade-in (i.e., at or above market so that with the tax benefit of a trade-in you're getting a screaming good deal).