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Originally Posted by pgaX5
I have around $6000 I was thinking about putting towards MSD's on a 2010 X5 30 for my wife. When I called my local dealer's F&I guy, he said he "hadn't done MSD's in 4 years" and that rather than trying to lower my payment that way, maybe I should "get a less expensive car.". Odd answer, I thought. When I pressed, he said it could be done,but that it wasn't equitable. Any idea why he would say that when everyone raves about the program?
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What a jerk.. Perhaps he shouldn't be a "F&I" guy. I'd actually go down to the stearleship and educate him on basic math.
I am assuming 7 x $850 MSDs ($5,950). Assuming rough #s of 60k MSRP with 60% residual after 3 years, each MSD will save you
(MSRS + RESIDUAL) * 0.00007 = (60,000 + 36,000) * 0.00007 = $6.72
+ TAX.. so roughly $7..
7MSDs, there's your $50/mo, which is $1,800 over 3 year lease.. which is roughly 9% annual return on your 6k..
see what the F&I guy says then..
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Also, he seemed really irritated when I mentioned the Buy Rate as my starting point for negotiating. He grudgingly agreed to mark up the rate by only half the full allowable markup (.0002)...called another dealer 80 miles away & they said the same thing...that the F&I guy has to make money somehow. That's fine, but it seems like everyone posting their lease deal is getting the Buy Rate. Is that just a SoCal thing? Seems like in TX, we don't get much leeway...had to claw for $1000 over invoice.
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personally, i think that's ridiculous. 0.0002 is $20/mo, which is $720 over 3 years... so the F&I guy makes $720 MINIMUM on every deal to submit your application and spend 30 mins with you signing papers??
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2011 X5 3.5D - Platinum Gray / Black Leather / Dark Bamboo, Sports w/ 20's, Adaptive Drive, Comfort Seats, Cold Weather, Premium, Sound, Rear Climate, Technology, Comfort Access, Auto High Beams, Heated Rear Seats, Running Boards, Roof Rails w/Rola Crossbars, Space-saver Tire, Moonroof visor, P/Q Brake Pads, Cargo Mat, Weathertech All Weather Mats, Draw-Tite Hitch.
2010 X5 4.8i - Lemon'd 12/2010.
2006 X5 4.4i - Sold 11/2009.
2004 X5 4.4i - Stolen 8/2005. R.I.P.
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