F & I guy at local dealer resisting MSD's...why?

pgaX5 · #1 11-25-2009, 02:16 AM

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?

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.

Finally, is there any sense in paying the tax upfront to reduce monthly payments?

Ordering the car tomorrow, so your input is greatly appreciated!

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ranchhand · #2 11-25-2009, 05:05 AM

How much I pay upfront depends on the ROI I am receiving on the money.

I dropped that dealer this time and went to the 80 miler.

Just to much of a hassle getting to a decent price and I buy a new one every 15 months or so.

genemish · #3 11-25-2009, 10:38 AM

Quote:

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?

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..

Quote:

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.

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??

pgaX5 · #4 11-25-2009, 04:58 PM

That is the price we pay for living in Central TX...no competition, so it is very hard to get a deal. Managed to get through the process in one piece and I didn't exactly get my head taken off (I guess I have to wait for delivery and signing of the papers for that!) and I have a very happy wife. That is something I can't put a price on.

genemish · #5 11-25-2009, 05:18 PM

Quote:

Originally Posted by pgaX5

That is the price we pay for living in Central TX...no competition, so it is very hard to get a deal. Managed to get through the process in one piece and I didn't exactly get my head taken off (I guess I have to wait for delivery and signing of the papers for that!) and I have a very happy wife. That is something I can't put a price on.

why not go out of state? a nice ride home

pgaX5 · #6 11-25-2009, 05:26 PM

Thought about it, but airfare, gas, hotel, etc...any savings get eaten up in the journey. Oh well.

genemish · #7 11-25-2009, 05:38 PM

did you get the MSDs as requested?

killcrap · #8 11-25-2009, 05:57 PM

pay the tax up front, you will get it all back when you file your returns if the price is up to $49,500, but i think its only for purchase, not lease vehicles.

pgaX5 · #9 11-25-2009, 11:50 PM

I am going to pay the tax up front. Up in the air about the MSD's now b/c after paying tax, I only can afford 3 MSD's. If I waive the Aquisition Fee and allow a slightly higher MF, my payments are actually lower than with 3 MSD's with a little less out of pocket.

MCrisis · #10 11-26-2009, 12:45 AM

Quote:

Originally Posted by killcrap

pay the tax up front, you will get it all back when you file your returns if the price is up to $49,500, but i think its only for purchase, not lease vehicles.

You don't "get it all back." It is a deduction, not a credit. It applies only to purchases. There is also an income-based phaseout.

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