Audi vs BMW's program re: pricing
#1
Audi vs BMW's program re: pricing
Hey folks. I am looking for feedback on the price structuring of a lease through the AED program. As a multiple past leaser through BMW's ED program, I've found this to be where some of the real savings are. (in addition to having your own rental car while on vacation)
To explain for those who might not be aware, just like the US has an MSRP and Inv. structure, BMW ED has an MSRP and Inv. structure. I've found that the US Inv. price is essentially the same as ED MSRP.
This is where your initial savings (strictly on the car) comes in. To purchase, you basically work up off of ED Inv. just like you do when buying a car in the US ultimately arriving at a purchase price under US Inv. On my last 5 series, I saved about $4K.
Leasing through ED is another win. BMW allows you to use their US lease program money factors (plus an additional mark-up of .0003?) off your actual negotiated ED purchase price but the residual value (value of car at term of lease / think depreciation) is based upon US MSRP !!!!! thus resulting in smaller % of the car you've had to finance over the term of the lease thus resulting in a much smaller lease payment.
And they allow you to lock in the money factor even though you're likely not going to get the car for another 3 months!! So what you do is wait until its a model year-end or they have a slow moving car both of which result in aggressive (ie low) money factors and sign the contract. That low MF plus the low neg. purchase price plus using the US MSRP for residual can result in some ridiculously low lease payments. I saved about $150 per month on my current car over a comparable US based lease!!!
They do this because at lease-end, everyone's auto must have an equivalent market value. They cannot have Mr Smith with a buyout value of $32K while his neighbor with the same car purchased through ED has a buy-out of $28K - this would skew the used car market.
In the end, don't think twice about doing an ED. Its and incredible way to take a European vacation and just might be the tipping point to get you there. Yeah, you can essentially eat your purchase savings with the high cost of a European vacation but if you were going there anyway, then you'll definitely be ahead of the game. Try renting a car in the EU. The fact there is no such things as a $30 per day rental plus the current exchange rate and you'll save big time driving your own car. And don't forget the depreciation thing. If you get your car at $2-3K below Inv. then you're ahead of the game on deprecation relative to your neighbor who purchased the same car in the states.
I am looking for a few things as people test the AED waters:
- do they allow leasing through the AED ?
- do they use a similar formula? (MF based on ED purchase price but residual of US MSRP)
- Later
To explain for those who might not be aware, just like the US has an MSRP and Inv. structure, BMW ED has an MSRP and Inv. structure. I've found that the US Inv. price is essentially the same as ED MSRP.
This is where your initial savings (strictly on the car) comes in. To purchase, you basically work up off of ED Inv. just like you do when buying a car in the US ultimately arriving at a purchase price under US Inv. On my last 5 series, I saved about $4K.
Leasing through ED is another win. BMW allows you to use their US lease program money factors (plus an additional mark-up of .0003?) off your actual negotiated ED purchase price but the residual value (value of car at term of lease / think depreciation) is based upon US MSRP !!!!! thus resulting in smaller % of the car you've had to finance over the term of the lease thus resulting in a much smaller lease payment.
And they allow you to lock in the money factor even though you're likely not going to get the car for another 3 months!! So what you do is wait until its a model year-end or they have a slow moving car both of which result in aggressive (ie low) money factors and sign the contract. That low MF plus the low neg. purchase price plus using the US MSRP for residual can result in some ridiculously low lease payments. I saved about $150 per month on my current car over a comparable US based lease!!!
They do this because at lease-end, everyone's auto must have an equivalent market value. They cannot have Mr Smith with a buyout value of $32K while his neighbor with the same car purchased through ED has a buy-out of $28K - this would skew the used car market.
In the end, don't think twice about doing an ED. Its and incredible way to take a European vacation and just might be the tipping point to get you there. Yeah, you can essentially eat your purchase savings with the high cost of a European vacation but if you were going there anyway, then you'll definitely be ahead of the game. Try renting a car in the EU. The fact there is no such things as a $30 per day rental plus the current exchange rate and you'll save big time driving your own car. And don't forget the depreciation thing. If you get your car at $2-3K below Inv. then you're ahead of the game on deprecation relative to your neighbor who purchased the same car in the states.
I am looking for a few things as people test the AED waters:
- do they allow leasing through the AED ?
- do they use a similar formula? (MF based on ED purchase price but residual of US MSRP)
- Later
#4
Re: Audi vs BMW's program re: pricing
Thanks for posting the comments - I think I agree though I have not been through anyone's program yet. I haven't even rented a car in Europe before so for my upcoming trip I am trying to evaluate differences between renting and ED. If you rent a car in Germany, or France, what would be a realistic cost per day for a car like an Audi A4?
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#8
Re: Audi vs BMW's program re: pricing
Actually the Volvo ED program looks even more attractive than the Audi or BMW program. Two free round-trip air tickets and a hotel room for a night in addition to reduced price.
If you can just find a car you like that isn't as discounted here in the U.S. as it is in the ED program!
Maybe it is just worth going to visit Sweden and Copenhagen without picking up a vehicle!
If you can just find a car you like that isn't as discounted here in the U.S. as it is in the ED program!
Maybe it is just worth going to visit Sweden and Copenhagen without picking up a vehicle!
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