[tgF90]

Is your total out of pocket at signing the holiday $2500? If so, I am not sure where the $963 cap cost reduction came from. The out of pocket should include the first month, security deposit (if there is one), doc fees, acqusition fee. Those numbers would take the total out of pocket above $3k (including holiday credit). The numbers don't quite add up. You have to make sure the selling price is before the holiday credit is added. If not, then the true selling price for them is $53500, with a cap cost of $51000 after the holiday credit is added. Also, I don't know what your sales tax is so I used NJ tax of 7%. Remember, the holiday credit is essentially found money given to the dealers by BMW, so it doesn't affect the dealer's bottom line. In theory, you could negotiate a price below invoice after the holiday credit is applied. Unfortunately the holiday credit ends Jan. 4th I think. If I were you, I would strictly negotiate a selling price first, without the credit. $1k over invoice is a fair number. Not sure what the invoice would be on your car. After the selling price is negotiated, you can do one of 2 things: Use the entire $2500 holiday credit as a cap cost reduction that you do not have to pay (because BMW gives it to you and the dealer) and then pay the registration, first month, security deposit, and acqusition fee out of pocket. Or you can negotiate the price and use the $2500 holiday credit to cover all of the fees, etc. There would be little to no cap reduction below the negotiated price and your monthly payment would be higher, but you would put zero dollars out of pocket.

Here are 2 calculations:
1. MSRP of $54400. Selling price of $51000. Cap reduction of $2500 (holiday credit)--based on 7% sales tax---$640/month
2. MSRP of $54000. Selling price of $51000. No cap reduction (the holiday credit of $2500 goes towards first payment and other fees)---$720/month

It is really a shell game and it sounds as if the dealer is trying to move the $2500 credit into his pockets and not yours. Good luck!