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      10-31-2013, 10:40 PM   #1
///MD
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Oct/Nov Lease rates

Hey guys,

Trying to help my parents out on getting the best deal on a leased F15. Anyone know what kind of residuals and money factors we are looking at now? I happened across an amazing site one time that had all makes and models lease figures but i can't seem to find it anymore.

Also what kind of lease deals have you guys been able to get?


Thanks,
Pej
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      10-31-2013, 10:50 PM   #2
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New rates come out tomorrow or Monday.. October's expired today. That said, October's rates were (this for an xDrive35i, not sure if the 50i was any different):

10k/year 61% residual, .00125 MF
12K/year 60% residual, .00125 MF
15k/year 58% residual, .00125 MF

There was also a $1000 owner loyalty credit and I believe a 1st payment credit up to $500.

From what I've been told, BMW is being very aggressive trying to pump volume for year-end to boost market share. November and December programs should get pretty aggressive, but that may or may not hold true for the F15, since it's new and demand is supposedly very high. I'm guessing we'll see a Holiday credit, but again, it may or may not apply to the F15.

As far as deals, there is another thread on here you can look through. But people seem to be reporting everywhere from $500 over invoice to almost full MSRP..

http://www.xbimmers.com/forums/showthread.php?t=894479
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      11-01-2013, 09:44 AM   #3
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Looks like no additional money for November, same $1000 loyalty and residuals, but I think the money factor dropped to .00115. Waiting for my CA to confirm.
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      11-01-2013, 10:41 AM   #4
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My parents may be the only ones looking to get an sdrive. probably so i dont ask for their car to go up to the mountains anymore. I don't expect that would change the MF but perhaps a slight difference on the residual? thoughts?
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      11-01-2013, 01:11 PM   #5
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Residuals do sometimes vary by model variant, but in this case, the sDrive seems to have the same residual. Actually, they all do, including the diesel.
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      11-01-2013, 01:35 PM   #6
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Quote:
Originally Posted by chrisny View Post
Looks like no additional money for November, same $1000 loyalty and residuals, but I think the money factor dropped to .00115. Waiting for my CA to confirm.
Hey Chrisny did you get confirmation on the MF drop?
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      11-01-2013, 03:18 PM   #7
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Originally Posted by chrisny View Post
Looks like no additional money for November, same $1000 loyalty and residuals, but I think the money factor dropped to .00115. Waiting for my CA to confirm.
Hey Chrisny did you get confirmation on the MF drop?
Not yet, he was waiting for the programs to be officially announced to the dealerships. Haven't gotten a response yet. Maybe one if the CA's on here has some details in the meantime?
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      11-01-2013, 03:42 PM   #8
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How do you work with he dealer to get the 0.00125 or the 0.00115? According to my dealer the residual is dictated by BMW but the money factor is the lowest they can offer but BMW allows them to ad a mark up to that number up to a certain cap. For example, when I got my first quote I got way more than 0.00125 and when I told the CA about the 0.00125 he said they would not give that. I ended up getting to that number but not sure if I go back now and ask about the 0.00115 what he will say. Car was ordered and production week is next week.

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Not yet, he was waiting for the programs to be officially announced to the dealerships. Haven't gotten a response yet. Maybe one if the CA's on here has some details in the meantime?
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      11-01-2013, 04:04 PM   #9
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I've never heard of any negotiation on the money factor. If the lease is through BMW financial, they set the rate (MF). Negotiation with dealers is on the discount off MSRP, on which the lease is based. To my knowledge, there is no monkeying with the rate. Sounds like they're giving you less discount and using money factor to pretend they're giving you a bigger discount than the final payment indicates.

For example, if the dealer takes 3000 of MSRP when you order your car and quotes you a price based on that month's residual and MF, then the rates and residuals improve by the time the car comes in (if you've crossed into the next month), you get the benefit of the new program, payment goes down and that has zero impact on the dealership's profit, it's just BMW changing their lending rates.
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      11-01-2013, 04:37 PM   #10
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The Money Factor that BMW lists is the "base rate". Dealers can and do mark up that rate for additional profit. Dealers can also mark up the acquisition fee on the lease.

The "base rate" cannot be negotiated nor can the base acquisition fee. The residual values also cannot be negotiated.
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      11-01-2013, 05:20 PM   #11
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Quote:
Originally Posted by AEC
The Money Factor that BMW lists is the "base rate". Dealers can and do mark up that rate for additional profit. Dealers can also mark up the acquisition fee on the lease.

The "base rate" cannot be negotiated nor can the base acquisition fee. The residual values also cannot be negotiated.
Fair enough, but I've never had a dealer do so. Bottom line, shop the overall pricing and make sure you know all the details of every quote and know the base rate. At the end of the day, it's all in the lease agreement, so make sure you know where they've added profit and don't let them claim anything is set by the manufacturer that isn't. If they're marking up the money factor, make sure your discount is better than what everyone else is getting. In other words, it's not hard to find the base rate, don't let them hide profit in the money factor without making it up elsewhere.

So how does that work, they mark up the base rate and get a cut of the finance charges from BMW FS?
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      11-01-2013, 08:29 PM   #12
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On a lease through BMWFS I suspect that there isn't much room for increasing the MF for Tier 1 customers as the transaction is more or less transparent directly from BMWFS to the dealer. BMWFS would have to essentially be "complicit" in cutting a piece back to the dealer.

For leases (or purchases) outside of BMWFS, dealerships usually "buy" money at one rate from various banks and such, then they change a customer another (higher) rate - and pocket the difference as a rebate back to them at a certain point. This is especially the case for "credit challenged" customers.

BMW makes the majority of its profits on manufacturing cost margin (e.g. inflating the MSRP of the vehicle relative to their actual cost), especially with option packages, then offering very attractive lease rates to appeal to customers.
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      11-02-2013, 11:33 AM   #13
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Quote:
Originally Posted by chrisny View Post
So how does that work, they mark up the base rate and get a cut of the finance charges from BMW FS?
Yup
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