Some lease questions about MF. BMW 4 Series.

dons4ride

2014 428I X - in dealer stock

Doing a one pay lease 36 months 30K miles

Dealer told me that if my credit score was above 639 the MF would be .00140, if below 639 it would be .00160

My credit score is under 639 which the dealer claims qualifies me for a MF of .00160, not the normal .00130 that I see on line.

Because I'm paying the one pay / entire lease amount upfront is there any justification for the dealer to charge me the .00160 or are they doing this to increase their profit margin?

Is the MF determined by BMW or by the dealership? As additional information I have a X1 that I'm trading in which was financed by BMW for 72 months, I have paid that off in 12 months demonstrating an excellent payment record with BMW

Lastly when I purchased my X1 if I had used BMW financing previously (which I hadn't) I would be entitled to $750 off directly from BMW. Does anyone know if this prgram still is in effect and if I would qualify doing a one payment lease.

Thanks

kyfdx

1) The base rate for Tier 1 credit is .00130.. (675 and above)

2) 640-674 base is .00150. 601-639 base is .00170

As far as I know, there is no discount for doing a OnePay lease from these rates. All of your dealer's numbers are actually slightly less than what I have, by a little bit (.00010). BMWFS sets the base rate, but your dealer can mark it up for extra profit. It doesn't appear that your dealer is doing that. I am a little surprised that as a current customer, BMWFS doesn't at least bump you up to the next tier, but I don't have much experience with that part of it.

I don't think there are any loyalty incentives, right now, though.

Since there is no financial advantage, I don't think I would do a OnePay lease. You might look into doing Multiple Security Deposits instead, to lower the money factor.

konacoug

First off check your credit score, you can use credit sesame for free and it will give you your monthly Experian score. You don't mention any details in your lease, regarding the MSRP, selling price, invoice, what incentives you are getting, and any other fees. The 2015's are in the pipeline, so you should get a selling price around invoice. If not, you might want to check with other dealers. You can end up paying thousands more on a lease, if you don't know all of the particulars.

Also, as Kyfdx rec use MSD's to lower your money factor.