BMW 5-Series Lease Questions

jvos

I just completed a 36mo x 45k mile lease.
2006 530XI
AT, Premium, Cold Weather and Satelite Radio
Selling price was $52,160.
$700/mo and $2300 out-the-door.
BMWFS also ate the last 3 months on the 325Xi I turned in.
Motorwerks in Barrington

srm203

I am being offered the following lease deal and wanted to see if you think it is fair:
530 xi
Premium package
Cold weather
Navigation system
Auto

MSRP= $55320
Actual Paid = $53120
Residual= $34298
12k miles/year
36 month lease

Lease Pmt= $748/mo

This is a no money down lease and includes taxes. How does this look?

jvos

Seems good to me. I'm not sure where you live, so I don't know the tax rate.

When you say "no money down", I assume you mean to cap cost. There would still be first payment and license fees required at lease signing, right? In other words, about $1000 out of pocket.

mjoshb

I am looking to lease a BMW for the first time.
I am being offered for a BMW 525i 2006 15k/3 yr(Premium pkg, AT, satellite radio) :
MSRP 48,440
Cost 46,940 (-1500)
MF .002
Residual 60%
Inception cost : 3467.68 (first month payment + $825 acquisition fee + tax)
Monthly payment - $648.57 + tax ($701)

Is this a fair deal ? Is there anything I should negotiate ?

Thanks so much,
Josh

kyfdx

Is there anything I should negotiate ?

Off the top of my head..

1) At least $500 lower on the selling price (more if you can)

2) Insist on the base money factor (.0016)

3) Insist on base acquisition fee ($625)

1) & 2) will save about $48/mo. on the payment, including tax...

shashmishra

Hi folks
Thanks for your excellent feedback on previous posts on BMW leasing.
Please would you help me.
I had negotiated an adjusted cap cost on a new 2006 BMW 525i (AT, premium
package, comfort access) to $45,470 at a NC dealership. The sales rep and I
shook hands and the sales manager accepted the price too. During the following
week, I informed the sales rep that I would be leasing. When I returned a week
later, the salesperson had informed me that he had forgotton to add up the cost
of the premium package in the original quote and insisted that the new quote was
$46,191.00
Consumer reports recommends 'get up and leave if you get a firm price that a
sales manager rejects later'.
Not sure what to do here. The sales rep was a nice man.
Would appreciate your feed back greatly.
Thanks
Shash Mishra

PS the new deal offered is as follows :
MSRP:$47,470
Unadjusted cap : $46,191.00
Adjusted Cap : $47,498.00 ( includes documentary fee, tag, title, acquisition
fee as outlined below)
Documentary fee: $399.00
Tax:3% ( rolled into monthly lease price )
Tag,Title: $69.00
Acquisition Fee:$825.00
Residual(60%):$28,482.00
Money Factor : 0.00215
Lease Term:36 months
Mileage : 18,000 miles ( 15k miles plus an extra 3k miles requested by me at 15
cents per additional mile)
Security deposit :$0
Down payment :$0
Total Monthly lease payment = $691.58(for 15k miles) + $37.50(for 3k miles) +
tax = $742.77

Thanks again
shash mishra

kyfdx

Here are my concerns:
1) You agreed on a price, and now they won't honor it.. You don't mention the MSRP, but from looking at the residual, I assume it is $47,470, and that you negotiated a $2000 discount.. This is pretty straight-forward.. Unless they are now telling you that the MSRP is actually higher (and since the residual is the same, it is pretty evident that it isn't), then the explanation for raising the selling price sounds like just a lot of BS.. I have to agree with Consumer Reports on this one.. $721 too much... $22/mo.

2) Adjusted Cap Cost.. The base acquisition fee is $625.. they have marked up the fee by $200... Document fee of $399... pure padding.. The $69 for title/license should cover just about everything.. Maybe another $50 maximum on top of that.. I did a lease deal recently, and my total license/title/document fees came to $114. $599 too much...$18/mo.

3) Money factor of .00215.. The base money factor is .0016... Your dealer is marking it up the maximum of .0004 (are you noticing a trend?).. The money factor is also increased by .00015, because you aren't making a security deposit (it is a better deal to make the deposit). Base MF without security deposit is .00175.. Marked up factor ... $32/mo..

4) Extra miles.. No problem here.. but.. Are you sure you will need all of those extra miles? You can buy exactly what you think you will need.. No reason to make it 18K/yr exactly.. If you think you'll need 17K, or any number inbetween, you can buy exactly what you want.. Also, BMWFS will allow you.. up until 9 months before your lease term is up... to buy extra miles at $0.16/ea. And, you can amortize it over your remaining payments.. Even though the miles are slightly more ($0.16 vs. $0.15), not buying more than you need will usually put you ahead.. If you wait one year and find you are only driving 16.5K/year, then you can add 4500 miles to the lease, and have it amortized over your remaining 24 payments...

I'm assuming that your only payment due at signing is the first months payment.. That is good.. the only thing I would change, is that I would make a security deposit to get the lowest possible money factor..

So.. to sum up.. It should look like this:

$47470 MSRP
$45470 Selling price (this was a good deal.. and fair to both sides)
$46178 Cap cost (selling price + $625 acq.fee + $69 title fee + tax on acq.fee)
3yr/45K lease
Residual 60% of MSRP
Money factor .0016
Payment = $611.01 + $37.50 (extra mileage) + $38.91 tax (3%) = $687.42
Due at signing: $687.42 + $700 security deposit (returned at lease end) = $1387.42

If you remove the extra mileage charge... Payment = $629.34 and Due at signing = $1279.34 ($650 deposit).

There might be some slight variations.. Their sales tax calculations seem low, but it is done differently in every state, and I might not be figuring it correctly.. The pre-tax numbers should be exact, though.

Hope this helps,
kyfdx
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srm203

I live in Illinois where the tax rate is 6.75%. However, I am turning in another BMW and will only have to pay the difference between the new vehicle and the value of the one I am trading in. So the tax should only be about $1900.

Yes, the deal is 1st month's payment and the license fees, about $875.

prk1965

I live in northern New Jersey and currently lease an 04 325xi. I am not thrilled with the handling or the quality of the ride. Maybe it was the 2004 model or maybe it is because of the all wheel drive, but something is missing. I had a chance to drive an 05 525i and was impressed. My question is, living where I do, can I live comfortably and commute 40 miles each way daily with the rear wheel with snows, or is the all wheel drive the only way to go. I have heard many horror stories of rear wheel drive and snow. Any advice would be most appreciated.

jvos

You originally said your purchase (cap) price was $53120. For this at the tax rate you gave, its almost $3600 in tax. Based on that, its a good deal.

If you are actually paying less due to a trade, then I'd need to know the actual purchase price to judge.

kyfdx

You should really ask this question here:

BMW 5-Series Sedans

That is the general 5-series discussion...

But, IMO you don't need AWD... RWD with snows is plenty good enough for NJ..

regards,
kyfdx
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espo2

530I
58,975 MSRP
55,500 PAID
PREM PACK
SPORT PACK
COLD PACK
NAVIGATION
PREM SOUND
SMG TRANMISSION
CONV ACCESS ECT ECT
12/36 NO $ DOWN = $704 PER MONTH
7 TRIPS BTWEEN DEALERS AND WAS ORDERED LAST TUES

prk1965

Thanks for the response. I posted here because I have seen almost $100 more per month on the 525xi lease as opposed to the 525i and was wondering whether it was really worth it? I'm wondering if that is only due to the fact that it is winter now and the xi will have better bargains in the summer? Also as a rule, how early can one roll over into a new BMW lease penalty free?

kyfdx

The 525i and the 525xi have virtually the same 36 month lease program.. A lease for a comparably equipped 525xi shouldn't be more than $40/mo. more than the 525i, assuming the dealer sells for the same profit margin..

The 24 month lease is a different story... An $80/mo. spread would be about right..

As a rule, I would never assume that I could get out of a lease early without financial penalties.. BMW leases have pretty high residuals values You will rarely be ahead of the game during the lease term.. but, that also makes for a fairly low lease payment..

regards,
kyfdx
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jamiew

Have February lease rates (money factor, residuals) for the 5 series been posted yet? If so, have they changed from January?

gumpire

36months/15k
mf-.0014/ residual 60%
msrp-57,170
initial cap cost-55,455

dealer Services- 389 (non-negotiable)

security deposit-800
state lic. fee-100
rental surcharge-60
battery & Tire Fee-6.5
upfront acquisition-825
tax on upfront fees-4.66
upfront acq fee tax-57.75

total taxes-1888.33

total inception fees 2,629.22

base monthly rental-724.59
mntly tax (7%)-50.72

total mntly payment- 775.31
(includes gap insurance)
Everything looks ok to me, except I was told the acquisition fee is set by BMW for Florida at 825, not 625.

Look ok to You? :confuse:

Thanks

sdsualums

Bay Area CA here,
I am going to lease 530 or 525 for 36 months, 10k miles within 2 months. I have found this site great for money factors, depreciation etc, however, the dealers I have talked to say I cannot get .0014 or .0016 money factors, as they are the "buy rate, and nobody lends money for free". I haven't even gotten to negotiate price, which if I can get the low money factor and high residuals I am willing to pay close to MSRP. They say the money factors are .0020. Any thoughts would be appreciated. Thanks in advance. P.S.- I have perfect credit.

jamiew

I too have been fed this line here in the bay area, but after some shopping around have determined that the rate is still negotiable, down to the base rate (even with money off the MSRP) depending on the model you are buying. I have definitely found that dealers are only really willing to negotiate in earnest when they know you are serious about closing the deal, and in any event I would start by negotiating the purchase price and then move on to financing/leasing terms. You can always find alternative financing (though your bank, a third party leasing agent, or even a second mortgage/line of credit if you own property). If all else fails, consider going outside the immediate vicinity (even as far as Oregon or LA) because you may find better deals elsewhere... the dealers here seem to believe they can demand the sun and the moon and the stars....

jamiew

I have negotiated a lease on a 2006 M5 with the following terms:

MSRP: $95,790 (including gas guzzler tax)
Sale Price: Same
Money factor: .0030
Residual: 39%
Term: 60 months
Annual Mileage: 10,000

When I do the math on the above numbers, I come up with a monthly payment of $1503 including tax (8.5%), assuming no cap reduction and only first month's payment and registration/fees as drive-off (I am a repeat BMW leaser, so my security deposit carries forward).

When the dealer does the math on the above numbers, they come up with $1544 including tax, and $5000 total drive-off.

Putting aside the fact that I'm not getting below MSRP (this is an M5, and most dealers in my area want several grand *over* MSRP), whose numbers above add up correctly? Am I missing something in my calculations?

Also, the dealer swears that .0030 is the base/"buy" rate for the M5 in February, whereas I have read that the base rate is actually .0029. I used the dealer's rate in my calculations above, but would like to know if they are yanking my chain here...

bdr127

Is there a doc fee, registration/tags, acquisition fee, etc? Does your state charge the full tax amount and roll it into the cap cost or do they charge it only on the monthly payment? What does the "$5000 driveoff" include? 1st month payment?

jamiew

I don't know the answer to all of these questions, at least not yet (am awaiting a call back from the dealer). I believe California charges tax on the monthly lease payment and not the total MSRP... in other words, a pay as you go approach. $5000 drive-off includes first month's payment and aquisition fee for sure, not sure about doc fees, but I would assume this to be small... not enough to justify $40/month more in payments. My calculations used an aquisition fee of $625 and registration fees of $771, though I have heard of dealers trying to get $825 for aquisition and of course registration may be higher than I am estimating (but still, the latter would not affect the monthly payment). And since my drive-off calculation is only $2274, I'm not sure why their monthly is *higher* than mine since in theory the extra $2726 should be going to cap reduction...

My calculations: $96415 cap cost with $37358 residual yields $984 monthly depreciation, $401 monthly interest, $118 monthly sales tax, for a total of $1503 in monthly payments.

arskatan

I recently ordered a 2006 530i expected to arrive end of February beginning of March. I am located in Southern California and I have excellent credit (780+). The deal is as follows:

MSRP $57,500
Negotiated $53,500
2 years / 12k
$4,000 Down
$595 per month (after tax)

Most dealers in my area say they will not touch this deal, which leads me to believe it is a good one. I had to fill out a BMW financial credit application on 12/27/05 in order to lock in last years rates. I’d love to hear feedback. Do you think I could renegotiate a better deal with this months rate?

rock64

I would definately contact some dealer in socal as they will give you money at buy rate even at a reasonable discount off the msrp. I just got my 750li and did just that a little off the msrp and at buy rate. good luck!

skobola

Well, based on me also being one of the "lucky" people who live in Florida, and getting all the dealers' BS, I have already decided that I will not lease my car from them, as it pays to get it from somewhere else. But in your case, they are just saying that Florida is set on $825 in order to get your $200. Also, the same goes for State lic. fee, what is that; as well as the rental surcharge, which all I believe are some bogus dealer's fees. But anyway, a friend of mine has leased his 545 in NY, and his lease came $150 less per month even when he payed for shipping (which he made them to include into CAP cost) than if he did lease the same car in Miami. I am just negotiating a lease through another NY dealer for $427 per month, while I was quoted around $480 for the same car in Miami. Figure it out and do not get attached to the "local" deal, car will be the same wherever you get it.

CarMan@Edmunds

Hi jamiew. BMW's February lease program is fairly similar to its January lease program for most models, except the 2006 525i. BMW raised its 24 month lease money factor on that model for some reason. If you tell me which model you are interested in, I can tell you exactly what its current lease money factor and residual value should be.

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CarMan@Edmunds

Hi sdsualums. The whole "nobody lends money for free" argument doesn't hold a lot of water because the dealer isn't lending you this money. BMW Financial Services is. The dealership that you are working with is only facilitating the transaction. Lots of dealers lease vehicles to consumers using the buy rate lease money factor. While BMW dealers are notorious for marking factors up, if it comes down to doing the mark-up or losing your business you may find that the dealer will change its tune. If not, shop around. BMW has a ton of dealers in California.

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CarMan@Edmunds

Hi jamiew. The lease money factor and residual value that you were quoted to lease this car are in line with BMW Financial Services' current lease program for it. Having said this, 5 years is an awful long time to lease a vehicle for. I usually try to steer consumers towards 36 to 39 month leases, 42 to 48 months at the absolute longest. A lot can happen during the course of five years. Perhaps your family will expand and you will need a larger vehicle than an M5. Or even worse, your commute might change, causing you to need way more than 10,000 miles per year. You can rack up one heck of an excess mileage penalty over a 60 month term.

In case you are still interested in leasing this car for a whopping 60 months, I just worked up a lease payment on it for you using the information that you provided in your post and came up with a zero down, pre-tax monthly payment of $1,374.

As far as your car's money factor goes, BMW is not currently providing any sort of lease support on the 2006 M5. As a result, if you were to lease one through BMW FS, you would have to use its standard lease money factor. Its standard factor varies by region. In the areas I have seen it for, it is currently .00290 - .00295 with the payment of a security deposit and .00305 - .00310 with the deposit waived.

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CarMan@Edmunds

Hi arskatan. That is a heck of a good selling price you were quoted (as long as it isn't taking your down payment into account). BMW Financial Services' current buy rate lease money factor and residual value for a 24 month, 12,000 miles per year lease of a 2006 530i are .00140 and 74%, respectively. Using these numbers, and MSRP of $57,500, and a selling price of $53,500, I estimate that this car should have a zero down, pre-tax monthly payment of around $591. With a $4,000 capitalized cost reduction, your lease payment would drop to around $419. However, I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 530i would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all. You would be better off keeping the four grand in the bank and using it to supplement your lease payment or make some of them for you than using the money as a cap cost reduction.

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tayl0rd

Whoa! A 60 month lease?? :surprise: I didn't know you could even lease a car for that long! And just 10,000 miles per year? And $1544 per month?? :surprise:

Personally, I think you should leave that alone. If you're going for a 60 month lease, it probably means you're stretching yourself nearly to the snapping point just to get that car. Very bad idea. NO car is worth that! You should just wait 6 to 12 months for someone to return one (they ALWAYS do) and see if you can swing a better deal.

A 60 month lease is crazy, especially if you can't truly afford the car to begin with.

jamiew

My situation is a bit unique... without going into personal details, a 60 month lease is actually preferrable in my case. While on most models there is a penalty (in terms of money factor, residual, etc.) for doing more than 36months, with the M5 it is actually substantially cheaper on a month-to-month basis to do a longer lease. Still much more expensive than a 530 or 550, of course, but then so is the sticker price.

And yes, I can afford it.

prinzli

Sounds like a very good deal. I live in So.Cal. also - which dealership gave you this deal?

bdr127

Running some very general numbers, it seems as though you could lease that M5 for about $175 more per month for 24 months, $150 more per month for 30 or 36 months, or about $100 more for 42 or 48 months.

Obviously you have your reasons, but I just wanted to point this out...

arskatan

Hello Car man, Thanks for the info.I recently visited my BMW dealer again and asked him about my money factor. He replied that I was getting a 155 at a 74% residual. When I asked about the 140 money factor he replied that the rate only applies to individuals who leave a deposit, and that most people don’t do that. Your thoughts?

Moreover, I tried to use the lease calculator on leaseguide.com to factor in all my figures. For some reason I can’t come up with the same bottom line monthly payment I was quoted using all the same figures. As you know, I was quoted $586 (after tax) with $4,000 down. Using lease calculator:

MSRP – 57,500
Base Cap Cost – 53,855
Cost added to lease – 750 (highest average suggested by leaseguide)
Cap Cost Reduction – 4,000
Adjusted Cap Cost – 50,605
Residual – 74%
Money factor - .00155
Terms – 24 months
Sales Tax – 8.25

Monthly Payment - $480.02 + tax = ($519.62)

What am I missing?

kyfdx

1) $4000 down? Or, $4000 due at signing? You are adding $750 in additional costs as an estimate, but you need the actual numbers...On a 24 month lease, every $1000 difference in the numbers is over $40/mo. on the payment.. Typically.. out of $4000 due at signing, you'll have a 1st payment ($580), acquisition fee ($625.. up to $825, if dealer is marking it up), title and license fees ($300-$400 in CA), tire fee, doc fee, etc, etc.. You'll need exact numbers to calculate your lease.. I would venture a guess that only about $2200 of that $4000 is applied to reducing your CAP cost.

2) .0014 is the base factor.. only if you make a security deposit, or are a returning BMWFS customer.. and, most people do make a security deposit.. It is certainly advantageous from a financial standpoint.

regards,
kyfdx
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jsp

I am looking to lease a 530I for 24 months 20,000 miles per year. MSRP $55,500 sales price $54,000.

dealer quoted me approx $880 incl tax of 6% per month with $2,500 down. They are using 72% residual and .0019 money factor.

2006 will take about 6 weeks to arrive.

bmwplease

best credit...florida resident...on a 525i with sports/premium/cold weathewr, automatic, xenon, satellite, lcad leather......should be an MSRP of 51370 + 695 destination or 52,065

What should I pay?
On a 36 month lease what should be my factor, residual and payment based on 10K or 12K miles

Thanks for all your help.......

bdr127

BMW Financial is on a pass/fail system for their leases and does not have tiers. If you are approved, then you get the same low rate as someone with an 800 credit score.

As for your other questions, I'm sure there are some other people here that can answer them...

bmwplease

Trying to get our host to help out here...or anyone else with good info

Anyway the deal is 615 + tax on a 3 year 10k mile lease...supposedly with only 1st pmt, bank fee(??? please explain this one), tag & title

What do you think?
Should I go for 24 months? Are there are better deals on the 530?

As you are aware I'm being pressured to make a decision so please respond ASAP...Thanks again

asteinberg

I'm quoted from different dealers acquistion fees of $825 or $625, and turn-in fees of 0 to $325. First, I was told (for both acquisition and turn-in fees) the money went to BMW Financial Services. Now, I wonder. I think the acquisition fee is a disguised profit center for the dealership. Also, sales tax is charged on the acquisition fee, which indicates to me it's really part of the price. What's are the facts are all this? Isn't it illegal to state or imply the acquisition fee is for BMW Financial Services, if it's not?
I wanted to negotiate a lease based on best sales price, but I think the dealers are now playing games with acquisition fee and turn-in fee.

asteinberg

How can I get current money factor and current residual for BMW 530I? Can I keep checking back to that source as I get closer to the deal, so I make sure I'm getting proper rates? Do they change monthly?
Also, I'm in California. One dealer says acquisition is $825 PLUS tax. Another says $625 and no tax. (It calls the acquisition fee a bank fee.)

bdr127

BMWFS does, in fact, charge $625 for their lease acquisition fee. Actually, virtually all leasing companies charge a fee of a similar amount. Note, however, that most BMW dealers are allowed to and will charge as much as $825 for this fee (a profit of $200).

If you end up turning the lease in at the end and not getting another BMW, then there is a "disposition fee" charged by BMWFS of $350.

Enough of the "conspiracy theories".... Both are absoutely legit fees, and the dealer doesn't have anything to do with them. FWIW, too, these fees have nothing to do with BMW... They are standard fees across the board, no matter who you lease with.

CarMan@Edmunds

You're welcome, arskatan. The dealer that you spoke with was absolutely correct. Lessees can only qualify for BMW Financial Services' lowest lease money factors if they pay a security deposit, equivalent to their monthly payment rounded up to the nearest $50 increment. BMW FS will waive its security deposit in exchange for a .00015 increase in your vehicle's money factor. I personally always leave security deposits when leasing, but many consumers choose not to and there's nothing wrong with that.

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CarMan@Edmunds

Hi bmwplease. If you were to lease a 2006 BMW 525i through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00160 and 62%, respectively. This car's 10,000 miles per year money factor would be the same, but its residual value would be 1% higher.

I'd be happy to use these numbers to estimate what this car's lease payment should be like, however in order for me to do so I need you to provide me with an approximate selling price for it. You should be able to get a good idea of how much you will have to pay for one right now by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

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CarMan@Edmunds

Hey bmwplease. Over the past couple of months BMW has really been pushing 24 month leases and it has had some very attractive deals on them. For some reason, perhaps they have too many 2 year lease contracts on it already, BMW cut back on its 24 month lease support for the '06 525i in February. If you were leasing any other 5-Series model, I'd say that 24 months is probably the way to go, but I suspect that you may be better off going with a 36 month lease on the 525i right now.

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CarMan@Edmunds

Hi asteinberg. BMW Financial Services charges a $625 acquisition fee on every vehicle that it leases. The dealer that quoted you a $825 acquisition fee was trying to add an additional $200 hidden profit to your deal by marking the base fee up, which is perfectly legal but can usually be avoided by knowledgeable consumers.

The 530i's lease program varies depending upon how long you lease it for and how many miles per year you are allowed to drive it. For now I will assume that you are interested in a 2 year lease with 12,000 miles per. If you were to lease a 2006 BMW 530i through BMW FS right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 74%, respectively.

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asteinberg

Clearly no conspiracy, but some misinformation from dealers. By the way, when I did my 2003 Lincoln LSv8 lease, now expiring, there was NO acquisition fee, no-turn in, and (then) 3 yr free maintenance.
For 530i: I'll assume (a) $625 acquistion fee, and tell dealer not to mark it up (b)that it also is taxed--CA sales tax), and (c) $350 turn-in. [So a lease really costs $975 than buying it.[ Here are my questions, if I lease rather than buy:
1) How can I get and monitor (until deal is done) correct/current BMW FS money factor and residual for 530i 12000 miles lease for 2 yr and 3yr to know that is not being marked up, like they tried to do w/acquisition fee.
2/ Is 2 yr lease or 3 yr lease preferable?

asteinberg

Third question--
I never considered 2 year lease, rather than 3 year lease; I assumed former would cost too much more per month and was considering purchase to avoid $625+$350 charges but might still lease.
Anyway two questions
3/ So, is it worth it to put up a security deposit to get the lower interest rate, vs. the loss of earnings for 3 years on the security deposit?
One more:
4/ Assuming I get $625 acquisition fee (not $825) and can get BMW money factor (which I need to know) without dealer markup, then what is a good deal on a 530, in terms of the capitalized cost? Is invoice +$1000 reasonable? I'm been offered invoice +$1500, but they may be playing games elsewhere (such as saying it's $825 acquisition fee, not $625)
THANK YOU VERY MUCH.

asteinberg

To reiterate and followup on my 4 questions above:
Since I'm negotiating over the next few weeks, and you've educated me that a dealer can charge a higher money factor, even on an official BMW Financial Services Lease (how disturbing!), how can I monitor residual and money factor right up to when I close the deal? Otherwise, I'll get a low capitalized amount, but then the payments won't reflect it, if they up the money factor?
...And can I negotiate a lease now on a car yet to be delivered, and the deal would be binding on them?

asteinberg

You say the money factor on 2 years, 1200 mile is .00140.
But Bob Smith BMW in Calabasas wants .00160, and that after a securit deposit.
Nearly Center BMW, on a 3 year lease, 12000m, has 00155.
Are you sure your month factors are correct? How do I confirm them? Howe do I get current or changing money rate? Perhaps they are higher now due to higher interest rates.
Finally, what should each of the five security payments do to my money rate; in turn, what would that do to my monthly payment.
I'm almost ready to buy the car, rather than lease, because I'm tired of all the manipulation. If it's a BMW lease, I think it's terrible that different dealers can mark up the money rate, and thereby mark up the itnerest rate and the resulting monthly payment.
Any suggestions?

asteinberg

I meant money factor -- how do I confirm what it currently is.