[SapphireBlackG01]

Originally Posted by greginaz1

If you don't understand a word in this post PLEASE don't lease as you will get hosed.

Do yourself a favor and search this site or bimmerfest.com for 'lease', 'msd', etc. and educate yourself...in general, NEVER put $ down on a lease...unless you put a small amount down to decrease your security deposit payments...also NEVER talk payments with a dealer...talk cap, MF, residual and acquisition fee.

You can start here: http://www.bimmerfest.com/forums/sho...d.php?t=146090

Alright, I'm definitely gonna give it a read before I do anything. Thanks for the link, Greg! I'm sure I'll have questions, so I will be back, but for now... looks like I'm gonna be a bit.

[Zeroday]

Greg you just saved me alot of money. Thanks a billion for your advice.

[SapphireBlackG01]

Hey guys, so what are the MF/Residuals for the 328i coupe at this point?

I'm having a hard time here because I need to do a lease return on the 325Ci but I'm not sure what to replace it with.

The dealer can't seem to find any remaining '06 manual, sport package-equipped 330i's, and they're telling me a manual, sport-package only 328i would have to be custom-ordered.

They want more than $600 a month for the automatic/premium 328i they have on the lot. I don't know where to start because I don't know what the money factor, rate, or residual is for the oupes. Anyone help me out?

[y2b3k]

Hey Greg,

I read the info on the link you provided (bimmerfest). I generally understand the overall article, however, what is the MF (Money Factor) rate?... Why is there all these zero's and wut do they represent.. i.e. 0.0007

Can u plz explain that to me? Is it the lease rate, or mark-up on the lease rate...?

Thanks in advance,

Travis

[SapphireBlackG01]

Originally Posted by y2b3k

Hey Greg,

I read the info on the link you provided (bimmerfest). I generally understand the overall article, however, what is the MF (Money Factor) rate?... Why is there all these zero's and wut do they represent.. i.e. 0.0007

Can u plz explain that to me? Is it the lease rate, or mark-up on the lease rate...?

Thanks in advance,

Travis

The way a lease works (in rather simple terms, I guess) is that you're monthly payment basically consists of the depreciation of your car over the lease period + interest applied to that same depreciation. If I understood what I read correctly, the money factor rate is the interest rate that is applied. Dealers apparently have a bit of flexibility with this rate.

[gohawks23]

Originally Posted by y2b3k

Hey Greg,

I read the info on the link you provided (bimmerfest). I generally understand the overall article, however, what is the MF (Money Factor) rate?... Why is there all these zero's and wut do they represent.. i.e. 0.0007

Can u plz explain that to me? Is it the lease rate, or mark-up on the lease rate...?

Thanks in advance,

Travis

It is the lease interest rate...multiply the MF by 2400 to get an interest rate you will recognize.

[gohawks23]

Originally Posted by xxpaintmepunkxx

Hey guys, so what are the MF/Residuals for the 328i coupe at this point?

I'm having a hard time here because I need to do a lease return on the 325Ci but I'm not sure what to replace it with.

The dealer can't seem to find any remaining '06 manual, sport package-equipped 330i's, and they're telling me a manual, sport-package only 328i would have to be custom-ordered.

They want more than $600 a month for the automatic/premium 328i they have on the lot. I don't know where to start because I don't know what the money factor, rate, or residual is for the oupes. Anyone help me out?

I only have numbers for the 335 because that is all I cared about...cal/emaill your CA...he should have 328 numbers.

[SapphireBlackG01]

Originally Posted by greginaz1

I only have numbers for the 335 because that is all I cared about...cal/emaill your CA...he should have 328 numbers.

Cool, thanks.

[y2b3k]

Thanks Greg for the prompt reply

But I still have one more question, why multiply the MF (Interest Rate) by 2400? What does the 2400 represent (months, percentage, or something else?)

Thanks in again.

[gohawks23]

Originally Posted by y2b3k

Thanks Greg for the prompt reply

But I still have one more question, why multiply the MF (Interest Rate) by 2400? What does the 2400 represent (months, percentage, or something else?)

Thanks in again.

It is just the formula that is being used...look here or google for more:

http://www.leaseguide.com/mf2400.htm

I finally got the numbers out of my dealer on my ordered 335i, 10K miles a year, 6% interest rate, 61% residual over 36 months. Am i getting screwed on this deal and if so what should i be asking for?

[Lassaxi]

Originally Posted by greginaz1

If you don't understand a word in this post PLEASE don't lease as you will get hosed.

Do yourself a favor and search this site or bimmerfest.com for 'lease', 'msd', etc. and educate yourself...in general, NEVER put $ down on a lease...unless you put a small amount down to decrease your security deposit payments...also NEVER talk payments with a dealer...talk cap, MF, residual and acquisition fee.

You can start here: http://www.bimmerfest.com/forums/sho...d.php?t=146090

I'm not sure I compeltely agree with the "never put $$ down" on a lease school of thought. I can see circumstances where it makes sense- particularly if you live in a state like NY where MSDs are limited by law.

But then again I tend to think that no decision is really wrong as long as you understand the implications of it and are fine with them. As long as you realize that you won't get the cap cost reduction back at the end of the lease, or if the car is stolen, totaled, etc, and you're fine with that, there's nothing inherently wrong with putting $$ down on a lease to reduce your payments or your residual if you wanted to buy at the end. Or, maybe you want to avoid having to pay for gap insurance (say for instance, leasing through private lender rather than BMW). I'm not saying it always makes sense, or even that it usually makes sense to put money down, but people have their reasons.

I also don't think the MFs that are being tossed around here are all that bad given current market interest rates. Subsidizing is fine, but BMW doesn't seem to have much trouble moving inventory, so why would they care?

Originally Posted by jjw3477

I finally got the numbers out of my dealer on my ordered 335i, 10K miles a year, 6% interest rate, 61% residual over 36 months. Am i getting screwed on this deal and if so what should i be asking for?

anybody have any thoughts on this for me.