[Prissy]

Originally Posted by Diamond Skyline

Money Factor is essentially the interest rate you are being charged for leasing their car, this is how BMW Financial makes their money, and also how the dealership can potentially increase their profits.

Each term BMW NA sends out a document stating the lowest possible MF they are required to charge for specific models (those in high demand, such as the 335i coupe, will tend to have higher MFs than the sedans)

that document can be found here: http://www.bimmerfile.com/wp-content...009-leases.pdf


Now your CA will try and charge you an MF rate which is higher than the dealer requirement, this is how the dealer will increase their profits. Typically when a dealer decreases the price of the car, they raise the MF and most people don't realize this and have the perception of a good deal.

When I went into the dealer we had agreed to $500 over invoice, but I knew it was too easily accomplished, and I was right. He quoted me an MF of .0028 versus .0024 (the minimum required by BMW NA). So if I had agreed to the MF of .0028, I would have been paying an extra $40.00 a month!!

When I showed him the document I posted above, he asked where I got it, I simply said, "The Internet". He refused to give me the car at .0024, so I walked out, and my patience paid off. He called my later that day and reluctantly agreed to give me the car at an MF of .0024 and $500 over invoice.

When you go to take delivery of your car (i'm assuming you haven't), you will finalize the lease details, bring the document posted above with you and see if it matches what they quoted you. I doubt it will be the same. Good luck.

Thanks~ now i get it

[JBiddy]

Originally Posted by Diamond Skyline

Money Factor is essentially the interest rate you are being charged for leasing their car, this is how BMW Financial makes their money, and also how the dealership can potentially increase their profits.

Each term BMW NA sends out a document stating the lowest possible MF they are required to charge for specific models (those in high demand, such as the 335i coupe, will tend to have higher MFs than the sedans)

that document can be found here: http://www.bimmerfile.com/wp-content...009-leases.pdf


Now your CA will try and charge you an MF rate which is higher than the dealer requirement, this is how the dealer will increase their profits. Typically when a dealer decreases the price of the car, they raise the MF and most people don't realize this and have the perception of a good deal.

When I went into the dealer we had agreed to $500 over invoice, but I knew it was too easily accomplished, and I was right. He quoted me an MF of .0028 versus .0024 (the minimum required by BMW NA). So if I had agreed to the MF of .0028, I would have been paying an extra $40.00 a month!!

When I showed him the document I posted above, he asked where I got it, I simply said, "The Internet". He refused to give me the car at .0024, so I walked out, and my patience paid off. He called my later that day and reluctantly agreed to give me the car at an MF of .0024 and $500 over invoice.

When you go to take delivery of your car (i'm assuming you haven't), you will finalize the lease details, bring the document posted above with you and see if it matches what they quoted you. I doubt it will be the same. Good luck.

really good explanation... this really helps clarify alot

[Prissy]

Ok 1 more question: So MF has nothing to do with financial offer right? 0.9% financial offer is the interest of the loan from the bank or bmwfs right? what type of fee is the MF?

[Diamond Skyline]

Originally Posted by Prissy

Ok 1 more question: So MF has nothing to do with financial offer right? 0.9% financial offer is the interest of the loan from the bank or bmwfs right? what type of fee is the MF?

MF is the interest rate for leases

financing offers such as 0.9% are offered by BMW Financial for the financing of a car through their bank.. you could also finance your car through an external bank.. but these special 0.9% APR offers do not apply to leases, only to financing

[Prissy]

Originally Posted by Diamond Skyline

MF is the interest rate for leases

financing offers such as 0.9% are offered by BMW Financial for the financing of a car through their bank.. you could also finance your car through an external bank.. but these special 0.9% APR offers do not apply to leases, only to financing

so Lease(MF) = Finance(Finance offer) ?

[maniac005]

Did I get fooled? This is the first time i'm leasing a car. I configured my 335i coupe to MSRP $50,500. First my CA told me my monthly payment would be $679 with a 6k down payment. I told him that was a little high, so then he said since i just sold my M3, he can get me the loyalty rate which is $624/mo. This is for a 36 month lease with 12k miles/yr. What is the Residual Value? What should i do? I already paid 1000 deposit, and my car might be at the dealer next week. Again the details are:

MSRP: $50,500
Nogotiated: Did not attempt to
Invoice:?
Downpayment: 2500 + 2154 tax + 624 first payment + $650 security + 45 Inspection = 5975
MF: ?
Residual Value: ?
Monthly Payment: 624.39

I'm putting down approximately $3300 more than most people i've read about here, which means i'm actually paying $91/mo more, and i'm supposebly getting the loyalty rate. There's no way.

Any suggestions on how to approach this when they're gonna call me in to sign?

[Diamond Skyline]

Originally Posted by maniac005

Did I get fooled? This is the first time i'm leasing a car. I configured my 335i coupe to MSRP $50,500. First my CA told me my monthly payment would be $679 with a 6k down payment. I told him that was a little high, so then he said since i just sold my M3, he can get me the loyalty rate which is $624/mo. This is for a 36 month lease with 12k miles/yr. What is the Residual Value? What should i do? I already paid 1000 deposit, and my car might be at the dealer next week. Again the details are:

MSRP: $50,500
Nogotiated: Did not attempt to
Invoice:?
Downpayment: 2500 + 2154 tax + 624 first payment + $650 security + 45 Inspection = 5975
MF: ?
Residual Value: ?
Monthly Payment: 624.39

I'm putting down approximately $3300 more than most people i've read about here, which means i'm actually paying $91/mo more, and i'm supposebly getting the loyalty rate. There's no way.

Any suggestions on how to approach this when they're gonna call me in to sign?

holding everything else constant.. drop the price of the car by $2,500.. your claimed cap cost reduction.. and put $0 down for cap cost (i.e. you will still pay tax, security, first mo. upon signing)

you should arrive at the same monthly payment of $624.39

[maniac005]

Originally Posted by Diamond Skyline

holding everything else constant.. drop the price of the car by $2,500.. your claimed cap cost reduction.. and put $0 down for cap cost (i.e. you will still pay tax, security, first mo. upon signing)

you should arrive at the same monthly payment of $624.39

So i should just ask to have the price of the car reduced to 48k and my down payment to 3500(tax, security, first mo)?

[CarbonE39m5]

im looking to lease an 09 335 coupe. I can get the car for invoice.
with all my options msrp comes out to $46,700.

MSRP:46,700
Negotiated Price:42,990 (edmunds invoice)
Lease Term:36
Annual Mileage:15000
Down Payment:0
Residual:58% (not positive)
Money Factor:.0024

Monthly Payment: $716.71

does this payment seem high or is it just me? what do you think i should do to get my payments down to low $600s, not by putting a bunch of money down. Is it possible??

thanks

[Diamond Skyline]

Originally Posted by maniac005

So i should just ask to have the price of the car reduced to 48k and my down payment to 3500(tax, security, first mo)?

yeah.. good luck

[Diamond Skyline]

Originally Posted by GotAlottaCash

im looking to lease an 09 335 coupe. I can get the car for invoice.
with all my options msrp comes out to $46,700.

MSRP:46,700
Negotiated Price:42,990 (edmunds invoice)
Lease Term:36
Annual Mileage:15000
Down Payment:0
Residual:58% (not positive)
Money Factor:.0024

Monthly Payment: $716.71

does this payment seem high or is it just me? what do you think i should do to get my payments down to low $600s, not by putting a bunch of money down. Is it possible??

thanks

seems high.. not sure where the dealer is getting you.. maybe the Residual?

i have a car which i negotiated for close to 49k and with 800 cap cost reduction i am paying $688 a month for the same 15k/36 mo.

[CarbonE39m5]

Alright and whats your residual? I really would like to figure this out. You would think my payment would be less then yours, seeing how much less my car is compared to yours. Even if I don't put money down. Its just not adding up right.

[Diamond Skyline]

Originally Posted by GotAlottaCash

Alright and whats your residual? I really would like to figure this out. You would think my payment would be less then yours, seeing how much less my car is compared to yours. Even if I don't put money down. Its just not adding up right.

my residual is 58% and MF .0024

the exact details are posted earlier in this same thread

[CarbonE39m5]

Originally Posted by Diamond Skyline

my residual is 58% and MF .0024

the exact details are posted earlier in this same thread

when i enter your numbers into the Edmunds.com Calculator with all the information you previously posted your payment comes out to $825.05 per month. So im hoping this calculator is wrong or something. im going to talk to the sales manager today and see what numbers we get.

[Diamond Skyline]

Originally Posted by GotAlottaCash

when i enter your numbers into the Edmunds.com Calculator with all the information you previously posted your payment comes out to $825.05 per month. So im hoping this calculator is wrong or something. im going to talk to the sales manager today and see what numbers we get.

try the calculator on lease guide: http://www.leaseguide.com/

[CarbonE39m5]

i tried that calculator also. put in all the numbers you posted and your payment came out to $790.38. so idk how you got that payment, or these calculators arent right, or im completely missing something.

[CarbonE39m5]

is there no tax in boston or something?

[Diamond Skyline]

Originally Posted by GotAlottaCash

is there no tax in boston or something?

shit my bad.

i am registering the car in NH.. no sales tax

there's your difference in payment

[quest556]

Today, Richmond BMW, after much haggling, quoted this:
ORIGINAL, 1ST OFFER was straight MSRP!!!!!!!! with all the usual BS about high demand, limited availability, refresh body etc..
2009 E90 335i
Sport
Prem
Nav
Cold
Step
Comfort
Shades
Sat Radio
6FL
Mats
Wheel Locks
MSRP 53268
Dealer Fee 399
.0028 MF, 62% resid 36mo/12k
Priced them against VOB of Rockville MD

2nd Offer
49950, no dealer fee. $3318 off MSRP
.00225 MF 62% resid 36mo/12k

I said I'd take the weekend to think it over. Bet I get a phone call Monday offering an even better deal if I hold even longer....

[STEPHON314]

MSRP: $35550
Negotiated Price: $32800 ($700 below invoice)
Lease Term: 36 months
Annual Mileage: 12000 per year
Down Payment: $0
Residual: 62%
Money Factor: 0.00181
Total drive off: Bank fee + DMV fee + first month payment = $1500

Monthly Payment: $507

It's a 2009 E90 328 Sedan without any package but automatic transmission. I don't really need any package anyway, and now it even comes with moonroof without premium package!

Anyone got comments on the deal I got? Great, good, or bad? Thanks!

[jeffb006]

2009 328xi alpine white
sport package
steptronic trans with leather steering wheel/paddle shifters
navi
heated seats
upgraded 18" dual spoke wheels

MSRP: $44,400
Negotiated Price: didnt even see the final # (monthly payment started at $465)
Lease Term: 36 months
Annual Mileage: 12,000
Down Payment: $10500 (equity in my trade in)
Residual: 61%
Money Factor: not sure

Monthly Payment: $333

**EDIT - that payment has sales tax/title/reg included**

[jaaE90]

2009 335i xDrive Sedan
MSRP: $51,470
Negotiated Price: $48,615
Lease Term: 36 months
Annual Mileage: 12k
Down Payment: $2,659.59 (first month, 1 security deposit, doc fee, acq fee)
Residual: 62%
Money Factor: .00175
Monthly Payment: $669.90