[shadowredlev]

Hey guys im going to be getting a 24 m3 base with an MSRP of 106k (and there is no mark up)

Now whats weird is when I do the bmw customer the monthly payments for 36 months 10k miles a year with 4k down show about 1462 plus tax

But this dealer is saying they need to do "in house leasing" and my payments are going to be 4k down 1590 plus taxes 36 months 7500 miles

they dont give me money factor break down nor residual values

anyone know what the actual rates are right now for bmw financial? just want to make sure im not getting taken for a fool

thank you!

[Berzerker]

No money down on a lease, ever.

And they should definitely be giving you a MF, but you won't get a truly accurate one until they run your credit.

BMWFS MF for leases is .00267 (~6.4%). If it's higher, dealer is marking it up.

[shadowredlev]

If you don't mind me asking what is wrong with doing more money down?

Ill try to get a break down, also to order the car I had to put a non refundable deposit down of 2k I originally thought I had to put more to 4k but they allowed the order without putting more down...so ill let them know I want to stick to only 2k down when the car arrives

Do you know where I can get the monthly money factor? car should arrive to the dealer in November so the money factor might change

My credit is over 800 Bmw financial approved me at tier one

[Berzerker]

Originally Posted by shadowredlev

If you don't mind me asking what is wrong with doing more money down?

Ill try to get a break down, also to order the car I had to put a non refundable deposit down of 2k I originally thought I had to put more to 4k but they allowed the order without putting more down...so ill let them know I want to stick to only 2k down when the car arrives

Do you know where I can get the monthly money factor? car should arrive to the dealer in November so the money factor might change

My credit is over 800 Bmw financial approved me at tier one

This is all done through the dealer. They should absolutely have a breakdown they can give you that would include the money factor. Press the business or financial managers if your sales advisor is being coy about it.

I wouldn't have gone through the approval process if you're that far out. The approvals are only good for 60 days and they'll have to do another pull.

Your deposit is also fully refundable until the car goes into production (150). If you're 112 or earlier, you definitely should be able to get your deposit back, just as an FYI.

As for why no money down, two big reasons:

1) The main reason to put money down is to lower your capitalization/principal so that your interest accrues slower or at a lesser amount. In a lease, your interest over the life of the lease is already calculated into the lease payments at the start, so you're just putting money "down" onto a fully interest-realized loan, which doesn't help you. Better to invest or keep the money in a high-yield savings account at a good return percentage instead.

2) If you end up totaling the car, you lose that money as part of the calculated "total value" due to the aforementioned total lease + interest payment calculation. If you put $1000 down, you've reduced the "value" of the car (the lease) by $1000 when it comes time to submit the "total lease value" to insurance.

Leases work slightly differently to financing, it's a bit confusing so hope that explains it.

[sk92]

They are bumping the original money factor on you to make more back end money (money off you leasing/financing) i work at a dealership this is done all throughout

[shadowredlev]

Hey! how much of a payment difference would it be, at normal rates with no mark up on the money factor what would the payments be on a 106k msrp car with 4k down (includes the first payment and fees)

[shadowredlev]

Hey! I was thinking about waiting for the car to be at the dealer before getting in to that, I worry if I give them a hard time now, they may cancel the order

Is it legal to bump up the money factor when the customer is a tier 1 customer?

I was thinking of waiting to the day the car gets there then asking for the breakdown of all the numbers

Oooh that explains the no down thing, I can ask if I could change it to 0 down, but do I still need to pay the first months payment and the title reg and dealer fees? the 4k includes all that

[shadowredlev]

what is the residual on a base m3 right now? sorry for all the questions

[BimmerFix]

Originally Posted by shadowredlev

what is the residual on a base m3 right now? sorry for all the questions

64% and yes they can bump up MF

[Berzerker]

Originally Posted by BimmerFix

64% and yes they can bump up MF

Standard residual should be 57%. If it's 64%, you're getting a deal.

[faze2988]

Originally Posted by Berzerker

Standard residual should be 57%. If it's 64%, you're getting a deal.

Incorrect, base models have a residual of 64% this month for 7.5k miles a year.

[Berzerker]

Originally Posted by faze2988

Incorrect, base models have a residual of 64% this month for 7.5k miles a year.

Source?

[smithf80]

Originally Posted by Berzerker

Source?

Can confirm this is accurate.

BMW's just playing funny with the numbers, higher residual, but also higher MF on the 2024, while the 2023 carries a lower residual but also a lower MF + some loyalty cash.

[BimmerFix]

Originally Posted by Berzerker

Standard residual should be 57%. If it's 64%, you're getting a deal.

57% is for Comp X-Drive
62% Comp RWD
64% Base

[DocWeatherington]

Originally Posted by shadowredlev

Hey! how much of a payment difference would it be, at normal rates with no mark up on the money factor what would the payments be on a 106k msrp car with 4k down (includes the first payment and fees)

A jacked up MF can add 3-4k in interest.


You need to know what the MF they are using on the lease quote. When does you car go into production? Did you rate lock

[DocWeatherington]

Originally Posted by shadowredlev

Hey! I was thinking about waiting for the car to be at the dealer before getting in to that, I worry if I give them a hard time now, they may cancel the order

Is it legal to bump up the money factor when the customer is a tier 1 customer?

I was thinking of waiting to the day the car gets there then asking for the breakdown of all the numbers

Oooh that explains the no down thing, I can ask if I could change it to 0 down, but do I still need to pay the first months payment and the title reg and dealer fees? the 4k includes all that

Your better to have the discussion now. Lock in a MF. A good dealership will explain and quote things and show you the hard numbers so you have a reasonable ballpark.

You can do a zero drive off or just pay the first month. You need the written numbers... Also does your state do taxes up front or on the monthly.

[shadowredlev]

Originally Posted by BimmerFix

57% is for Comp X-Drive
62% Comp RWD
64% Base

So does that mean the bank thinks the g980 in manual will be worth 64% of its Msrp by the end of the lease?

Or does it mean that my car will lose 64% of its value?

[shadowredlev]

Originally Posted by BimmerFix

64% and yes they can bump up MF

But if I call them out on it will they change it to whatever the regular money factor is?

[smithf80]

Originally Posted by shadowredlev

So does that mean the bank thinks the g980 in manual will be worth 64% of its Msrp by the end of the lease?

Or does it mean that my car will lose 64% of its value?

It means they believe the Base trim will retain 64% of it's value at the end of the lease.

Leases, boiled down to their simplest terms, are basically paying the difference between the selling price you negotiated and what the bank thinks the car will be worth in 3 years, or whatever the term is. The higher the residual, the lower the payments will be if all other factors are the same.

[shadowredlev]

Originally Posted by BimmerFix

64% and yes they can bump up MF

Originally Posted by DocWeatherington

Your better to have the discussion now. Lock in a MF. A good dealership will explain and quote things and show you the hard numbers so you have a reasonable ballpark.

You can do a zero drive off or just pay the first month. You need the written numbers... Also does your state do taxes up front or on the monthly.

You think I should tell them now? I was thinking of waiting until the car gets to the port, I believe they are using their in house financing and not going through Bmw, I was hoping to wait until the car gets there to discuss that stuff

[BimmerFix]

Originally Posted by shadowredlev

But if I call them out on it will they change it to whatever the regular money factor is?

They're allowed to raise it a certain degree. Now will they play ball if you raise a stink ? I can't give you a definite answer

Originally Posted by shadowredlev

You think I should tell them now? I was thinking of waiting until the car gets to the port, I believe they are using their in house financing and not going through Bmw, I was hoping to wait until the car gets there to discuss that stuff

I'd say bring it up now, me thinks when the car arrives they have a bit more leverage .And I think in-house financing is a bunch of BS , not a 100% sure tho. They have to go through BMW FS unless you bring in outside financing .

[akkando]

If you think the car will be worth more than 64 percent of its value in 3 years you should just purchase it. Hard to imagine even this very expensive base order would be worth less than 64%.