[runthis]

I Just got off the phone with my CA to arrange delivery for tomorrow. He informed me that the money factor was .00270 on my 335xi coupe!!!????

Basically the breakdown is as following.
49,825 MSRP
48,300 buying price
12K/year

669.76 per month with a total of $5,960.75 due at signing

I agreed $2,500 hundred down
Taxes upfront at 6.5%( OHIO Hamilton County)
$345 Documentation, and Registration.
First month $700, and Deposit.

I can't Figure his math? Or how he came up with the money factor?
Any advise?

THANKS!

[200Duece]

He took the buy rate of 2.3 and add the max .4 to it for a total of 2.7. BMW FS sets the rates. If you don't put a Sec Dep down the rate will move up another .15

[200Duece]

63% residual at 12k miles

[BMW F22]

Use the money that you would have put down and put it toward lowering the money factor instead. You can add up to 7 additional SD which in turn will lower your MF by .00049. The best part is, you get all of it back - $350 at lease end. That will lower your payment by quite a bit.

Also, how come you're only getting $1500 off the car? You should be able to get more since the car is no longer in high demand.

Bottom line, $6k due at signing is a lot!

[runthis]

So the max that he can adjust the rate is .4?

[BMW F22]

Yes they are allowed to mark it up to .0004 which would bring your rate to .0027. With the multiple security deposits you can lower it to .00221 and you will get most of that money back at the end (total amount - $350).

[200Duece]

the max is .4 through BMW FS. The multiple Sec Deps are a good Idea if you want to put the money down up front. 2500 in Sec deps will save you about 25 dollars a month in rate. But As a cap cost reduction the 2500 lowers your payment about 75 dollars. so with the same money used your payments should be around 720. Tax is payed per payment on a lease in Cali. Do you have to pay the 6.5% up front?

[runthis]

I just figured it would save me in the long run paying tax up front...

But i think I'm more concerned with the mark up in money factor...

[200Duece]

See if he'll split the rate with you? Doesn't hurt to ask...

[Streetfish]

or call another dealer and ask for the base rate. i got the base rate

[200Duece]

^^^ yeah, then have the other dealer try and trade for your car that is at the first dealer. I'll bet a testicle you'll never get the car you originally wanted to buy

[runthis]

Well I went back in to see my CA, and talking and talking and him looking at me like I was totally crazy, and after him talking to his sale manager for like thirty minutes they lowered the money factor to .0024, we change the dealer acquisition fee, from 825 to 625, and lower price to $48k even.

Luckily I didn't Sign anything in the beginning. Being my first car purchase I think I did pretty well. But I definitely feel I'd do it a lot different after seeing how these things work!

BTW what do you guys think about rolling taxes into payment? It’s not as much savings like it would be if I were buying.

Thanks for the assistance! I go pick up my baby at NOON.

[Joonsup]

Originally Posted by runthis

Well I went back in to see my CA, and talking and talking and him looking at me like I was totally crazy, and after him talking to his sale manager for like thirty minutes they lowered the money factor to .0024, we change the dealer acquisition fee, from 825 to 625, and lower price to $48k even.

Luckily I didn't Sign anything in the beginning. Being my first car purchase I think I did pretty well. But I definitely feel I'd do it a lot different after seeing how these things work!

BTW what do you guys think about rolling taxes into payment? It’s not as much savings like it would be if I were buying.

Thanks for the assistance! I go pick up my baby at NOON.

I dunno about where you live, but in CA i believe they roll tax into the monthly payment by default instead of paying taxes up front.

[Streetfish]

yeah my taxes will be in the payment

[HennarotM3]

Originally Posted by 200Duece

If you don't put a Sec Dep down the rate will move up another .15

My CA waived the sec deposit after we agreed on all the parameters of the purchase and it didn't change the money factor. He also said that if you sign a purchase order you lock in the ceiling of the MF variable. If the rate goes down, you can get the lower payment; if it goes up, you've already clinched the better rate when you ordered the car.

[MBE93]

On a related note, the rate was .0030 on my e93, and I negotiated it to .0028. Is the factor different on the e93 vs others?

I put as little down as possible. In case your car is ever totaled, and unless you have gap insurance, any extra money you paid is LOST and insurance will not cover it! I've seen it happen to friends before.