MF/Resid.. Lease? Here's my build!

[massyman]

Hey guys.. I'm looking to put in my order but it's been pretty difficult to get straight answers. Anyone on the in with MF and Residuals etc. with the M5?

36 Mo. 7500/10k w/ 7MSD (if possible for the M5) and USA Event Credit..

Specs as follows:
BASE MSRP $89,900
Monte Carlo Blue Metallic $0
Silverstone II Extended Merino Leather $0
Aluminum Trace Trim $0
Executive Package $5,500
20" M light alloy wheels Style 343M $1,300
Destination & Handling: $895
Gas Guzzler Tax: $1300
TOTAL: $98,895

[alexey21]

0.00145 mf
48% 15k miles per year
50% for 12k miles per year
52% for 10k miles per year (Not sure about this one)

Wishing you the best

[AGS]

Above is correct.

MSD is available for the M5. I did it on my lease.

[cmhsam]

The .00145 residual is the "buy rate" for the Money Factor (MF). The dealer will usually add .0002 - .0004 to the MF so the finance department can make money on the deal. Unless you have a very long relationship with the dealer, and even then there is no guarantee, be prepared to pay above the buy rate for the MF.

[cpiguy]

Originally Posted by alexey21

0.00145 mf
48% 15k miles per year
50% for 12k miles per year
52% for 10k miles per year (Not sure about this one)

Wishing you the best

51% for 10K

[alexey21]

Originally Posted by cpiguy

51% for 10K

Ahhh I thought I went a bit of somewhere

Thank you for the Correction.

[alexey21]

Originally Posted by cmhsam

The .00145 residual is the "buy rate" for the Money Factor (MF). The dealer will usually add .0002 - .0004 to the MF so the finance department can make money on the deal. Unless you have a very long relationship with the dealer, and even then there is no guarantee, be prepared to pay above the buy rate for the MF.

My dealer sent me an estimate today in which he showed me the mf as 0.00145 exactly. Lucky I guess. The price is actually lower than I counted with 0 down.

[AGS]

Originally Posted by alexey21

My dealer sent me an estimate today in which he showed me the mf as 0.00145 exactly. Lucky I guess. The price is actually lower than I counted with 0 down.

That's good to hear. I think it's complete BS when the dealer tries to mark-up the BMW FS rates. My dealer did not even try this stunt.

BTW, just a piece of advice. NEVER put money down on a lease. If the car is in an accident and the car gets totaled you lose that money.

[cpiguy]

Originally Posted by AGS

That's good to hear. I think it's complete BS when the dealer tries to mark-up the BMW FS rates. My dealer did not even try this stunt.

BTW, just a piece of advice. NEVER put money down on a lease. If the car is in an accident and the car gets totaled you lose that money.

Not sure where you got that info from, but it is totally dependent on your insurance policy. I had an X5 totalled 6 years ago. The accident occurred less than a week after I picked the car up. The insurance company gave full original cap value from my lease contract, and I was able to rebuy the car at a better discount, putting 2 grand in my pocket.

And oh yeah, I had done a $5000 cap reduction.

Just the way my policy works.

[massyman]

Guys thanks for all the info. For the guys who already leased.. were you able to put down 7 MSD's and use USA Drive Credit and or BMW Loyalty?

[AGS]

Originally Posted by cpiguy

Not sure where you got that info from, but it is totally dependent on your insurance policy. I had an X5 totalled 6 years ago. The accident occurred less than a week after I picked the car up. The insurance company gave full original cap value from my lease contract, and I was able to rebuy the car at a better discount, putting 2 grand in my pocket.

And oh yeah, I had done a $5000 cap reduction.

Just the way my policy works.

I think you are the exception rather than the rule because the accident happened so close to your delivery date. Usually if the accident were to happen a year or two after pick-up the car is worth less than the remaining payments on the lease and gap insurance kicks in. Pretty much everyone I've ever talked to says not to put money down on leases for this reason - sales managers, CAs, finance managers.

[AGS]

Originally Posted by massyman

Guys thanks for all the info. For the guys who already leased.. were you able to put down 7 MSD's and use USA Drive Credit and or BMW Loyalty?

Yes, I did the full 7 MSDs and got the BMW Apps and BMW FS loyalty rebates totaling $1,250.

[massyman]

Originally Posted by AGS

Yes, I did the full 7 MSDs and got the BMW Apps and BMW FS loyalty rebates totaling $1,250.

Great, thanks! What did your MF come to with the 7 MSD's?

[massyman]

Does around 1400 (6.25 tax) sound about right for my build for a 36 mo, 10k mi? Is that what people are paying under/above in the ballpark?

[mwlmd]

Originally Posted by cpiguy

Not sure where you got that info from, but it is totally dependent on your insurance policy. I had an X5 totalled 6 years ago. The accident occurred less than a week after I picked the car up. The insurance company gave full original cap value from my lease contract, and I was able to rebuy the car at a better discount, putting 2 grand in my pocket.

And oh yeah, I had done a $5000 cap reduction.

Just the way my policy works.

I think the point of AGS's comment was that had you not put $5k down on your lease you would have walked away with $7k in your pocket instead of $2k.

[Tubal]

What is a MSD?

[AGS]

Originally Posted by massyman

Does around 1400 (6.25 tax) sound about right for my build for a 36 mo, 10k mi? Is that what people are paying under/above in the ballpark?

What's your negotiated price and what are you assuming for MSDs?

[AGS]

Originally Posted by Tubal

What is a MSD?

Multiple Security Deposits.

BMW FS offers the opportunity to put down more than one security deposit (up to 7), with each one reducing the money factor on your lease by .00007. If you do all 7 it reduces the MF by .00049 which is the approximately the equivalent of 1.2%. It's a great program - for me it equated to a guaranteed, after-tax return of 9.4% on the "investment".

[cpiguy]

Originally Posted by mwlmd

I think the point of AGS's comment was that had you not put $5k down on your lease you would have walked away with $7k in your pocket instead of $2k.

It was 7k total. I got to lease the new car with the same 5k cap reduction and put 2k in my pocket. And I do understand AGS's point. It's very important we understand how the lease company and our insurance policy will deal with a write off situation, God forbid it happens.

[mwlmd]

Originally Posted by cpiguy

It was 7k total. I got to lease the new car with the same 5k cap reduction and put 2k in my pocket. And I do understand AGS's point. It's very important we understand how the lease company and our insurance policy will deal with a write off situation, God forbid it happens.

That is good news! Glad to hear it worked out well.

[gregf10m5]

For those of you that have done the 7 security deposits does the adjustment start at the buy rate? I was told by my dealer that the November money factor is .000125 so if I'm understanding it correctly if I were to do the full 7 deposits the new rate should be .00076? Is this correct?

[AGS]

Originally Posted by gregf10forme

For those of you that have done the 7 security deposits does the adjustment start at the buy rate? I was told by my dealer that the November money factor is .000125 so if I'm understanding it correctly if I were to do the full 7 deposits the new rate should be .00076? Is this correct?

That's correct.