12-31-2015, 07:12 PM | #1 |
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Non BMW Leasing
Just curious why some people tend to lease BMW's and other exotic cars from second hand lease shops. I see a lot of the "exotic car leasing" shops in NY/NJ/CT. I am not really sure if there is a benefit and or why people use these places. Any insight would be nice.
There was a recent one in NJ that scammed a whole bunch of people and a buddy of mine out of a Bentley. He currently has a 250k paper weight sitting in his garage. |
01-01-2016, 11:10 AM | #2 | |
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01-01-2016, 08:13 PM | #3 | |
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01-01-2016, 10:58 PM | #4 |
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It's all about the Money Factor (interest rate), Sale Price of the car and Residual Value. There's plenty of lease calculators available to compare lease offers and it isn't uncommon for a third party lease company to offer better terms. If you're leasing from a BMW dealer you should know that the MF is negotiable and can have a big impact on your lease payment. BMW Financial has a "buy rate" for leases, this is the MF the dealers pay and they will mark it up to make a profit on the lease financing. The buy rate typically changes monthly and you should know what it is before you go in to your negotiation. I have been able to get the "buy rate" on every BMW lease I have done.
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01-01-2016, 11:28 PM | #5 |
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I always thought I was doing good on my lease numbers but it doesn't hurt to have more information behind me when doing them. So they should disclose the buy rate if I ask them? Also what's the negotiation room on this number? I wonder if I can find my current MF on my lease.
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01-02-2016, 01:09 AM | #6 |
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UK leasing rates
In the UK at least BMW offer new M5s with a 0% interest rate while charging 4.9% or more for used cars. Including the dealer and BMW 'contributions' plus the no-cost finance buying used is often the more expensive proposition despite the reduced sticker price
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01-02-2016, 10:49 AM | #7 | |
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04-18-2016, 06:01 AM | #8 | ||
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04-19-2016, 02:17 PM | #10 |
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ive noticed third party dealers tend to get better rates for you. You can essentially get the best deal from the dealership completely on your own, its all about how you negotiate. A third party dealer will do all the negotiating for you. plus you are not just limited to 1 brand when you go to a third party
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04-20-2016, 03:49 PM | #11 | |
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Also lease rates at dealers are typically determined by the OEM. Some dealers will try to mark up the rates, but you can always get them down to the OEM advertised rate.
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04-22-2016, 06:56 AM | #12 |
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To avoid dealer bullshit, that's why. I lease all my cars through a leasing company. You get a great price and generally don't have to shop it around. I find that the deals they get on BMW and Mercedes are generally better than other makes.
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04-22-2016, 06:59 AM | #13 |
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I am not certain, but I believe these lease companies are registered as fleet dealers. They get better pricing from the manufacturer, then add a spread. Everyone wins, including the dealer because it is included in their volume incentives.
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04-22-2016, 08:33 AM | #14 | |
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04-22-2016, 05:57 PM | #15 | |
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A 3rd Party Negotiator (Broker) is totally different and most common in metropolitan markets with stacked franchises. The contractural parties do not divert any differently than if the consumer was negotiating the deal themselves. This is actually NOT how 3rd Party Lease Companies work with BMW and most other companies. BMW does have 2 types of Fleet Programs, but is far different from 3rd Party Leasing which is not allowed under either program. Dealers may have their own "Fleet Sales" rep or department, but these are driven by different mechanisms than distributor/mfr direct fleet programs. |
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05-02-2016, 07:01 PM | #16 |
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Adding another point - when I was getting my M5, someone on the board asked me to ping a couple of these non dealer leading companies. I was hesitant but called them anyway. Besides the fact that they sounded shady, they straight up said that they can't handle custom builds. So that was a big no no for me. Second if I remember correctly, they said it has to be a car that is already sitting on a dealer's lot. I ended both the conversations very quickly and went with my dealer (very happy with him and the deal).
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