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      12-31-2015, 07:12 PM   #1
freezey
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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.
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      01-01-2016, 11:10 AM   #2
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Quote:
Originally Posted by freezey
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.
I think they think that they can get a better deal.
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      01-01-2016, 08:13 PM   #3
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Quote:
Originally Posted by freezey
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.
They don't have overhead expense like the dealership does.. Therefore probably have better deals
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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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Quote:
Originally Posted by Scott@Radar-Mirror.com
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.
Is the buy rate negotiable? Right now the lease MF is 00131
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      04-18-2016, 06:01 AM   #8
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Quote:
Originally Posted by freezey
Quote:
Originally Posted by Scott@Radar-Mirror.com
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.
Is the buy rate negotiable? Right now the lease MF is 00131
Bump on this. Didn't know the MF was negotiable...any updated info?
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      04-18-2016, 09:54 PM   #9
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Only negotiated down to the buy rate. If you are so ever unlucky to work with a dealer marking up your MF.
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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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Originally Posted by Linsanity88 View Post
They don't have overhead expense like the dealership does.. Therefore probably have better deals
I doubt this is the explanation. Dealerships make money on service not on sales. Sales is just something they do on the side to own a franchised high margin service business.

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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Quote:
Originally Posted by skioutwest
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.
This is how I understand it too.
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      04-22-2016, 05:57 PM   #15
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Quote:
Originally Posted by freezey View Post
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.
Payment Payment Payment. This is why almost all individual consumers who choose a 3rd party open-end lease do so. It's also how the majority of them end up screwed in every hole. The entire financial risk is on the consumer and there is no clean "walk-away" guaranteed at the end of rental period. There are very few scenarios where this structure makes sense for an individual leasee given the risk involved. It varies by situation and state as to when and why this type of contract makes sense, but generally corporate leases are the most suited if the tax structure and burden allow.

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.

Quote:
Originally Posted by skioutwest View Post
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.
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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