[pwnagiux]

Due to the parts shortages, decided to lease my X5. Does anyone have tips? Currently have MF of 0.00136 which is not negotiable and residual of 52%. How much should I put down? Any thoughts appreciated. This is 36month 10k miles

[taek]

You should put nothing extra in down payment on a lease

But you can put money into MSD, multiple security deposits. BMWFS supports this. MSD lowers your money factor and should lower the overall cost to rent the vehicle.

Down payment doesn't change the overall cost to rent, it's just giving the dealership some of that money ahead of time. And in the case the vehicle can no longer be used (totaled, stolen), that money isn't returned because you already paid the dealership.

[PandaPuck123]

I leased an X5 couple months ago and only paid first month payment + title etc (about $2,000 total).
Didn't put any MSD either. Have invested that money in S&P500.

[GrussGott]

Originally Posted by pwnagiux

Due to the parts shortages, decided to lease my X5. Does anyone have tips? Currently have MF of 0.00136 which is not negotiable and residual of 52%. How much should I put down? Any thoughts appreciated. This is 36month 10k miles

nothing down on a lease ever, use MSDs, and that MF looks quite high over the base rate, i.e., "the buy rate" meaning your dealer is marking it up and it is negotiable (that is, your dealer is adding points to BMWFS's base rate for their profit) but I haven't checked latest numbers ...

The residual isn't a concern (from a cost of financing perspective) but that MF seems to be ...

[pwnagiux]

Originally Posted by GrussGott

nothing down on a lease ever, use MSDs, and that MF looks quite high over the base rate, i.e., "the buy rate" meaning your dealer is marking it up and it is negotiable (that is, your dealer is adding points to BMWFS's base rate for their profit) but I haven't checked latest numbers ...

The residual isn't a concern (from a cost of financing perspective) but that MF seems to be ...

base is 0.00096, i know hes marking it up but he said its non-negotiable. Fair enough, but he also gave me a 6% off MSRP, what do you think?

[Orient330iNYC]

Originally Posted by pwnagiux

base is 0.00096, i know hes marking it up but he said its non-negotiable. Fair enough, but he also gave me a 6% off MSRP, what do you think?

thats not horrible. in my area good is MSRP with the bump in MF.

if my math is right, its the equivalent of a 4% discount with no bump.
my guess is they are trying to spread out the profit between F&I and sales.
an effective 4% discount is decent in this time.

[GrussGott]

Originally Posted by pwnagiux

base is 0.00096, i know hes marking it up but he said its non-negotiable. Fair enough, but he also gave me a 6% off MSRP, what do you think?

roughly speaking, just to keep it simply, it's costing you an extra 1% per year for (3?) years, i.e., 1% of the price you're paying minus the residual ...

So, just depends how much of your 6% that eats up and/or if you think that extra 1% (plus the ~2% base MF) is worth the risk mitigation you believe you're getting with a lease.

Net-net: probably.

Oh, don't forget if you use BMWFS you lose PenFed if you were going for / eligible for that ...

[pwnagiux]

Originally Posted by GrussGott

roughly speaking, just to keep it simply, it's costing you an extra 1% per year for (3?) years, i.e., 1% of the price you're paying minus the residual ...

So, just depends how much of your 6% that eats up and/or if you think that extra 1% (plus the ~2% base MF) is worth the risk mitigation you believe you're getting with a lease.

Net-net: probably.

Oh, don't forget if you use BMWFS you lose PenFed if you were going for / eligible for that ...

So you think I should push more for a better deal? Or do you think this is decent?

[GrussGott]

Originally Posted by pwnagiux

So you think I should push more for a better deal? Or do you think this is decent?

I can't say - it depends on how willing your dealer is to deal, what your BATNA is, and what the costs vs benefits & risks are worth to you ...

It's always worth pushing for more, so the real question is, if you can't get more then do you walk or stick, and that's the part that's individual.

[Orient330iNYC]

Originally Posted by pwnagiux

So you think I should push more for a better deal? Or do you think this is decent?

theres no harm in asking.

different market but a net 4% off in NYC would be a good deal.