[ravennole]

Am I missing the negative on this? Obviously if you don't have the cash then that's one thing but as a financial advisor, I calculated that by using 7 msd's, the savings on my lease would give me a savings over the term of my lease equivalent to a tax free rate of return in the 25-30% range. Anyone that didn't take that is costly themselves a lot of money as my clients would kill for that.

Is there a catch I am missing with this? Gets the apr down from 3.09 to 1.92 with the decrease in the money factor 7 times.

[phx08]

Originally Posted by ravennole

Am I missing the negative on this? Obviously if you don't have the cash then that's one thing but as a financial advisor, I calculated that by using 7 msd's, the savings on my lease would give me a savings over the term of my lease equivalent to a tax free rate of return in the 25-30% range. Anyone that didn't take that is costly themselves a lot of money as my clients would kill for that.

Is there a catch I am missing with this? Gets the apr down from 3.09 to 1.92 with the decrease in the money factor 7 times.

You pretty much summed it up. There is really no "con" to MSDs' the ROI factored out across the term of the lease is very appealing.

Good article Here about that.

[ravennole]

I appreciate the insight and the link I actually read that the other day. I just wanted to make sure I wasn't missing something and that everything is still the same because that and some of the articles I read in addition to that were old. I am going to ask my ca about doing it today

[Pauleebe]

Yes Because $1000 down equates to about $900 saved over the course of a year, that money is better off in your pocket than sitting in BMW's hands accruing interest for them not you.

Also if you put $1000 down and the car is totaled or stolen, you won't ever see that $1000 back again. You will only reap the benefit of lower payments for that period for which the MSD reduced your capitalized cost.

[ravennole]

Originally Posted by dwalls90

Yes Because $1000 down equates to about $900 saved over the course of a year, that money is better off in your pocket than sitting in BMW's hands accruing interest for them not you.

Also if you put $1000 down and the car is totaled or stolen, you won't ever see that $1000 back again. You will only reap the benefit of lower payments for that period for which the MSD reduced your capitalized cost.

I am under the impression that if car is totaled you get msd back and I would save 1350 for giving BMW 3150 of my money that's a no brainier I'm a financial advisor and you would be lucky to get half that in return.

I just spoke with my dealer and he said the maximum they can bring the money factor down is to .009 and that the money factor is so low that this wont be a factor. This isn't true right? I will confirm with him later but I wanted to make sure that I'm not wrong. I should be able to buy down the rate as low as I want.

Also, dealer is now telling me the .00127 is the base rate and they jack it up to .0139 which equates to 0.2% apr. kind of taking the good deal I though I was getting and making it not so good now

Any help would be appreciated as I would like to lock in may rates for this cause its a good factor and residual

[kromix]

Originally Posted by ravennole

I am under the impression that if car is totaled you get msd back and I would save 1350 for giving BMW 3150 of my money that's a no brainier I'm a financial advisor and you would be lucky to get half that in return.

I just spoke with my dealer and he said the maximum they can bring the money factor down is to .009 and that the money factor is so low that this wont be a factor. This isn't true right? I will confirm with him later but I wanted to make sure that I'm not wrong. I should be able to buy down the rate as low as I want.

Also, dealer is now telling me the .00127 is the base rate and they jack it up to .0139 which equates to 0.2% apr. kind of taking the good deal I though I was getting and making it not so good now

Any help would be appreciated as I would like to lock in may rates for this cause its a good factor and residual

I would want nothing BUT the base money factor. I never pay any money factor hikes. Go elsewhere then.

It should be .00127 - .00049 = .00078 ....

.009 is a big difference from .00078, If they are telling you they aren't allowed to go lower, don't walk, RUN to another dealer.

[Pauleebe]

Originally Posted by ravennole

I am under the impression that if car is totaled you get msd back and I would save 1350 for giving BMW 3150 of my money that's a no brainier I'm a financial advisor and you would be lucky to get half that in return.

I just spoke with my dealer and he said the maximum they can bring the money factor down is to .009 and that the money factor is so low that this wont be a factor. This isn't true right? I will confirm with him later but I wanted to make sure that I'm not wrong. I should be able to buy down the rate as low as I want.

Also, dealer is now telling me the .00127 is the base rate and they jack it up to .0139 which equates to 0.2% apr. kind of taking the good deal I though I was getting and making it not so good now

Any help would be appreciated as I would like to lock in may rates for this cause its a good factor and residual

Hmm, I could be wrong, my friend. I always thought during a total or total los theft that the lease is over and payment is finished by the insurance company (assuming you opted in for lease payment coverage), and you have to buy a new car.

Maybe someone can expand on this?

[ravennole]

Originally Posted by kromix

I would want nothing BUT the base money factor. I never pay any money factor hikes. Go elsewhere then.

It should be .00127 - .00049 = .00078 ....

.009 is a big difference from .00078, If they are telling you they aren't allowed to go lower, don't walk, RUN to another dealer.

I just called another dealer with my deal and told them of they beat it I will go

He's discounting the car 5% but seemed to say the money factor increase is where there profit is, especially cause its a custom build versus a car on the lot.

I am willing to buy elsewhere I just don't want to lose the may rates

My biggest concern is the msd's not being used fully by him saying there is a buy down limit. This is just not right from what I have read. He's going to check with his finance guy and confirm that but I will walk away at that point and shop but concerned about losing the may rates ( the 65% residual more than a minute me change)

[kromix]

Originally Posted by ravennole

I just called another dealer with my deal and told them of they beat it I will go

He's discounting the car 5% but seemed to say the money factor increase is where there profit is, especially cause its a custom build versus a car on the lot.

I am willing to buy elsewhere I just don't want to lose the may rates

My biggest concern is the msd's not being used fully by him saying there is a buy down limit. This is just not right from what I have read. He's going to check with his finance guy and confirm that but I will walk away at that point and shop but concerned about losing the may rates ( the 65% residual more than a minute me change)

As long as your credit is ran with BMWFS you are locked in for may, whether you order from Joe Dealer or the next dealer. Just don't believe the crap he's spewing. The profit is not in the Money Factor, its also in other places ie: dealer fee, acq fee @ $925 etc.

There is no buy down limit.

[JasonX4MComp]

Originally Posted by kromix

As long as your credit is ran with BMWFS you are locked in for may, whether you order from Joe Dealer or the next dealer. Just don't believe the crap he's spewing. The profit is not in the Money Factor, its also in other places ie: dealer fee, acq fee @ $925 etc.

There is no buy down limit.

There is a buy down limit with regard to MSD. You can use 7 MSD's to buy it down .00049

[ravennole]

Originally Posted by Jason335iMsport

There is a buy down limit with regard to MSD. You can use 7 MSD's to buy it down .00049

The guy at the dealership said that there is also a limit that I can only buy it down to a certain rate and with rates low I cannot use all 7. He did say he was unsure and will run it by the finance guy but that doesn't seem right to me and if that's the case I will go to another dealer

I am already not happy that the money factor is getting a markup of .00009 but if they also limit my buy down ability that will be the last straw.

My parents bought 2 5 series in the last 18 months from him and he said I'm getting a family discount but 5% off, some rebates and a marked up money factor doesn't exactly look like a great deal.

44825 Msrp
42583 after 5% discount
1000 ult driver event and 750 loyalty
40833 sell price
.00127 base mf and .00137 is there mf

Adding in 125 transfer fee and 925 dealer acquisition fee (he said their acquisition fee is higher because they don't have a dealer fee added to it) my lease is as follows

809 due at signing including first month payment
462.71 month
495.10 month with tax

What are thought on this? This is before msd's and I have spare cash so I will do the max msd's

[kromix]

Originally Posted by Jason335iMsport

There is a buy down limit with regard to MSD. You can use 7 MSD's to buy it down .00049

Right, I meant there is no buy down limit in the context the OP is being told by the dealer. The dealer is saying there is a certain threshold which he cannot pass. There is a .00049 buydown limit with 7 MSD's, but there is no limit as to how long the MF can go with these deposits.


Right, just more profit to be made, Acq fee of $925 nets them a $200 profit.

What is the "Transfer Fee" of $125?

[ravennole]

Originally Posted by kromix

Right, I meant there is no buy down limit in the context the OP is being told by the dealer. The dealer is saying there is a certain threshold which he cannot pass. There is a .00049 buydown limit with 7 MSD's, but there is no limit as to how long the MF can go with these deposits.


Right, just more profit to be made, Acq fee of $925 nets them a $200 profit.

What is the "Transfer Fee" of $125?

I think the transfer few was to transfer the title from my car? First car I have acquired solely on my own so that might be a fee I have to pay separate from the lease my notes were cluttered

My dad has worked with this guy before and he quoted and told us the base money factor is his office two weeks ago and never mentioned a markup until the call today when he talked about it like it was normal. Very nice guy and appreciate his help every time I go there but I'm gonna get the best deal I can its business and I want to pay the least I can

[ravennole]

Originally Posted by kromix

Right, I meant there is no buy down limit in the context the OP is being told by the dealer. The dealer is saying there is a certain threshold which he cannot pass. There is a .00049 buydown limit with 7 MSD's, but there is no limit as to how long the MF can go with these deposits.


Right, just more profit to be made, Acq fee of $925 nets them a $200 profit.

What is the "Transfer Fee" of $125?

Yea sorry if I caused confusion I was aware of the 7 MSD limit my CA was saying I couldnt use 7 because it took the money factor below a certain threshold that I dont think exists.

I ran the numbers and the increase money factor is 8 dollars a month. Not chump change but hardly a reason to run away from a deal. I am just going to tell him that if he wants me to pay 800 over invoice im not going to pay the additional financing markup. I am getting a 2013 the last month cars move slow this month he should have some wiggle room to make a deal here.

I want to take a car with a 40825 sale price (plus 925 acquisition fee) and get the payment a tad above 400 with 0 down and roughly 800 due at signing. I dont think that ridiculous if I am willing to use 7 MSDs but he has been quoting me at a 495 including tax lease number that is higher than I am getting on a lease calculator by about 15 dollars in addition to admitting to a markup and selling 800 over invoice and telling me I am getting a loyal customer discount.

[JasonX4MComp]

Originally Posted by ravennole

Yea sorry if I caused confusion I was aware of the 7 MSD limit my CA was saying I couldnt use 7 because it took the money factor below a certain threshold that I dont think exists.

I ran the numbers and the increase money factor is 8 dollars a month. Not chump change but hardly a reason to run away from a deal. I am just going to tell him that if he wants me to pay 800 over invoice im not going to pay the additional financing markup. I am getting a 2013 the last month cars move slow this month he should have some wiggle room to make a deal here.

I want to take a car with a 40825 sale price (plus 925 acquisition fee) and get the payment a tad above 400 with 0 down and roughly 800 due at signing. I dont think that ridiculous if I am willing to use 7 MSDs but he has been quoting me at a 495 including tax lease number that is higher than I am getting on a lease calculator by about 15 dollars in addition to admitting to a markup and selling 800 over invoice and telling me I am getting a loyal customer discount.

Ok I now understand what was meant originally about the threshold with MSD's. Yes there is no such thing. Its the MF minus the number of MSD's and doesn't matter what it comes to. But one thing you should do is tell them to lower the acquisition fee down to 725 like it should be. He's marking that up also on you.

[ravennole]

Originally Posted by Jason335iMsport

Ok I now understand what was meant originally about the threshold with MSD's. Yes there is no such thing. Its the MF minus the number of MSD's and doesn't matter what it comes to. But one thing you should do is tell them to lower the acquisition fee down to 725 like it should be. He's marking that up also on you.

800 dollars over invoice
200 markup on acquisition fee
.0009 markup on MF

Considering this is going to be car #3 for my family from him in 18 months that seems like a pretty bad deal to me, especially since im getting crap on the 7 MSDs too. This should be a fun conversation tomorrow morning.

Would you have any concern if you were me that the residual could go down in June? It will be the last month of the 2013 model so I cant see why it would. If the money factor moves a tad its $3/month but if residuals on 10K miles go back to 63% that could be $30/month on my lease

[jetbill]

Great thread!

[ravennole]

Originally Posted by jetbill

Great thread!

I am in tampa as well where did you buy your BMW?

[kromix]

Originally Posted by ravennole

800 dollars over invoice
200 markup on acquisition fee
.0009 markup on MF

Considering this is going to be car #3 for my family from him in 18 months that seems like a pretty bad deal to me, especially since im getting crap on the 7 MSDs too. This should be a fun conversation tomorrow morning.

Would you have any concern if you were me that the residual could go down in June? It will be the last month of the 2013 model so I cant see why it would. If the money factor moves a tad its $3/month but if residuals on 10K miles go back to 63% that could be $30/month on my lease

Why don't you just lock in rates for May and see what june brings just incase? yea tell him to cut down on the markups.

[JasonX4MComp]

Originally Posted by kromix

Why don't you just lock in rates for May and see what june brings just incase? yea tell him to cut down on the markups.

Was just about to say the same thing. Lock in the rates tomorrow so you can see June rates and programs and possibly get something better. And for buying 3 cars from him in 18 months, can't believe you're getting the acq fee marked up also

[kromix]

Originally Posted by Jason335iMsport

And for buying 3 cars from him in 18 months, can't believe you're getting the acq fee marked up also

This.

If he was doing that to me, let alone the MF lies and markup too I'd never return his call again.

[ravennole]

i spoke with him around 7PM

Basically the car comes out to a sell price with incentives of 40,800 or 41,725 with the acquisition fee.

Even factoring in his markup on the MF to .0009 versus .00078, I ran the whole scenario through a lease calculator and with the the MSDs, it came out to 440 a month with 0 down. He ran the same calculation and came out with 465. I told him I cannot understand how we can be that far off.

I called my dad and he reviewed his purchase of his car from them and said there is a 500 dollar dealer acceptance of car fee. Basically they washed the car for 500 dollars. we think this is built into his formula and thats why his is higher.

I am going there on saturday and I want him to add sirius as a dealer option cause im not getting premium package and I want it for 450. I am going to tell him that he is marking it up enough for him to make a nice profit and if I cannot get 450, I am going to shop around the area and I will be back if I cant beat him.