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BMW 3-Series and 4-Series Forum (F30 / F32) | F30POST > 2012-2019 BMW 3 and 4-Series Forums > 3 and 4 Series Ordering / Pricing / Order Tracking Forum (and European Delivery) > Money factor spread
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      10-13-2018, 09:53 PM   #1
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Money factor spread

I?ve been trying to get pricing from 5 area dealers and noted that all were using different MFs - and all were above the BMWFS rate. What gives? How likely are they to negotiate on the rate?
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      10-14-2018, 08:49 PM   #2
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Some do, some dont....Its up to you to decide what you will accept. The rate they can charge for tier 1 credit is a spread of .00040 basis points (so if the base rate is .00182 they can charge between .00182 and .00222 )

This rate is negotiable, but whether they will negotiate on it or not is another story. They usually say something like "I cant sell for that, my finance guy / girl has to eat too" or some such.

You can get yourself a lease calculator, calculate the lease with the markup they are offering you, change the rate to what you identify as the base rate, and see what the difference is.

If its "$22 a month" for example, multiply $22 by the 36 month lease term and see that the markup would be $792. Now that you know what the difference is, ask them to reduce the selling price of the car by the amount of the money factor markup.

"the money factor markup is costing me an extra 792. I will pay that markup if you discount the selling price of the car to compensate. I dont want to pay for "your finance guy to eat" but you certainly can".

Some might work with you, some wont.
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