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      06-04-2015, 09:11 PM   #133
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Quote:
Originally Posted by Quentin View Post
Thanks OP for this very well written summary!

I have a couple of related questions:
1. Money factor. Why are the leases quoted using the money factor? It is a bit counterintuitive in that you have to take that low number and multiply it by 2400, or 24, depending on decimals, to come up with the interest rate on the lease. Seems more complicated than it needs to be - at least to an average person.
2. Residual value. How close is it to the real price of the car /what you could reasonably sell it for in 3 years when leasing or buying? It depends on several factors, of course, but I wanted to see, if available, some historical chart of the distribution of the car values. In a leasing vs buying decision, it would be easier to buy outright and the sell in 3 years at some price if one knew what you could sell the car for in 3 years. For example, I was just given a residual value if 62% on a 4 series - how safe is it for me to assume that the car can be sold for 62% of msrp 3 years hence? When leasing, this is bmw's risk.
3. Miles driven. The minimum is 10k per year. Leasing is paying for what you use, as was well articulated. If one can't use 10k a year but only 5k then is the decision always to buy the car and then sell it in 3 years for something more than the residual value since the car has fewer miles?

Thanks again!
Glad you enjoyed the post.

1- I don't have a succinct answer, but this is what I have found. The money factor is used because it's a more accurate way of assessing the monthly payment on an asset of fluctuating value.
I think they like using it, because it's confusing to most people.

2- Financing companies set residuals with different goals in mind. Auto manufacturers can subsidize their leases by increasing the residual a little more than the car may be worth. They could also encourage buying by doing the reverse. So you can buy and beat the lease residual or you may lose. It's all a guess into the future and can be influenced by a number of factors. Generally the better the lease residual the better of you are taking up a lease because the chance of beating that rate 3 years from now is less likely.

3- You can try and get a residual for lower miles, but at some point used is used and the price difference between a car with 15k vs 30k may not be enough for the finance company to give a separate rate for. I you drive that little, buying may be better.
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      06-05-2015, 03:21 PM   #134
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I received the following email from my dealer this morning about a 6-month lease pull-ahead opportunity. I'm confused, however, as I currently have 8 or 9 payments remaining (lease is up 2/12/16) and yet the email says they are targeting lessees with leases terminating up until 3/31/16.

If I were to take advantage of this, wouldn't I have to pay 2 or 3 payments out of pocket in order for the other 6 payments to be forgiven? I've got an email back to them asking for clarification, but wondering if anyone else has experience with this?

Here is the text from the email...

"Morning!

We have some great news this morning from BMW Financial Services. We are currently running a 6 payment Pull Ahead Program that covers up to
6 remaining payments on your current lease if you are planning on going into a new BMW. They have just extended the range of eligible drivers to
maturities ending by March 31st 2016 – that means YOU!

This incentive is only available through the end of the month, June 30th, 2015. So if you have been thinking about your next BMW or are just ready for
a new one please contact me or your salesperson to discuss. If you haven’t already, don’t make your June payment until you speak with us!!!

Any questions or to set a convenient time to come in and find you next BMW feel free to contact me. I look forward to hearing back from you."

Last edited by Monaco; 06-05-2015 at 03:40 PM..
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      06-05-2015, 03:43 PM   #135
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Quote:
Originally Posted by Monaco View Post
I received the following email from my dealer this morning about a 6-month lease pull-ahead opportunity. I'm confused, however, as I currently have 8 or 9 payments remaining (lease is up 2/12/16) and yet the email says they are targeting lessees with leases terminating up until 3/31/16.

If I were to take advantage of this, wouldn't I have to pay 2 or 3 payments out of pocket in order for the other 6 payments to be forgiven?
Yes, you are correct. This would work best for you if you ordered a car. Buying one off the lot wouldn't be a good idea.
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      06-05-2015, 03:47 PM   #136
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Originally Posted by OneRib View Post
Yes, you are correct. This would work best for you if you ordered a car. Buying one off the lot wouldn't be a good idea.
Well I could order a 340i, right!
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      06-05-2015, 03:54 PM   #137
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Quote:
Originally Posted by Monaco View Post
Well I could order a 340i, right!
Yes. If your lease is ending 7-8 payments out, only ordering will prevent double payments. I'd start the negotiations now and get a deal done.
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      06-09-2015, 06:48 PM   #138
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Question: is bank fee the same as acquisition fee?

Thanks
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      06-09-2015, 07:01 PM   #139
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Quote:
Originally Posted by kraken View Post
Question: is bank fee the same as acquisition fee?

Thanks
Yes, it's the same.
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      06-12-2015, 01:19 PM   #140
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I'm really confused on the money factor. Can someone explain?

e.g. on my workpaper, I see Interest rate/APR noted at 1.15%/1.42%. If I divide 1.15% by 2400, does that mean the money factor is 0.000479?
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      06-12-2015, 01:25 PM   #141
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Quote:
Originally Posted by itrocks4u View Post
I'm really confused on the money factor. Can someone explain?

e.g. on my workpaper, I see Interest rate/APR noted at 1.15%/1.42%. If I divide 1.15% by 2400, does that mean the money factor is 0.000479?
I doubt it would be that low. I have seen where the MF decimal place is moved so instead of 0.00128, it will say 0.128

Did they make a mistake and treat it as financing instead of a lease?
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      06-12-2015, 01:38 PM   #142
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Quote:
Originally Posted by itrocks4u
I'm really confused on the money factor. Can someone explain?

e.g. on my workpaper, I see Interest rate/APR noted at 1.15%/1.42%. If I divide 1.15% by 2400, does that mean the money factor is 0.000479?
a base MF of .0013 has APR of 3.12%,
you may use the iphone app leasematic to help check everything
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      06-14-2015, 10:46 PM   #143
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Question about tires: I have a 3 year lease. Is it a good idea to change the tires in the 2nd year itself even if they are not completely worn out? That way I will get to drive with new pair of tires for the length of the term. Interested in hearing some ideas from folks here.
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      06-15-2015, 05:29 PM   #144
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Quote:
Originally Posted by coolguy_y View Post
Question about tires: I have a 3 year lease. Is it a good idea to change the tires in the 2nd year itself even if they are not completely worn out? That way I will get to drive with new pair of tires for the length of the term. Interested in hearing some ideas from folks here.
Lots of strategies, but the most important factor is do you like the OEM tires. If you do the either use them to the returnable limit and get another set or use them until the end and replace as needed.

If you don't like the OEM tires, then take them off and replace with something else. Then save them for the lease return.
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      07-01-2015, 03:04 AM   #145
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Thank you OP and everyone...such a great thread.

Quick questions I haven't seen covered:

1) Which of the three credit bureaus (or scoring model) does BMWFS use to pull reports and scores?

2) A score of 675 isn't that high in the range. Some financial companies have a Tier 0 credit rating. Does BMWFS have a Tier 0?

3) If they do, what score is required to get it?
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      07-01-2015, 09:41 AM   #146
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Quote:
Originally Posted by fourseriesfan View Post
Thank you OP and everyone...such a great thread.

Quick questions I haven't seen covered:

1) Which of the three credit bureaus (or scoring model) does BMWFS use to pull reports and scores?

2) A score of 675 isn't that high in the range. Some financial companies have a Tier 0 credit rating. Does BMWFS have a Tier 0?

3) If they do, what score is required to get it?
Glad you liked the thread.

1) BMW uses Experian last I checked.

2) BMW only has Tier 1
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      08-20-2015, 11:40 AM   #147
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Hi ... I just found about this excellent thread just 5 days after I signed my lease !!!
So now I want to see if I did ok ,
My main Question is ...If the car is CPO do you still calculate the lease based on
The original MSRP of the car ?
Or the new "used car" price ?
In my situation I leased a 2015 535i GT CPO with 3500 miles , according to the
Packages on the car the MSRP is 70k . The sale price was 58895
And the purchased price is 62080 ( include easy care and Cilajet )
Which I am considering canceling.
My out of pocket ( first month and dealer fee and MV Fee ) 1661
My monthly payment is 765 for 35 month and 12k miles
The residual value is 42282
Is this math correct or should the dealer calculated the lease term based on the original MSRP
Thank s
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      08-20-2015, 12:07 PM   #148
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Nice write up. Thanks

That is the reason I try the buy the car used with few miles. I don't take the first depreciation. Recently I bought 2013 328 xdrive with all package possible. I have two year more in service and warranty . Plus it's certified car= more warranty

Off course new car is new car
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      08-20-2015, 12:29 PM   #149
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Quote:
Originally Posted by abouzaki View Post
Hi ... I just found about this excellent thread just 5 days after I signed my lease !!!
So now I want to see if I did ok ,
My main Question is ...If the car is CPO do you still calculate the lease based on
The original MSRP of the car ?
Or the new "used car" price ?
In my situation I leased a 2015 535i GT CPO with 3500 miles , according to the
Packages on the car the MSRP is 70k . The sale price was 58895
And the purchased price is 62080 ( include easy care and Cilajet )
Which I am considering canceling.
My out of pocket ( first month and dealer fee and MV Fee ) 1661
My monthly payment is 765 for 35 month and 12k miles
The residual value is 42282
Is this math correct or should the dealer calculated the lease term based on the original MSRP
Thank s
Running the numbers quickly it looks like they used the original MSRP. I have no idea what state you are in and if you are including taxes in your monthly payment. That could change the numbers drastically.

I don't know what easy care or Cilajet is, and can't comment on either.
Also would need the money factor to really know all the details.
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      08-20-2015, 12:31 PM   #150
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Quote:
Originally Posted by Ochoa1801 View Post
Nice write up. Thanks

That is the reason I try the buy the car used with few miles. I don't take the first depreciation. Recently I bought 2013 328 xdrive with all package possible. I have two year more in service and warranty . Plus it's certified car= more warranty

Off course new car is new car
All true. New cars are not the best financial choice many times. The situation and who you are buying from (manufacturer) all play a big role.
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      08-20-2015, 09:55 PM   #151
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i live in Florida tax rate is 6.5% the tax is included in the monthly payment 765
Easy care is an insurance package that include Tire and wheel damage coverage , paintless dent repair ,key replacment , windshield repair, road side assistance , for 1810 ( is that too much for such coverage for 3 year )
Cilajet is Exterior & interior Sealant and Rip Tear & burn coverage. cost 450.
money Factor 0.0017
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      08-20-2015, 10:25 PM   #152
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Quote:
Originally Posted by abouzaki View Post
i live in Florida tax rate is 6.5% the tax is included in the monthly payment 765
Easy care is an insurance package that include Tire and wheel damage coverage , paintless dent repair ,key replacment , windshield repair, road side assistance , for 1810 ( is that too much for such coverage for 3 year )
Cilajet is Exterior & interior Sealant and Rip Tear & burn coverage. cost 450.
money Factor 0.0017
I would pass on the easy care especially in Florida where most everything is flat. It would only make sense if the tire and wheel damage included cosmetic road rash (most times it only includes wheel damage that renders the wheel unusable). Road side assistance is standard with the car anyway. Lost key to me is not worth it unless you have a habit of doing that. That leaves only paintless dent repair and windshield repair (covered under auto insurance).

Cilajet also is a pass. Unless you are a smoker or transport animals/small children; you will never damage the interior to any significant degree. I doubt the exterior sealant is anything special. Go to a detailer and use their stuff and it will be better.

As for the deal, it looks like you should be getting a better MF. Right now the base rate is 0.0013, you should not be paying anymore than the base rate. 0.0017 is marked up.

Post your deal on this thread so more people can evaluate it
http://f30.bimmerpost.com/forums/sho...842749&page=35
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      08-20-2015, 10:46 PM   #153
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Quote:
Originally Posted by OneRib
Quote:
Originally Posted by abouzaki View Post
i live in Florida tax rate is 6.5% the tax is included in the monthly payment 765
Easy care is an insurance package that include Tire and wheel damage coverage , paintless dent repair ,key replacment , windshield repair, road side assistance , for 1810 ( is that too much for such coverage for 3 year )
Cilajet is Exterior & interior Sealant and Rip Tear & burn coverage. cost 450.
money Factor 0.0017
I would pass on the easy care especially in Florida where most everything is flat. It would only make sense if the tire and wheel damage included cosmetic road rash (most times it only includes wheel damage that renders the wheel unusable). Road side assistance is standard with the car anyway. Lost key to me is not worth it unless you have a habit of doing that. That leaves only paintless dent repair and windshield repair (covered under auto insurance).

Cilajet also is a pass. Unless you are a smoker or transport animals/small children; you will never damage the interior to any significant degree. I doubt the exterior sealant is anything special. Go to a detailer and use their stuff and it will be better.

As for the deal, it looks like you should be getting a better MF. Right now the base rate is 0.0013, you should not be paying anymore than the base rate. 0.0017 is marked up.

Post your deal on this thread so more people can evaluate it
http://f30.bimmerpost.com/forums/sho...49&page=35
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      08-21-2015, 12:00 AM   #154
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Thank you OneRib
the Easy Care does cover cosmetic damages for the rims and cover the tires as well . but for 1800 that is bit too much so i will cancel it I have 60 Day for a full refund.
The Cilajet is not cancelable so i have to to keep it.
good thing there is a bunch of car owner that used it and they happy with the result.
so i will either replace the easy care with The BMW wheel and tire insurance if it is cheaper , or
I will just replace the RFT that came with the car with a regular tire and save the OEM till i return the car in end of the lease , I hope that won't void the warranty on the car.
and for the MF it's late now to change the deal .... lesson learned... next time i will do my home work before i go to the dealer.
but my original Question for future deals . on a CPO do they calculate the lease based on the Original MSRP or the new price listed for the Car being used

Last edited by abouzaki; 08-21-2015 at 12:27 AM..
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