F30POST
F30POST
2012-2015 BMW 3-Series and 4-Series Forum
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
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
Extreme Powerhouse
Post Reply
 
Thread Tools Search this Thread
      10-13-2018, 08:53 PM   #1
JGSM 14
New Member
6
Rep
18
Posts

Drives: Pending
Join Date: Oct 2015
Location: MA

iTrader: (0)

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?
Appreciate 0
      10-14-2018, 07:49 PM   #2
jjrandorin
Lieutenant
United_States
356
Rep
564
Posts

Drives: 2016 435 & 2016 X5D
Join Date: May 2013
Location: San Diego

iTrader: (0)

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.
Appreciate 2
jmg18493.00
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 04:32 AM.




f30post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST