A little surprising a WA dealer is willing to do that kind of discount on an M440xi even given the miles.
I would drop the lease end coverage unless you’re uncomfortable without it.
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So you believe this is a decent deal? Is WA just a tough state to get a lease?
It’s decent for WA at 7%+mileage and rate markup effectively. I would ask if it is a damage disclosure and press buy rate if so.
What is damage disclosure? Is buy rate the same as MF? Thanks for your help in advance!
Some loaners have prior damage, so you can ask if this one was previously damaged. If it was, they need to disclose it, and you can use that as a bargaining chip to ask for the buy rate (more on that below).
The Money Factor is essentially your interest rate on a lease. You multiple the Money Factor by 2400 and it will translate into an APR which you’re probably more familiar with. Each month BMW Financial Services issues a base Money Factor for its leases (also known as the buy rate). They are allowed to mark up this Money Factor up to a maximum of 40 basis points. This month, the buy rate is 0.00123 (2.95% APR). Given your Money Factor is 0.00163 (3.91%), that means they are marking it up the maximum they can (also referred to as a full markup).
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Thanks for the insights!! Super helpful. So what I should do is go back to them and get them to come down to the buy rate (any tips here?) and see if there are any damages that I can get additional discounts on?
Do you think once I’ve done those I’ve then pretty much exhausted all my cards with them?
The discount I feel is fairly aggressive for your region (and really, nationwide assuming this isn’t a car with repaired damage)
A fair adjustment to the deal would be to secure the buy rate (.00123) in the event that it is a damage disclosure car.
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Saying this for your own good. If you know this little about leasing you are probably going to get destroyed in the finance office.
Don’t be like the guy who was so embarrassed about what happened in there that he couldn’t even own it (“my wife signed everything while I was in the restroom!”).
There are two choices for everyone starting off, including all the regulars here who started off in the same position at some point:
A. Educate yourself with all the helpful content here starting with all the articles in the Leasing 101 section (EDITORIAL | LEASEHACKR), and then have an educated discussion about how to make a decent deal better, if possible.
B. Refuse to spend 30-60 minutes on Choice A above and thus remain uneducated about leasing and get taken advantage of every 2-3 years for the rest of one’s life.
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I completely agree - I haven’t signed the deal yet actually, wanted to source some wisdom from the hackers based on the numbers that were provided and see where some wiggle rooms are, spent a decent chunk of time learning the basics throughout this week (and want to validate some learnings via the forum), definitely don’t want to commit to anything until I know what i’m getting into. But will continue to explore more contents and learn!
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