I’m still trying to figure out the derivation for $784!
NorCal BMW dealers seem to be consistently marking up MF by 0.00050 if Edmunds’ base MFs are reliable
It’s fairly usual for dealers to mark up the MF. It also really doesn’t matter. A marked up MF, is in your favor, as long as the dealer is giving a commensurate discount.
The best course of action is to establish a well researched target offer and pursue that. Nothing good ever comes from asking the dealer how much they want you to pay.
If you’re going to take them an offer, you need to either take them just the monthly and due at signing amount or you need to take them a fully broken down offer with every number identified. There is no in between. Anything in the middle ground leaves room for ambiguity.
That’s what the local dealer is telling me he is doing when I brought up the issue of MF markup!
OT but, for non zero DAS, what is the money being applied towards?
Is it a commensurate discount when compared to other deals though? Needs to be about 2.5% more off msrp to offset that mark up. Is the discount that much better?
I don’t have a baseline since he gave me only one quote and I subsequently discovered he had marked up the MF.
Thanks for the rule of thumb. Will get additional quotes and watch for DAS and monthly payments.
You missed the whole point of my post
Missing the point is definitely possible 
I was trying to say that I don’t know how much more they took off the price (or even if they did so) since there was only the one quote with about 8% off MSRP.
I was hoping that a quote from someone else who is applying the base MF will give a clue.
The discount in the quote is 9.13%
Playing with the model in the spreadsheet, it looks like the break even is about 2.33% additional discount (6.8 to 9.13) for 0.00050 increase in MF (0.00111 to 0.00161) to keep payments the same. Not sure whether this helps.
There is no need for more quotes. What you need to do is establish your target deal indepedent from any dealer quotes. You need to figure out price wise where you should actually be.
I changed the G to T. See edit above. And, yes, you are correct. F should be FN at the beginning. Good catch!
EDIT:
WHOOPS…
The Equation would be…
if you want to pay all fees upfront. The equation in my earlier post assumes that the 1st payment and fees are capitalize.
Dealer Fees: 869 = 784 + 85
The CA dealer doc fee is 85 per @mllcb42 which I did not realize. It might be worthwhile to get a breakdown of the dealer fees.
It appears that the dealer’s WS may have used an MF = .00291. The 7500 is allocated as follows…
3643.88 covers all upfront fees. They identify it as a cap reduction but it’s not.
3856.12 is the cap reduction.
I get a payment of 1030.88 v. their payment of 1030.24. That’s close but we shouldn’t be that far apart. Should be within a few pennies.
This is a quote from a different dealer who is giving an additional $1000 dealer discount compared to the previous quote where it was $6000. There is also a $1500 additional employer based discount on the rebate line where he’s added it to the lease credit.
Son is happy and ready to pull the trigger!
And wife is increasingly keen to get an iX and requested a quote from the same salesman. He claims MF is 0.00161 and we are surprised the payments are so close to the i5
If you know how a lease works and know the MF/RV numbers and use the LH calc you wouldn’t be surprised at all. Have you put the numbers in for each vehicle and come up with target payments yourself?
I’m coming up to speed after creating a spreadsheet with the info from delta737h and from the insights from the posters in this thread to whom I am very grateful.
One of the early issues was that no quote included the MF. And one salesman gave me the wrong MF when asked
There are plenty of places to find base MF online…have you googled? You can get them here by super supporter status or search the Edmunds lease forums.
That was indeed one of the things I learned along the way!
Remember, you should have a target deal established BEFORE ever talking to a dealership. There’s nothing you need from the dealer.
I gave you a better deal than this on the iX and used base MF.
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