Hi,
I am in the process of trying to lease a BMW X3 x28i. In the lease deal I am being offered a money factor of 0.00140. I believe this is marked up and not the base money factor.
Can anyone please help me what the base money factor is.
Also the deal currently offered to me is, let me know if this is a good deal or not?Appreciate all the help!!
MSRP: 53,845.00
Initial Cap Cost: $48,400
MF: .00140
12K, 36 months
Downpayment of $2,000
Monthly $568.50
That’s the new base money factor. It was .00134 last month, but changed in March.
Thanks for your reply.
What are your thoughts on the deal being offered?
Not sure what is going on with BMW this month (less lease support from manufacturer maybe) but your monthly payment is really over $600/mo ($2,000 down payment / 36 = +$56 more per month)
With BMWs, you want to read up on MSDs and do that instead of a down payment
This deal is still far from a “good” deal.
Our normal rough target is your monthly (including tax) should be < 1% or less than MSRP for $0 down, 36/10k miles. That determines if you are far or away from a “good” (not great) deal.
Thank you so much this is so enlightening. Feels like I have understood the Holy Grail of leasing!! - <1% of MSRP.
An additional question I had was for a 36/12K what should be the target?
Usually there is a 1 percent lower residual for 12k versus 10k per year. Just plug in all the same numbers and a 1 percent lower residual, and it shouldn’t make too much of a difference. On a $50,000 vehicle the difference between a 60 percent residual and a 59 percent residual is approximately $14/month.
Don’t get caught on the 1% “rule of thumb”, this is just step 1 of the way. We use it to see how far away you are – for example, if you are $100-200/mo over this target, might be time to find another dealer or car brand.
If you want the best deal possible, you have to learn all the numbers and be willing to negotiate. The 1% still leaves a lot of money on the table.
To get the numbers you will need to post back here, read “how to calculate lease by hand” from the leasing 101 link above
Got it… In fact thats what I have done… walked away from BMW and the dealer… Lets see what happens in the future. Still hunting…
If you have time, just hang around here and learn stuff. Help other people do their deals while you wait for your turn!
Lots of “deal of the century” deals here like the $488 Maserati, $445 F-type, $500 hellcats, etc. are just all good timing 
maybe a lease takeover may even work for you or perhaps @loberant will post a list again soon
Sounds good… even though wasn’t able to close a deal I can say for sure has been a very productive Saturday… Learnt a lot about leases… Will be hanging around to continue learning.
Thanks once again!!
Chris, if I may suggest a tweak to your rule of thumb: it should be before tax. Only way to compare apples to apples. Otherwise you would compare someone paying, say, 9% tax to someone who pays zero.
heres a pretty solid article article detailing how to calculate your own interest rate http://www.stumbleupon.com/su/7g271o/:1Q4e8jLhU:mN-gClId/carvoy.com/blog/57-how-to-calculate-interest-rate-for-car-leases