Hi folks,
Here’s our first stab at a brand-specific Wiki. With all the activity on Leasehackr Forum, it’s easy to lose track of the knowledge being shared. The purpose of this Wiki is to be a central repository for all things related to leasing a BMW.
Please feel free to contribute! This is an ongoing document that relies on crowd sourcing our knowledge and experiences.
Expected Discount/Selling Price
This is very generalized information, but discounts vary by location, time, and model. Search for recent transactions. A sedan like the 3-series will likely be discounted more than an SUV, or an all-new, redesigned model.
Money Factor (MF) Information
The baseline MF is set by BMW Financial Services, but a BMW dealership can mark up the MF by up to .0004.
Historic MF Data
Unlike most other brands, the money factor for BMW FS leases is the same regardless of model (with rare exceptions).
02/2022: .00136
04/2021: .00093 MF
01/2021: .00086 MF
10/2020: .00082 MF
08/2020: .00099 MF
06/2020: .00118 MF
05/2020: .00118 MF
02/2020: .00142 MF
09/2019: .00128 MF
05/2019: .00165 MF
03/2019: .00177 MF
01/2019: .00188 MF
10/2018: .00182 MF
05/2018: .00166 MF
01/2018: .00152 MF
03/2017: .00140 MF
12/2016: .00134 MF
09/2016: .00136 MF
??/2006: .00290 MF
Methods to Manipulate the MF
The MF can be manipulated via:
- Multiple Security Deposits (minus .00004 per MSD, up to a maximum of .00028)
- a One-pay lease payment (minus .0003)
- Acquisition Fee waiving (plus .0005) [Usually not recommended, unless doing a 24 month lease]
Multiple Security Deposits (MSD)
With BMW FS, you can reduce your monthly payment by placing multiple security deposits upfront. Unlike a down payment (i.e., a capitalized cost reduction), you get this amount back at lease-end. MSDs work by lowering the money factor (MF) on a lease. MF is essentially the interest rate on a lease; lowering the MF reduces the finance charge you pay.
A security deposit is equal to your monthly payment (including tax) rounded to the nearest $50. A maximum of 7 security deposits are allowed up to a maximum of .00028. Each security deposit lowers the money factor by .00004. MSDs can be a mediocre source of ROI, better for other brands like Toyota Financial Leases.
Related thread(s): Downside of MSDs?
One-Pay Lease
You can choose to pre-pay 100% of the lease payment in exchange for an MF decrease of .0003.
Waive Acquisition Fee
The acquisition fee for leases through BMW FS is $925. Dealers can no longer mark it up for additional profit. The acquisition fee can be waived in exchange for an MF increase of .0005, which may be more favorable for shorter lease terms.
Executive, Loaner, and Demo Cars
Exec/Demo cars can be leased and qualify for lease cash, corp fleet, loyalty + recent grad provided an equivalent new model of the same year has lease support from BMWFS. MSDs, USAA and OL codes can also be used, provided the vehicle has less than 20,000 miles. Mileage under 20,000 is subject to a residual reduction of $0.25/mile or $.30/mile less 500 miles.
I.E. 3 series with 5000 miles. 5000-500 = 4500 * .25 = $1,125
I.E. 7 series with 5000 miles. 5000-500 = 4500 * .30 = $1,350
The car must have 5500 miles and 4 months of service.
the loaner has > 7,500 miles, there is a further 7% residual drop in addition to the mileage penalty.
(Unverified at this time).
You will also lose ANY incentives (Lease Cash, USAA, OL Codes, ETC…)
Corporate/Demo loaners would continue to receive the free maintenance plan for 3 years/36k upon lease inception. However, the clock starts on initial in-service date, NOT the date of you beginning the lease. In other words, if you take a 3/36 term 6 months and 5,000 miles after the car was put into demo service, you would receive 30 months/31k miles of coverage. The same would apply for warranty coverage.
Incentives
Loyalty/Conquest/Corporate Fleet
Build Out/Option Credit
Graduation
USAA
Driving Event or OL Code
One Life
Normal events can be found here. These events usually consist of auto cross, extended test drives, and for a fee (250/half day), an abbreviated M performance driving school.
These events have a caveat, where only $500 of the $1000 rebate is provided by BMW FS, the additional $500 is provided by the BMW Dealer where the event is hosted and you are purchasing your car, so your mileage may vary.
Current PHEV One Life codes
Again information courtesy of @BMWDavid via PM, updated as of August 21st, 2020.
Corporate Fleet Program
Corp Fleet is a specified incentive and it is different on every model. It cannot be combined with Conquest or Loyalty Credits. This incentive also applies to Owner’s Choice programs. (Refer to Alternative Financial Products bellow). Further restrictions may apply to each model.
You can identify if your employer is a participant of this program, and the exact incentive amount here.
It is not combinable with the BMW CCA rebate or any UDE / One Life codes.
Leasee must also provide a recent paycheck stub from within the last 30 days, it may censored in a way not to hinder proof of employment status.
(Correction and information Courtesy @BMW_Dave)
A good way to earn Corporate Fleet incentive is to drive for uber for friends and family, wait and receive a paycheck from uber to qualify.
European / Ultimate Delivery
European Delivery has been phased out as of May 18th, 2020.
Ultimate Delivery consists of delivery of your BMW at the South Carolina Spartanburg plant, consisting of classroom lessons, car handling lessons, and a plant tour of the X SUV plant.
Note, all cars are eligible, not just X line SUVs for ultimate delivery.
Maintenance
BMW adjusted their maintenance program from 2017 model years to be less beneficial. While it still includes free basic servicing it only covers 3 years or 36k miles and no longer covers items like brakes. Reference: https://www.bmwusa.com/explore/bmw-value/bmw-maintenance/terms-and-conditions.html
Ultimate Care and Ultimate Care+ can be purchased to reduce cost of servicing beyond the 3 year or 36k mile period for higher mileage leases. Reference: BMW Maintenance
Ultimate Care can be transferred to a lease transferee for a nominal fee, in the 100-249 range as far as I have been told.
F&I Add-Ons
Excess Wear and Tear
Wheel and Tire Insurance
Read a wonderful thread on why in most cases, these are stupid.
BMW CCA
BMW Car Club of America provides a means for members to obtain a post-sale rebate from the purchase or lease of new cars under 1,000 miles. Loaners are not applicable. Rebates range from $250 to $1,500 based on model. Individuals must maintain a good standing with the BMW CCA, and maintain 12 continuous months of membership to qualify for this rebate. Members may purchase a 3 year membership which costs $134.00 to shorten this waiting time from 12 to 6 months.
It is not combinable with corporate fleet.
To obtain membership, and to learn more about the rebates, and the club please click the link below: Vehicle Rebates | BMW Car Club of America
Disposition Fee
BMW FS charges a disposition fee of $350 for all leases. This fee is waived if you lease or finance a vehicle through BMW FS within 6 months of your prior BMW lease finishing.
Unused Mileage Credit
BMW will offer a mileage credit in certain circumstances if you are under your contractual mileage. The credit should be added to your FS account upon leasing a new vehicle.
Percent of Contractual Miles not Utilized
10%-14.9%
15%-24.9%
25%-100%
Credit Offered for Unused Mileage
$200
$250
$300
Example: If you have a 2 year/20k lease, and you used 18k miles, you would receive a $200 credit.
Should you ground the car early, this lease credit would not apply.
NOTE: There have been reports of individuals having to reach out to BMWFS to apply the credit. Please keep your eyes on your account to ensure the credit was issued, should you be eligible.
Lease Transfers
BMW allows lease transfers at any point prior to the final 6 months of the lease term. The lease transferral fee is $500, $400 of which is returned if the application is rejected. Due to the nature of financial companies being risk-averse, most will require the prospective lessee to have very good credit.
Lease transfers can be a good way of getting a good value short term lease, however they do come with downsides:
- The new lessee takes full responsibility for any damage or liability on the vehicle. A professional inspection would be one way to mitigate the risk involved.
- MSDs are not returned by BMW until the end of the lease so would need to be resolved between the original lessee and the new lessee.
- Standard free maintenance does not transfer automatically to the new lessee. BMW Ultimate Care paid maintenance can be transferred to the new lessee.
- Ultimate Care can be transferred to a lease transferee for a nominal fee, in the 100-249 range to the author’s knowledge.
- Lease transfers can take weeks to complete.
Alternative Financial Products - Owners Choice (for TX, GA, IL)
BMW has a special financial product for Texas, Georgia and Illinois called Owners Choice which is similar to a balloon loan but with the advantages of a lease. It was intended to circumvent the issues related to customers potentially paying double tax on a lease and then taxed again on the vehicle buyout. Owners Choice puts the vehicle registration under the customers name to avoid the double taxation, this means for PHEV’s that have not been registered that the customer can benefit from the Federal and State tax rebates creating some of the best deals possible.
Reference: https://www.bmwusa.com/financial-services/financing-program.html
