BMW Leasing Wiki

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.


Loyalty/Conquest/Corporate Fleet
Build Out/Option Credit
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.


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:

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 Service

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 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

Credit Offered for Unused Mileage

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.


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1 Like

Hi Michael,
May be this needs to be updated. OL aka Driving Event Certs are applicable on loaners is what was confirmed by BmwDave.


  • Residual hit over 5k + 7.5k
  • MF Adjustment for MSDs
  • Updated Corporate Fleet Program details
  • Added OL + USAA to available Incentives
  • Added Euro Delivery link
  • Added BMWCCA info

Thanks to @bmw_dave who laid out the new Corp Fleet rules back in Jan in his thread.

I’m also going to move all of the old questions to the landfill to make this easier to read. No offense to anyone’s post that I moved, however, many of the questions are old and outdated anyways, and in an effort to make this post easier to read, I felt they should be moved.

I’m also going to leave @MConte05 's historical 3 series data simply as a data point.


EDIT: Thread was cleaned up again on 6/7/19. A traditional “Wiki” does not have commentary. Please refrain from cluttering this thread with commentary.


3 posts were merged into an existing topic: Off Topic Landfill

Does BMW College grad extend to the graduate’s household? I feel like it only applies to the graduate, but I wanted to make sure.

College Grad is only applicable to the Graduate. They have to be on the contract as the main or co. Of all the incentives College grad is the most strict. I’ve had to jump though so many hoops and have had college grad turned down often because BMW financial services goes FBI when it comes to college grad!

1 Like

Is it possible to lease two cars with College Grad incentive? I’ve seen mixed answers on this

@michael For the unused mileage credit, it turned out you have to lease a new BMW/MINI 2 months prior or within 6 months your lease return. The credit has to be applied to your new account. I returned a MINI earlier this month and was expecting to see the credit applying to my end of term charges. I called MINI FS today and told them to apply it to the new BMW account under my wife’s name. Otherwise, we wouldn’t receive any credit for unused mileage.

I would think the answer would be yes. I have done it with Toyota for sure.

1 Like

This post is awesome! Lord knows I was lost on the forum thank you!!

Does anyone have any suggestion on how to get dealers to remove acquisition fees?

Is there a link with the explanation or qualification for each incentive?

They’ll remove it but it’ll cost additional interest. (50 basis points)

Worth it when you hack cheaper loaners practically down to nothing. (20% or more before incentive) and are using a shorter term like 24mos.

Totally lost I’m sorry :pensive:

Will the additional interest it cost be rolled into the monthly?

I’m really hoping to get a demo/loaner - can you please explain that part ?

If buy MF is .00150 (this is just an example), dropping the acquisition will raise this to .00200.

This is only worth it on shorter terms where the difference between RV and sell price/incentives is lower than average.


Okay thank you

I’m being told by a dealer that BMW will not allow pre-payment of the acquisition fee without increasing the money factor by 10 basis points. It seems that the dealer is confusing waiving the acquisition fee with prepaying it, but perhaps someone here can confirm whether pre-payment without an increase in the MF is available with BMW?

That’s my first time hearing that one. Obviously it’s not true.

Thanks! They also didn’t know about MSDs and had to confirm that with BMW as well.

If you pay $925 upfront then you pay 925 upfront, doesn’t really matter if it is acq few or not.

ok, thanks, that makes sense. I guess I got caught up with the pre-pay button on the leasehackr calculator.