Can you provide more info? I am sure anyone reading your comment will want to understand what you mean. If you have a social security number and I’ve had credit (credit cards, auto loan, mortgage, etc) then you should have a credit score.
If you’re legit ghost like Kimi from VinWiki, then no without big bucks behind you nothing.
Not even that, greencard, VISA, etc.
I moved to U.S. couple of months ago. I have SSN. I dont have credit history in US. In that case I will not fall under BMW FS Tier1 credit. Wanted to know what will be money factor in my case.
Not even sure you will be approved without any credit history. I will let brokers and other members comment.
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They will approve under international executive program but will not get tier 1 MF ie .00093. I will be higher. So wanted to know that number so that I can anticipate the lease cost
Oh that’s easy. Highest is 4 point or 0.00133. Let me know if you want help, I love assisting forum members.
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let me give it a try…If it does not workout I will get back to you
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Is there a correlation between MF and Owner’s Choice Finance Rate? Edmunds used to have information for the later but I was told no longer the way. Also how much can dealers mark up the rate?
Yes they are correlated.
When MF goes down, so does the rate of Owners Choice.
For April 2021
BMW MF is 0.00093 for top tier credit
BMW Owners Choice is 3.06% for top tier credit
For March 2021
BMW MF was 0.00086 for top tier credit
BMW Owners Choice was 2.xx% for top tier credit (I don’t have the exact number from March)
Owners Choice can be marked up 100bps / 1.0% pts.
Both share the same residual values for the same term & mileage limits
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You are absolutely amazing!! Thanks a ton!
If you don’t mind me asking one more question, is there a certain pattern for the correlation or fairly arbitrary? Like a certain percentage higher than the equivalent APR of MF? Say for this month, OC is about 37% higher than the MF equivalent rate.
No problem!
They are not perfectly correlated, sometimes the spread between the two narrows and sometimes it widens.
For example back in November 2019
BMW MF was 0.00128 for top tier credit
BMW Owners Choice is 3.75% for top tier credit
0.00128 x 2400 = 3.072% (implied interest rate)
(3.75%/3.072%) - 1 = 22% spread
By the way, OC was 2.84% in March 2021 so a 37.6% spread there vs. 37.1% this month in April
Other information you may be interested in
As a general rule of thumb, everything else equal leasing is the better option as you can also apply MSDs to lower the MF further. Leasing also includes GAP whereas OC does not. In TX, some dealers are given sales tax credits to subsidize sales tax to incentivize consumers (e.g. 6.75% sales tax becomes 1% sales tax). The only downside is that leasing has an acquisition fee while OC does not. There are three major exceptions to choosing OC over a lease:
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EV vehicles. You can qualify for both state AND federal incentives. Federal rebates aren’t always fully passed through by BMW in the form of a lease credit. The i3 is one vehicle where we’ve seen the entire Federal rebate passed through to the consumer.
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OC APR Credit/ OC loyalty incentives are higher than lease incentives. This changes every month and is different on every car however there are instances in which the incentives are higher for OC than leasing. e.g. in March 2021 for the X5 45e Hybrid the OC APR Credit was $2,500 in TX while the Lease Credit was $500.
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You have intentions to keep the car long term. In TX, you will be taxed on the full value of the lease or OC when you sign. With OC, you own the vehicle so all you need to do is either pay or refinance the balloon payment and the car is yours with no further tax obligations. With a lease you will be required to pay sales tax on the value of the vehicle if you wish to buy it at the end of the lease.
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Brilliant! Well put and exactly what I was curious about. This is should be added to the main post lol!
EV/PHEV is the intention for doing OC in Texas, for the most part. Also I believe next you lease a new BMW, OC can be traded in to offset the sales tax. I understand that lease program for the most part is better especially with sales tax credit.
This is actually news to me! I always assumed that the incentives are identical to lease programs. I will make sure to double check on this for future leases.
Again, thank you very much!! Cheers!
No problem, we’re big fans of educating our consumers on the various programs out there.
Our platform is designed to optimize these things for the consumer during the leasing / OC purchasing process. Feel free to PM us if you want to learn more.
P.S. You are correct on the sales tax offset upon OC trade-in as another benefit over leasing.
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Curious why a CPO lease through BMW FS would be less attractive than leasing a new car? Is there a reason it isn’t calculated on the difference in residual value between lease inception and lease end (which should be a smaller amount of value difference than new plus 36 months)?
Or is the value of the car after 6 years so low that BMW doesn’t want to deal with it, and so makes the CPO leasing program unattractive?
Used car residual values are lower, interest rates are higher, less incentives, you get fewer benefits (warranty, newer car, etc), so why bother.
The RV’s aren’t artificially inflated a few points like they are on a new BMW. As @AutoCompanion mentioned you are now going up against no incentives and no incentived mf. If you lease a vehicle with say 16,000 miles on it at inception then you are almost guaranteeing the purchase of new or at least to 4/32 spec tires not to mention the high likelihood that you may also be on the hook for a set of brake pads. The pads were OEM Jurid and came from Amazon ( I think ) and a shadetree mechanic swapped them out for me.
If you think tracking down someone knowledgeable about MSD’s is a challenge then I would suggest tracking down the one or two people in a metro area that know where this program is on the Infobahn and can use it…spoiler alert: it took a good few calls to various dealers when I lived in Atlanta at the time.
Keep in mind this is LH, where people go to the ends of the earth and will happily spend another 16 hours on a car deal for $4.72 / mo in savings. If the program was worth it, you would see a good number of deals on here utilizing it.
Did I save money, sure, was it worth it, maybe…I am not inclined to go down this road again. Efforts are better spent on looking for a loaner. At the time I wanted Imperial Blue which was somewhat hard to find. Now I am open to most colors.
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FYI , just talked to BMWFS regarding extension . Not sure if this is common knowledge , but they will extend a lease for up to 2 months with no commitment and up to 6 months if you have a BMW on order . My lease is up end of June, and with the current market being the way it is I’m considering extended for a couple of months unless some crazy deal come up . Looking for 7 seater SUV , so we all know that’s not going to happen …
I know that 2020 support was supposed to end in March but did it get extended for any models? There are TONS of 8-series and X5s around from last year…
BMW Ultimate Care 2022
I was just browsing on BMWUSA on the build site and noticed that they are now also offering Adding maintenance packages on the build. What caught my attention however is this…
For model year 2022 and newer vehicles sold or leased by an authorized BMW Center, BMW Ultimate Care coverage is transferable to subsequent purchasers, owners, or lessees. BMW Ultimate Care coverage is not transferable for all model years 2021 and older. Please ask your authorized BMW Center for details. The BMW Ultimate Care Program covers all factory-recommended scheduled maintenance services as determined by the Service Interval Indicator for all new eligible model year 2017 and later BMW vehicles. Specific additional items that need replacement due to normal wear and tear are not covered. The maintenance coverage period is for the first 3 years or 36,000 miles, whichever comes first.
Seems like, starting 2022 models, BMW is back to the old, maintenance transfers over guidelines ?
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Nice catch, I just noticed that too. Seeks like, from a transferability standpoint, the Ultimate Care coverage is back to the old maintenance plan as it was before 2017. Makes sense since a refresh of the original maintenance plan after a transfer costs only $100 anyway. It seems like they’re probably not going to stop lease transfers anytime soon either.