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.
Last Reviewed: 3/27/17 by @michael
Multiple Security Deposits (MSD) - DISCONTINUED, unless Grandfathered in on East Cost only
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. Each security deposit lowers the money factor by .00007. MSDs can be a good ROI.
Related thread(s): Downside of MSDs?
Executive and Demo Cars
Info subject to change, and is relevant as of 2/1/18
Exec/Demo cars can be leased and qualify for lease cash, loyalty + recent grad provided an equivalent new model of the same year has lease support from BMWFS. They do NOT qualify for Corporate fleet, USAA or any OL codes. Mileage under 5k is subject to a residual reduction of $0.25/mile less 500 miles. EX: loaner has 5000 miles. Penalty would be 5000 - 500 miles *.25 = $1,125 residual penalty.
If the loaner has > 5,000 miles, there is a further 4% residual drop in addition to the mileage penalty.
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.
Expected Discount/Selling Price
[Insert content here: this 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 model, like 2017 5-series.]
[Insert content here: ED is less advantageous than before, but it’s a great experience and good for those who want to custom order their BMW]
Maintenance and F&I Add-Ons
Excess Wear and Tear
Wheel and Tire Insurance
Historic Money Factor (MF) Data
Unlike most other brands, the money factor for BMW FS leases is the same regardless of model (with rare exceptions).
05/2018: .00166 MF
01/2018: .00152 MF
03/2017: .00140 MF
02/2017: .00134 MF
01/2017: .00134 MF
12/2016: .00134 MF
11/2016: .00136 MF
10/2016: .00136 MF
09/2016: .00136 MF
Build Out/Option Credit
AARP - DISCOUNTINUED
Acquisition Fee and Waiver
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 a money factor (MF) adder of .00050, which may be more favorable for shorter lease terms.
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 upon turn in.