Deal Check: 2020 BMW M340i Lease

That sounds more like a dealer marking it up (and using your credit as an excuse to make you not question it) than bmwfs marking it up. I don’t think they do a .0022 mark up for tier 2 (although someone with more knowledge will hopefully chime in)

1 Like

I’m okay with that because they threw in a $500 OL code to offset it.

Fees are paid with my $1,742 at signing plus part of the rebate. That’s why the Cap Cost is only reduced by $1,426 (what’s remaining of the 2k in rebates). Meaning Rent Charge and Tax are making up the final $160/month. I’m just not sure how that’s possible with a 8.6% tax and 3.36% annual interest rate.

This will show you how it’s possible.

Thanks! I think it might be in the same ballpark. I didn’t think the finance fees would be over $100/month but it makes sense when you use that formula. In my head I was thinking 3.36% annually of 17k.

When I go to sign the papers later today, they should break this down for me correct?

Stop trying to use the converted interest rate version of the mf.

That’s where I went wrong

I also want to say that I very much appreciate the help and advice.

People grossly misunderstand how that works. It isn’t 3.36% of the lease value, you’re paying interest on the entire vehicle price, just like any other loan.

In this case, your rent charge portion of the monthly payment is roughly $130 /mo

1 Like

That and you aren’t financing only $17k.

That makes more sense. Thank you for taking the time to explain.

1 Like

I think that was causing a lot of the confusion. Thanks for the help. The link you posted was a great tool.

Ask for higher discount or something. They said they wouldn’t budge on MF, but gave me like $500 to make it up. They didn’t mark it up too high, so basically evened.

They did the same for me. Wouldn’t budge on anything beyond 12% off MSRP pre-incentive so they threw in a $500 OL code. I don’t exactly break even but it offset most of the difference.

Hey i got quoted 10.1% off and full incentive no OL code. good job with the 12 and what is OL code?

As I understand it, the OL code is a dealer specific code that provides an additional amount off but not all dealerships have them and they have an expiration date.

1 Like

Has anyone gotten a quote with better than 12% of MSRP recently on a non-demo/loaner m340i? Only a few dealerships were willing to do 12%. I look at other deals and feel like my monthly is much higher. Maybe it’s because I’m not doing MSDs nor am I eligible for Loyalty.

That’ll do it

1 Like