9.05% MSRP with the usual $7500 rebate. The car just arrived yesterday or today.
I’m thinking of paying off early, so would it be worth much to stack some MSD to lower the money factor?
9.05% MSRP with the usual $7500 rebate. The car just arrived yesterday or today.
The money factor is marked up from buy rate and it’s unclear what is included in the upfront chargers. I think you could probably do better.
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Obligatory bat-signal for @ZZAutoDeals
Mind clarifying?
Happy to help OP - I can beat this in SoCal. Feel free to text me: (818) 314-1456
Can you put him into M50 for less? 
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I prefer the e40.
He can do that as well
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All things being equal the M50 would be a bit better because of lower money factor. But range not as good.
M50 would likely hold better value if paying off early, I.e. buying the car before lease end. Are BMW i4s worth buying out of lease early?
If the money factor is low on the i4 lease (significantly lower than the financing interest rate or opportunity cost of capital when using a loan), it makes more sense to just ride out the lease and re-assess the residual at the time the lease ends.
Closed end leases give a benefit where the lessee gets to choose if they buy the car at the end. This means they can capture positive equity, and reject negative equity. When someone buys out that lease early, they lose that optionality and are 100% exposed to the residual while also trapping a lot of equity in the depreciating asset.
If you’re driving a new BMW, you’re going to get hit by the new-car depreciation whether it’s a lease or a purchase.
The cost of the optionality is primarily the lease acquisition cost and the rent charge. If the money factor is low, you might as well pay the rent charge since it’s likely to be cheaper than the interest rate or opportunity cost of capital from the early buy-out.
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Thanks for the reply. I’ve been re-evaluating the buy out and will also be trying to get them to lower the mf which seems high at .0025. I will also be asking about stacking MSD
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I wish more people would understand that tying up their capital has an opportunity cost and basically paying cash means that you’re paying at bare minimum and effective 5.5% opportunity cost because you could just put that money into a short term treasury fund
Unfortunately, it’s actually the opposite here on LH.
The moderators have been telling people interested in leases how the reason leasing is bad is because after a 36 month term, the lessee is “left with nothing”.
In the sense they’ve paid a rent charge + depreciation, but have no equity remaining. And their conclusion is that financing a new car is smarter than a lease on a new car.
Effectively, the moderators fail to comprehend this opportunity cost of capital. Instead they oversimply the situation and assume equity is always a good thing (even if that equity came from the higher monthly cash principal + interest payments from the financing option).
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I believe BMW lease loyalty also confers a lower money factor… although you’ll need a broker/sales person to confirm.
Not on the i4, just i5 and i7 in the BEV lineup.
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Why does BMW need to make this stuff so difficult to understand without a good broker by your side? haha
Western region has 3 opportunities to capture an additional $1000 rebate on I4.
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Via corporate sales program, typically achieved by affiliation through your employer. This is like a “fleet” discount from other brands.
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Via selective conquest, this one is new. Only certain other brands qualify.
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Via BMW loyalty.
I don’t believe any of these will stack, but everyone should try to qualify for one. While the I4 doesn’t get the loyalty MF reduction, you can get an MF reduction through a one-pay (.00075)
BMW programs have been getting incrementally more complicated with every new iteration. Soon enough it’ll be like Audi or MBZ if they keep it up.
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I just hope it doesn’t get the Jeep levels of complication where options packages effect RV and MF
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