Opportunity cost needs to be compared to returns post-income tax
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Yeah the residuals based on option load on specific trim levels is mind-boggling. I can’t imagine how often a sales associate would mess this up when trying to form lease offers.
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I’m not a BMW owner, so no loyalty.
- self employed, so not applicable
- conquest offer is for EV owners, so not applicable
- not a BMW owner, so not applicable
For the most part, that’s just trim level differences that get shown in places like ratefindr as options packages, which are actually just the designators for the the trim levels.
Hi, I’m looking to transfer out of my 2024 BMW i4 lease. I pay much less than your quoted price. Also here in SoCal! It’s white w beige interior and 19” wheels. Please reach out for more info! 424-234-8419
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Ask your bank and/or investment broker if they offer any perks. IE Morgan Stanley Reserved Living.
Is .0025 the March BMW money factor, or has my mf been marked up?
Depends on the car.
in this case, e40
.00210 is base for this model.
When I asked about my deal’s .0025mf, dealer said, “The money factor we are using is the current months money factor.”
So, that’s sort of a spin on the truth, I suppose. That’s the mf they’re using until someone contests it. That was in response to me sending them a quote from someone else last month that had mf of .0022.
.0021 - score 7.4 vs .0025 - score 7.0
If they’re discounting enough to offset it, it’s honestly not that big of a deal. 
If I take the $1500 extra interest away from my 9.05% off MSRP, then my discount is just 6.8% off. Part of me is thankful that I did enough research to get % off MSRP, but another part of me is FOMO when I read about the even higher % off that some people are getting.
That’s a more extreme example. 40bps of markup is equivalent to about 2% of list to the consumer so let’s use 8% front end and buy rate against 10% front end with 40bps rate markup.
In some instances this may even benefit you more if you live in a state that taxes on the sale price.
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