What's the money factor added to leased BMWs for different scores?


The current money factor for a BMW 3 series in my area is 0.00093. This is assuming Tier 1 credit?

Does anyone know the average money factor added if you’re a tier 2 or tier 3 even? Thanks.

Any idea about the APR if my credit score is a 670?

Think it’s .0003 I’m not positive but seems to vary by dealership hiding mark ups in there. From my experience anyways.

Isn’t that a bit too low?

Yeah, I’m not sure, not an expert!

BMW doesn’t post it in their programs anymore, Ill pull the specific bulletin in a bit and update. But If I remember correctly 60-70 is the biggest bump when you go from Elite all the way down to Progressive Plus… And its a down step to get there, like bumps at 10,20,40,60 you get the idea. If BR is .00093 My standard desk now is .00133… BMW Max Bump is 40 points. If they indicate a credit issue I send to the Finance office at .00183 and let them figure it out.


I’m not answering your question, but in general I’d say if you don’t have a good credit score, leasing a luxury car probably isn’t the wisest financial move.

There are exceptions of course. But rare.

$60-$70 is the biggest you’ll pay from Tier 1 credit to the lowest tier possible for approval?

.00060-.00070 is what he is saying, not $60-70

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So this .00060-.00070 will be added on top the current MF on the car if you fall on that progressive plus?

Correct, adds on to the buy rate. Still potential mark up as well.

If my FICO 8 score is 670 on experian, I’ll be looking at roughly .00133 MF on the car?

670 For BMW is considered “Standard Plus”, and not the lowest. Other factors come into play but I would shoot for 113.

But like others have said, if you come into my dealership with non elite credit. You don’t have the advantage.

Hell, many dealers will charge that with tier 1 credit.

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Thats where I start to quote with T1.

You just need to figure out what the payment should be with your MF at .00113. Assuming you think that’s the bump you deserve and tell the dealer that’s the monthly you will pay and let them make it work.

I’ve emailed with a manager and they gave me a monthly quote already. Isn’ that quote the expected amount I’m going to pay. (Assuming I have elite credit?)

Yes… But ignore that quote. Do your research biased upon all the great information here.

Or Frankly with that question. Please go through and hire a broker.

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Which part about the quote should I ignore? If I get there they will just change up all the rates??

All of it.

We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.

  1. Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from Edmunds forums for your zip code
  4. Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
  5. Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
  6. Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.

With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.

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Got a quote back from my BMW dealer on a M340i. Not showing MF but the sale guy said they are marking it up 1% and that they will not go Base… That should be a .00133 ish MF ?.. I have excellent credit…

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