Why many BMW dealers inflate MF and what to do about it?


Why many BMW dealers inflate MF and what to do about it?

Why? Because they like profit.
Ask to get base MF or find a different dealer.


Understand what buy rate is and how much they’re marking it up, then either negotiate down the mf or a bigger discount to account for the extra rent charge.

And to add on, most consumers don’t know how a lease works, so it’s a great place to hide the weenie


Even with my perfect credit score none were willing to come down to buy rate. How do you even negotiate MF?

Don’t see any quotes posted on this mystery bimmer…:mage::crystal_ball:

I spoke with ten BMW dealers from NY to MD. Some provided great discounts before incentives, but lousy MF. I asked them to give me base MF and they politely declined. Not sure what am I doing wrong.

You tell them you aren’t going to buy the car and leave.

Dealers have to make money, you have to decide how to spend it.

I’m sure they would happily give you base MSRP for a 5% discount instead of 10%

Otherwise it’s just an easy way to hide the profit by making the sale price as low as possible. See also: Trade ins

If they don’t want to come down off a marked up MF, then make an offer at the marked up MF but with a larger discount. If they say no that too, move on.


Thank you guys all for sharing your knowledge with a newbie. Buy rate is 0.00120 and marked up is 0.00178. Pretty hefty mark up if you ask me.

Buy rate for January is .00137 and they can mark it up 40 points. Every 20pts is roughly 1% of discount…so like others said, if they go high on MF you go high on discount to balance it out. Example: 14% off MSRP and Max MF = 12% off MSRP.


Thank you. Does buy rate very on a region?

Nope…same nation wide

Thanks. I negotiated discount percentage first before they presented me with inflated MF. Now they don’t want to budge on either:-)

What do the # look like.

Spend some time to learn to structure the deal. You can then guide their hand to what you want the payment to be.
For example, 14% at base MF or 15% at marked up MF, with XY incentives, and Z residual value, would result in F fees and M monthly payment

Well, now you learned how to negotiate better with the next dealer.

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I think the answer depends on the the F&I and salesperson gets paid. At least with the dealership I last worked with told me. Their salesperson gets paid a flat commission while the F&I guy gets paid based on how much interest is marked up and financial products.

If I get my monthly payment based on the base MF but they mark it up to the max while giving me a bigger discount to get to my monthly payment, then I don’t care

i like this

try brokers in here they may get you a better price even with their fees.