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Gap insurance

2K views 9 replies 8 participants last post by  Shon528 
#1 ·
Is it included in BMW leases or does have to be bought separately?
 
#3 ·
It is included as part of the acquisition fee.
 
#4 ·
Someone should scan the section of the lease document where this is stated. Toss it into a sticky and when it comes up every 3 weeks, we can link to it...

;)
 
#5 ·
Included.....100 percent
 
#9 ·
Pure and simple, the Acquisition Fee (a.k.a. lease inception fee or "bank fee") is pure profit for the lessor. In the early days of leasing it was usually just a coupla hundred bucks, then 425, then 480, then 625, 725, and now $795.00. BMWFS has always allowed/encouraged dealers to add what they want to this as well as the lease money factor to yield "lease reserve" (F&I profit) for the "back-end" of the deal. Whereas most lessors would let dealers mark up the LMF a full .001, BMWFS has always capped it at .0004. Up until 9/11, most dealers always got the full ($200 max) bank fee mark-up, and most also retained the full .0004 LMF mark-up. The average gross profit for an Internet deal say in the early 2000's was $1,500.00 over invoice. Since the financial crisis of 2008, that margin has been further whittled away, and often we write deals with super-skinny profit margins on the front (or less) and with zero bank fee mark-up plus zero LMF mark-up. Profit is not a bad thing in my opinion. Most F&I managers get paid commission just like CAs do. Like everything in a free market economy, supply and demand will dictate market price. Here on Bimmerfest, our members are lucky in that not only do they tend to score killer deals on the front end (often below the line), savvy buyers/lessees can do well all the way around...

:thumbup:
 
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