Conflicting Information

I've checked the Wiki and tried searching the forums, but I can't seem to find a definitive answer about this:

When calculating lease payments, should the MSRP number include Training, MACO and Dealer Markup? I've heard yes and no, which leads me to think that it can and should be included in the MSRP, but that dealers try to exclude it so that your lease payments are higher.

MSRP value includes base MSRP plus options and destination.

As for vehicle cost- this value includes maco, training, base wholesale, base options, and destination.

Add those the the capitalized cost (negotiated price) of the car along with any incentives (e.g., X-Drive credit, etc.). You can also pay them outside of the lease as up front costs.

No, MACO and training should not be added to the MSRP to calculate lease payment. If you look at the window sticker, you will not see MACO and Training in the MSRP.

MACO and training should be included in the invoice costs to calculate lease payment.

Invoice Costs= vehicle invoice cost + options' invoice costs + destination + MACO + Training

MSRP = vehicle msrp + options' msrp + destination

MSRP - Invoice = Mark up

Although MACO and Training are not itemized in the MSRP, it is essentially covered by the mark up from total invoice to total MSRP.

Ok, thanks. I have a quote that excludes MACO completely so I was confused. I thought MACO, Training, Markup (ie "Over Invoice") were all "optional" and could be included/excluded from Invoice and/or MSRP as desired by the dealer.

Originally Posted by ksh937

Ok, thanks. I have a quote that excludes MACO completely so I was confused. I thought MACO, Training, Markup (ie "Over Invoice") were all "optional" and could be included/excluded from Invoice and/or MSRP as desired by the dealer.

are you talking about the sale price, or what the dealer uses for a lease calculation?

"MSRP" is a number that BMW publishes, it is not 'optional'.

They can alter the sales price, but the MSRP is one number. I will assume it includes training and delivery, excludes MACO and the dealer can't jack up MSRP by the MACO as maco is jsut the cost of doing business and they pay it out of the profit.

I think....

Originally Posted by ard

are you talking about the sale price, or what the dealer uses for a lease calculation?

"MSRP" is a number that BMW publishes, it is not 'optional'.

They can alter the sales price, but the MSRP is one number. I will assume it includes training and delivery, excludes MACO and the dealer can't jack up MSRP by the MACO as maco is jsut the cost of doing business and they pay it out of the profit.

I think....

Yeah, I have a sales price quote that excludes MACO. My MSRP is (as others have stated on this thread) Base + Options + Gas Guzzler + Destination. My Sale Price is Invoice Base + Invoice Options + Gas Guzzler + Destination + Training + "Markup" of $500. There is no MACO in my Sale Price (unless it's baked in and the markup is actually ~$100).


Sorry if I'm being unclear, I thought the dealer could manipulate MSRP to make my lease payments higher. But from what you're telling me, he/she can't and it's a pretty static number. Thanks!

Keep in mind that Not all dealers pay MACO. I think in certain markets without major BMW USA ad support they get out of it. I found a dealer in Central California like that and at least one other... Possibly Adrian's dealership in Atlanta? Can't remember....

"MSRP" is not a real number- it is a theoretical or declared number.

I am surprised that a gas guzzler tax is allowed to be added to BMWs "MSRP" to make a higher MSRP for the lease.

Originally Posted by ard

"MSRP" is not a real number- it is a theoretical or declared number.

I am surprised that a gas guzzler tax is allowed to be added to BMWs "MSRP" to make a higher MSRP for the lease.

Just think of the gas guzzler tax as a "mandatory option"... lol

The MSRP for the purposes of figuring a residual on a lease.. is always the bottom number on the Monroney sticker..

Originally Posted by ard

"MSRP" is not a real number- it is a theoretical or declared number.

I am surprised that a gas guzzler tax is allowed to be added to BMWs "MSRP" to make a higher MSRP for the lease.

Its actually pretty nice that BMWFS allows the gas guzzler tax to be "residualized". NOt all leasing companies do it this way.