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-   -   OT: 3rd Party Leasing Companies (https://www.bimmerfest.com/forums/showthread.php?t=117491)

Robert A 10-31-2005 12:11 PM

OT: 3rd Party Leasing Companies
 
I just assisted a client with leasing a new Volvo XC-90 2.5T. Wells Fargo offered the best deal with a MF of .00175, a 57% residual on a 12k/36mo lease. (Volvo's MF was .0028 and residual was about the same).

The local dealer went $3k back of invoice, which included $2k of trunk money (they went into their holdback). All in all, it seemed like a pretty good deal for my client.

Two questions come to mind:

1. Do 3rd party leasing companies offer uniform rates across car brands as do 3rd party financing companies? For instance, is it likely that the .00175 rate is also offered on a BMW?

2. Is there any way to shop rates with 3rd party leasing companies directly, or do you always have to get your information through a dealer?

Thank you,
Robert

BayAreaBMWFan 10-31-2005 02:31 PM

I am curious about how you went through the 3rd party. Did the dealer help you with that?

The leasecompare.com site is also a go od resource to shop third party companies.

Robert A 10-31-2005 03:42 PM

Yes it was through the dealer. Leasecompare was worthless.

Leasecompare's lowest MF currently is .00218 + $899 bank fee + $1,524 "facilitator fee" (garbage fee).

Wells Fargo MF on the same car is .00175 + $1,195 bank fee.

Net cost differential, per month, was about $80 savings in favor of the dealer.



Quote:

Originally Posted by BayAreaBMWFan
I am curious about how you went through the 3rd party. Did the dealer help you with that?

The leasecompare.com site is also a go od resource to shop third party companies.


kyfdx 11-01-2005 06:35 AM

Quote:

Originally Posted by Robert A
I just assisted a client with leasing a new Volvo XC-90 2.5T. Wells Fargo offered the best deal with a MF of .00175, a 57% residual on a 12k/36mo lease. (Volvo's MF was .0028 and residual was about the same).

The local dealer went $3k back of invoice, which included $2k of trunk money (they went into their holdback). All in all, it seemed like a pretty good deal for my client.

Two questions come to mind:

1. Do 3rd party leasing companies offer uniform rates across car brands as do 3rd party financing companies? For instance, is it likely that the .00175 rate is also offered on a BMW?

2. Is there any way to shop rates with 3rd party leasing companies directly, or do you always have to get your information through a dealer?

Thank you,
Robert

1) You can probably get the same rate (or your BMW dealer can) on a BMW... What the 3rd party leasers can't match is the BMWFS residual... Volvo actually encourages their dealers to use third parties, as the trunk money is usually not available with the Volvo Finance lease.... making the 3rd party lease cheaper overall.. With Volvo's generally poor residuals, Volvo would rather take the hit upfront (the trunk money), than by propping up the residual value and taking the hit at turn-in time..

2) Sites like leasecompare, or a local independent leasing company (they are in most cities, mostly geared towards higher mileage business customers) are about the only way you can shop 3rd party leasing yourself.. but, your dealer usually has access to better deals...

regards,
kyfdx

Robert A 11-01-2005 08:01 AM

You are correct about Volvo, the trunk money disappears if you use a Volvo lease + the MF is higher. Doesn't make any sense to me. Usually a distributor gives you cash incentives or interest rate incentives.

The other oddity is that this Volvo the same residual as the Porsche 2006 Boxter. (My friend just leased one.) Moreover, the Boxter lease was direct through Porsche whereas the Volvo lease was through a 3rd party.

Quote:

Originally Posted by kyfdx
1) You can probably get the same rate (or your BMW dealer can) on a BMW... What the 3rd party leasers can't match is the BMWFS residual... Volvo actually encourages their dealers to use third parties, as the trunk money is usually not available with the Volvo Finance lease.... making the 3rd party lease cheaper overall.. With Volvo's generally poor residuals, Volvo would rather take the hit upfront (the trunk money), than by propping up the residual value and taking the hit at turn-in time..

2) Sites like leasecompare, or a local independent leasing company (they are in most cities, mostly geared towards higher mileage business customers) are about the only way you can shop 3rd party leasing yourself.. but, your dealer usually has access to better deals...

regards,
kyfdx


LeaseCompare 11-03-2005 12:23 PM

The facilitator fee is for one particular lender in CA. For all of our other lenders there is no facilitator fee. This lender is not available to dealers in CA. They are usually more competitive there on lower credit tiers.


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