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  #1  
Old 02-25-2009, 08:08 AM
gizmoboy gizmoboy is offline
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MF Markup?

I was wondering if it is unreasonable for me to expect to be able to lease a car as a first-time BMW customer (with plenty of leasing experience) at the buy rate?

One CA is offering me buy rate plus a markup of .0004, (plus ED markup), and when I told him that looked like extra profit to me and we were already talking about a profit over invoice number, he said:

"Finance is finance. They have their own mark up."

I emailed him back to ask if this was BMWFS or his dealership he was talking about (no answer yet).
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  #2  
Old 02-25-2009, 08:25 AM
chrischeung chrischeung is offline
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What your CA is telling you is true - if Finance doesn't mark up the MF, they don't get anything out of the deal.

So it comes down to whether or not you think it's worth it to pay for this service. In which case, should the CA also work for nil and sell the car at invoice? Some folks do this by splitting up the profit between the selling price and MF markup - making it a win-win for the CA and finance person.

You may want to consider getting your own lease approval, and cutting down the work for the finance person, which typically means a lower markup.
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Last edited by chrischeung; 02-25-2009 at 10:00 AM.
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  #3  
Old 02-25-2009, 09:49 AM
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SteveinBelAir SteveinBelAir is offline
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I've never paid it. It's a negotiating point like the price of the car. Shop around.
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Old 02-25-2009, 10:19 AM
ZoomVT ZoomVT is offline
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i agree, i didnt pay a MF markup and i was a first time buyer... unless you dont want to pay the security deposit which means there is a small markup under BMWFS guidelines.

you should negotiate your price first (invoice + profit), and then deal with the MF and try to get base or a very small markup if they dont budge.
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Old 02-25-2009, 10:28 AM
anE934fun anE934fun is offline
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Quote:
Originally Posted by SteveinBelAir View Post
I've never paid it. It's a negotiating point like the price of the car. Shop around.
+2. I passed on three dealers for the simple reason that they marked up the money factor. There are dealers that don't mark up the money factor. There is a recession on at the moment. Money factor mark ups are so not tactics to use in a recession.
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Old 02-25-2009, 11:42 AM
gizmoboy gizmoboy is offline
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This is what I got back from the guy:

"The mark up in finance is not negotiable.

If you are interested in purchasing a car for ED, I can see if I can sell it for $1000 over the ED invoice PLUS the mark up in finance."

I thanked him and walked away. As I calculate it, the .0004 MF markup amounts to just over $1350 in additional profit for the loaded 328i vert, and a 1350 profit for the dealer is more than I consider fair in this market.

I was willing to go $1,000 in profit.
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  #7  
Old 02-25-2009, 11:54 AM
emilrealdeal emilrealdeal is offline
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use a board sponor for ur ED, they wont mark you up.
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  #8  
Old 02-25-2009, 05:46 PM
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The BoatMan The BoatMan is offline
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Quote:
Originally Posted by emilrealdeal View Post
use a board sponor for ur ED, they wont mark you up.
Incorrect. Some board sponsors mark up the MF.
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  #9  
Old 02-25-2009, 06:43 PM
gizmoboy gizmoboy is offline
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Quote:
Originally Posted by emilrealdeal View Post
use a board sponor for ur ED, they wont mark you up.
I'm going to talk to Irv tomorrow.

But there, I'm going to need to pay a delivery fee to get it into TX, yes?
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  #10  
Old 02-25-2009, 07:13 PM
emilrealdeal emilrealdeal is offline
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actually i wouldn't be incorrect as most do.... Just use one that will
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