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Discussion Starter · #1 ·
My wife signed a lease on a fully loaded 2008 335i convertible for European Delivery.

She came home with the lease contarct and there was no money factor on it.

So I called the dealer rep who arranged the ED and she said the money factor was: .00405

The lease is no money down, 36 months, 12K miles per year. The cost of the car is $54,090.00 and the monthly payments are $960.00

I think this Money Factor is way to high, but with my wife signing the lease and the car pickup in 2 weeks is there anything we can do?

Any help would be greatly appreciated.

Thanks,

Greer
 

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How are you able to get a 2008 in 2 weeks? My understanding is that 2008's won't be avail until late October and prices are not yet available.

For the MF, yes it seems high. I believe the current base rate is still .00325 per the leasecompare info. .00405 sounds like the base rate + .0003 ED adder + .00015 for SD waiver + .00035 dealer markup.

Paul
 

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My wife signed a lease on a fully loaded 2008 335i convertible for European Delivery.

She came home with the lease contarct and there was no money factor on it.

So I called the dealer rep who arranged the ED and she said the money factor was: .00405

The lease is no money down, 36 months, 12K miles per year. The cost of the car is $54,090.00 and the monthly payments are $960.00

I think this Money Factor is way to high, but with my wife signing the lease and the car pickup in 2 weeks is there anything we can do?

Any help would be greatly appreciated.

Thanks,

Greer
Hmm, let's see, I know CA is different since they don't have tiered rates like southern region, so I swore I saw that buy over there was something like .00325 + .00030 ED adder = .00365 + .00040 = .00405 x 24 = 9.72%... It's not that you're getting ripped off, it's just that the convertible is at the mercy of regional standard rates plus any applicable rate adders and no sales support rates. Even at buy rate (.00365 x 24 = 8.76%), you're still paying a half a point above prime, so how's almost one point going to break you? You're buying one of the most sought after cars in the market and getting a deal by leasing an ED. Sorry, but I'd rather pay $960 and have an awesome time in Europe driving it than paying over $200 more and picking up at the center. In retrospect, even with the rate, you're under a $1,000/month compared to most other folks. She already signed the deal, the ink's dry, chaulk it up to experience.

Should you go in there and try to re-negotiate the rate? IMO, no. You had plenty of time to do your homework, ask for a rate discount (even if they said no, it never hurts to try), and make a good deal on rate part of your negotiations. If you try to re-negotiatie rate now, they can say fine... let's renegotiate you to a higher rate.. you wouldn't like that would you? So leave it the way it is.

Did you even consider locking in rates two months ago when they were lower?

Oh, and FL335i brought up a good point.... your car is definitely not an 08. It's an 07. We just allocation yesterday for 08 September allocation, so there's no way you'd be signing a lease for an Oct pick up right now.
 

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Discussion Starter · #5 ·
I believe the current base rate is still .00325 per the leasecompare info. .00405 sounds like the base rate + .0003 ED adder + .00015 for SD waiver + .00035 dealer markup.

Paul
What is SD waiver?
 

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What is SD waiver?
SD Waiver=Security Deposit Waiver. There is always first and last, but in this case it appears they are first time BMWFS (BMW Financial Services) customers. If you haven't leased or financed before they will request an extra deposit on top of first and last. If you don't pony up they increase the MF for not putting down the additional deposit.

MSD=Multiple Security Deposit. A vehicle in which you can buy down your MF by .00007 for each month's payment you put down as a refundable deposit. If you have the cash posistion, it's a great deal IMO (there there has been debate about this). The Max MSD's you can do is 7 for a total MF buy down of .00049.
 

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Discussion Starter · #7 ·
Thanks for your help guys.
 

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Hmm, let's see, I know CA is different since they don't have tiered rates like southern region, so I swore I saw that buy over there was something like .00325 + .00030 ED adder = .00365 + .00040 = .00405 x 24 = 9.72%...
The MF should be .00395, not .00405 (.00325+ .0003 + .0004=.00395).
 

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Discussion Starter · #10 ·
The sales person messup big time on this one!

She told us we were getting a lease on a 2008, only problem is there are no 2008's so we will actually be getting a 2007.

Because of the salespersons error we will be able to get out of the lease and pay cash for the car.

Thanks for all your help guys.
 

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One thing we've been doing on the ED leases is re-leasing it once you have the vehicle back in the states.

We are doing a lot of these especially in states where the sales tax is on the monthly payment.
 

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We're still waiting on the 2008 prices to start (and possibly new buy rates, etc.) before making our final decision on lease versus buy.

I think the orginal poster's question is a good one ... we are going to keep the car for 4 years, but would be willing to give up at 3 if it made sense financially .... but the question is, at these dealer-favorable money factors, does leasing still make sense?

The leasing versus buying thread was helpful, but for this particular car at these money factors, what do people think?

Thanks in advance for the advice.
 

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.... but the question is, at these dealer-favorable money factors, does leasing still make sense?
When the dealer rates are "high", this makes bank leasing much more attractive. Unfortunately most people do not know they can lease outside the dealer.

In general, leasing makes sense if you always have a car payment. The best structured lease is a low money factor and a realistic residual value. This gives you the most options during and at the end of the lease.
 

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Tarry:

What is "re-leasing" ?
 

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One thing we've been doing on the ED leases is re-leasing it once you have the vehicle back in the states.

We are doing a lot of these especially in states where the sales tax is on the monthly payment.
Terry,
Could you please explain what the benefits would be? Are you offering better MF and residule than BMWFS with ED markup?
 

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Terry,
Could you please explain what the benefits would be? Are you offering better MF and residule than BMWFS with ED markup?
In most cases a better money factor with a realistic residual value. It can lower the payment by quite a bit.

I'm actually going to put together a special program for forum members and offer an even lower money factor than our normal rate.

Stay tuned ....
 

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She told us we were getting a lease on a 2008...
What she told you and what is in the lease paperwork are not the same thing. That is, oral agreements/etc mean nothing..

What you will be getting is in the lease paperwork which is signed (i.e., the contract is executed).
 

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I'm actually going to put together a special program for forum members and offer an even lower money factor than our normal rate.

Stay tuned ....
OK, here it is.

When getting a quote from www.LeaseCompare.com, enter the code "EURO" on the quote page (under the quotes) where it says "Ref ID" and click the arrow to the right of the box. The page will re-calculate the new payments using the discounted money factor.

This ONLY applies to vehicles that you are currently leasing with BMWFS (ED or not).

Please provide your feedback before I make an official announcement about this program.

Thanks.
 
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