[jpagoulatos]

Hi Guys,

Who sets the base MF and residual number?

I think these numbers change monthly, but is the MF the same for all the series cars? I realize the residual is different for each car, does that change monthly as well? I am asking because when i shop for my next lease i would like to know if the CA is giving me fair numbers.

Thanks!

 

[jjrandorin]

Hi Guys,

Who sets the base MF and residual number?

I think these numbers change monthly, but is the MF the same for all the series cars? I realize the residual is different for each car, does that change monthly as well? I am asking because when i shop for my next lease i would like to know if the CA is giving me fair numbers.

Thanks!

Not sure I understand the question totally but I will give it a shot.

BMW tends to change plans every month. Sometimes, they carry their plans / offers for 2 months. In general, its best to assume that the plans / incentives / offers / RVs / Moneyfactors change at the end of whatever month you are shopping in, unless you specifically see in the offer that it runs longer than that.

For BMW, the residuals are different by car model. You can calculate the residual on the cars you are looking at with the information on the BMWUSA website. use the shopping tools, and drill down on the leasing offer. Keep drilling down (using the see more info links) until you get to the fine print of the offer.

Take the residual value of the car, and divide it by the MSRP and you get the residual percentage. this is the percentage for 36 month 10k a year. Deduct 1 percent from RV for 36/12, and 3% from RV% for 36/15 (so if RV calculates as 60% for 36/10, 36/12 would be 59% and 36/15 would be 57%

As for money factors, there is no way currently to accurately calculate the money factor from what is posted on BMWs website (or any other public way). With that being said, usually someone will get a quote from a dealer shortly after the month starts.

"base" money factor means without markup by the dealer. Dealers are allowed to mark up the money factor up to .00040 and this is a part of the negotiation process (just like the sales price of a car is). Some people feel that a dealer is ripping them off if they are not getting base money factor, but base money factor is not something a dealer is "supposed" to quote. Its just one negotiation point. For October (which is about to end) base moiney factor is .00136 - .00176 negotiable between you and the dealer.

BMW NA sets both of these figures. RV is non negotiable as it is set by BMW NA, and money factor is negotiable between the "base" and the max markup as I mentioned. To go below "base" you need to have some form of discount, like a corporate discount (.00020 discount) or to use multiple security deposits to reduce the rate.

Hope this is the info you were looking for.

 

[sc68z28]

Great answer above , Makes perfect sense.
Do you know the % difference between 36/10k and 24/10k ?
(17 330e)
Been searching, no can find.

---Bill.

 

[jjrandorin]

Great answer above , Makes perfect sense.
Do you know the % difference between 36/10k and 24/10k ?
(17 330e)
Been searching, no can find.

---Bill.

This is a good question. I am pretty confident about my information above, but am going to preface the following with "I think"...

"I think" that the difference in 24 month and 36 month residual value is 6 percent. I have this information in some notes I took from information that was provided by poster "Ninong", who was pretty famous here.

It would be nice if someone can confirm this information... but in any case, if my notes from ninong are correct, that would mean that the 17 330e has the following:

330e current incentive = 3k lease credit
RVs = 36/10 = 62% - 36/12 = 61% - 36/15 = 59% - 24/10 = 68%

Since its not negotiable, if you are shopping for a 330e and get a quote on 24/10 would you confirm RV is 68%, would like to confirm that I have this correct.

Thanks in advance.

 

[sc68z28]

....if you are shopping for a 330e and get a quote on 24/10 would you confirm RV is 68%, would like to confirm that I have this correct.

I have a 330e on the way. Ordered and locked in Sept. 36/10k, 62%, $51445. MSRP, -8% dealer discount, -$3k lease credit, -$1 loyalty, .00087 MF w/ 7 MSD's, $350 mo +tax.

But now I'm thinking maybe just 24/10. At 68% RV that would be $367 mo + tax, with everything else the same.

I will ask my CA before I make my final decision. I'll post results, thanks for your input.

---Bill.

 

[jjrandorin]

I have a 330e on the way. Ordered and locked in Sept. 36/10k, 62%, $51445. MSRP, -8% dealer discount, -$3k lease credit, -$1 loyalty, .00087 MF w/ 7 MSD's, $350 mo +tax.

But now I'm thinking maybe just 24/10. At 68% RV that would be $367 mo + tax, with everything else the same.

I will ask my CA before I make my final decision. I'll post results, thanks for your input.

---Bill.

That looks extremely solid :thumbup:

 

[Shon528]

I have a 330e on the way. Ordered and locked in Sept. 36/10k, 62%, $51445. MSRP, -8% dealer discount, -$3k lease credit, -$1 loyalty, .00087 MF w/ 7 MSD's, $350 mo +tax.

But now I'm thinking maybe just 24/10. At 68% RV that would be $367 mo + tax, with everything else the same.

I will ask my CA before I make my final decision. I'll post results, thanks for your input.

---Bill.

One thing to keep in mind. You can't mix portions of programs from each month. You have locked September's rates. You need to confirm if November still has the same 68% RV, the same lease credit, and the same loyalty credit. The base MF went down to .00134 which with the full MSD's makes your rate .00085. So as you can see, you have to calculate from scratch using this month's numbers. I wouldn't put too much faith in the $367/mo approximation.

Sometimes you can pop over to the forums on Edmunds to gets the current months rates. That's what I usually do for other makes of cars.

 

[TXPearl]

One thing to keep in mind. You can't mix portions of programs from each month. You have locked September's rates. You need to confirm if November still has the same 68% RV, the same lease credit, and the same loyalty credit. The base MF went down to .00134 which with the full MSD's makes your rate .00085. So as you can see, you have to calculate from scratch using this month's numbers. I wouldn't put too much faith in the $367/mo approximation.

Sometimes you can pop over to the forums on Edmunds to gets the current months rates. That's what I usually do for other makes of cars.

I think the lock is only specific to month (Sept.), not term/mileage. So he could still select September's 24 month program (which I think is what was calculated as the alternative above).

Curious to see if the +6% differential for 24 months is correct. Like jj, that's what I understood it to be, but would like additional confirmation. Sometimes, the 24 month lease is a equal/better deal.

 

[jpagoulatos]

Not sure I understand the question totally but I will give it a shot.

BMW tends to change plans every month. Sometimes, they carry their plans / offers for 2 months. In general, its best to assume that the plans / incentives / offers / RVs / Moneyfactors change at the end of whatever month you are shopping in, unless you specifically see in the offer that it runs longer than that.

For BMW, the residuals are different by car model. You can calculate the residual on the cars you are looking at with the information on the BMWUSA website. use the shopping tools, and drill down on the leasing offer. Keep drilling down (using the see more info links) until you get to the fine print of the offer.

Take the residual value of the car, and divide it by the MSRP and you get the residual percentage. this is the percentage for 36 month 10k a year. Deduct 1 percent from RV for 36/12, and 3% from RV% for 36/15 (so if RV calculates as 60% for 36/10, 36/12 would be 59% and 36/15 would be 57%

As for money factors, there is no way currently to accurately calculate the money factor from what is posted on BMWs website (or any other public way). With that being said, usually someone will get a quote from a dealer shortly after the month starts.

"base" money factor means without markup by the dealer. Dealers are allowed to mark up the money factor up to .00040 and this is a part of the negotiation process (just like the sales price of a car is). Some people feel that a dealer is ripping them off if they are not getting base money factor, but base money factor is not something a dealer is "supposed" to quote. Its just one negotiation point. For October (which is about to end) base moiney factor is .00136 - .00176 negotiable between you and the dealer.

BMW NA sets both of these figures. RV is non negotiable as it is set by BMW NA, and money factor is negotiable between the "base" and the max markup as I mentioned. To go below "base" you need to have some form of discount, like a corporate discount (.00020 discount) or to use multiple security deposits to reduce the rate.

Hope this is the info you were looking for.

Thank you so much

 

[jjrandorin]

I think the lock is only specific to month (Sept.), not term/mileage. So he could still select September's 24 month program (which I think is what was calculated as the alternative above).

Curious to see if the +6% differential for 24 months is correct. Like jj, that's what I understood it to be, but would like additional confirmation. Sometimes, the 24 month lease is a equal/better deal.

I calculated Novembers cause thats whats available to me on BMWUSA.. They could be the same, however.

 

[sc68z28]

Curious to see if the +6% differential for 24 months is correct. Like jj, that's what I understood it to be, but would like additional confirmation.

Well, I e-mailed my CA, here is what I got back...

" 65% residual at 24 months.* Your car is in transit should arrive in Oxnard on the 17th of this month."

Seems low? But what do I know. Looks like 36/10 for me.

---Bill.

 

[jjrandorin]

Well, I e-mailed my CA, here is what I got back...

" 65% residual at 24 months.* Your car is in transit should arrive in Oxnard on the 17th of this month."

Seems low? But what do I know. Looks like 36/10 for me.

---Bill.

Hmm.. well I calculated novembers numbers I thought when I did it (at 62 % for 36/10). Since RV is not negotiable I am not sure if they are talking about what you have locked or what it is now... In any case let us know what you find out when you are in person there.

 

[AksNasZasNas]

Well, I e-mailed my CA, here is what I got back...

" 65% residual at 24 months.* Your car is in transit should arrive in Oxnard on the 17th of this month."

Seems low? But what do I know. Looks like 36/10 for me.

---Bill.

The CA might have given you the 24/15 number which would be 65%. I believe the rate sheets that CA's get only list the 15k numbers that you use to back into the 12k and 10k numbers, right?

 

[jjrandorin]

The CA might have given you the 24/15 number which would be 65%. I believe the rate sheets that CA's get only list the 15k numbers that you use to back into the 12k and 10k numbers, right?

I think thats true (that the CAs get 15k numbers)... I remember Jon posting some 15k numbers and you basically add 3% to get to the 10k number and 2% to get to 12k.. which would put it in line with what I thought.

 

[sc68z28]

The CA might have given you the 24/15 number which would be 65%.

That is possible since he did not state miles. I've e-mailed him again.

---Bill.

 

[sc68z28]

Good call!

His reply... " 65% is at 15,000 miles /year, add 3% for 10,000 miles per year .* You are right "

---Bill.