Is Money Factor negotiable?

[salraf]

Originally Posted by nickl630

Yikes... .00188 sounds awful. They were giving .00152 about 15 months ago. (I know its a different time but damn)

About to finish my '16 lease. Just looked at my numbers. MF for me 3 yrs ago was .00131!!

What a difference.

[visi107]

To me the MF bumping doesn't have do be so black and white (base or i'm walking). I'd look at the whole package. If they discount the car a lot to where I want to be then I don't see anything wrong with it. What would be black and white is if they tried to hide it.

But yeah over the past few years it just keeps going up, if you are doing ED now your MF is .00223 . . . rate of 5.35%! crazy!

[White340]

When I leased my car in Dec 2015, the MF was 0.00131 or 3.144%. The Fed Funds rate was 0-0.25 during this time.
My new lease in Dec 2018 had a MF of 0.00182 or 4.368%. The Fed Funds bad during this period was 2.25-2.50%. Overall, even though lease rates are higher, so is the risk free rate so everyone is getting more on their savings then they were three years ago when you were getting nothing. 6m T bills are over 2.5% now vs just over 0% 3 years ago. Overall, its pretty much a wash.

[gatorfast]

Interest rates are rising so obviously this impacts the monthly payment of a lease negatively as it's more expensive to borrow money. This coupled with the huge reduction in residuals late last year made leasing an m3/4 almost ludicrous. The residuals have come back up a good amount in January so some decent deals can be had now.

[jmg]

Originally Posted by KANdaddy

Ya, I hear this all the time. Which is why I am surprised they won't budge to close this deal. They claim b/c they are being so "aggressive" on the MSRP they can't lower the MF. Different story than they originally gave me saying MF is up to BMW and they can't lower it. I'm being played

Technically they are right. MF cannot be negotiated down below the buy rate MF. The buy rate MF is set by the lender. This month it is 0.0188 I believe. The dealer can inflate the MF to recoup some of their profit, and 0.0222 is typical in this strategy. You can negotiate it back down to no lower than 0.0188 unless you make MSDs.

[afadeev]

Originally Posted by KANdaddy

0.00222

They lied to you.
So what do you do now?

You can go back and call them out, but you should fully expect that they will not admit to the lie, and if you push MF back down, they will jack up random fees somewhere else.... and will lie to you about that.

I don't mind negotiating.
I DO mind when vendors lie to my face, at work or in private life.

In that case, I ALWAYS fire the supplier, and line up a replacement.
Life is just too short to put yourself in the position of relying on, and always double-checking habitual lairs.

a

[Audio Fan]

My experience has been only if the dealer has marked the MF up from the BMW financial services rate. Some dealers do this routinely others never do. That's why it's good to know the current metrics (residual and MF) going in. They change monthly.

[Ibiza]

Originally Posted by visi107

if you are doing ED now your MF is .00223 . . . rate of 5.35%! crazy!

Don't forget that the ED discount was reduced by 2% (7% to current 5%). If this continues, US ED participants will drop off a cliff, but I feel that BMW NA is OK with this as Centers will be pleased with additional AVP revenue from US sales.