Quote:
Originally Posted by gotstocks
Thanks for the replies so far. I have never leased a vehicle, so I don't understand money factor's and residuals. I was asking specifics for a purchase, but I see many of you lease. Is that a better option for these vehicles? If so, someone educate me or point me in the right direction to understand more.
It looks like you negotiate a purchase price as well as some sort of interest rate? TIA!
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MF x 2400 = your interest rate.
Dealers can mark up the MF, just like they do on interest rate loans.
Your monthly payment is the difference between your negotiated sales price (and taxes/fees/MF and what not) and your residual value.
In terms of negotiating, a lease is identical to a loan.
Customer wants:
1) Lowest sale price. (BEFORE #2 below)
2) All available discounts (Loyalty/Military/BMW CCA Rebate/APR or Lease Credit)
3) Lowest possible APR/MF
Dealer Wants:
1) Profit
2) Return customers
3) Referrals
BMWNA sets residuals for each model/term/mileage, these can change monthly.