[Tuono7]

Anyone lease a '25 M2 recently and willing to share the residual and MF? Looking to sanity check the numbers a dealer is giving me. Thanks.

[jmg]

This was in October:

10k/36
MF 0.00265
57%

MSRP with inflated MF.

I'm still leaning towards the lease unless the interest drops on a purchase between now and when the car arrives.

[BIGW0RM]

It’s 0.00225 and 57% for 10k now in socal.

[Tuono7]

Thank you both. I'm only at the early stages in talking with the dealer. Assuming they are using a 57% residual, they want to charge me a 0.00522 MF, which is like a 12.5% APR. Ugh. Stealerships. Time to shop around.

[jmg]

Originally Posted by Tuono7

Thank you both. I'm only at the early stages in talking with the dealer. Assuming they are using a 57% residual, they want to charge me a 0.00522 MF, which is like a 12.5% APR. Ugh. Stealerships. Time to shop around.

They are marking up MF instead of MSRP, and that is way too much! Any idea what are their finance rates are right now?

[Tuono7]

Originally Posted by jmg

They are marking up MF instead of MSRP, and that is way too much! Any idea what are their finance rates are right now?

Yep. The info on leasehackr pretty much matches what you guys shared. Using that, I made a counteroffer. I'm expecting the dealership's answer to be 'no', but it never hurts to ask. Financing isn't in the cards right now, due to other financial constraints.

[wmo168]

Did the dealer accepted the lower mf?

[Ehloo]

57% residual helps a lot. my 2024 had like a 53% on a 7500 lease

normally they don’t inflate residuals on the most recent models unless they are not selling well.

my local dealer is sitting several m3’s and m4 now

[BIGW0RM]

I thought they cant touch the residules. And that they can only add .40 to the MF. So if its 0.00225 they can only make it 0.00265. MF rate x 2400 = interest rate.

If your being quoted higher than that, chances are you have credit issues.

[TNSC_M2]

Originally Posted by BIGW0RM

I thought they cant touch the residules. And that they can only add .40 to the MF. So if its 0.00225 they can only make it 0.00265. MF rate x 2400 = interest rate.

If your being quoted higher than that, chances are you have credit issues.

I was at the dealership today placing a new build order and they threw a .003 MF # at me, prior to even running my credit. It’s possible that they were just using a baseline # for the guy above. Obviously they were using it for me too.

[Dave07997S]

Those numbers I believe were the same for my 24 G87

[Ehloo]

you are correct, residuals are determined by BMW but they can manipulate them higher to lower lease payments. MF factor at buy rate can’t be manipulate as rates are high.

only three factors that determine your lease payment, final sales price, residual and money factor

on a lease you basically calculating a payment on the difference of the sales price and residual percentage. the higher the residual the lower amount your financing into the calculation.

most residuals on all cars are in the low 50% range. you figure an extra 4% on a 75k car is 3000. every 1000 off price is about 30 bucks less a month in payments

it’s interesting that the 25’s have the higher residual, normally they pump up the 24’s or old inventory to move those cars

i am seeing some large manufacture support on AMG’s and other brands. in some cases up to 15k in lease support plus the 6% mark up. that can bring your payment down a couple hundred a month.

cars are not selling

Originally Posted by BIGW0RM

I thought they cant touch the residules. And that they can only add .40 to the MF. So if it’s 0.00225 they can only make it 0.00265. MF rate x 2400 = interest rate.

If your being quoted higher than that, chances are you have credit issues.

[evdoho]

Originally Posted by Ehloo

you are correct, residuals are determined by BMW but they can manipulate them higher to lower lease payments. MF factor at buy rate can’t be manipulate as rates are high.

only three factors that determine your lease payment, final sales price, residual and money factor

on a lease you basically calculating a payment on the difference of the sales price and residual percentage. the higher the residual the lower amount your financing into the calculation.

most residuals on all cars are in the low 50% range. you figure an extra 4% on a 75k car is 3000. every 1000 off price is about 30 bucks less a month in payments

it’s interesting that the 25’s have the higher residual, normally they pump up the 24’s or old inventory to move those cars

i am seeing some large manufacture support on AMG’s and other brands. in some cases up to 15k in lease support plus the 6% mark up. that can bring your payment down a couple hundred a month.

cars are not selling

Residuals cannot be manipulated by the dealer. Period.
The residual will vary slightly depending on the annual mileage, but it is set by the bank and the dealer has zero control over it.

MF can be adjusted by the dealer, but as someone else stated, the maximum permissible mark-up is 0.0004% above what the applicant qualifies for.

The dealer may be over-inflating the MF for two primary reasons,

• So as to avoid quoting a MF that the client doesn’t qualify for (anything other than top-tier credit)
• To provide a cushion for F&I to sell products, they would be forced to reduce the MF but unknowing buyers will be tricked into thinking they are receiving F&I products “for free” if the payment stays the same

[captain slowly]

Originally Posted by Ehloo

you are correct, residuals are determined by BMW but they can manipulate them higher to lower lease payments. MF factor at buy rate can’t be manipulate as rates are high.

only three factors that determine your lease payment, final sales price, residual and money factor

on a lease you basically calculating a payment on the difference of the sales price and residual percentage. the higher the residual the lower amount your financing into the calculation.

most residuals on all cars are in the low 50% range. you figure an extra 4% on a 75k car is 3000. every 1000 off price is about 30 bucks less a month in payments

it’s interesting that the 25’s have the higher residual, normally they pump up the 24’s or old inventory to move those cars

i am seeing some large manufacture support on AMG’s and other brands. in some cases up to 15k in lease support plus the 6% mark up. that can bring your payment down a couple hundred a month.

cars are not selling

So much wrong with this post, but addressed by evdoho so I'm not gonna repeat it, but the last part is hilarious. Please show me the lots full of unsold M2s and M3s, lol. I waited 4 months for mine, my buddy can't get an allocation for his M3C until march of next year.

[Ehloo]

and so much wrong how people just can’t read. i never said residuals are determined by the dealer. I said BMW. BMW vs Dealer is not the same thing. hopefully you know the difference

there is 281 M3’s either inbound or sitting on the lot in US. that is a significant amount of cars which is considered the highest demand of the G8x platform. there is 21 within a 100 mile radius from me. doesn’t affect my market much but its winter and nobody running to dealership to buy a sports car they can’t drive for several months

268 M2’s inbound or sitting at the lots nationwide.

of course some of these cars inbound might be ordered cars but doesn’t mean it’s a guaranteed sold car. we have a full refundable deposit in California.

if you have ever leased cars before the high residual is a sign the sales are not what they have been or they need to move cars before end of the year

a 57% residual is not normal

market has definitely changed and the demand is different. i can’t speak why your friend can’t get an allocation till next year. how about call some other dealerships

i would to like to know how much more “wrong” is in my post

Originally Posted by captain slowly

So much wrong with this post, but addressed by evdoho so I'm not gonna repeat it, but the last part is hilarious. Please show me the lots full of unsold M2s and M3s, lol. I waited 4 months for mine, my buddy can't get an allocation for his M3C until march of next year.

[Tuono7]

Originally Posted by wmo168

Did the dealer accepted the lower mf?

They did, which was a shocker. I've got them at MSRP for the car, no second sticker (except a some wheel locks for $195, so... ok, whatever), and the buy rate on the MF.

Now, I just need to decide if I'm going to do it or not. Getting cold feet, because I feel guilty about having many sports cars, sport sedans, and trucks over the past decade.

I assume y'all are a bunch of enablers. So, tell me why I should do it.

[evdoho]

Originally Posted by Tuono7

They did, which was a shocker. I've got them at MSRP for the car, no second sticker (except a some wheel locks for $195, so... ok, whatever), and the buy rate on the MF.

Now, I just need to decide if I'm going to do it or not. Getting cold feet, because I feel guilty about having many sports cars, sport sedans, and trucks over the past decade.

I assume y'all are a bunch of enablers. So, tell me why I should do it.

My only comment, as a BMW client advisor myself, deciding whether or not you want the car should be the very first decision you make, THEN spend time discussing the price/residual/money factor/payment etc.

I feel bad for the client advisor if you did all of that and then simply decided you don’t want the car regardless

[captain slowly]

Originally Posted by Ehloo

and so much wrong how people just can’t read. i never said residuals are determined by the dealer. I said BMW. BMW vs Dealer is not the same thing. hopefully you know the difference

there is 281 M3’s either inbound or sitting on the lot in US. that is a significant amount of cars which is considered the highest demand of the G8x platform. there is 21 within a 100 mile radius from me. doesn’t affect my market much but its winter and nobody running to dealership to buy a sports car they can’t drive for several months

268 M2’s inbound or sitting at the lots nationwide.

of course some of these cars inbound might be ordered cars but doesn’t mean it’s a guaranteed sold car. we have a full refundable deposit in California.

if you have ever leased cars before the high residual is a sign the sales are not what they have been or they need to move cars before end of the year

a 57% residual is not normal

market has definitely changed and the demand is different. i can’t speak why your friend can’t get an allocation till next year. how about call some other dealerships

i would to like to know how much more “wrong” is in my post

Now I know for a fact that you're clueless. High residual means the car is worth more at the end of the lease, thereby making the lease payments cheaper, which would make it more attractive to the client. You seeing incoming cars doesn't mean they are actually available. Most likely they're all orders. You are welcome to live in your bubble, but the M2/M3 is not a distressed product.

[jmg]

Originally Posted by Ehloo

if you have ever leased cars before the high residual is a sign the sales are not what they have been or they need to move cars before end of the year

a 57% residual is not normal

Lease support programs will lower the money factor or offer incentives before they change the residual.