[Jon_Hanson]

I should be getting my car any day now. The dealer initially offered a money factory of 0.00250 on my three-year lease of a 330i with 15,000 miles per year. I countered with 0.00200 with no security deposit and he said the best they could do would be 0.00239. What are other people getting as their money factors for this month?

[petesamprs]

These are the base money factors for January:

http://www.bimmerfest.com/forums/sho...d.php?t=126517

[Jon_Hanson]

I'm aware of the base money factors. That's why I counter-offered with 0.002, knowing that the base was 0.00195. I don't think that there's any way they'll give me the base rate. I was just curious what other people are getting for their money factors this month. I've also asked for no security deposit, which raises the money factor as well.

[FE9000]

I was offered .00195 with sec dep. .00215 without. They did tell me that they need to make .00020 on the money factor.

[SteveMD]

I was originally told 0.00250 but when the SA realized I knew what I was doing it magically became 0.00195.

[Jon_Hanson]

Originally Posted by SteveMD

I was originally told 0.00250 but when the SA realized I knew what I was doing it magically became 0.00195.

I assume that you paid a security deposit, right?

[petesamprs]

You can DEFINITELY get the base rate if you haggle, but expect to pay a security deposit. Just like the selling price of the car, it's a point that can be negotiated.

I got 0.00195 but paid a $550 deposit.

[espo]

When I picked up my car in October, I got the base rate for October (can't remember what it was) without a security deposit (since it was my second BMW lease). This was without having to ask for it.

That being said, I did only get $1000 off but I was buying a brand new 330xi in Buffalo going into the winter and the next nearest dealer is 75+ miles away..

The dealership needs to make money one way or another... If you knock them down to $500 over invoice for the car, they are going to make it up someplace else. I almost hate to say these, but when doing a lease, you almost need to "payment" shop instead of just going on the sale price of the car for this exact reasons shown above.. there is so many other places where a good deal can go bad.

[petesamprs]

Espo - you are exactly right. But i'll take you one step further and say you can't "payment shop" since your final deal can be affected by a down payment as well as any dealer fees that don't factor into the payment. Therefore, your goal is to minimize the total sum you pay the dealer. There are many inputs in leasing, and each can be tweaked to translate into more $$ in the dealer's pocket. Your goal is to minimize the money he makes, since he's making it off of you.

[espo]

Originally Posted by petesamprs

Espo - you are exactly right. But i'll take you one step further and say you can't "payment shop" since your final deal can be affected by a down payment as well as any dealer fees that don't factor into the payment. Therefore, your goal is to minimize the total sum you pay the dealer. There are many inputs in leasing, and each can be tweaked to translate into more $$ in the dealer's pocket. Your goal is to minimize the money he makes, since he's making it off of you.

I'll agree with that... Lets then take it to a logical conclusion, you should compare the deals using the NPV of all of your outlays over the course of the lease including the upfront costs and payments using some reasonable cost of capital (the rate of return on your money for the next logical use). Thats how every company compares their various payment options for equipment.