|
OK, as promised:
Some of the items above are negotiable, and some aren't.
1. Residual value. BMWFS will set this, and it can't be adjusted. The rate they use does vary with milage however. The published rate is for 15k/year, 2% higher for 12k, and an additional 1% for 10k. Obviously, the MSRP it is based upon is fixed as well.
2. Inception Fee. This is fixed by BMWFS, but I seem to recall the dealer can mark it up by $100 or so. The inception fee has been growing with time, so I'm not positive on the specifics
3. Money factor. The base rate is fixed by BMWFS. The dealer is free to mark it up, however.
4. Title and registration. State specific, but you're going to pay these.
5. Other fees, like dealer prep. These are not required, and are presumably negotiable.
Also, there are a couple of programs that you can use to save a bit on a lease.
1. The MSD program. MSD stands for multiple security deposits. Basically, you can put up to 7 security deposits down on the lease. Each security deposit will reduce your money factor by 0.00007. The amount of the security deposit is your lease payment rounded up to the next $1000.
So, if your lease payment is $480, you can place 7 security deposits down on your lease (7x$500 = $3500) which will reduce your money factor by 0.00049. The security deposit is fully refundable. If you do the math, you'll find that this will reduce your lease cost by about $1000 for about a $500 payment. You can think of this as placing $3500 in a 3 year CD, with about 9.5% APR return.
2. European Delivery. This one is more fun. I've done two of these. Basically, by taking delivery of your car in Munich, BMW will give you a 7% discount. Furthermore, the car you order is not part of the dealer's normal allocation, ans is not subject to certain fees BMW charges the dealer. You'll find many dealers nationwide that will sell you the car at a deep discount. It's not too hard to get the car at around 10% off MSRP. Since your lease residual is based on the MSRP, and that doesn't change. you can save a lot.
The way the program works is this: You sign the paperwork and buy the car 2 weeks before you leave. You go to Munich, pick up your car, and can drive it around Europe for up to 6 weeks. You will then drop it off, and 6 weeks later, you car arrives here. (It's a little longer for the West coast.)
The upside is driving you car down the Autobahn, and enjoying Europe in general.
The downside is that you're paying for the car to sit on a boat. BMW does waive the 2nd lease payment, but they charge a slightly higher interest rate to cover this change, so you really just spread this payment over the other 35 payments.
|