# The Finance and Lease Rate Thread



## Lori (Sep 21, 2002)

*Finance rates*

Jon,
Hi, 
I could really use some rock solid advice here. 
I want to finance my M3 through BMWFS. My dealer says he doesn't know what the current finance rate is and because he doesn't have an allocation for my M3 yet he can't tell me what the rate will be when the car comes in. How can I get the real rate from my dealer? Is there a way to "lock in" a rate for a specified amount of time? How long is the approval for a rate valid? I wouldn't want to wait 2 or 3 months for my car to get here just to have to let it go to someone who will pay more than I would. 
Thanks for your help,
-Lori


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## Jon Shafer (Dec 15, 2001)

Lori,

If you ask your dealer again now, he will know the rate
(they were announced to-day)...

A pre-approval from BMWFS now (which you can obtain
on your own, online) will effect a "rate lock" good until
February 2nd. If the rates go down, you can have the
lower one... You can't lose!

There are no "specials" for M3s, though...


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## Lori (Sep 21, 2002)

I just talked to my dealer about half an hour ago. He didn't seem like he was aware of any new rate.


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## Jon Shafer (Dec 15, 2001)

Lori said:


> *I just talked to my dealer about half an hour ago. He didn't seem like he was aware of any new rate. *


:tsk::tsk::tsk::tsk::tsk::tsk::tsk::tsk:


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## Lori (Sep 21, 2002)

Are you allowed to tell me the elite tier rate for an M3?


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## Jon Shafer (Dec 15, 2001)

Lori said:


> *Are you allowed to tell me the elite tier rate for an M3? *


Not publicly...


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## Lori (Sep 21, 2002)

Jon,
Wait a second, Feb. 2?, That's great! That gives me 3 months to get my car. If they can't get it in three months can it be extended.


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## Jon Shafer (Dec 15, 2001)

Lori said:


> *Jon,
> Wait a second, Feb. 2?, That's great! That gives me 3 months to get my car. If they can't get it in three months can it be extended. *


The M3 rate is a "standard rate". The rate lock is limited
to 60 days from the expiration of the current rate bulletin.

Have you tried any of the other Independents
online (e.g. Eloan, Peoplefirst)??


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## Lori (Sep 21, 2002)

Jon, 
Is the rate for a 2003 330ci totally slammed?


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## OBS3SSION (Oct 1, 2002)

Back a couple months ago, my salesman was telling me there was a real good rate going on 330's. He never told me what it was, because it would have been for something off the lot, which I didn't want. Was there in fact a special rate for the 330's? And is the 330 (specifically a 330i) got anything good going with what was announced today?


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## Lori (Sep 21, 2002)

Jon,
Should I consider the rate on the BMW site to be accurate with regards to the M3?
-Lori


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## Lori (Sep 21, 2002)

Since my dealer rarley has a 330ci on the lot, buying off the lot is pretty much out of the question. Does the special rate apply to ordered cars as well?


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## Lori (Sep 21, 2002)

Jon, 
Would it be possible for me to call you so we can talk privately?
-Lori


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## Weaselboy (Jul 7, 2002)

Lori-- I used Peoplefirst and got a far better rate than my dealer could offer. I just checked and their rate for a 60 month loan is 4.99. It takes a few minutes to apply on line and they send you a blank check to buy your car with. The check/rate is good for 45 days, so you could wait until about a month before your car is due in and apply.

I read yesterday the Federal Reserve is probably going to lower rates another 1/4 next week, so I doubt rates will be going up between now and when you get your car. Although, don't expect the Fed cut to necessarily lower your car rate either. Usually the Fed rate has quite a delayed impact on consumer loans.

I found the Peoplefirst process quite painless.


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## Bigtime-540 (Oct 22, 2002)

Jon Shafer said:


> *
> 
> Not publicly... *


Jon,

Would it be possible to email you privately? If so, please see my profile for email or private message options to let me know.

Thanks,
David
Boca Raton FL


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## rcc (Jul 21, 2002)

I did the same type of thing that Alan did. I checked 3 sources, applied for two, and got 5.04 from Wells Fargo and then 4.99 from CSAA (Peoplefirst). Both give you *checks* not *drafts* and Wells had the extra advantage of probably being able to turn their check into real cash (like a cashier's check or something) if my dealer balked at taking one of those checks (which they didn't) since Wells Fargo has plenty of branch offices near me.

The finance folks at the dealership then offered me 4.75% for 60 months.

So my advice is to do something similar. Even if you'd prefer to finance through BMWFS (which was my preference as well), line up outside financing in advance at terms you can live with. Then see if the financing folks can do better. Either way you win.

- Ray


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## jrubens (Aug 14, 2002)

can peoplefirst be used for an european delivery?

are the rates the dealers are quoting better than the rates on the bmwusa website?

Thanks


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *
> 
> The M3 rate is a "standard rate". The rate lock is limited
> to 60 days from the expiration of the current rate bulletin.
> ...


when will the BMWusa.com site lease rates be correct?!? It seems WAY off!:dunno:


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## Matthew330Ci (Sep 9, 2002)

CCs328Ci said:


> *
> 
> when will the BMWusa.com site lease rates be correct?!? It seems WAY off!:dunno: *


jon has previously mentioned that you should totally not pay any attention to manufacturer's calculators as they are incredibly unrealistic. (payments in reality will be much higher..)


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## ashecnc (Dec 20, 2001)

mgs333 said:


> *
> 
> jon has previously mentioned that you should totally not pay any attention to manufacturer's calculators as they are incredibly unrealistic. (payments in reality will be much higher..) *


actually the BMW site is way off as in to MUCH...when the 03s changed the numbers went out of site! hopefully, it will be fixed later


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## Jon Shafer (Dec 15, 2001)

Repost - "Calculate Your Own Lease" (archive)

-----------------------------------------------------------------

[ Follow Ups ] [ 3-series (E46) Message Board ] [ Msg. Board FAQ ]

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Posted by Jon Shafer, on September 16, 1999 at 15:37:57:

We had a power outage the other day, and I had to "work" a few deals the "old-fashioned" way... It's really quite simple! A lease payment is basically two things: 1) monthly depreciation, and 2) monthly rent.

The depreciation calculation is simply obtained by first calculating the residual - multiply the M.S.R.P. by the published percentage offered by the leasing company (e.g. BMWFS 65% for 15k/yr 328i)... Next, subtract the residual from the adjusted cap cost which is the "selling price" (+) the bank fee and luxury tax (if applicable)(-)any cap reduction. Then simply divide that amount by the term of the lease to obtain the "monthly" depreciation.

The "rent charge" calculation is also very simple...
Just add the adjusted cap cost and the residual,and multiply that sum by the lease money factor(e.g. .00305). That product is the monthly rent charge.

Now add the depreciation and the rent and you have the base monthly payment!! 

All that's left is the monthly tax, based on your county of residence...

:thumbup:


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## JST (Dec 19, 2001)

Jon Shafer said:


> *Repost - "Calculate Your Own Lease" (archive)
> 
> -----------------------------------------------------------------
> 
> ...


Thanks for reposting this, Jon. I used this at one point to make up an Excel spreadsheet that does all of the "back end" calculations. All I have to do now is plug in the numbers. Works a lot better than some on-line calculators, which don't always account for the difference between MSRP and the final capitalized cost (IOW, the discount you get).


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *Repost - "Calculate Your Own Lease" (archive)
> 
> -----------------------------------------------------------------
> 
> ...


so when I get the price of my car I need to ask for:
MSRP
residual
percentage rate.what is the 65% part :dunno: 
money factor

is that the numbers I need to ask for :dunno: I have not figured out a lease on my own, so sorry..i need help


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## Jon Shafer (Dec 15, 2001)

All that you need to know is:

a) Selling price; initial capitalized cost
b) Acquisition Fee (a.k.a. "bank fee", "administration fee")
c) Residual Value (expressed as a percentage of MSRP, and
the actual raw number).
d) Rent Charge Factor ("money factor").
e) Capitalized Cost Reduction ("down payment").

From all of this data you can verify the calculations...


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *All that you need to know is:
> 
> a) Selling price; initial capitalized cost
> b) Acquisition Fee (a.k.a. "bank fee", "administration fee")
> ...


thanks Jon, once I get the numbers later on, I may try to calculate it..if not.I may have to post it...thanks! :thumbup:


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## Bigtime-540 (Oct 22, 2002)

JST said:


> *
> 
> Thanks for reposting this, Jon. I used this at one point to make up an Excel spreadsheet that does all of the "back end" calculations. All I have to do now is plug in the numbers. Works a lot better than some on-line calculators, which don't always account for the difference between MSRP and the final capitalized cost (IOW, the discount you get). *


Yep, I put together an excel xsheet too and then I downloaded it to my pocket pc handheld and I take that to sit down with the dealer. I wonder if they don't like me.

I swear I'm not a geek.


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## Jason B (Apr 13, 2002)

Bigtime-540 said:


> *
> 
> Yep, I put together an excel xsheet too and then I downloaded it to my pocket pc handheld and I take that to sit down with the dealer. I wonder if they don't like me.
> 
> I swear I'm not a geek. *


That is funny.:lmao: I asked, "Where did you get these numbers from?" He replies, "ummmm that's what the computer says." I was like NO. I sat there and calculated the payment by hand, wrote NOW across the top and told him to go get it 'approved'. I can't imagine many 20 year olds doing that to the poor sales guy. Most people have no clue how to figure a lease payment and would have said OK to the payment that was $100 more a month than mine, plus 3K down :yikes:


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## rcc (Jul 21, 2002)

Jon,

You're right.

If I could have waited until November, I'm sure I could have gotten a better rate. Unfortunately, my lease was up Oct 1 and the cost of extending the lease an extra month would have eaten into the interest savings.

Plus unlike 3 years ago, the interest rates I could get on a loan from outside parties was low enough that I decided it didn't matter. Instead of getting into the new car at a lower payment, I decided to go with a down payment, roughly the same monthly payment and increase my flexibility wrt to back-end options N years from now.

- Ray


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## Jon Shafer (Dec 15, 2001)

rcc said:


> *---snip---
> 
> Which is why I financed my car instead of leasing it.
> 
> ...


I am with you all of the way, Ray....

:thumbup:

Lease penetration overall is declining nowadays,
from a peak at the height of the economic boom
of 2000...

I used to lease all of my personal vehicles.

I just received the title to my 328Ci in the mail,
and it feels kinda cool...


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## rcc (Jul 21, 2002)

I agree whole-heartedly with Jon. I've started to get irritated with folks who encourage others to think that dealers are trying to rip folks off if they don't give them 1200 above invoice or heaven forbid, if the salesman makes a mistake on the initial calculation of an invoice+X deal (or any deal for that matter) and forgot to add in a legit fee.

I think it's fine to try for the best deal you can get but that doesn't mean we have to be mean and nasty about it.

And much as I dislike it, the finance-room folks *are* going to ask you if you want undercoating, paint protection, interior protection, etc. Enough people bite on it that it makes them money so they're going to ask. I've decided I don't mind if they ask if they're nice to me when I politely tell them no  . And most of them are. They know how the game is played.

I've come to the conclusion that the key is leverage and a certain amount of trust. Knowing the dealer's buy rate is nice but doesn't really help that much. Yes, it gives you a minimum rate you can plug into your calculations but there's no guarantee that you're going to actually be able to get that rate. From a financial planning standpoint, you're probably better of just asking your dealer what they can give you because you *know* you can get that rate and can crank that into your worst-case calculations.

Moreover, you're not going to get the buy rate unless you've got a really good reason because if you do, the dealer and especially the finance manager's compensation is going to take a hit because they've given up some profit.

I've come to the conclusion that barring rare situations where you're dealing with someone like Jon, the best leverage on the finance front is to simply to find the best deal you can get somewhere else and then politely ask the dealer if they can beat it. If you let your salesperson know in advance, they can give the info to the finance folks and let them sweat .

If they can, great. If not, you've got a deal in your pocket you can live with and you go with that one.

- Ray


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## Bigtime-540 (Oct 22, 2002)

rcc said:


> *
> 
> I've come to the conclusion that the key is leverage and a certain amount of trust. Knowing the dealer's buy rate is nice but doesn't really help that much. Yes, it gives you a minimum rate you can plug into your calculations but there's no guarantee that you're going to actually be able to get that rate. From a financial planning standpoint, you're probably better of just asking your dealer what they can give you because you *know* you can get that rate and can crank that into your worst-case calculations.
> 
> ...


I respectfully disagree some of your points. To me, knowing the buy rate is leverage. Like I said earlier, I will be fair and give the dealer profit, but there's a difference between fair profit and just giving the dealer more profit than you could have.

Get the "best deal" somewhere else and see if your dealer beats it? Isn't that just letting your dealer take advantage of the advantage the other dealer had on you? You have no true foothold in that case. Dealer B offers you a deal that is $100 more a month than a fair deal based on knowing the buy rate, then dealer A just has to beat that with $90 more a month? Still not a fair deal.

I guess in some way you are right, _IF_ all you're looking for is a "best deal" that meets your budget and feels good in your pocket, then that is fine. But for me, I like to have that extra peace of mind that I _know_ I got a good deal.

David


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## ashecnc (Dec 20, 2001)

I wish I knew the real money factor and etc for the bmwusa site....the payment there is so insane


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## sandiegobob (Sep 6, 2002)

*Lease: good deal or bad?*

It's frustrating not knowing if my deal on my '03 M3 cab is fair or not. Why are money factors so secret? Seem like cleaner business to just reveal the % and go from there. So I guess my question is: if I post my lease terms would you be able to tell me if I'm getting into a bad situation? I don't want to mistrust my dealer, but.... some are better than others. Help, please


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## Jon Shafer (Dec 15, 2001)

Any reputable dealer should be willing to do a 
"print screen" of your lease deal prior to contracting.
The calculations should pencil out....



> _As previously stated in this thread_
> 
> *Regarding lease rates, there is nothing preventing
> me from at least expressing my opinion as to whether
> ...


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## sandiegobob (Sep 6, 2002)

*lease*

ok, then....thumbs up or down to:
'03 M3 cab msrp 63645, resid 61%, term 36m, cap cost red 0, factor 0.00295, total pymt w/CA tax 1068 or so

Thanks! by the way, I agre with the idea that a dealer should profit on the sale, that's business. I'm paying MSRP. I just want the best financing rate available.


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## Jon Shafer (Dec 15, 2001)

*Re: lease*



sandiegobob said:


> *ok, then....thumbs up or down to:
> '03 M3 cab msrp 63645, resid 61%, term 36m, cap cost red 0, factor 0.00295, total pymt w/CA tax 1068 or so
> 
> Thanks! by the way, I agre with the idea that a dealer should profit on the sale, that's business. I'm paying MSRP. I just want the best financing rate available. *


Bob, I'm going to go with a :thumbup:...

With a car like yours, there is a big potential for that
dealer "gouge"... That's not the case here;
looks like a fair and reasonable deal to me...

:thumbup:


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## OBS3SSION (Oct 1, 2002)

Let's see if I've got this correct...

Calculation of a lease on a '03 330i SP, PP, CWP, BX, NAV, Step

(MSRP) $44,645.00 x (Residual%) 54% = (Residual Value) $24,108.30

(Cap Cost/negotiated price) $42,550.00 - (Residual) $24,108.30 = (Adj Cap Cost) $18,441.70

(Adj Cap Cost) $18,441.70 + (Reg, Tags, etc.) $200.00 + (Extra Miles) $2,340.00 - (Deposit) $500.00 = (New Adj Cap Cost) $20,481.70

(Adj Cap Cost) $20,481.70 / (Term) 39 months = (Base Payment) $525.17

(Cap Cost) $42,550.00 + (Rediual) $24,108.30 = $66,658.30 x (Money Factor) .00230 = (Rent Charge) $153.31

Base + Rent = $678.48
Tax (MA 5%) = $33.92

Monthly Lease Payments = $712.40

Yes? No? While I think I understand the lease calculation... I have no clue if I did this right.


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## OBS3SSION (Oct 1, 2002)

Whoa!!! Cool... I just found this great online lease calculator. Check this out:

http://www.leaseguide.com/calc.htm

After using this calculator, I found my numbers to be only a few dollars off.


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## Mashuri (Aug 14, 2002)

I thought the residuals were at 60%. Have they really dropped that much??? Over $700 sounds kind of high for a ~$40K 330. Hell, I leased my $52K Corvette for about $730/month.


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## Lori (Sep 21, 2002)

This is off topic but what is HPS on your ordered car? I'm thinking power shade but what does the H stand for?


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## Mashuri (Aug 14, 2002)

Lori said:


> *This is off topic but what is HPS on your ordered car? I'm thinking power shade but what does the H stand for? *


Rear Head Protection System :thumbup:


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## Lori (Sep 21, 2002)

Mashuri, 
Thanks, now I have another option to sweat. Just what I needed.
-Lori:banghead:


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## ashecnc (Dec 20, 2001)

OBS3SSION said:


> *Let's see if I've got this correct...
> 
> Calculation of a lease on a '03 330i SP, PP, CWP, BX, NAV, Step
> 
> ...


damn, that lease calculation/payment seems HIGH..mine was only like $510 :yikes:


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## OBS3SSION (Oct 1, 2002)

Did you put anything down or have a trade-in? My calculation includes NO trade-in, and only the $500 deposit I've already paid.

Using that calculator I found, it would be about $640/month with my car in trade (roughly $2500 equity). I'm not sure how you got your payment so low.


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## Mashuri (Aug 14, 2002)

I just noticed that 53% was for a 39 month lease. My bad. 

Just FYI people the current buy rate for the dealers, assuming good credit, is .00205 with a 60% residual on a 36 month lease. This is for a 2003 330Ci so it will vary slightly for other models.


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## ashecnc (Dec 20, 2001)

OBS3SSION said:


> *Did you put anything down or have a trade-in? My calculation includes NO trade-in, and only the $500 deposit I've already paid.
> 
> Using that calculator I found, it would be about $640/month with my car in trade (roughly $2500 equity). I'm not sure how you got your payment so low. *


I put only 2000.00 down... 36/15000 per year


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## ashecnc (Dec 20, 2001)

Mashuri said:


> *I just noticed that 53% was for a 39 month lease. My bad.
> 
> Just FYI people the current buy rate for the dealers, assuming good credit, is .00205 with a 60% residual on a 36 month lease. This is for a 2003 330Ci so it will vary slightly for other models. *


I wonder if thats close to what I "can" get on a 330Ci convertible.. .00205 60% ??????? anyone know?!?


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## Mashuri (Aug 14, 2002)

CCs328Ci said:


> *
> 
> I wonder if thats close to what I "can" get on a 330Ci convertible.. .00205 60% ??????? anyone know?!? *


I would guess a convertible would have at least as good a residual as a coupe, if not slightly better...unless maybe you lived in Alaska.


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## ashecnc (Dec 20, 2001)

OBS3SSION said:


> *Let's see if I've got this correct...
> 
> Calculation of a lease on a '03 330i SP, PP, CWP, BX, NAV, Step
> 
> ...


you know when I got my 328Ci, he quoted me a base payment of 510.00 and when I get my bill thats exactly what it says..nothing more added...??????????? :dunno: But I do pay my car tax yearly in one lump sum added to my payment once a year?? does that sound right?!?


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## ashecnc (Dec 20, 2001)

Mashuri said:


> *
> 
> I would guess a convertible would have at least as good a residual as a coupe, if not slightly better...unless maybe you lived in Alaska.  *


hmmm, we'll see..and Ummm....NO Alaska!!


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## Jon Shafer (Dec 15, 2001)

Mashuri said:


> *
> Just FYI people the current buy rate for the dealers, assuming good credit, is .00205 with a 60% residual on a 36 month lease. This is for a 2003 330Ci so it will vary slightly for other models. *


:dunno:

Hhhhhhmmmm....

:tsk:


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *
> 
> :dunno:
> 
> ...


does that mean you cant????? :dunno: :dunno: :dunno: :dunno:


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## Mashuri (Aug 14, 2002)

Jon Shafer said:


> *
> 
> :dunno:
> 
> ...


I realize you're not allowed to say anything on that Jon. I have a friend in the business that has access to BMWFS. I can delete the post if it makes you uncomfortable or, worse yet, gets you into trouble.


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## Jon Shafer (Dec 15, 2001)

Convertibles are a bit higher than sedans and coupes
for obvious reasons, namely availability and demand...

Nobody has pegged the actual rate yet, btw...


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## Jon Shafer (Dec 15, 2001)

I am not allowed to post or broadcast the buy rates,
but that doesn't mean that you can't...


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## Mashuri (Aug 14, 2002)

Jon Shafer said:


> *Convertibles are a bit higher than sedans and coupes
> for obvious reasons, namely availability and demand...
> 
> Nobody has pegged the actual rate yet, btw...
> ...


Really? Is what I was told high or low??? Strange because the person telling me would have nothing to gain by misquoting it.


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## Jon Shafer (Dec 15, 2001)

There is an intervening variable here, and it goes
by the name of a security deposit (waiver w/rate adder??).

:dunno: 

Time to zip my lips...


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *
> 
> :dunno:
> 
> ...


.0025 does that sound possible on a converitble? :dunno:


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## Jon Shafer (Dec 15, 2001)

:thumbup:


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *:thumbup: *


.I was just guessing since I have no idea...I just went to bmwusa.com site and built one and the numbers on the site have dropped a LOT today.....have you looked...they were WAY up there. does that have anything to do with the numbers coming out this week?!?


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *CCs328Ci, I'll help you sort out your numbers after
> my day off tomorrow, okay?
> 
> :angel: *


:dunno: :thumbdwn: :thumbup:


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## Jon Shafer (Dec 15, 2001)

CCs328Ci,

Let's put this to bed right now...

Please fill in the blanks so that I can calculate your 
lease for you...

*MODEL* =?

*MSRP* = ?

*SELLING PRICE* =?

*TERM OF LEASE* =?

*MILES PER YEAR* =?

*DOWN PAYMENT/CAP REDUCTION * =?

*SALES/USE TAX RATE* =?

What payment did your dealer tell you?
:dunno:
What payment did you come up with in your own calculatuions??


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *Let's put this to bed right now...
> 
> Please fill in the blanks so that I can calculate your
> lease for you...
> ...


well I dont have those exact numbers right now...what I did was get the MSRP from bmwusa.com site. I kinda guessed on how much to take off MSRP, I dont even have a clue how much can be taken off. I discounted the price, as per my previous post, then did the formula. I wanted to know if it sounded legit, or done correctly or not. My lease payment now was calculated base payment only, nothing more added. I pay taxes for it seperate, does that sound right? when I ordered my 2000 328Ci, the quote he gave me was "base" payment and thats exactly what I pay..maybe you can explain this better. I want to know how to calculate this when I talk numbers soon..thanks:thumbup:


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## Jon Shafer (Dec 15, 2001)

CCs328Ci said:


> *
> 
> well I dont have those exact numbers right now...*


In order for me to help you, or for you to do this
yourself, you are going to have to do a little bit
of homework...

For anyone wanting to put a pencil to a lease,
you will find this worksheet helpful.

http://www.cuttermotors.com/jon_shafer/worksheet.pdf

Requires Adobe Acrobat Reader to view.

If you do not have Adobe Acrobat Reader, you can get it here now.










*Bimmerfest.com* - "Bringing The BMW Community Together"


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *
> 
> In order for me to help you, or for you to do this
> yourself, you are going to have to do a little bit
> ...


I was wondering if I did my formula correctly, if my res sounded correct and my money factor was realistic:dunno: I do know my payment is BASE ONLY!! on my CURRENT lease....


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## Jon Shafer (Dec 15, 2001)

CCs328Ci said:


> *
> How does this look as an example 330CiC
> MSRP = 45795.00 X RESIDUAL % 60% = 27477.00 (RESIDUAL VALUE)
> *


:thumbup: Your RV calcualtion is right on! 


> *
> CAP COST (NEGOTIATED PRICE) (TOOK $ 1800.00 OFF MSRP) 43995.00 SUBTRACT RESIDUAL 27477.00 = 16518.00 ADJUSTED CAP COST
> *


:tsk:
The residual is not part of the adjusted cap cost calculation..
(see worksheet)


> *
> ADJUSTED CAP COST OF 16518.00 + REG/TAG/FEES 200.00 + EXTRA MILES 1000.00 SUBTRACT DEPOSIT 500.00 = 17218.00 (NEW ADJUSTED CAP COST)
> *


Reg fees are part of drive-off, and again, your adjusted
cap is way off, because you do not deduct the
residual to calculate the adjusted cap... 
None of your other calculations are gonna work....

Go back to the math, only this time, try using the worksheet
so that you don't get confused...

http://www.cuttermotors.com/jon_shafer/worksheet.pdf

Requires Adobe Acrobat Reader to view.

If you do not have Adobe Acrobat Reader, you can get it here now.










*Bimmerfest.com* - "Bringing The BMW Community Together"


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## sandiegobob (Sep 6, 2002)

*Jon: Nov rates*

I know you can give me a thumbs up or down... My October lock on 03 M3 Cab (all options except 19's) is money factor of 0.00295 and residual of 61%. Please give me thumbs up if this is still good to keep and down if Nov rates have improved. Thanks!


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## Clarke (Oct 21, 2002)

Jon; All I have to say after perusing this and other threads is that you are an incredibly patient hardworking guy.


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## ashecnc (Dec 20, 2001)

Jon Shafer said:


> *
> :thumbup: Your RV calcualtion is right on!
> 
> :tsk:
> ...


THANKS!  :thumbup:


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## Bigtime-540 (Oct 22, 2002)

Clarke said:


> *Jon; All I have to say after perusing this and other threads is that you are an incredibly patient hardworking guy. *


DITTO!

...but...at risk of going to the well too many times....

Jon, the 39 month lease term BMW is now releasing. Who wins, dealer or buyer? With the new 48 maintenance plan is there a downside for the buyer going 39 months?


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## Jon Shafer (Dec 15, 2001)

Bigtime-540 said:


> *
> 
> DITTO!
> 
> ...


Everyone wins with the new 39 month ("split-term) leases...

We roll more cars, our customers get lower payments,
and the leasing companies get to stagger their maturities...

:thumbup:


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## ashecnc (Dec 20, 2001)

*money factor*

Jon, hate to keep asking this, but I would love to know how low the money factor "could" really go. On the 330 Cic you said a thumbs up:thumbup: for .0025, is .0024 possible? :thumbup: :thumbdwn: :dunno:


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## Jon Shafer (Dec 15, 2001)

*Re: money factor*



CCs328Ci said:


> *Jon, hate to keep asking this, but I would love to know how low the money factor "could" really go. On the 330 Cic you said a thumbs up:thumbup: for .0025, is .0024 possible? :thumbup: :thumbdwn: :dunno: *


:thumbdwn:

:tsk:


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## ashecnc (Dec 20, 2001)

*Re: Re: money factor*



Jon Shafer said:


> *
> 
> :thumbdwn:
> 
> :tsk: *


OK..so its .0025 thats the magic number :thumbup: :thumbup:


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## Jon Shafer (Dec 15, 2001)

*Re: Re: Re: money factor*



CCs328Ci said:


> *
> 
> OK..so its .0025 thats the magic number :thumbup:*


Close enough for me...


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## ashecnc (Dec 20, 2001)

*Re: Re: Re: Re: money factor*



Jon Shafer said:


> *
> 
> Close enough for me... *


thanks Jon, we'll see what happens now, thank you for the help :thumbup: :thumbup:


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