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Leasing and money factor

From what I can tell, negotiating a price and the money factor, which

you don't have control over, are the only two variables with a lease. I plan to order a configured car, which will take about two months to come in. During those two months the money factor can fluctuate. How much can it fluctuate though?

The way pre ordering works is that you put up $1000. That goes toward a down payment. Say the MSRP is $35000 and I negotiate $34600, a very practical price. Is that negotiation done at the time of signing or once the car comes in? If the dealer shows me monthly cost during signing using the current money factor, those cost won't be valid once the car arrives...since the new money factor will be used. The dealer could then increase the money factor even if it actually goes down. I won't know if he did it or if it was natural and don't have any control over that part. Can anyone comment on how it works?

Thanks, Brett

Reply to
brett
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With our dealer, everything was locked in and signed at time of order. Don't know if that's universal, though.

-- Larry

Reply to
pltrgyst

Well, like everything else about a car deal, the money factor is negotiable. The dealer gets a wholesale factor from whoever is doing the financing and they usually mark it up to you. It's difficult to get the real numbers, but sometimes calling around to multiple dealers will give you an idea.

Mike

Reply to
Mikep

I don't think that is realistic. Dealers aren't going to give out the money factor over the phone. Some will say it based on your credit, although it isn't. Others will won't you to come in.

Reply to
brett

I confirmed my local dealer does it the same way. Were you concerned about the rate dropping by the time the car reached you?

Brett

Reply to
brett

Why would I have cared? Our contract called for a fixed price in dollars, with the contract effective on the date when we picked up the car in Munich. Nothing that happened in the two months between signing the contract and accepting the car could have any effect on what we paid.

-- Larry

Reply to
pltrgyst

Do you know when they stop taking orders for 2008 models for example? I know lease incentives for the new models are running in the spring. I'm just not sure if I will order a new model before the year is out. There is probably some cut off date.

If I'm going to wait that long, I was thinking to take advantage of lease incentives after the new year. But do those apply to custom orders?

Thanks, Brett

Reply to
brett

Probably two and a half months before the 09s are supposed to be available.

Don't know where you're located, but the dealers around Washington DC sell everything they are allocated. They have no on-hand new stock to sell. To them, every sale is a custom order, and they don't care if it's lease or purchase.

-- Larry

Reply to
pltrgyst

That seems to be the case as my suburban MD dealer's e-mail promos invariably advertise their CPO vehicle stock. Every new BMW I've bought has been custom ordered - but waiting is half the fun!

Tom K.

Reply to
Tom K.

Eaxctly -- along with tracking the car through production on the BMW Web site, etc.

And, of course, if you don't pick the car up in Munich, you're just a fool.

-- Larry

Reply to
pltrgyst

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