BMWFS doesn't tier their rates based on credit quality - it's either a "yes" or "no" decision on qualification (unless they've changed something very recently).

Agree with jaaX3, the dealer is attempting to give you the maximum mark up allowed by BMWFS to the lease money factor (0.0004 or about 1% in interest rate terms). You should try to negotiate back down to the buy rate.

While we're on BMWFS lease terms, you should also be aware of the acquisition fee. Last time I checked the base fee was $625, but dealers are allowed to mark it up to $825 - just another source of profit to the dealer.

Nothing necessarily wrong with the dealer making some profit on the financing side of the deal, but you should be an informed consumer.

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2008 X5 4.8i, Jet Black, Tobacco Nevada leather & just about everything else (no vent. seats, no 3rd row)