need help negotiating money factor

[jasonrhcastle]

Hi all. My X5 is scheduled to complete production on Monday. I know the current buy rate MF is .00275. The dealer is marking up the MF the full .0004 to a sell rate of .00315.

Now I got my X5 for $500 over invoice on order from my dealer. This would be my third BMW through them. The extra .0004 makes the payment almost a full $75 a month more. I want to know how I should go about trying to get the money factor at the buy rate or close to it.

Now I know....I got a FANTASTIC deal on my X5. However, I don't want to pay any more than I need to. So, I would like some opinions on how to handle this tomorrow with the sales manager (who is a friend of my wife's). Thanks guys...

[alexmish]

Try "multiple security deposits". You can go up to 8x the initially calculated lease payments. My mf is 0.00226 and residual 0.60 (for 36-mo lease / 12K miles per year).

The idea is to put down some money, which you will get back at the end of the lease (they are borrowing your money at 0% for you). That reduces your MF. In my case, it went down from 0.00290 to 0.00226. You would need to make an average of 10-12% yearly returns on these money to come out even. In the market of these days, I'd rather let em have fun with my money !