What is the current money factor for m6

[azeemtn]

Hi Everyone,
I just want to check if anyone knows the current MF for 2014 M6?
My dealer has me at .00121 with 7 MSD's.. I'm thinking that is a bit high, but want to double-check.

Thanks!

[LSM]

Originally Posted by azeemtn

Hi Everyone,
I just want to check if anyone knows the current MF for 2014 M6?
My dealer has me at .00121 with 7 MSD's.. I'm thinking that is a bit high, but want to double-check.

Thanks!

Looks like buy rate is .0013 without any MSD's

[azeemtn]

Sorry if I'm missing something.

If the current rate is .00131, then that is (.00031x2400) =3.144% APR
With 7 MSD's, are you saying the buy rate is (.00021x2400)=2.904% APR ?

Why would I want to put down $12K to buy down the APR 1/4 of % ?

Did I screw up something in my math?

Thanks!

[M6-Coupe]

Originally Posted by azeemtn

Sorry if I'm missing something.

If the current rate is .00131, then that is (.00031x2400) =3.144% APR
With 7 MSD's, are you saying the buy rate is (.00021x2400)=2.904% APR ?

Why would I want to put down $12K to buy down the APR 1/4 of % ?

Did I screw up something in my math?

Thanks!

No you did not. you are absolutely right! and that's why I cannot understand why people go for this option to decrease their monthly payment for the price of nothing.
Let's do some simple calculations
If you lease a car with 120k MSRP (consider no discount) and 56% residual (67.2k) then your monthly rent fee is :
(120k+67.2k)*0.0013 = $243 with 0.0013 MF
(120k+67.2k)*0.0012 = $224 with 0.0012 MF
you just save $19 per month or price of 4 gallon gas in US

BTW, the MF is negotiable. I got 0.0009 MF after negotiation while the original MF dealer offered me was 0.0012

Goodluck

[LSM]

You guys are missing the fact that his dealer is upcharging the OP rate like crazy...12 MSD off buy rate would equal a much much lower money factor than he is actually getting....Although, I agree on the MSD, I never do them it doesnt save all that much anyway..

[SEWELLGT]

You guys are calculating it wrong. Current money factor is correct at .00130. MSDs reduce the factor by .00007 per, meaning max of 7 equates to a .00049 reduction. Money factor with full MSDs is .00081.

.00130 = 3.12%
.00081 = 1.94%

Based on the latest quote I got on a $137k M6GC, that's a savings of $98/month, which is ~$3500 over the life of the lease. Definitely a solid idea if you plan to keep the lease the full term.

[M6-Coupe]

Originally Posted by SEWELLGT

You guys are calculating it wrong. Current money factor is correct at .00130. MSDs reduce the factor by .00007 per, meaning max of 7 equates to a .00049 reduction. Money factor with full MSDs is .00081.

.00130 = 3.12%
.00081 = 1.94%

Based on the latest quote I got on a $137k M6GC, that's a savings of $98/month, which is ~$3500 over the life of the lease. Definitely a solid idea if you plan to keep the lease the full term.

My calculation was based on what dealer offered OP with 7MSDs vs current MF (0.0012 vs 0.0013)
But considering 0.00007 for MSD and 7MSD equal to 0.00049 then dealer offers 0.0017 without MSDs which is too high IMO.

[LSM]

Originally Posted by M6-Coupe

My calculation was based on what dealer offered OP with 7MSDs vs current MF (0.0012 vs 0.0013)
But considering 0.00007 for MSD and 7MSD equal to 0.00049 then dealer offers 0.0017 without MSDs which is too high IMO.

You are exactly right in your calculation which is why I was saying the dealer was upcharging the rate significantly. The OP was NOT being offered the buy rate minus 7MSD's...OP needs to go back and get buy rate first then worry about adding MSD's

[azeemtn]

Thanks for all the feedback.
I needed to know what the starting MF was before I could go back and figure what was going on. I hate dealers who pull this type of stunt though, probably will look somewhere else.

[LSM]

Originally Posted by SEWELLGT

You guys are calculating it wrong. Current money factor is correct at .00130. MSDs reduce the factor by .00007 per, meaning max of 7 equates to a .00049 reduction. Money factor with full MSDs is .00081.

.00130 = 3.12%
.00081 = 1.94%

Based on the latest quote I got on a $137k M6GC, that's a savings of $98/month, which is ~$3500 over the life of the lease. Definitely a solid idea if you plan to keep the lease the full term.

I usually keep my cars 8-12 months, then they go on swapalease, so I should have stated MSD's doesnt make sense for me, in your scenario makes sense until you calculate in for instance the current 10-15% rate of return in the stock market ( i actually saw a return of 26% in the last 12 months) ...You could make all that extra money work for you...Just a thought, obviously you know whats best for you better than I do!

[JoeyLeeBMW]

With 7 MSD your money factor is .0081 based on tear 1 credit.

[Twitch Massacre]

I'm lost. I have no clue what any of this means.

[M6-Coupe]

Originally Posted by Twitch Massacre

I'm lost. I have no clue what any of this means.

It's about leasing a car.
Your monthly payment is calculated based on the Sales price, MSRP, Residual, Money Factor and some fees such as document fee, Title and License and etc.
Let's have an example:
You are going to lease a car. MSRP 100,000 and Sales price 90,000 after negotiation. The residual 54% and money factor 0.0012.
Based on residual value of 54% this car will be $54000 at the end of lease.
You got the car for $90k so you owe $36K that you have to pay in 36 months lease term or $1000 per month.
In top of this payment you have to pay rent fee because you are leasing this car. The rent fee is calculated based on money factor (MF) and residual Valle (RV) and sales price (SP). Rent Fee = MF* (RV + SP).
in this case the rent fee is 0.0012 *( 54000+90000) = 172.8
so your total monthly payment is 1172.8 excluding tax and other fees.
assume the total tax and other fees $220 ( it's just a number I pick to show you calculations); so your monthly payment is $1392.8
In fact the money factor indicates the interest rate that can be calculated
as: Interest rate = MF * 2400/100. in this case the interest rate is %2.88
Now BMW give you the option of Multiple Security deposit (MSD) up to 7 MSDs and each MSD reduces the MF as 0.00007.
One Security Deposit (SD) is defined as the monthly payment rounded up to the next $50 (so if a leasing plan requires monthly payment of $1392.8 per month including taxes, the SD value is $1400).
Now if you put 7 MSDs ($9800), then your money factor reduces to 0.00071
and your rent fee reduces to $102.2 per month. It means you can save around $70 per month.

[Twitch Massacre]

Thank you for that. I was completely lost as I have never really considered leasing a vehicle so my understanding of it is very basic. I have always assumed it is better to purchase and then trade the vehicle in for another at any point in time and pay the difference if any.

[mr-karim]

So if the car was purchased for $125000 +about $36000 upgrades, how much can I trade it in for in 1 year? (let's say in October) :O

[M6-Coupe]

We were talking about lease term of New BMW.
I have no idea about Canadian car business but in US if you purchase a car (M6) for 125K (MSRP) and upgrade it for 36K, and want to trade in after one year you will lose a lot! Maybe 30K or more

[GOLFFRR]

Originally Posted by azeemtn

Hi Everyone,
I just want to check if anyone knows the current MF for 2014 M6?
My dealer has me at .00121 with 7 MSD's.. I'm thinking that is a bit high, but want to double-check.

Thanks!

IF you would like a comparison quote please let us know. You can reach me via PM or you can email David at bmwdavid@icloud.com

[Twitch Massacre]

Originally Posted by mr-karim

So if the car was purchased for $125000 +about $36000 upgrades, how much can I trade it in for in 1 year? (let's say in October) :O

In my experience, upgrades often times have very little influence in resale or trade in value. Unless you are talking about some full-blown reputable tuner stuff like Gemballa, aftermarket accessories are often overlooked by dealers unless you personally find the right buyer.

[LSM]

Originally Posted by Twitch Massacre

Thank you for that. I was completely lost as I have never really considered leasing a vehicle so my understanding of it is very basic. I have always assumed it is better to purchase and then trade the vehicle in for another at any point in time and pay the difference if any.

Thats what I always did until I moved to California, there is no tax credit here, so you pay full tax on every new purchase you dont get tax credit for your trade

[LSM]

Originally Posted by M6-Coupe

It's about leasing a car.
Your monthly payment is calculated based on the Sales price, MSRP, Residual, Money Factor and some fees such as document fee, Title and License and etc.
Let's have an example:
You are going to lease a car. MSRP 100,000 and Sales price 90,000 after negotiation. The residual 54% and money factor 0.0012.
Based on residual value of 54% this car will be $54000 at the end of lease.
You got the car for $90k so you owe $36K that you have to pay in 36 months lease term or $1000 per month.
In top of this payment you have to pay rent fee because you are leasing this car. The rent fee is calculated based on money factor (MF) and residual Valle (RV) and sales price (SP). Rent Fee = MF* (RV + SP).
in this case the rent fee is 0.0012 *( 54000+90000) = 172.8
so your total monthly payment is 1172.8 excluding tax and other fees.
assume the total tax and other fees $220 ( it's just a number I pick to show you calculations); so your monthly payment is $1392.8
In fact the money factor indicates the interest rate that can be calculated
as: Interest rate = MF * 2400/100. in this case the interest rate is %2.88
Now BMW give you the option of Multiple Security deposit (MSD) up to 7 MSDs and each MSD reduces the MF as 0.00007.
One Security Deposit (SD) is defined as the monthly payment rounded up to the next $50 (so if a leasing plan requires monthly payment of $1392.8 per month including taxes, the SD value is $1400).
Now if you put 7 MSDs ($9800), then your money factor reduces to 0.00071
and your rent fee reduces to $102.2 per month. It means you can save around $70 per month.

Well written!

[M6-Coupe]

Originally Posted by LSM

Thats what I always did until I moved to California, there is no tax credit here, so you pay full tax on every new purchase you dont get tax credit for your trade

Exactly! This is the key for state of California. In fact they make easy money this way. whenever you buy a car you pay tax and when you sell the car, the next person who buys the car pays tax again.

[M6-Coupe]

Originally Posted by Twitch Massacre

Thank you for that. I was completely lost as I have never really considered leasing a vehicle so my understanding of it is very basic. I have always assumed it is better to purchase and then trade the vehicle in for another at any point in time and pay the difference if any.

I do the opposite! I usually negotiate too much on both sales price and money factor. This way I'm not too worried about trade in in future.
When I traded my first 650 after 18 month, I was about 6K upside down, but I got 8k discount on the second one to wash out that 6k and pay drive off. after 4 months I traded in that 650 while I was 8K upside down, but I got discount (20k) on my M6.
you also can get lease return credit whenever you trade your BMW with a new one. to give you an idea, For my M6 I am paying almost the same payment I used to pay for 2013 650i M-sport while I was paying again the same payment I used to pay for 2012 650i
It's really interesting the way lease term works. If you can get 10K off MSRP for a 110K car, your monthly payment is much less then the monthly payment of a 100k car (MSRP)