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Prices Paid: Buying & Leasing Experiences BMW 3-Series Prices Paid and Buying Experience
10318 messages, Last post on Dec 06, 2009 at 9:01 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: davidd3 (Aug 09, 2005 6:57 am) What do you think will happen? |
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Replying to: timny (Aug 10, 2005 5:07 am)
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Replying to: davidd3 (Aug 10, 2005 5:13 am) When did you speak with your dealership? Just curious -- mine hadn't heard a word about this (apparently).
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Replying to: timny (Aug 10, 2005 5:18 am) I raised this acquisition fee issue with my salseperson last week, when I first noticed reports in the newspaper about this aspect of the transportation bill passed by Congress. I don't know if they were aware of it or not. But in any event, their response was what I hoped for. How is it that you already paid the $900 acquisition fee? I'm capitalizing the acquisition fee (either $900 or $625, as the case may be). So a lower acquisition fee will mean a lower monthly payment. If you don't capitalize the acquisition fee, I thought that you pay it upon taking delivery. Apparently you paid this fee in advance and are now in the position of seeking a $275 refund? I placed my order in July (just beat the price increase) and will take delivery in September. My car is now in transit. I could possibly take delivery in late August, but I'm taking delivery in early September in order to avoid a double car payment in August (which is the last month for paying off my G35). I locked in the July lease program with an option on the lease program in effect at the time I take delivery. Perhaps you are in a similar situation (in your case maybe a June lock in and an August option). Anyway, in July the MF was .0025 and the residual was 59% for 3 years and 45k miles. Last week I made an inquiry to my salesperson about the August lease program. He told me that the MF went up and the residual stayed the same. Not what I was hoping for. But several days later I found information to the contrary on the net. It seems that the money factor stayed the same (.0025) while the residual went up to 60%. I asked my salesperson to double check. If the lease program did indeed get better from July to August, I asked him to let me know how much my monthly payment would be reduced and whether I could now lock in August with an option on September. I am awaiting his reply. How did this issue work out in your case?
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Replying to: davidd3 (Aug 10, 2005 5:41 am) So far, I've only put a deposit on both cars. The acquisition fee, however, is included in the contract ($900) on the lease. So I misrepresented myself indicating that I had already paid it; what I meant was that I am obligated to do so. Now -- this is interesting. I just called BMWFS. They tell me that they have no intention at this time of lowering their fee. But they also indicated that the fee they receive is less than $900 (wouldn't disclose the amount but indicated that the dealer makes a profit off the fee.). These fees have always been represented to me as imposed dollar-for-dollar by the leasing company, but obviously that is not the case! Now I am annoyed! As for your other point, the MF I am paying is exactly 0.0024 and the residual is 60%.
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Replying to: davidd3 (Aug 10, 2005 5:41 am) |
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Replying to: timny (Aug 10, 2005 6:07 am) 2) Since BMWFS already allows dealers to mark-up the acquisition fee, you can be sure that they aren't going to rebate any of these fees, after the fact, even if they end up lowering the fee. 3) The difference is only $275 either way... I understand the value of money, but this might not be enough to worry about.. 4) The person you talked to at BMWFS might be wrong about what they receive from the fee.. It is possible that they pay the finance reserve out of the fee, and only have the dealer remit part of it to them.. That doesn't change the fact that BMWFS sets the fee, and that it is non-negotiable. regards, kyfdx
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Replying to: timny (Aug 10, 2005 6:07 am) I have understood from Car_Man, guru of the Leasing Forum, that $900 is BMWFS' base acquisition fee for NY. Dealers can use the discretion to jack it up somewhat, but I supposed that $900 is what BMWFS gets no matter how much the dealer charges. I too am surprised that BMWFS gets something less than $900 and that dealers are profiting even on the "base acquisition fee." Maybe this also means that dealers profit even on the "base MF." And I can't believe that BMWFS has no intention at this time of lowering their fee, notwithstanding the change in law that will go into effect as of today. That's total nonsense. They will be receiving many a complaint from NYers if that's their attititude. It gives the appearance that they were taking advantage of NYers all this time rather than legitimately charging extra money to cover what they perceived to be a risk.
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Replying to: kyfdx (Aug 10, 2005 6:17 am) I think I mentioned walking out of the door on an Acura dealeship that tried to charge my $1025, on the excuse that this was an imposed acquisition fee set forth by the bank (when in fact I knew it to be $900). Things like that call into question for me what other misrepresentations I am being handed. I know dealers need to make a profit and it's not the $ that troubles me; it is the lack of transparency in such practice.
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Replying to: davidd3 (Aug 10, 2005 6:24 am) EXACTLY! |
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