Comments on: How to lease a car http://www.bmwblog.com/2008/12/28/how-to-lease-a-car/ News And Rumors Covering The Auto Industry Sun, 22 Nov 2009 10:51:45 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: BernardP http://www.bmwblog.com/2008/12/28/how-to-lease-a-car/comment-page-1/#comment-81683 BernardP Wed, 31 Dec 2008 22:16:17 +0000 http://www.bmwblog.com/?p=7253#comment-81683 Thanks for the reply. I know that the acquisition fee is imposed by BMW Financial. I wanted to point out that it is hard to justify. In the end, it is an additionnal cost that has to be considered, along with interest rate and residual, when comparing a lease to an outright purchase. Not all car manufacturers impose an acquisistion fee. Thanks for the reply. I know that the acquisition fee is imposed by BMW Financial. I wanted to point out that it is hard to justify. In the end, it is an additionnal cost that has to be considered, along with interest rate and residual, when comparing a lease to an outright purchase. Not all car manufacturers impose an acquisistion fee.

]]> By: Horatiu B. http://www.bmwblog.com/2008/12/28/how-to-lease-a-car/comment-page-1/#comment-81358 Horatiu B. Wed, 31 Dec 2008 05:25:27 +0000 http://www.bmwblog.com/?p=7253#comment-81358 @<a href="#comment-80821" rel="nofollow">BernardP</a>: I tried to keep it simple and I used some "nice" numbers and I agree, the $1500 is a variable rather than a constant. Unfortunately, many dealers take the markup and BMW allows them to mark it up to a certain level - .0003 Lease acquisition fee is imposed by BMW Financial Services, think of it as a closing cost. @BernardP: I tried to keep it simple and I used some “nice” numbers and I agree, the $1500 is a variable rather than a constant.

Unfortunately, many dealers take the markup and BMW allows them to mark it up to a certain level – .0003

Lease acquisition fee is imposed by BMW Financial Services, think of it as a closing cost.

]]> By: BernardP http://www.bmwblog.com/2008/12/28/how-to-lease-a-car/comment-page-1/#comment-80821 BernardP Mon, 29 Dec 2008 21:57:01 +0000 http://www.bmwblog.com/?p=7253#comment-80821 Hmmm...Let's see... There is $1500 dealer markup over his cost for the car. Why not say "start with the price the dealer sells the car". The cost info is useful, but the $1500 is not a constant and varies according to model and market conditions. In principle, I have a problem with the dealer taking a markup on interest rate (money factor). Any profit the dealer wants should be reflected in the selling price. I also have a principles objection to the "lease acquisition fee" (and is there a termination fee?). Is there a "finance fee" when the car is purchased outright and financed? The lease acquisition fee looks like a surcharge, even more so if the dealer takes a markup on it. The dealer has every right to make a profit. This should be reflected in the selling price of the car, not in dubious surcharges and fees. Hmmm…Let’s see…

There is $1500 dealer markup over his cost for the car. Why not say “start with the price the dealer sells the car”. The cost info is useful, but the $1500 is not a constant and varies according to model and market conditions.

In principle, I have a problem with the dealer taking a markup on interest rate (money factor). Any profit the dealer wants should be reflected in the selling price.

I also have a principles objection to the “lease acquisition fee” (and is there a termination fee?). Is there a “finance fee” when the car is purchased outright and financed? The lease acquisition fee looks like a surcharge, even more so if the dealer takes a markup on it.

The dealer has every right to make a profit. This should be reflected in the selling price of the car, not in dubious surcharges and fees.

]]> By: BMW sales http://www.bmwblog.com/2008/12/28/how-to-lease-a-car/comment-page-1/#comment-80796 BMW sales Mon, 29 Dec 2008 20:38:49 +0000 http://www.bmwblog.com/?p=7253#comment-80796 This is fairly accurate, apart from any type of service, accessory, or any other item built into the price (tint, exhaust, floor mats, etc.), the vehicle will residualize differently. The dealer cost on rate and invoice price are slightly different too, but you're on the right track Horatiu. This is fairly accurate, apart from any type of service, accessory, or any other item built into the price (tint, exhaust, floor mats, etc.), the vehicle will residualize differently. The dealer cost on rate and invoice price are slightly different too, but you’re on the right track Horatiu.

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