[icebeam]

Hi All,

I had some questions on locking in programs for a lease when custom ordering a car. I was hoping a dealer or a smart user might be able to answer some of these questions. Thanks!

1. Does a rate lock, lock in the residual % at the current time?

2. Does a rate lock, lock in the invoice price for the dealer at the current time?

3. Does a rate lock, lock in the buy rate for the money factor for the dealer at the current time?

4. Does a rate lock, lock in a conquest offer that BMWNA has made available at the current time?

5. How do you rate lock on a car that takes longer than 60 days to produce. For example you may have a build number but your production week is 1 month away.

6. Do you have to sign the lease agreement and run the credit for a lock to occur?

7. For special order cars like the Alpina does the lock work differently?

Thanks again!

[BEM-S4]

Christ - those are some good questions for your dealer. Some things are lockable, others are not.

[icebeam]

1) yes
2) pricing is negotiated between you and your dealer, get it in writing
3) negotiate your rate in your deal, that you get in writing
4) No can't lock pull ahead or conquest cash.
5) west coast dealers get 90 day rate lock. You can lock multiple times.
6) sign no, credit check yes
7) not sure

Got the following information and figured I would update my own questions.

[X3andOut]

Originally Posted by icebeam

1. Does a rate lock, lock in the residual % at the current time?

Yes.

Originally Posted by icebeam

2. Does a rate lock, lock in the invoice price for the dealer at the current time?

No, Ordering the car locks in the invoice, should any price changes from the manufacturer occur before delivery.

Originally Posted by icebeam

3. Does a rate lock, lock in the buy rate for the money factor for the dealer at the current time?

Yes. That's the definition of a "rate lock."

Originally Posted by icebeam

4. Does a rate lock, lock in a conquest offer that BMWNA has made available at the current time?

Now you are using "rate lock" as meaning "program lock." Whatever BMWFS decides are lockable programs can be locked. If in your region the conquest is lockable, then either a credit application or a priority 1 order will lock the program.

It depends on the source of the $$$. BMW FS programs are locked by a credit app. BMW NA programs that are lockable are done so by putting a car in P1 status.

Originally Posted by icebeam

5. How do you rate lock on a car that takes longer than 60 days to produce. For example you may have a build number but your production week is 1 month away.

You can't. Submit an app within 60 days of estimated delivery.

Originally Posted by icebeam

6. Do you have to sign the lease agreement and run the credit for a lock to occur?

The lease agreement is signed at delivery. The credit application with BMW FS is what provides the program lock.

Originally Posted by icebeam

7. For special order cars like the Alpina does the lock work differently?

No

MJB