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BMW X3 Lease Questions

Karen_CMKaren_CM Posts: 5,018
Post your X3 lease questions and experiences here.

Community Manager If you have any questions or concerns about the Forums, send me an email, karen@edmunds.com, or click on my screen name to send a personal message.

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi everyone. Please use the following discussion to post any questions that you have about leasing a BMW X3. Thanks.

    Car_man
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  • timmbojtimmboj Posts: 123
    The perfect addition to the X3 line of forums! Good idea. Thanks Car_Man!
  • brabra Posts: 14
    Need quick opinions: I just put down a security deposit for a 2005 X3 3.0i Premium, sport...etc....only things it doesn't have are Nav, and parking control.
    MSRP 46,695...money factor .0014..... Trading in a 1997 328i w/123.5K miles...the gave me a trade in of $5,800.. Lease terms.....no money down....$454/month.....w/ 17K miles/yr.....39months.. I need a immediate opinions on this deal.. thank you...
  • brabra Posts: 14
    I'm signing the lease tomorrow morning 9/1/05 at 9:30am CT .....i've put down a $1000 deposit and I'm now concerned that I may have screwed myself. I feel that I can go into the negotiation and call them out on the money factor. 've read some postings and it seems that I should have a money factor of .0010 as opposed to .0014? I bumped up the miles due to the fact that I'm a traveling sales person..
    Your thoughts?????
  • kyfdxkyfdx Posts: 29,141
    Does that include taxes?

    Are they writing you a check for the 328i? Or, are they keeping all of it for downpayment and inception fees?

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • brabra Posts: 14
    It does include tax and yes they are using the car as a downpayment to buy down or Cap Cost Reduction. When I run this deal through a lease calc., I continue to pull monthly lease paymt. in the range of $425/month. Is the addtnl. mileage (i.e. 17K...extra 2K/yr) bumping up the paymt?
  • brabra Posts: 14
    Addntl info: So the deal is that I will trade in my 328i (123,000m) and in need of repair for $5,800. No money will be exchanged at time of transaction...$454.39 from the $5,800 will go toward the first paymt.. MSRP for the 2005 X3 3.0i w/all options except Nav.& backup assist is $44,695. Negotiated price is $43,570....Lease: 39mnths 60% residual 17K miles/yr for $454.39.
    When I punch in those #'s I'm still getting a paymt. around $425? Your thoughts...
  • brabra Posts: 14
    Let me add a couple other pieces of info on this deal: My trade in is a 97' 328i...Kelley Blue Book trade in shows: $4,700...BMW is "giving" me $5,800. The money factor used in this "Aug. 31st" transaction w/pickup today is .0014. Do the #'s shown above in the 2previous messages correspond to a good deal?
    Thx..
  • bdr127bdr127 Posts: 950
    A couple things..... Yes, the mileage is definitely adding to the price (BMW adds 15 cents per mile if you buy at the beginning of the lease, 20 cents at the end). 3000 extra miles at 0.15 = $450.

    Another thing to factor in is fees (bank fee, dealer admin fees, etc).... Are those included in the price? Those could add $1000 (or more) to your total price.
  • brabra Posts: 14
    Thank you brd127...
    Do you think this is a legit deal? Should I back out this morning? I'm not comfortable w/it right now...

    Thx..Brad
  • brabra Posts: 14
    brd127...you are correct there are about $1000 in various fee's...bank fee's, etc.. I'm just not totally comfortable w/the fact I'm trading in my vehicle and still hvae a pmt. of $454.. Although I must keep into consideration that it has an MSRP of $45.7K....your thoughs..

    Thx again,
    B
  • kyfdxkyfdx Posts: 29,141
    Agreed... the mileage is probably adding $1000 to the cap cost...

    It is hard to know the exact breakout, and staying away from the recommendation that you not put that amount of money down on a lease..... I would insist on them using the base rate of .0010.... That alone would drop the payment by around $30/mo...

    If your trade-in of $5800 encompasses all of your upfront charges.. including first payment, security, etc... Then getting the base rate would make it a decent deal... at least from the information we have..

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • brabra Posts: 14
    kyfdx.... thx...yes the $5,800 includes all upfront charges...i walk in w/the car...trade it in and leave w/a car...no cash outlay. So you feel that the Aug. 05' money factor should be .0010? If so, I'll push that fact and I could also have them drop the mileage to 16K/yr....would that drop the payment another approx. $20/month?

    Thx. B
  • kyfdxkyfdx Posts: 29,141
    I am sure of the money factor.. Just dropping that to .0010 will save $30/mo.. I'm not sure of the mileage hit.. But dropping 1K miles per year should save another $13-$14 per month..

    Don't count on them agreeing to this... Dealers that mark up the money factor like to stick to it... But, it is getting late in the '05 model year, and that is a loaded up car... Hopefully, they'll be motivated to move it...

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • brabra Posts: 14
    KYFDX,
    even at .0014 is this a reasonable deal...considering that it's nearly max'ed w/options @ 17,000miles/yr.....@ $454/month for 39mnths. If it's way out of the ball park then i'll walk. Other non BWM (i.e. VM, Land Rover) dealers are only going to give me approx. $2,500 for the trade in. The trade in is probably only worth $4,000 due to the fact I need to drop about 2K in A/C compressor, bearings, and brakes all around. Your thoughts on the walk or accept on this current deal....while most likely having to stick to the .0014. I have about 15min. b/f I need to head up there. I greatly appreciate your insight. Regards, B
  • kyfdxkyfdx Posts: 29,141
    Well... your upfront costs would normally run about $1800...

    So, you are putting $4000 down... Add that back into the lease, and your payment is about $560/mo.. I guess that is not a bad deal on a $47K car... with a 17K/yr mileage allowance...

    And, if you feel like you are coming out ahead on your trade-in, and this is the car you want, you aren't being taken advantage of, I don't think...

    I'd give it a try.. ask for the base rate... ask for a $500 check back from your trade to make the next payment... beg for floomats... lol..

    If it doesn't work, take it as is.... Life is short...

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • brabra Posts: 14
    KYFDX,
    ha...good stuff.. FYI...i did get the floormats...now i'm going to ask for an internal bike rack!!! I negotiated over a two week time frame and this deal has come down over $125/month from initial until now. I feel fairly comfortable...and I do agree w/you....I'm young and I only live once. This is my first lease and I'm now much wiser...that's for sure! I also agree It won't hurt to question the rate of .0014.

    Thank you very much for the insight! I'm off to p/u my new vehicle..

    Have a great weekend!
    B
  • brabra Posts: 14
    KYFDX,
    well I ended up signing the lease, but I did one last run through on the numbers w/the deals and I backed off the mileage to 15K and ended up getting a $430/month paymt. w/the trade in. First pmt and security deposit of $450 will be taken car off w/the trade in. I couldn't get them to back off the .0014...oh well can't win them all. All in all I feel pretty comfortable w/the deal.
    Once again...thx for providing your expect opinion.

    B
  • kyfdxkyfdx Posts: 29,141
    That sounds like a really nice vehicle...

    One more note.... about 9-12 months before lease end, you can purchase additional miles from BMWFS for $0.16 each.. At that time, you might have a good idea of what you need, and won't overpay for miles that you won't use...

    Alternatively.... keep that mileage down, and you'll stay in warranty for the entire lease term.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Congrats to all who got in on it....
  • timmbojtimmboj Posts: 123
    Updated website today shows BMW offering X3's at $349 for 36 Months. This is better, right?

    Does anyone know if the MFs and residuals stay the same?
  • Hi bra. The lease money factor that you were quoted to lease this truck is definitely too high. BMW Financial Services' buy rate lease money factor for September for the 2005 X3 3.0 is only .00075 with the payment of a security deposit and acquisition fee. It looks to me as though the dealer that you are working with may be trying to mark-up your vehicle's base lease money factor to add additional back-end profit to your deal.

    As far as your trade goes, you would be much better off having the dealer that you are working with cut you a check for it rather than using the proceeds from it as a capitalized cost reduction for your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your X3 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    You really need to find out this truck's full MSRP and selling price. These numbers will show you how much of a discount you are being given on it and enable you, or myself, to calculate a sample lease payment on it.

    Car_man
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  • You're right sponge_worthy. BMW is no longer offering 39 month leases on the 2005 X3 in September. Its 36 month lease program for this model is still fairly attractive though.

    Car_man
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  • I can give you an idea of what BMW's new lease program for the 2005 X3 is like, timmboj, if you let me know how long you want to lease it for and how many miles per year you need to be able to drive it.

    Car_man
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  • timmbojtimmboj Posts: 123
    Thanks. 36 Months with 15K miles per year.
  • I went ot the bmwusa web site and tried to calculate the details of their lease special (why don't they ever publish the money factor?). Here's how I derived the $349 figure:

    MSRP = $36,995
    Sales price = $33,420 (you pay $2,500 upfront plus they discount the car $1,075)
    Residual = 63% ($36,995 X 0.63 = $23,307)
    Money factor = 0.0012 (came from the X5 leasing forum)

    Payment is $348.99 plus tax

    The residual value is given in the ad (36 mos 10K miles) - I don't know what the money factor is for September but it was 0.00075 in August. Of course BMW dealers are known for bumping up their money factors so I would wait until I know what the official money factor is.
  • No problem timmboj. BMW Financial Services' current buy rate lease money factor and residual value for a 3 year, 15,000 miles per lease of a 2005 X3 3.0 are .00075 and 60%, respectively.

    Car_man
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  • Hi drtravel. Manufacturers like BMW do not publish information about vehicles' lease money factors because they allow their dealers to mark-up their base money factors to add additional back-end profit to deals. Of course, it is a little harder for dealers to do this on a vehicle that has an advertised lease payment available on it.

    Car_man
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  • Car_Man

    I notice the BMW site showing the new X3's with the body color. My question is, do the current lease rates apply to that model?

    Thanks
    KA
  • kyfdxkyfdx Posts: 29,141
    The body color bumpers are on '06 models...

    For that model, the residual for 36mo/45K is 60%, but the base money factor is .0028

    regards,
    kyfdx
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