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BMW X3 Lease Questions



  • Went to 2 dealerships here in SoCal to purchase a 2006 X3 with NAV. First dealer (Crevier in Santa Ana - which had 30+ X3's - they must be flying off the shelf) would not budge off of .0025 (even though I told them rate set by BMW was .00195).

    2nd dealer I went to (Santa Monica BMW - which I have purchased from in the past) said that the .00195 rate is a special buy rate for people who have ended a lease or purchase through BMW FS within the last 3 months.

    The non-special rate is .00015 higher to bring the MF to .0021, does anyone know if this is true - especially those of you who have gotten the .00195 rate?

    Thanks for your help!
  • kyfdxkyfdx Posts: 27,692
    First-time lessees can also get the .00195 rate.. They just have to make a security deposit. Returning lessees have the security deposit waived..

    If you don't make the security deposit, then the rate is indeed .0021

    It is a much, much better deal to make the security deposit and get the lower rate.

    Prices Paid, Lease Questions, SUVs

  • I think the negotiability of the money factor must have a lot to do with geography and supply. Unfortunately, I haven't found any BMW dealers in the DC area who are willing to lease a 2006 X3 for the BMW base rate (despite posts and advice to the contrary on this board). They are all marked up a bit. However, I am finding that the price is very negotiable.
  • imgdocimgdoc Posts: 30
    I need an advice. I recently leased 2006 X3, Sport package for 36 months. I pay $615 /mo.; have 30 months left,. I am thinking is it gonna be a good deal to buyout now. The buyout is around 40,000. CapitalOne is giving me financing for 72 month at 9.1%. This makes about $730/mo. I like to keep this car for longer. Do you think it is better to wait until the lease end and then to buy rather than to buy now? Any advice will be appreciated. Thanks
  • I'm sure other people will have good opinions but I think this sounds like an awful deal! First $615/mo sounds high for a lease. Doesn't sound like there was any reduction in the cost of the car.

    Secondly, the interest rate on the loan is pretty high. My credit union is currently offering a rate of 6.24% for a 72 month auto loan. There must be other banks out there that can offer you better than 9.1!

    Also, by taking out such a long loan you will be paying a ton of interest, over $12,000 in interest and that's on top of the 6 months of payments you've already made. You will end up paying over $56,000 for this car that will be 6 years old by the time it's paid for. The 2013 models will be coming out and you'll be driving a 2006 which you'll have to keep driving in order to recoup some of the interest money and won't be under warranty.

    Unfortunately I don't know what the answer is. I would consider sticking with the lease and negotiating a good price to buy the next one.
  • I am new to the world of leasing (I have been studying this as if I am back in school). I hope to sign my agreement in the a.m. – please advise (ASAP) on the following:

    MSRP: $42, 170
    (PREM, NAV, Heated Seats/Steering Wheel, Privacy Glass)

    Invoice: $38,625

    TMV: $40,655

    What was quoted:

    Sale Price: $41,000

    Upfront Costs: $1,011 (w/ $695 safe lease included)

    Monthly Payments: $587

    Lease Term: 36 months / 12K mi/yr

    Money Factor: .0025

    Residual %: 67%

    Other Input:

    Located in Birmingham, AL

    Car obtained from another dealership out of state (transit cost picked up by dealer)

    I would like to have a payment that’s right at or below $500 (not nearly $600). I am willing to make a down payment of $1,000 - $1,500. Please advise.
  • kyfdxkyfdx Posts: 27,692
    Where to start?

    Really...not a good deal at all...

    The selling price is nothing special, and they are marking up the money factor the maximum.. I'm assuming that they are charging $825 for the acquisition fee and adding it to the selling price of the car... Doing that, I come up with a price of $552/mo.+tax... If your tax rate is around 6%, then it all figures correctly...

    I have no idea what "$695 safe lease" is... Some kind of program to protect you from excess wear and tear charges? If so, it sounds like a profit center for the dealership.

    If it were my deal?

    $42170 MSRP
    $40000 Selling price
    $40625 CAP cost (selling price + $625 acq.fee)
    3yr/36K lease
    67% residual
    .00195 base money factor
    Payment = $478/mo.+tax = approx. $508/mo. tax included.

    Due at signing:
    $508 1st payment
    $550 security deposit
    $200-$300 title/registration fees.
    Approx. $1300 total due at signing.

    The current lease program offered by BMWFS is a good one, if you can get the dealer to give you a good selling price, and not pad the finance charges.

    Good luck,

    Prices Paid, Lease Questions, SUVs

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, mapperman. Thanks for the additional information. Hmmmm, either you never mentioned this truck;s selling price or you are not being given any sort of discount on it. Always remember that the selling prices of leased vehicles are negotiable, just as if you were financing or paying cash for them. You need to negotiate as low a price as possible for the X3 that you want and then have the dealer that you are working with calculate its monthly payment using BMW Financial Services' buy rate lease money factor.

    The allowance that dealers give you for your trade is negotiable as well. It is difficult for me to say whether the price that this dealer quoted you for your Volvo is the highest that they will go. You may be able to get a better idea of what your car is currently worth on the open market right now by visiting the following discussion: "Real-World Trade-In Values". If you do end up trading your car in, it would be in your best interest for you to have the dealer that you trade it in to cut you a check for any equity that you have in it rather than using the proceeds from it as a capitalized cost reduction for your lease. I always advise consumers against making down payments on leased vehicles because if their vehicle is totaled in an accident or stolen and never recovered their down payment essentially disappears.

    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi gtreger. I can give you an idea of what BMW's current lease program for this model is like. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2006 X3 with 15,000 miles per year are .00195 and 65%, respectively. This buy rate lease money factor is set by BMW and individual dealers do not have the authority to lower it, however dealers are allowed to mark vehicles' money factors up to add additional hidden back-end profit to deals. BMW dealers are notorious for marking up vehicles' money factors.

    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi imgdoc. Why do you want to buy out your lease now? There really is not any advantage to doing this. By buying your leased X3 with 30 months left on your lease there is a very very good chance that you are going to end up paying more for it than it is currently worth. Not only that, but the interest rate that you are considering financing it at is pretty bad. There's almost no way that the money factor that was used to calculate your truck's lease payment was anywhere near that high. You would be much better off waiting until the scheduled end to decide if you want to keep your truck or not. One additional advantage of waiting is if your vehicle is in an accident, you can just have it repaired and walk away from it at lease-end rather than taking the hit for diminished value that all vehicles that have been in accidents experience. Similarly, if your truck ends up having repeated mechanical problems you can walk away from it at the end of your lease as well instead of keeping a potential problem child and having to continually pay to repair it.

    Prices Paid Forum
  • shikemshikem Posts: 7
    Hi everyone.
    Let me start by saying that I do sell BMW.s for a living.
    Obviously some people think that all car sales people are evil and just want to take them to the cleaners. Hopefully not all people think the same way. I am sur I will be flamed but hopefully people here are intelligent and educated enough to have a productive deiscussion here.
    Profit is nat evil. It's what makes the economy work. If there were no profit to be made selling products then they simply would not be sold. Of course a dealer does not want to sell a car for no profit nor do they want to sell the finance and make zero profit. Of course one needs to negotiate a resonable profit and thats where things get tricky. All dealers will mark up their buy rate to some extent to earn a profit, not just BMW dealers.
    Again, profit is not a bad thing. If the company you work for did not make a profit I can guarantee you they would not be able to pay you for long and would go out of business soon.
  • I am considering the multiple security deposit program offered by BMWFS, and I am trying to come up with scenarios where I would not get the money back. Anyone aware of what makes this money forfeitable under the rules of BMWFS? In particular, what happens to your security deposit if your leased vehicle gets totaled? Is it totally forfeited similar to any cap cost reduction that you make up front, or does it depend if you owe more than the vehicle is worth?

  • davidc1davidc1 Posts: 167
    I am no expert in this but based on my previous experience, I'd say your money is safe. In the olden days, there were gap insurance to cover the difference if you owed more but these days, insurance company will pay you what it will cost to buy it retail. So you generally come out ahead. I had one of my leased cars totalled a few years ago and I ended up getting a couple of thousand back from insurance. They accounted for retail price, tax, registration, etc..
  • jsayjsay Posts: 2

  • billmvbillmv Posts: 145
    Go to and get rid of it. then have a friend who knows how to negotiate cut a better deal for you on a purchase. Then buy him a very, very fancy dinner. You'll be thousands ahead.
  • rmse46rmse46 Posts: 9
    Can anyone tell me the current lease acquisition charge for BMWFS?
  • Hi Car_man,

    I was wondering if you had any idea of what an 07 X3 lease might look like, thanks so much!!!
  • An X3 for a 36 month lease, 10k miles, premium package, navigation, etc. the car is loaded, just not cold weather package.

    $42,170 MSRP
    $38,700 Selling price
    3yr/36K lease
    68% residual
    .00195 base money factor
    7 MSDs at $450 a piece
    $4500 down (in addition to MSDs)
    Payment = $418/mo tax included. (CA Tax)

    I am putting a lot of money down, but i will get the $3150 in deposit back and it drops the MF down. Seems like a good deal, not sure if I have squeezed it as much as possible.

    Any help is appreciated.
  • Has anyone seen the latest X3 lease factors for September? My dealer hinted that he expected them to change for the better, but I haven't heard anything about that yet. I'm looking for 36mo/15K per year MF and residuals. Last figures I saw in this forum were .00195 and 65% for August.

  • I have a 2005 Element EX that they are going to take on trade and give me $14000 and
    I owe $18000 on it at 10.9%. I would be getting a 2006 BMW X3 with the sport, premium and upgraded
    sound system MSRP is around $42k. With $3000 down my payments are $639 for a 36 month
    12k/year lease. Is this a good deal? Any suggestions on what I can do to better this? They
    claim they are already at $500 over invoice I think I have a money factor of .00025 but I need to clarify that. My Fico score is only 677 so I know I won't qualify for the best rate. I would I lower my payments by going to a 39 month lease ?

This discussion has been closed.