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BMW X3 Lease Questions

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  • kyfdx,

    Thanks for the info. You always know your stuff, especially with BMW.

    1 more question. I know the body color bumbers are different on the '06 X3's. Can you tell me what other differences there are between the 05 and 06?

    Thanks,
    KA
  • timmbojtimmboj Posts: 123
    Perfect! Thanks!
  • timmbojtimmboj Posts: 123
    You read my mind. Thanks for the numbers on the 2006.
  • MSRP of $36,995 (invoice is $33,910)
    Cap cost of $34,315 ($2,500 down + $180 off)
    63% residual
    0.00075 money factor
    payment is $349 + tax

    dealer is still making $2,905 over invoice - seems high.
  • kyfdxkyfdx Posts: 29,368
    Usually, the BMW advertised lease specials assume a $1000 discount from MSRP, in addition to any dealer incentives..

    I haven't reverse-engineered the payment from the ad, but I do notice that the cap cost includes the acquisition fee of $625, so the discount you calculated would be at least $625 more.

    regards,
    kyfdx
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  • Hey someguy1. BMW is not currently providing any sort of lease support on the 2006 X3. If you were to lease any '06 X3, regardless of color, through BMW FS right now you would have to use its standard lease money factor of .00280.

    Car_man
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  • You're welcome timmboj.

    Car_man
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  • I have had my X3 for about 15 months and also have a gas guzzling (12 MPG) Yukon XL. I would like to sell the Yukon (I own it), terminate my X3 lease and upgrade to X5 and lease a 330i (better gas mileage, fun to drive, etc).

    We would keep the X3 but it's too small - with the Yukon XL it was fine, but if we drop the Yukon in favor of a 330i the X3 wouldn't cut it for us.

    I am waiting for the dealer to come back to me with a proposal - I suggested terminating the X3 lease, upgrading to an X5 lease and leasing a 330i. He said someting about $5,000 deal on 2005 X5s that could make my lease payment and an X5 payment "comparable." I am hopeful that the 330i may incent the dealer to work with us - no too much pain on the X3/X5 swap and new 330i lease.

    Any thoughts/suggestions would be appreciate3d. Thanks!
  • bdr127bdr127 Posts: 950
    We would keep the X3 but it's too small - with the Yukon XL it was fine, but if we drop the Yukon in favor of a 330i the X3 wouldn't cut it for us.

    The X3 actually has slightly more cargo space than the X5, believe it or not....
  • I think I'm being worked over, but I can't tell. Lease terms are: $37,519 for an '05 X3 3.0 ($38,795 MSRP), $448 down payment ($448 + $400 first months pmnt + $263.35 lic & reg + $63.25 tax on cap (??) + $825 aquisition fee = $2,,000 up front) plus my car, which I owe $12,700 on & they are giving me $14K (Ford Escape - Edmunds $13,984, KBB $15,150). That's equals another $1,300 toward the car. Money factor is .00110, 36 months, 10K miles/year, $24,441 residual (63%) and $400/month. I'm in Mass (5% tax), if that makes any difference. I've never leased, and as a woman, I'm afraid I'm getting screwed somewhere. The #'s add up OK, but are they fair? I live on an island and haven't even driven the car yet. Gave them the $2K to hold the car before I test drive it. Signed tentative P & S thing (sorry I did that). Please help!! Thanks
  • kyfdxkyfdx Posts: 29,368
    1) You are correct... all of the numbers add up... You are also correct... This isn't a very good deal..

    2) $1200 discount from MSRP... Not good at this time of year on an '05.. Most reported deals on the X3 Prices Paid board range from $2000-$3000 off MSRP.

    3) Money factor .00110 Acquisition fee $825. Both of these numbers are marked up for extra profit.. The base MF without a security deposit is .0090 and the base acq. fee is $625.

    4) The tax is on the $448 cap cost reduction and the $825 acquisition fee... This is how every state does it... Anything paid upfront that reduces your taxable payment is taxed.. I'm actually surprised they aren't taxing the equity in your trade-in, that you are putting towards the lease..

    5) The wild card in all of this? Your trade.. Even though they are agreeing to give you Edmunds trade-in value, your car may not be worth that, and they are jacking up all of the other costs to cover for a possible loss on your trade.. (Or, they may just be trying to get all they can... ;) ).

    regards,
    kyfdx
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  • kyfdxkyfdx Posts: 29,368
    I'd want the deal to look like this....

    $38,795 MSRP
    $37,000 Selling price (very reasonable.. fair for both)
    $37,625 Cap cost (selling price + $625 acquisition fee)
    3yr/30K lease
    Residual 63%
    MF .00075
    Payment $413/mo.+ 5% tax = $434/mo.

    Due at signing: 1st payment ($434) + security deposit ($450) + license/registration ($264) = $1148 total..

    If the offer for your Escape is "real", then that should cover the upfront money, with no further payment due from you....

    So, your trade with nothing out of pocket and $434/mo...

    regards,
    kyfdx

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  • Thanks so much for taking the time to look things over for me. I have already given them $2,000 to hold the car till I can get there on Wed. They faxed me something that said $2,000 + the trade, and $400/month which I signed. No other figures on there. Like a half-baked P & S. Am I tied to this deal because I signed that? How do I convince them to give me the $2,000 back (on my credit card)? Is $434 better in the long run than $400 without the up front costs? Thanks!
  • One more quick thing...they told me I wouldn't have to pay a security deposit at all. Is that due to my good credit rating or do they just waive it sometimes? Should I even mention it? Also, is the 10K miles/year fair, or should I ask for 12K?
  • kyfdxkyfdx Posts: 29,368
    1) The $434/mo without the $2K extra down and getting the $450 security deposit back at the end of the lease, is way better than $400/mo...

    2) You didn't get the security deposit waived because of your good credit.. you are paying for it.

    3) If you need 12K miles/year, that reduces the residual by 1% and will raise your payment approx. $11-$12 per month..

    4) If you want out of this deal, just call them up and say so.... If they won't give your deposit back, call up your credit card company and dispute the charges.. The chances of them keeping your deposit, if you haven't taken delivery of a car are about 1%...

    regards,
    kyfdx

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  • kyfdx,

    You have been so helpful, I can't even tell you! I'm so glad I stumbled on this forum. I'm calling BMW today & will let you know the outcome. Thanks for your help and your honesty! :)
  • bdr127bdr127 Posts: 950
    e more quick thing...they told me I wouldn't have to pay a security deposit at all. Is that due to my good credit rating or do they just waive it sometimes? Should I even mention it? Also, is the 10K miles/year fair, or should I ask for 12K?

    In order for BMW Financial Services to waive the security deposit, they need to mark up the MF by .00015.... Remember to take this into account when you talk to the dealer.
  • kyfdx...here's my bottom line, which I think is pretty good, thanks to you!

    I got a little cocky & asked for a $36,500 selling price, plus everything else you suggested. Here's what they came back with:

    $36,887 selling price
    $0 down and my car (which covers 1st payment, security deposit, & lic/reg fees
    $625 aquisition fee
    $450 security deposit
    .00075 money factor
    63% residual, 10K/year for 36 months
    They came up with $406.67/month + MA 5% tax of $20.33 = $427/month

    How did I do?
  • They had marked it up to .00110 without a security deposit, so I opted to give them the $450 refundable (we hope!) deposit for the better rate of .00075. Thanks!
  • kyfdxkyfdx Posts: 29,368
    Wow.... you don't need me... You ROCK!!

    regards,
    kyfdx
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  • No, kyfdx, YOU ROCK!!! ;) And, by the way, I DID need you, or else I never would have had the confidence to make this deal (I was shaking the entire time I was on the phone!!) I can't believe it worked out this well. If the Edmunds.com powers that be are watching these forums...you are doing a great service to us novice's out here on our own. Thank you, thank you, and thank you again! We're not worthy!!!!!!
  • mmg3mmg3 Posts: 1
    O.K. Here's the dilema - our current lease on our Volkswagen is up in March (have suffered through 3 miserable winters with this car and not looking forward to a fourth) we are looking to lease an X3 - the 349/month deal which only goes until the end of the month - is it a legitimate deal and should we take advantage now or do you think that we will be able to get a good deal in a few months when we have a bit more money saved to put down and are closer to the end of our current lease? Any thoughts?
  • kyfdxkyfdx Posts: 29,368
    Six months to go?

    Just wait it out... If the X3 leases aren't great at that time, there will be something else to catch your fancy..

    IMO, February and March are typically great months to lease vehicles... Incentives seem to be good, and residuals are still high...

    regards,
    kyfdx
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  • drtraveldrtravel Posts: 395
    For 10K and 12K per year - 36 months.

    Thank you
  • lizablizab Posts: 2
    What is the current advertised lease program for the 2006 X3? I have not seen any? Is it better at this time of year to lease an '05 or '06?

    Thanks
  • You're in luck, drtravel. BMW just introduced a special lease program on the 2006 X3 for the month of October. If you were to lease a 2006 BMW X3 3.0 through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 62%, respectively. Its 10,000 miles per year residual value would be 1% higher, but the money factor would be the same.

    Car_man
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  • HI lizab. BMW is currently advertising the 2006 X3 at $429 per month for 36 months with a $2,500 down payment and 10,000 miles per year. Like many manufacturers' advertised lease payments though I suspect that you can do better than this if you negotiate an attractive selling price. BMW's lease program on the 2005 X3 is actually a little more attractive than its program is on the 2006 model right now. The residual values the same but its money factor is lower on the '05 model plus you should be able to negotiate a lower selling price on a leftover '05 X3 than you would be able to on a new '06 model.

    Car_man
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  • lizablizab Posts: 2
    Thanks for your help. I went to my local dealer last night and had just a horrible experience, so will be starting over elsewhere!
  • ladiladi Posts: 11
    I am looking to negotiate a deal on a new '06 X3. I am getting the Prem,Nav,Cold Package and Privacy. The dealer gave me a start of a neg. $40,776. I am asking for $39500. I think that is fair. Also with one time payment...he gave me a neg 18944 for 15k/2 yrs. I think that is super high so I am asking for $16500 on one time pay. That works out to 540/mo +plus tax and fees. Is this a fair deal for the both of us?
  • You're welcome lizab. Sorry to hear about your bad experience. You were smart not to walk away from a dealer that you do not feel comfortable with.

    Car_man
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This discussion has been closed.