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BMW X3 Lease Questions

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  • 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
  • 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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    Moderator - Prices Paid, Lease Questions, SUVs

  • 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.
  • 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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    Moderator - Prices Paid, Lease Questions, SUVs

  • 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
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