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BMW X3 Lease Questions

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  • kpjkpj Posts: 6
    I have a current BMW lease that will end next month. Can you let me know the current BMW customer loyalty residual and MF for a 2008 X3 and X5?

    Thanks,
  • Can you tell me a good negotiated lease price per month
    MSRP 40975
    10,000 miles
    36months
    taxes and all fees plus 1st month paid and 3500.00 down, no security deposit.
    money factor is .00255
    Residual value being used is 65%
    Northern New Jersey Dealer
    NY Tax of 8.13 paying up front
    Thanks
  • Hi kpj. BMW's lease program varies by term and mileage allowance. You never mentioned what either of these variables are, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different.

    BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 BMW X3 with 15,000 miles per year are .00240 and 62%, respectively.

    The numbers for an otherwise identical lease of an '08 X5 3.0si are .00200 and 53%, respectively on models that have the free Premium Package. The money factor is reduced by .00080 for non-Premium Package models.

    BMW was providing a money factor reduction on select models for returning BMW FS lessees, but I have not seen anything about it lately so it might not still be available.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • The x3 I am seeing is money factor .00255 they say that is because we will have no security deposit. I am a first time buyer so the .00240 is only offered if you put a security deposit.
    36 months 10,000 miles. is what I am looking at. I am still having a hard time coming up with the payment per month that is good!
    There is no premium package. My residual value is definitely 65% I think that looks better then what is being offered out there. Is that right? or is the mileage
    a factor?
    thanks again
  • Hey jeannemay. The dealer that you spoke with is correct. The .00240 money factor is only available for returning lessees or those who pay a security deposit equivalent to their vehicle's monthly payment rounded up to the nearest $50 increment at lease signing. BMW FS will waive its security deposit requirement for non-returning lessees in exchange for a .00015 money factor increase. This truck's 10,000 mile per year residual value is 3% higher than its 15k residual, so the 65% number is also correct.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • thanks sooo one more question those numbers are correct but what is the bargaining tool?? the msrp is 40975 they were offering 511.00 a month came down to 505.00
    all included in the 3500 down taxes, paperwork , 1st month is that an ok deal??
  • No problem, jeannemay. Since the lease program is good, the only way to get a lower monthly payment is to negotiate a lower selling price. the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You definitely should find this number out and compare it to the prices that other community members have paid for similar trucks lately by visiting the "BMW X3 Prices Paid and Buying Experience" discussion.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I've been leasing a 2006 x-3 on a two year lease. The lease is up in December, and I'd like to release the car. I called my dealership and they've quoted me a leasing price of almost $230/ month more on a 24 month lease and $170/month more on a 36 month lease. They are also charging an initial payment of more than $6000 -- this after the original initial payment of $5000 I paid in 2006.

    Remember this is now a used car. These lease charges are more than the advertised leases on the new X-3 I see in the newspaper.

    Any idea why these charges should be so much higher than my original lease?

    Do I have to release through the original dealership?

    Any idea where I can get a lease my used car that is the same or less than what I am currently paying for it?

    Thanks. RG
  • billmvbillmv Posts: 145
    RG...... Essentially you have to drill down into the math they used to calculate these payments to understand where you're getting hosed. Ask them for the following:

    1) the capitalized cost. This should be no more than the residual value on the first lease. You paid it down to that amount, so you should not have to "buy" the car for more the second time around.

    2) How much of the $6,000 initial payment is for a "cap cost reduction" (down payment) and how much goes to other fees. Get a complete breakdown of those fees. Is there another "bank fee"? Is the lessor BMW Financial Services or a local bank? If it's BMWFS, then you may be able to re-lease through them directly. Call them and find out.

    3) What is the new residual value?

    4) What is the new money factor? Compare it to MFs for new leases.

    With these figures you can calculate your new payment. Do you know how to do that? It should match theirs. I'll bet in your case they are jacking up the MF and bank fee substantially to make more money.

    Often in a lease on a brand new car the manufacturer will use a residual that is a bit high in order to lower the payment. But in a re-lease, they know that they have to look at what the vehicle will be worth at the end of the second lease, and that can be quite low. All that depreciation jacks up your payment. Plus, they probably won't be able to give you as good a MF as they can the first time around.

    Good luck!
  • Thanks for the good info. I was working with my local dealership. I'll call BMWFS first thing in the morning.
  • kpjkpj Posts: 6
    Thank you Car_man for your response. It was the 36 month 15,000 mile leases that I was referring to.

    Are these the same numbers for the month of October on 2008 models? Also, are they still offering the premium package reductions or any other incentives to help move the '08's?
  • No problem, kpj. BMW actually just enhanced its October lease program for 2008 models on Friday. BMW Financial Services' new buy rate lease money factor and residual value for a 36 month lease of a 2008 X3 with 15,000 miles per year are .00125 and 62%, respectively. Some '08 models still have free options available on them, but I don't think that the X3 is one of them.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • kpjkpj Posts: 6
    thanks again. can you give me the lease rates on the X5? 36 months. 15,000 miles.
  • No problem kpj. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 X5 3.0si with 15,000 miles per year are .00125 and 53%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • kev6873kev6873 Posts: 11
    Can someone please explain to me why I shouldnt do an Owners Choice versus a lease? I live in Illinois and if I do plan on possibly buying the car, I would have to pay 7.5% sales tax...TWICE. The owners choice is like a balloon of some sorts if I understand it correctly. What are the drawbacks to it? Can someone please help me decide?

    I am looking at a 2008 X3. My payments would be 393 (after trade in of an owners choice that weve had for 2 months but dont like the car) with a lease with the .00125 program, 10k miles or 422 a month with the owners choice at 12k miles. Residual is 60.5%. The car has 9900 miles on it.
  • Here is the lease deal from my BMW dealer.

    Good / OK / Not the best / Don't do it / RUN

    New X3 (Premium, Sport and Cold weather packages)
    3-years/10k
    $5000 down
    $377 month

    Dealer price on X3: $44,450
  • kyfdxkyfdx Posts: 27,621
    1) What is the MSRP?

    2) I'd say its a good deal, assuming MSRP is around $47K+

    3) Roll that $5K into the lease payment.. Sure, that makes the payment about $525/mo., but the money is cheap (3%).

    4) Is 10K mi/yr enough? Going to a 12K/yr lease only adds $15/mo. and another $30/mo. to go from 12K to 15K/yr..

    Good luck!
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Thanks. Was worried no one would respond in time. The dealership had no 08 left with the features I wanted. So their bring one in by truck from another dealership in another city. They brought it in under their dime. I saw the listing for the car I pick before the arrangement took place.

    1) The MSRP was $47,500. But they came down to $44,700. I went in thinking I wanted to buy, but remembered I need a lease for business write off. So I switch to a 3 year lease.

    2) Did you mean to not roll the money into the lease?

    3) They are offering me a deal in the last year of the lease, if I think I'm going to be over mile, I can switch my mileage to 12K no problem, just $540. They will put that in writing. I'd rather go for low payment now and worry about mileage closer to the end.

    With there zero cost of ownership, and some weariables (hat, jacket and plate holder) it really sounds like a pretty good deal.

    How does this logic sound?
  • kyfdxkyfdx Posts: 27,621
    I'm not a tax expert, so take this with a grain of salt...

    I don't think you can take that $5K as an expense upfront, you'll have to write it off over the life of the lease, just as you would if you rolled it into the payment... I strongly encourage you to do that, as that money is at risk, if the car is totaled or stolen in the first few months of the lease.

    The mileage thing is a little iffy.. Yes, you can buy mileage from BMWFS for $0.16 ea., before the lease is up... so, 6000 extra miles will be $900... No matter what they put in writing, I don't think BMWFS will go for the $540 thing... which is exactly what it will cost you to sign up for the miles in advance... I suggest you do so, if you are fairly certain you will need them.

    Overall, your deal looks great.. Is $5K the total amount due at signing? Or, do you have to come up with acquisition fee, 1st payment, etc, etc, in addition to that?

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • yeah, I hear you. Taxes are a lovely thing. This is the third car I've leased. My accountant has cleared it in my past leases and has told me why, I just can't remember. I'll take the deduction this year because I need it.

    Interesting on the mileage thing. I'm going to double check this.

    5K due at signing and drive. Come on, the hat and jacket are worth $5000 alone. At lease the parts for my 95 LWT M3 are right up there.
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