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BMW X3 Lease Questions

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  • Hey there,

    I moved from a 2002 325Ci Coupe to a 2005 X3 3.0 last year after my lease was over. Considering I had the Sports Package on the 325 I still like the ride of the X3. It handles very well for its height, it has more interior space, and the huge sunroof is great.

    I don't know if the 2006 received an upgrade to the interior or not but it is not as good as the 3.

    If you want to know more let me know.

    JD
  • Hi Michael. You never mentioned the selling price of the X3 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work give you my opinion on this deal if you let me know what its selling price is.

    Generally speaking, dealers usually prefer to sell vehicles that they already have in stock to ordering them. The logic behind this is that when they sell a unit that they already have, they can stop paying floorplan interest on it. Plus, a lot can happen between the time that a consumer orders a vehicle and they take delivery of it. If you drive off in something that is in stock, they know that you won't back out of the deal like you can with an order.

    Car_man
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  • Greetings Peter. According to the latest information that I have seen, if you were to lease a 2006 BMW X3 through BMW Financial Services for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00125 and 60%, respectively. 15,000 miles per year is the highest mileage allowance that BMW publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.

    It is difficult to say what BMW's March lease program on the X3 will be like. BMW just enhanced its lease program on this truck for the month of February. If I had to make an educated guess, I would say that its lease program for it will probably be about the same next month. Again, it is tough to say what will happen for certain though. A lot of what BMW does will depend upon how its February sales turn out.

    Car_man
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  • Hi mariab. Please see my previous message for the money factor and residual value information that you are interested in. I'm not sure what the "prepay amount" that was on the info sheet that you were given means. Perhaps it is the amount due at lease signing. BMW Financial Services charges lessees their vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, a $625 lease acquisition fee, and any other required state fees or taxes at lease signing. You can have your truck's security deposit waived in exchange for an increase of .00015 in the money factor that is used to calculate its lease payment.

    Car_man
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  • Car_man, thank you for reply; I see what you are saying
    The selling price quoted was 39,800.
    So:X3 White/Terracotta 2006
    Premium Package, Heated Seats, Privacy Glass
    The MSRP comes to $40,220 ; Selling Price 39,800
    The lease I was quoted was 36 motnth/10,000
    $495 per month before taxes
    0 down
    $3,495 due at signing ( including 8.25% NY sales tax)

    This seem high to me especially with this month deal;
    what is reasonable monthly payment I can bargaain for?

    thank you
    michael
  • kyfdxkyfdx Posts: 29,370
    My first reaction to your deal is that you aren't getting nearly enough off of the MSRP... $420 discount... A decent deal would be at least $1000-$1500 less.. Which would equate to a payment that is $30-$45 lower per month...

    regards,
    kyfdx
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  • After much research on the internet and e-mails to BMW car dealers, I got the following written lease information on a X3 2006 premium pkg, black exterior and light leather interior. $299.00 for 24 months with $4,500 down. The $4,500 includes first month's payment and $625.00 acq. fee.
    Sales tax of $977.83,$45.00 Doc fee and $10.00 inspection fee are extra. The lease is for 12,000 miles per year, two year and .20 per extra mile. Total amount due at inception, $5,844.31 Total cost $12,721.31. Is this a good deal?
  • billmvbillmv Posts: 145
    CarMan

    In a prior post of yours you made the following statement: "...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..." The implication is that the lessee's obligation to the bank/lessor is then extinguished, and everybody walks away with no further obligation on the part of the lessee.

    I have always operated under the impression that my insurance company would pay me the value of the vehicle at the time it was stolen, and then I would have to settle up with the lessor, which may or may not fully satisfy my obligation under the lease. The fact that they will pay off the BALANCE of the lease is surprising. Since the value of a vehicle theoretically drops most quickly right after the vehicle is sold, doesn't that put the insurance company in the position of potentially having to pay more to a lessor than they would if they had to pay someone who owned their vehicle free and clear, if the theft occurred early in the lease, rather than toward the end, when the balance owed and the value converge? I just can't believe they would take this additional exposure on willingly.

    I don't know how the lessors compute the remaining balance on their leases at any given point in time, but if it's anything like a normal loan payoff there would definitely be a gap between the balance owed and the value of the vehicle. So you pay a little extra for "gap insurance" if it's not already built in to the lease rate to protect against just this situation.

    My wife leased her car through a private leasing company, and they passed the bank's gap insurance fee ($125) through to her (at no markup, unlike the Mercedes dealer would have done if she had leased through them).

    Can you enlighten us all on this, please? Is this something that BMW FS agrees to do (take the amount offered by the insurance company) that is different from other lessors?

    Thanks! By the way, great intel on MFs, promotions, timing and other nuances of how to tailor a BMW lease to your needs.
  • Sorry about the previous blank message.

    Anybody every try one of the free lease quote sites? This one is attached to a site selling lease analyzing software.
    http://www.autoleasingsoftware.com/cgi-bin/aldpartner.pl?aldcbt

    Wanted to see if anyone had any experience. might just try them to see. Thanks, Tom.
  • Car_man,
    I've been talking to a few dealers about leasing the 2006 x3. They keep quoting a money factor of .00165 indicating it is based on a "buy rate" of .00125.

    What is the difference between the two? Or, is one just the rate from BWM and the other the rate after their markup?

    Does the dealer have the option of reducing/eliminating the markup on the "buy rate"? (i.e. is it a negotiation point).

    Also, they all keep quoting me an acquisition fee of $825 (vs the $625 I've seen here) and one dealer quoted a 60% residual on a 36mo/30K mile lease (even after I asked why it wasn't 63% as quote on the board...his response was "BWM has one of the highest residual values" so if feels like I'm getting the runaround).

    Any input regarding how to get the dealer down to the "buy rate" and higher residual value would be greatly appreciated!

    Thanks for your help!
  • kyfdxkyfdx Posts: 29,370
    What is the difference between the two? Or, is one just the rate from BWM and the other the rate after their markup? Does the dealer have the option of reducing/eliminating the markup on the "buy rate"? (i.e. is it a negotiation point).


    You have it exactly.. the markup is optional.. and provides more profit to the dealer. It is negotiable..

    Also, they all keep quoting me an acquisition fee of $825 (vs the $625 I've seen here)

    Same thing as the money factor... also negotiable..

    one dealer quoted a 60% residual on a 36mo/30K mile lease (even after I asked why it wasn't 63% as quote on the board.

    60% is the residual for 3yr/45K... 63% is for 3yr/30K.. They have to use the residual provided by BMWFS.. Probably just a mistake or misstatement on his part.

    Any input regarding how to get the dealer down to the "buy rate"

    Tell them you won't consider any lease deal that doesn't use the base rate.. otherwise, you'll shop elsewhere. (of course, you have to be willing to do that).

    Hope that helps,
    kyfdx
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  • My experience is that http://www.leasewizard.com is a better route. Software is easier to use and they have real data to plug in like factors and residuals (in addition to ALG residuals). Just my opinion!! :D
  • timmbojtimmboj Posts: 123
    I tried to calculate a 2-year lease with 15K miles per year. I used a target $42K purchase price ($40K Invoice / $44K MSRP), 70% residual and .00125 MF. Are these figures correct kydfx? I'm coming up with well over $700 a month. Am I doing something wrong? Seems like it should be less. I'm trying to figure out a decent deal before walking into the only BMW dealership in my town.
  • I just came back from a dealership. It's a 2006 3.0i. It has Premium package, Navigation system, heated front seat, privacy windows, and come in the color silver. I didn't know any better but the guy based on the MSRP price during our negotiation and not what the selling price would be. He asked for $3250 down payment and monthly payment of $450 for 12K miles/year for 36 months(he came down from $518 monthly payment initially). I thought the final offer was a great deal but my brother thought otherwise. Just want to know if we gave up a great deal or it was wise that we walked away. Any immediate thought would be greatly appreciated. Thanks!
  • kyfdxkyfdx Posts: 29,370
    I think the residual is 71%..

    With your numbers, I get $540/mo. plus tax.. with 1st payment, acquisition fee, security deposit and title/license fees due at signing...

    regards,
    kyfdx
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  • kyfdxkyfdx Posts: 29,370
    We'll need at least an MSRP to have any idea..

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  • I have an offer that I want to run by you and need your expert advice.

    Silver 2006 BMW X3 with Premium package, Privacy glass, and Navigation for $0 down for 12K/year for 36 months for $500/month including tax with just first, 625 bank fee, 385 mv and doc fees, 500 security up front. He also indicated that "he discounted the vehicle $2500 to arrive at 500, cannot go below that unless you put a cap reduction up front this is a $42,500.00+ vehicle, and includes Free Maintenance for 4 years or 50,000 miles. Residual is $26,400 at end; note that maintenance is included by only a few car manufacturers at this time".
  • jvergjverg Posts: 8
    I'm sitting/waiting on the following '06 X3 deal until we get the March data:

    36 month lease
    MSRP $39,168
    SELL 36,645
    Residual @ 62% 24,284
    MF @ .00165
    Bank/acquisition fee 825
    No Security Deposit

    Thanks for all your help!!!!
  • tch06tch06 Posts: 3
    Hi Everybody,

    First time BMW buyer here and looking at the '06 X3. I mentioned to the dealer here in San Fran. that I have my own business and he said that when we talk about the lease numbers he would factor in the BWM Business Discount. Does anyone have insight into BMW Business Discount? What is it? Or how can I find more information about it?

    Thanks very much!
  • jjotajjota Posts: 6
    car_man "if you drive off in something that is in stock, they know that you won't back out of the deal like you can with an order."

    having second thoughts about an order. gave 1k deposit for order, will these be reimbursed? how about changing the order for a different model, any penalties for changing? :confuse: image
  • timmbojtimmboj Posts: 123
    BMW lease rates are posted here monthly. I understand this is the X3 lease forum, but does someone here know if their finance rates change month to month? Do the rates change with the length of the loan? And where can one find this information?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi urmahhero. $2,500 below MSRP is a pretty good price for this truck. I believe that the model that you described has a spread of around $3,480 between its full MSRP and dealer invoice price. That puts the price that you were quoted at right around $1,000 over invoice. I would be happy to use BMW Financial Services' actual lease program to calculate what this truck's lease payment should be right now, but it would be helpful if you would provide me with the actual full MSRP (with the destination charge added in) of the truck that you are interested in.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey jverg. If you were to lease a 2006 BMW X3 through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00125 and 60%, respectively. The residual value for this model would be 2% higher for a lease with only 12,000 miles per year. If you opt to have your security deposit waived, it would increase the money factor for this term to .00140. As you can see, this is a little lower than the factor that you were quoted. It appears as though the dealer that you are working with may be marking up your truck's factor to add additional back-end profit to your deal. This sort of thing is completely legal and happens all the time, but usually can be avoided by consumers who know what their vehicle's buy rate should be. Also, this dealer is marking up BMW FS' base lease acquisition fee of $625 by $200. The selling price that you were quoted looks reasonable to me, but you should try to get the dealer to eliminate the money factor and acquisition fee mark-up.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jjota. Was the deposit that you gave the dealer that ordered the vehicle for you supposed to be fully refundable? If so, that's a good start. It still doesn't mean that the dealer will give you your money back without a fight. Getting dealers to give money back is often like trying to squeeze water out of a rock...or is is blood from a stone...or a turnip...hmmmm. Anyhow, you get the idea. Having said this, if you still end up purchasing a vehicle from this dealer, you almost certainly will be able to get your money back unless you ordered an extremely unusual combination of options on your car that the dealer will have a tough time selling to anyone else.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi timmboj. BMW is not currently providing any sort of finance support on the 2006 X3. As a result, if you were to finance one through BMW Financial Services, you would have to use its standard finance rates. These rates often change monthly, but it doesn't really matter what they are right now because like most captive finance companies' standard rats, BMW Financial Services usually can be beaten fairly easily. It is in your best interest as a consumer to go to a local bank, credit union, or a bank that conducts business on-line and get pre-approved to finance the truck that you are interested in prior to discussing interest rates with any dealers. doing so will serve two purposes. One, it will give you an idea of what sort of interest rate you qualify for. And two, it often motivates dealers to try to beat the rate that you already have in hand.

    Car_man
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  • jvergjverg Posts: 8
    Thanks very much Car_man!!

    If you have a moment, just a couple more questions:

    First, does the dealer generate any profit leasing at the base buy rate???

    Second, is it true that BMW Financial limits the dealer MF markup to .0004??

    Thanks again for all your help with our questions!!
  • steveveystevevey Posts: 7
    My X3 just arrived at the Prep center yesterday:
    It's Blue, w/ auto, premium package, cold weather package, heated steering wheel, premium stereo, sat radio prep, privacy glass, navigation & Xenons.

    I'm paying only tax and 1st month and MV fees upfront.

    3yr/30,000 miles

    499/month with 27,953 buyout at lease end.

    Does this sound like a good deal?

    My car's MSRP was 44,370 and my dealer only came down about 1400 so my price is like 42, 970.
  • joefrattjoefratt Posts: 1
    I'm looking at a 2006 X3: Auto Trans, Heated front seats, Privacy Glass, and Metallic Paint are the only options. Dealer figured lease cost based on MSRP and $2500 down as 401.55/month. Tax and MV fees up front, no security deposit. I'm trying to figure out if this is a good deal, but I don't know the residual or other factors, so I wanted to see if someone could help me with these here. Is this a decent deal?
  • When do you have to pay the additional security deposits? If I choose to pay all nine, how is spaced out?

    I'm from Canada and assuming your BMW leases are the same as ours...

    thanks.
  • kyfdxkyfdx Posts: 29,370
    You pay the additional deposits at lease signing..

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This discussion has been closed.