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BMW X3 Lease Questions



  • flightnurseflightnurse 35K feetPosts: 1,590
    First issue is, know your credit score. PERIOD You shouldn't walk into a dealership and not know this stuff.

    MF changes monthly, if you qualify for BMWFS top tier credit then you will be offered the 0.00127 (or whatever it is currently) MF, if you do not have top tier credit then you are at the mercy of the dealership and banks. This can add some serious $$ to your monthly payments.

    Good luck
  • jasonmdbmwjasonmdbmw Posts: 117
    Just because you qualify for top tier doesn't mean the dealer is going to offer you the buy rate. Most will mark it up as much as they can to .00167 and go from there if the customer objects to it. The lowest your score can be to qualify is 675 and if you don't know your score, simply ask them for your score or to show you your report.
  • Not too sure if my 0.00139 MF while getting Invoice for a 2014 X3 was the best I could do. I was planning for 0.00127 as I have great credit but I guess I didn't press hard enough.
  • grokgrok Posts: 10
    Recently I saw an internet advertisement for a 2013 x3 28i that was new but had been used as a loaner and therefore had over 8000 miles on it. The Price for the vehicle had been reduced $4855 below the MSRP of $47845 for a sale price of $42,990. This seemed like a great vehicle to lease if I could keep the residual at 57% by returning it with less than a total of 45,000 miles (8,000 existing + 36,000 driven by me). I understood that the price had been reduced because of the miles,but what I cannot understand is if I returned this vehicle at the end of a 36 month lease with less 45,000 miles ( 8000 existing +36000 driven) the dealer stated the residual is not 57%, as it would be with a new car with 0 miles that was driven 45000 miles by the purchaser. Instead through some complex penalty per mile driven prior to purchase the residual would end up being 53%. I confirmed this is a written policy of BMW with a call to BMW Financial. So with one hand the car is discounted and with the other hand the discount is taken away with a higher than "normal" lease end residual value. ????? So dishonest! I expect this from a dealership,but not the written policy of BMW Corporate.
  • flightnurseflightnurse 35K feetPosts: 1,590
    Everybody wants something for nothing, first off any car can be leased, and this X3 can be also, however, it will not get the same MF as a new X3 as the one you looking at is not new. So BMW is not being dishonest, its just that you want BMW to treat this X3 as a new one and still give you the deep discount.
  • kyfdxkyfdx Posts: 27,708
    There is another variable that you didn't account for.... the loaner vehicle will be more than three years old when you return it... The warranty clock starts ticking when it is put into service... so, it will be worth less than a brand-new vehicle when you return it.... which is why you can't just use the 3yr/45k lease program.

    The actual residual isn't really a lower percentage... It's the same percentage as a new one, minus $0.30/mile... (first 500 miles are free)..

    So, the residual is reduced by (8000 - 500 ) X $0.30 or $2400 less..

    I wouldn't say it's dishonest.. Sounds like it's something that you weren't aware of. 4 or 5 years ago, the residual reduction was only $0.15/mile, and that made the loaners a better deal to lease..

    If you are still interested in that vehicle, you might mention to the dealer that he needs to lower the price to make the lease deal competitive...

    If it's a current model loaner, then it usually qualifies for most of the current rates and incentives, including money factors and residuals, but you do have to reduce the residual to account for the mileage... no way around that..


    Prices Paid, Lease Questions, SUVs

  • Hi,

    What's the latest RV and MF for X3?
    would you please let me know for both 2yr and 3yr lease?

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi braketoolate. BMW Financial Services' June buy rate lease money factor and residual value for a 24-month lease of a 2013 X3 28i with 15,000 miles per year are .00127 and 63%.

    The numbers for an otherwise identical 36-month lease are .00127 and 57%.

    Prices Paid: Buying & Leasing Experiences Forum
  • tarusse1tarusse1 Posts: 2
    My wife and I are looking at leasing a 2013 x3. We have been to one dealer and was quoted on 36month 12k mile lease a payment of 750 a month with 3000 down. This seems extremely high to us. A family member recently leased an x3 for 460 a month same lease terms. Is it unreasonable to lease an x3 with price of 39995 for a payment of 450-475 a month?
  • tonka858tonka858 Posts: 21
    edited June 2013
    why not get a 2014..and yes the dealer is ripping you off..check out bmw web site
    web deal and this is not with even bargaining
    2014 X3 xDrive28i
    $489*/month for 36 months. $750 Loyalty Cash included in payment.
    • $489 First months payment
    • $2,750 Down payment
    • $0 Security Deposit
    • $725 Acquisition fee
    • $3,964 Cash due at signing

    Contact a dealer - px?NAModelCode=14XD&OfferType=2&regiontypeid=2
  • flightnurseflightnurse 35K feetPosts: 1,590
    There are many factors related to lease payments, the biggest factor is credit score, if you do not have top tier credit this will be an issue. Second, put the least amount of money out of pocket, 3K is a lot of money. People shop for price in a lease this can't not be done. Go back and a page or two and see what people have paid for a X3.

    If you never leased a car before Edmunds has a wonderful article on how to lease a car, read it.. Get the current money factor (% rate) and residual that BMW financial service is offering by asking on this forum. Having this info will help out a lot when going to the dealer. Also are you negotiating a sale price of the X3? Do not pay MSRP for a lease...
  • grokgrok Posts: 10
    KYFDX:Thank you for your response and effort to explain. It is my understanding the vehicle is being sold as new and under a full 4 year warranty. It is discounted for the miles,but not the warranty. Whoever purchases it or leases it is the first owner and we are still in the 6 month of 2013, so in June of 2016 it would have 45,000 miles and 1 owner and should still have a 1 year warranty remaining ,but that of course is up to BMW as to whether they think the vehicle is able to be warrantied for another year to a new purchaser. It is my opinion that the practice of charging the excessively high penalty rate of .30 per mile is dishonest and the residual is already adjusted if 57% is used rather than 59% for the 12,000/yr I would be adding. In any case,I think this is a bad and unnecessaryily petty policy for BMW that does not create confidence, trust or even meaningful profit for the company.
  • grokgrok Posts: 10
    Flightnurse:Thank you for your response. The vehicle is being sold as new. It is listed under "new" inventory. It is a 2013 vehicle being sold in June of 2013. It is discounted for the miles on it,but not the warranty. It still has a 4 year warranty to any purchaser. I was wiling to have returned it in 3 years putting only 36,000 miles( 59% residual) and to instead use the actual 45,000 mile residual of 57%. I am not ok with paying a .30/mile penalty rate on their miles. It is a vote of no confidence by BMW to be willing to advertize it and sell it as new,but not lease it as such. In June of 2016 it would have 1 owner and 45,000 miles and 1 year warranty remaining, therefore the residual should be 57%.
  • tarusse1tarusse1 Posts: 2
    Thanks for the input. I have read the edmunds lease article as well as others. I felt like I understood leases fairly well so I just wanted the reassurance that the dealer was trying to screw us. We have tier 1 credit and after shopping around at another dealer we are looking a 2014 x3 with an Msrp of 43,800. Dealer said with 1500 down payment is $450 a month for 3yrs 12k miles a year. Does that seem reasonable?
  • mattyg412mattyg412 Posts: 7
    edited July 2013

    I am considering a lease on a 2014 X3 28i. I will lease for 3 years with 15,000 miles per year. Would you kindly provide the current (July) residual and MF? I have tier 1 credit.

    Thank you very much!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'd be happy to help you out mattyg412. BMW Financial Services' July buy rate lease money factor and residual value for a 36-month lease of a 2014 X3 28i with 15,000 miles per year are .00127 and 54% for consumers who qualify for its top credit tiers.

    Prices Paid: Buying & Leasing Experiences Forum
  • grokgrok Posts: 10
    I am familiar with leasing, but I am charting new grounds negotiating a lease on a 2013 BMW loaner with thousands of miles on it. The price has already been aggressively discounted because of the current miles on the car. The research I have done indicates that the lease end residual amount for the chosen model, miles/year and term should be reduced by an additional .15 per mile that is currently on the vehicle. Please confirm if .15 is the correct amount/mile and if this amount should be deducted from the residual (creating a lower residual amount and %) in order to calculate the lease payment.

    One other question. The dealer indicated there would be no acquisition fee. Is it possible that since BMW has no advertised lease offers on this 2013 vehicle that no acquisition fee is required?
  • flightnurseflightnurse 35K feetPosts: 1,590
    I don't think there is a .15/mile deduction, the BMW dealer sale price is the negotiated sales price of the X3, which the lease is based off. What is the money factor and residual the dealer is giving you? That is going to tell anyone what kind of deal you are really getting.

    When I was looking at a loaner X3, the reason I was told that their were no acquisition fee is because it is used.
  • kyfdxkyfdx Posts: 27,708
    It's $0.30/mile, after the first 500 miles..

    All leases will have an acquisition fee, although it may be rolled in to the CAP cost. They can waive the acq. fee, with a .00035 bump in the money factor, but this rare and not usually cost effective, unless it's a short term lease.

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  • grokgrok Posts: 10
    Thank you so much for your insight on the Acquisition fee, that makes sense and give me a basis to stand on , if they try to rescind when I begin to negotiate .For 2013 the money factor of .00127 & residual of 59% for 1200m/year for 3years has not changed on this vehicle. The dealer stated that the miles would cost.30 per mile and be directly deducted from the residual amount, but since BMW USA advertises on their website that additional miles are only.20c at the end of a lease unless you purchase additional miles before the lease end then they are .16; this made me think their number was too high. I called a reliable source and was told the cost is .15 / mile. This makes the adjusted residual 56.35% rather than the 53.5%residual the dealer quoted. Big difference. Can you confirm?
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