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BMW X3 Lease Questions

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Comments

  • talyvantalyvan Posts: 17
    You're right bdr127, I though about that too, perhaps thay did that to "give" some tax savings, but that'll be easy to figure it out by reading the contract, I don't have my contract with me at the moment, but I remember that there are 2 places where you can see the tax part, one is on the "Gross Cap Cost" breakdown (this will give you the total tax to be paid) and the other one on the "Amount due at lease" breakdown, this one will give you the tax amount saved by the trade-in.

    When I said it sounded fishy, was basically because of that; In my mind there should be no hidden or "adjusted" numbers; please Mr. Dealership, explain every single line to me, it'll take only 5 minutes.

    If the Net-Trade in allowance says "N/A", indeed it might be a tax saving thing, since they say Trade-In ammount $xx, Amount owed $xx.. that clears, so you roll $0.00 into your purchase.

    My initial concern was that they were rolling $28.5K into the pruchase.

    As of the total contract... might be that by the time you leased the car, there was no incentives.. :( so, you got the full hit of a higher depreciation and higher money factor.
  • dwilly78dwilly78 Posts: 1
    The dealer will do 5.5% discount on MSRP of the X3 I pick and then on a 39 month lease with 10,000 miles per year, I would get a 68% residual and a money factor of .0013. He hasn't sprung the bank fees and dealer fees on me yet, but the lease terms seem pretty reasonable. Any thoughts?
  • bdr127bdr127 Posts: 950
    The dealer will do 5.5% discount on MSRP of the X3 I pick and then on a 39 month lease with 10,000 miles per year, I would get a 68% residual and a money factor of .0013. He hasn't sprung the bank fees and dealer fees on me yet, but the lease terms seem pretty reasonable. Any thoughts?

    Sounds like a great discount.... As far as bank fees, BMWFS has a $625 acquisition fee that they allow dealers to mark up to $825. Note that this fee is not a dealer fee, but a fee charged by BMW. Dealer doc fees vary by state and dealership, so you'll have to ask what those are...
  • talyvantalyvan Posts: 17
    Sounds good thus far.. You're not giving much info on the car, but assuming the one we just got (MSRP: 41,895), you're looking at a discount of $2,304.. which puts you on the ballpark of the discount we've been getting. Good Job!

    Now, only if your driving habits allows it, go for the 10K/year, otherwise shoot for the 12K and don't worry about penalties if you go over, because the reallity is that 3 months before the lease ends, they'll start to offer you a new deal; so you sort of have about 3K miles to play with.

    Money Factor looks ok, if it gets pumped to 0.00155 still is good. The $625 will be pretty much impossible to get away from.
  • jvergjverg Posts: 8
    Wow!! Has the MF for April really dwindled to .0013!?!?!?
  • pgeterspgeters Posts: 12
    If it is not to late, hotelz, I pretty much just printed out the deal that was listed in one of these posts (see #141 for my deal) and took it into the dealer and said that I wanted to see if they could match a deal. I was prepared to say, "Please don't waste my time. If you can't match it then just let me know and I will move to the next dealer", (I live in the SF bay area and have plenty of dealers to try) but never got around to it. They asked what the deal was, I gave them the paper, and they said they could.

    It would have been better to come in with the exact example deal that I wanted but I was hoping for a few more options. Since I wanted more options than that deal they tried to jack the price up unproportionately, but I stuck to my guns and told them I needed to feel good about the deal before I could do it. I got them to come down $40 per month from their first offer. They must have been in the right mood because they backed down pretty quickly and gave me the proportionate deal I was looking for.

    Also, make sure you ask and calculate out the actual depreciation rate and money factor for your deal while negotiating, because they may not be telling the truth (no, really?) and the money factor isn't quoted on the lease agreement, just the total rent charge. They said they were matching the deal when they first quoted me the payment with the extra $40 a month, but they were not and it was hard for me to verify. Most experts say to get your best deal, then take it home, calculate it out, and think about it before agreeing.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi virginiacar. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    The dealers that told you that they are not allowed to change the selling price of the X3 that BMW is currently advertising a lease on were indeed lying to you. The selling prices of leased vehicles are always negotiable, just as if you were paying cash or financing. In fact, most manufacturers' advertised lease payments leave a little meat on the bone so to speak. I would not be surprised if you were able to negotiate a better selling price on the X3 that you are interested in than the one that is being used to arrive at the advertised lease payment.

    Car_man
    Host
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  • kjboydkjboyd Posts: 4
    Hi All... here is my latest paper work... does it loo good?

    MSRP: 39,770
    Cap Cost: $37,223
    Bank Fee 825 (will ask for less)
    Total Cap: 38,048
    Cap Reduction: 8,632
    net cap: 29,416.
    residual: 26,645
    total deprec: 2,770
    monthly: 77
    monthly rental 95
    base pay: 172
    tax: 13.35
    total payment $185.62
    dmv fees: $305
    advance pay: 185
    security: 200
    drive off toal 10,000
    rate .00170 (will ask for .00125)

    36 term, 12k miles.

    thanks!
  • timozonetimozone Posts: 1
    what is Cap Reduction and money factor? this is my first time to lease a car. Do I have to know these words before I go to a dealer? Please someone explain this.
    And one more thing, the monthly payment people listed in the column, does it included tax or not? :confuse:
  • talyvantalyvan Posts: 17
    timozone, I definetly recommend you to follow the links posted by the Host on post (159) ASAP, read that first, it'll clear up a lot of your initial questions.
  • jjjzzzjjjzzz Posts: 13
    Does the $392 monthly payment include taxes? I used your numbers to calculate the payment and got $373 before taxes.

    Thanks.
  • csamherstcsamherst Posts: 2
    Anyone would advise me the lease rate for May? missed the April maniac, dont know if there's still a good deal going on.

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome timozone. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Consumers who do not know how leasing works often get taken advantage of by dealers. Once you have an idea of the general principles of leasing I would be happy to answer any specific questions that you have.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • jencamjencam Posts: 1
    In my quest for info on the X3, I stumbled upon this site and have learned so much just by reading the posts. Thank you!
    However, I do of course have some questions, and I'm wondering if someone here can help.

    If I were to walk into a BMW dealership this month (May), what should my "target" residual percentage be and what should my "target" money factor be? (39 months 10K/year,
    no added options)
    I noticed many posts on this for the month of April, but I have yet to see any recent numbers.
    By the way, I'm in NY.

    Thanks!
  • mookie18mookie18 Posts: 15
    Here's what's posted from bimmerfest for May :
    X3 3.0i Wagon / Compare Instant Lease Quotes

    24 mo/15k mi – Residual Value 75% of MSRP – .00200 Base Money Factor Rate
    36 mo/15k mi – Residual Value 65% of MSRP – .00185 Base Money Factor Rate
    48 mo/15k mi – Residual Value 41% of MSRP – .00310 Base Money Factor Rate
    60 mo/15k mi – Residual Value 33% of MSRP – .00310 Base Money Factor Rate
  • dookie83dookie83 Posts: 3
    Just to let all know, there are some dealers who are really "dealing" on X3's....I just ordered a car with 18" wheels, Premium and Cold Packages, Xenons, Heated steering wheel and Privacy Glass....MSRP is over $42K and I am paying:

    $480 Per month (includes NY 8.25% tax)
    No security deposit (as I already have another lease through BMW)just tags and registration down
    39 month
    15K per year.

    Not a bad deal for a car at this price.....dealer made it happen by reducing the selling price to just above Invoice.
  • dookie83dookie83 Posts: 3
    With what you have spelled out what is the lease cost?

    I leased a 2006 with an MSRP of $42,300 and am paying zero down (exept for tags) and $480 a month for 39 months with 15K miles per year.

    Your deal sounds beeter than most but how does it compare to mine?
  • dookie83dookie83 Posts: 3
    What dealer are you working with?
  • freshwaterfreshwater Posts: 36
    MSRP=43865, premium, navigation, xenon, cold pkg,
    The dealer want down $4450 (all inclusive, tax, first month payment, deposit, TL).
    10k/yr, 39 month $439/month.

    Is this a good lease numbers.
  • pgeterspgeters Posts: 12
    Freshwater, in early April I did a deal for the exact same option list where I put $3K down all inclusive ($930 down, plus first, security, and other charges) for 10k/yr, 39 mo, and $430/mo. including tax. I also got $2250 off of MSRP and a 67% residual. You should push for something similar to these last two numbers also. Good luck...
  • Carman:

    What is the current BMW lease program for the X3 on a 15/24? :confuse:

    I need the current residual and money factor (top tier credit, current BMW finance customer).

    Thanks Car_Man!!!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome jencam. I'm glad that you find this site so informative. According to the latest information that I have seen, if you were to lease a 2006 BMW X3 through BMW Financial Services right now for 39 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00185 and 68%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello freshwater. 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 give you my opinion of this lease if you let me know what the selling price is.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nlproductions. According to the latest information that I have seen, if you were to lease a 2006 BMW X3 through BMW Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00200 and 75%, respectively. The 39 month term is BMW FS' most attractive one for this model right now, but that might be a little long for you.

    Car_man
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  • gregdbuschgregdbusch Posts: 1
    I currently have 15 months remaining on an '04 X3 3.0 at $475/month. My wife and I just had a baby and we need a bigger car. We also are driving way more than the mileage on our lease will allow due to visiting her family in another state. I would like to upgrade to an X5, b/c it is bigger (even though yes, technically, the X3 has more cargo room). I would like to finance the X5 to avoid mileage restrictions. Can anyone help me know if a dealer might help me get out of my X3 lease and into an X5 finance? I've tried having someone assume the lease, but with no success, and I am in a bad situation right now. Please help! Thanks!
  • mschu3mschu3 Posts: 1
    Car Man:
    I just leased an X3 for my wife. Did I get a fair deal? Here are the terms:
    MSRP: $38,820
    Price Paid: $37,200
    Dealer invoice: $35,575
    Payment: $411.82
    Money factor: .00185
    Term: 39 month / 10000 miles per year
    Residual: 68%
    Bank fee: $625 (rolled into monthly payment)
    Out of pocket: $2,484.66 (sales tax=$1405.34 + reg and other fees=$217.50 + Sec deposit=$450.00 + 1st payment=$411.82)
  • jjjzzzjjjzzz Posts: 13
    Here is the best quote I have got so far:

    MSRP: $40,195(premium package, privacy glass, satellite radio, metallic color)
    Sales price: $37,665
    Dealer invoice: $36,825
    Payment: $455 (including tax at 8.25%)
    Money factor: .002
    Term: 36 month / 10000 miles per year
    Residual: 68%
    Bank fee: $625
    Out of pocket: $1,400(bank fee $625+ reg and other fees $311 + 1st payment)

    Does anyone know if this is a good deal? Thank you in advance! ;)
  • kyfdxkyfdx Posts: 29,850
    That looks liike a great deal..

    Base money factor and less than $1K over invoice...

    The only thing that I would change? I'd make a $450 security deposit.. That would lower your money factor to .00185, and lower your payment by around $10/mo... $360 saved, and you get the $450 back at the end of the lease...

    regards,
    kyfdx
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    MODERATOR
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  • 07110711 Posts: 5
    Dear Car Man:

    I'm hoping you can answer these ?'s for us ASAP! We are hoping to close on our lease deal this week. Thanks!

    1. Can you tell us if we got a good deal -
    MSRP: $41,095
    Our offer (accepted): $39,607
    Money Factor .0013 (filed paperwork by April 30 for special)
    Bank Fee: $625
    Term: 39 months, 12K/year
    Residual: 67%
    Security Deposit $350

    2. Is the .20/mile excess mileage fee negotiable up front? Our dealer told us BMW does not negotiate on this, but said they typically offer .16/mile excess a few months before lease expires. Is it true that this is a BMW policy and non-negotiable?

    3. Should we be concerned about the verbiage on the lease re: excess wear and tear? It is BMW's standard lease contract, but states that we agree to pay BMW the cost of all repairs, including, but not limited to: dented, scratched, chipped, rusted, pitted body parts, paint, trim, grill work, etc. There is no further definition of size, etc. of scratches, dents, rust, etc. It seems very subjective - who is to say what type of a scratch/dent, etc. is due to normal wear and tear, and what is considered excessive. I don't want to treat the car like a museum piece just to avoid it getting a minor scratch. The lease does not define minor scratches or state that they're excluded. In my opinion, small scratches should be normal wear and tear. Dealer said they are reasonable at the end, but how can I be sure, when nothing is clearly defined in writing??!! BMW and dealer will not further define this in our contract. What is your advice on this??!!

    4. Also, there is nothing in that contract about distinguishing rust as a mfr defect vs. rust from a chip on the paint that was never repaired. BMW Financial said that mfr defect is discussed and covered under the BMW warranty; therefore, and that their contract is separate from this. Does this sound ok to you?

    Please help us answer these questions - we need your advice ASAP!! Thank you in advance for your help!
  • talyvantalyvan Posts: 17
    0711
    #1 sounds like a decent deal, you might get better discount off the MSRP, say to a total of $2000 or $2250.. push it a little bit., other than that the rest of the numbers look good.

    #2 If you feel that you'll need more miles, you can buy them at ANY time through the BMW Owner's circle website (actually i found this as a very cool feature).

    #3 Just keep the car clean and well maintained (sp?), of course after 3 years, the dealer won't expect the carpet mats to be shine and clean, the'll look wear, but if they are burned or falling appart of course it'll be considered as an excess.. you get the idea. Also on the BWM'w website you'll find a very comprehensive checklist to run your car through and you cna even drop it at the dealership few months before your lease end to a wear and tear checkup.

    #4 A chip is a Chip and a rust is a rust.. unless you live right next to a beach or oyu get hit by a lot of rocks and drive on a lot of snow, don't be worried about this, modern cars are very well protected against rust, and unless is a very bad tratment, I don;t think that in 3 years you'll see any damage, but that's just my opinion.

    Hope it helps

    The Talyvan
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