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BMW X3 Lease Questions

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Comments

  • hotelzhotelz Posts: 2
    Hi,

    I went to our local BMW dealership yesterday with the intention of leasing the X3. Unfortunately the number we worked out and the number the dealer gave us were completely different! Just wondered if anyone can give me any advice on getting the monthly payment to around $380.
    Here what we were given:
    MSRP $38690
    36 months
    12K miles
    $2500 down
    The dealer came back with $489.84 month. Also asked about a 24 month lease with the same money down and he gave me $518.53!
    He explained that the number was high because of state and local tax (New Orleans, Louisiana). He suggested we put another $2000 down in order to get to the monthly payment we want. I don't really want to drop $4500 on a lease down payment.

    Any advice would be much appreciated.

    Thanks!
  • talyvantalyvan Posts: 17
    That's just plain BS and the salesman it's not treating you fearly, with those numbers (assuming $2500 down only, therefore your dive off fees will be around $3100 perhaps a bit more including 1st month, registration and other fees), you should be on the $420 ballpark, and if you do 39 months, it should drop to about $393/mo.

    The only way you can get those numbers is that your credit score is really bad.
  • talyvantalyvan Posts: 17
    I got similar deal as everybody is getting, and I think is fear enough. This is what i got.

    MSRP: $41,895
    Negociated: $39,645 ($2250 off, requested and given)
    Terms: 39MO, 12K/year = Total 39K miles
    Residual: $28,069 (67% of original MSRP on 39Mo)
    Money Factor: not specified on contract, but taking my rent charge is about 0.00155
    Down Payment: $0.00
    Trade-In: CRV 03, $3725
    Bank fee: $625 (tied to fight this one, but I could not write it off)
    Transfer Plates: $80
    1st Month: $385.20
    Total Out of pocket: $465.2 (1st month payment + plates transfer)

    Just for the record, the monthly paymet @ 15K/year was about $10 more, but it was just way too much for my wife's driving habits.
  • bdr127bdr127 Posts: 950
    The only way you can get those numbers is that your credit score is really bad.

    With BMWFS, credit isn't the issue when it comes to lease rates.... They are on a pass/fail system. If you're approved with a 600 score, you get the same rate as an 800 score.
  • hotelzhotelz Posts: 2
    Thanks everyone for the info - very helpful.

    I don't think it's my credit score - it's currently at 735 which I presume falls into the 'good' category.
  • talyvantalyvan Posts: 17
    Then try plan B, just ask for a better deal with similar numbers as those posted on this forum, remember that as long as you don't sign anything, you can agree anything to the sales manager and start a different talk with the Finance Manager, you know as a last resource to get the fine print numbers out of them.

    Good luck and please keep us posted.
  • My wife leased a BWM X3 earlier in the year, and got prices and payments much worse than what you are all discussing here.

    3000 dollar plus down payment, and 660 a month.

    Could be just bad sales stuff on her part, so i would like to learn more about the hidden tricks and questions to ask... Anyone willing to give me a call and coach me a bit on how to handle this next time and what to look for?

    We have to sell our vehicle/get out of the lease right away as we are being transferred to Vancouver, and cannot import the vehicle at a reasonable cost. Looking for ideas!

    Also, we are very concerned that upon review of our legal contract, in the TRADE IN section it states we traded in a 2001 BMW X5??? We didn't? It says it was worth 18500, and that 18500 was owed on it, and we net zero on the transaction, but shouldn't that void our contract? Could it be a VIN scam or something? Or something...??? I mean, we have never owned another BMW...

    HELP!

    Thanks

    JM
  • talyvantalyvan Posts: 17
    1st Off... OUCH!!.. as a perspective, I pay less than you for my S4 and I took delivery of it with $2500 total.

    It does indeed sound fishy, especially if you never traded an X5..and let me tell you that if that's the case, is basically the reason for that high payment because you're increasing the ammount to be depreciated, plus all the taxes upfront of the X3 (about $2800 because is IL).

    Have that contract revised ASAP!, as a friendly way, I'd aproach to the Finance Manager 1st on the dealership, however, after signing that contract, it all belongs to BMWFCNA... but is always better to talk to somebody face-to-face.

    As for your relocation, get the contract straight up first, after that, if you want the car and is afordabble to you as a regular finance, search for a buyout lease at any financial institution. For experience I can tell you that a lease is not that different than a regular finance in terms of getting out of the deal, of course, is always easier when you take the buyout route or trade-in for a step up in the model line up.
  • Could you please clarify what you mean by this paragraph?

    "It does indeed sound fishy, especially if you never traded an X5..and let me tell you that if that's the case, is basically the reason for that high payment because you're increasing the ammount to be depreciated, plus all the taxes upfront of the X3 (about $2800 because is IL)."

    Could the x5 they listed in there be some fishy thing or trick? They listed a non existant trade, saying we gave them an x5 worth 28500, and that is had a prior credit balance of 28500 with anet trade value of N/A...
  • bdr127bdr127 Posts: 950
    Could the x5 they listed in there be some fishy thing or trick? They listed a non existant trade, saying we gave them an x5 worth 28500, and that is had a prior credit balance of 28500 with anet trade value of N/A...

    If you needed to get to a total OTD price, maybe it created some tax savings by saying there was a trade-in credit.... hmmm....
  • 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
    Smart Shopper / Prices Paid Forums
  • 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.
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