2015 BMW 2-Series Lease Questions

roglaws

Moreover, not only is BMW saying it --- they are going to be entering into contracts with that residual. So, depending on how long they do it, 3 years from now it is very likely that the "highest" market value of a used 2016 m235i will be 56 percent of its 2015 suggested price.

kyfdx

roglaws said:

Moreover, not only is BMW saying it --- they are going to be entering into contracts with that residual. So, depending on how long they do it, 3 years from now it is very likely that the "highest" market value of a used 2016 m235i will be 56 percent of its 2015 suggested price.

Residuals are rarely predictive of actual value at lease end.

The 2015 residuals are artificially high. It's BMW's form of a customer incentive. Not uncommon at the end of a model year.

ko10

Thanks in advance to the moderator for excellent work!
I'm considering a 2015 m235ix 3yr 10k lease. 51.5k msrp, selling price <47k, 0 down, 7.7k at signing incl 7*MSD -> $499/mo. 
Is it a good deal?
thx,

roglaws

I suppose there are a lot of ways to argue the economics of it all. However, if you look back through all the posts on lease rates the 2015 2 series residuals for 3 years 36 k were always around 60 or 61%. Although one could look at that as a customer incentive, isn't it really market value price support?

The pitch would go something like this --Hey --- our vehicles are the ultimate driving machine because not only do they perform well --- they wear well -- their value holds up over time. If you buy competitor x's car that car will be worth only 40% of its cost after 3 years. But not our cars --- not only are you going to get the incredible driving experience, a few years down the road the car will be worth much more. Look at our residual rates. We say this car will be worth about 60% of its value after 3 years. We put our money where our mouth is. The cars we lease --- when they come off lease --- to buy it then you are going to have to pay 61% of its current MSRP.

kyfdx

They manipulate money factors and residuals to hit a payment that they think will sell the volume and revenue they need to make money. I think you are trying to read too much into it.

Making plans for ED is exciting and big emotional investment. Naturally, it's something you have to plan ahead for, given the lead times. The lease program is something that you can't control, though. I'm sure it's disappointing to have it not work out. It's not just the car, it's the trip..

Michaell

ko10 said:

Thanks in advance to the moderator for excellent work!
I'm considering a 2015 m235ix 3yr 10k lease. 51.5k msrp, selling price <47k, 0 down, 7.7k at signing incl 7*MSD -> $499/mo. 
Is it a good deal?
thx,

Is the $499/mo with tax? If so, a very good deal on a sweet car.

dvanos

What's build out cash??

Thanks.

ko10

Michaell said:

Thanks in advance to the moderator for excellent work!
I'm considering a 2015 m235ix 3yr 10k lease. 51.5k msrp, selling price <47k, 0 down, 7.7k at signing incl 7*MSD -> $499/mo. 
Is it a good deal?
thx,

Is the $499/mo with tax? If so, a very good deal on a sweet car.

Sales tax due at signing. 3.5k for MSD, so about 4k at signing for tax, fees etc.

kyfdx

dvanos said:

What's build out cash??

Thanks.

Manufacturer incentive

Michaell

ko10 said:

Michaell said:

ko10 said:

Thanks in advance to the moderator for excellent work!
I'm considering a 2015 m235ix 3yr 10k lease. 51.5k msrp, selling price <47k, 0 down, 7.7k at signing incl 7*MSD -> $499/mo. 
Is it a good deal?
thx,

Is the $499/mo with tax? If so, a very good deal on a sweet car.

Sales tax due at signing. 3.5k for MSD, so about 4k at signing for tax, fees etc.

Excellent - thanks for clarifying

genen

I am trying to do something less popular I guess because my dealer can't give me a good answer.

I'm looking at a fully optioned 2016 M235i X convertible. Sticker is $59120. I want to do a 2 year 10k mile lease with 1 payment... meaning tell me the depreciation and I'll give you a check for $25k or whatever it is at signing.

So far all he sent me was basically a 24 month lease where all the payments are added together. No point in my paying interest if I make the entire payment at once!

What should I be telling him? What is the residual on that? does money factor even matter on single payment?

roglaws

Although I have no personal experience in this type of lease, I would say that while you have an argument that you should not have to pay interest on the depreciation amount since you are paying that upfront, it seems to me that you still have the use of BMW money for the remaining value of the car over those two years.

Michaell

genen said:

I am trying to do something less popular I guess because my dealer can't give me a good answer. I'm looking at a fully optioned 2016 M235i X convertible. Sticker is $59120. I want to do a 2 year 10k mile lease with 1 payment... meaning tell me the depreciation and I'll give you a check for $25k or whatever it is at signing. So far all he sent me was basically a 24 month lease where all the payments are added together. No point in my paying interest if I make the entire payment at once! What should I be telling him? What is the residual on that? does money factor even matter on single payment?

You will get a break on the interest but it won't be waived.

genen

roglaws said:

Although I have no personal experience in this type of lease, I would say that while you have an argument that you should not have to pay interest on the depreciation amount since you are paying that upfront, it seems to me that you still have the use of BMW money for the remaining value of the car over those two years.

Not really - that's why the residual value is lower than the 'likely resale value' of the car. They are locking in a rate that says the first 3 years will reduce the price by 44%, while being able to sell the vehicle for more than the 56% upon return. If I buy the car outright and then sell in 3 year, I would be very surprised if I only got 56% of the original value paid. But maybe you're right.

kbeesh

my lease quote for 3 yr 10k for a m235 xdrive Msrp $50,850

amount due at signing with 7 MSD's and $2k down - $5850

monthly payment with tax - $549

USAA - $500 CREDIT
BMW BUILD-OUT - $500 CREDIT

$46,900 selling price with $1000 credit

how does that sound?

kyfdx

kbeesh said:

my lease quote for 3 yr 10k for a m235 xdrive Msrp $50,850

amount due at signing with 7 MSD's and $2k down - $5850

monthly payment with tax - $549

USAA - $500 CREDIT
BMW BUILD-OUT - $500 CREDIT

$46,900 selling price with $1000 credit

how does that sound?

At $46,900 CAP cost, I get $504/mo.+tax, with .00081 MF and 61% residual

Looks like a good deal

dvanos

kyfdx said:

dvanos said:

What's build out cash??

Thanks.

Manufacturer incentive

Does it apply to cars on the lot or when you build one to order?

kyfdx

dvanos said:

kyfdx said:

dvanos said:

What's build out cash??

Thanks.

Manufacturer incentive

Does it apply to cars on the lot or when you build one to order?

Well.. it's too late to build a 2015 model, I think... so, every 2015 2-series..

mommygal1016

Question...on the lot yesterday, planned to purchase a 2015 m235i fully loaded (pretty much every package and option available). The vehicle was considered used, 1 owner with 2500 miles. We have a+ credit and can qualify for the best available finance options. I was concerned about negoatiating the car price which they kept referring back to the ....MSRP...NEW, not the USED price of the car. Long story short, they stated MSRP 53,500 BUT ITS NOT NEW so that is an invalid MSRP (Right?) List price discounted from dealer 47,000 and I negotiated a price of 45k. I walked away at finance- the money factor for a lease was .0023 which is ridiculous. My husband wanted the car so I planned to finance for 72 mo instead to keep the payment comfortable. They offered 2.19 rate.....they had a deal if they could offer 1.9, but it was late...I was done and they made excuses. Questions- 1. MF should not be that high, even for used correct? 2. Residual value they came with was $24,119 (I thought the residuals were higher right now on 15's?) 3. Seems like I may be better off to purchase brand new based on the price? I can't figure out if this is even a good deal. Advice?

Michaell

mommygal1016 said:

Question...on the lot yesterday, planned to purchase a 2015 m235i fully loaded (pretty much every package and option available). The vehicle was considered used, 1 owner with 2500 miles. We have a+ credit and can qualify for the best available finance options. I was concerned about negoatiating the car price which they kept referring back to the ....MSRP...NEW, not the USED price of the car. Long story short, they stated MSRP 53,500 BUT ITS NOT NEW so that is an invalid MSRP (Right?) List price discounted from dealer 47,000 and I negotiated a price of 45k. I walked away at finance- the money factor for a lease was .0023 which is ridiculous. My husband wanted the car so I planned to finance for 72 mo instead to keep the payment comfortable. They offered 2.19 rate.....they had a deal if they could offer 1.9, but it was late...I was done and they made excuses. Questions- 1. MF should not be that high, even for used correct? 2. Residual value they came with was $24,119 (I thought the residuals were higher right now on 15's?) 3. Seems like I may be better off to purchase brand new based on the price? I can't figure out if this is even a good deal. Advice?

1. We don't have any information on lease numbers for used (previously titled) BMWs
2. See #1
3. Yes

mommygal1016

Thank you! This is very helpful. Any advice on a discounted amount on a used 2015? They seem to treat the DEMO's different than the "1 owner used" ...bottom line, they are used cars..not new. Seems like I should see a minimum of 10% discount on the price of the 2015 USED vehicle from MSRP of new. Or is there a better "rule" associated with it. Side note...I love this forum, I've been lurking here and reading for DAYS! This is SOOO helpful!

Michaell

mommygal1016 said:

Thank you! This is very helpful. Any advice on a discounted amount on a used 2015? They seem to treat the DEMO's different than the "1 owner used" ...bottom line, they are used cars..not new. Seems like I should see a minimum of 10% discount on the price of the 2015 USED vehicle from MSRP of new. Or is there a better "rule" associated with it. Side note...I love this forum, I've been lurking here and reading for DAYS! This is SOOO helpful!

Demo vehicles have not been titled, and are eligible to be leased as if new. However ...

1. you should get more of a discount on a demo than on a new car with 0 miles
2. the residual value is adjusted downwards, as well, to account for the miles

How much? Depends. Residuals are adjusted, I think, .10-.25 per mile (check the 3-series lease forum; lots more posts there)

Same with the selling price.

lanameras

I'm looking to get into a 2015 M235xi by the end of August. Msrp is $51,800. Sales price is $47,295. $0 out of pocket.

The dealer came back with $688 for 36/10. When i asked the residual and mf, he said 58% and .0017. He said they assume you don't have tier 1 and I need to do a credit app before they can drop the mf or tell me. Why should I run an app before I know what the figures really are? At that rate, I might as well order the M2. 

Any of this add up?

Michaell

lanameras said:

I'm looking to get into a 2015 M235xi by the end of August. Msrp is $51,800. Sales price is $47,295. $0 out of pocket.

The dealer came back with $688 for 36/10. When i asked the residual and mf, he said 58% and .0017. He said they assume you don't have tier 1 and I need to do a credit app before they can drop the mf or tell me. Why should I run an app before I know what the figures really are? At that rate, I might as well order the M2. 

Any of this add up?

.00170 is the max markup of the MF ... base is .00130.

With the base MF, I get a pre-tax payment of $580/mo.

You also need to find out the net cap cost - if different than the sales price, ask the dealer to explain why.

lanameras

Michaell said:

I'm looking to get into a 2015 M235xi by the end of August. Msrp is $51,800. Sales price is $47,295. $0 out of pocket.

The dealer came back with $688 for 36/10. When i asked the residual and mf, he said 58% and .0017. He said they assume you don't have tier 1 and I need to do a credit app before they can drop the mf or tell me. Why should I run an app before I know what the figures really are? At that rate, I might as well order the M2. 

Any of this add up?

.00170 is the max markup of the MF ... base is .00130. With the base MF, I get a pre-tax payment of $580/mo. You also need to find out the net cap cost - if different than the sales price, ask the dealer to explain why.

Is that the right residual though? I kept seeing 60-61% for the 2015s.  

Michaell

lanameras said:

Michaell said:

lanameras said:

I'm looking to get into a 2015 M235xi by the end of August. Msrp is $51,800. Sales price is $47,295. $0 out of pocket.

The dealer came back with $688 for 36/10. When i asked the residual and mf, he said 58% and .0017. He said they assume you don't have tier 1 and I need to do a credit app before they can drop the mf or tell me. Why should I run an app before I know what the figures really are? At that rate, I might as well order the M2. 

Any of this add up?

.00170 is the max markup of the MF ... base is .00130.

With the base MF, I get a pre-tax payment of $580/mo.

You also need to find out the net cap cost - if different than the sales price, ask the dealer to explain why.

Is that the right residual though? I kept seeing 60-61% for the 2015s.  

58% is the 36/15 residual - 60% for 12K and 61% for 10K. Confirm with the dealer how many miles per year they are quoting.

lanameras

Michaell said:

Michaell said:

I'm looking to get into a 2015 M235xi by the end of August. Msrp is $51,800. Sales price is $47,295. $0 out of pocket.

The dealer came back with $688 for 36/10. When i asked the residual and mf, he said 58% and .0017. He said they assume you don't have tier 1 and I need to do a credit app before they can drop the mf or tell me. Why should I run an app before I know what the figures really are? At that rate, I might as well order the M2. 

Any of this add up?

.00170 is the max markup of the MF ... base is .00130. With the base MF, I get a pre-tax payment of $580/mo. You also need to find out the net cap cost - if different than the sales price, ask the dealer to explain why.

Is that the right residual though? I kept seeing 60-61% for the 2015s.  

58% is the 36/15 residual - 60% for 12K and 61% for 10K. Confirm with the dealer how many miles per year they are quoting.

I confirmed with him. Sales price is $47,295. Dealer fees $604. 61% residual .0013 MF 36/10 with 8.875% sales tax. All in is $642/mo. I used 5 diff online calculators and get $602-605.  

Michaell

lanameras said:

Michaell said:

lanameras said:

Michaell said:

lanameras said:

I'm looking to get into a 2015 M235xi by the end of August. Msrp is $51,800. Sales price is $47,295. $0 out of pocket.

The dealer came back with $688 for 36/10. When i asked the residual and mf, he said 58% and .0017. He said they assume you don't have tier 1 and I need to do a credit app before they can drop the mf or tell me. Why should I run an app before I know what the figures really are? At that rate, I might as well order the M2. 

Any of this add up?

.00170 is the max markup of the MF ... base is .00130.

With the base MF, I get a pre-tax payment of $580/mo.

You also need to find out the net cap cost - if different than the sales price, ask the dealer to explain why.

Is that the right residual though? I kept seeing 60-61% for the 2015s.  

58% is the 36/15 residual - 60% for 12K and 61% for 10K. Confirm with the dealer how many miles per year they are quoting.

I confirmed with him. Sales price is $47,295. Dealer fees $604. 61% residual .0013 MF 36/10 with 8.875% sales tax. All in is $642/mo. I used 5 diff online calculators and get $602-605.  

Find out what the net cap cost is - if higher than the sales price, get the dealer to explain why.

At the moment, I show about $586/mo using those numbers - with tax.

amaness286

Looking for the most up to date 2015 2 series MF/residual value info I can get. This is what I was quoted today from a dealer in Ohio. Does that match up with the info you have?

228i M-Sport with manual- $41,295, 61% residual, .00150 MF, $925 aquisition fee, $250 OH document fee.

Michaell

amaness286 said:

Looking for the most up to date 2015 2 series MF/residual value info I can get. This is what I was quoted today from a dealer in Ohio. Does that match up with the info you have?

228i M-Sport with manual- $41,295, 61% residual, .00150 MF, $925 aquisition fee, $250 OH document fee.

Sort of.

I agree with the 61% residual for 36/10 and the $925 acquisition fee.

The MF is marked up - base MF is .00130 this month.

nicknace

Hi. Could you help me with a MF and residual value on a 2015 and 2016 M235i in Mass? I'm looking at 24 months, 16k miles/yr and zero down. Many thanks

kyfdx

nicknace said:

Hi. Could you help me with a MF and residual value on a 2015 and 2016 M235i in Mass? I'm looking at 24 months, 16k miles/yr and zero down. Many thanks

24mo, 15K/yr?

2015: .00130 MF and 64% residual
2016: .00130 MF and 60% residual

Frankly, BMW is not offering a good lease deal on the 24 month term. The 36 month residuals are just 6% lower, and that's the way you should go.

nicknace

Thank you!

nicknace

Strange that the residual would be higher on the 2015 than the 16. I would think the newer car would have a higher residual.

Michaell

nicknace said:

Strange that the residual would be higher on the 2015 than the 16. I would think the newer car would have a higher residual.

BMW is trying to get rid of the remaining stock of '15's; this is one way to accomplish that.

bananaero

Hello,
Any information for 2015 M 235i Xdrive? 10k/36 months? Any incentives?
Thanks always!

Michaell

bananaero said:

Hello,
Any information for 2015 M 235i Xdrive? 10k/36 months? Any incentives?
Thanks always!

.00130 and 61%. $500 buildout credit.

quiet_kisho

Looking for MF/RV for 2015 228i/228i xdrive/m235i at 36/12k in Maryland.

Michaell

quiet_kisho said:

Looking for MF/RV for 2015 228i/228i xdrive/m235i at 36/12k in Maryland.

.00130 and 60%. $500 buildout credit.

lanameras

Hi,

Can someone give me the residual and mf for October for a '15 m235xi?? Thanks!

Michaell

lanameras said:

Hi,

Can someone give me the residual and mf for October for a '15 m235xi?? Thanks!

No 2015 2-series lease info for October ... yet.

lanameras

Michaell said:

Hi,

Can someone give me the residual and mf for October for a '15 m235xi?? Thanks!

No 2015 2-series lease info for October ... yet.

It was an overzealous preemptive question! Only like 20 of those left in the country and supposedly a six month pull ahead starts tomorrow. *fingers crossed*. 

Michaell

lanameras said:

Michaell said:

lanameras said:

Hi,

Can someone give me the residual and mf for October for a '15 m235xi?? Thanks!

No 2015 2-series lease info for October ... yet.

It was an overzealous preemptive question! Only like 20 of those left in the country and supposedly a six month pull ahead starts tomorrow. *fingers crossed*. 

We have some information for BMW in October ... just doesn't include any 2-series numbers. If there are only 20 on the ground in the whole US, it's possible there won't be any support on them. We'll know when more information becomes available.

lanameras

Michaell said:

Michaell said:

Hi,

Can someone give me the residual and mf for October for a '15 m235xi?? Thanks!

No 2015 2-series lease info for October ... yet.

It was an overzealous preemptive question! Only like 20 of those left in the country and supposedly a six month pull ahead starts tomorrow. *fingers crossed*. 

We have some information for BMW in October ... just doesn't include any 2-series numbers. If there are only 20 on the ground in the whole US, it's possible there won't be any support on them. We'll know when more information becomes available.

Michaell

lanameras said:

Michaell said:

Michaell said:

Hi,

Can someone give me the residual and mf for October for a '15 m235xi?? Thanks!

No 2015 2-series lease info for October ... yet.

It was an overzealous preemptive question! Only like 20 of those left in the country and supposedly a six month pull ahead starts tomorrow. *fingers crossed*. 

We have some information for BMW in October ... just doesn't include any 2-series numbers. If there are only 20 on the ground in the whole US, it's possible there won't be any support on them. We'll know when more information becomes available.

I'm sure you can get a 2016

carbony13

Thanks for all the great info, I would not have known about the USA drive event or 7 MSDs to save extra $$$

Can anyone kindly provide 2015 M235i numbers for October 15K/36 months. I believe September was 58% and .0013

Thanks

Michaell

carbony13 said:

Thanks for all the great info, I would not have known about the USA drive event or 7 MSDs to save extra $$$

Can anyone kindly provide 2015 M235i numbers for October 15K/36 months. I believe September was 58% and .0013

Thanks

.00134 and 58%. $500 buildout cash.

jdfletchx7

Can you provide the MF and residual for 2016 M235i xdrive convertible 36/12k?

Michaell

jdfletchx7 said:

Can you provide the MF and residual for 2016 M235i xdrive convertible 36/12k?

.00134 and 56%. $750 option credit.

carbony13

Got two offers for 2015 M235i. The selling price is only $175 difference, but the monthly payment is $20 More? I see the Money Factor is 0.00004 difference and they applied the $1000 rebate differently but I don't know if it accounts for all the difference. Not sure what is the Total Annual fee is for Dealer 2. Dealer 2 is closer to me so wondering if anyone can comment.

Also, is the Build out cash of $500 included in the negotiated selling price, or is it additional?

Dealer 1

MSRP $52,035.00

Term 36 Months
Mileage 15,000/year
Money Factor 0.00081
Residual Factor 58%
Selling Price $48,325.00
Total Capitalized Cost (added $925 bank fee)
$49,250.00
Residual Value $30,180.30
Monthly Payment $565.46
Tax (8.75%) $49.48
Monthly Payment + Tax $614.94
Capital Reduction $1,000.00
Cap Reduction Tax (8.75%) $94.50
License & Registration $449.00
Documentation Fee $80.00
First Payment $614.94
Security Deposit $4,550.00
Drive Off $6,788.44
Rebate (TEAM USA REBATE) $1,000.00
Due at Signing $5,788.44

Dealer 2

MSRP $51,430
Term 36 Months
Mileage 15,000/year
Money Factor 0.00085
Residual Factor 58%
Selling Price $48,500
Rebate (TEAM USA REBATE) $1,000.00
Total Capitalized Cost ($47,500 + $925 bank fee)
$48,425.00
Residual Value $29829.40
Monthly Payment $583.06
Tax (8.75%) $51.02
Monthly Payment + Tax $634.08
Capital Reduction NONE
Cap Reduction Tax (8.75%) NONE
License & Registration $421.00
Documentation Fee $80.00
First Payment $634.08
Total Annual Fee $421.00
Security Deposit $4,550.00
Drive Off $5,728.28