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BMW 3-Series Lease Questions

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Comments

  • jasonmdbmwjasonmdbmw Posts: 117
    Diplomatic pricing works the same as Euro delivery. You get the 5% diplomatic savings off the base price but you can also negtiate off that price after adding your packages/options.
  • Thanks for confirming that, Jason. So if I am able to negotiate to pay say $500 over invoice (including options), then the diplomatic pricing entitlement really does me no good, as $500 over invoice is a lower price than 5% off MSRP. Is this correct?

    I thought that maybe diplomatic pricing meant that the dealer's invoice was 5% less, in which case paying $500-$1000 over this (reduced) invoice would produce substantial added savings.
  • rayainswrayainsw Posts: 2,577
    Last I checked, the Dipl. cost \ invoice \ wholesale price was lower
    than USA POE - but not quite as low as European Deliv.
    Example -
    USA POE = $29,810
    Euro Deliv = $27,720
    Dipl = $28,320
    Good luck!
    - Ray
    Did the Euro Deliv almost 2 years ago....
  • kyfdxkyfdx Posts: 31,120
    edited April 2013
    The invoice is lower, as well, you should be able to negotiate a lower price than you would, otherwise.... then, take any incentives on top of that...

    Very few dealers are going to be up on Diplomatic pricing.... and, those that are will probably try to take advantage of you...

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • First off. I want to thank everyone for providing such useful information, and for answering my questions. What a great forum.

    I just got an offer from my dealer, which I think is a pretty good deal> it may not be as low as some others have gotten, but I hate to haggle and would rather not call a bunch of dealers to compare quotes if I could avoid it. here's the offer:

    335i xDrive, with options

    MSRP: $57,695
    Dealer Offer: $51,900

    If I can't do significantly better than that, I'll pull the trigger this Friday. If the most I'd be able to get is another $300-$500, I'm probably not going to bother. Your thoughts?
  • jasonmdbmwjasonmdbmw Posts: 117
    MSRP and the invoice price are both reduced by 5%.
  • 11xi11xi Posts: 1
    CarMan - what is current money factor & residual for 2013 328 convertible & 335 convertible with 36 mos and 10k/yr? Thanks!
  • Thanks for confirming that Jason. Dealer suggested that the Diplomatic rebate applied only to the base price (excluding options). If this is so, the true invoice price works out to be about $50,958--meaning I'm paying a little less than $1,000 over invoice.

    Not a perfect deal, but not bad either. Don't feel like haggling and shopping around to lower the price by another $500-$600. I like the guy. It's the closest dealership. And since I'm leasing, the difference is maybe $5/month.

    I'm happy. (I think.) MAybe I'll try to get free mats or something.

    Thanks to everyone for your assistance.
  • Thanks for your advice kyfdx--especially for clarifying that incentives should be treated apart from any negotiation, and should be brought into the equation only after you've arrived at a price. Never looked at it that way. Alas, the only cash incentive available to me, at least in my area, is the $750 Loyalty contribution, which doesn't apply to me.

    Thanks again.
  • bimmerlabimmerla Posts: 1
    Will there be any good 335i sedan lease deals anytime? If so when and what type of deals (money wise). Thanks!
  • I ordered a 2013 AH3 with a msrp of 57,395.
    36month x 10kmiles
    With 3500 Eco /1000 lease cash/750 loyalty.
    585.00 tax included with 1000.00 out of pocket.
    Is this a good deal?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jewel585. BMW Financial Services' April buy rate lease money factor and residual value for a 36-month lease of a 2013 335i Coupe with 10,000 miles per year are .00129 and 65% for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical lease of a 335i Sedan are exactly the same. The only difference in the programs on the two, and this is a relatively large one, is that there is a $1,500 cash incentive on the Coupe but no cash this month on the Sedan.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome leoblue. BMW FS' April buy rate lease money factor and residual value for a 24-month lease of a 2013 328i xDrive Sedan with 15,000 miles per year are .00129 and 68% for consumers who qualify for its top credit tiers.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi alexandergld. While there is always tons of exceptions to this, generally speaking three year leases have lower monthly payments than two year leases do. This is because new vehicles experience their most rapid depreciation over the first year of ownership. Three year leases have a larger number of monthly payments to spread out this large initial depreciation hit out over than two year leases do.

    What you heard about leases with 10,000 miles per year is correct. 10k leases have higher residual values than 15k leases do and in turn they have lower monthly payments.

    BMW Financial Services' base acquisition fee is only $725. If the dealer is attempting to charge you more than that, they're padding it. Make sure to look at that extra $200 in the context of the whole deal and ideally try to get the dealer to eliminate it if possible.

    Vehicles' residual values are set in stone and cannot be altered by consumers or dealers.

    Consumers who lease through BMW can put down extra security deposits to buy down their vehicle's money factor. This is different and preferable to a making a capitalized cost reductions because lessees actually get any security deposits that they make back at lease-end.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nchi. BMW Financial Services' April buy rate lease money factor and residual value for a 36-month lease of a 2013 328i Sedan with 15,000 miles per year are .00129 and 62% for consumers who qualify for its top credit tiers.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings 11xi. BMW Financial Services' April buy rate lease money factor and residual value for a 36-month lease of a 2013 328i Convertible with 10,000 miles per year are .00129 and 65% for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical lease of a 2013 335i Convertible are .00129 and 65%, again.

    There is a $1,500 cash incentive on leases of both of these cars.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • degnan78degnan78 Posts: 4
    Hey Car_Man and everyone,

    This is a great forum with tons of good advice. I'm new to BMW as well as leasing, and I would love to get into a 2013 328i xDrive sedan as cheap as possible (no options is fine with me). I saw one lease deal advertised near me (in Massachusetts), the MSRP is 41,295, and the offer is $309 per month for a 36-month lease with 10k miles per year and a $2999 down payment. I then contacted the dealer asking about the money factor and the residual, and they said .00159 and 65%.

    Do these numbers sound good? Should I try to get them to reduce the money factor to .00129? Can I also avoid the down payment (I've heard that's a bad idea with a lease) and instead put down multiple security deposits instead?

    Thanks in advance!!
  • swameeswamee Posts: 32
    As per the advertised rates for 328i, for an MSRP of 40845, with a down payment of 2750 +725 Acquisition, the monthly payment for 10k/yr is supposed to be 349/mth before taxes (excluding other fees). If I build a model with this MSRP & estimate payment, the model requires 5454 as downpayment for the monthly payment to end up at 349/th - what gives? At a down payment of $3,475 the mthly payment works to 407/mth - is the bmw payment estimator junk ?what am i missing?
  • kyfdxkyfdx Posts: 31,120
    The lease example doesn't give a selling price. You are assuming MSRP as selling price, but there is likely some unspecified dealer discount.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • swameeswamee Posts: 32
    You mean the difference between the advertised down payment & 5454 is the min. dealer discount?seems like we can back into it & use that as a starting point in negotiations no?
  • I ordered a 2013 AH3 with a msrp of 57,395.
    36month x 10kmiles
    With 3500 Eco /1000 lease cash/750 loyalty.
    585.00 tax included with 1000.00 out of pocket.
    Is this a good deal?
  • jmatero2jmatero2 Posts: 4
    I'm still awaiting the MF, residual details but was just quoted:

    MSRP: 43,045
    Sale$: 40,201

    24/12k: $417 +tax
    36/12k: $382 +tax

    Both with $5,000 at signing. The sale price seems fair but that seems high per month with $5,000 down, no?
  • swameeswamee Posts: 32
    $412+taxes or $366+taxes/fees sounds more reasonable
  • ranjohnranjohn Posts: 17
    I'm getting a little higher than your results. How did you do it?
  • swameeswamee Posts: 32
    Im getting even lower results if I tweak the estimator to use $2,844(43045-40201) as the trade-in and 5k as cash down. Getting 331 for 24/12k & 318 for 36/12k
  • carguy778carguy778 Posts: 33
    Hello,
    Can someone please explain to me how does security deposit help when leasing a car instead of Down payment. And what is a MF and Residual on a used 2013 328xi, original MSRP $46.

    THANKS.
  • carguy778carguy778 Posts: 33
    Lease Formula

    Here are the mechanics of how to calculate your own lease, without a lease calculator. Understanding the formula comes in handy when you are at the dealership and do not have access to internet or a computer with a lease calculator. It’s pretty useful if you want to cross-check the dealers math.

    What you need:

    MF: The Money Factor. (You can find out what your interest rate is by multiplying the money factor by 2400)
    RV: Residual Value. What the car is worth at lease-end.
    CC: The Capitalized Cost AKA Sale Price.
    LST: Local Sales Tax.
    M: Term of the lease (24,36,48,etc)

    I am going use the latest quote I got for the G37 I was shopping for as an example.

    Step 1: Monthly Depreciation Charge

    (CC – RV) / M

    (32,916 – 22,185) = 10,731 / 36 = $298.08

    Step 2: Monthly Finance Charge

    (CC + RV) * MF

    (32,916 + 22,185) = 55,101 * 0.00186 = $102.49

    Step 3: Total Monthly Charge (plus tax)

    (Monthly Depreciation Charge + Monthly Finance Charge) * LST

    (298.08+102.49) = 400.57 * 1.0825 (8.25% tax) = $433.62

    The actual quote I got is $453 a month. Why the $20 difference? Because they rolled in the Acquisition fee (bank fee) of $595 into the Cap Cost of the car. So keep that in mind next time you lease. Its probably better to pay that upfront. Otherwise, that $595 ends up costing $720 after all is said and done.
  • gd0tgd0t Posts: 4
    hey,

    i'm in the market for a 328i as well. did you lease yet? i'm curious to know the deal you ended up with.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi degnan78. The dealer is attempting to mark this car's money factor up. You definitely should try to get them or another local dealer to lease you the 3 that you want using the .00129 buy rate.

    You definitely can, and should, avoid making a capitalized cost reduction on your lease. Of course, eliminating the cap cost reduction will make your monthly payment a little higher, but it's the right thing to do on a lease. You could if you wanted to lower your payment by making multiple security deposits.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi carguy778. BMW Financial Services lowers vehicles' money factors by 0.00007 for every extra security deposit that the lessee makes, up to a maximum total discount of .00049.

    BMW FS' April buy rate lease money factor and residual value for a 36-month lease of a 2013 328xi Sedan with 15,000 miles per year are .00129 and 62% for consumers who qualify for its top credit tiers.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.