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BMW 3-Series Lease Questions

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  • Hi Car_Man,

    Could you give me a ballpark estimate on an '06 330i lease with the following numbers:

    MSRP: 43,730
    Negotiated: 41,980
    12k/yr
    36mo.

    Thx.
    Mike
  • ladyaladya Posts: 3
    Hi Car Man,

    Can you provide suggestions on if this is a good deal on a 06' 325i, and what should I do to get the best deal

    MSRP: 36,680
    Negotiated: 35,800
    12k/yr
    $2,500 down
    60 mo.
    $537 per mos.

    Thx.
    LadyA
  • Hi car man!

    Will be leasing soon a '06 325i and want to get info before dealing with those "slick" car salesman. I had one tell me he can lower my lease payment with taking a stacked deposit that will be returned to me once lease is over? Have you heard of that? Without it he is quoting me approx $595/mo

    What will my lease pymt be on 06 BMW 325i for 36 mos and 15/yr with -0- down pymt

    MSRP 30,900
    Premium Pkg= 2,900
    Dest charge = 695
    TOTAL: 34,970 Dealer by phone will only take $500 off MSRP giving me a new total of $ 34,470

    Thanks! :)
  • bdr127bdr127 Posts: 950
    Will be leasing soon a '06 325i and want to get info before dealing with those "slick" car salesman. I had one tell me he can lower my lease payment with taking a stacked deposit that will be returned to me once lease is over?

    He's not being "slick".... He's referring to Multiple Security Deposits (MSD), and it is a far better way to reduce your cap cost without putting money down (in the traditional sense). You can make up to 5 total security deposits, I believe, which are each about the same amount as the monthly payment. For doing that, you get a slight discount in MF (think interest rate). Plus, you get your security deposits back at the end, so long as the car is in good shape and you're not over your allocated miles. It's typically a good thing to take advantage of if you are thinking about reducing your cap cost and monthly payment.
  • cece3cece3 Posts: 2
    I have never leased a car before. Since it is the end of the 2005 season, I thought I should get a pretty good deal on one but after going to the dealership I am completely confused. My husband and I had planned on purchasing a 325ci convertible but the salesman pushed for the lease and I have no idea if we are getting any sort of a deal or not. I do not even have a final price on what the car is. All he gave us were the best monthly payments that he said he could do.
    Here's the details: 24 month lease,
    20,000 miles per year,
    Car's listed price was $46,300. (sport package, and xenon headlights were the extra options, automatic steptronic),
    1550 upfront payment.
    Monthly payment will be $705.00
    Our sales tax rate is 6%.
    Also, we are trading in a 2000 540i with 74,000 miles that has been in a rear end collision, no frame damage. They are giving us $10,000 for that.
    I know that I am probably missing a lot but this whole lease thing has got my head spinning. And should I be even expecting a lot better since this is a 2005 versus a 2006? Any help would be greatly appreciated, the sooner the better since they are holding our deposit.Thanks!!!
  • Hi treadwear. You never mentioned the selling price of the car 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 car 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 on this deal if you let me know what its selling price is.

    Car_man
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  • Hello sjr1. The main problem that I have with this deal is the large down payment that you are making. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 325i would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all. The only reason why you would need to make such a large down payment is if you were extremely upside down on your trade.

    I would be happy to give you my opinion on the lease payment that you were quoted, however in order for me to do so it would be a big help if you were to provide me with this car's selling price. This is a very important number for you as a consumer to know anyhow.

    Car_man
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  • I'd be happy to estimate this car's lease payment for you, Mike. According to my calculations, if you were to lease a 2006 BMW 330i with an MSRP of $43,730 and a selling price of $41,980 through BMW Financial Services right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $558.

    Car_man
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  • Greetings LadyA. A base 2006 BMW 325i has about a $2,500 spread between its full MSRP and dealer invoice. You are being given a discount of $880 on the car that you are interested in. I am not intimately familiar with what the market is like for this car in your area right now, but if there is a decent level of competition for your business, there is a good chance that you can get this car for less than the price that you were quoted. For more feedback on '06 BMW 325i pricing, make sure to stop by the following discussion: "BMW 3-Series: Prices Paid & Buying Experience".

    Another problem that I have with this deal is the length of this lease. Sixty months is way too long to lease any car for. A lot can happen during the course of five years, your family situation could change causing you to need a bigger vehicle, your commute could get longer causing you to exceed your mileage limit, etc... Furthermore, BMW's special lease programs are only available for leases up to 42 months in length. If you lease for any longer than that, you have to use BMW Financial Services' standard lease money factor. Let's calculate a 42 month lease payment on the exact car that you are interested in using BMW's actual October lease program and see what we come up with. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $36,680 and a selling price of $35,800 through BMW Financial Services right now for 42 months with 12,000 miles per year, its zero down, pre-tax monthly lease payment should only be around $512. As you can see, the lease payment that you were quoted for this car is too high. I definitely would shop around if I was in your situation.

    Car_man
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  • Hi flagatorfan. The salesperson who you spoke with was correct. They were talking about BMW Financial Services' multiple security deposit program. BMW FS will lower its lease money factors for consumers who pay additional security deposits. Specifically, it allows consumers to make up to 5 additional deposits, providing a .00005 money factor reduction for each one, for a total possible reduction of .00025. This is a much better way to lower your lease payment than making a down payment if you have the money.

    In most areas, you should be able to do better than only $500 off of MSRP on the car that you are interested in. Stop by the following discussion to find out how much other community members have paid for similar vehicles lately: "BMW 3-Series: Prices Paid & Buying Experience".

    For now, I will estimate this car's lease payment for you using the price that you were quoted and BMW's actual October lease program. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $34,495
    and a selling price of $33,995 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $480. With a $1,000 discount, the payment for an otherwise identical lease would drop to around $465 and with a $1,500 discount it would drop to around $450.

    Car_man
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  • Hello cece3. 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.

    It is very important for you and your husband to find out the exact selling price of the car that you are interested in. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without the selling price, not only is it difficult to tell how much of a discount you are being given but it is next to impossible to calculate what your car's lease payment should be. In fact, in October BMW is providing $1,500 dealer cash on the 2005 325 Convertible. This money will help you to negotiate a very attractive selling price for the car that you want. Make sure to take it into account during your negotiations. If you let me know what this car's selling price is, I would be happy to give you my opinion on the deal that you were quoted and estimate a lease payment on this car using BMW's October lease program for you.

    Car_man
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  • Does anyone have october lease #s for the 330i? Looking for residual and mf for 2006 330i, 12k/year. September base #s were 62%, 0.0025
  • I got an offer from a dealer where I live for a brand new 05 330ci

    MSRP 43,545
    Offered it for 38,900
    24 Month Lease
    59% residual
    .0031 Money Factor
    12,000 Miles/year

    It looks like he tried to pass off a good looking price while trying to get his money back on high lease rates. Is 59% good for a new car at 24 months?
  • bdr127bdr127 Posts: 950
    The selling price is about $1000 below cost but the money factor is bumped up. If you put the MF down to their buy rate, then it basically equates to an invoice deal. Looks pretty nice....

    To answer your question about 59%, that's a pretty middle of the road residual for 24 months, considering it is the very end of the model year. You might also want to look at a 36 month lease on that car since the 12k miles/year residual is 54%. Your payment will probably be $125+ less on a 36 mo.

    BTW, residual values are not negotiable. They are set by the bank and represent the lease-end value.
  • vsaxenavsaxena Posts: 201
    Just for reference, the 2006 325 Sedan has a 24month/12K mile residual of 75%, and the coupe has a residual of 66%. The 330 has a residual of 71%.

    In September, the BMWFS buy rates were:
    330Ci Coupe
    Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms
    24 mo/15k mi – 57% Residual Value – Money Factor .00260 Base Rate
    36 mo/15k mi – 52% Residual Value – Money Factor .00260 Base Rate

    So your residual was right but the MF was being jacked up. The October rates may be higher.

    From a value perpective, a 3yr lease looks better than a 2yr lease on this car.
  • I am looking at a lease on an '06 325i, premium package with xenon headlights.
    MSRP: $37,120 -- can buy the vehicle for $36,715 (only giving $800 off list price).
    After dealing with several dealers this is about the going price in Tennessee. My lease is as follows:

    36 months; 15,000 miles
    down payment of $1112.33
    Residual value of $22,643.20
    Money Factor: 0.0325; residual of 61% (I'm not sure what that means).

    The salesperson has quoted my payments as $597.80 = tax of $41.85 for a total monthly payment of $639.65. Is this in line with BMW's October lease program? Please contact me as soon as possible as I am probably buying this week. Thanks.
  • Hi petesamprs. You don't by any chance play tennis do you :) > If you were to lease a 2006 BMW 330i through BMW FS in October for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 63%, respectively.

    Car_man
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  • Hello passntime. 59% is not a very attractive 24 month, 12,000 miles per year residual value, but the dealer that you are working with does not have the authority to alter BMW Financial Services' published residual value for this car. It can however mark up its money factor. BMW FS' buy rate lease money factor for a 2 year lease of a 2005 330Ci is currently only .00260 with the payment of a security deposit and acquisition fee. It definitely looks as though the factor that you were quoted is being marked up. BMW's lease program on the 2006 330Ci is actually much more attractive right now at .00150 and 69%. If you can negotiate a reasonable selling price on an '06 model that would be the way to go if you want to lease.

    Car_man
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  • Hi dadkins. Not only are you not being given a very attractive selling price on this car, but the money factor that you were quoted is being marked-up to add additional back-end profit to your deal. I can understand paying $800 under MSRP for this car if that is what the market dictates in your area, but you should try to get the dealer that you get your car from to use BMW Financial Services' buy rate lease money factor of .00250 to calculate your lease payment. You are required to pay a security deposit equivalent to your vehicle's monthly payment rounded up to the nearest $50 increment and BMW FS' $625 acquisition fee to take advantage of this money factor. Using BMW's actual base lease program, an MSRP of $37,120, and a selling price of $36,715, I estimate that this car should have a zero down, pre-tax monthly payment of around $634. With a $1112.33 capitalized cost reduction, your car's monthly payment would drop to around $599.43.

    Car_man
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  • Any idea on the october numbers on the new 325xi wagon? 36 months - 15K a year?

    thanks
    ka
  • casiocasio Posts: 9
    Hi Car_Man

    What is the MF and residual for 2006 BMW 330i for 36 month/10k miles per year?

    My dealer is not budging off .0027. It seems like that MF (which is based on Sept numbers) has a high-markup...probably to compensate for the $1000 above invoice deal I got. Can I go to BMWFS directly to get a better rate?

    Thanks.
  • bdr127bdr127 Posts: 950
    Are you paying the security deposit up front? If you waive it, then BMWFS (not the dealer) needs to mark up the MF.
  • casiocasio Posts: 9
    I am paying the $700 security deposit upfront. Thanks
  • A couple of questions for car_man or anyone who might know. Does the money factor rate drop during this time of the year for a BMW 330i. What is the Oct. rate? Can you estimate what it will be in Nov.? What would be a good monthly payment for a 2006 330i with a 38,770 MSRP negotiated down to 37,270 with no down payment and tax rolled in (NY 8 1/2 %) ?

    Thanks
    Docbowl
  • Car_man I failed to give you the following 12,000mi. per yer for 36 mos.

    Thanks
    Docbowl
  • ladyaladya Posts: 3
    Car Man, thanks for the advice. I went back to the dealer today, with my deal:

    I asked for:

    MSRP: 36,795
    Selling Price: $34,795
    Lease Mos. 42
    Down Payment: 1305 (incl first month payment as security, destination charge of $695 and title $80 and doc fee $56)
    I asked for a payment of $475 per mos.

    They told me they could not come close to this deal, and would not really give me any numbers. They told me that the residual value I was using was incorrect. I used a residual value of 61%. They also told me that in Illinois there is a sales tax and a usage tax on leases. Please let me know if this is true.

    Let me know what you think of this deal I proposed. I plan on shopping around, and want to have a clear idea of the residual value and the tax.

    Thanks for the help.
  • I realize the following questions might sound naive, but what the heck, I need some advice.

    Up until recently I figured I'd be a Honda driver for life, no complaints there at all, but then my economic reality changed radically for the better with a major book sale. I've incorporated as a S-corp here in NC and find myself looking now for a new car for my company and have pretty well centered in on a BMW 325xi I'm use to 4WD with my Honda and definitely need it up here in these mountains.

    My questions. Tax wise, am I really better off leasing than buying. The reason I ask here, is that I'm getting conflicting views from my accountant versus financial advisor. Second, do you see the BMW 325 xi as a good three year lease value. I had a wonderful test experience with it today and the thought of going back to a camry or SR-V is well, well its rather depressing. Finally, any general advice points as I go in to lease would be appreciated especially how to calculate if I am getting a fair deal.

    Thank you,

    Bill near Asheville NC
  • Hi Car-Man"

    You stated thru BMW October lease program that the pe-tax pymt based on my MSRP would be $480/mo - WHAT were you basing the pymt on with regards to the Money factor rate, and residual value?

    Is BMW running an October subsidized lease special?

    I have since found a better deal with a different dealer(Global Imports, Atlanta, GA) - here is what he is offering me and tell me if this is good;

    MSRP: 36,325 (which is for '06 BMW 325i, Metallic paint, sirius satellite, Premium Pkg, Gray Leather)

    He is quoting me a lease payment based on 36 mos/15yr miles with taxes included of: $ 597.64/Mo with $1,640 due at signing- I live in FL- 7% sales tax-The dealer states his rate is 4% Is this true?
  • casiocasio Posts: 9
    Does anyone know the Oct base money factor on a 2006 330i lease for 36 months for 10,000 and 12,000 miles/yr? Also what are the residual percentages for each?

    Thanks in advance (this board is very helpful, by the way!).
This discussion has been closed.