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BMW 3-Series Lease Questions

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  • October lease rates improved over September for the 330i (not sure about 325).

    Base money factor is 0.00225
    Residuals are 61%/63%/64% for 15k/12k/10k miles per year.

    September base MF was 0.0025
    Residuals were 60%/62%/63%

    No idea what November will be.
  • casiocasio Posts: 9
    Thanks Petesamprs--that's good news.

    My car does not arrive until mid-Dec--what can I do to lock in the Oct rate yet keep the flexibility to use Nov or Dec rates should they be even more favorable?

    Thanks in advance.
  • kyfdxkyfdx Posts: 30,432
    If you have already ordered your car, you should be able to lock in the October rates now..for up to 60 days from the end of the current program (i.e. thru December 31st) Just call your CA, and tell him you want to...

    Then, if you take delivery in December, you should be able to use whichever program is better... October or December.. (though, not November, unless you take delivery in November).

    All of this is assuming your dealer will use the base money factor.... that might be something to ask your CA... and something you probably should have asked before ordering..

    regards,
    kyfdx
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  • My dealer has let me adjust my program each month. For example, if Oct > Sept, I can get Oct rates, and if Nov > Oct, i get Nov. Then if I take delivery in December, and if Nov > Dec, I keep Nov.

    So i'll basically get to choose the best month in between the time I'ver ordered and the time I took delivery.
  • casiocasio Posts: 9
    thanks to both of you. My dealer is also letting me take the best rate each month and lock that in--he is offering .00245 on a 36 month/10k/zero down deal for $611/mo (with 8.25% tax) on the Oct numbers. That's down from closer to $650 on Sept numbers for same deal--one of the benefits of having to wait for the car!
  • casiocasio Posts: 9
    ps the numbers above include the tax. Happy Friday!
  • sj233sj233 Posts: 7
    Any has the october numbers on the new 325xi 24months/ 25k a year ?
  • Here you go someguy1. If you were to lease a 2006 BMW 325xi through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 61%, respectively.

    Car_man
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  • Hi casio. If you were to lease a 2006 BMW 330i through BMW Financial Services right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 64%, respectively. The .00270 money factor that you are being quoted is way too high, even if you are having your car's security deposit waived. Unfortunately, captive finance companies, like BMW FS, do not deal directly with the general public. Your only options are to insist that this dealer lease you this car using the buy rate money factor or to shop around and find one that will.

    Car_man
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  • Hi Docbowl. I am not aware of any pattern that would all us to guess what BMW's lease program will be like on the 2006 330i next month. I suspect that this car's lease money factors will continue to drop as the model year progresses, but its residual values will drop as well. BMW Financial Services' current buy rate lease money factor for 2006 330i leases up to 42 months is .00225. According to my calculations, if you were to lease a 2006 BMW 330i with an MSRP of $38,770 and a selling price of $37,270 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $496.

    Car_man
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  • You're very welcome, ladya. Most states charge sales tax on leased vehicles. If your state has a usage tax you may have to pay that as well. As a result, unless you pay the tax at lease signing your monthly payment will be higher than any pre-tax payments that are mentioned in this discussion. Using the prices that you mentioned in your post, an MSRP of $36,795 and a selling price of $34,795, I estimate that this car should have a 42 month, 12,000 miles per year, zero down, pre-tax monthly payment of around $485. It is difficult for me to say how realistic the selling price that you are shooting for is though. You may want to stop by the following discussion for additional feedback on the selling price that you are aiming for: "BMW 3-Series: Prices Paid & Buying Experience".

    Car_man
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  • Flagatorfan, I used a BMW Financial Services buy rate lease money factor of .00250 and a residual value of 61% to calculate the 36 month, 15,000 miles per year lease payment that I quoted you earlier. While it is not great, technically this lease money factor is subsidized because it is lower than BMW Financial Services' standard lease money factor of .00280. The .00250 money factor is equivalent to an interest rate of around 6%. I don't know where the dealer that you are speaking with got the 4% that they mentioned from.

    Car_man
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  • Hello sj233. If you were to lease a 2006 BMW 325xi 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 .00250 and 72%, respectively. BMW does not publish residual values for leases with more than 15,000 miles per year. If you need to drive more than this you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing then it is to wait until lease-end and have to pay an excess mileage penalty.

    Car_man
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  • sj233sj233 Posts: 7
    Thanks Car-man. Do you know how the rent charge is calculated on a lease? is it just the finance charge or there is more to it? Also how much do they charge to purchase additional miles on a per-mile basis? i know its .20 at the end for excess mileage. Thanks again.
  • kyfdxkyfdx Posts: 30,432
    The rent charge is the finance portion of the monthly payment..

    (Residual + Cap Cost) X money factor = Monthly rent charge.

    Monthly rent charge X term of lease = Total rent charge

    regards,
    kyfdx
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  • sj233sj233 Posts: 7
    Thanks kyfdx
  • atfryaratfryar Posts: 30
    Hi car_man, I've seen a few posts addressing 15K mile leases on a 2006 325xi... I'm wondering what the residual and MF is for 12K miles/year (both 24 and 36 months). Thanks for you help!
  • ladyaladya Posts: 3
    Car Man, you have been very helpful. I was able to get the negotiated price with the $2,000 off, but with the monthly payments, I felt as though the dealer was trying to pad somewhere. So, I shopped my price.

    I know am looking for a deal with the folloiwing:

    2006 325i

    MSRP $35,745
    Selling Price: $34,545
    I am looking at what would the price be for a 42 mos lease.
    The sales tax in IL is 8% and I would be looking to do an Owners Choice Program. Can you please let me know what the post tax numbers should be?

    Thanks

    Lady A
  • zman9zman9 Posts: 10
    Hi Car_Man

    Can you please help me with a deal that was offered by my dealer here in PA.

    Model 330 xi 2006.

    Base Price + Options + Dest = 44020 MSRP
    Discount 1220
    Trade-in 5000
    = 37800
    + 60 Doc Fee = 37860
    6% Sales tax on that = 2268
    + 33.5 Tag Transfer
    + 35.45 online reg service
    Grand Total = 40, 196.95 on delivery

    Lease details for 36 mos and 12K miles/annum

    550 Deposit
    Monthly payment 518.15
    Residual 27, 732.60 (was told it was 62%)

    Does that look ok for this month?

    Also could you please tell me what would be a good deal for 36 mos 15K miles?

    Thanks in advance.
  • zman9zman9 Posts: 10
    Plzz help!
  • igooseigoose Posts: 1
    I live in northern NJ and plan to lease a 2006 bmw 330xi. Can anyone let me know what a reasonable deal would be? I got a quote for 2500 down and 570/mo (tax included) for 36 months, 12,000/year. That would be with automatic transmission, premium, sport, and cold weather packages (no i-drive/nav). Thanks.
  • sj233sj233 Posts: 7
    2006 325xi
    Sparkling Graphite metallic. balck leather interor
    Automatic, Premium Package, Heated seats
    selling price 1500 Of MSRP
    24 months, 25k a year $ 668 a month pre tax..
    24 months, 15k a year $ 557 a month pre tax
    is that a good deal? or i could do better? Thanks for your advice.
  • kyfdxkyfdx Posts: 30,432
    Car_man will need the full MSRP of the vehicle including destination to evaluate your lease deal... A very important component of any lease calculation..

    regards,
    kyfdx
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  • sj233sj233 Posts: 7
    2006 325xi
    Sparkling Graphite metallic. balck leather interor
    Automatic, Premium Package, Heated seats
    Of MSRP 38645 including destination
    selling price $ 37145
    .0025 money factor
    24 months, 25k a year $ 668 a month pre tax..
    24 months, 15k a year $ 557 a month pre tax
    is that a good deal? or i could do better? Thanks for your advice.
  • luv2runluv2run Posts: 11
    Are these numbers reasonable?
    325i, msrp = $37745, cap cost = $36000
    $2500 cash at signing, money factor = .0029, $825 acquisition fee
    36 month, 12k miles, 63% residual.
    payment = $509

    I thought the money factor was way too high, what is the current base money factor for the 325i?

    Thanks.
  • Hi Car Man,
    I am buying a 2006 325i with absolutely no options.
    manual transmission, no special paint. etc.
    MSRP: $31,595 (is this padded??)
    Negotiated Price: $30,000
    Lease 36 months/15k miles per year
    MF=.00250
    $0 down

    Here is how the deal is structured.

    Drive off: $1,242.93
    Monthly payment: $474.18
    That’s with the MF at .00250 and the Acquisition at $625 and the tax rate at 7.75%.
    Security deposit is $500 as monthly payment is $474.18. ($440.07 + tax $34.11).

    The car is a new stock base model jet black 325i with Manual Transmission. Mats and wheel locks are not standard but they are part of this deal.

    I am being charged $277 in DMV fees+$500 security deposit + First Months payment.

    First Question: AM I getting a good deal???

    Second Question: WHy is there an acquisition fee? I called the dealer out on it, but they seem to keep telling me that is the base fee that BMSFS charges them!! Is this true, is there really an acquisition fee?? Please let me know ASAP
  • Hi Luv2run, I too am in the same market. They have marked up your acquisiton by $200. it should be $625, I think! Please help me figure this out (please read my question)..

    You should get your MF down to .00250 (put down a security deposit)

    Do we absolutely need to put down a security deposit for the .00250 MF??
    I dont know either, but I think youll be ahead financially. Just my opinion.
    Hope I helped.
  • luv2runluv2run Posts: 11
    I read a previous post from the host and he did mention that it is required to pay the acquisition fee and the security deposit to secure the "buy rate" lease money factor of .00250. Thanks for the info. on the acquisition fee, I thought I had read before that the fee should be $625. I mentioned that to the dealer and he kept insisting it was non-negotiable. I didn't want to fight him on it until I confirmed it on this discussion board.

    Also, from what I read $1000 over invoice is a very good deal (I hoped I calculated that correctly from your info. provided) Thanks for your help!!!!!
  • kyfdxkyfdx Posts: 30,432
    1) A very good deal.. $1600 off of a car with zero options is great.. Plus they are using the base money factor and acquisition fee..

    2) The acquisition fee is charged by the bank (BMWFS).. Virtually every lending institution charges this on their leases... You can consider extra profit for the bank.. but, a bank takes a lot more risk on a lease than they do a normal car loan... Not only do they have to worry about you making your payments, etc.. but, they also have a residual value risk...

    So, while the lease program on the 325i isn't anything special, I'd say you are getting just about the best deal possible....

    BTW, the acquisition fee isn't included in your drive-off payment... It is rolled into your cap cost and your monthly payment (which is the way I like it).

    Good luck today!
    kyfdx
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  • kyfdxkyfdx Posts: 30,432
    As an example...

    '06 330i
    3yr/45K lease
    $38270 MSRP
    $37000 Selling price (just a wild guess)
    $37625 Cap cost (selling price + acq.fee)
    Residual 62%
    Money factor .00195
    Payment = $506/mo.+tax
    Due at signing: 1st payment, security deposit, title/license fees (approx. $1400 total)

    I left out the $489 dealer fee, because that is just extra profit for the dealer, and at this selling price, they shouldn't need any more.. If the insist on charging it, then lower the suggested selling price accordingly..

    regards,
    kyfdx
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  • Help:
    I live in NJ and am interested in a 2006 BMW 325i 6 speed transmission. Options: folding rear seats, Xenon lights only.
    I've recieved a 36 month lease price of $532.06
    Out of Pocket: 2,090.36
    MSRP: 32,870.00
    Residual: 17,800.70
    Mileage: 20,000
    Can someone tell me if this is a good deal or can I do better? HELP.
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