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BMW 3-Series Lease Questions

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  • isamu66isamu66 Posts: 12
    I love this forum...it has been extremely helpful in my negotiations...

    I am looking at a 325i, but only after I sell my 2003 Tahoe through private party. I did consider trading it in through the dealership, but I know they will try to nickel and dime me. I set up a little Excel worksheet to help me in the lease calculations.

    Originally the salesperson offered a money factor of 0.00265...but after reading this forum, I knew to ask for 0.0025

    The salesman offered a money factor of 0.00265 if I choose not to pay the security deposit of approx. $500. A lower money factor of 0.0025 is offered if I pay the security deposit.

    After playing with the numbers, my spreadsheet is telling me that the lower higher interest and no security deposit means the lower monthly payment.

    The salesperson is also trying to pass off an $825 bank fee, but after reading this forum I know to ask for $625. He is also passing off document fees and tire tax, which I will also ask to be removed.

    I am just basically looking right now for the best configuration, but I wanted to post how thankful I am to have found this forum!

    Charles
  • bdr127bdr127 Posts: 950
    The salesman offered a money factor of 0.00265 if I choose not to pay the security deposit of approx. $500. A lower money factor of 0.0025 is offered if I pay the security deposit.

    Just a note here... You do still pay the security deposit (which, btw, you get back at the end of the lease), but it is rolled into your cap cost at a charge of a .00015 MF increase. My point is that it doesn't just "disappear"....

    He is also passing off document fees and tire tax, which I will also ask to be removed.

    What state are you in? "Tire tax" is actually a legitimate state tax in some states. (FWIW, I'd think if a dealer claims it is a "tax" then it's a government thing and isn't just an additional fee.) I know, for instance, that PA, NJ, and OH have tire taxes.... Everyone has to pay them, unfortunately. It seems like a bogus way for the state to collect more revenue.... Leave it up to our politicians! :P
  • kyfdxkyfdx Posts: 27,901
    The payment may be lower, if you waive the deposit and take the higher money factor, but your total cash outlay over the life of the lease will be higher...

    What did you miss in your calculations? You get the $500 back at the end of the lease...

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hello Charles,

    I bought it from Santa Monica BMW.
  • Hello Carman,
    Once again, I cannot thank you and the rest of the forum for all of your help. I really appreciate it. The car buying experience is extremely tricky (and expensive) without people like you to clarify things for us.
    You are indeed right, my pretax monthly is $422, if I did not capitalize the acquisition fee and add tax. With tax and acquisition fee rolled into my monthly, it works out to $471 (DAMN THATS ALOT OF MONEY!) im just a student tryin to get by! haha.
    By the way, is the residual values negotiable. I got 15k miles / year on the 06 325i with a residual of 61% (could we have negotiated 62%??)... anyway I really appreciate your help.
    Thanks,

    Ajay

    PS for the other poster who asked where i got the deal, I got it in Santa Monica BMW in California.
  • isamu66isamu66 Posts: 12
    You are correct...thanks for the clarification!

    I think it sounds better to pay the security deposit upfront and take the lower MF.

    The tire tax was something I thought could be just waived off in a tight deal, but I guess its something I will have to pay as well.

    Just so I am clear, I can choosed whether or not to pay off or roll into the cap cost the Acquisition Fee, DMV Fee and/or Security Deposit, correct? Thanks,

    Charles
  • r3lr3l Posts: 1
    Car_Man or other host:

    I haven't made my final deal, but can you tell me what you think about my options just based on MSRP? This is the deal I can get if I want to pay MSRP (which I won't, of course):

    Lease: MSRP $34415, 10K down, 3 yr @ 30K mi/yr, $350/mo, $14200 residual
    I have no idea yeat about money factors, etc. or what any of that really means.

    Purch: MSRP $34415, 10K down, 5yrs, about $490/mo (@ 5.25%).

    Thank you,
    R3L

    I will put right at 30K mi/yr on the car. I can't see how the lease is a bad deal, but I know very little about leases. What do you think?
  • isamu66isamu66 Posts: 12
    Well, I am still learning as well, but I am pretty sure that if you plan on driving 30k miles per year, then you are not a good candidate for leasing a vehicle. The problem is that most leases only allow up to 15,000 miles per year on the lease and usually charge you a huge fee ($20 cents per mile) over your contracted rate.
  • Anyone have them yet? If not, when do they come out? Thanks!
  • Car Man,

    I have a question. I recently checked my credit score and noticed a negative account that is not mine. I am currently fighting with the 3 credit bureaus and the collection agency to get it off my record. Because of this, my estimated FICO score is now in the low to mid 600's.

    What does this do to the lease? How much of an increase will this do to the money factor? Thanks,

    Charles
  • bdr127bdr127 Posts: 950
    If you challenge the record and the other party does not fight it, I believe then it is automatically removed after 30 days.... (someone correct me if I'm wrong) If that's the case, then see if you can wait until then to buy a car.

    BMW's lease program is not tiered... What that means is that it is "pass/fail". You are either approved or not, and there is no increased rate for different levels of credit. You could see if you could get approved in your current situation.... Regardless, I would work to resolve your issue, whether you buy a car now or later.
  • I've ordered my 325i with the following config
    Titanium Silver exterior
    Black Leatherette
    Sport package
    Navigation system

    The MSRP is 36945 and my dealer is giving it to me for 35K
    The MF he is using for my lease is 0.0025 with 625 acquisition fee.

    From what I've read so far on this forum, this is a sweet deal. its about 1K more than the invoice and everything else seems to be set by BMW.

    However, starting November 1st, I noticed that the lease on the "basic" 325i has gone down from $407 to $398 (see the BMW website). Does anyone know the new terms (like MF). I believe that you can always get lower rates if the MF reduced. Any idea if dealers do this easily?
  • kyfdxkyfdx Posts: 27,901
    I don't have the new rates, but if your dealer has already agreed to use the base rates, then he likely won't have any problem using the "new" rates, if it is a better deal for you..

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hey guys, another quick question here...

    Do you guys know the following under these two different scenarios? Thanks,

    1) Money factor
    2) Residual

    325i
    24 month lease/15,000 miles

    325i
    36 month lease/15,000 miles
  • I am very new to leasing, so I am a little confused. I am currently shopping online and at dealerships in South Carolina. I can honestly say that I really don't know what to ask for...Can someone tell me what a good deal would look like?

    This is what I want:

    Jet Black
    4-door sedan
    standard features
    36mo/12,000 miles
    $0 down

    What type of residual, money factor, etc. should I look for? Thanks!!!
  • nvnicknvnick Posts: 50
    BMWFS Lease Programs – Effective 11/3//2005

    2006 MODELS

    Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms

    325Cic Conv

    24 mo/15k mi – 70% Residual Value – Money Factor .00260 Base Rate
    36 mo/15k mi – 60% Residual Value – Money Factor .00260 Base Rate
    48 mo/15k mi – 48% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 39% Residual Value – Money Factor .00285 Base Rate

    325Ci Coupe

    24 mo/15k mi – 64% Residual Value – Money Factor .00150 Base Rate
    36 mo/15k mi – 57% Residual Value – Money Factor .00150 Base Rate
    48 mo/15k mi – 43% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 35% Residual Value – Money Factor .00285 Base Rate

    325i Sedan

    24 mo/15k mi – 71% Residual Value – Money Factor .00250 Base Rate
    36 mo/15k mi – 62% Residual Value – Money Factor .00250 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00285 Base Rate

    325xi Sedan

    24 mo/15k mi – 70% Residual Value – Money Factor .00250 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00250 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00285 Base Rate

    325xiT Wagon

    24 mo/15k mi – 70% Residual Value – Money Factor .00200 Base Rate
    36 mo/15k mi – 60% Residual Value – Money Factor .00200 Base Rate
    48 mo/15k mi – 43% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 36% Residual Value – Money Factor .00285 Base Rate

    330Cic Convertible

    24 mo/15k mi – 69% Residual Value – Money Factor .00260 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00260 Base Rate
    48 mo/15k mi – 47% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 39% Residual Value – Money Factor .00285 Base Rate

    M3 Convertible

    24 mo/15k mi – 66% Residual Value – Money Factor .00285 Base Rate
    36 mo/15k mi – 58% Residual Value – Money Factor .00285 Base Rate
    48 mo/15k mi – 48% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 41% Residual Value – Money Factor .00285 Base Rate

    330Ci Coupe

    24 mo/15k mi – 67% Residual Value – Money Factor .00150 Base Rate
    36 mo/15k mi – 57% Residual Value – Money Factor .00150 Base Rate
    48 mo/15k mi – 42% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 34% Residual Value – Money Factor .00285 Base Rate

    M3 Coupe

    24 mo/15k mi – 70% Residual Value – Money Factor .00285 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00285 Base Rate
    48 mo/15k mi – 51% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 42% Residual Value – Money Factor .00285 Base Rate

    330i Sedan

    24 mo/15k mi – 69% Residual Value – Money Factor .00195 Base Rate
    36 mo/15k mi – 62% Residual Value – Money Factor .00195 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 36% Residual Value – Money Factor .00285 Base Rate

    330xi Sedan

    24 mo/15k mi – 69% Residual Value – Money Factor .00225 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00225 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00285 Base Rate
  • What do you think of this deal?

    2006 330xi
    SG
    Terra Int
    Alum Trim
    Automatic Tran
    Prem Pack
    Cold Weather
    Comfort Access
    MSRP $45,395
    Initial Cap Cost $43,295
    3 years/45K
    LRF .0024 (buy rate was .0022, dealer wanted .00265, split diff)
    $0 down monthly payment $647.36
  • vsaxenavsaxena Posts: 201
    Is there a board where we can discuss 3rd party lease companies? I have heard stories of people getting better deals with 3rd party lease companies. They typically have lower MF but lower residuals. Though the monthly payment might come out to be the same, you come out ahead since you have more equity in the car. That helps if you want to get out of the lease early, buy out at the end or sell the car at the end. However, there are not too many sources available. Even big banks like Wells Fargo do not have direct consumer leasing services. It is up to the dealer to contact them if they want to. Are folks aware of ways to get access to 3rd party lease numbers?
  • I'm glad that you have found this discussion so informative, Charles.

    Car_man
    Host
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  • You're very welcome Ajay. Vehicles' residual values are not negotiable. Individual dealers do not have the authority to alter banks' published residuals.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Greetings R3L. 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 this car's selling price is.

    Since you mentioned that you do not know what the terms lease money factor, residual value, etc... mean you definitely should do some research prior to leasing a new vehicle. the less you understand the leasing process, the more likely it is that you will be taken advantage of. 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.

    Car_man
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    Smart Shopper / Prices Paid Forums
  • Hi silver17. I have had an opportunity to take a look at BMW's November lease program and would be happy to answer any specific questions that you have about it.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • I am sorry to hear about the errors on your credit report, Charles. They can be very frustrating. At least you were smart enough to check your report and do something about the errors. While some banks have different lease money factors for consumers depending upon what their credit score is, BMW Financial Services essentially uses a pass / fail system. Either you qualify for its lease program or you don't. I suspect that you will qualify to lease a vehicle through BMW FS, even with the problems with your credit report, but I cannot guarantee that will be the case.

    Car_man
    Host
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  • Hi 325i06. It sounds like you are getting a great deal on this car. I noticed that BMW lowered its advertised lease payment on the 2006 325i as well. They must have cut the assumed dealer gross in the advertised lease because this car's lease money factors are the same in November as they were in October.

    Car_man
    Host
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  • Here's the information that you are looking for, isamu66. If you were to lease a 2006 BMW 325i 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 71%, respectively. the numbers for an otherwise identical 36 month lease should be .00250 and 62%.

    Car_man
    Host
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  • Welcome kimberly0614. 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.

    Take a look at my previous post to get an idea of what this car's lease program is like right now. In addition to getting the dealer that you are working with to use this lease program to calculate your car's lease payment, you need to make sure that you negotiate an attractive selling price. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You should be able to get an idea of what a good price is for the car that you are interested in right now by visiting the following discussion: "BMW 3-Series: Prices Paid & Buying Experience".

    Car_man
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  • Hi ckm1515. Let's take a look at the deal that you were quoted. You are being given a $2,100 discount on the 2006 BMW 330xi that you are interested in. This car has a difference of just over $3,600 between its full MSRP and invoice prices. The selling price that you were quoted looks reasonable to me. I personally would be annoyed with the lease money factor mark-up though. I prefer that dealers make money on the front end of my deal to keep everything as straightforward as possible. If a $1,500 profit on this car is what they want, why do they have to try to trick consumers to make more money on the back-end. Well, OK I probably would do the exact same thing if I was in their shoes, but that doesn't mean that you have to let them. Overall I'd say that this is a fair deal, but if there is a decent amount of competition for your business in your area you may be able to comparison shop and do a little better.

    Car_man
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  • Hi vsaxena. While a lot of the posts that are made in the Lease Question discussions are about deals through manufacturers' captive finance companies, community members are absolutely free to discuss leases through independent banks. Just make sure that you are talking about the appropriate model in the discussion that you are in, i.e. post messages about leasing a BMW 3-Series through an independent bank in this area. Unfortunately, like captive finance companies most major banks that lease vehicles do no deal directly with the general public. If you want to lease a new vehicle through them, you usually have to go through a dealer.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hi,
    I have recently started looking into leasing a 325i sedan. I am aware that the sale price is negotiable, but I would like to know if the money factor is negotiable or is it something that is set by BMW? Also, are there any other elements of the lease that are negotiable?

    Thanks,
    Vish
  • Hi Car Man,

    I'd like your opinion on this offer:
    325xi 2006, MSRP $39,020, selling price $37,695, 36 month lease 18K miles per year $617. Don't have the MF factors or residual numbers. Seems high compared to other numbers thrown around in various posts, but I think it may be due to the 18K miles. What do you think? What should the MF and residual numbers be? Thanks.
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