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BMW 3-Series Lease Questions

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  • kyfdxkyfdx Posts: 29,398
    luv2run.. You don't say the term or mileage on your lease...

    At 3yr/45K, I come up with $525/mo., including tax... About $505/mo. for 3yr/36K..

    regards,
    kyfdx
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  • luv2run.. You don't say the term or mileage on your lease...

    Oops, sorry...it is 3yr/36k.

    The tax is actually 8.75%, which accounts for the $12/mo difference, right? Thanks, for your help!!! I really saved a lot with all the advice I received on this forum!!!!
  • jra1jra1 Posts: 1
    Was offered the following car for $520/month; 27 month lease; .0025 money factor; 71% residual; $2,500 down; $550 security deposit; Sales tax at 6%; title fees $187; $40 doc fee; $500 dealer fee

    2005 BMW 330Ci $44,600
    Optional Equipment $5,450
    Metallic Paint $475
    Auto $1,275
    18' Wheels $1,000
    Xenon $800
    Sport Package $800
    BMW Assist $750
    Park Distance Control $350
    Destination $695

    What I need help with is convincing myself that the marketing support is being passed along and this is a pretty good deal.

    Any thoughts?
  • sreevsreev Posts: 11
    I am leasing for the first time in my life so please excuse my ignorance. I am wondering if someone can comment whether this is a decent deal:
    2006 325xi, metallic paint, premium package, xenon, manual
    MSRP: $37670 incl. destination
    Agreed price: $36000
    $7000 trade-in or cash option to cover down payment, first month payment, taxes, DMV fees. No security deposit
    Monthly payment: $411.25
    36 months/15k per year

    I am happy with the agreed price unless there are better deals out there. But how can I find out if the lease calculation is good or not?
  • another deja vue.

    I'm looking at an '06 330i with MSRP $45,270 and invoice of $41,485. I'm offering $43k flat. If they take the bait, what would my lease be for 3yrs/36000miles with no money down? I live in VA (DC area), and I think the tax is 4-4.5%.
  • jmd2jmd2 Posts: 1
    I'm new to the forum but I don't think this question has been asked before. If I do a pull ahead lease and lease a new 330i, what is the impact on the deal from the dealer's standpoint? Also, the residual on my 2001 330i is low at $16700 (after a 54 month lease). Am I right in thinking that if I turn in the car rather than buying it and flipping it myself for several thousand dollars that the dealer is making money on me there and should be willing to come closer to invoice and still do well?

    Thanks.
  • kyfdxkyfdx Posts: 29,398
    You really should look at leasing this car for 36 months.. I'm not familiar with the 27 month lease program, but the 36 month lease has a base money factor of just .00075...

    You don't give your mileage allowance, but I would guess you should be able to lease this car for the same payment for 36 months, without making the $2500 downpayment..

    regards,
    kyfdx
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  • kyfdxkyfdx Posts: 29,398
    First.. putting down $7000 on a lease is not a good idea.. If the car is totaled or stolen early in the lease, that downpayment disappears and you've had a very expensive short-term lease..

    That said, your deal is hard to analyze without knowing the breakdown of the $7000.. How much is for tax, fees, etc... and how much is the downpayment...

    To arrive at your lease payment, I had to assume that $3500 of the $7000 was down payment... This leaves 1st payment ($411), acquistion fee ($625), DMV fees ($300?).. and tax.. If the tax on your lease is around $2200 total, then it looks like your lease terms are okay..

    I'd want it to look like this:

    $37670 MSRP
    $36000 Selling price
    $36625 Cap cost (selling price + acq.fee)
    3yr/45K lease
    Residual 61%
    Money factor .0025
    Payment = $528/mo.+ tax
    Due at signing (1st payment, security deposit, DMV fees).. about $1500 total.. I'd put the tax into the monthly payment, as well..

    regards,
    kyfdx
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  • kyfdxkyfdx Posts: 29,398
    '06 330i
    3yr/36K lease

    $45270 MSRP
    $43000 Selling price
    $43625 Cap cost (selling price + acq.fee)
    64% Residual
    .00195 Money factor

    Payment = $549/mo.+ tax
    Due at signing = 1st payment, security deposit, title/license fees (approx. $1500)

    regards,
    kyfdx
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  • sreevsreev Posts: 11
    kyfdx,
    Thank you very much for your reply and your insight. I don't remember the exact breakdown but I just requested it from my dealer. I remember the tax was about $1400. $7000 was trade-in for my old car but when I asked if I could sell the car on my own, then the dealer added "Trade OR $7000" to the order form. From your calcs, it would be cheaper not to put any money down other than $1500 for fees, etc. I will post the actual numbers after I hear from the dealer. Thanks again for your insight.
  • sreevsreev Posts: 11
    kyfdx,
    Here are the numbers
    $37670 MSRP
    $36000 Selling price
    61% residual
    3yr/45k lease

    Breakdown of $7000:
    $625 acq. free
    $1191.35 sales tax
    $346.50 reg/plates
    $198 documentary fee
    $411.25 first payment
    $4227.90 down payment
    No security deposit

    It looks like the money factor is lot higher than 0.0025. I would appreciate your opinion. I gave a $500 non-refundable custom order deposit. Do you think I will be able to negotiate now that I have more knowledge? On the phone, the dealer said he will be flexible if I change my mind about buy vs lease, different down payment, etc.
  • kyfdxkyfdx Posts: 29,398
    I think you have it exactly right.. They are most likely bumping up the money factor by the full amount allowed (.0004).. In addition, by not making a security deposit, there is a waiver bump of .00015, bringing the total money factor to .00305, instead of .0025.... $198 document fee is just another way to add on to the price of the car as well...

    Given these numbers.. this is what I would want.

    $37670 MSRP
    $36000 Selling price
    $37813 Cap cost (selling price + acq.fee +tax)
    61% residual
    .0025 money factor
    Payment = $564/mo. including tax
    Due at signing: 1st payment ($564), security deposit ($600), reg/plates ($347)... Total upfront = $1511.. (no document fee...lol)

    Have them cut you a check for $5489 ($7000 trade minus $1511 upfront), and you drive out with just 35 payments of $564/mo. left..

    Whether they will change the deal to favor you more, now that you've already ordered, I don't know... But, if you seem willing to walk away from your $500, they may come down some.. I'm certain they will allow you to not make the downpayment and take that out in cash instead.

    regards,
    kyfdx
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  • sreevsreev Posts: 11
    Thank you, kyfdx! Your numbers are right on. Now I understand how these calculations are done. The dealer is using .00305 without the security deposit. I called the salesman over the phone and said it should have been .0025. He said he had the authority to change it to .0029 ($9 less per month) by collecting security deposit and anything else needed manager's approval. I asked for 0.0025 which would save me $1084 over the lease period or I would consider losing my $500 deposit. He is going to call me tomorrow after discussing with his boss.

    Thanks again for all your help. I learned a great deal about leasing today.
  • amstamst Posts: 8
    I currently am leasing a 2003 325xi with premium package, heated seats, wood dash and auto transmission. I didn't pay any cap red., but I did put 9 additional security deposits down at the time of lease. My current payment including 9% sales tax is 466/month. This is based on a 39 month program. I'm looking to get the same type of equipment in a 2006. Dealers are quoting me over $100 more per month. They say that the price of the car has increased by 2K, the discounts off the car have dimished (meaning their margins) and that BMW will now only allow 5 extra security deposits, and that they only reduce the money factor at a rate of about half of what they did back in 2003. They tell me that the 36 month offer is best available now. I'd like to know what is a reasonable price to pay for my 2006 325xi lease with no cap red. 36/39/42 month is fine for me.
  • kyfdxkyfdx Posts: 29,398
    The dealers are correct in just about everything they told you.. except maybe the thing about their margins...

    The multiple security deposit program has indeed been cut back to a maximum of five, with the money-factor reduction of each one cut in half... Under your old program, you saved .0009 off of the money factor, while the new program has a maximum savings of .00025... That factor alone would cause a $30-$35 increase in the payment..

    Also, the new 325xi has only been out for a couple of months... there are no incentives and the lease program is nothing special..

    But, to give you an estimate on a monthly payment, you need to provide the MSRP of the car you are interested in, and what mileage allowance you require.

    regards,
    kyfdx
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  • amstamst Posts: 8
    I'll be looking for 10K/yr in miles on a car that has an msrp of around 38,600.
  • kyfdxkyfdx Posts: 29,398
    '06 325xi
    3yr/30K lease
    $38,600 MSRP
    $37,000 Selling price (just a guess)
    $37,625 Cap cost (selling price + acq.fee)
    64% residual
    .0025 money factor
    payment = $515/mo. + tax..
    Due at signing = 1st payment, security deposit, reg./license fees..

    If you made 5 additional security deposits, it would lower the money factor to .00225 and lower the payment to $500/mo.+tax (not hardly worth the trouble).

    regards,
    kyfdx
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  • amstamst Posts: 8
    Before I turn in my 2003 325xi, can you tell me....am I able to lease this same vehicle again??? If so, what type of terms might apply? Is this something I would negotiate with BMW financial or a dealer?

    Thanks.

    Amst
  • Hi, I'm new to leasing a BMW. I presently am financing a 2004 BMW convertible and want to trade it in for a new one. I talked to a dealer and he indicated that for what I wanted I would have to pay list price - no negotiation. The cost of the car is 46,834.00 without taxes, etc. From my car, once I pay it off, I would have about 9,000 left to put down, etc. I'm looking for a 3 year lease with about 17,000 miles per year. Can you provide me with some advice on what would be a good lease deal? I would like to go in with some numbers prior to speaking with the dealer. I live in the Philadelphia, PA area.

    Thanks,
  • You've always been very helpful.

    I emailed a dealer (PassporBMW, MD) about a similar car with an MSRP of $44,345. They emailed me back with the selling price of $41,940 ($1300 above invoice), which is reasonable. However, it was $605.92/month tax included (3yrs/36,000miles lease), with only $719.12 due at pick-up.
    I have no clue how they came up with that figure. :confuse:

    The base money factor for '06 330i is 0.00195, right? And the residual for 12k/yr is 64%? If that is so, my calculation is ~$537/month, and due at delivery: lic/reg fees+security deposit+first month payment, all of which I'm sure would be more than $719.12.

    I requested for the detailed breakdown of their number. So far no answer. :(
  • kyfdxkyfdx Posts: 29,398
    You may be able to lease the same car again... but, used cars don't usually make great lease deals.. If you are interested in that, I'd try to see what BMWFS says first, before going to the dealer.. Or, perhaps you could turn it in, the dealer could then CPO the car, and re-lease it to you... with the CPO warranty.. But, I'm betting the price will not be worth it..

    regards,
    kyfdx
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  • kyfdxkyfdx Posts: 29,398
    Yeah... Using those numbers..adding the acq.fee to the cap cost, and bumping the MF up to .0021, to waive the security deposit.. I only come up with $540/mo.. plus tax..

    So... unless the sales tax where you live is around $65/mo., they are probably bumping the money factor the maximum... With the maximum money factor of .0025, the payment would be around $569/mo.+tax..

    regards,
    kyfdx
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  • jvostjvost Posts: 31
    Hi all:

    I've been reading through the thread of discussions trying to figure out what the current factors and residuals are, but am a little confused. One post mentioned a factor as low as .00075. Answers to the following questions would be really helpful:

    1. Assuming top tier credit, what is the lowest money factor available for a 36 month term?

    2. What are the current residual percentages for a 36 month term for 10K, 12K and 15K miles?

    Is there some consensus about how much over invoice one should be paying?

    Finally, are there any special deals (incentives, low factors etc.) on particular models that I should know about?

    Thanks!
  • jmax1jmax1 Posts: 9
    Lease Experts,
    I am looking at trading in my 03 Accord EX w/14,000 miles for a BMW 06 325xi lease special. Please look at these numbers and let me know if I should walk or run. Thanks
    Price 35,085
    trade 16,000
    deposit 450.00
    payment 500.00
  • kyfdxkyfdx Posts: 29,398
    1)On an '06 330i, the base money factor is .00195... The .00075 you saw was on an '05 330cic convertible..

    2) 65%..64%...62%.. for 3yr.. 10K.. 12K.. 15K miles..

    The '06 530i has a money factor of .0014, but the residuals aren't quite as high... in the '06 models, the 330i is about the best lease deal right now...

    regards
    kyfdx
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  • eyieyi Posts: 3
    Hi, I am considering leasing a 2006 BMW 325 i, MSRP: $37120. The dealer offered a drive out price for $36,860, leasing terms are: 10000 miles a year for 3 years, 2000 down, 549 a month. Is it a good dael? Also, I live in Texas. I know Texas have different law regarding sales tax on leased cars. The dealer said he is saving me a lot on tax. is that true? Should I go for the deal? Please help me. Thank you very much!
  • jvostjvost Posts: 31
    Thanks for the summary. The dealer quoted me 64% on 10k, but may have just made a mistake. However he did quote me a money factor of .00265 and insisted that was the lowest rate available. Is there some technicality to qualify for the .00195?

    Thanks,

    jvost
  • jvostjvost Posts: 31
    The lease is nearly up on my 2002 325Cic and I'm planning on replacing it with a 2005 or 2006 330Cic (need more power!). Assuming a 36 Mo., 10K lease, what are the factors and residuals for the two years? Is there any special support on either of the two model years? Are the figures different for a 325Cic?

    Thanks,
    hwga
  • bdr127bdr127 Posts: 950
    Thanks for the summary. The dealer quoted me 64% on 10k, but may have just made a mistake. However he did quote me a money factor of .00265 and insisted that was the lowest rate available. Is there some technicality to qualify for the .00195?

    BMWFS won't approve a lease contract with a MF marked up that high, so they are probably looking at the MF for the wrong car...
  • kyfdxkyfdx Posts: 29,398
    I agree with bdr127... Did you by chance get that quote in October? On the 330i, the residuals went up and the money factor went down for November..

    regards,
    kyfdx
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