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BMW 5-Series Lease Questions

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  • Well, I ran the numbers every which way but loose and decided to lease this used 2007 530i for two years.

    2007 530i w/ sport, premium, cold, tint, chrome wheels at 20k miles
    Selling price 26,500
    residual 16,950
    MF 0.00315
    24 month term
    drive off $1000
    monthly $569 (with taxes)

    In the end, it would have been close to a wash for a purchase and like the last poster mentioned, I can see at the end of 2 years how I like the car and what will they sell it to me for....
  • yatzeyatze Posts: 33
    Thanks for all the sound advice I've received on this forum. It really works.

    So, I have found a dealer who will sell me my leased 2006 BMW 530xi wagon with 20K miles as a certified pre-owned for 29K.

    What do you think? What questions should I ask? I plan to finance it through BMW financial as I did the lease.

    Thanks for your help. The car comes off lease beginning of March.

    I live in northern NJ.
  • jayriderjayrider Posts: 3,204
    Sounds like a good starting point. There are lots of 06's coming off lease so there should be room for a better price. If your driving patterns remain the same, in three years you will only have 40k on the car. Low miles for a 6 year bmw and certainly an attractive used car. Do some research on asking prices nationally and see if the deal is decent. Ask what the price is without the CPO. If you have had good luck with the car so far, and maintained it well there is no reason to believe a major problem will occur in the next 20k miles. Put the difference in the bank and live on the edge a bit. BMW is betting you won't use the warranty and they should know.
  • yatzeyatze Posts: 33
    Thanks for your prompt response.

    Dealer said 26K without CPO, but finance rate goes up to 1.9 instead of 0.9. I have to finance it unfortunately.

    I have taken good care of this car.

    I will probably start to put on more miles because if I buy this I will sell the "backup" car I have and stick with just the one car.

    I don't mind living on the edge, but I know that this car is EXPENSIVE to maintain and fix.
  • jayriderjayrider Posts: 3,204
    The deal seems decent but the auto world will be different at the end of feb. Auction prices will change values as the economy tanks. Make no mistake -- things will get worse before they get better. What was the buyout number on your lease at it's inception? I guess I figured that someone with a moniker yatze would be prone to roll the dice. I would be willing to bet that your repairs for the next three years will never come close to 3k. And that would be just to break even. You should really look at 6k in repairs as the benchmark. But peace of mind is worth something too -- I get mine from chemistry. Get back to me at the end of Feb. and I'll see if I can get the current auction prices for you.
  • jayriderjayrider Posts: 3,204
    You didn't mention the first 2 payments are made by bmw -- on website. Also you need to check what's not covered by cpo. A big one is brakes- so make sure you know what's left when you buy.
  • yatzeyatze Posts: 33
    Thanks again for the prompt response. My original residual is $36,579. I put down multiple security deposits so would get back about $4000.

    Dealer suggested bringing in car for "pre -pre- inspection in early February while still under lease to see what needs to be done, if anything so I won't have to pay for it.

    He gave me the papers for what is covered CPO -- will re-examine then again. Also said I could get a "maintenance" contract for an additional 1895. Not sure I want to do that.

    I will take advantage of your offer to contact you end of February for latest auction #s.

    In the meantime, have looked for 06 wagons on the internet and $29k is the low end CPO, except for a car down in Miami for 27,595 but that car has 40K miles.
    NYC BMW has almost my identical car, close mileage for $28,900 so no much difference. Others are in the 30's.

    I will contact you in February before I go back to the dealer. My lease in up March 6.

    Thanks for all your help.
  • jayriderjayrider Posts: 3,204
    Sounds like you are doing the best you can to get a fair deal -- did see one like yours for 24500 with similar miles on ebay so you are pretty close already. You might offer $500 for the maintenence package and let them sit on it. The less likely they feel you are going to buy and the more likely they feel they are going to put your car on the lot -- the better your negotiating position. Later.
  • yatzeyatze Posts: 33
    Do you know if the CPO can be negotiated or is that set by BMW? I have gotten different quotes on this in the past. Thanks.
  • jayriderjayrider Posts: 3,204
    Your total price is very negotiable. If they negotiate a better price off the cpo/maintenance packs they could be negotiating off the selling price of the car. My guess is that auction price on your car could be in the low 20's now. If they are selling to you for 26k there may be up to 2k for them to give on a bottom line deal. The auction price in march will be lower so you may be able to get the car for a bit less than 26 or you can pay 29 for the cpo and try to weasel the maintenence pack. If it doesn't cover brakes, I would pass on that and go for a better deal. You have to project a predisposition to turn the car in unless they make the deal super. If they won't move the day you have to turn it in then you know you've don the best and can sign on theline. Also, if you feel comfortable with this dealer and have checked with others who are satisfied then that is worth something as well. Lots to consider but stay frosty with cold dead eyes --- tell them your wife is dead against it and you're going to buy a ford focus cause of economics --- make up your own bs. It can work.
  • yatzeyatze Posts: 33
    Thanks. I will touch base with you in February. I live in a pretty affluent area, and this was the only dealer out of 4 who would even consider doing this -- the others said they don't buy back cars. End of story. My dealer would only sell/lease a new car.

    I already told this dealer that I would walk away if the deal wasn't good as I have 2 other cars and either would keep them or get a honda. Didn't faze them. THey said check back with them in February. So I will and thank you.
  • gardisgardis Posts: 185
    Yatze, I just checked my local dealer here in Fairfield County, CT., they have a 2006 530XIT wagon, with 44,138 miles (!!) and asking $34,900 for the vehicle, CPO. I would say, I have no experience at all like Jayrider, but to me, that $29,000 seems like a deal for a car with only 20K miles? Wow that sounds even cheap to me.
  • gardisgardis Posts: 185
    Jayrider, what do you think of this deal:
    2007 530i with 28K miles, one owner. Warranty runs Aug. 2012. (Aug. 2010 on the service warranty).

    Vehicle has all pkgs (sports, premium, cold and 1more I can't remember), NAV,
    premium sound, many other things, dealer called it "loaded".
    They are asking $34,900 for it, and the sales girl said they would negotiate. Also has tinted windows (after-market) which they offered to remove no charge. Since the car is black/black, it's a little too dark.

    I'm reading what you are saying about the market, and thinking maybe I let them sit on the car and wait it out, but the car is beautiful, I hate to lose out. It's been on the lot for about 3 to 4 weeks now. I'm trading in a 1996 328i with 106K miles on it. Don't have a clue what they'd offer me for the car.

    Then there's another dealer with a 2007 530XI, 18K miles, white/beige, sports and premium pkgs only, he wants $36,900 firm. He calls that price "competitive." I don't know that they'll move on it, yet I'm attracted to the warranty on that vehicle which runs until Apr 2014 since the car didn't go into service until Apr 2008 for some reason. His position is that since his vehicle has AWD it's worth the extra. I couldn't care less about the AWD.

    What do you think, any advice.? I'm holding off and waiting. I figure who's looking for a new car in early January.

    thanks Jayrider.
    Gardis in CT
    gardis72@gmail.com
  • jayriderjayrider Posts: 3,204
    Since you are trading 1996, there is almost no way to calculate your deal. You need to sell it or wholesale it out because no dealer will give you $500 for it. Pay a $100-$150 to have it detailed and drive it another year.It will seem like a different car. Best advice you'll get.
  • gardisgardis Posts: 185
    Jayrider
    I don't get it. I am talking about purchasing the vehicle, not leasing.
    I'm planning to trade in the 1996.
    I don't follow you. You're saying don't buy anything, keep what I have and drive it another year? Please clarify. Sorry, and thanks.
  • jayriderjayrider Posts: 3,204
    Trading a car turns a clear deal into a muddy one. What the dealer gives you in trade varies from one dealer to another so unless you sell your car before you deal you really don't know where you stand. With a 8 year old car with 100k plus miles a dealer isn't going to be interested unless it is pristine and runs like new in which case you should sell it yourself. If the car is rough, no one will want it. Get it detailed and drive it til the wheels fall off. Every month bank the payments then when it finally dies donate it and start searching for a new one. The dealers you talked to don't see you as a serious buyer. From our discussions I don't see you as a serious buyer. Nothing wrong with that, just an impression. You haven't test drove any of the cars you seem interested in so that would be a good first step. You might decide your car compares well enough to keep it. If your present car is dependable you should be able to get another 50k out of it. Me personally, I would never spend 35k on a used car. No way no how. So many fine autos available foreign and domestic brand spanking new with great features safety and value. To each his own -- good luck.
  • Hi sdsualums. BMW just introduced its January lease program a few days ago. BMW Financial Services' new buy rate lease money factor and residual value for a 36 month lease of a 2008 528i with 10,000 miles per year are .00100 and 56%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Welcome abuck. The most important numbers that you can find out when negotiating a lease are the MSRP and selling price of the car that you want. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without these two numbers A) it is impossible to calculate a lease payment on your own to double check the one that you were quoted and B) it is difficult to tell how much of a dealer discount you are being given. Find out what these numbers are and let us know. I am sure that either myself or another helpful community member will gladly give you their opinion on them.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • soupconsoupcon Posts: 13
    car_man!
    can you tell me the january 2009 residual and money factor for MY08 550i's (36mo/10k)? i heard the residuals went down on a lot or all of the MY08's.
  • eights38eights38 Posts: 137
    Hi soupcon,

    2008 BMW 550
    36 Months - 10,000 Miles per Year - 0.00120 Money Factor - 56% Residual

    Best,
    Matt
    eights38@gmail.com
This discussion has been closed.