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BMW 5-Series Lease Questions



  • I thought the base MF was .0016? When I run the numbers thru edmunds lease calculator, they come up higher than what I'm being offered. I'm just wondering of 646.00/mo incl taxes is good/avg/poor deal for a car that stickers out at 49,420...I really like the car, but dont want to pay $25-50/mo too much for it...Like I said, I think 600-610 seems right. Am I being unrealistic?
  • I don't know Conn sales tax; perhaps you're $594 w/o sales tax. I'll be paying $623 w/o sales tax, but for a car with MSRP of $56,965, to be built to my specs, for 24 MONTHS (is yours 36). Your sticker is 87% of mine, so you should be in the $542 range, or about $52 a month cheaper; I don't know Conn sales tax; if it's 8%, then the $542 becomes $585, about $61 cheaper than your $646. I'm not putting anything toward the lease, but I AM putting up a $700 security deposit, to keep the MF at 0014. Edmunds educated me that it's 0014, but 00155 without a security deposit. I am paying an acquisition fee of $625 (not your $625 plus $200 "misc"), and that's it, other than tax license, pre-pay first month etc.
  • Not to be too esoteric--but if my lease is $623.03 plus tax, and I give $700, and it drops the monthly payment $4, that's 48 per year, or about 7% return annually, which is not a bad assured return.
    If the $4 drop in payment is before sales tax, it becomes about $4.35 (with sales tax in Ca), so that's about $52 annually, or about 7.4%.
    So, maybe if someone can part with multiples of $700, it's ok to get an assured 7.4% return???
    Just intellectually curious....
    Meanwhile, I hope my dealer is on the level that I can get a 2006 530i built to specs and delivered here in Ca in 6-8 weeks.
  • My choice for 530I, with $625 acquisition, $700 security deposit, 1.4 MF, @ 12000 miles annually is
    2 yr @ $623.03 per month
    3 yr @ $640.48 per month
    Do I pay $17 more a month, because it's a good lease, or save the money in the hopes that in 2 years, there will be an improved BMW to lease, and the MF and residuals will be roughly comparable? (Obviously, who can predict interest rates).
    I realize I'll have to pay another acquisition fee -- $625, but $17 a month X 24 months is $408, so the het cost is about $217.
    Besides, don't I get a year free for Sirius, and a year free for BMW emergency communications? A year for each of those is probably a total of $400-$500. In other words for every 2 year lease, I pay for only a year of Sirius and BMW emergency communications; but for every 3 year lease, I pay for 2 years.
    Just curoius your opinion, Edmunds..
  • Hi,

    I'm looking to lease a 525i in N.Cal(Bay Area). I would like the premium and cold weather package along with auto trans.

    Below is what I was quoted with a money factor of .0020. I asked for a money factor of .0017 and selling price of $44.3K and the dealer was shocked.....any comments/suggestions?


    36 month lease/12,000 miles=$631.03 per month, including tax, with an initial payment of $1,779.84. Residual Value=$29,276.40 plus tax.

    36 month lease/15,000 miles=$709./44 per month, including tax, with an initial payment of $1,856.19. Residual Value=$28,332 plus tax.
  • move up to 530i...better money factor .0014, same monthly payment as what you are being quoted for better car...and several things that are options on 525i are standard on 530i (xenon, etc.), plus bigger brainer

    try reading previous posts
  • Hello all, can anyone tell me what i should expect to pay this week in NJ for a:

    2006 530xi 0r 530i
    Premium pkg

    Neg price?
    Money factor?
    Payment range (bad deal, good deal, great deal).

    Thanks for your help
  • I find it a curious intellectual exercise -- I never bought or leased a BMW, because the dealers/salespeople were elitist and snotty, the car was overvalued. I consider the 530I because the V6 is finally adequate, they made a few extras standard, and they subsidize the lease so I can rationalize leasing it. But now I find the dealer is not coming thru on the agreed-upon deal. Other dealers routinely marked up the money factor, and the official BMW web site won't even give the MF; one must depend on Edmunds. It's obviously a scheme to enable dealers to inflate it. Same with the acquisition fee; it's really $625, which many do, but some insist it's $825. Then, every luxury guy I or my wife has had -- Audi, Lincoln V8LS, Cadillac Escalade, Infiniti Q45, MercedesE -- ALL provided a free loaner if it was warranty service that could not be completed in 1 day. But not BMW, which claims it's the "discretion" of the service center.
    So, I may still get one, but if they keep screwing around, I'll switch to another brand. BMW doesn't need me -- it has plenty of success. But I don't like to be treated like I'm dumb and will pay an inflated, marked-up interest rate because BMW lacks the integrity to state its money factor. Indeed, BMW web site would not even tell me a delivery interval to order a car (not an exact date, just an interval) so I could validate the (it turns out: inaccurate) representation of the dealer. What kind of company is this? The website evades each question that you ask it and refers you back to a BMW Center. If I found one that was straightforward, I would not go the web site.
    Look, saving $50-$90 a month won't make or break me, but it's also the principle of the thing. I don't like something hidden, so the price appears one way, and it's the other way. And don't be fooled by 'family' dealerships like my local one -- they quoted fraudulent money factors-- and that's what it is -- the guy said, in effect, this is the BMW MF. But it's not, it's the dealership's MF. I consider all this fun, in a perverted way, because it's no longer the money, but the fact that, even after all these years, auto dealers have not changed, and BMW dealers are as bad as ever, and the company condones their behavior by its unwillingness to supply information to the consumer. For example, it says the MF is communicated "directly to the center." At least we have Edmunds. Thank you, Edmunds. At least I won't be taken by them or, I'll know that I'm being taken, and not be made a fool of.
  • Dealer says cannot locate suitable 530i 2006, and I could order 530i 2007. I'm concerned about higher invoice for 2007, somewhat concerned about residual, but mainly concerned about money factor.
    Any thoughts????
  • jvosjvos Posts: 65
    I am sorry to hear you have had so much trouble. My own experiences have been the opposite. I just leased my 3rd BMW (530Xi) all from the same dealer. I was given the BMWFS MF (just call them, they'll give them to you), and paid ~$1000 over invoice. Also, my dealer has always provided me a loaner and basically treats me like a king.

    Maybe you just have experienced a cheesy dealer?!? We live in a free market economy and anyone who has or can borrow the money can buy a dealership. Having said that, while adding in margin may be unpleasant, I do not believe it is "fradulent".

    Perhaps if I had a built in bias that the cars are "overvalued" I might have a different perception. I find the products to be an excellent value and in fact one of the reasons lease rates are so competitive is because the resale values are exceptional.
  • 1/Since you have good experiences, I'm wondering--where are you, and who is your dealer? You err--(a) I've talked to several people (and you'll find similar experiences int his forum) that various BMW dealers do NOT give the official MF; for example, one person in this forum said a dealer told him the base MF is "only for BMW employees";
    (b) my point is that major luxury brands routinely provide loaners for warranty service beyond 1 day; BMW does NOT. That's tacky. Your dealer does it because you bought the car from him. On my past cars, I've had that courtesy extended for warranty service beyond 1 day regardless of which dealer sold me the car, because the manufacturer (Audi, Cadillac, Lincoln, Infiniti, Mercedes) picks it up.
    2/I'm well informed about a free market economy; dealerships are not easy to come up, but it's hardly relevant. Whether it's legally fraudulent is not the issue, it is rhetorically fraudulent to tell a customer that a marked-up MP is the BMW FS MP, when it clearly is not.
    3/ It's not a built-in bias. For years, BMWs have made optional equipment standard on other cars, and charged more for V6s than others for V8s. A key reason lease rates are competitive is that BMW's marketing strategy is to prop up initial prices with subsidized leases; to have a higher lease rate than sales rate; and to further prop up the resale market with certified service and resale warranties. Besides residuals, they use a money factor that is, in fact, below free market. That's why it's easier to justify leasing, rather than buying a BMW.
    4/ I have arranged to lease a BMW with the official $625 acquisition fee, the base MF of 1.4, and at a sensible capitalized amount. Several dealers were straightforward. But it's clear that BMW central encourages the undisclosed markups by refusing to tell the consumer what the MF is; I'm glad I had Edmunds to clue me in.
  • kyfdxkyfdx Posts: 48,987
    1) I don't think any captive finance company publishes their money factors... That isn't just BMWFS, that is everyone.. That's why we have 150 different forums for lease questions..

    2) BMWs have inline 6-cylinders.. not a V-6 in the bunch.. ;)


    Prices Paid, Lease Questions, SUVs

  • bdr127bdr127 Posts: 950
    It seems as though most of your complaints are because of the dealer and not specifically BMW. The fact that you referred to the staff as "elitist and snotty", it sounds like you are mixing with a bad bunch. I might try to find a different dealer to work with....

    As someone said above, trying to make money in our capitalist, free market society is not a crime. Most of us don't go online and bad-mouth our local Wal-Mart or Best Buy when they mark up merchandise 200% or more!.... Granted, the dealer shouldn't lie in doing it, but it is not "slimy" or "fraudulent" to simply make money.

    As someone also said above, no bank or financial institution publishes its financing buy rates. It would be pretty dumb for a business to tell the public and make no money as a result. That is all banks... not just BMWFS. Your local bank might disclose "6.9% financing" on their website , but they are definitely making money on that (their "buy rate" might be more like 5.5% or 5.9%). Try going into your local bank and asking for their base buy rate... they'll probably just laugh you out the door.

    As for ordering a car and its delivery time, it is impossible to nail down an exact date like you are requesting. There are so many factors and variables involved. First, every model has a different production schedule and build time. Second, every dealer has different allocation, so one dealer might be able to get a car into production the next day, but another might not be able to get one in for two weeks. Third, once the car arrives at the port in Germany, it needs to wait for a ship to transport it across the Atlantic. Sometimes it has to wait one day and sometimes it has to wait two weeks. It all depends on the ship schedules and availability. Fourth, shipping time is slightly variable. Sometimes it'll take 2.5 weeks to transport, sometimes 3.5 weeks. It depends on weather, ship speed, and how many stops the ship has in between Germany and the US port. Fifth, transport time from the US port to your dealership is soooo variable. If you live in South Carolina (one of the US ports is Charleston, SC), then the car will probably get to your dealer within 2 days. If you live in Texas or Missouri or something, it'll probably take a couple weeks...... As you can see, BMW trying to tell you the exact date a car will arrive is impossible. That's why they give you an approximate range. That's not a "scheme"... It's the truth.
  • a/ Several of my BMW friends had similar problems buying/leasing/servicing BMW.
    b/ I don't care how much money take make; my gripe is passing off their marked-up acquisitio nfee and MF as fixed by BMW FS.
    c/ Of course, I don't expect a bank to disclose its cost of money, although Fed Reserve Board discount rates, overnight rates avings rates are all published. But who cares about their cost or profit? Not I, if I'm borrowing money from them. I only care about what I pay them. The issue hee is that people BELIEVE (and dealers I dealt with encouraged me to believe) they are paying an official BMW FS rate, when it is, in fact, marked up.
    d/ Of course, I don't expect a precise date on delivery. I'm well aware of all the variables you cite. But barring a shipping strike, etc., I merely wanted a WINDOW (between x time and y time). It turns out I was given the WRONG delivery window between by the dealer. For example, BMW quotes a clear window to order a car for European delivery, and a clear window when it's shipped back. So, with me, they wre just being evasive, as on every question I asked BMW.
    ...I will get the car for performance, and because of the BMW subsidized lease, which makes it competitive. And I will hope for limited or no warranty repairs that exceed one day, since BMW, AS A COMPANY, does not provide free loaners.
  • jvosjvos Posts: 65
    I just don't get this BMWFS MF thing. I phoned BMWFS, asked for their current MF rates and they gave them to me. They were identical to what I found here and on other forums, so I have every reason to believe they were legit. Perhaps it was because I was a previous/existing BMWFS customer, but it was literally as simple as a 3 min phone call to get their rates.
    And when I told my dealer that the rate he had in his estimate was .02 higher than what BMWFS told me, he confirm and immediately matched the BMWFS rate.

    BTW, no car company providers loaner cars. None! It is purely the dealer. You local Ford dealer is not owned by Ford, even if it is licensed to sell Ford. A manufacturer cannot dictate what the dealer can and cannot do, except to yank their license. Otherwise, its called monopolistic collusion.

    Again, all sounds pretty much like a poor dealership experience to me.

    And since you asked, I live NW of Chicago.
  • jvosjvos Posts: 65
    I knew I'd find this somewhere. This is state law, so YMMV -

    "A manufacturer may not own, operate, or control a dealership, including one primarily engaged in performing warranty work. However, a manufacturer-owned dealership is permissible:
    < While it is being sold under a bona fide contract or purchase option to the operator of the dealership; or
    < For up to two years during the transition from one owner or operator to another. A court may extend the two-year period for an additional year if the manufacturer proves good cause for the extension.

    A manufacturer may not sell a new vehicle directly to a retail customer other than a nonprofit organization or a government agency. However, a manufacturer may provide information to consumers for marketing purposes, and may establish a program to sell or offer new vehicles through its dealers.
  • 1/ Perhaps your implication is correct -- the problem is not BMW, but the web site respones, since you telephoned. Or, again, maybe it's because you're a BMW prior customer. And what if you didn't call them, your BMW dealer would have given you a higher MF. They can mark it up, just say so. If it's a bank's money, they don't have to say anything. But this is an 'official' BMW FS lease.
    2/ Wrong about other car companies. My past dealers told me that the company reimbured them for the loaners -- including rental cars, when warranty work went beyond a day.
  • jvosjvos Posts: 65
    I'm sure my dealer would have charged me a higher price if I wouldn't have negotiated too. Is that BMW's fault? Is it the dealers? Or does it just mean that MF is another item to be properly negotiated and to properly negotiate you need to be well informed. In my case, the Dealer made a fair deal, BMWFS was forthcoming with the information and BMW provided, in my opinion, a first rate product.

    I guess I just don't see how any of your complaints reflect at all on BMW as a car company or BMWFS as a finance company.

    To each their own opinion though ...
  • bdr127bdr127 Posts: 950
    I'm also having a hard time understanding the negativity directed at corporate BMW and at the dealer for simply charging higher to make more money....

    I can almost guarantee that most loans that we all have ever taken out (whether it be auto, home, personal, etc) were marked up so that someone made money. Did they all come out and say, "Hey, we're marking up this rate so we can make some extra profit." ?? Of course not... They don't have to, as it is a business's prerogative to make money. After all, it is a business.

    And this goes far beyond just BMWFS. No financial institution or dealer is required to give anyone the base MF and they aren't required to tell you that they're making money, so why shouldn't they at least try to make some money. If they charged more than their absolute bottom line zero profit invoice price on the car, would they have to explicitly tell you that they weren't giving that to you? This is, after all, a capitalist free market country.
  • Either I'm unclear, or you are creating a nonexistent argument. My problem is not with the free market, the concept of profit, or a dealer or anyone else making up an acquisition fee or an interest rate.
    Rather, it is with the dealer telling me they are not making it up, when the dealer is.
    Of course, it's the dealer's prorogative to make money.
    But on leases, we've come a long way from when open-end leases, and form when you shopped for different leasing companies and banks. I spoke to several people who had the same misunderstanding as I, a misunderstanding fostered by BMW FS.
    As far as I'm concerned, they can charge whatever they want, for acquisition fee, or MF, and I don't care if they charge more than MSRP is someone wants to pay. You guys just don't get that my beef is with the deception and, even when questioned, not responding accurately.
    So, stop framing this as an attack on free markets, capitalism, profits, entrepreneurship, or the cost of money.
    Part of the free market is the ability to be informed -- and, for me, Edmunds performed that role. It's not the dealer's role to inform me of his profit, but I certainly do not have to condone his telling me something that is not so.
    As I said in my prior post, I don't begrudge anyone --dealer, finance company, bank, mortgage lender, charging more in interest than they pay for the money. Obviously.
    Nor should a financial institution or the dealer be REQUIRED to give their cost of money. Nor did I ever say that. I did feel that BMW FS should be open about it, and I did say that they were not, for a reason, to give their dealers an extra profit center. And, for you experts on capitalism and money and banking, let me remind you that the dealers are NOT loaning you their money, or loaning you anyone's money. They assume zero risk. It is BMW FS money. So, I don't think the comparisons are appropriate. They are not in the loan business, but in the car business. If they want to make their money by marking up BMW money, that's fine with me. Just don't tell me they are not marking it up, and this is THE BMW FS rate. It's not. Or, as one person on this website pointed out, he was told the actual BMW acquisition fee was for employees only, when obviously that's not the case, and the marked up acquisition fee was the fee. By the way, I'm not arguing dealers don't have a right to lie. But it's a free country, and I offer my observation that it's at least B.S. for those who do misrepresent -- and that is more than simply entrepreneurial salesmanship.
    None of it is momentous, but I wanted to reiterate my gripe is not the free market or profit or even salesmanship. And it's the consumer's obligation, I agree, to be informed; dealer is under no obligation to fully disclose markups --just don't blatantly mislead or even lie.
  • arikarik Posts: 1
    i need some help , what price should i lease for and what should i pay over invoice i am looking at 06 530i with leather and auto, on bmw site came to 50,220 including 695 destanation what will be the best payment for 36 and 24 month lease i am in south Florida Thanks
  • Hey everyone, I'm new to the board. I recently leased a Demo 525XI with cold and premium package and xenons with about 7300 Miles. The dealer wouldnt disclose the money factor to me. The selling price was 43,317. My monthly payments is 578.17 including tax and acquistion rolled into payment. The acquisition is $625. I put down the security deposit of $600 and first paymeny only. Did i get a good deal? Btw, this is a 2 year lease with 15,000 miles a year.
  • I am new to the board
    I want to lease a an 530I for 36 months,Premium Pkg, Zero down 15,000/year
    what is the monthly price? I live in Los Angels
    Are they changing the Car next year (I do not need the car till May 06)
  • You'd probably have to order a 2007.
    I nearly did that.
    The 2006 and 2007 are the same, I'm told.
    So far, I'm satisfied with the lease deal I made with Pacific BMW, Glendale. It says here I can't post a sales person's name, but you should deal with the Internet manager. She cannot quote you invoice yet on a 2007, nor can she quote you MF. But I think she'll give you a good deal, based on my experience.
  • jvosjvos Posts: 65
    If you know your tax rate, have a purchase price, fees, down payment and know the monthly payment, you can use the Edmunds lease calculate to back calculate what the MF is.
  • What is the price including the 8.5 or 8.75% tax?
    A lease for 36 month with 0 down and 12,000 or 15,000 miles a year.
    I want to be prepared with a number so I know what to expect!
    I am looking for 530I with premium package no GPS.....
    I do not believe we can do a lot with MF what really counts at the end of the day the monthly payment esp when you have 0 down so you can really compare prices the dealer are offering
  • Thank you for the reply. unfortunately, i'm not too computer savy, If i gave you the numbers, would you be able to help me out?? Thank You.
  • Does anyone know of the money factor for 530i BMW lease is different than 1.40 that prevailed in February?
  • bdr127bdr127 Posts: 950
    BMW tends not to release that info until the new month starts.
  • Thanks Carman,

    Also wants to share my experience with everyone.
    I end up buying out my BMW at the end of the lease.
    Residual value 35K, buyout price 31K without CPO. ($1,800 addition for CPO)
    Finance with at 3.9% for 60 months.

    My dealership detailed the car, performed oil change and all the safety checks.
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