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BMW 5-Series Lease Questions



  • bmwpbmwp Posts: 1
    Gang, can you please let me know if the Edmunds $1500 Customer Credit is still available to register and redeem?

    Thanks for your help.
  • kanchiskanchis Posts: 33
    Its gone now. sorry. :cry:
  • onezeroonezero Posts: 5
    sport pack, those crazy adjustable seats, and heated seats I think.

    I'll give the place, once I decide to do the deal (or not)

    So far this deal has beat Audi and Benz. I personally like the 5, but they do depreciate like a President starting war in the Middle East...
  • ihitcowsihitcows Posts: 45
    Hiya. In May, the MF was 0.00185. If you qualify for Loyalty, then you can either lower that rate buy 0.0003 (making it 0.00145), OR you can choose to use a cap reduction (which is taxed in most states) of $1,500.

    This month, according to my dealer, the top tier buy rate for the 528i at 36 months is 0.00175. According to both my dealer and the BMWUSA website (helped by a handy calculator, the 10k residual is now 61%, which would make the 12k residual 60%.

    Also, if the tax is the same at South Bay as it is here in L.A., then the tax your dealer is quoting you in the rebate, "$135," should be $131.25.

    The training service fee is legit, but, in California, a Document Fee, or "Dealer Prep" fee, cannot legally exceed $55. Yeah.

    Rock and Roll.
  • ihitcowsihitcows Posts: 45
    edited June 2012
    Loooong story short:

    I'm pretty confident that BMWFS's June residual percentage for a 2012 BMW 535i at 12k per year is 58%, but I'm a little confused on the money factor. Methinks it's about .00175.

    Save me, Car_man, save me!

    Oh! Also, how does this alleged $1,500 option allowance work? Can in it work in tandem with the loyalty rebate? How many car salesmen does it take to screw in a light bulb?
    . . . most seemingly, so long as they haven't TOLD ME they will screw in the light bulb, I see no reason why any one able car salesperson couldn't do it.*

    *Tax not included.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey ihitcows. BMW FS' June buy rate lease money factor and residual value for a 36-month lease of a 2012 535i are .00185 and 58%, respectively. The $1,500 dealer cash and $1,500 owner loyalty cash can indeed be combined.

    Prices Paid: Buying & Leasing Experiences Forum
  • tlb5tlb5 Posts: 35
    nystar - i apologize but after about 2 weeks checking for updates i stopped looking (as i tend to do) until the next 36 month turn. if i can still help in any way let me know - i'll check for a couple days. i THINK my dad got the car in morristown but i'm happy to check for sure. looks like some good incentives came afterwards in any event.
  • Car man what payment should i be looking for on a 535 , 36 month lease , i live in Charlotte .. Thank You
  • ihitcowsihitcows Posts: 45
    Firstly, much thanks to you, Car_man, for your help.

    I am under the impression that the $1,500 "Option Allowance" being offered on the 5-series applies "against the MSRP of the final purchase, loan or lease."

    If this is the case, then my question is:
    If I am leasing, then in what instance would I EVER want to use the "Option Allowance"?
    The answer becomes even more seemingly obvious if I have already worked out a selling price!

    Whatever the selling price is, I always want a HIGHER MSRP for a higher residual. Lowering the MSRP after (or possibly before) I've gotten a selling price would do nothing but raise my monthly payment!

    Lastly, even though it's termed an "Option Allowance" on the BMW web site, Car_man referred to it as "Dealer Cash" in his previous post in this thread. Does that mean I can use it against selling price at all?

    Again, sorry for my long-winded, utterly specific questions. And thanks for help!
  • jasonmdbmwjasonmdbmw Posts: 117
    The $1500 "Option Allowance" is used to help gain a lower selling price on the vehicle and is the same thing as "Dealer Cash" as Car_Man previously referred to it as. It does not lower the MSRP
  • techstechs Posts: 1
    Can anyone give me an idea of a fair deal on a 550i Sedan with below options:

    2012 MY 550i
    Conv. Package
    Auto with Paddles
    Heated Seats

    MSRP: $69,395
    12K Miles
    $0 out of pocket
    36 Months

    Thanks everyone.
  • ihitcowsihitcows Posts: 45
    Thanks, man. I was a little confused. :confuse:
  • ihitcowsihitcows Posts: 45
    Try using edmund's TMV calculator for a fair starting place.
    Edmund's True Market Value will vary according to where you are in the country. Invoice should be the same, though, at $63,870.

    Here's what it is assuming you have top tier credit and using the TMV for around here, but BEFORE TAX and not including license, registration, or document fee cuz I don't know where you are :) (using the rate and residual I got from another site; not entirely certain about them, but they should be close)

    MSRP: $69,395, Selling Price: $65,300
    Acquisition: $725, First Month's Payment Rolled in: $919.99, CAP: $67,014.99
    Money Factor: 0.00190, Residual: 58%
    Monthly Payment Before Tax: $947.30
  • jsmdukejsmduke Posts: 3
    Can anyone tell me what the current BMWFS money factor is for a 2012 550i Xdrive GT? (Top tier credit and loyal bmw customer) Also, what is the current residual percentage for a 36 month lease with 10k or 12k? Thanks!
  • I was quoted a money factor of .0225 and Residual of 56% for a 2012 535i 36mo/15k lease. Why such a high MF?

    Also, the dealer only offered $5k below MSRP ($1k over invoice), which I don't feel was too great of a deal, especially with the '13's around the corner.

    What do you think will change once the 2013's hit the lot?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jimmybadlands. I would be happy to use BMW's current lease program to work up a payment on the exact car that you are interested in for you. Just let me know what its MSRP and dealer invoice price are. You can find these numbers over in the New Vehicle Pricing section of

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Certainly jsmduke. Through July 9th, BMW Financial Services' buy rate lease money factor and residual value for a 36-month lease of a 2012 550i xDrive Gran Turismo with 12,000 miles per year are .00190 and 62%, respectively for consumers who qualify for its top credit tiers.

    The residual value for a lease with only 10,000 miles per year would be 1% higher.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi el_duderino_. The money factor that you were quoted is definitely high. If your credit is in good shape, it looks as though the dealer that you spoke with is attempting to mark your car's factor up to add additional back-end profit to your deal. This sort of thing is fairly common at BMW dealers. That doesn't mean that you shouldn't try to avoid it. Try to get the dealer to use BMW FS' current buy rate of .00185 to calculate your car's payment.

    Given the fact that BMW is currently providing a $1,500 cash incentive on this car, a selling price of $1,000 over dealer invoice does not look that great to me. Unless the dealer is subtracting the option allowance from that, you'e really at around $2,500 or so over.

    This dealer doesn't seem that great to me. Have you tried shopping around any? It might not be a bad idea to comparison shop with another dealer or two in your area if there is any.

    Prices Paid: Buying & Leasing Experiences Forum
  • Thanks Car_Man. You confirmed my suspicions. Unfortunately, I live in a one dealership town (Austin) but the dealerships in neighboring cities seem to be much more willing to deal and upfront about things.

    I have received a price from a dealership in Houston that is about $2k under invoice and this has all been done online, so much more pleasurable experience.

    I haven't discussed leases with them yet, but wonder if that can all be handled via email as well. It would be great to just have to sign paperwork and pick up the vehicle.
  • Also, I realize this is a lease forum, but what is the thought on lease vs finance on these vehicles? The monthly payment is very close between a 36mo/15k lease and a 60 month finance.
This discussion has been closed.