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BMW 5-Series Lease Questions

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  • vsaxenavsaxena Posts: 201
    In general, it is always good not to put any money down to buy down the capitalized cost of the lease. Apart from losing the down payment if the car is totalled, you can typically earn better returns on your investment if you have a special Money Factor (like what BMWFS is offering on the 5 series).
    For many people putting multiple security deposits is a great deal. You can buy down the MF to up to 0.0049 by putting seven deposits and that is equivalent to a reduction in the interest rate of almost 1.2%. On most deals this translates to an ROI of greater than 10%. And this is in post-tax money.
  • omeganetomeganet Posts: 4
    Great post! Can you provide more detail, i.e. how much is each deposit, and I assume the total amount is then multiplied by seven to get the maximum discount? Do you get these deposits back at the end of your lease, or are they used to pay off the final payments of your lease?

    Could you put together an example scenerio, and is this figured in with the current inflation rate?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, lloyd5. Enjoy your new car :shades: .

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi yaya1. 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 its selling price is.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello xspectg. You would be much better off using the proceeds from your trade to make multiple security deposits than as a down payment. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your BMW would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all.

    I estimate that you could use your $4,000 to make your car's first security deposit plus 5 additional. Since BMW reduces vehicles' monty factors by .00007 for each additional deposit, 5 additional would drop this car's money factor to around .00190.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi alboogie7. I can give you an idea of what BMW's new April lease program is like. What car do you want, how long do you want to lease it for, and how many miles per year do you need to be able to drive it. Let me know and I will give you the details.

    Car_man
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  • Hi Carman,

    Im looking at either the 525xi or 530xi with 10k/per year on a 3 yr lease...thx for your help
  • bon_bonbon_bon Posts: 19
    First time BMW (potential) owner. Trying to lease a 06 525xi. Here are the specs:
    Black on Black
    Premium
    Nav
    Cold weather package
    Automatic

    MSRP : 51220
    DP : 47500

    With the new April lease rates : 0.0016 for 36 months/10k
    The final price is 560/month plus tax.
    0 down

    Thanks
  • n1danieln1daniel Posts: 27
    Hi Carman,

    Could please provide the following info for April:

    2006 & 2007 BMW 530i & 525i for 36mon/15K miles

    Thanks
  • twoboxtwobox Posts: 3
    car man,

    thanks for all of your guidance. i'm still trying to figure out my 530xi wagon lease. do you know the mf rates for '06 vs. '07? (i'm considering an '07 european delivery) 15k/year 36 month lease. is that .001 mf for march still available on the 2006 models?

    thanks in advance!
  • barrosjabarrosja Posts: 2
    Hey guys I just ordered an 07 550i MSRP of 67415 1129/mo payment 36 mo/ 15k miles. is what i was quoted. From all this talk that seems pretty high. My credit is pretty good right at 700 give or take 10. The car will be here in a month and a half. If i can get this tied down id be very happy!

    If anyone can help let me know. Oh also drive offs of 3670 I believe.

    Thanks!
  • asteinbergasteinberg Posts: 138
    I took delivery of my BMW 530i from Pacific BMW in Glendale, Calif. They were straightforward -- $625 acquistion fee, not $825; .000140 with deposit, not .000160 with deposit, as some wanted; and with a reasonable discount on the car. Plus, they locked in the MF with BMW FS, so that I would get it or the next month's MF, whicheever was lower. Thanks to your advice, I did 7 more security deposits, bringing the MF down to .000091. Thank you for all your help.
  • Car-Man-

    Thanks for the helpful information. I just put a down payment on an 06 530xi wagon. Here are the details.

    MSRP- 56,070
    Invoice- 51,590
    Negotiated Cap Cost- 53,000
    MF- .0012
    Term- 36 Months
    Milage- 12,000

    2,400 drive off (includes 1st month, security, bank fee of 850, and title taxes, etc)

    Based on my calculations, the dealer made approx. 1,600 on the car (1,410 on the car and 200 on the bank fee).

    How did i do ? I was pleasantly surprised to see the MF at .0012 as I was expecting .0016.
  • cybrmikecybrmike Posts: 1
    Can I have the MF and residual for 2006 530xi for:

    24 mo/ 10K miles
    36 mo / 10K miles

    This site is unbelievable. Have learned a ton about leasing in the last few hours.
  • yaya1yaya1 Posts: 3
    carman--
    the msrp is 56,770; i believe invoice is 52,420 and the selling price is 53,515 for the 2006 530xi wagon (premium, automatic, sports package, 18" wheels). they have come down in pricing.... so now we are at drive off of $1,115 and monthly payments of $667.70 (that's including california tax). no longer giving them my trade-in! how did we do?????

    thanks in advance!!!!
  • dan030dan030 Posts: 3
    Ive noticed you are very well informed and helpful on lease rates and lease help. I am in the market for a 525i or a 530i still undecided. What sould i expect to pay for:
    First time BMW owner. NY state resident. 780 Credit score.
    530i:
    MSRP 56385, 12k miles per year, 36 month
    leather
    cold
    smg
    M aero kit

    525i:
    MSRP 47020, 12k miles per year, 36 month
    Steptronic
    Cold
    Xenon

    Please let me know any help is great.
    Dan
  • junap1junap1 Posts: 2
    I am looking to lease a 2007 530xi, do you have the current residual value and money factor for a 36m/12,000 mi lease? In addition what percent over invoice should I be targeting for a 530 xi? I was told I needed to order one now if I want it in June, how will that affect by bargaining power?
  • I believe that residual for an 07 530xi is 62% and the MF stands at .00225.

    You might want to consider looking at an 06 530xi bc the residual value is still 62% and the MF is considerably lower. In addition, you should be able to negotiate a better deal on an 06 than an 07.
  • 4hondo4hondo Posts: 1
    I am new to the game of leases.Is is possible to lease a 06 525BMW sticker price of 49,625.00 in April for No money down around 620-640 monthly payment out the door? I am in San Diego,CA.I have read some of the posting and you mention about using security deposits instead?
  • I just had a dealership "offer" me 1% off the MSRP (which they bumped up $850 over bmwusa.com's msrp for a 2007 530i). Also, what other fees get added/subtracted into the "sell" price other than acquisition/down pymnt/trade in? Also, aren't security deposits equal to the amount of the monthly payment?

    The reason I ask the last two questions is the salesman's numbers seem to be quite a bit higher than I expected. Also, will they generally waive the standard security deposit if you have excellent credit?

    I'm looking to do a 36 mo lease, 12,000 mi/year, zero down and buy down as with as many security deposits as they will allow. Anyone have a recommendation for a reputable dealer in O.C. CA?

    Thanks a million, CarMan. This forum has been very helpful.
  • bdr127bdr127 Posts: 950
    Also, what other fees get added/subtracted into the "sell" price other than acquisition/down pymnt/trade in? Also, aren't security deposits equal to the amount of the monthly payment?

    The reason I ask the last two questions is the salesman's numbers seem to be quite a bit higher than I expected. Also, will they generally waive the standard security deposit if you have excellent credit?


    BMWFS has a $625 lease acquisition fee (and a $350 disposition fee, but only if you don't end up buying the car at the end). All leasing institutions have an acquisition fee, so this is not exclusive to BMW. The fee, however, varies from one financing company to the next (e.g. GMAC might have a $599 acquisition fee or VW might have a $500 fee... not necessarily the actual real numbers; just an example for the explanation.)

    The security deposit is equal to your monthly payment rounded up to the next $50 increment. (e.g. If your payment is $644, your SD is $650. If your payment is $651, your SD is $700.)

    Nothing can get waived based on credit. The SD can be waived if you are coming out of a BMWFS lease and into another one. It can also be waived by adding 0.00015 to the money factor.

    The only other fee that you might see if the dealer doc/prep fee. I think that CA is a flat fee of $45? Is that right?
  • Thanks bdr127.

    I was quoted $415 for "DMV fees" and told this included vehicle registration, which seems about right in CA.
  • wjevbwmwjevbwm Posts: 1
    Hello all. I am new to the leasing arena and I am looking a buying a new 2007 BWM 525xi. The MSRP with all my options is 56,600 with the invoice being 51,615. I asked for a price half way between that to get me to $53,910 (before I found this forum.) I hope that wasn't too stupid.

    The lease offer is for 15,000 miles and 36 months with 0.20 cents per additional mile.

    The dealer quated me a $789 lease based on a 2,000 down payment, a 60% residual value, a 395 final get ready fee, and a .00235 money factor. From the sounds of the discussion that money factor is way too high. I have good, but not excellent credit. What money factor should I be targeting? Is that the correct residual value?

    Also, now that I have that deal in had, I wanted to shop another St. Louis area dealer to see if I could do better. Do you have any recommendations on strategy?

    Thank you all for these postings and your time. I realize that you don't have to do this so I value it even more. You are making this dauting task much more manageable.

    William
  • bdr127bdr127 Posts: 950
    I was quoted $415 for "DMV fees" and told this included vehicle registration, which seems about right in CA.

    Oh yeah, I forgot to mention DMV fees.... Obviously you have to pay the state their fees for title/reg/plate. And every state is different, of course.
  • William,

    I believe the best deal on good credit right now (money factorwise) is .00225 with a security deposit. (Which may be waived if you are a current BMWFS customer.)

    Rather than putting money down, you may want to look into placing multiple security deposits. Each additional security deposit (up to seven) will "buy down" the money factor by .00007. For instance, I was able to "buy down" my MF rate to .00176 by placing an additional seven security deposits. I'd only recommend placing a down payment if your total lease payment is just above the nearest $50. (For instance, if your total lease payment works out to $752, it may be in your best interest to place a small down payment to get it under $750, as your security deposits get rounded up to the next highest $50 mark.)

    I'm told they aren't "dealing" much on the 2007 models at this point, since they are brand spanking new. If you can find a 2006 that you like, you can get a smokin deal on one of those. I was only able to negotiate 2% off MSRP on the 2007, but you can do much better on a 2006. (Mine is a 530i, if that makes any difference. I believe they produce more 525's, so you may have greater negoitiating power.)

    I wasn't able to find any "cost" figures for the 2007 models, but MSRP increased $700 (over the 2006 models) on the 530i, with all the options remaining the same.
  • pk800pk800 Posts: 2
    Hi Carman:
    I am being offered the following deal on 2006 530i with premium package, premium sound, cold weather, rear heated seats: 36 month/12k lease
    MSRP 53170
    Invoice 49110
    Selling price: 51110

    MF0.0016 and residual 61%, acquisition fee: 825
    Drive off 1130 and monthly payment 725
    I would like know your comments on this deal and particularly selling price. :confuse:
  • Hi Car Man I need help. I wish to lease 2007 BMW 530 XI,MSRP is $57,580.00 Lease at $55080.00 36 months
    12,000 miles per year. 8% sales tax. Onondaga county, New York
    I plan to lease through BMW finincial service.
    What should be the money factor, residual value and monthly payment. Can Lease price of $55080.00 can be lowered?
    Please help. JITT
  • JingleJillJingleJill Posts: 120
    Does anyone have any experience with the Owner's Choice option with BMW? I know it is only available in certain states, such as Texas. I went this route with a CPO 5 Series, and I am wondering what my options are if I want to turn the car in early.

    Any information would be appreciated.

    Thanks,

    Stacy
  • Crunched through the numbers.

    MSRP 58415
    Invoice about 54090
    APR 2.8%
    MF .00116667
    Residual 62%
    36 month lease
    12k
    $578 monthly.
    $3250 down.

    From the above figures have concluded the following. Read that I should shoot for $1500 over invoice. Obviously there trying to make 2+ times that. Would go with 0 down and up to 7 more security deposits to lower MF. So the payments will change some but overall wonder if this will be a fair deal.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi alboogie7. If you were to lease a 2005 BMW 525xi through BMW Financial Services right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00160 and 63%, respectively. The numbers for an otherwise identical lease of an '06 530xi should be .00140 and 62%.

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