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BMW 5-Series Lease Questions

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  • HI alzadol. I am not personally all that familiar with what the market is like for the 2005 BMW 545i right now, but you may be able to get an idea of how much you should pay for this car by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience". Once you have an idea of what you should pay for this car, feel free to stop back and I will be happy to estimate what your lease payment should be like on it for you.

    Car_man
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  • Hey kevhollywood. What your dealer said is sort of true, but not exactly. BMW Financial Services will waive its lease security deposit requirement for returning lessees. As a non-returning lessee, you have to pay a security deposit equivalent to your vehicle's monthly payment rounded up to the nearest $50 to get the .00175 factor. If you want your car's deposit waived, its money factor will be .00015 higher.

    Car_man
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  • Thanks for the info Car_man. One more question for you (well, actually, 2). Do you know the respective residual rates on a 2006 530i for a 36 month lease at either 18K miles/year or 20K miles/year?

    Thanks.
  • My 94 325i has seen better days and on its way to junkyard. I have been looking for a 'deal' and open to either buying or leasing any 00 and up used 5 series.
    I just talk to a guy who is trying to get out of his 03 525i lease. Apparently, he put 7K down to keep the monthly to $399. The car is a base model, 5 speed, Titanium Silver and has 175xx miles. The lease allows only 10k/yr and expires in Jan'07.
    Here is the dilemma: I like the fact that both lease payment and mileage are really low and the car will be under warranty throughout the duration if I were to assume his lease. Bad part: He supposedly got hit on the left rear door and BMW put a brand new door for him. I'm worried if there had been any structural damage. There is a pair of very very tiny (but visible) dings from other peoples' doors on the front passenger door. It is only a base model.

    The payoff on the car, right now, is $288xxx - which I think, is over the real market value especially considering the accident showing up in Carfax report.

    Initially, I thought it was a great opportunity - I didn't have to put any down payment (other than $450 to BMW leasing to transfer).. but now I'm not too sure.

    Any help/input is highly appreciated. Thank you in advance.
  • kyfdxkyfdx Posts: 27,892
    That is a pretty good deal, if you are just going to lease the car, and then turn it in at the end of the term.... Assuming you can stay under the mileage requirements...

    But, if the payoff is almost $29K right now, that is not a car that you want to purchase.... even after 15 more payments, the payoff will be way more than it is worth...

    So, if you want to drive it until the end of lease, go for it... But, if this is a car you want to own long term, the price is too high..

    regards,
    kyfdx
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  • Kyfdx, Thank you for your advice. I think I misspoke when I said the pay off is about $29k..its actually $24858 as of 10/13/05. Is it still pretty bad of deal to buy it (I'm actually partial to leasing)?
    Also, BMW said they cant do anything to renegotiate the mileage/yr term..but they have something called 'mid term mileage negotiation'. One must have at least 9 more payments remaining to participate in that program..it reduces per mile cost to $ 0.16 from $0.20.
    What is your take on that..? Thank you.
  • kyfdxkyfdx Posts: 27,892
    Well... $4000 makes a big difference...

    How many more miles are you going to need? I am familiar with the mid-term mileage adjustment... It isn't a bad deal, as long as you don't buy any more miles than you will use....

    At that price, I'd take a chance on it.... start out leasing... take it to the end of the term and see what happens.... It may be a decent buy at that time..

    The seller should be able to tell you the residual value at end of lease.. I'd be very interested in knowing what that is..

    regards,
    kyfdx
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  • You're welcome kevhollywood. 15,000 miles per year is the highest mileage allowance that BMW Financial Services publishes residual values for. If you need to drive more than that you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.

    Car_man
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  • drtraveldrtravel Posts: 395
    Need to know the residual and money factor for 12K and 15K per year - 3 years.

    Thank you
  • dar63dar63 Posts: 3
    Good Morning Car_man,

    I am in the middle of negotiating my 4th BMW-and need some help determining the best deal. This may get a little long-but would appreciate your advice.

    I have dealt with the same RI dealership for the prior 3, and have returned for the 4th time. I currently have a 42 month lease, 12,000 mile for a 2002 525it-which I pay $650 a month (including a 7% tax) is coming to end. The car is in great shape-however, it has 55,500 miles-and exceeds my mileage allotment. The car has a 23,935 residual value-and the salesman is telling me that the car can not be re-certified by BMW (a fact that I checked with BMW-and is correct) and disqualifies me from a program by which BMW will payoff the last 3 payments of the car. So he is going to give me a deal of a life time-take me out of my station wagon-which he claims has no resale value for BMW dealership and put me into a brand new 2006 525ix Sedan -12,000 miles. One more note-I have 5 more payments of $650

    Sales Price $48,720
    Fees 1,910 (Doc fee $75, Gov't fees $195, 1st payment $777 and acq fee $800)
    downpayment 2,500
    MF .002
    residual 62% 30,206
    Trade #1 20,000
    Payoff 23,124
    Payment 777 (including 7% RI Tax)

    He has financed my fees-but I would like to pay cash for me fees. Does this all sound reasonable?? In addition, I went in asking for a 530xi--was told there is very little difference between a 525xi and 530xi-is that true??

    What facts would I need to know for negotiating a 530xi (i.e. MF, residual)-
  • bdr127bdr127 Posts: 950
    In addition, I went in asking for a 530xi--was told there is very little difference between a 525xi and 530xi-is that true??

    The biggest difference is the engine.... Same displacement, but 525 makes 215hp, 530 makes 255. Other differences: 530 comes standard with xenons, 18" wheels, and lumbar support. You need to upgrade to get these things on the 525. Of course, the starting base price is a difference for $4300, too.
  • Hi,

    I apologize in advance for this being a bit long winded...

    I'm currently looking at leasing a new 530xi. MSRP on the vehicle is $54,940, and the dealer has quoted me a sales price of $53,300 after his so called "good customer discount". I've purchased used from this dealer and have referred 3 new customers to my sales person.

    After reading several of these posts it seems I can negotiate a couple of things including the money factor...my current quoted rate is .00150, I have a tax of 4.9% and an acq. fee of $725. Residual is quoted at .62. Money down including first payment is 1476.10 and my monthly payment including tax would be $726.10.

    I was ready to "pull the trigger" until I found this forum. This number seems a bit high after reading some of the deals folks are getting.

    What is the next step for me to take in negotiating with the dealer? Is it best for me to start with negotiating the sales price? Seems to me that the invoice price with my options should be somewhere around $52,000.

    Any help is appreciated!
  • tcoztcoz Posts: 16
    I'm assuming you're talking about a 36 mo lease. New BMWFS buy-in rate for October on that car is .00140 so the dealer is marking it up just a little, but still fair. 36 month residual, however is 60% so if you're getting 62%, you're in effect getting another $1100 off the car on your lease. The discount at $1600 off isn't any great shakes, but if you add the additional $1100 from the better residual, it's not too bad.

    All in all, a pretty good deal, although if you have any thoughts of buying the car at lease end, you'll be giving that extra $1100 back to them. Also, the dealer "buy rate" on the acq. fee is $625 and many dealers charge $825, so $725 is ok.

    You might be able to pick a few hundred more up, but it might not be worth the effort either.

    If you "pull the trigger" be sure they install the new software update which is now out. It takes care of a couple of the issues.

    Good luck
  • Here goes, I have been looking for the same car and doing some research but have not pulled the trigger. 36 month lease MF .0014 , residual %63 for 10000miles. Your target should be $1000 over invoice but $1500 would still be fair ,IMO. This should be the deal you present to the dealerships
    Msrp $ 54940 Purchase $51,380 around $1000 over invoice
    lease payment per month including tax $614.88
    Down 0$ , Deposit $615 ... Due at signing acq fee $625 , first months payment plus deposit.
    or
    msrp $54940 purchase $51,880 around $1500 over invoice
    lease payment per month including tax $630.19
    Down 0$ , Deposit $630 ... Due at signing acq fee $625 , first months payment plus deposit.

    that deal 0f $726 is not even close
    you can also stack deposits to lower the MF, you can lower your payment by around $25 per month and you get the extra depoists back at the end of the lease.
  • Thanks all for the info... breterst, what do you mean by stacking the deposits?
  • Stacking deposits is BMW holding extra monthly payments during your lease , it's then refunded at the end of the lease minus extra miles and excess wear and tear . In return for BMW holding your money (reduce BMW's risk) you get a reduction in the MF by .00005 per deposit. So if you leave 5 stacked deposits the MF goes from .0014 to .00115 or % rate from 3.36 to 2.76.
  • bdr127bdr127 Posts: 950
    36 month residual, however is 60% so if you're getting 62%, you're in effect getting another $1100 off the car on your lease.

    Residuals are set by the financial institution and are not negotiable.... The 2% difference is most likely 12k miles/year as opposed to the 60% for 15k.
  • tcoztcoz Posts: 16
    You're right...my mistake.
  • I'm confused... Are you getting 6% off of the MSRP then a the lease is factored at .0014?
    Here is my quote on a pre-October 1 car on the lot: 53,120 MSRP + Destination charge 695 = 53,815. Plus
    1 month security of $800
    Tax title handiling 140
    Paperwork 150
    1st months rent X

    24 mo @ 15,000 miles 823 + 7% tax 69% residual
    30 mo @ 15,000 750 + 7% tax 65% residual
    36 mo @ 15000 721 + 7% tax 60% residual
  • Follow up to 50... should the dealer have flex in that price?
  • milkenmilken Posts: 10
    Is the excess mileage charge negotiable before the lease is written? I.e., if the stated overage is $0.25 per mile, can you negotiate down? Does the dealership set the excess mileage or the financial institution?
  • dar63dar63 Posts: 3
    Thanks for your respone-how does the deal on the 525ix sound???
  • drtraveldrtravel Posts: 395
    For the 525i

    MSRP is 44,470
    Cap Cost is 41,950 (MSRP - 2500 down - 645 discount + 625 Acq Fee)
    Money Factor is 0.0016
    Residual is 63% (36 mo/30K)
    Payment is $499

    For the 530i

    MSRP is 51,245
    Cap Cost is 49,545 (MSRP - 2500 down + 175 premium + 625 Acq Fee)
    Money Factor is 0.0014
    Residual is 63% (36 mo/30K)
    Payment is $594
  • dbcafydbcafy Posts: 8
    Hi,

    Has anyone leased a 2002 / 2003 BMW 540 with the Sports Package. What
    was the residual value of the car when you return the car?

    Thanks,
    Dave
  • cpanagcpanag Posts: 8
    All:
    Bit long winded but first post:

    What's the general feeling on lease transfers? Clearly there are a couple major sites that specialize in facilitating this service. I am curious as to Car Man's and everyone else's opinion on this. Specifically, there is a 2005 545i offered with 4200 current miles and just under 32k left on the lease, which expires in early April 2008. Original monthly payment was 909/month for lessee and he is offering 859 a month now. Lease transfer fee is $450.

    So again, what does everyone think of the concept in general? Then, what about this specific car? Worth pursuing or better off going to the dealer directly? From some of the reading I've done here almost seems like a ripoff. Any other info you need?

    More specs on car:
    Like New Condition 545i V8 with Sport Package. Silver Gray Metallic (car pictured). Auto Trans, Premium Logic7 Sound with Sirius Satellite Radio, Active Stearing, Active Suspension, Cold Weather Package, Split Folding Rear Seats.
  • Hi folks,
    I am new to this forum, but I love what I read here. So many knowledgable and nice people around here.
    I am in the market for a new 06' 530i with sound/nav in Nor-California.
    Here are my questions:
    1. Is $1000 over invioce a good deal or I can do better? What is the invoice for above config?
    2. 0 down or not?
    3. What is the best money factor?
    4. I am the 1st time lease customer, do you need to call/cut a deal with BMWFS or bank before you go to the BMW dealer? or it all can be done in the dealer?
    5. What are the other normal amount for other fees?
    6. Please share any other advice you want me to know.

    Thanks in advance,
    Harry
  • Greetings drtravel. According to the latest information that I have seen, if you were to lease a 2006 BMW 530i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 60%, respectively. This car's 12,000 miles per year residual value is 2% higher.

    Car_man
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  • Hi dar63. Right off the bat I can tell you that this is not the "deal of a liftetime" because it appears as though the dealer that you are working with is marking-up BMW Financial Services' buy rate lease money factor for this car to add additional back-end profit to your deal. BMW FS' current buy rate money factor for leases of the 2006 525ix Sedan is .00160 for up to 42 months. I would be happy to give you my opinion on this deal if you tell me what this car's full MSRP (with the destination charge added in) is. This is an important number because it enables me to see how much of a discount you are being given and will allow me to calculate a lease payment on the car that you are interested in using BMW Financial Services' actual lease program.

    Car_man
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  • Hello rockymtn_e36. Vehicles' lease money factors are only negotiable in that it is important for you as a consumer to make sure that the dealer is not marking-up the buy rate money factor for your vehicle. However, dealers are not allowed to give lease vehicles with lower money factors than the buy rates that banks dictate. The money factor that you were quoted to lease the 2006 530xi that you are interested in is right in line with BMW Financial Services' buy rate money factor for it with a waived security deposit. As a result, your car's factor won't get any lower than that. One aspect of your deal that you should try to negotiate is the acquisition fee that you were quoted. BMW FS' current base lease acquisition fee is only $625. I just calculated a lease payment on the car that you are interested in using the prices that you mentioned in your post, an MSRP of $54,940 and a selling price of $53,300 and came up with a 36 month, 12,000 miles per year, zero down, pre-tax monthly payment of around $666. If you are able to negotiate a lower selling price than this, your car's monthly payment would drop.

    Car_man
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  • Welcome Harry. I'm glad that you enjoy this discussion so much. $1,000 over invoice sounds like a reasonable selling price for a 2006 BMW 530i to me, but for additional feedback on the price that you were quoted you should stop by the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

    As far as making a down payment when leasing goes, I always advise consumers against making any sort of capitalized cost reduction 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 insurance company pays off the bank that you were leasing it through and 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 530i would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    BMW Financial Services' current buy rate lease money factor for leases of the 2006 530i up to 42 months in length is .00140 with the payment of a security deposit. BMW FS does not deal directly with the general public, so you will have to go through a BMW dealer to lease your car. At lease signing, consumers who lease BMWs normally have to pay their vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, BMW FS' acquisition fee of $625, and any required state taxes or fees.

    Car_man
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