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BMW 5-Series Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello bon_bon. A base 2006 BMW 525xi has a spread of a little over $3,800 between its full MSRP and dealer invoice prices. You were quoted a discount of $3,720 on the car that you are considering. This is a very good price. The money factor that you were quoted is right in line with BMW Financial Services' buy rate for this car as well. If you like the car, I personally don't see any reason not to pull the trigger on this deal.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings n1daniel. If you were to lease a 2006 BMW 530i through BMW FS right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 59%, respectively. The numbers for an otherwise identical lease of an '06 525i should be .00160 and 60%. The numbers for an otherwise identical lease of both an '07 530i and an '07 525i should be .00225 and 60%.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, twobox. If you were to lease a 2006 BMW 53xi wagon 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 .00100 and 60%, respectively. The numbers for an otherwise identical lease of a 2007 model should be .00225 and 60%. As you can see, the attractive .00100 money factor that was available on the '06 model last month is still around.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, asteinberg. I'm glad that everything worked out well for you. Thanks for taking the time to stop in and let us all know how everything turned out. Enjoy your new car!

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey marleyflynn. The selling price that you were quoted for this car looks reasonable to me. This model's current buy rate lease money factor is only .00100 through so the dealer is marking your factor up a little bit to add some additional profit to your deal. Overall, I'd say that this is a fair deal, though it would be better if the buy rare money factor was used to calculate your payment.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm glad that you find this site so informative, cybrmike. If you were to lease a 2006 BMW 530xi through BMW Financial Services right now for 24 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 74%, respectively. The numbers for an otherwise identical 36 month lease should be .00140 and 62%.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks for the additional information, yaya1. You were quoted a price of around $1,000 over invoice for this car, which is a reasonable deal. You can always stop by the following discussion to see how much other community members have paid for similar vehicles lately for the sake of comparison: "BMW 5-Series: Prices Paid & Buying Experience". According to my calculations, if you were to lease a 2006 BMW 530xi wagon with an MSRP of $56,770 and a selling price of $53,515 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $628.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks Dan. Your lease payments for these cars will depend upon what their selling prices are. You should be able to get a good idea of how much you should have to pay for them now by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience". Take a look around that area and let me know the approximate selling prices that you want to pay for these cars. With these numbers, I can use BMW's actual lease program to tell you what their lease payments should be.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello junap1. According to the latest information that I have seen, if you were to lease a 2007 BMW 530xi through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 60%, respectively. I am not personally familiar with what the market is like for this car right now, but you should be able to get some good feedback on how much you should pay by visiting the Prices Paid discussion that I posted a link to in my previous post.

    Generally speaking, the fact that you want to order your vehicle might actually give you less bargaining power than if you were to purchase one off of a dealer's lot. This is because dealers are usually more anxious to unload a vehicle that they already have in inventory and are paying floorplan interest on than one than a vehicle that doesn't even exist yet. Furthermore, the sooner you take delivery of your new vehicle, the less likely it is that your deal will fall apart. If you take immediate delivery of a car that a dealer has in stock, you don't have time to change your mind or shop around like you would if you had ordered a vehicle.

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  • n1danieln1daniel Posts: 25
    Hello everybody, I leased my 2006 530i few days ago. I guess Car man was very busy but luckily I was able to obtain residuals and money factors from another forum. This is a great forum and I want to share my numbers although it will not mean much because there are very few to no 2006 5 series left.
    2006 530i with auto,pp,sp,nav.
    MSRP: $54,670 INVOICE: $50,050 SELLING PRICE: $52,050
    1 security deposit for .0014 money factor on 36/15K lease.
    My deal in other words was $2,000 over invoice plus I gave away another $200 on the acquisition fee for a total of $825.
    Payments are 719 including 7.75% tax.
    Normal drive off with no cap cost reduction.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi 4hondo. Your lease payment for this car will depend upon three variables, how long you lease it for, how many miles per year you are allowed to drive it, and its selling price. If you provide me with this information, I would be happy to estimate what this car's lease payment should be using BMW's current lease program.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome socalguy61. BMW FS charges security deposits equivalent to vehicles' monthly payment rounded up to the nearest $50 increment. At lease signing, you will have to pay your car's first month's payment, the aforementioned security deposit, BMW FS' $625 acquisition fee, and any required state taxes or fees.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings William. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    I don't think that offering half way between MSRP and dealer invoice on a 2007 5-Series is a bad deal. According to what I have heard, dealers are not heavily discounting this car yet. They are still focused on unloading any remaining 2006 models. The money factor that you were quoted is not really that far out of line either. BMW FS' current buy rate lease money factor for a lease of a 2007 525xi is .00225 with the payment of a security deposit and .00240 with the deposit waived. The residual that you were quoted is correct, but this is not normally something that consumers really have to worry about because dealers do not have the ability to alter it.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi pk800. In my opinion, $2,000 over invoice is a little high for a leftover 2006 5-Series. If I was in the market for this car, I personally would shoot for more at most $1,000 over. For additional feedback on how much you should pay for this car, make sure to stop by the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

    Furthermore, the money factor that you were quoted for this car is a little high as well. BMW FS' current buy rate lease money factor for a 36 month lease of an '06 530i is .00140 with the payment of a security deposit. Make sure to insist that the buy rate is used to calculate your car's lease payment.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings jturakhia. If you were to lease a 2007 BMW 530xi through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 60%, respectively. Using these numbers, an MSRP of $57,580, and a selling price of $55,080, I estimate that this car's zero down, pre-tax monthly payment should be around $772. It's difficult for me to say whether you will be able to negotiate a lower selling price than the one that you mentioned. It's definitely worth a shot.

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  • bat20001bat20001 Posts: 1
    Hi Car_man;
    From what I read you seem to be the person to ask. I drive a 1998 Town Car, recently I had the pleasure of being a passenger as well as taking a 2007 530xi for a drive and absolutley love this vehicle. I have always owned and have never leased. My nephew who always leases says he wants to drive a new car every few years, my son on the other hand says I will never own anything if I lease. I checked to see what my payments would be with $11,000.00 down and they would still be around $832.00 per month! what would you recommend to someone who has never leased? I drive my owm vehicle about 10,000 miles a year because I have a company car, but I cannot use it when not working, please help it you can
  • poet715poet715 Posts: 7
    I was quoted the following, 15,000 miles and 36 month
    2006 525i Titanium silver / gray leather...automatic, premium pkg. $46470 msrp $44710 your price

    608 + tax for 36 months (659 total) with just 1963 to start (acquisition fee, registration and first payment)

    2007 525i Black on black leather....automatic and premium pkg. $47470 msrp $46270 your price

    677 + tax (733 total) 2035 drive off
    Is that a good price??
  • It is going to be impossible to not to get them....also do they cover the scraches on the bumper too?
    Does anyone have any comment?
  • vsaxenavsaxena Posts: 201
    BMWFS posts their guidelines on normal wear and tear on the web. Typically anything less than 2" is fine.
  • ejvejv Posts: 4
    Hi everyone! I just have a quick question. I am looking at leasing a 2007 525Xi, 10,000 miles a year for 36 months. The MSRP is $49,795. I have a trade-in worth around $4000, (which is fully pain off). Is is possible to have a monthly paymet around $550???, and what should be a fair Cap value for the car?

    Any help would be great,
    Thanks
  • Here are the details on a recent quote:

    BMW 530Xi, 36 Months, 12k Miles
    MSRP: $55,270
    Invoice: $51,490
    Sale Price: $53,490
    Residual: $34,267 (62.0%)
    Money Factor: 2.6000 ????
    Location: Bay Area
    No Past Lease Experience

    Called me and told me I need 4,000 Security + 2,500 down, or BMWFS says no deal, does that make sense?

    Also can you explain "Money Factor" and why mine is off by a factor of 1000 to all the other posts?

    Thanks!!! :confuse:
  • so, lets look at this for example (I;m in the market)
    $52,000 buy price
    .00225 money factor
    $18,000 trade in on my Audi (i own outright)
    $29640 residual

    Am I looking at $340ish on a 36mo lease?
  • bigmojobigmojo Posts: 3
    Just talked to the dealer and he stated that as of May 1 the following will be in place for a 36 month lease with 15K miles per year on a 550i.

    '06
    Residual will go from 59% to 58%
    MF will go from .00230 to .00255

    '07
    Residual will go from 60% to 59%
    MF will stay at .0028

    Is this in line with what others are getting or is this guy just trying to get me to buy this weekend?

    Thanks
  • fishbone1fishbone1 Posts: 5
    HI Car_man,

    I desparately need some help!

    Could you provide me with the money factor and residual values for the 5 series, as well as the 3 series for May?

    I am not sure if I want the 5 or the 3 series at this time.

    Could you give me a break down?

    '06 525i; '06 5301
    '07 525i; '07 530i
    '06 330i

    Please provide the #'s for a 24 and 36 months lease. Thank you so much for your help!!!
  • mark1234mark1234 Posts: 7
    Hello,
    I am new to leasing but I have been following these posts for a while now. I am looking to lease a 530 xi in the next few months and I do have a few questions for the group:

    1) Every post encourages getting the "base money factor", but how can I be sure that's what I'm getting?, i.e. is there any independent verification?

    2)The money factor for the 2006 (~.140) is much less than what I have seen for 2007 (~.225). Do those change as the months go on, i.e. is it based on interest rates alone, is is there some supply and demand factor thrown in?

    3)Exactly what is negototiable and what is set in stone during the lease process? My understanding is that residual is set by someone else, but what aspects are available for "discussion" with the dealer?

    Am looking to lease probably some time in the summer.
    Thanks,

    mark1234
  • lopzlopz Posts: 22
    Can someone tell me the money factor and residual for bmw 550i on a 24 and 36 month, 15k miles/yr lease?
  • vsaxenavsaxena Posts: 201
    Courtsey Tarry at leasecompare.com via bimmerfest
    24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
    36 mo/15k mi – Residual Value 59% of MSRP – .00225 Base Money Factor Rate
    48 mo/15k mi – Residual Value 42% of MSRP – .00310 Base Money Factor Rate
    60 mo/15k mi – Residual Value 33% of MSRP – .00310 Base Money Factor Rate
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi bat20001. BMW's actually are often more attractive to lease than they are to finance or pay cash for. This is because BMW often provides lease support but no other alternative incentive like cash or special financing rates on models. This is one of the reasons why nearly half of the consumers who lease certain BMW models lease. Having said this, BMW's lease program on the 2007 5-Series is not very attractive yet. Its current buy rate lease money factor for them, .00225, is equivalent to an interest rate of around 5.4%.

    Since you are new to the world of leasing, may want to check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Take a look at them and let me know if you have any specific questions.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello poet715. I am not personally all that familiar with what the market is like for the '06 5-Series right now, so you will have to stop by the following discussion for feedback on the selling price that you were quoted: "BMW 5-Series: Prices Paid & Buying Experience". I can tell you if the payment that you were quoted looks right though. According to my calculations, if you were to lease a 2006 BMW 525i with an MSRP of $44,710 and a selling price of $46,470 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $607. As you can see, the lease payment that you were quoted is quite a bit higher than the one that I came up with. I suspect that the dealer that you are working with is marking up BMW FS' buy rate lease money factor for this car to add additional hidden back-end profit to your deal. BMW dealers are notorious for marking up vehicles' money factors, but you can usually avoid this by telling them that you know what your car's buy rate money factor is and that you want them to use it to calculate your car's lease payment. BMW FS' current buy rate lease money factor for a 36 month lease of an '06 525i is .00175.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello ejv. Your lease payment for this car will depend upon the selling price that you are able to negotiate. Stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience". If you want to trade your current vehicle in, you are better off having the dealer that you are working with cut you a check for it rather than using the proceeds as a capitalized cost reduction for your lease. If your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears.

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