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BMW 5-Series Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi bmw5seriessf. If by 2.6000 you mean that your car's money factor is .00260, it is way too high. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2006 530xi is only .00175. Make sure that this is the factor that is being used to calculate your car's lease payment. In fact, if you were to make additional security deposits, your car's money factor would be even lower than .00175. BMW Financial Services lowers lessees' money factors by .00007 for every additional security deposit that they make after the first.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello fishbone1. If you were to lease a 2006 BMW 525i through BMW Financial Services right now for 36 months with 15,000 miles per year, its current buy rate lease money factor and residual value should be .00175 and 59%, respectively. The numbers for an otherwise identical lease of an '06 530i should be .00175 and 59%. For the '07 525i they are .00225 and 60%. For the '07 530i they are .00225 and 60%. Lastly, for the '06 330i the numbers are .00225 and 62%.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome mark1234. You can find out what the buy rate lease money factor aka the base money factor for the model that you are interested in is by asking in this discussion. Either myself, or a knowledgeable community member should be able to help you out. BMW Financial Services' current buy rate lease money factor for the 2006 530xi is .00175, while its factor for the '07 530xi is .00225. There absolutely is a supply and demand factor baked into vehicles' money factors. BMW artificially lowers the money factors of vehicles that it needs to stimulate demand for. That is why the factors for '06 5-Series models are lower than the factors for '07 5-Series models. BMW is trying to help dealers unload their remaining 2006 models. BMW's current lease program is scheduled to run through June 30th. It will publish a brans new lease program for the month of July which may not be the same as its current one. The only factors that are negotiable when leasing are your vehicle's selling price and its money factor (you never can go below the base money factor though).

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi lopz. This car's lease program varies depending upon if you want a 2006 or a 2007 model. If you were to lease an '07 BMW 550i through BMW FS right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 70%. The numbers for a 36 month lease of this car should be .00225 and 59%. If you were to lease an '06 550i through BMW FS right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 68%. The numbers for an otherwise identical 36 month lease of this car should be .00200 and 58%.

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  • lk2431lk2431 Posts: 1
    i was quoted a mf of .00230 and residual of 61% on a 2006 525 and/or 530 for 36 months and 12k miles
    can you tell me the mf and residual for this lease
    also are security deposits refundable
    thanks
  • ncbimmer1ncbimmer1 Posts: 14
    I was given a deal for a 07' 530i with
    cold weather
    premium package
    sports package
    automatic
    comfort
    nav
    Satellite
    Black Sapphire
    36 months/15k
    $54420 which is 1000 over invoice
    MF- .0025
    No down
    800 deposit + tax and tags

    Lease price 770.33+23.11tax= 793.44 monthly lease

    Should I do my lease today and order? :blush:
  • golahgolah Posts: 1
    Can you tell me which makes better sense buying or leasing a Bmw 530I.

    The details are msrp - 55,870 - selling or lease price 53,600
    Moneyfactor .0024 (monthly payments $738+tax $61)
    drive off 2160 = 800 first month pmt license of 418 and various fees 942 (aka skim)
    3 years 12K miles

    vs

    Buy:
    Same price as above
    down pay of 30,000 and 4 year finance at 5.49 % of 28,000 resulting in monthly pmts of 651 (interest paid 3,251)
    Plan on keeping car 5 years
  • kyfdxkyfdx Posts: 28,434
    If you plan on keeping the car for five years, you should definitely buy it..

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  • vsaxenavsaxena Posts: 201
    In general it is not good to keep a BMW for five years. Either keep it while it is under warranty (3-4 years) and free maintenance. Or keep it for a long time (> 6 years). In years 3-6 you typically will have to spend on regular and preventive maintenance and possibly some repairs.

    At the end of three years the car is still worth 55-60% of its MSRP so the depreciation in the next few years is not insignificant. The savings in the depreciation costs can often be overwhelmed by the extra repair/maintenance expense.
  • monacobmwmonacobmw Posts: 8
    Hi, I ordered a 2007 BMW 530i on April 08, 2006, and it arrives next week. I did a 36 month/12k lease. The dealer told me (which I have accepted as true) that the money factor has gone up in May compared to April. The dealer assured me however that my money factor from April is locked in.
    I reviewed the prior posts, and I found some inconsistencies that I wanted to clear up.
    First, was the money factor .00225 at this time (April 8, 2006)?
    Second, was the residual "60%" on a 12k lease.
    Finally, I saw some discussion about the $825 vs. $625 lease acquisition fee. I was charged $825, but I want to fight the issue when I go in next week to pick up the car if the extra $200 charge is an add-on. Does anyone know what I can use as "authority" to show that the fee is really $625. Wouldn't the discretion to vary the fee violate some kind of fair lending act law (like on mortgages)?
    Thanks to everyone here for the information on the security deposits... this information is incredibly valuable to the public (my dealer still does not understand the concept).
    -Richard
  • ncbimmer1ncbimmer1 Posts: 14
    The acquisition fee should be $625. Just tell the dealer that you will only be willing to pay the $625. He will probably adjust the amount for you.
  • monacobmwmonacobmw Posts: 8
    What confused me on the lease residual was a post from "Car Man" a few back that stated...
    "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 also saw other posts from others that stated that the residual for 15k miles was 60%.
    For April 2006, was the residual on "12k miles" for the 530i 60% or, say, 62%? I guess I do not need to worry about this one because the dealer needs to follow the "books," but it would be good to know.
    Thanks "NCBimmer" for the message. I just want a document (or something similar) to show to the dealer to verify the $625 acq. fee so they do not give me the runaround and claim that the fee is different for different situations. Don't forget that any dealership is full of salesman that make a living trying to squeeze every penny out of customers. Thanks all.
  • kyfdxkyfdx Posts: 28,434
    The 530xi and the 530i most likely have different residuals...

    The last numbers that I've seen... The '07 530i had the exact same lease numbers for April and May..

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  • eddie33081eddie33081 Posts: 19
    Hello Everyone,

    I just came back from the BMW in Buena Park, CA.

    I wanted to lease a 2006 530i but it seems most dealerships are out of stock. I looked at the 2007 530i's. I want one with the sport and premium package with 15k mi/yr and 36month term.

    The best they offered for a 2007 530i w prem and sport msrp stickered at 54,356 was :
    1. $2000 Drive off, 15k mi, at 865/mo after tax.
    2. $2800 Drive off, 12k mi, at 799/mo after tax.

    I live in los angeles so tax is %8.25. I wanted to get it at around 760 after tax but they would not budge at all unless i gave them a fat down payment. Eventually they let me walk. i am going to look around but was the deal above worth it? Where can I find a better deal at in southern cal.

    I mentioned the money factor but the numbers he gave me were after he had talked behind the counter and said he didnt know what number they were using. He said they were getting them direct from bmw financial. Also the residual was 60% which seems normal from what i've read.

    Any help would be deeply appreciated.

    Thanks

    frank
  • I'm in the market to lease a 2007 525i or 530i. My lease specs are 36 months at 15K. I'm getting conflicting info from several BMW dealer's internet depts. regarding the money factor and residual for these cars at the aforementioned lease term. Can any of you supply any pertinent info. It would be greatly appreciated. Also should I expect to be able to lease these cars at 1% over invoice?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi lk2431. It looks to me as though the money factors that you were quoted are being marked up. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month, 12,000 mile per year lease of a 2006 525i are .00175 and 61%, respectively. The numbers for an otherwise identical lease of a 2006 530i are exactly the same. Make sure to insist that the dealer you are working with use the buy rate money factor to calculate your car's lease payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello ncbimmer1. The selling price that you were quoted for this car, $1,000 over dealer invoice, is very reasonable. The money factor is a little high though. BMW Financial Services' buy rate lease money factor for 2007 5-Series models is currently .00225. Make sure to insist that the dealer you are working with uses the buy rate money factor to calculate your car's lease payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi monacobmw. It is completely legal for dealers to mark vehicles' lease acquisition fees up. This sort of thing happens all the time, especially with BMW dealers. You don't have to prove to the dealer that BMW FS' base acquisition fee is $625. They know that it is and that they are marking it up. If the total price that you are paying for your BMW, including the $200 acquisition fee mark-up, is less than or equal to what you would have to pay elsewhere don't worry about the mark-up too much. It goes without saying though that you should try to get the dealer that you are working with to charge you the base fee if you can.

    Car_man
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  • ghstudioghstudio Posts: 943
    Don't forget when negotiating a lease to ask if they will reduce the money factor if you give(loan) them additional security deposits. Just to be clear, an additional security deposit is NOT an additional up front payment...at the end of your lease you get the additional security deposits back. Don't let the dealer tell you they are the same....additional security deposits are a much better way to get your payments down, if you can afford them. Our Infinity dealer told us that they do accept additional deposits, but they aren't worth anything because they don't lower the MF by much at all. After figuring it out, rather than guessing, we discovered that I effectively make 10% on that extra $5K that I'm going to leave with Infinity due to reduced payments.

    On our current BMW 530 lease, we did about $5K in additional security deposits and lowered our payments significantly. We'll get that $5K back next month when the lease expires.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I can help you out, robray222000. According to the latest information that I have seen, if you were to lease a 2007 BMW 525i 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 .00225 and 60%, respectively. The numbers for the '07 530i should be exactly the same. The aforementioned money factor assumes that you pay a security deposit at lease signing. BMW Financial Services will waive its security deposit requirement in exchange for an increase of .00015 in the money factor that is used to calculate your car's payment. I highly doubt that you will be able to lease an '07 5-Series for 1% over invoice.

    Car_man
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  • eddie33081eddie33081 Posts: 19
    Hey carman,

    My message was on page 32. Any suggestions? how much over invoice on a 2007 bmw can we expect to move down to?

    Thanks

    Frank
  • jtimagesjtimages Posts: 8
    Hope you got the car.You got a much better deal than i was quoted. Let me know if there are any left at this price.
  • eddie33081eddie33081 Posts: 19
    Ok.

    I just got a decent deal I think.

    Here what it is:

    2007 Bmw 530i
    Sports Package
    Premium Package
    Automatic Trans

    MSRP 54,070

    I got them down to 51,300

    2800 Total Drive off
    36 Months
    15,000 Mi/yr

    710/mo + tax (ca 8.25) = 769.00/month tax included

    What you guys think. This is after 3 dealerships and reading up on the boards. Seems decent.

    Frank
  • ncbimmer1ncbimmer1 Posts: 14
    Yep! I took the deal and my car is being shipped. The dealership is Valley AutoMall in Fayettville, North Carolina. :shades:
  • jtimagesjtimages Posts: 8
    Is this a good deal?
    2007 530i
    Premium Package
    MSRP 51,270
    Down to 49,6604
    2300 drive off
    36 mo. 15,000 Miles
    699 mo. + tax
  • lopzlopz Posts: 22
    Thank you, Car_man. I have decided for a Z4 instead and would appreciate if you answered my question posted 5/18 at that forum.
  • drewb1drewb1 Posts: 1
    I am looking to lease a 2007 BMW 530xi with the following equipment:
    Premium Package
    Navigation System
    6-Speed STEPTRONIC Automatic Transmission
    Multi Contour Seats
    Power Rear Sunshade and Manual Rear Side Window Shades
    Heated Front Seats
    Fold Down Rear Seats w/Ski Bag
    Rear Door Mounted Side Airbags

    Other than I know that I need 15,000 miles per year, I'm not sure what you suggest a good deal on this car is. The dealer, of course, is starting with the MSRP of $58,405.

    Your help is greatly appreciated.
  • ncbimmer1ncbimmer1 Posts: 14
    What is the break down of the 2300? Is it tax, tags, and security deposit or downpayment?
  • jtimagesjtimages Posts: 8
    It is $800 security,1st pymnt,$741 1st pymt. ,dealer fee ,and tag.
  • monacobmwmonacobmw Posts: 8
    My dealer is quite confused with the security deposit issue. Can anyone help?
    New 2007 530i--I understand that a customer can make a maximum of 7 payments to reduce the factor by .00007 each.
    What about the first security deposit payment that is needed for a new BMW customer to reduce the rate from .00240 to .00225?
    Does that mean that the customer can use only 6 more payments to reduce the money factor by .00042?
    My dealer is stating that I can only use 4 more payments at .00005 reduction each or .00020 (total).
    This does not make sense... One payment reduces the money factor by .00015, and then the next four only reduce the money factor by .00020 more?
    I called BMW Financing, but they will not talk directly to a customer. My dealer is doing this during the weekend, but does someone have the right information for the security deposit program?
    What should be the "final" money factor if I am a brand new BMW customer and I want to "max out" the payments?
    Best regards,
This discussion has been closed.