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BMW 5-Series Lease Questions

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  • 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: 38,518
    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%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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!

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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: 38,518
    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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.

    Car_man
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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.
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