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BMW 5-Series Lease Questions



  • 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 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.
    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 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

    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?

  • cpanagcpanag Posts: 8
    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,
  • 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.

    Smart Shopper / Prices Paid Forums
  • 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.

    Smart Shopper / Prices Paid Forums
  • 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.

    Smart Shopper / Prices Paid Forums
  • 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.

    Smart Shopper / Prices Paid Forums
This discussion has been closed.