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BMW 5-Series Lease Questions



  • Well, if they quoted him that, with one security deposit the rate could be 0.0009. Why even include that in the "quote" if they're not planning on charging it. With max security deposits, that could be dropped to 0.00041, even with a max dealer bump of 0.0004. He should negotiate from the buy rate anyway, assuming he/she has tier credit. Or, have them drop the cap cost to make up for the bump.
  • Oneon3putts,
    Thanks for getting back to me. Can you please send me your spreadsheet to
    When I gave the dealer your quote and he asked about the markup number, I said I guess that is the profit and he told me " I am not doing business with you" and hung up the phone on me. This from a guy who has been calling me for 3 months with a great "deal". Everytime he calls, he screws up the numbers and is never prepared. Luckily, there are about 4 other dealers in about 10 square miles where I live. I have another deal on the table, and if I can move them down another 500-1000 off of the msrp, I should be in decent shape.

  • New to leasing and to this forum, but the information has been very helpful. I'm currently looking at a deal for a 2007 530i.

    MSRP = $53,920
    Sell Price = $51,764
    Residual = 60% ($32,352)
    Lease Term = 36 months / 15k miles per year
    Money Factor = .0005
    Sales Tax = 6.75%
    Acquisition Fee = $625
    Security Deposit = $700

    Here is the catch. I'm being told that in Illinois sales tax must be paid on the full value of the car. As a result, the dealer is indicating that $3,497 in tax has to be included. Therefore Adjusted Cap is assumed to be Sell Price + tax + Acq. Fee or a total of $55,944.

    This results in total monthly payment of $699. Total of $1,542 up front (First month, security deposit and $143 for title/tags)

    Can anyone give me their thoughts on this deal and verify that is how sales tax works in Illinois. Thanks.
  • kyfdxkyfdx Posts: 48,796
    Unfortunately, the dealer is correct... Illinois taxes the full selling price on a lease.

    $100/mo. in taxes sort of sours the deal, huh?


    Prices Paid, Lease Questions, SUVs

  • 2007 BMW 530i
    With the Cold Weather Pkg, and Premium Package
    MSRP $52,020.00
    $535/mo including tax for 36 months (10,000 miles per year.)

    $535 First month's payment
    $2,500 Down payment
    $500 Security deposit
    $3535.38 Cash due at signing

    Current sales Tax is 6.75%

    Thanks in advance!
  • This is really not enough information. However, to derive at the $535 number, here's what I got making A LOT of assumptions:

    MSRP $52,020.00
    Cap Cost $49,337.00
    Residual % 63.00%
    Residual $ $32,772.60
    Lease Term 36
    Monthly Depreciation $460.12
    Net Money Factor 0.0005
    Monthly Interest $41.05
    Base Payment $501.18
    Tax $33.83
    Monthly Payment $535.01
    Security Deposit $550.00

    You're making a $2,500 down payment to reduce the cap. Assuming they added the inception of $625 to your cap cost...You're basically only getting around $800 off of MSRP. I don't know if that's a good deal or not where you live. But I would put the down payment towards the security deposits and buy down your MF. Your SD are refundable at the end of your lease. Again, a lot of these numbers here are guesses because the exact options are not known...
  • Would this help?

    MSRP $52,020.00
    Lease Term: 36 months @ 10,000 miles per year
    Mileage: 120
    Model Number: 0750
    Engine: 3.0L I6
    Transmission: Automatic

    ZCW:COLD WEATHER PKG -inc: heated front seats, headlight cleaning system, heated steering wheel
    ZPP:PREMIUM PKG -inc: Dakota leather seat upholstery, Dakota leather door trim, universal garage door opener, auto-dimming rearview mirror (N/A w/KB__ Leatherette Seat Upholstery)

    $2500 down payment
    $168.75 (tax on the down payment - local county sales tax @ 6.75%)
    $535 first payment
    $75.00 license/title fees
    $550 refundable security deposit (waived)

    Total Due at signing: $3278.75

    Thank you so much..
  • Okay, here's the new calculation...You're getting around $1,210 off of MSRP. I'm adding $400 for the MACO and $625 for the inception costs into the cap. If I were you, I would put $2,400 towards 4 security deposits to buy down the MF to 0.00022. With that in mind and all else remaining the same the new calculation:

    MSRP $52,020.00
    Cap Cost $51,836.00
    Residual % 63.00%
    Residual $ $32,772.60
    Lease Term 36
    Monthly Depreciation $529.54
    Net Money Factor 0.00022
    Monthly Interest $18.61
    Base Payment $548.15
    Tax $37.00
    Monthly Payment $585.15
    Security Deposit $600.00
    Total Refundable Security Deposit $2,400.00

    Your monthly would be higher, but you will get the $2,400 SD returned when your lease ends. I wouldn't put any down payment for the lease! Put that money towards the security deposits. Think of it as a investment. By putting $2,400 as security deposits, your TOTAL interest for 3 years will be $807.85. But by putting the $2,500 as down payment, your paying $1,477.94 in interest for the life of the lease and you do not get that money back. Remember, if you have the cash, put down the max 7, or 6 in this case because the lowest MF you could buy down to is 0.00008 (BMWFS min is 0.00005). If you could do 6 security deposits, here are you new calculations:

    MSRP $52,020.00
    Cap Cost $51,836.00
    Residual % 63.00%
    Residual $ $32,772.60
    Lease Term 36
    Monthly Depreciation $529.54
    Net Money Factor 0.00008
    Monthly Interest $6.77
    Base Payment $536.31
    Tax $36.20
    Monthly Payment $572.51
    Security Deposit $600.00

    Total Security Deposit $3,600.00

    By doing this, your monthly interest will be only $6.77 and savings of $1,234.08 in interest payments over the life of your lease. This is all assuming that you're getting the buy rate of 0.0005 from BMWFS. Good luck!
  • First of all thanks to all of you for your responses. Classic of Richardson is bringing by a 2007 530i to my house this Saturday for an all day test drive. I am considering leasing a 530i with the Premium Package, Sport Package, Automatic Transmission, and Navigation System (MSRP $55,970) for 36 months at 15,000 miles per year.

    According to my spreadsheet calculations in order to get a payment of $699/month, if they agree to a MF of .0005 instead of .0009 that they have quoted and drop the quoted acquisition fee from $825 to $650, I will need them to sell the car for $2,970 off of MSRP or give me some full or partial tax credits. So far (with no negotiation on my part) they have only offered $1,470 off of MSRP and my salesman said that no tax credits were currently available, although he said it is possible that they may have some in December.

    Do you think I can get them to agree to $2,970 off of MSRP that is about $1,285 above invoice or find some tax credits. If I can get the car for less than $700/month with only the first month and a refundable security deposit of $750 due at signing, it’s a done deal.

    Thanks in advance for your help.
  • The only way to truly know the buy price is to find out what the car is going for in your area. Sounds like you're talking to them in terms of payment/month instead of getting the best deal possible. Again, I don't know how many dealers are in your area, but if they are the only game in town then you're at their mercy. Luckily for me, there are 22 dealers in the SoCal area. Again, it all depends on where you live and how many dealers are in your area so you can get the best possible deal for yourself. With $2,970 off of MSRP, your talking about $1,295 profit for the car not including MACO. You're also giving them $25 on the inception...Plus you're giving them $1,261.80 in total interest for the 0.0004 markup. Total profit not including MACO (some people count this as profit too...) is $2,606.80.
  • tdbrphtdbrph Posts: 30
    I think you can do much better. I just inked a deal with the following details on a 07 530i for 10K/24 months.

    MSRP = 58140
    Cold Weather
    Comfort Access
    Logic 7
    Sat Radio

    Cap cost $54279 ( Invoice price $53360 + $625 Acquisition )
    MF - 0.00008 ( with 6 extra security deposits )
    Residual - 73%
    Monthly Payment - 538.78

    Total Cash down at signing 4388.78 including ( 7 Security deposits = 3850 + First month payment ) Of which $3850 is refunded at lease end. Never put money down on cap cost.

    I chose the 10k lease because there is no sense paying for mileage up front. Up to four month prior to lease end you can buy more miles through BMWFS for only 0.16 per mile opposed to the 0.20 per mile at lease end. When you buy up front you are still paying 0.15 per mile. That 1% increase in residual on a 58k car is significant.

    I didn't have to haggle on anything as it was pretty apparent that I had done my homework from my initial faxed letter to the dealer.

    Hope this helps

  • So you got the car below invoice? The invoice on that car is $53,720.00 excluding MACO. The MY E60 pricing can be found at you doing ED?
  • tdbrphtdbrph Posts: 30
    I calculate it to be invoice

    Base 530i = 43880
    sport = 2550
    prem = 1640
    CWP = 685
    Nav = 1640
    CA = 910
    Sat Rad = 540
    Log 7 = 1090
    Destination = 695

    = $53630

  • From my vehicle inquiry report I got nav for:

    609 Navigation $1,730.00 $1,900.00

    I guess it was a typo for your original post. You put $53,360. So you didn't get charged for MACO either?
  • tdbrphtdbrph Posts: 30
    oops I did make a typo sorry :( I saw no mention of MACO on any of the documents I typed right off the lease slip. I assume they made some profit or they wouldn't have done the deal. Do we really know what they truly pay for the car? I priced several cars from base 530i to loaded up and it seems with the current incentives particularly residual you can get a better deal on a well optioned car. Please ask any other question and I will try to answer them to best of my ability.

  • sm05sm05 Posts: 22
    Hi, Is it true that the SD is not returned in case the car is stolen or something nasty like that...
  • sm05sm05 Posts: 22
    MSRP: $60,415, auto,premium, cold weather, sport pkg, omfort access, navigation system, head-up display, hi-d, satellite radio
    36 months $689,0 down inception fees only, tax upfront, 10k /yr. Just got this from dealer on the Web.

    Yet to test drive a 530xi. Is it the same fun as a 530i with sports to drive.?
  • Here's the price i got from the options you gave:

    530i Base $43,880.00 $47,500.00
    205 Steptronic Auto Trans $1,210.00 $1,275.00
    ZSP Sport Package $2,550.00 $2,800.00
    ZPP Premium Package $1,640.00 $1,800.00
    609 Navigation $1,730.00 $1,900.00
    653 HD Radio $455.00 $500.00
    322 Comfort Access $910.00 $1,000.00
    610 HUD $910.00 $1,000.00
    655 SIRIUS $540.00 $595.00
    ZCP Cold Weather $685.00 $750.00
    Destination Charge $695.00 $695.00
    Totals $55,205.00 $59,815.00

    Am I missing something? But just with those options the number they gave you sucks! RUN! Here you go:

    MSRP $59,815.00
    Cap Cost $60,730.00
    Residual % 63.00%
    Residual $ $37,683.45
    Lease Term 36
    Monthly Depreciation $640.18
    Net Money Factor 0.0005
    Monthly Interest $49.21
    Base Payment $689.39

    That's not including TAX since you're paying it upfront. I added MACO ($400) and inception of $625 into the cap. Looks like they're only taking off $100 off of MSRP. You can do much better! Good luck!
  • oneon3putts,
    Thank you so much! You are awesome!
    I sent numbers that you gave it to me and my dealer will do this. Is it good deal now?
    six(6) total SD - monthly payment = $572.52 include tax

    Your total amount due at start is -

    6 x 600 security deposits = $3600
    First Payment = $572.52
    Plates fees = $75.00

    $4247.52 total due (of which $3600 is refundable)
  • At that price, you're getting around $1,210 off of MSRP. In another words, the dealer is making around $2,700 excluding the MACO and a standard inception of $625. You are getting the lowest MF at 0.00008, so that is good. Is it a good deal? I don't know if I can answer that because I don't know what the market is for your area. See, in LA I think a profit of $800 to $1200 are average. So, you might have to do some homework to see if the buy price is a good price. If you can knock another $800 off of the buy price your new calc would be:

    MSRP $52,020.00
    Cap Cost $51,035.00
    Residual % 63.00%
    Residual $ $32,772.60
    Lease Term 36
    Monthly Depreciation $507.29
    Net Money Factor 0.00008
    Monthly Interest $6.70
    Base Payment $513.99
    Tax $34.69
    Monthly Payment $548.69

    Security Deposit $550.00
    Total Security Deposit $3,300.00

    See that'll drop your payment below $550 and lower your security deposit. If I were you, I would start at another $1,200 off and see where you can go from there. It would hurt...
  • sm05sm05 Posts: 22
    Thanks a lot..........
    He gave me an Inv Price of $56,185 and says I am missing an option. I will straighten it out with him.

    He thinks he can give it to me close to Invoice !!!!

    Just curious - I use the MSRP $60,415 and Invoice Price 56,185 what will be the Base Payment ? Can you tell me how to arrive at the montly depr and int. I don't wanna be bothering you :-)
  • (Capitalized Cost – Residual Value) / Term = Monthly Depreciation
    (Capitalized Cost + Residual Value) X Money Factor = Monthly Interest
    Monthly Depreciation + Monthly Interest = Base Monthly Payment
  • sm05sm05 Posts: 22
    Oh, I saw your calculation that you used 0.0005. The MF for 530xi for Nov is 0.0015 Did this change?
  • sm05sm05 Posts: 22
    Thank you very much... you are superb !!! RUN ALL DEALERS...:)
  • Ahh, I see you have the 530xi instead of the 530i. With all of the options here are the calc:

    Option Description Invoice MSRP
    530i Base xi $45,905.00 $49,700.00
    205 Steptronic Auto Trans $1,210.00 $1,275.00
    ZSP Sport Package $2,550.00 $2,800.00
    ZPP Premium Package $1,640.00 $1,800.00
    609 Navigation $1,730.00 $1,900.00
    653 HD Radio $455.00 $500.00
    322 Comfort Access $910.00 $1,000.00
    610 HUD $910.00 $1,000.00
    655 SIRIUS $540.00 $595.00
    ZCP Cold Weather $685.00 $750.00
    Destination Charge $695.00 $695.00
    Totals $57,230.00 $62,015.00

    MSRP $62,015.00
    Cap Cost $59,440.00
    Residual % 63.00%
    Residual $ $39,069.45
    Lease Term 36
    Monthly Depreciation $565.85
    Net Money Factor 0.00125
    Monthly Interest $123.14
    Base Payment $688.99

    In the cap cost:

    $400 MACO
    $625 Inception
    $1,185 over invoice

    That's not bad...Sorry for my oversight in the original post...
  • sm05sm05 Posts: 22
    The dealer just sent me this -

    No problem - here goes
    MSRP $60415
    invoice plus prep $56185
    Acq fee $625
    Resid value $38061
    MF .00125 (rate 3%)
    Title, MV and lux tax $670.58
    Doc fee $249
    Security Deposit $700
    Disp fee $350
    monthly payment $689 not including State tax

    Any hidden charges in there ?

    How did you arrive at Cap Cost = $59,440.00 ???
  • navboynavboy Posts: 32
    I would appreciate it if you would email a copy of the spreadsheet. my email is interiordesignla (at) aol (dot) com. Thanks, it is much appreciated.

  • baudobaudo Posts: 3

    hi, are you in los angeles? if so can you recommend a dealership?

    thank you
  • What are doc fees? Charged by the state? Disposition fee is charged when the lease ends. There's an lux tax in your state? Umm...
  • I think Center BMW is pretty good. Beverly Hills BMW gets good reviews too...And also Bob Smith in Calabasas...
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