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BMW 5-Series Lease Questions



  • Thanks. I'm going to call him now and see what he says. I don't know why I so nervous....
  • Car_man,
    Can you help with my lease questions in message 1101?
    Thank you!
  • lamplamp Posts: 20
    I applied the BMW lease credit application online and got approved, then the BMW center I selected (in los angeles) called and i told'em i got an offer from another dealer near by see if he can beat it, now he offers me $610 before tax per month ($660 after 8.25% CA tax)
    36mo lease, 15k miles per year, titanium gray, premium pkg, auto, park distance control (msrp 51500), $1921 due at signing (1st month payment, DMV fee, acquisition fee, doc, bank fee etc).
    Car_man, How's that sound? (its cheaper than my previous offer from another dealer $639 before tax per month)

    I am getting ready to seal the deal next week.

  • MSPR is $50590. I didn't load up on options. I am regretting not having gotten the sports package, but too late.
  • tinocotinoco Posts: 18
    What is the MSRP on your car? I got a 530i about a month ago, msrp of 54,070.00 paid about $900.00 over invoice and monthly payments of $585.00 (this is including tax). I used 4 security deposits to lower my MF, and will be getting those back once I return the car. Let me know if you like the deal. I can get you in touch with the dealership the salesperson. I am also in SoCal.
  • tinocotinoco Posts: 18
    I don't think that is a great deal.. I got a 530i recently - msrp of 54,070.00 paid $900.00 over invoice, no down payment, I included 4 security deposits, each sec. deposit is equal to one months payment, however you get this money back when you return the car at the end of the lease - the purpose if this is to lower the Money Factor. My monthly payment, including tax is $585.00 - did a lot of work to get to this point but well worth it. You can email me if you'd like and I can give you the dealership and the salesperson I dealt with. Good Luck!
  • tinocotinoco Posts: 18
    I got a 530i recently - msrp of 54,070.00 paid $900.00 over invoice, no down payment, I included 4 security deposits, each sec. deposit is equal to one months payment, however you get this money back when you return the car at the end of the lease - the purpose if this is to lower the Money Factor. My monthly payment, including tax is $585.00 - did a lot of work to get to this point but well worth it. You can email me if you'd like and I can give you the dealership and the salesperson I dealt with. Good Luck!
  • mtroymtroy Posts: 45
    tinoco: what dealership was it in So Cal? I'm new to this forum, and I don't know how to email you directly.
  • 2007 530i: Auto, CW, Preimum, Nav, Logic 7. MSRP $55,120 Sale Price $52,520. REsidual $34,725.6; 36mo/10K miles. NJ Sales Tax of 7%. Acq Fee: $625, Doc. Fee $125, Tax and Registration $495.58. Monthly payment $531.3.

    Get this, NJ now charges a luxury tax of .4% for amount over $45K!

    Initial Payment is $4,400 (7 MSD) + $1,776.88 = $6,176.

    CA said that Initial MF of .0005 has been reduced to .00001. But when my application cleared BMWFS, they told CA that the minimum MF is .00004 with the 7 MSD's. And total MSD went up to $4,800 and monthly payment went up a few dollars/month

    What is the per MSD MF reduction (he initially told me it was .00007 per MSD =>
    .000049 total reduction and final MF of .00001)?

    So, what is the lowest MF BMWFS will go with maximum of 7 MSD's?

    Does this sound correct?

    Thanks - I've used this website to help with negotiations, however, written proof from competitor dealer was required to get this deal.

  • kyfdxkyfdx Posts: 48,873
    The minimum money factor that BMWFS will use is .00005

    Because of this, you should only make 6 additional MSDs, resulting in a final MF of .00008 (.00050 - .00042)

    So, your payment will be a little higher.. but, you should only have to make 6 MSDs..



    Prices Paid, Lease Questions, SUVs

  • Wondering if anyone could share what price they were able to get for a lease on a 2006 530xi in Illinois?

  • kyfdx,

    Thanks. Clarification. Initially, CA was NOt going to ask for any security deposit but then the MSD would be .000065. Paying at least one security deposit, he lowered that to the promotion buy rate of .0005.

    You say "6 additional MSDs". Should I read that to be 6 TOTAL MSDs? Or one to get the byu rate and 6 additional to get to the lowest MSD of .00008.

    I think I understand what you are saying is that I should not put down the 7th MSD because the additional amount will not get me to a better MF as did the first 6 MSDs. Therefore, I am better off investing that 7th MSD since the return in lower MF is very small compared to the slightly higher payment.

    One final question, is there a formal equation to calculate the Security Deposit amount? My CA said the deposit is the monthly payment rounded up to the next highest $50 amount. So, if my payment is $531. They deposit would be $550. Is that a fair calculation or required by BMWFS?

    Thanks a bunch ,

  • kyfdxkyfdx Posts: 48,873
    If you are a new BMWFS customer, then you are required to make a security deposit, otherwise there is a waiver bump to the money factor.... exactly as your CA described it... .0005 base rate w/security deposit.. .00065 without.

    This deposit is separate from the MSD program.. You have it exactly right... 6 additional MSDs..

    And.. again.. you have it correct.. No point in making the 7th MSD, as the return is very small.

    Your CA also gave you good information about the amount of the security deposit... Rounded up to the next $50 increment, just as you described.



    Prices Paid, Lease Questions, SUVs

  • Does any one have residual value and money factor for the 525i? I am looking for 15k miles per year and 28 months (the current lease special) and 36 months, I called the local dealer and they wouldn't supply any information. :mad:
  • MSRP: $63,065
    Asking Price: $60,179
    $4k to drive off (tax, title, , license, acquistion)

    36/36K $715 a month

    Is this a good deal?

    Here are the specs:

    2007 530xiT

    Auto, Premium, Nav, cold weather, Logic 7, sat radio,
    comfort access, park distance control, rear seat heaters,
    rear window shades
  • I found them over at bimmerfest , the numbers look the same as last month..
  • Hello, i'm trying to lease a 2007 base 525i with Automatic Transmission as the only option.
    I was qouted $3750.00 down and $379. a month (tax excluded).
    Salesman said he is giving it to me for $43,500 and at 72%
    residual. I don't even know what that means. :(
    Is this a good deal? I'm trying to make the
    Jan. 2 deadline.
    Appreciate all the help. Thanks! :)
  • I would suggest you read up on leasing of vehicles before you make the transaction. There are several websites that you will find helpful.

    It seems that you are getting is acceptable, but you did not mention the duration of your lease.

    When you lease a vehicle, you basically are "renting" it for an extended period of time. So your first question should be: what is the duration of the lease?

    Make sure this is a closed end lease, whereby you have the option to walk away from your car when the lease expires and have the option to purchase it if you want to do so.

    While you are leasing your BMW, it will depreciate in value, in your case it is depreciating by 28% (100%-72%). This is a low depreciation, so I suspect your lease is for less than 3 years. I have seen 36 months leases with 33% depreciation.

    The number of miles you put on the car while leasing it also affect the residual value. So your second questions is: "What are the number of miles allowed for the duration of the lease?". I suspect you have 10,000 miles per year. You could negotiate 12,000 or 15,000 miles per year but your lease payments generally would go up. You will have to decide how much you drive your car and decide accordingly.

    You should negotiate the selling price of the car as if you were buying it. The invoice on this car is 41,400 including the auto transmission, add another 695 for destination = 42,095. So at 43,500 the dealer is making 1,405 profit. Given the time of the year, you can probably reduce the purchase price to well under 43,000.

    Once you get to leasing, you need to be very careful, as the process is confusing. Watch out for the lease initiation fee ($400 to $800). You also need to ask for the money factor, which once you multiply by 2400 gives you the percentage rate on you lease. Several websites indicate the BMW is extending 0.0005 rate (0.0005*2400=1.2%). Dealers can jack this number up to make profit, so ask for the leasing rate. I suspect you are paying 0.001 (2.4%) which is acceptable, but you have some room to negotiate.

    Once you have all this data, you can add the tax, tags and calculate your lease payments. Any reputable dealer would show you how they calculate the numbers and arrive at the lease payments.

    Good Luck.
  • Thanks for the reply. I got the car yesterday. The lease
    is for 10K miles a year, 28 months, base 525i w/ auto.
    Salesman told me I was already on the .0010 MF. I asked
    him if he can lower the downpayment a little but he said no.
    He told me that cars are leaving the lot very quickly. In my
    1 1/2 hr of stay in the dealership, I saw 6 cars leave the lot.
    So I believe him when he said they sold 21 cars that day.
    I had to wait 30 minutes for the finance dept and I probably
    spent less than 10 mins in there (which I liked). He was rushing bec. there were 3 more behind me. And this was at past 8pm.
    I bought the "Safe Lease" program, which covers scratches, dings, tires, etc, for $865 which added $30 on my monthly
    dues. I think it was worth it and overall, I think I had a very fair deal. What do you think?
    $3750.00 down, $440 a month (with tax and "Safe Lease" incl)
  • hi all
    2007 530 msrp 54870
    nav, premium parktronic auto
    zero down, zero drive off, zero security
    668/month tax included
    36 month 15000/yr
    any thoughts on it
  • tinocotinoco Posts: 18
    I think you can do a little better than that.. If you want my assistance I can guide you to a dealership. I just recently purchased a 530i. MSRP of 54,070.00, paid $900.00 over invoice - 36mo./15k/0 down with 5 sec. deposits go it down to $585.00 a month including tax. Let me know if you need my help!
  • Congratulations
    Sounds like a good deal. Which state are you in?
  • I certainly would appreciate some help. as I have never leased a car, and am looking for a 530, with the following specs:

    Metallic paint
    nav, premium, sport, parktronic, auto trans, Sirius radio, cold weather, power rear sunshade
    15000 mi/year

    I would prefer zero down, zero drive off, zero security, paying only first month's payment, if doable.

    How should I approach this? Obtain several dealer bids first? I think I have access to invoice pricing, but, as I am very new to this, any help and/or suggestions would be much appreciated.

    I am located just north of San Diego, with access to dealers in that area as well as LA.

    I certainly thank you for your time.


  • mftmrtmftmrt Posts: 17
    With 7 security deposits, is the lowest mf .00011 or is it .00008? In SoCal.
  • I think mine was similiar to the one you want, zero everything is doable, and I got mine from new century BMW in Alhambra(Los Angeles) from a bald chinese guy
    I just also did a X3 for my wife too today
  • I am in southern cal looking for a good deal on 530i. Any dealerships to recommend?
    I am female with great credit but when I go to dealership I usually get hustled. Only successful experience has been with autobytel. I hear of all these great deals can anyone share guy tips with me? Do you go in with list of what you are looking for and what you will spend? When you follow car man advice of no down--does that always raise money factor? What kind of money factor and residual can one expect with no sec dep or money down with 36 month lease?
  • thank you.
    I'm from the Bay Area, California where everything is
    expensive :mad:
  • I'm looking to lease a 5 series and I'm in the chicago area. I would prefer a 530i but will settle for a 525i if the 530i is too expensive. I have no idea how a lease works and how much I should be paying. Any help would greatly be appreciated. I only need 10k a year. thanks Paul.
  • Hi klassyb. I assume that you are interested in leasing a 2007 525i. BMW is not currently providing any dealer cash on 2007 5-Series models. $500 over invoice is a very attractive price for this car. BMW Financial Services' current buy rate lease money factor for the '07 525i is .00065 with the payment of a security deposit at lease signing and .00080 without the deposit.

    Prices Paid Forum
  • Hi iamdaveh. $1,000 over invoice is a reasonable price for this car. Unfortunately, BMW Financial Services' lease program for it has changed. Its current buy rate lease money factor and residual value for a 36 month lease of a 2007 530i with 12,000 miles per year are .00090 and 62%, respectively. You can buy this money factor down by making additional security deposits. BMW will reduce the money factor that is used to calculate your car's monthly payment by .00007 for each additional deposit that you make. You can make up to seven additional deposits, for a total reduction of .00049.

    Prices Paid Forum
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