Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





BMW 5-Series Lease Questions

134689140

Comments

  • I'd like to know what you think a fair offer on the following 525i would be. Here's the details....

    2005 525i
    12,391 miles
    Jet Black/Black leather
    Automatic
    Premium Package
    Cold Weather Package
    Xenon
    Satellite Prep
    Wood Trim

    Need to make an offer soon. It's listed at 42,995. What's the best way to go if I would like to finance a used car like this 48-60 months? What else can I do to haggle them down.

    Errr.. Who knows, they might be reading this too.. But I'd like a second opinion anyway.

    If it's out of reach then I'm going with an Acura TL.

    Thanks!
  • Hi

    BMW is now offering a 24 month lease deal. Can you tell me what kind of numbers I should expect for the following setup. Is a 24 month lease even worth it?

    2006 525i
    Black Sapphire\Black Leather
    Premium
    Cold Weather
    Automatic
    Xenon
    Rear Seat Heating.

    MSRP on this is 48,370.

    I'd like to have 12000 miles.
    What MF and residual should I be looking for?

    Thanks...

    Acura TL on hold for now :)
  • hpowdershpowders Posts: 4,269
    Residual = 73%
    Base money factor = .00160

    If you were to pay a selling price of invoice + $2000 ($46,315), I come up with a pre-tax monthly payment of $589 using the above base money factor.
    This is a conservative estimate.
    You can, of course, try and bargain the selling price for less.
  • ktranktran Posts: 10
    I am thinking about leasing a 2006 530i in Southern California and would like to find out about your experience when returning the car at the end of the lease term. How do BMW dealers charge for minor scratches and dings that are probably unavoidable with a 3-year lease?

    Thanks in advance for your help.
  • bmwdougbmwdoug Posts: 248
    Is this 24 month Lease Promotion currently being offered by BMW considered a good deal? What if a person wants 15,000 miles per year? What if you would plan on buying the car in two years when the lease is up?
  • jmcmbzjmcmbz Posts: 42
    So, I got the car and it's beautiful. I'm not in love like I was with my 2001 330i SportPkg but it's definately a step up from my MBZ C-class that I had for 1 year. The security deposit was lowered to $650 incidentally.

    Picked the car up and drove to the Bay Area and back for a 1000 mile trip. Got a nasty chip on the winshield which sucks! Mileage was great (avg 27mpg for trip). I'm a little sorry I did not get the sport package. A bit floaty here and there but very smooth. Was wondering if anyone can recommend some good summer tires to replace the all-season Continentals to maybe increase handling and stability. Was thinking Michelin PS2's or Bridgestone RE750's.

    Anyway, kyfdx, my question is, does it look like I could have gotten the same car for almost the same (or less) payment on the 24 month lease had I waited one week? I would have prefered this had I known about it. Maybe I don't want to know. In all my research I had never noticed BMW change lease offers mid-month like this.

    Thanks again for the insight.
  • kyfdxkyfdx Posts: 29,850
    The 24 month deal isn't new.. It has been available all along... It is the same money factor as the 36 month deal, but with a residual 11% higher...

    That is a relatively good deal for a 24 month lease... Usually 24 month leases are much more expensive than 36 month leases.. In this case, the two terms are relatively the same price.. but, when you lease for two years, any fees (like the acquisition fee), get amortized over 24 payments, instead of 36, and that tends to push the pendulum back in favor of the 36 month lease... You may have been able to get about the same payment for 24 months, but I doubt it would have been lower.. It wouldn't be a substantial difference, either way..

    I understand the lure of a 24 month lease.... I like to trade cars as much as anyone.. but, if you get a really good deal on a lease, keeping it for 36 months is a good thing.. there is no guarantee that you'll be able to get that low of a payment the next time around.

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • ktranktran Posts: 10
    jmcmbz,

    I tried to enter the same package on the 525i into Edmunds and the MSRP and invoice price (including Destination) were $50,415 and $46,175. The discrepancy with your numbers was due to your base MSRP was $41,800 but on Edmunds it was listed for $42,500. So your $47,000 selling price is actually very nice. Congratulations on your new car. :)
  • jmcmbzjmcmbz Posts: 42
    Thanks ktran! I am happy with the deal. My car was a pre-September price increase so that is where the discrepancy lies.

    You're right kyfdx. I'm sure I can be happy for 3 years with this car. Of course, I'm already wondering what changes or advancements may occur in the next couple of years but that's what "car porn" (as my wife calls it) is for. :D With my old E46, I ended up liking the syling of my 2001 better than the mild updates for 2002+.
  • bmwdougbmwdoug Posts: 248
    What would the payments be on a 2006 525 that has an MSRP of $52,505, and a purchase price of $50,000. The tax rate is 7.75%. I would like to know the payments, money factor, and residual for both the 36 month lease and 24 month lease. Can someone help Thank you. Here are the basics:

    MSRP $52,5050
    Purchase $50,000
    Tax is 7.75%
    Options:
    automatic
    sports package
    premium package
    navigation
    power sun shade
    xeons
    rear side airbags
    folding rear seat
  • kyfdxkyfdx Posts: 29,850
    bmwdoug.. you left out the mileage allowance..

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • bmwdougbmwdoug Posts: 248
    Kfdx, thank you. I did forget the mileage allowance. I am talking about 15,000 miles per year. So, again here are the basics:

    MSRP $52,5050
    Purchase $50,000
    Tax is 7.75%
    Mileage is 15,000 miles per year
    Length is 36 months
    Length is 24 months
    Options:
    automatic
    sports package
    premium package
    navigation
    power sun shade
    xeons
    rear side airbags
    folding rear seat
  • kyfdxkyfdx Posts: 29,850
    '06 525i
    $52505 MSRP
    $50000 Selling price
    $50625 Cap cost (selling price + acq.fee)
    money factor .0016
    3yr/45K lease
    residual 60%
    payment = $663/mo.+ 7.75% tax = $715/mo.
    2yr/30K lease
    Residual 71%
    payment = $697/mo.+ 7.75% tax = $751/mo.

    Due at signing = 1st payment + security deposit + title/license fees = Approx. $1700-$1800.

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • bmwdougbmwdoug Posts: 248
    Wow, that was quick! Thank you Kfdx. You are a HUGE help on this Fourm. If you have time, I have one more question. What would the numbers be for 12000 miles per year?

    Thank you.
  • kyfdxkyfdx Posts: 29,850
    $685/mo. and 708/mo. for 36 and 24 months respectively... tax included..

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • bmwdougbmwdoug Posts: 248
    Kfdx, thank you very much. :)
  • bmwdougbmwdoug Posts: 248
    I am learning quite a bit about the Pros and Cons of Leasing on this Forum. I have always bought in the past, so this Forum has been a great resource. Can you good folks give me your opinions on returning a BMW when the lease is up?

    Here are the question that most intrigues me: In general, if you want to purchase your car at the end of the lease, can you get BMW to sell it to you for under the Residual price?

    Can you negotiate the price?

    Has past experience indicated that BMW will accept offers below the Residual Price? If so, what percentage below? Or, does BMW stick hard nosed to the Residual Price?

    As always, thank you all for the super help :)
  • Hi:

    I gather from reading recent posts that BMW appears to be offering some lease support on 24 month leases. Can you provide money factors and residuals for:

    2006 BMW 525i
    10,000 miles
    24 months
    +
    36 months?

    Also, are the money factor/residuals expected to change in December? I noticed that Lexus and Mercedes appear to be already running their end-of-year promotions.

    Thanks,

    Ken
  • hpowdershpowders Posts: 4,269
    10,000 miles 24 months, residual 74%, mf 0.00160
    10,000 miles, 36 months, residual 63% mf 0.00160
  • macdadmacdad Posts: 65
    Does BMW offer any 1 pay lease programs - 24 or 36 month on a 325 or 525. Your boards are very helpful and I am doing my research before going to the dealer.

    Thank you,

    macdad
  • bdr127bdr127 Posts: 950
    I assume you're referring to a pre-paid lease? If so, then yes, BMW does offer this.... There are some other people around here that have experience with this that can definitely help you out. :)
  • bmwdougbmwdoug Posts: 248
    Hmmm, one pay lease. What would be the advantages of a one pay lease? I am learning as well. :)

    I guess that by getting a one pay lease you can use BMW to basically subsidize a two term loan. What I am thinking is this: (1)A buyer pays the lease up front. (2) Thus the buyer has no lease payment during the lease period. (3) Buyer is able to put a set $ amount, say half of what lease payment would have been, into a higher interest paying account. (4) Buyer will have increase cash flow, since saving amount is about half of what the lease payment would have been. (5) At the end of the lease, the Buyer actually purchases the car, using the money that he/she has been putting into the special account as a down payment on the residual, thus keeping the payments consistent, but now has total ownership.

    I believe this could work out well if the buyer has enough cash on hand to pay the lease upfront. And, if the buyer is able to negotiate a lower buy price from BMW Financial than the stated Residual. I do not know if BMW negotiates on a buyout or not. It would be key.

    It would have to be compared against just buying the car outright, using the lease up front payments as a down payment. But, it is an interesting concept. I would be interested in opinions on this issue.
  • macdadmacdad Posts: 65
    A few years ago, Cadillac offered a prepay lease and Lexus currently advertises a one pay lease on their website. A friend familiar with Lexus "says" there is a discount to prepay the lease. Does BMW offer any additional/increased discount if you prepay (maybe on the MF - prepaying anything vs. finance usually only saves interest)? As far as buying at the end of term - I leased a Volvo a few years ago and they were very aggressive at lease end for me to buy.
  • bmwdougbmwdoug Posts: 248
    Macdad, thanks for the reply. Very good question, regarding a further discount for prepaying a lease. I am not sure either. As I suggested in my original response to the original post, if BMW allows negotiating or is aggressive in terms of deals on a buyout at lease end, a Prepay Lease could be a nice option.
  • macdadmacdad Posts: 65
    This may take a day but I recently purchased an E320 from a friend who worked at local Benz dealership with prior BMW employment (sales). Very knowledgeable person but moved to Atlanta a couple of months ago. Will locate him and find answers. Maybe someone else will have an idea by then.

    If there is ends up being no savings. I could stick the money in an account to gain some interest and let the payments be automatically deducted each month.
  • boylaboyla Posts: 11
    I did put my security deposit to hold the car that I want. I am going to go sign the contract on 12/1. I was wondering if there is gonna be big MF difference on Nov/Dec. Also, I was wondering if it is possible for me to get Dec's MF if it comes out to be lower. Thank you for help.
  • could you please tell me how to do the math to get to the totals using the residual and money factor
    and purchase price thanks
  • kyfdxkyfdx Posts: 29,850

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • thank you very much it will help
  • If I plan on keeping the car after the lease is up how does this sound...

    MSRP on a 2006 530xi with the options I want ~ 53K

    Suppose agreed on price of 51K. Now remember I'm planning on buying the car after the lease is up.

    So....

    If I apply a trade in of ~6K, plus additional down payment of another 6K. I'm in Ohio, taxes are 6.5%

    51K - 6K(trade in) - 6K(down payment) = 39K

    I would lease the car for 36 months with 12K or 15K miles per year.Then purchase(finance over 3 years) after the lease is up. Does it matter if I go over the miles if I'm planning on buying the car in the end? I know they would charge me for the additional miles if I gave it back but what happens if I buy it and am over on allowed miles?

    Does it make sense to go this route? Lease for 3 years then finance the rest after 3 years? I was also planning on trying to set aside ~ 200 a month throughout the lease and use this as a down payment when it comes time to finance after the lease is up.

    Why am I loking into this scenario? I'm trying not to get locked into a high monthly payment by financing 51K - 12K(trade-in and downpayment) = 39K all at once. Is it a bad idea to drop 12K upfront since I'm leasing at first?

    So what do you think? What type of payments am I looking at during the lease and then when I finance? Also is there much of a chance to negotiate a lower buyout at the end of the lease? How much over the 51K inital car price will I end up paying going this route?

    Gosh I really want a 5 series.. Just don't want to pay an arm and a leg to get one.
134689140
This discussion has been closed.