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BMW 5-Series Lease Questions

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  • Hi everyone. I echo the sentiment throughout the postings...this is an extremely helpful forum and I appreciate everyone's feedback.

    Question: As I was signing my paperwork, the finance person offered a $725 "safe lease" option which supposedly protected me from the lease end costs of door dings, damages, etc...I'm looking for opinions on this coverage?? What have others done? The finance person began by saying that "95% of people typically take this option"...so, I was very skeptical from the start.

    Thanks!
  • Here's the deal I received in Northern Virginia...

    2007 525i [non-permissible content removed] Silver
    Auto Transmission
    Premium Pkg
    Cold Weather Pkg
    Nav
    Xenon
    Sat Radio

    MSRP: $51,515
    Selling price: $48,615
    Acq: $825
    62% Residual on 12k/year
    MF: .001 (absolutely would not budge any lower)
  • Check the second page of the PDF for Euro pricing. Offer $1k over as well. Seems like plenty of people are getting them for only $1k over. Also, check the European delivery thread on Bimmerfest. Tons of info.

    http://www.bimmerfest.com/forums/showthread.php?t=158614
  • Whats your monthly payment?
  • I got an offer for a 2007 530i, with premium, sports, automatic, nav, Logic7 sound, no rear sunshade

    MSRP $57,170
    Cap Cost $56,170
    MF 0.00140
    Residual 62%
    Monthly payment $728, including tax $788
    Driveoff is $1279.

    This is for a 3-year lease, 12k a year. No security deposit, $0 down, only drive-off. I leased with BMW before. In fact, it's the same northern California dealership I leased with.

    Any feedback on whether this is a good deal or not?
  • This looks like a bad deal. First, you should be able to get a much lower price on the vehicle. $1,000 off MSRP is a joke. Even Carsdirect.com has a price of $54,675(you should do better) with your selected options. Second, the current money factor for February is .0010, so they are charging you a premium rate. The residual is correct at 62%. My calculations based upon the info I just provided is your monthly payment should be $657.57 before tax and this includes the acq fee in the lease. Drive shoud be first payment and DMV fees.

    I hope this helps.

    corsche
  • Welcome lindalouwho. I'd be happy to help you out. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.

    Car_man
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  • Here's the info that you're looking for, jim53. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 525xi with 15,000 miles per year are .00150 and 60%, respectively. I do not believe that BMW is offering 39 month leases on this car.

    Car_man
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  • No problem, Corsche. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 550i with 12,000 miles per year are .00175 and 61%, respectively.

    Car_man
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  • Hi jayps. The money factor that you were quoted for this car is right in line with BMW Financial Services' buy rate for a lease of it with a waived security deposit. This is a good thing because it means that the dealer that you are working with is not trying to mark your car's factor up to add additional hidden profit to your deal. I would be happy to give you my opinion of this car's selling price if you tell me what its MSRP is. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience".

    Car_man
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  • Hi crzycool22. Something is strange about the lease program that you were quoted. I don't recall ever seeing a 28 month lease program on this car. Plus, the money factor that you were quoted is so low. This is a great lease program, but I can't figure out where it would come from. It is more attractive than BMW Financial Services' current lease program for this car and I doubt that any independent bank would offer this attractive a deal. Where did you get these numbers from?

    Car_man
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  • Hi japelleg. The money factor that you were quoted is right in line with BMW Financial Services' buy rate for this car: .00100 base money factor - (7 additional deposits x .00007 reduction) = .00051. As far as this car's price goes, a base 2007 BMW 530i has a spread of around $3,600 between its full MSRP and its dealer invoice price. A discount of $2,000 isn't bad, but it still leaves some room to play with. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience".

    Car_man
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    Prices Paid Forum
  • I am waiting on my car to arrive soon. Part of the cap cost in my agreement includes a $499 dealer prep fee (this is not the acquisition fee, 825 at my dealer!). In the message board here I dont see mention of this fee on a lease. Is this something to negotiate or walk away from. Its a small amount of additional dealer profit, but it grinds me.
    What do you think?
  • ajp00ajp00 Posts: 17
    Car_man or anyone who knows

    Can someone tell me what the money factor and residual on a 2007 530xi 12K miles for 36 months is? Thanks in advance
  • wbb56wbb56 Posts: 38
    Is this a reasonable lease offer/request for a European Delivery 525i?

    USA MSRP w/Destination Charge: $52,485.00
    Euro Invoice Cost: $44,350
    (Auto, NAV, Sirius,Premium, Premium Sound, Cold Weather)

    My Offer: $46,124 (Invoice + 4%)
    Total: $46,694 (Incl. Dest + Lease Fee-Trade (I'm going to ask for $750 for my '97 Explorer)
    36 mo/15k Lease 60% Residual .00075 MF
    $495.37 Payment (includes 3% NC Sales Tax)

    If I am planning on buying the car at the end of the lease should I just lease at the lowest rate/highest residual (36mo/10k miles)?

    Thanks very much!
  • Hi eoulim. In answer to your first question, regardless of when the dealership that you are working with ran your credit, unless you locked in the old lease program you will have to use the one that is available when you physically take delivery of your new car.

    I'm not sure that I understand your second question. Are you asking when you would have to pay your multiple security deposits? If so, they are due at lease signing.

    Car_man
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  • Hi scottyb1. Did you say that you were offered a money factor of .00400? Something's not right here. BMW dealers can't even mark BMW FS' buy rate money factor of .00100 that much. Perhaps there was some miscommunication between you and the dealer. You should either speak with them again or try a different dealership.

    Car_man
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  • Hi walton_rice. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what its selling price is.

    Car_man
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  • Hi shuale_ejs. The explanation that you were given sounds about right to me. Having said this, don't let the dealer that you are working with cloud things by quoting you one price and then adding all sorts of fees to it. Focus on the big picture and get an out-the-door price quote for the car that you want. If the total price that this dealer is charging you for this car is less than the total price that you would have to pay for it elsewhere, it doesn't really matter how the deal breaks down. If you don't believe that it is, then you may want to consider shopping around some.

    Car_man
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  • Hi 99_528i. BMW Financial Services' current buy rate lease money factor for this car is .00100 with the payment of a security deposit and .00115 with the deposit waived. As you can see, it appears as though the dealer that you are working with is marking up your car's money factor. Furthermore, you are only being given a $1,000 discount on a car that has a spread of at least $4,000 between its MSRP and dealer invoice price. You should be able to do better than that. If I was in your situation I definitely would shop around with a couple of other dealers.

    Car_man
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