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BMW 5-Series Lease Questions

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  • gardisgardis Posts: 185
    Guys,
    I have a friend asking me the age old question: do I lease, or do I buy.
    She's a teacher, not a lot of money to spend, currently ending lease on a Jetta.
    My gut says buy, not lease. Where am I going wrong?
  • Unless there are known problems with the Jetta, she should buy it. She should have enough equity after a couple of years to have a down payment on her next car. Some professions have lease advantages, but teaching is not one of them.
  • I have a leased BMW and just purchased a certified preowned BMW. Same payment. 2008 528i lease, 2007 550i preowned purchased. A lot more car with the 550i, same monthly payment. I have a warranty until 2013 on the 550i. I am building equity vs. just handing in the lease.

    If you buy, buy used (preferrably certified for warranty) and buy a car with good residual value. e.g you dont want to be upside down at any point.
  • Or how about after 36 months I will turn my car in and get a brand new one. I wont be stuck with a car that I am upsidedown on a loan for, rolling negative equity into a vehicle for eternity... or until i decide i am going to drive a car for 10 years, or die. No matter how you look at it, a car is ALWAYS a poor investment, and should never be looked at as such. I dont need a car to give me any sort of return or "show" me anything after a few years. Thats why I own real estate and make other invsetments that will yeild a return. A lease makes the most sense if you want a new car every couple of years and want the lowest paymet possible. If I decide that every 3 years I will get a new one, buying would be a huge mistake.

    BTW, after 3 years you get the keys to a brand new car with NO negative equity. so in reality you are getting a lot, especially for the money
  • That sounds like a good deal compared to what I've been seeing. Other than the $2,500 rebate I have not been offered any additional reductions off msrp (from multiple dealers in the NYC and surrounding areas).
  • I paid $3000 down ..Options include Premium Package/ Navigation/ Cold Weather/Xenon/XM
  • JennJenn Posts: 9
    I'm looking at a '09 528 36 mo, 10K miles/yr.

    $500 over invoice - $2500 stimulus package, total $46,910. (MSRP is $52,525)
    The dealer is including $825 destination fee, $400 MACO and $180 Training/service fee. I'm trying to get him to drop the MACO and T/S fees. Is this a good price?

    I'm assuming I can lease for 60% residual, .001 MF and w/8.25% tax, payment will be $ 547.81

    Am I missing any other fees they might throw in when I tell them I want to lease?

    Is this a good deal? I don't need the car unitl mid March but the $2500 stimulus discount might make it better to buy before Feb 2nd.

    Thanks for any help!
  • Congratulations on getting your new car, abuck. The lower your selling price is, the lower your payment will be. If you could have shaved a little more off of this car's selling price you would have been better off. Also, you never mentioned what money factor the dealer used to calculate your monthly payment. If you didn't ask, there is a good chance that the dealer marked it up to add additional back-end profit to your deal. BMW dealers are notorious for doing this.

    Those are the two areas to focus on the next time around. For now, enjoy your sweet new ride :shades: !

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hello regissa1. BMW Financial Services' current buy rate lease money factor for the 2009 528i is .00175. This money factor is for returning BMW FS customers or new ones who pay a security deposit equivalent to their vehicle's monthly payment rounded up to the nearest $50 increment at lease signing. It will waive its security deposit requirement for non-returning customers in exchange for a .00015 month factor increase. That probably explains why you were quoted .00190.

    If you haven't finalized this deal yet, you're in luck. BMW recently introduced a special $2,500 cash incentive on leases of the 5-Series. Make sure to take this cash into account when renegotiating your deal. It will help you to get a much lower selling price.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Here you go, romer. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 535i with 12,000 miles per year are .00175 and 60%, respectively. The numbers for an otherwise identical lease of an '08 535i are .00120 and 55%.

    When negotiating your deal on either of these cars, make sure to take the $2,500 cash incentive that BMW recently introduced on them into account.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi sellmyhome55. There's no need to be intimidated when negotiating a lease. Doing so is actually fairly simple if you just focus on two numbers, the selling price of the car that you want and the money factor that the dealer is using to calculate its payment. These are the two main profit centers for dealers on leases.

    Shop around and negotiate the lowest possible selling price on the car that you're interested in. You can do some research first on how much you should pay by visiting the "BMW 5-Series Prices Paid and Buying Experience" discussion. Make sure to take the $2,500 cash incentive that BMW just introduced on this car into account during your negotiations.

    Once you have arrived at a selling price that you are comfortable with, have the dealer calculate your car's monthly payment using BMW Financial Services' buy rate lease money factor for it, .00175. This money factor will be slightly higher, .00190, if you are a non-returning BMW FS lessee who wants to have their car's security deposit waived. Make sure that the dealer doesn't charge you a higher money factor than this. BMW dealers are notorious for marking car's factors up to add additional, hidden back-end profit to deals.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Car man.... what do you think?

    2009 528xi premium / cold weather / ipod adaptor
    1st month, tax, title $1008 at signing
    Monthly $619 including tax
  • seankseank Posts: 3
    Am I correct that dealers have just as much ability to negotiate the "cap cost" of a lease as they do the "sale price" of a cash or financed deal? I have been lead to believe that the lease components are all "set" by the finance company. I guess I just want to be sure I can walk in and negotiate off of invoice as easily if I lease vs buy.

    Are there any lease components that can not be negotiated?? Residual would seem to be one.

    Much thanks!
  • yatzeyatze Posts: 33
    Hello, Jayrider.
    Checking back in with you on latest auction prices and any other advice you might have re purchasing my leased '06 BMW530xi wagon. Lease is up first week in March. Car currently has 20,700 miles

    BMW Financial called and offered $6000 off the residual which brings it down to 29K and 2.9% financing. This matches the price for the CPO at the local dealer except the dealer has .9% financing.

    I think I can do better with your help. Dealer tried forcing the deal because he didn't know how long .9% financing would be available, but I told him I would wait.

    Thanks for all your help and everyone else who responded.
  • yatzeyatze Posts: 33
    Hello, Jayrider.
    Checking back in with you on latest auction prices and any other advice you might have re purchasing my leased '06 BMW530xi wagon. Lease is up first week in March. Car currently has 20,700 miles

    BMW Financial called and offered $6000 off the residual which brings it down to 29K and 2.9% financing. This matches the price for the CPO at the local dealer except the dealer has .9% financing.

    I think I can do better with your help. Dealer tried forcing the deal because he didn't know how long .9% financing would be available, but I told him I would wait.

    Thanks for all your help and everyone else who responded.
  • yatzeyatze Posts: 33
    Checking in for latest auction prices and any other advice you might have re purchasing my leased '06 BMW530xi wagon. Lease is up first week in March. Car currently has 20,700 miles

    BMW Financial called and offered $6000 off the residual which brings it down to 29K and 2.9% financing. This matches the price for the CPO at the local dealer except the dealer has .9% financing.

    I think I can do better with your help. Dealer tried forcing the deal because he didn't know how long .9% financing would be available, but I told him I would wait.

    Thanks for all your help and everyone else who responded.
  • Thanks Carman for the info.
    I leased the 09 528I a week ago. Premium pack. Xenon light/Satellite Radio/ipod adapter.
    I wilkl be billed for one month of my old lease that was due the next day and BMW issued a ck for the 3 remaining months.
    I then paid $2500.00 down and $640.00 tax included.
  • JennJenn Posts: 9
    Does anyone know if BMW will extend the $2500 rebate on the 5 series? I'm trying to decide if I lease a new 528 now or wait until my lease is up on 3/11.

    I can get .00175 MF, $500 over invoice. Is this a good deal?

    Thanks for any help!
    Jen
  • You should be able to get the car below invoice with the $2,500 rebate from BMW.
  • jayriderjayrider Posts: 3,293
    sorry--- lost my resource for auction prices. I doubt it would help much -- best you might do is check prices on ebay and cars.com to see sale prices. With cpo and low financing the dealer won't be moving much without a lot of effort on your part. Offer a few grand less and be prepared to walk and lose the car. If you really really want it than go for it. You can buy a brand new saab 9-3 08 for about 25k if you need a euro sedan but its not a bmw --- it is nice though and full warranty. Sorry -- good luck.
  • yatzeyatze Posts: 33
    Bummer. Can anyone else help me with auction prices? Once they saw that I knew that they dropped the price immediately. That was my strongest argument for lowering the price. We are down to 28K CPO
  • yatzeyatze Posts: 33
    Can someone get me current auction prices for BMW 06 530xi wagon , 20,600 miles

    Last month auction block price for this car was about $26k.

    I am interested in purchasing my car at end of lease and dealer seems willing to negotiate. But I need that auction price.

    Thanks.
  • gardisgardis Posts: 185
    yatze-
    my dealer in Darien, CT had a 2006 530I wagon, they were asking $34,900 and sold it. Take it from me -- just like jayrider told you, play hardball too much, and you will lose the car. Someone is out there ready to buy. I've already lost two cars that way. I'm kicking myself. Everyone has to make money, you have to be happy, but the dealer has to be allowed to make money too. That's how the game is played. If you know the vehicle is a good one, you'd be foolish to walk away from it, and start all over, espec. with another CPO. My two cents.
  • yatzeyatze Posts: 33
    Thanks for the advice. Duly noted. Have to say that BMW Financial already dropped $6000 of the residual which brought it down to 29k and so I think I can do better at the dealer. You are correct, there are always folks who can pay. But I have 2 other cars old but serviceable, so if they won't deal, it's no loss.
  • jayriderjayrider Posts: 3,293
    checked out cpo prices for your car and best price with 20k miles was 29900. If you have 28k offer than that isn't bad. 25-30k is an affordable price range for used bmw shoppers so they will sell it within a few months. Bargain hard from 25k until close to lease end and see where it brings you. Auction prices for an above average wagon can't be much less than 21-23k without cpo. Add dealer profit and cpo and even 28 doesn't seem bad but who knows in this market. There are a number of nice new vehicles available for 30k foreign/domestic. I just can't see spending almost 30k on any used car. Too many choices new. But to each his own -- good luck.
  • yatzeyatze Posts: 33
    Thanks for checking this out. You are correct there are lots of nice cars at 30K but very few wagons appeal. No other wagon really appeal at at the moment. Not seeing a lot of wagons for 30k though except the little ones which are too small and I don't want another Vovlo and don't like Saab or Suburau.
  • JennJenn Posts: 9
    Thanks for your response.

    I got the dealer to go to invoice and also give me the $2500 rebate at .00175 MF but they wouldn't forgive my 2K over miles on my current 530. They also had some fees included that they couldn't explain for about $1000. They told me they were taxes on the difference between MSRP and selling price...it didn't add up. They also put on a $925 acqusition fee.

    I held off on the deal. I'm hoping I can do better at the end of Feb.

    If anyone knows a good dealer they can trust in the Bay Area, please let me know.

    Thanks!
  • If you got them to invoice less the $2,500 rebate that sounds like a good deal. The acquisition fee is $725 so they must be marking it up if they told you it's $925.

    For one reason or another taxes are applicable on the rebate (but not the difference between MSRP and the selling price).

    Can't help you with a dealer in CA but you should send out an email to all the dealers within 25 or 50 miles of where you live asking for a quote and see who gives you the best deal (you can get a list of dealerships and email addresses at bmwusa.com).
  • If anyone knows a good dealer they can trust in the Bay Area, please let me know.

    bimmerfest.com has some sponsors in SoCal if that isn't too far. Might be worth a shot. Click "sponsors" in the top right corner. "P.K." posts often in the forums.
  • Car Man

    I am coming off of a lease at the end of March. I am in the market for a 2009 base 535 bmw. What can I expect to pay on a 36 month lease. I live in the Atlanta area and have perfect credit. I did get a quote from one dealer(535ia regular retail 55,320 1500 down, 603 + tax per month).
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