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2013 and earlier BMW 7-Series Lease Questions

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  • bonzmdbonzmd Posts: 5
    does anyone out there no the latest residual and money factor on a 2011 bmw 750xi with 15K a year, 36 month lease?
    when i ordered the car in march, it was at a 55% res. and .0025 mf. however, the deal told me when the car arrived, we could re-do the deal in my favor if these #'s were better.
    Please help! i don't trust the dealer. (car man are you out there?)
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here's the latest info for you, bonzmd. BMW Financial Services' April buy rate lease money factor and residual value for a 36 month lease of a 2011 750xi with 15,000 miles per year are .00250 and 55%, respectively...exactly the same as you were quoted when you placed your order.

    Car_man
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  • beopersonbeoperson Posts: 54
    Can anyone post July numbers for 2011 BMW 750xi?

    Any loyalty rebates or specials?

    Thank you in advance.
  • beopersonbeoperson Posts: 54
    ok got some info:
    MF 0.00210
    Residual 58% @ 10K 36 month
    Looks like dealers in NJ are willing to sell at 7% off MSRP which according to dealer is their invoice price.

    Seems like there are no specials for 2011 750 LXI
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Beoperson, BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 750xi with 15,000 miles per year are 00210 and 55%, respectively for consumers who qualify for its top credit tier.

    I don't believe that BMW is currently providing any cash incentives on this car.

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  • bjh11bjh11 Posts: 2
    I am not sure if you want to purchase snow tires on rims for your bmw 750 but if you are than please respond. blondieblys@aol.com
  • bjh11bjh11 Posts: 2
    addendum to other message....you are quite right you cannot purchase 20" that is why these tires are being sold with the wheels and did work out excellently for my 750 BMW...moving to florida is only reason am selling ...blondieblys@aol.com
  • Hi Car_man,
    Would you have the MF and residual information for 2011 740Li, 36 month lease 15000 miles per year? Thanks.
  • blckislandguyblckislandguy Posts: 1,150
    While I personally think leasing is a bad deal for most people, BMW apparently
    subsidizes there leases but less so their sales. In other words to get you on the merry go round of leasing, they are willing to subsidize the lease to get you on board.

    Does the case ever exist where Bimmer's subsidy is so great that a potential buyer (as opposed to a lessor) should go ahead and lease the car with the expectation that he will get the benefit of the subsidy and then at the end of the lease period buy the car??
  • blckislandguyblckislandguy Posts: 1,150
    This is just a little trick to deter you from getting off the merry go round and actually buying a car of you own.
  • Hi car_man,
    Are there still lease rates available on the 2010 750Li xdrive? My dealer has one left over that he is trying to get me to buy but I would rather lease. (I own a business and for me leasing is the best way to go). I would like to see if you can get me the money factor, residual value and if there is any incentive available on either 24 or 36 month terms with 15K miles per year.

    I know the 2011 rates are probably better but the dealer is offering me $14K off sticker on this one so it might be worth my while.

    Thanks in advance
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'd be happy to help you out, 595express. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 740Li with 15,000 miles per year are .00210 and 55%, respectively for consumers who qualify for its top credit tiers.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You are absolutely correct, blckislandguy. Unless one is looking at a leftover model at the end of the model year, when BMW is providing large dealer cash incentives on models to help dealers clear them off of their lots, one is often better off financially leasing a new BMW rather than purchasing it.

    One of the reason that leases of BMWs are such good deals is that BMW FS usually overestimates vehicles residual values. Doing so undercharges consumers for their vehicles' actual depreciation and provides low lease payments. Unfortunately, this also often makes purchasing vehicles at lease-end for their end-of-term contract prices a bad deal.

    I don't think that I would ever personally lease a BMW with the intention of purchasing it at lease-end. The residual values are just too inflated. It's great for lessees, but not so good for people who want to buy their cars at the end.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey 07montecarloss. BMW is still providing some lease support on the 2010 7-Series, but its program isn't great.

    BMW FS' August buy rate lease money factor and residual value for a 24 month lease of a 2010 750Li with 15,000 miles per year are .00185 and 50%, respectively for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical 36 month lease are .00185 and 44%.

    I am not aware of any cash incentives on this model at this time, but BMW is providing closeout dealer cash on a number of other 2010 models, so I wouldn't be completely surprised if BMW did introduce some dealer cash on the '10 "7" in September.

    Car_man
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  • blckislandguyblckislandguy Posts: 1,150
    edited September 2010
    As a buy-and-hold kind of guy, I've always been against leases. But I talked with our CPA firm recently and now I'm convinced that for someone who can claim the vehicle as (mostly) a biz expense that leasing is the only way to go. They told me that on a $1500 a month ($18,000 a year) lease on a new 7 Series at the end of the three year lease I would be able to write off $53,000.

    This scenario is better than even waiting a year or so and buying a used 2010 7 Series for $65,000 because of the limited amount of depreciation I could claim even over a 6 year holding period..

    As a side note, I heard at a Penske dealership over the weekend that because lots of financial and mortgage types have had their Bimmers repossessed, that the used values have plummeted!
  • kyfdxkyfdx Posts: 29,146
    On a related note.. my next door neighbor just bought an '06 750Li with 52K miles for $30K...

    Is the lease payment on a 7-series really $1500/mo.? That's a pretty crappy payment for a $90K car... Tax write-off or not... lower payments are better... Shop around!

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  • blckislandguyblckislandguy Posts: 1,150
    edited September 2010
    Not quite $1500 but close to it for a no money down, 12,-000 mile 36 month lease for a long wheelbase, all wheel drive 750.

    Incidentally, I have yet to see a 750iL x with a Moroney of less than 97K because the dealers load them up with Luxury Seating, Cold Weather, Premium Sound (Does anyone over 25 really need something like 16 speakers??), Back Up Camera (if you can't see behind you, maybe you should take Yoga so you could turn your head?), etc. etc.

    All in all, I'm seriously considering a Porsche Pamara. Why? Less money, better car (would you ever dare own a 7 Series out of warranty?), etc.
  • Dear Car_Man,

    I'm actually looking for a 2011 535i, when I found out there have been so many complaints about the alignment issue, and it doesn't look like there will be a fix any time soon. Given I'll be returning my 2008 535i in 2 weeks, I want to start shopping for a 740i (not the L version). Do you have the Sep MF and residual for a 740i, with 12k a year for 3 years?

    Thanks.
  • Hey ex_sc400. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2011 740i with 12,000 miles per year are .00210 and 57%, respectively for consumers who qualify for its top credit tiers.

    Car_man
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  • I was interested in 2011 740i lease for 60 months and 15k miles/year. What's the numbers on this.

    I see in the posts a money factor and read to multiply it by 2400. The last number I saw posted came out to 5.04%. Meanwhile, on BMW's web I see some info that leads me to think the rate is 1.9% on leases > 3 years? Why the difference?
    Thanks
  • blckislandguyblckislandguy Posts: 1,150
    edited September 2010
    As I mentioned above, I've always been a buy and hold kind of guy but now my CPA firm has me convinced that leasing--and expensing to my company-beats the much slower buy and depreciate route. So, I checked out leasing a 7 Series with the intention of buying it at the end of the lease.

    As far as I can tell, every one agrees on two things.

    1) BMW residuals are articificially inflated. Buying a BMW at the end of the lease is going to be an above-market price transaction. Translation: you, a loyal BMW customer, are going to pay more for your soon to be off lease car than the guy who walks in and wants to buy your car. Thank you very much, BMW.

    2) Everyone also agrees that you don't want to own a 7 Series that is out of warranty. So, if you want to buy your car at lease end, you will want to have it CPOed to get the added warranty. This is going to cost you roughly $2500 for the paperwork and the remedial work.

    All in all, while maybe leasing for business owner is a good deal, BMW makes it harder than they have to if you want to buy the car at end.

    A question for the house. We all know that some options are more valuable down the road than others. When they compute residual values do they recognize this? For example does the $6000 M Package have more resale value than larding the 7 Series up with $6000 worth of random options. Saying it differently, does spending $600 on a "ceramic" coating of the I drive knob really have any residual value at all???
  • kyfdxkyfdx Posts: 29,146
    In general (with BMWs), almost any option on the Monroney sticker is fully residualized.. Almost anything added by the dealer is not...

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  • blckislandguyblckislandguy Posts: 1,150
    edited September 2010
    You know, this whole leasing thing is beginning to hurt my head for several reasons. There seem to be no end to the fees. Moreover, BMW 7 Series option pricing is a suckers game. I think because most 7 Series cars are leased, often by people with advance degrees after their name but not much business savvy, they think " what the heck, just roll the added cost of an option into the lease payment". As a result the cars that are here on the ground are loaded with options of dubious value.

    Want an example? The "Premium Sound" package for $1800 adds a couple of speakers, a woofer, Sirius radio and your mobile phone is "prewired." I have never seen a 7 Series without this. Whats the big deal? Well, those three speakers and a woofer just cost you $66 per month for your three year lease. (Who needs a 'prewired phone' when you can hold your cell phone in your hand?).

    Or maybe, the car you like has the Luxury Seating package? Again, I have never seen a new 7 Series in New England without this $2000 gem. This option has a massage feature, some ventilation, and a button to push that does something to the bolsters. I figure that the average owner will use these features exactly once, unless he lives in South Texas and really needs the ventilated seats. Again, for a $2000 option you are going to pop $66 bucks a month on a three year lease.

    Now, don't get me started on my last example. For $600 BMW will ceramic coat the I Drive knob. The fact that you hardly understand how to work the I Drive is beside the point. This little bit of coating is going to cost you roughly $40 per month for 36 months.

    What is particularly galling about this, is that the Aurtomatic Roll Stabilization , the one option that you probably should pop for I have never seen available on a dealer's lot. While it was standard on many 2010 750's , BMW decontented the car and it is now an option. But because it probably doesn't sell well, the dealers don't order cars with it . (Notice how all the Bimmers tested by the car books have this option.)

    You want to drive a 7 Series? Tell them to bring one in with zero options. You'll be happy to wait 6 weeks just on principle. Tell them that you didn't build your business or professional practice by being a dummy. Tell them that you would be mortified if a colleague ever said to you, "Bernie, you are paying $40 a month for a coating on a knob you can hardly use?. Don't you remember when we came back from Vietnam and went to school on the GI Bill that we rented a house off campus for $40 a month?"
  • Hi mrhoni. BMW does not offer support on 60 month leases. The longest its special lease money factors are available for is 42 months. That's really the longest that anyone should lease a BMW for.

    BMW FS' current 42 month buy rate lease money factor for the '11 740i is .00210. That's equivalent to an interest rate of around 5%.

    BMW is providing 1.9% conventional financing on the 2011 7-Series right now. For whatever reason, its lease program just is not as aggressive at this time.

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  • jimmy24jimmy24 Posts: 10
    Dear Car Man,
    All the discussion on residuals and factors hurts my fat head. In dummy terms, what is a reasonable payment on a 2011 750i for either 36 or 42 months w 15k/year? Thanks,J
  • nik11nik11 Posts: 8
    In TX - Is this good deal ( I ahve been working wiht local dealer)- 2011 740i Sapphire Black with M sport package for $74,500 (before TT&L) - will likely lease (15,000K and 36 months)just trying to finalize price first.

    Have perfect credit what would be fair monthly price on this and what is a good money factor?

    Also having dilemma choosing wheels - like the 19 inch on M sport (only reason going with the M package) but also considereing the 19 inch radials or 21 inch ferric grays. Any downside with 21 inch on the 7 series?
  • kyfdxkyfdx Posts: 29,146
    Any downside with 21 inch on the 7 series?

    Massive tire replacement cost?

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  • I know what you mean, jimmy24. Still if you don't understand how leasing works, it probably would be in your best interest to check out the following informative articles on the subject that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In short, the easiest way to get a good deal on a leased vehicle is to shop around for the lowest possible selling price and then have the dealer that you decide to go with calculate your vehicle's monthly payment using its buy rate lease money factor.

    If you provide me with the MSRP and approximate selling price for the 750i that you're interested in I would be happy to use BMW's current lease program to work up a payment for you.

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  • nik11nik11 Posts: 8
    Car_man,

    I am in process obtaining black 2011 740i with 19 inch radial spoke wheels only- MSRP $72,800 the selling price $69,600.

    What would my payments be using the current BMW lease program (I have perfect credit).
  • Hi nik11. Let's crunch some numbers and see what we come up with.

    According to my calculations, if you were to lease a 2011 BMW 740i that has an MSRP of $72,800 and a selling price of $69,600 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $1,052.

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This discussion has been closed.