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2013 and earlier BMW 7-Series Lease Questions

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  • dxhanrahandxhanrahan Posts: 2
    I have a deposit down on a Alpina B7. The car arrives today. I want a 3 year lease with 15k miles per year. The dealer is telling me the BMW money factor is .004 and it is because these cars are so limited. He is also telling me the residual is 49%. Does this sound right to you? Can he offer me alternate lease companies besides BMW Financial?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi dxhanrahan. BMW is not currently providing any lease support on the B7 Alpina. As a result, if you were to lease one through BMW Financial Services, you would have to use its standard lease program. Even so, the money factor that you were quoted sounds a little high to me. BMW FS' buy rate standard money factor varies by region, but it should be in the .003XX range, probably more like .00320 to .00350 rather than .00400. I'm sure that the dealer you are working with is trying to mark BMW's buy rate up to add additional, hidden profit to your deal. This practice is very common amongst BMW dealers. See if you can get the dealer that you are working with to use the buy rate to calculate your car's monthly payment.

    Car_man
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  • Thanks. I ended up getting a .0035 factor after working them on it.
  • stddevstddev Posts: 1
    I've looked everywhere for an answer to the following question. I'm hoping someone here can answer.

    Here's the situation:
    I'm coming to the end of a 42-month lease on a 2004 745Li. It's in perfect condition with VERY low mileage -- 17K miles (the lease was written for 35K over the term).

    Here's the question:

    Is there any way that I can monetize the extra "value" from the low mileage when I go to replace the car with a 2007 or 2008 7-series.

    Thanks
  • dimpledimple Posts: 1
    I'm trying to lease BMW first time and need help.

    I got final negotiation result for follows. Please advise whether I need to negotiate more or accept it.

    1. M.S.R.P. include options ($86,690)
    2. 36 month lease with 15K mile/year
    3. $2350 down (first month, registration fee)
    4. $1300 security deposit
    5. Monthly payment: $1,203 plus tax (7.75% S.Calif.)
    Total $1,296/month

    I will appreciate your comments.

    Thanks,
  • memdememde Posts: 1
    I am negotiating on a new 750Li and need help with what I should expect on a fair money factor

    MSRP: $88,000
    Sale Price $82,000
    Resid value 58%
    Term: 36 month
    Miles: 15K per year
    money Factor: .0031

    From what I have read it appears that this money factor should be closer to .0023 to .0025

    I am in Houston, TX and need some advise...Please help!!!!

    Memde
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi dimple. You never mentioned the selling price of the 750Li 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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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're in luck, memde. BMW recently enhanced its lease program for the 2007 7-Series. In addition to lowering its buy rate lease money factor to .00250, BMW introduced $3,500 dealer cash on leases of it. You definitely should renegotiate this deal, taking these new, enhanced incentives into account.

    Car_man
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  • bmwca1bmwca1 Posts: 1
    I am shopping for a 750Li 36mo 15K lease. I had an offer for 0.0031 MF and $2k over invoice in No. CA in April 2007.

    Car_man, what would you recommend for a target cap cost and MF? (MSRP/INV incl dest is $84,375/$77,640) in light of the new incentives. The dealer told me that the incentive is only for buying not leasing, true?

    Thanks for your help

    bmwca1
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi bmwca1. Waiting to get your 750Li certainly worked to your advantage. BMW is providing a ton of lease support on this car right now. Not only is its money factor lower now than what you were quoted, .00250, BMW is providing a $3,500 dealer cash incentive on leases of it. The person who told you that this cash incentive is only available on purchases, not leases, was either confused or lying. If I personally was in the market for this car, I would shoot for a selling price of around $2,500 to $3,000 under invoice and see what happens.

    Car_man
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  • Hi Car_man. I'm a bit confused and just wish to have something clarified. I'm currently looking at a 750Li that lists for $86,750. I've not started negotiations yet but the salesman did say he'd "work some good numbers for me." I had told him I just came from the Lexus dealer down the street and not sure if I wanted to go with the LS460. That may have had something to do with it. However based on your reply, he obviously has room to play and thus may explain things. But one question: did you mean to say $2500 to $3000 UNDER invoice??? The person you were responding to mentioned a couple grand over invoice, so are you suggesting they could get close to $5000 more off, PLUS the cash AND financing incentives? Please explain for I think I may make a move this week. Thank you so much. You've been very helpful.
  • Hi atb84. In areas that have a decent level of competition, it may indeed be possible to get a new 7-Series for below dealer invoice because A) BMW is not providing a special $3,500 dealer cash incentive on leases of it through BMW Financial Services and B) it is not selling very well right now. Shoot for a selling price that is as close to dealer invoice as possible (above) and them have the dealer subtract the aforementioned cash incentive.

    Car_man
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  • I was just quoted the following:
    MSRP-83,470
    Selling Price-80,260
    Invoice (according to dealer is 77,260)
    3500 applied as cash down on lease
    24mos-1327, residual-68%- drive off- 1395- first and DMV
    36 mos-1243-residual-58% - drive off- 1311-same as above
    money factor .00250
    Both include tax in payment (suffolk Co NY- 8.3/4?)

    Questions: Is applying the cash back as down payment the most advantageous to me as far as lowering monthly payment?

    He ran the numbers on a "car he had in stock". I didn't get the particular equipment yet. Does that retail seem like a normally equipped car? I will check but I don't think I need a lot of extras as the "standard" model is so loaded". My goal is to get a low payment.
    Do you think I could do better?
    Are they reliable now? I know the first 2 yrs were nightmares for some. I am also considering the 535 which is much cheaper for essentially the same tech toys (maybe more advanced actually-traffic warning nav, Head Up display, faster etc)but I've grown used to a "big car ride" and I'm coming off lease of an LS430. So if I can get a great deal on a 7, maybe I would step up an extra 2-300 per month over a 535xi (lease structured the same way as above on that is about 935 for 36 mos for a loaded car). I was looking to be around 1100 for a 7. Do you think it's possible? (by the way your post above says "BMW is not providing" when I think you may have meant to say "now providing")
    Thanks,
  • Oh, just one more thing: this is listed on Edmunds as the "incentive" lease program. How does this stack up?
    Thanks

    Leasing
    Start: 09/01/2007 End: 10/01/2007 $919 Monthly Payment
    36 Month Term
    $3500 Down Payment
    $919 Security Deposit
    10000 Annual Mileage
    Restrictions Lease is based on a 2007 750i Sedan.
    Comments $5338 due at signing. Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.
  • Did you ever try working with an independent leasing company/broker? I hear some people getting good deals from them.
  • where do you find them?
  • Hello Topsin628. I'm thinking we should keep in touch for I'm going through a similar process. Reviewing the numbers you show a couple messages back I'm a bit troubled however. According to Edmunds, you're invoice should be more $76,815 (assuming the following options: lux. seating, convenience pckg., sirius radio and destination). Check it out. Now you may be fine with that, but I'd be concerned with the integrity of the salesman/dealer if he/she has told you the invoice is one thing and its actually another. I'd try to find out which is true. Either way, you're doing better than me. On a 750Li listed in the VA/DC/MD area for $87,920, 10k mi/yr; the dealers first offer was: sales price $83,120 (not incl. rebate of 3500), $8084.21 down, and $1084.21/mth ($1105.95/mth for 12k mi/yr). He's at least $2k over invoice. I'm not even sure I want to counter b/c I feel its an insult. I'm working w/ 2 others and should get numbers from them tomorrow. I'll keep you posted. Please do the same. Good luck. Anyone else, please feel free to comment, advice, etc.
  • I'm working w/ 2 others and should get numbers from them tomorrow. I'll keep you posted. Please do the same. Good luck. Anyone else, please feel free to comment, advice, etc.

    The 750i was an 82K car and they want 3K over invoice. For the 535 they are working on 1800 over. Surprising to me that the better selling 5's would be lower profit. I haven't really begun to negotiate yet so if I decide to go for the 7 I will push to see where they really are (don't forget, there is 3500 rebate money back that they were applying as a down payment on the lease price but they were still making the 3k on the car per that deal).
    Also, if you are a current BMW client you get a better money factor (I don't qualify) that drops the payments about 40 bucks a month on the 5 and 7. Let me know how you do and I will do the same.
    Thanks
  • Hello Car_man. First of all great forum. Its my first time leasing a car and so I have questions if I may please.
    Info: 2007 750Li with sport pkg; lux seats; rear ent; night vision; premium sound; 19" tires; convenience pkg; comfort access; power rear shades; sirus radio. I drive a lot so I've asked for 25k miles/yr. Here is what I was quoted in central Ohio for a 3 year lease:

    MSRP $ 94,055
    Residual $ 48,551
    Adj capital cost $ 91,900
    He said he came up with the price as follows
    $ 91,055 selling price
    ($3,500) rebate
    $ 725 bank fee
    $ 3,865 sales tax
    $ 91,909 adj cost
    Payment $ 1,604 per mo. ($ 1,103 dep; $389 finance; $100& change tax).
    Factor .00285
    Due at sign: $1,915 (first pmt + lic plates + tax on $ 3,500 rebate).
    Warr: 4yr/50k.
    Ext warr: $ 3,875 for additional 50k since I"m going to be driving about 75k miles in 3 years
    Does not cover maint so that is an extra $ 1,895 for 6yr/100,000 miles

    Lastly the other option was to lease it for 2 years to stay in warranty and payment changes to $ 1,718

    The comparison on Edmunds shows invoice of $ 87,665 and what others are paying in the area at $ 91,439.

    Any feedback would be greatly appreciated. Thank you in advance for your time.

    Go Bucks!!!
This discussion has been closed.