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BMW Z4 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
Hi everyone. Please use the following discussion to post any questions that you have about leasing a BMW Z4. Thanks.

Car_man
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Comments

  • Any word on the September incentives and lease numbers on the '05 Z4?

    Roxy
  • Hi Carman:

    I have never leased a car before and checked with the BMW dealer in my area (St. Petersburg, FL) and they told me they have a lease "deal" as follows: BMW Z4 2.5 @ $329.00 per month based on MSRP of $36,270.00 @ 24 months/10,000 miles per year with 4,462.00 required at lease inception.

    From reading your other posts I've learned that the money factor and residual the dealers use can make a huge difference in what you end up paying. Can you tell me what money factor and residual I should be considering based upon the information I have posted. I would consider 24 or 36 months to lease. I would also consider 10,000 or 12,000 miles per year for a 24 or 36 month lease.

    They also have the BMW Z4 3.0 for $359.00 MSRP $43,770.00 @ 24 month/10,000 mile per year lease with $4,454.00 due at lease inception.

    :)
  • Hi foxyroxy. 24 months is definitely the way to go if you want to lease a 2005 BMW Z4 this month. BMW's lease money factor for 2 year leases is half of its factors for other terms. If you were to lease a 2005 BMW Z4 3.0 or 2.5 (their programs are the same) through BMW Financial Services right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00100 and 65%, respectively. The factor for an otherwise identical lease with only 10,000 miles per year would be the same, but its residual value would be 1% higher.

    Car_man
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  • Dear Carman:

    Thanks a million! I really appreciate your help. :)
  • Hello...can you provide the residual and money factor on a 4-year lease of an 05 Z4 3.0, driving 12K miles per year? Many thanks!
  • Hi, Car_Man,

    Are lease factors on all BMW models lower for 24 months, or just the Z-series? Any other incentives/deals I should look at?

    (I am trying to compare September lease deals on the 3-series, 5-series, and Z-series to determine which is the best value. I will go with the 3-series unless I can find a great deal on the base 5 or Z.)

    Thanks for your help.
  • vsaxenavsaxena Posts: 201
    The Z4 and the X3 have great 24 month lease rates. I think you can lease a Z4 3.0 which stickers at $47K for around $450/pm (no cap cost reduction) for a 24 month/10KM/yr lease if you negotiate well ($1000 dealer profit). There are no special rates for 2006 3/5 series

    2005
    Z4 2.5i Convertible

    24 mo/15k mi – 63% Residual Value – Money Factor .00100 Base Rate
    36 mo/15k mi – 56% Residual Value – Money Factor .00200 Base Rate
    48 mo/15k mi – 38% Residual Value – Money Factor .00280 Base Rate
    60 mo/15k mi – 31% Residual Value – Money Factor .00280 Base Rate

    Z4 3.0i Convertible

    24 mo/15k mi – 63% Residual Value – Money Factor .00100 Base Rate
    36 mo/15k mi – 56% Residual Value – Money Factor .00200 Base Rate
    48 mo/15k mi – 36% Residual Value – Money Factor .00280 Base Rate
    60 mo/15k mi – 30% Residual Value – Money Factor .00280 Base Rate
  • kyfdxkyfdx Posts: 27,923
    You don't want to lease a Z4 for 48 months... All of the lease support is on the 24 month and 36 month leases... It would cost much more per month to go with a 48 month term...

    Z4 3.0i

    24 mo/15k mi – 63% Residual Value – Money Factor .00100 Base Rate
    36 mo/15k mi – 56% Residual Value – Money Factor .00200 Base Rate
    48 mo/15k mi – 36% Residual Value – Money Factor .00280 Base Rate

    Add 2% to all residuals for 12K mi./yr...

    regards,
    kyfdx
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    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • I need help here figuring out how much a lease payment should be. Assuming that I negotiate the price of my Z4 with options down to $37000 for the car.

    then I want 36 months, 0 down, and 15000 miles per month.

    Assuming that I can get those terms what should my payment be based on the car price of $37000

    Thanks for your help!
  • kyfdxkyfdx Posts: 27,923
    You are missing one variable in the calculation.. What is the MSRP of the car in question?

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • The MSRP is $41095. Assuming I get the price down to $37000. Then 0 down 36 months and 15k miles per year....what should the payment be?

    Thanks
  • kyfdxkyfdx Posts: 27,923
    $528/mo. + tax..

    Due at signing: 1st pymt, security deposit, title/license.. Approx. $1400-$1500 total, depending on your local fees..

    I rolled the $625 acquistion fee into the cap cost, resulting in a cap cost of $37,625...

    Actually, considering the $2500 dealer incentive, I would be shooting for a price about $1000 lower than that... At a selling price of $36K, the payment would be $498/mo.+ tax.. with the same upfront..

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • You're very welcome foxyroxy.

    Car_man
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  • Thanks for the help vsaxena. You're right, 24 months is definitely the way to go if one was to lease a 2005 BMW Z4 this month. One minor correction to your post though, BMW FS' buy rate is only .00200 for leases up to 42 months, not .00280.

    Car_man
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  • Hi CarMan & kyfdx,

    I have been negotiating a lease on an '05 Z4 2.5 as follows:

    12,000 mile per year, Money Factor of .00100, Residual of 65%. Based on the MSRP of $35,745.00 (including destination charge), a Base Cap Cost of our agreed on price of $31,695.00, 65% Residual of $23,234.00, .00100 Money Factor, 24 month term and 7% Tax, my calculations show a payment of $407.47+ $28.52 Tax per month.

    I just received the following email from the salesperson and I am confused as to what the "buy" rate and "sell" rate means:

    Our “buy” rate is .001, we sell the money at .0014. We also “roll” the $675 acquisition fee into the deal rather than charging it as part of the start up cost. As a result, the payment is $458.51 plus tax for a total of $490.61. The first month is collected up front plus security deposit, tag and fees for a total of $1,244.77. You have $1,000 on deposit, so the total amount due at signing is $244.77. I have re-written the buyer’s order. When would you like to stop in?

    Is he just trying to sell me on a higher rate by saying the .00100 rate is his "buy" rate? Or is the .00100 rate really unavailable? Ive seen it referred to as a "Base Rate", but I'm not sure what that means.

    Please help, I was ready to go in and sign but now I'm not so sure.
    :confuse:
  • kyfdxkyfdx Posts: 27,923
    "buy rate" and "base rate" are the same thing...

    "sell rate" means they are marking up the money factor for extra profit on your deal. In fact, .0004 is the maximum they are allowed to mark it up..

    The base rate acquisition fee is $625, not $675, so they are marking that up, as well..

    Rolling the acquisition fee into the lease is a good thing... it is less you have to pay upfront, so nothing wrong with that...

    To put a number on it, the money factor mark-up is adding $22-$23 per month plus tax to this deal...

    It looks like your tax rate is 7%... If they use the base rate and the base acquisition fee, then your payment would be about $434/mo. plus tax, or about $465/mo tax inclusive....

    So, about $25/mo. less than his number...

    regards,
    kyfdx
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    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Dear kyfdx:

    I have to compliment you and Car Man. I'm incredibly impressed with and very grateful for the professional assistance I have received on this web site. For someone like me who knew absolutelyl nothing about leasing, being able to ask someone who does makes all the difference.

    My sincere thanks to you both for all of your help!

    :D
  • kyfdxkyfdx Posts: 27,923
    foxyroxy.... You are very welcome!!

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hi All

    I have a couple of questions about a lease on a 3.0 Z4.

    First about the price:
    - Hendrick BMW in Charlotte NC is selling this with MSRP about $47k (Premium and Sports packages, Xenon lights and heated seats and manual transmission).
    - According to Edmunds price, invoice is about $43k and others are paying about $41.5k.
    - What is a reasonable price to expect to pay?

    Second about lease numbers:
    - it sounds like a 24 month lease is the way to go these days
    - I was offered a money factor of 0.00155. Can I reasonably expect to negotiate down to the 0.001 money factor? Is there something I can do to encourage them to offer it?
    - They did confirm the 65% 12k mi and 63% 15k mi residual values
    - What final lease payment should I expect?

    Thanks!
  • As a continuation of my last message, I received a competing quote for a similar Z4 from Newsome Imports of Florence, SC. Details:
    - Money factor of 0.0014 - they won't budge on that. They acknowledge that BMW finance is offering 0.001, but they are holding on to their markup
    - They are adding a doc fee of $299 and acquisition fee of $825. Are these reasonable?

    Please help!

    Thanks
  • You're welcome foxyroxy. Thank you for the kind words :D .

    Car_man
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  • Hi thewyz. Given the fact that BMW is currently providing $4,500 dealer cash on the 2005 Z4 3.0, you should be able to get one for well below dealer invoice. Shoot for $39,000 to $39,500 on the car that you are interested in and see what happens. For additional feedback on how much you should pay for this car, make sure to stop by the following discussion: "BMW Z4: Prices Paid & Buying Experience".

    24 months is definitely the way to go when leasing a 2005 Z4 right now. BMW's money factor for that term, .00100, is half of what it is for longer leases. You absolutely should insist that the dealer that you are working with use BMW's buy rate money factor to calculate your car's lease payment. Remember that your factor will be a little higher if you opt to have your security deposit or acquisition fee waived.

    Using BMW's base lease program for this car, an MSRP of $47,000 and a selling price of $39,500, I estimate that it should have a 24 month, 12,000 miles per year, zero down, pre-tax monthly payment of around $482.

    Car_man
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  • Hey thewyz. Not only is the second dealer that you got a quote from marking up your car's money factor quite a bit, but they are also marking-up BMW Financial Services' base acquisition fee by $200. I personally would not do business with them unless they budged on these two items.

    Car_man
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  • Thanks Car_man - that's great information.

    I've contacted four dealers in the area (first 4 within 100 miles) and they all insist that the MF and acquisition fee markup is "standard" and that all deallers add to it.

    Any advise on how to be more persuasive? Is it possible to deal with BMW finance directly instead of going through the dealer?
  • Car_Man:

    Need your help. Looking to lease a Z4 in Oklahoma City. No other dealer within 100 miles. The MSRP is $47,994. They are offering .0014 money factor. Appears they have marked up money factor from other messages. The MSRP is $47994, and agreed to a purchase price $41,494, approx. $2500 under invoice. They are offering $560 per month (after some negotiation) for 24 month lease, 10k per year , with following down; first month ($560), security ($600), tax, title, and license ($1575, OK charges 3.25% use tax on full value of vehicle, whether leased or purchased), for a total of $2675 down at time of purchase.

    It sounds to me getting the money factor at .001 would save about $25 - $30 per month. It appears you believe I should get another $1000 off price. That all taken into consideration, what do you think a fair lease is, with the down payment shown above, considering I would have to go to Dallas to deal with another dealer.

    Thanks
    Frank
  • vsaxenavsaxena Posts: 201
    BMWFS is not a direct lender so you can not go to them directly. You can get competing quotes from leasecompare.com to get the dealers to reduce their markup.
  • No problem thewyz. Unfortunately, you cannot deal directly through BMW Financial Services. You have to go through a BMW dealer to lease your new Z4. The marking-up of vehicles' lease money factors is not required by BMW. While many dealers mark factors up, if it comes down to selling a car or not selling a car most will do away with the mark-up and use the buy rate money factor to calculate a vehicle's payment.

    Car_man
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  • Hi Frank. The fact that there are no other BMW dealers within 100 miles doesn't help your bargaining position any. As you seem to already be aware, it appears as though there is some money factor mark-up going on with your deal. $2,500 under dealer invoice would be a great deal for a 2005 Z4 2.5i because there is only $2,500 dealer cash on it right now. However, it looks as though you are getting the 3.0L model. BMW is currently providing $4,500 dealer cash on the '05 Z4 3.0i, which means that you are really getting this car for around $2,000 over invoice. I suppose that this isn't bad given the lack of competition in your area, but I have definitely seen better deals on this car.

    Car_man
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  • First of all, I would like to thank everyone for their valuable information that we all can learn from......

    Secondly, I need some numbers and opinions.......

    This is what I want to order -
    2005 Z4 2.5i
    Toledo Blue Metallic (Exterior)
    Beige leather (Interior)
    Light Popular Grain Wood Trim
    Black fully-auto soft-top
    Power front seats
    MANUAL TRANSMISSION
    Wind Deflector

    This is the dealer's offer:
    $34,365 plus Tax 6%, New tag retail $250.00, Transfer $150.00, Dealer Fee $379.50, Lemon Law fee $2.00, Tire,Battery fee $6.50. If you Lease there is a Lease Fee of $70.49 to the State of Florida.

    Questions:
    1- what amount is the sales tax applied to (cap cost, lease cost, etc.)?
    2- what are the residual values for 36, 39 and 48 month leases? what should money factors be, respectively?
    3-TMV 'What Others are Paying' is $35,106. Is this a good deal?
    Thank you!
  • My apologies for not checking this forum in its entirety... you do not need to post the residuals and money factors again! I found them in a previous message. :blush:
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