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BMW Z4 Lease Questions

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  • topspintopspin Posts: 7
    Anyone try leasing a Z4 Coupe 3.0si yet? Couple weeks ago I was being quoted $900+ for 36mos /15k /$1500 drive off (res 50% / .00315 mf) I think the msrp was around $46,000.

    Anyone?
  • ragster07ragster07 Posts: 3
    Spoke to a dealer today and here is the deal I managed to negotiate out for a 30-month, 10000 miles/yr lease on a 3.0i 6-MT with Metallic Paint, Premium Package and Premium Sound System.
    MSRP: $40845
    Base Cap Cost: $37350 + $695 (acquisition fee) = $38045
    Down Payment: $200
    Net Cap Cost: $37845
    Residual: 66%
    Money Factor: .00115
    Monthly Pay: 437.43 + tax
    Drive-off: $1876

    Is this good enough to go for it? I'm new on the leasing front, and would appreciate any advice. Thanks.
  • lokentlokent Posts: 5
    You should be happy. You got a great deal on an amazing car. Many may prefer a 24 month lease to a 36 month lease and would jump at the opportunity to get such a great deal.

    This is great information to know.

    Regards,

    Lewis
  • juanito1juanito1 Posts: 15
    Still looks like a good deal but i think they're getting you a bit on the residual. As i understand from Carman, the 15k/yr has a residual of 65%. 12K@ 67% and 10k@68%. So you have a few pts of negotiating it seems.
  • lokentlokent Posts: 5
    I don't think this is a very good deal...

    It has been possible to lease a similarly equipped 3.0si (MSRP around $48,000) with a 36 month/12k mile lease for around $465/month (before tax) with a similar dive-off.

    You could probably get a little better deal on a 10k / year lease. The captive money factor for the 3.0si has been much better than the 3.0i and in my opinion is the best option for a lease.
  • wt1257wt1257 Posts: 2
    I'm looking to lease an 06 Z4 and wanted to clarify on the going money factor and residual rates. Car_man stated a whlie back that the MF for a 3YR/10K lease was .0009 with a residual of 60%. Is this still the case and how much do these change with by bumping the lease up to 12K a year?
    What about moving to a 2.5YR lease? Also, is the $1800 dealer cash still being offered?

    Finally, here has been much discussion about paying sec. deposits instead of actual money down...do these additional sec. deposits change the residual rate?

    Great discussion here and this has been really a lot of hepl already. Thanks.
  • BeamerManBeamerMan Posts: 64
    Well Carman you helped me get this 04 z4 and now maybe can help again. OK here we go. I have 12 months remaining at 547.00/month. I only have 12,000 miles on the car,broke my wrist a year ago. The buyback is 25,000.00. What would you do? I understand if I buy it back I would pay 5 percent taxes again. I live in Maryland. I also hear d I could trade in for the equity. Right now the car books for 32,500.00 so I could have 7000.00 in profit if I sold it. The car is primo. kept in a heated garage and detailed every 4 months. Please give me your usual excellent advice.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dantm. It is difficult for me to say what the advertised lease that you saw includes without actually taking a look at it. Having said this, given its unbelievably low monthly payment I think that it is safe to assume that the entire $2,800 is a capitalized cost reduction and that you would still have to pay your car's first month's payment, security deposit, and acquisition fee on top of that.

    You would be better off making additional security deposits on your lease than making a large down payment. BMW Financial Services allows consumers to make up to seven additional deposits on leased vehicles. Each additional deposit lowers your car's money factor by .00007. The lower your vehicle's money factor is, the lower its monthly payment will be. The advantage of making additional security deposits is unlike down payments you actually get your deposits back at lease-end.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dantm. You are correct, BMW Financial Services allows its lessees to make up to seven additional security deposits on leased vehicles. Each additional deposits lowers the money factor that is used to calculate your vehicle's monthly payment by .00007. The lower your vehicle's money factor is, the lower your monthly payment will be.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi bgoldman. The money factor that you were quoted is right in line with BMW FS' buy rate for this car. This is a good sign because it means that the dealer that you are working with is not trying to mark your car's money factor up to add additional, hidden back-end profit to your deal.

    The selling price that you were quoted for this car isn't bad. It is difficult for me to say exactly without knowing how it is equipped, but I suspect that it is probably around $500 to %600 under dealer invoice. Ordinarily $500 under dealer invoice would be an outstanding price, but BMW is currently providing $2,000 dealer cash on 2006 Z4 3.0si models. This means that your price is more like $1,500 over dealer invoice. 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".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello topspin. I really like your choice in cars, which is funny because I hated the previous generation Z3 Coupe. BMW did a great job with the new Z4 coupe. In order to tell how good a deal this is, you really need to find out this car's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without knowing this car's selling price, it will be difficult to tell how big a discount you are getting on it.

    For now I can tell you that BMW is not currently providing any sort of lease support on this car. As a result, if you were to lease one through BMW Financial Services, you would have to pay its standard lease money factor. BMW FS' current buy rate standard money factor should be right around the .00315 that you were quoted.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ragster07. The dealer invoice price of the car that you described is around $37,225. This means that you are getting your car for right around dealer invoice. This is an OK price, but given the $1,800 dealer cash that BMW is currently providing on this car I personally would shoot for a price that is a little lower. Also, the money factor that you were quoted for this car is a little high. BMW Financial Services' current buy rate lease money factor for the 2006 Z4 3.0i is only .00090 with the payment of a security deposit at lease signing. Make sure that the dealer that you are working with uses this factor to calculate your car's monthly payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm glad that you have enjoyed this discussion so much, wt1257. BMW's lease program for the 3.0i and 3.0is are different. The program that you mentioned is still valid for a 36 month lease of an '06 Z4 3.0i roadster with 10,000 miles per year. If you were to lease with 12,000 miles per year instead of 10,000 miles per, this car's residual value would be 1% lower. BMW is still providing $1,800 dealer cash on '06 Z4 3.0i roadster models and $2,000 on 3.0is roadster models.

    Making additional security deposits on a leased vehicle has no impact upon its residual value. Instead additional deposits lower vehicles' money factors. Specifically, BMW FS will lower your vehicle's factor by .00007 for each additional deposit that you make, up to a maximum of seven additional deposits.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome back, BeamerMan. I;m sorry to hear that you broke your wrist. I hope that you are feeling better now. How far under your car's total mileage allowance are you? I suspect that you are quite a bit under it. At first glance I have a feeling that you probably would be able to buy your car and either sell it on your own or trade it in on a new vehicle and make a little money in the process, but you probably should stop by the following discussion and get the opinion of the community members who hang out there as well: "Real-World Trade-In Values".

    Car_man
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    P.S. I'm jealous of your heated garage :)
  • topspintopspin Posts: 7
    Car_man,

    Ya the car is beautiful...but that payment is just ugly. =)
    They won't budge from MSRP. I guess i'm just going to have to wait.
    I might just go for a quick 12 month Infiniti G35 lease and see if the numbers improve next year.

    Thanks for the reply...Cheers!
  • lalakrsfanlalakrsfan Posts: 44
    Seems to be a great time to lease a new Z4. I would have never expected that BMW would be so aggressive on pricing and lease deals. My wife has had her eye on a Z4 for awhile and when I saw the deals people we getting I couldn't believe it.

    Here is the deal I negotiated today over email/phone with a SF Bay Area dealer. Lucked out that they had the car with the exact options and color we wanted

    - '06 Z43.0SI: MSRP $49,345
    - Incl. Sport, Premium, Steptronic, heated seats, Xenons

    Offered $44,210 and to my surprise they accepted without any haggling. 24 mo. lease with 71% residual and .0009 money factor, the payment is $453.61 + tax. The MF seems to be the only one they are giving me trouble on, as from what I have read here on the board it should be .0005. Is this correct?

    We are also considering buying down the MF. If my math is correct, I can make 7 security deposits totaling around $3100, and this will save me about $40 per month on the payment. I don't think I could find a better and safer investment that would pay that kind of interest. Am I missing something here?

    All in all, seems like a pretty sweet deal and we plan to drive the 2 hrs to the dealer tomorrow afternoon to pick her up.

    Any suggestions on how to get them to move on the MF rate if it should indeed be .0005?
  • how much should I expect to pay to lease a Z4 3.0i MSRP of 42395 for 36 months and 15k miles per year. What should I be shooting for in regards to price and terms? I am leasing this car in south Florida.

    Thanks
  • BeamerManBeamerMan Posts: 64
    Thanks Carman. My allowed mileage is 45,000 miles and I have 12k. What do you think? Beamerman.
  • juanito1juanito1 Posts: 15
    Do you mind sharing the name of the Bay Area dealer? My local dealers are pretty arrogant since they are the only game in town and I'm willing to drive to the better deal.
  • matthewsjlmatthewsjl Posts: 11
    What was the cash due at signing. If zero cash down, that sounds like a good deal.

    My deal was $2950 down ($450 security deposit in there) and $412/month on 24 months and 10k miles. I believe the MF I had was 0.0005 but it took a single security deposit to get there.

    The only option you have over me is steptronic.

    The dealer has $1000 profit in the car over invoice less the dealer cash back of $2000.

    John.
  • lalakrsfanlalakrsfan Posts: 44
    John,

    zero cash down on the deal. Now I think I understand, the .0009 they quoted was probably w/o the security deposit. I'll be sure to get the .0005.

    I'm not sure what you meant by your last sentence. Are you saying you paid $1000 under invoice on yours?
  • lalakrsfanlalakrsfan Posts: 44
    I don't think we can mention dealer names here. You can email me using my username and @yahoo.com and I will let you know after I pick up the car tonight.
  • kyfdxkyfdx Posts: 28,455
    Dealership names are fine... Individual salesperson identification isn't.. Please read the message printed in red below..

    Thanks,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Thanks kyfdx, I somehow missed that red text!

    We live in the Sacramento area and drove down to BMW of Fremont to sign the paperwork and pick up the car. We ended up going with the 36 mo lease. I drilled the sales guy and the finance guy hard on the money factor, and they would not budge off the .0009 number unless I wanted to make additional security deposits. At that point we had driven two hours and as much as I wanted to turn a walk out the door, I couldn't bring myself to do it, not to mention that this was the only car in all of Northern Cali that had the exact color and options we wanted, and plus my wife would have been really pissed off. I knew we were still getting a good deal so I gave up and we signed the papers and drove our new baby home.

    Other than the MF issue, I was very pleased with the buying experience and would recommend this dealer to others. For future reference, any suggestions on how I could have handled the MF issue better other than the "be prepared to walk away" option? Is the MF rate based on credit score? Ours avg. out to 730, which I would think is high enough to qualify for the best rate. Any comments or advice is appreciated.
  • I didn't really look at the base price of the car in the lease screens.

    I know that the dealer only made about $800 on the car.

    Basically on the si:
    1. $2,000 dealer cash back. Effectively, this means that the invoice price is reduced by $2,000. If the dealer wants $500 profit, you'll end up $1,500 under the pre-dealer-cash-back invoice price.
    2. The lease rates on the si are better than on the 3.0i - coupled with the better dealer cash on the si makes them lease better.

    I think you got a great deal at zero down.

    John.
  • what should the residual be for 15k per year on a 36 month lease of a z4 3.0i? the money factor is .00090 correct?

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, topspin.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi slaughter5111. This is an interesting time to lease a Z4. BMW is providing very aggressive incentives on it right now, specifically an attractive lease program plus $1,800 dealer cash on the '06 Z4 3.0i roadster. Normally when a vehicle has a high level of incentives it means that dealers are probably willing to sell it for pretty close to dealer invoice. However according to a number of dealers that I have spoken with lately, there aren't many cars out there. If dealer inventory in general and specifically the Z4 is in short supply dealers might now be willing to go as low as one might initially think. You should be able to get a good idea of what sort of selling price to expect to pay for this car by visiting the following discussion: "BMW Z4: Prices Paid & Buying Experience". Once you have an approximate selling price for the exact car that you want let me know and I will be happy to estimate what its monthly payment should be for you.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Well you certainly are way under your car's mileage allowance, BeamerMan. This definitely increases the chances that it is worth more on the open market than it will cost you to buy it. Check out the discussion that I mentioned earlier to see what the community members in that area think.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Yes, slaughter5111, the money factor that you mentioned is BMW Financial Services' current buy rate for the 2006 Z4 3.0i roadster. This car's 36 month, 15,000 mile per year residual value is currently 57%. When you are negotiating your lease on it, don't forget about the $1,800 dealer cash that BMW is currently providing on it. It will help you to negotiate an attractive capitalized cost.

    Car_man
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