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BMW Z4 Lease Questions



  • dantmdantm Posts: 7
    ...initially I was thinking they came up with the lease amount by doing:

    MSRP = 35,600 (base, no options)
    - $2,800 down payment
    32,800 (which is $32,795 that they have).

    However, also on the site it says "buy this car for $32,795", so does that mean the dealer is taking this "hit" off MSRP themselves????
  • lokentlokent Posts: 5
    2006 Z4 3.0si MSRP = $48,043...

    $500/month (includes 7% tax) on a 36 month 12k miles/year lease with 1473.10 due at signing...

    Another dealership offered 475/month on basically the same car... but we had already done the deal. If you are patient, you can get great lease deals right now.
  • topspintopspin Posts: 7
    Wow...sounds like a great deal. Can you help me out with details on your lease (cap, res, mf) What dealer do you go through?

    Thanks in Advance
  • matthewsjlmatthewsjl Posts: 11
    There are great deals to be had. I got in at the end of June.

    Z4 3.0si - Premium, Sport & Xenons $48k MSRP

    Ended up at $412/month with $2950 total cash at signing (of which $450 was a security deposit). This was a 2yr, 10k miles/year lease.

    I had two dealers around the above numbers on similiar cars.

    A couple of key things during my searches:
    1. It seems the 3.0si is a better lease 'value' than the 3.0i. More toys for not a huge amount of money more.
    2. Work those dealers. Key point is to find a couple that have a car that you will take that is in their stock.
    3. Two years lease worked out cheaper than three!
    4. Walk in a few days before the end of the month.
    5. Basically, if you know roughly where you'll be just tell them where you need to be on the numbers. I walked in and said to each dealer that I needed to be no more than $3k down and under $400/month. I ended up just over but an agressive target early on cuts out some negotiation time. You'll probably need to find a car before naming the price though.

    Happy hunting. It's a fantastic car.

  • dantmdantm Posts: 7
    Can somebody let me know where I can read up on the security deposits that lower your money factor? I need to be very low on my lease cost, and will take a basic car with little options (which I do not need or use anyway).

    I read here that you can do additional security deposits (up to 7 of them) to lower your money factor, how does that work?

  • dantmdantm Posts: 7
    ...went and discussed with a dealer, then took that offer to somebody else...

    Ended up with the best quote as follows:

    Base 3.0i, no options

    - $3755 down (of which $1355 are the fees);
    - $285 per month + tax = 300 total (24 months, 10K/year);

    Basically out of the $3,755 $2,100 (300 x 7) are the security deposits to lower the MF down, so this cut down the rate to 285.

    Is it an ok deal, what do you guys think? I test drove the car and it seemed ok, I liked it but wasn't too engaged, seemed a bit sterile. It's ok though.

  • bgoldmanbgoldman Posts: 1
    I just picked up a Z4 3.0si with an MSRP of $45795. I negotiated to $41100 with a money factor of .0005 over 30 months with 12k miles/year. $0 cap cost reduction, $447/mo including tax. $2200 drive off, including a $500 security deposit, $825 bank fee, DMV, and first month's payment. Good deal?
  • lokentlokent Posts: 5
    I am not sure that the two year leases work out to be SIGNIFICANTLY cheaper than the 3 year leases if you consider the amount due at signing. In order to normalize for this effect, I typically divide the amount due at signing (less security deposit) by the length of the lease term in months.

    For example you had $2950 due at signing. $2950 less your security deposit of $450 = $2500. $2500 / 24 months = 104.16/month. $412 + 104.16 = $516/month. $2500 / 36 months = 69 per month... a savings of $35 / month relative to the 24 month program.

    So they would have had to quote you more than $447 / month (412 + 35 = 447) on a 36 month program for there to be savings over a 24 month program. (assuming $2950 due at signing for both programs)

    How much over $447 / month did they quote you for the 36 month option?
  • lokentlokent Posts: 5
    I am currently traveling in China on business and do not have access to the lease details.

    The dealership was Global Imports in Atlanta, Georgia.

    I am pretty sure that the money factor was the captive rate of .00005...

    My money due at signing included the $500 security deposit.

    I think that the residual percentage is set by BMW financial and cannot be modified by the dealership. You can find the residual % on the web for a 2006 Z4 3.0si...

    The amount due at signing was a little complicated because we paid for the $400 OEM wind deflector in the money due at signing. They gave it to us at dealer cost and I cannot remember the agreed to amount. The rest of the amount due at signing were standard fees.
  • matthewsjlmatthewsjl Posts: 11
    You're absolutely right about the two year vs three year lease thing.

    I can't remember the numbers in detail now but we tried 24, 30 and 36 months in the calculator at the dealer. It just worked out that for some reason 24 months worked out better. It wasn't much better - we're talking less than five dollars difference.

    I see what you're saying about the cash down. That's a really good way to look at it. If you then take the cash down proportionally for a two year lease, yes, it works out more expensive than a 3 year lease.

    I'm still happy with a pretty loaded 3.0si over two years for $412!

    Happy hunting.

  • 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.

  • 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.


  • 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 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.

    Prices Paid Forum
  • 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.

    Prices Paid Forum
  • 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".

    Prices Paid Forum
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