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BMW Z4 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Pam. BMW Financial Services is no longer offering leases on 2006 models. If you really want to lease an '06 M Roadster, you will have to do so through an independent bank, if any are still willing to lease one. I would not be surprised if the lack of lease support and low residual values on the '06 model made it more expensive to lease one than a similar '07 model.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey jen4227. You never mentioned the selling price of the car 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.

    Also, you need to make sure that the dealer you are working with is not marking your car's money factor up to add hidden profit to your deal. Make sure that they are using BMW FS current buy rate of .00100 (with the payment of a security deposit) to calculate your payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, delfer. It's difficult to say why the payment that I calculated is different than the one that you were quoted. Are you paying a security deposit? If you are not a returning BMW FS customer and opt to have it waived, your vehicle's money factor would be .00015 higher. That might be the reason for the difference. Or perhaps the dealer is rolling BMW FS' acquisition fee into your payment rather than charging it at signing.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi delfer. The dealer that you are working with is probably adding fees, like advertising fees, etc..., to the invoice price to come up with an adjusted number. Try not to let the dealer cloud things by adding all sorts of fees to your deal. Instead focus on the big picture, your car's out-the-door price. After all, it doesn't matter how your Z4's price breaks down if the dealer you are working with charges you the lowest total price. Compare the total selling price that this dealer has quoted you with the out-the-door prices that are being offered by a couple of other dealers in your area. If this dealer is offering the best total deal, go for it. If not, go with a different dealer.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jplz4. $1,000 over dealer invoice is a reasonable price target for this car right now. You will be able to find a number of real-world examples of how much others have paid for similar cars by visiting the following discussion: "BMW Z4: Lease Questions". Once you arrive at a selling price that you are comfortable with, have the dealer calculate your car's monthly payment using BMW FS' current buy rate lease money factor of .00125 (for a 24 month lease of an '07 Z4 3.0i with a security deposit paid at signing).

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    A $4,000 discount on this car is a good deal. Just make sure that the dealer you are working with uses BMW Financial Services' current buy rate lease money factor of .00150 to calculate your monthly payment and you're in business.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I know what you mean, dieselzaf. One could practically lease a 7-Series for what it costs to lease a 3-Series Convertible right now :surprise: . It's a nice car, but BMW is going to have to introduce some support on it eventually.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings jfryrman. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In answer to your specific questions, consumers can lease any vehicle that they want without making any sort of capitalized cost reduction aka down payment. In fact, it is in you best interest not to make one when leasing. Consumers who make down payments on leases risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered. Of course, the monthly payment for the vehicle that you saw advertised on BMW's web site will be a little higher if you eliminate the down payment, but doing so is a good idea.

    The two main aspects of leases that are negotiable are your vehicle's selling price and the money factor that is being used to calculate its payment. Shop around for the lowest possible selling price on the Z4 that you want. Once you find a price that you are comfortable with, have the dealer that gives it to you calculate your monthly payment using BMW Financial Services' buy rate lease money factor. It is important that you make sure the buy rate is being used because BMW dealers often mark BMW FS' base money factors to add additional hidden profit to deals.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi valen. You should be able to get a good idea of what the market is like for this car right now by visiting the following discussion: "BMW Z4: Prices Paid & Buying Experience". $500 to $1,000 over invoice is a reasonable selling price for an '07 Z4 3.0i roadster. As far as this car's lease program goes, BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of this car with 15,000 miles per year are .00125 and 63%, respectively.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dieselzaf. Unfortunately, BMW did not introduce dealer cash on the '07 Z4 for the month of June.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey valen. BMW Financial Services charges a $625 acquisition fee on every vehicle that it leases. Dealers do not have the authority to waive this charge. As far as MACO goes, I prefer to look at all of the fees that dealers try to add to deals other than the acquisition fee as part of the big picture. Focus on the out-the-door price that the dealer that you are working with is charging you for this car. If the total price is less than the total prices that you have been quoted by some of the other dealers in your area it doesn't really matter how it breaks down.

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  • valenvalen Posts: 6
    Thank you, Car_man.
    So I should find a dealer giving me close to monthly payment of $460 for 3.0i Convertible (MSRP$42675, Invoice$39,275, giving a dealer $500 at 63%/.00125). Does it sound right, Car_Man?
  • Hello Carman (and Everybody),

    What is your take on the offer below?

    Car: 2007 BMW Z4 3.0i, gray exterior with power top and heated seats
    MSRP: $38900
    Invoice: $35835
    Selling Price: $36335 ($500 over invoice)
    Bank Fee: $625
    Total Cap: $36960
    Res.: $24507 (63%)
    MF: 0.00125 (3%)
    Monthly payment: $455/month with tax (423+32)
    Drive-off: 334 + 455 = $789

    Is this deal OK? Do I get the right MF and Residual for the car? $500 over invoice, is it OK? Please let me know as soon as you can since I can get it today or tomorrow....

    Thanks so much!

    SpaceKing
  • valenvalen Posts: 6
    Dear Car_man:

    The dealers I contacted always try to sell what they have on their lots. Since they are motivated to sell those, I would like to prepare to negociate the contract they pitch me. Please advise buy rate lease money factor and residual value for a 30/36 month of 3.0i and 3.0si with 15k/18k miles per year.

    Thank you very much always for your great and informative advice!
  • snohflakesnohflake Posts: 2
    Hi there. I've always owned so this is my 1st foray into leasing. Yesterday (6/23) I was quoted a money rate of .00145 (w/ a $350 security deposit) and a residual of .66 based on a 36-month lease w/ 10k miles a year. So my questions are:

    1)What is the BMW finance money rate at present?
    2)When does the rate change every month? the 1st of the month? the 15th?
    2)Is .66 residual on target for 10K a year at 36 months?
    3)What should it be if I want to increase to 12K p.a. for a 36 month lease?

    oh, a non-lease question here, what is a fair % over invoice to pay based on the current z4 market?

    Thank you thank you thank you

    (I'm so excited about getting my 1st BMW I feel like a kid at Christmas!)
  • delferdelfer Posts: 29
    Hey DieselZaf

    Wanted to advise you that I got my Z4 3.0si premium+sport+navi in May, and have been SO HAPPY with my dealer, my deal, and my new car!

    I got it for about $1500 drive-offs and for $500 over invoice on the selling price, making my monthly payments $560++ a month. This was the lowest I have seen it posted anywhere, and I am DEFINITELY happier with the Z4 for this price, which could have also gotten me a 328i coupe.

    I went with Pacific BMW in Glendale -- their internet manager gave me the deal. Really pleasant and quite honest person to work with, in my opinion.

    Good luck!
  • smithy23smithy23 Posts: 1
    Hi guys, first time car buyer here :D

    I just got back from the dealership and got the following offer on a Z4 3.0i (auto tranny, power roof)

    MSRP: $39,200
    Invoice: $36,160
    Selling Price: $39,248
    Cap reduction: $37.92
    MF: 0.00165 (3.96%)
    Monthly payment: $477/month with tax
    Due on Delivery (sec deposit 500, 1st mon pay 477, upfront charges 2551.42: $3,566.40

    Thoughts? I wish they had broken down upfront charges for me. Seems a bit high?

    P.S. I live in Minnesota
  • zhamidzhamid Posts: 3
    What is the money factor on Z4 lease these days (not necessarily what BMW is giving the dealer, but what I can reasonable expect from the dealer based on excellent credit score)? Thanks.
  • zhamidzhamid Posts: 3
    Car man,
    Do you know what the money factor is now on a Z4 based on 10,000 miles / year for 36 months?
  • dantmdantm Posts: 7
    Hey Carman,

    About 11 months ago I leased a base 2006 Z4 3.0i (it ended up with non-standard paint and heated seats because the dealer had it on the lot but I was looking just for base). I don't remember what the money factor was/etc. but I ended up with a payment of 275/month + tax (just shy of 300). This was with the max. additional deposit payments to reduce the money factor. Also no cap cost reduction down (only the bank fee, first payment, licensing, etc.).

    Do they have the lease terms as good as last year for the 2007 models?

    THANKS!
  • pellynhpellynh Posts: 12
    Does anyone know the residual/MF for July? I saw BMW has a 49% drop for Z4's year to year for June so the deals should be stellar!
  • pellynhpellynh Posts: 12
    Dah! I spoke with a couple of dealers and (supposedly!) the numbers have either remained flat (unchanged) or gone UP for some models! (The Z4 remained the same)

    So much for bad numbers for the month of june... :(
  • pellynhpellynh Posts: 12
    The July numbers are out...Here's what we have for the Z4 3.0i:

    http://www.bimmerfest.com/forums/showthread.php?t=216031

    2007 BMW Z4 3.0i Convertible
    24 Month – Residual 73% of MSRP – .00125 Base Rate
    36 Month – Residual 63% of MSRP – .00125 Base Rate
    48 Month – Residual 38% of MSRP – .00325 Base Rate
    60 Month – Residual 31% of MSRP – .00325 Base Rate

    Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms

    With the 36mo rates, it is really easy to get a very well equipped model for under $399 a month with a reasonable amount down...Not too bad...might have to pull the trigger on this...
  • misterepmisterep Posts: 52
    Seems some discrepancies surround Z$ sales...here are the sales figures:

    June 07 Sales (all Z4 models) -- 834 (off 49.8%)
    June 06 Sales (all Z4 models) -- 1,633

    June 07 Year-to-date Sales -- 4,576 (off 9.8%)
    June 06 Year-to-date Sales -- 5,072

    Of note - the M Roadster is off over 50% year to year.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi valen. Using the numbers that you mentioned in your post, an MSRP of $42,675, a selling price of $39,575 ($500 over invoice), a money factor of .00125, and a residual value of 63%, I estimate that this car would have a zero down, pre-tax monthly payment of around $442.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'd be happy to take a look at the deal that you were offered, SpaceKing. $500 over dealer invoice is a very good selling price for an '07 BMW Z4. Furthermore, the money factor, residual value, and acquisition fee that you were quoted are right in line with BMW's Financial Services' current program for this car. This is a good thing because it means that the dealer that you are working with is not trying to mark your money factor or bank fee up to slip some hidden additional profit into your deal. This lease looks good to me, go for it.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, valen. Here's the information that you're looking for. Through July 31st, BMW Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW Z4 3.0i roadster with 15,000 miles per year are .00125 and 63%, respectively. The numbers for an otherwise identical lease of an '07 Z4 3.0si roadster are .00100 and 63%. 15,000 miles per year is the highest mileage allowance that BMW Financial Services publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the scheduled end of your lease and have to pay an excess mileage penalty.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome snohflake. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    BMW Financial Services' money factors vary by trim level. Its current buy rate lease money factor for the '07 Z4 3.0i roadster is .00125 for returning lessees or consumers who pay a security deposit at lease signing. It looks as though the dealer that you are working with is trying to mark your car's buy rate up a little bit to slip hidden profit into your deal. BMW's current lease program is scheduled to run through July 31st. The 36 month, 10,000 mile per year residual value that you mentioned, 66%, is right on the money. The residual value for a lease with 12,000 miles per year would be 1% lower than the 10k resid.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome smithy23. Since this is your first time getting a new car, I assume that you have never leased before. If this is the case, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    The money factor that you were quoted for this car is too high. BMW Financial Services' current buy rate for a 36 month lease of an '07 Z4 3.0i roadster is only .00125 for consumers who pay a security deposit at lease signing. It appears as though the dealer that you are working with is attempting to mark up your car's buy rate to slip additional, back-end profit into your deal. Make sure to insist that they use the buy rate to calculate your monthly payment.

    The selling price that you were quoted looks way too high as well. I have seen consumers report getting Z4s for $500 over invoice. Sure the market for this car may be different in Minnesota if there is not a lot of competition, but I still think that you can do better than full MSRP. Stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW Z4: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi zhamid. BMW Financial Services' buy rate for the Z4 varies by trim level. Its current buy rate lease money factor for a 36 month lease of an '07 Z4 3.0i roadster is .00125. Let me know if you want the factor for a different version of this car.

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