Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





BMW Z4 Lease Questions

1161719212224

Comments

  • sulimiossulimios Posts: 11
    Hey Car man:

    Went to the BMW dealer yesterday to try out the Z4si. Nice, not sure I like it as much as the '05 2.0T TT that I had, but it was pretty nice and I was hoping to get a decent lease deal.

    Already having done the research, I knew what the current residuals and rates were as well as the $3k factory to dealer incentive. This was their first offer for 2yr 10k miles per year--gave me the $3k off the MSRP and then an additional $1325 which came out to a selling price of $42,800. After doc fee and Acquisition fee (what is this?), the cap cost was $43,470. Calculating $2500 down, they had the residual at .74 and the rate at .0022 they came out with a payment of $519.95.

    I had gone in there using the Edmunds TMV value which for my area (upstate ny) was $200 under invoice. After taking into account the $3000 and taxes, and the various fees, I came out around $331/month.

    I guess my question is about where should I come out?? I mean, I realize that was their 1st offer and they will come down, but can I expect them to come down to $331/month?

    My other questions have to do w/ these various fees: Doc Fee = $45; Acquisition Fee = $625; Security Deposit = $550; Upfront fees = $170

    Are these actual fees to the dealership or is this just another area where they're making a profit?! I appreciate your wise words of wisdom car man!! Thanks.
  • sulimiossulimios Posts: 11
    forgot, the MSRP was $47,125
  • sulimiossulimios Posts: 11
    hey carman...just checking in to see if what you think!?! about my posts on 3/23
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi stef929rr. According to the latest information that I have seen, BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 BMW Z4 3.0si Coupe with 15,000 miles per year are .00210 and 52%, respectively. The residual value for a lease with only 12,000 miles per year would be 2% higher. When negotiating your lease on this car, make sure to take the $3,000 dealer cash that BMW is currently providing on it into account.

    Using the prices that you mentioned in your post, an MSRP of $45,375 and a selling price of $41,200, and the aforementioned lease program, I come up with a zero down, pre-tax monthly payment of around $602 (with 12,000 miles per year).

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dk90210. I am not sure of the exact selling price that BMW used to arrive at its advertised lease payment for the Z4, but whatever it is I suspect that you will be able to beat it. Manufacturers' advertised lease payments usually leave a little meat on the bone so to speak. It makes sense if one thinks about it. Dealers would be pretty annoyed if they advertised the best possible deals on cars or trucks. Given the fact that you are in the ultra competitive Southern California market and that BMW is providing $2,500 dealer cash on the 2008 Z4 3.0i roadster, you probably will be able to negotiate a selling price that's well below dealer invoice.

    As far as the other parameters of the advertised lease go, BMW used a money factor of .00220 and a residual value of 64% to arrive at that payment. If you were to lease with 15,000 miles per year instead of 10,000, this car's residual value would be 3% lower.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey sulimios. The money factor that you were quoted is right in line with this car's current buy rate. That is a good thing. Let's take a look at the selling price. The Z4 that you are interested in probably has a spread of around $3,500 between its full MSRP and its dealer invoice price. It is good that the dealer that you are working with is giving you the entire dealer cash allowance, but if I was in the market for this car I personally would want a larger dealer discount than $1,325. Make sure to stop by the "BMW Z4 Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar cars lately.

    The fees that you were quoted seem reasonable to me. A doc fee of $45 is very low compared to what many other dealers charge. BMW Financial Services charges a $625 acquisition fee on every vehicle that it leases. Individual dealers cannot waive this charge. In fact, many dealers try to mark it up to add additional, hidden profit to deals, but your dealer is not. BMW FS' charges the security deposit as well. I don't know what the other $170 for "upfront fees" is but if it covers things like registration, etc... then it is probably legit.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • 530iturk530iturk Posts: 16
    Get a quote from another dealer (or two) and compare; off the edmunds.com site.

    I did. I got three quotes and went with the best one. Had to travel 45 miles to get it, but it was worth it. Make sure you go through the internet manager at the respective dealer to get the best savings.

    BTW, it was from Steve Thomas BMW (North of Los Angeles).

    The money factor in your quote seems high.
  • dk90210dk90210 Posts: 5

    > Given the fact that you are in the ultra competitive Southern California market
    > and that BMW is providing $2,500 dealer cash on the 2008 Z4 3.0i roadster,
    > you probably will be able to negotiate a selling price that's well below dealer
    > invoice.


    Thanks for the tip. I noticed the Regional Adjustment of -$364 for Southern California indeed puts the TMV below invoice, but does the current $2500 Dealer Incentive also apply? So am I looking at something that is literally thousands below invoice? Or is that just the spread between the MSRP and the Dealer Invoice?

    This looks like a great time to be buying a Z4. I've finally decided on the car itself... now it's time to deal!!! :)

    Wish me luck!
  • dk90210dk90210 Posts: 5
    There is an advertisement in today's LA Times for $249 per month (10K miles, 24 months) with $3850 drive-off. I contacted the dealer (McKenna BMW) and they said the car ($40400 MSRP) is being sold for $35039, which is pretty close to your advice of "invoice + 500 - 2500 BMW incentive". (by the way, the drive off consists of $2999 cap cost reduction).

    There may still be a little "wiggle room" in there, but it still sounds like a pretty good deal... what do you think?

    :confuse:
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, dk90210. Yes, if I was in the market for a Z4 right now I definitely would try to pay well below, i.e. $1,500 to $2,000 below, dealer invoice.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • dk90212dk90212 Posts: 2
    Hi everybody. Here's a lease I'm working on. (2008 BMW Z4 Manual Transmission). After many many many attempts I finally got the dealer to send their Lease Worksheet.


    Base Price $36,400.00
    0389 Gray Softtop 0.00
    0399 Fully Automatic Power Top 750.00

    Metallic Paint 475.00


    Destination and Handling 775.00

    TOTAL AS EQUIPPED $38,400.00
    SELLING PRICE $33,790.00

    Lease Terms
    -------
    Term 24 Months
    Mileage 12,000/year
    Money Factor 2.35
    Residual Factor 73%


    Selling Price $33,790.00
    Bank Fee $ 825.00

    Total Capitalized Cost $34,615.00


    Residual Value $28,032.00
    Total Depreciation $ 4,934.21
    Capital Reduction $ 1,648.79
    Monthly Depreciation $ 205.59
    Monthly Rent $ 143.35

    Monthly Payment $ 348.94
    Tax (8.25%) $ 28.79

    Monthly Payment + Tax $ 377.73



    Capital Reduction $1,648.79
    Cap Reduction Tax (8.25%) $ 139.74
    License & Registration $ 288.75
    Documentation Fee $ 45.00
    First Payment $ 377.73
    Security Deposit $ 0.00

    Due at Signing $2,500.00


    So my questions are:

    1) Is this lease correct?
    a) Is the Bank Fee supposed to be added before the Cap Cost?
    b) If I'm paying $1,648.79 in Cap Cost Reduction, shouldn't the Cap Cost be $32966.21?
    c) Is Cap Cost Reduction a taxable item up front?

    2) Can I do better? There are some good advertised deals in the LA Times, but those are for 10000 miles per year.

    3) Is the Bank Fee really $825? I've been quoted lower from other dealers.

    4) Is the Money Factor .00235? I've seen places where it is .0021 but I'm not sure if that is for "repeat customers"

    5) Should I be concerned that it took so many attempts to get the dealer to send these numbers? I kept asking, and they said "just come in and we'll show you". Are these Lease Worksheets so sacred to them??

    Sorry for my babbling.... Thanks for all your help.
  • nyccarguynyccarguy Stamford, CTPosts: 7,663
    The Bank Fee should be $625. They're marking it up on you.

    For a 15,000 mile per year lease, the residual is 71% (so yours is 73%, right kyfdx?) and the money factor is .0022 (for 15K per year), so they are definitely markinf that up on you too. You shouldn't be putting down a cap cost reduction. Roll that $1600 into your payment.

    Powered By Honda2001 Prelude Type SH, 2011 Pilot EX-L 4WD

  • kyfdxkyfdx Posts: 29,236
    So my questions are:

    1) Is this lease correct?
    a) Is the Bank Fee supposed to be added before the Cap Cost?
    The bank fee is added on to the selling price to get the gross CAP cost.. That's normal
    b) If I'm paying $1,648.79 in Cap Cost Reduction, shouldn't the Cap Cost be $32966.21?
    The actual net CAP cost is $32,966.21... They just have a convoluted way of showing the figures..
    c) Is Cap Cost Reduction a taxable item up front?
    Anything paid upfront, that would be taxable if rolled into the lease is taxed. Otherwise, people would make $5000 CAP cost reductions to avoid taxes.

    2) Can I do better? There are some good advertised deals in the LA Times, but those are for 10000 miles per year.
    On a $40K car, 10K leases are only $17/mo. less than 12K leases. Can you do better? Not sure what the incentives are on a Z4.. If you are happy with the selling price, then there isn't a lot more room

    3) Is the Bank Fee really $825? I've been quoted lower from other dealers.
    As nyccarguy noted, the base fee is $625.. the dealer is marking it up by $200, which is the maximum allowed. That adds about $9/mo. to your payment.

    4) Is the Money Factor .00235? I've seen places where it is .0021 but I'm not sure if that is for "repeat customers"
    The base MF is .0022 for returning customers or those making a security deposit. The bump for no security deposit is .00015, making the total .00235.. So, you are getting the base rate, but would be better off making a $400 security deposit and getting .0022

    5) Should I be concerned that it took so many attempts to get the dealer to send these numbers? I kept asking, and they said "just come in and we'll show you". Are these Lease Worksheets so sacred to them??
    Most dealers don't like the buyer to get into all the minutiae, because then they start obsessing over $200 upcharges, instead of focusing on the bottom line. So.. be concerned a little, but realize that some dealers consider their inside info "sacred".

    The lease is structured pretty well.. With some tweaks (not making a CAP reduction, making a security deposit, etc.), it could be very good.

    What you really need to know? What are the current incentives on the Z4, and what is the invoice price of the unit you are looking at? If your selling price = (Invoice - dealer incentive + $1000), then you have a darn good lease deal with a little adjusting, even with the bumped up bank fee.

    Hope that helps..
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • kyfdxkyfdx Posts: 29,236
    Try it this way..

    $34,615 CAP cost (no reduction)
    $450 security deposit
    .0022 MF (lowered by security deposit)
    Due at signing = $1161 (no cap red, no tax on cap red, add sec.dep)
    Payment = $412.12/mo.+tax = $446.12/mo.

    You pay 68.29/mo. X 24 mo. = $1641 more over life of lease.

    But, you pay $1339 less upfront and get $450 security deposit back at end of lease, for a total of $1789 less.. NET SAVINGS = $148

    If you can knock the selling price down any, you'll save about $4.75/mo., for every $100 less you pay for the car..

    Good luck!

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • dantmdantm Posts: 7
    So my 2006 Z4 lease is coming to an end this summer (3 months). BMW sent me info w.r.t. different options but they won't allow me to discuss re-lease terms with them prior to 60 days before lease end (apparently because of changing residuals and money factors).

    I had some questions for the group:

    (1) is there anywhere where I could find the ballpark numbers for my car (i.e. if my lease was ending today or in 1-2 months, what would be the numbers I'd be looking at;

    (2) do they let me keep the miles if I'm under or they re-set to 0 upon the start of the new lease (i.e. if I used 15K of a 20K lease and I renew for a 20K lease, will I end up with 25K?).

    (3) in general are re-lease options a good idea?

    Any other thoughts please let me know. I had a great deal on my 2006 and I would not mind keeping it for another ~2 years.

    Thanks!!
  • joasavjoasav Posts: 2
    Hello Car_Man, Kyfdx,

    I have a dilemma. I am going to the dealer to close the deal tomorrow but don't know if I am getting the best deal.
    This is the first time I am leasing a car and I am almost come to my end in getting my Z4 3.0si. I also figure I would go with 12k miles.

    Any help on reducing the money factor or anything else to lower the monthly payment would be appreciated.

    Thanks

    South Florida - BMW Fort Lauderdale
    MSRP $50,200 (INCLUDES AUTO, PREMIUM & SPORTS PKG, XENON LIGHTS, BLACK LEATHER SEATS, M SPORTS SEATS, JET BLACK WITH BLACK AUTO SOFT TOP).
    END OF JUNE DISCOUNT $6,225
    NEGOTIATED PRICE $43,975
    TERM : 24 MONTHS
    RESIDUAL VALUE 73%
    MONEY FACTOR : .00215
    MILES : 10,000 PER YEAR

    LEASE PAYMENT : $359.00
    TAXES 6% $21.54
    TOTAL MONTHLY PAYMENT : $380.54

    DOWN PAYMENT $2,500
    BANK FEES $625
    SALES TAXES $700
    SECURITY DEPOSIT $400
    TAG $250
    1ST PAYMENT $359
    TOTAL DUE ON DELIVERY DAY $4,834
  • erdoranerdoran Posts: 8
    http://www.bimmerfest.com/forums/showthread.php?t=290404
    And read the sticky on MSDs (multiple security deposits) - do those instead of a down payment
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi joasav. Erdoran is right. You would be much better off making multiple security deposits on the Z4 that you are interested in leasing than a $2,500 down payment. Unlike a down payment which is just gone, you actually get the security deposits back at the end of your lease. Each additional deposit that you make reduces your car's month factor by .00007.

    The money factor that you were quoted looks good, assuming that you are having the security deposit waived. The selling price that you are being given on this car looks good, too. There is around a $4,000 spread between its full MSRP and dealer invoice price. Add to that the $3,000 dealer cash that is available on it and there's a total of $7,000 to work with. So you're at around $700 over invoice.

    Other than the down payment, this looks like a good deal to me.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • nazgul1nazgul1 Posts: 1
    Hi Car_Man and Kyfdx,

    I am in the process of leasing a Z4 and could really use some advice. This is my first time leasing a car and despite all the online research I've done, I'm still not sure whether I'm getting a good deal. Here are the details of the deal I'm getting:

    MSRP: 44,350
    Invoice: 41,535
    Selling Price: 39,635
    Bank Fee: 825

    Down payment: 2500 (this is negotiable, i can change this to whatever i want)

    Net Cap: 37,960
    Tax: 8.5% = 217
    License & Reg: 327.75
    Doc Fee: 55
    Security deposit: 500 (i can increase this to 8 times the sec dep and get the corresponding .0007 decrease in money factor per deposit)
    Term: 36 month
    Mileage: 10000
    Residual Factor: 63%
    Money Factor: .0022

    Lease payment: 459.28.

    Does this sound about right? Also, is the selling price around what you would expect or can I still negotiate a lower rate?
  • hannabhannab Posts: 21
    You did not say if this was a coupe or convertible, however, from the 63% residual it must be a convert.
    I am also looking at a Z4. There is currently a manufacturer to dealer incentive of $3000 on this car, so your selling price of $1900 below invoice or $1100 above dealer cost is fair. However, the current BMWFS base MF rate on this car is .00200, so your dealer is marking it up .0002, which BMWFS allows them to do, but in this soft market (that is why there is $3000 "trunk money") you should not have to accept. Also, the BMWFS bank fee is $625, so your dealer is marking that up $200, also allowed, but in this soft market, do not accept it. Otherwise it seems to me a fair deal for both you and the dealer.

    IMHO, do not put the $2500 down payment, use that money to give multiple security deposits to get a MF lower than the base rate of .002.

    Good luck.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nazgul1. You never mentioned exactly what model Z4 you are interested in, but assuming that it is the 3.0i roadster the selling price that you were quoted looks pretty good to me. It is really equivalent to around $800 over invoice after the $2,500 dealer cash and $200 acquisition fee mark-up that the dealer is making are taken into account. Just make sure that the dealer that you are working with uses BMW Financial Services' buy rate lease money factor of .00200 to calculate your car's monthly payment instead of the slightly marked-up one that you mentioned.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hello, I just signed my lease on a 2008 Z4. Will hopefully pick it up tomorrow. I am posting my numbers here since this site was so helpful to me. Feel free to critique the deal but please be kind to the newbie. I cut and pasted the earlier post substituting my numbers for ease of comparision.

    Columbus Ohio MAG BMW
    MSRP $41,950 (INCLUDES AUTO, SPORTS PKG, XENON LIGHTS, HEATED SEATS, ETC).
    NEGOTIATED PRICE $37,325
    TERM : 36 MONTHS
    RESIDUAL VALUE 63%
    MONEY FACTOR : .00116
    MILES : 10,000 PER YEAR

    LEASE PAYMENT = $337.79
    TAXES 6.75% = $22.80
    TOTAL MONTHLY PAYMENT = $360.59

    DOWN PAYMENT $2,500
    BANK FEES $925
    SALES TAXES $818.67
    SECURITY DEPOSIT $2800 = (7*400)
    TAG $86.50
    1ST PAYMENT $360.59
    TOTAL DUE ON DELIVERY DAY $5966.83

    Total on delivery is high since I paid both a down payment and 7 fold MSD. The MSD reduced total cost by $1100. I could not negotiate the down payment away since they used that to underwrite the low monthly rate, intially advertised on the BMW website at $349+tax for the base model. On Oct 28, 2008 that base rate went up to $399+tax, so I believe them when they said I had to finish this deal by the end of this month, on Halloween.
  • Congratulations on getting your new Z4, bigmoneywasted. Thanks for taking the time to share the details of your lease with everyone. If you'd like, you can also hop on over to the Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience as well. Enjoy your new ride :shades: !

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hello Car_man,

    Do you have the residual and money factor for 08 Z4 si 36 mo 15K miles? I am trying to validate numbers a dealer is giving me. Here's what I have gotten from him so far:

    Negotiated price - 43,500 (includes metallic paint, premium, sport, nav, steptronic, heated seats and zenon headlights)

    Dealer says MSRP is 50750. That only makes sense if nav is not in the car. I get 52550 MSRP and 48380 invoice from this site,.for the options listed.

    Dealer says payment will be 578 incl tax based on 60% residual 30450. and 2.3 mf from BMW financial. He says I am getting loyalty discount on car but doesn't say what that equates to. The 2.3 is also not making sense. They show purchase apr of 2.9 which would result in different mf rate, provided that is the basis.

    Hopefully you can help, my current lease is up this month Z4 i and I would be paying 20 dollars more than I pay now for my 2006 if the payment amount is correct and the car is new with more options, but I just can't get the numbers to work in lease calculator.

    Thanks in advance
  • :D Okay, I got one; another one that is. I am set to return 2006 Z4 3.0i in 3 weeks, so I went out today and got my new one 2008 Z4 3.0si. I would've gone for the "M" but I drive in too much stop and go So Calif traffic to contend with the manual transmission. This has been a great car for those of you who are wondering. Here's the deal I got today:

    Thousand Oaks, Ca - RusnakBMW
    Space Gray (options metallic paint, premium, sport, steptronic, heated seats, xenon lights, and M sport seats)

    MSRP 51,250
    Negotiated Price 43,500
    Residual Value 60% 30,750
    Money Factor: . 00230
    Miles: 15,000
    Term 36 months

    Lease Payment = 526.30
    Tax 8.25% = 43.42
    Motnhly Pay = 569.72

    Down Payment 0.00
    Sec Deposit 0.00
    Bank Fees 925.00
    Tax on Bank Fee 76.31
    License Fee 358.00
    CA Tire Fee 8.75
    1st Payment 569.72

    Total Drive off 1937.78
  • Hi choosinu. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 BMW Z4 3.0si roadster with 15,000 miles per year are .00230 and 60%, respectively. As you can see, these numbers are in line with what the dealer quoted you. A money factor of .00230 is equivalent to an interest rate of around 5.5%. That's the going rate for a lease of this model right now. Manufacturers frequently charge different interest rates for leases and loans on the same vehicle.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I just heard that BMW has released the 2009 Z4 roadster. Does anyone know what the MSRP will be and what I might expect to pay to lease one.
  • Hello all,

    Lately I've gotten the sports car itch. I was looking at taking over a lease for 600/mo. I also have to pay a transfer free of 500 and a end lease fee of 300. I was wondering what all could be negotiated when it comes to taking over a lease? Could I negotiate the payment or is that locked in by the financing company?

    I'm assuming I could get the seller to pay the fees, or at least one of the two. I've never done anything like this so I'm a wee bit lost.
  • Hi mortal1. Of course, I don't know how the particular car that you are interested in is equipped, but $600 per month seems like a lot of money for a BMW Z4. Have you compared the cost of leasing a new one with the cost of this assumption. You may find that going with the assumption doesn't make financial sense.

    The payment on the lease that you are considering assuming was set by BMW Financial Services, or whichever bank it is being leased through long ago. It cannot be altered, but people who are interested in assuming leases are often able to negotiate some sort of kickback from the individual who wants to get out of their lease, ssuch as "OK, I'll assume your lease but you have to throw in a grand and pay all of the fees."

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I am looking at a new Z4 i convertible with premium and many features but no sport. Sticker is $43,700 and I get the same number when I add up the features on Edmunds.

    Dealer offered $4,000 off the sticker right up front. This gets it to $39,550 which is under Edmunds invoice best as I can tell.

    36 month 15k lease would be MF .003 with 60% residual

    I see a November posting with a MF of .0023 for a 36/15 with 60%. Is this still valid?

    I see the $3,000 dealer incentive in November, is this still valid?
Sign In or Register to comment.