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BMW Z4 Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi dagsz4. I'm not sure if BMW would let you re-lease your current Z4 for an additional year. I suspect that they would, but I don't know that for certain nor do I know how much it would cost if you were allowed to do this.

    Car_man
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  • shw1shw1 Posts: 3
    Car_man,

    Well, I had to pull the trigger before I heard back from you. MF was 0.0035 not 0.0030. I called Leasecompare to see if they had any info for me; the woman I spoke with didn't have much info but said 35 was pretty much what I could expect. With no other info to go on I asked the dealer to assure me that he wasn't tacking on to the MF, he did, so I went with it. Oh well :( . On the other hand, I was able to get money (~ $2000) for cap cost reduction from the Z4 I turned in. On a separate but more important note.... it is ONE SWEET RIDE! I'm in love with the car. :) Thanks for the info!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Congratulations on your new car, shw1. You're right, the new Z4 is a great car. Enjoy!

    Car_man
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  • buyingz4buyingz4 Posts: 5
    Hi folks,

    I'm trying to lease a 2006 Z4 3.0i with Premium Package, Sound and Interior Leather. The MSRP is 41,500$. A dealer quoted me a cap price of 38,800$ ( a discount of 2700$). I calculated lease per month (15k miles/year for 36 months) as follows:

    a. Depreciation Cost = (Cap Cost - Residual at 57%) / 36 = ~420$

    b. Finance charge = about 130$ (at a money factor of .0021)

    So total (according to my calc.) = 550$ + tax

    A few questions..

    1) Is my calculation above correct (give or take a few)? The dealer tells me 620$ plus tax at the same MF which is way higher than my calculation.

    2) Is 38,700$ a good cap price or should I try to bring it down?

    3) What is a realistic MF? Is .0015 too much to ask for?

    Thanks thanks thanks.
  • buyingz4buyingz4 Posts: 5
    I'm very new to leasing. I used edmunds.com calculator and it gives me at least 70$ lower. I'm shocked. Even if the dealer and I agree on a MF, residual, cap price etc. the guy comes up with a much higher price. How much different can their calculation be? Please help!

    Alice
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    I come up with the same numbers that you do... About $552, using .0021 as the MF..

    The base MF is .00175, or .0019 if you don't make the security deposit..

    Some possibilities..

    1) Acquisition fee.. base fee is $625, though the dealer can charge $825.. That would add around $23/mo.

    2) Dealer is marking up the MF the maximum.. That would be .0023 without security deposit..

    At $620/mo. the dealer is obviously adding something else back into the cap cost... Both 1) and 2) would only result in a payment of $590/mo. + tax.. Document fees?, Maybe his price includes tax?

    At the base MF (.00175) and with a $625 acquisition fee added into the cap cost, the payment would be around $549/mo. + tax.. Your selling price looks great, but you may not be able to get the dealer to honor that, if he has to lease at the base rate.

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • buyingz4buyingz4 Posts: 5
    Thanks.

    Is MF negotiable?

    Could the dealer be manipulating the calculation? Or they can't do it? All I'm trying to understand is what are things that I should argue on. We already agree on the residual and cap price. What else is there to negotiate?

    1. MF?

    2. Should I challenge the way he's computing lease per month? Or is it something I should not do and simply assume he can't cheat me here?

    Totally confused.

    Alice
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    Money factor is negotiable within limits.. .00175 is the base factor.. you can't get any lower than that.. They are allowed by the lender (BMWFS) to add .0004 to the money factor... and if they waive the security deposit, that adds .00015.. So, the highest the MF can be is .0023

    I suggest asking for the base rate and make a security deposit.

    While the money factor might not appear on your copy of the lease paperwork, the cap cost should... Ask for the total cap cost and a breakdown of what that includes.. I think you will find an answer to the discrepancy there..

    The dealer doesn't calculate the lease any differently than you do... He is just using different numbers..

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • bdr127bdr127 Posts: 950
    The dealer doesn't calculate the lease any differently than you do... He is just using different numbers..

    Exactly.... The dealer doesn't do out the calculations by hand, obviously. They just punch the numbers into the computer and it gives them the result.

    If the payment is different than your calculations, either they are using different numbers or you have left out a fee here or there...
  • buyingz4buyingz4 Posts: 5
    Thanks for all the help!
  • jmcmbzjmcmbz Posts: 42
    Hey kyfdx, Can you tell me the MF and Residuals and other pertinent info for the current advertised 30 month lease on the Z4? Also, is there still $1500 marketing support? Are there other lease alternatives that they are not advertising such as 24 month or 36 month terms with similar money factors? Thanks!
  • lopzlopz Posts: 22
    Help! Where do I get the info on how to compute lease payments on my own, by knowing the money factor, residual value and whatever else it is I have to know? Thanks.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi jmcmbz. I'm not kyfdx, but I can answer your questions for you. If you were to lease a 2006 BMW Z4 3.0i through BMW Financial Services right now for 30 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 66%, respectively. BMW is still providing $1,200 dealer cash on the '06 Z4 3.0i and $1,500 on the 3.0si. You would be able to get the same special money factor on this car for leases up to 42 months in length. Generally speaking, the longer a lease is, the lower your monthly payment will be.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi You can find out how leases work and how to calculate lease payments by reading the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    As far as what the money factor and residual value for the car that you are interested in are go, I should be able to provide you with that information. Just let me know exactly what model you want, how long you want to lease it for, and how many miles per year you need to be able to drive it.

    Car_man
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  • buyingz4buyingz4 Posts: 5
    Hi Car Man,

    A dealer is quoting me the following for a 2006 Z4:

    36 months, 15k miles a year
    MSRP with options: 42k$
    Invoice: 39k$
    MF: .0021 (APR = 5%)
    Residual: 57%

    It comes out to be around 630$ (with taxes) per month. Does it sound reasonable to you?

    Thanks.

    Alice
  • jmcmbzjmcmbz Posts: 42
    Thanks Car_Man!
  • lopzlopz Posts: 22
    Thanks, Car_Man. I read the info and now can talk the language and calculate lease payments--it's fun and I'm sure this valuable info will save me thousands over my next leases. I am planning to lease either a Z4 3.00si or Z4M, premium package and navigation, for 24months, 12k miles/yr. Please help with the money factor, residual, BMW cash back to dealers, and any other info that may be of use. (I understand you may not have sufficient data on the Z4M.)Thank you kindly.
  • melbernmelbern Posts: 1
    I just order a z4 3.0i

    MSRP $43
    Sale price 40.5K About 1K over invoice

    I'm looking at leasing this car; below was what I was quoted.

    Money factor 2.3
    residual 59%
    12,000 year

    I was told that this was the best BMW finance could do and that it was absolutely not negotiable. Is this correct? I was told that this great rate was also only good until month end. As the car is just being ordered and won't be in for 6 weeks, the lease hasn't been finalized, but the above rate was locked in (incase the money factor changed before delivery.) Do you know about any special lease deals that expire at month end. Also, does the money factor very by car? I originally looked at the X5 and got a 1.55 money factor.

    Also, what would the residual be for 10,000 miles per year?

    Melissa
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    1) The lease program does end at the end of the month.. but, they can lock you in for 60 days from the expiration of the current program.

    2) The residual and money factor does vary by model.. 59% is the correct residual for 3yr/12K.. The residual for 3yr/10K would be 60%.

    3) They have marked up the money factor the maximum that BMWFS allows. Without a security deposit, the base MF is .0019.. They are charging you .0023 (note the decimal point). With a security deposit the base MF is .00175. The base factor is the lowest allowed, and that is set by BMWFS... Anything higher than that is to build in extra profit for the dealer. It is negotiable... but that doesn't mean they will negotiate it. If you shop around, you may find a dealer that will give you the base rate... or, this dealer may negotiate, once they realize they have competition for your business.

    regards,
    kyfdx
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    Moderator - Prices Paid, Lease Questions, SUVs

  • lvrebellvrebel Posts: 4
    Car Man,

    I'm leasing a 2006 Z4i or si this weekend and would like to get some of your thoughts.

    I will be turning in a leased 2003 BMW 325i with 16K. The lease was a 36 month term with 12k per year. Since the vehicle is being turned back in with so few miles, can I use that as leverage to get a better deal?

    In regard to leasing, what should I attempt to negotiate towards? Based on your previous comments, it appears I should be able to get $1500 rebate on the si and should look to negotiate 3 year, MF .0019 with 60% residual. Is this correct? I live in the city and do not drive that much, is there anything lower than 10K per year?

    Lvrebel
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