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BMW 6-Series Lease Questions

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  • 06hse06hse Posts: 4
    I got the dealer to give me $39,000 for my car, I owe $46,000. They gave me a money factor of .00350 and residual of 57%, I feel like I'm not get the best deal with the credit rating that I have. I thought average money factor was around .00285? Anyway let me know what you think.

    Can you work out the payments for me for me?

    2006 650i
    $78545 (after options)
    12k/year 36,000 miles
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi wirefree. I can't say for certain, but I suspect that you probably will have to pay a decent chunk of change to get out of your current lease a year early. As far as the lease on the 650i that you are considering goes, I would be happy to estimate what your lease payment should be on it if you provide me with its MSRP. If the number that you mentioned in your post is the MSRP, then I need you to provide me with its selling price.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi 06hse. BMW is not currently providing any sort of lease support on the 2006 650i. As a result, if you were to lease one through BMW Financial Services right now, you would have to use its standard lease program. BMW's standard money factors have increased since you last saw them. I believe that BMW FS' standard lease money factor varies slightly by region, but in most areas it is currently .00300 with the payment of a security deposit and a $625 acquisition fee. BMW will waive its security deposit requirement in exchange for an increase of .00015 in a vehicle's money factor. BMW will waive its acquisition fee requirement in exchange for an increase of .00035 in a vehicle's money factor. If both of these items are being waived, that would bring this car's base money factor to .00350. If you are paying one or both of them, the dealer that you are working with is marking up your car's money factor to add additional back-end profit to your deal. This sort of thing is completely legal and happens all the time, but usually can be avoided by consumers who know what their car's buy rate money factor should be. I'd be happy to estimate what this car's lease payment should be for you, but in order for me to do so I need both its MSRP and its selling price. You provided one of them in your post, though I am not sure which one it was. Let me know the other and I will crunch some numbers for you.

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  • bgarbbgarb Posts: 1
    Hi Car man,

    I am looking at leasing a 2006 650 with a msrp of 79,100 for $76,660. The lease I am looking at is a five year lease that is assumable and the company says they can get me out of the lease in three years with some money to spare as their residual at the time will be $50,000 as opposed to $40,000 direct from BMW. The payments they are offering are $1,250 including tax. What do you think of this deal.

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi bgarb. Never believe a salesperson who tells you to lease for a really long term because they will be able to get you out of your lease early. It is usually fairly expensive to get out of leases well before their scheduled end dates. Salespeople tell consumers that they can get them out of their vehicles early all the time, to suck consumers into leasing vehicles that they might not normally want to lease for a shorter term because of how high the lease payment is. How does your sales person know how much your car will be worth three years from now or how much his dealership will be willing to give you for it then? He doesn't. If I was in your situation, I personally wouldn't lease this car for more than 36 models or so. Let's see what a lease payment for that length lease would be. According to my calculations, if you were to lease a 2006 BMW 650Ci Convertible with an MSRP of $79,100 and a selling price of $76,660 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $1,204.

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  • Hi Car Man, I am in the market for a Bmw 650i with an MSRP of $73,590. This is my first time asking for a quote i have not yet searched at dealers for any prices. I thought i would get your calculations first. I want to lease the car for 36-48 months which ever is cheaper for 12k per year and 2-4k down payment. Thanks
  • seth2seth2 Posts: 1
    Hi Car Man,

    An Atlanta dealer quoted me a purchase price for an '06 650i of $75,100. For a 36mo 15k miles per year lease they quoted a monthly payment of $1415.93 but want $2600 for an initial payment they say. The rate quoted was .00343 which seems high as I have outstanding credit. This deal seems expensive considering the purchase price compared to others. What gives? Thanks!
  • drkingdrking Posts: 2
    For a purchase price of $80,400; 36 mo., 12K miles, only $160 down for registration, tag, etc. what should I expect the monthly payments before taxes to be? What rate?

    Also located in Atlanta.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi carcrazy12. I can't estimate what this car's lease payment should be without knowing what its selling price is, but I can give you an idea of what its lease program is currently like. If you were to lease a 2006 BMW 650Ci through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be an unattractive .00300 and 54%, respectively. The numbers for an otherwise identical 48 month lease should be .00300 and 43%.

    I notice that you mentioned making a down payment of as much as $4,000 on this car. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 6-Series would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi seth2. This car's current buy rate lease money factor is .00300 with the payment of a security deposit equivalent to your monthly payment rounded up to the nearest $50 increment. Make sure to insist that this factor is used to calculate your car's lease payment. As far as your initial payment goes, at lease signing you will have to pay your car's first month;s payment, the aforementioned security deposit, BMW Financial Services' $625 acquisition fee, any capitalized cost reduction that you choose to make (this should be $0), and any required state taxes or fees.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello drking. I would be happy to estimate what this car's lease payment should be for you, but in addition to the selling price that you mentioned, I also need you to provide me with its full MSRP (including the destination charge).

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  • How much would the lease be on the 650i and lets say the selling price is $73,590 for 36 months and 12k miles per year.
  • drkingdrking Posts: 2
    MSRP of $84440.
  • umolleumolle Posts: 1
    Hi car_man I have been looking and was just quoted for a fully loaded 2006 650i with everything from sport package to cold weather package and premium sound and wheel upgrade. Here are the details MSRP $84,440, residual 58%, cap cast selling $83,240, 12K miles per year, 39 month lease, $1323 inc tax, and final $2600 total due for taxes,DMV,and some kind of bank fee, and my first month car payment was include in the $2600. He also told me my money factor was .00260. My credit fico score was 790. Is this a good deal in your experience.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    I would be happy to estimate what this car's lease payment should be for you, carcrazy12. However, in order for me to do so I need you to provide me with its full MSRP. Let me know and I'll run some numbers.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Thanks for the additional information, drking. OK, if you were to lease a 2006 BMW 650Ci Convertible with an MSRP of $84,440 and a selling price of $80,400 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $1,295.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi umolle. It looks to me as though the lease that you were quoted for this car is not being run through BMW Financial Services. Not only is BMW FS' money factor for this car higher than the one that you were quoted, .00310 versus .00260, but I do not believe that BMW is currently offering 39 month leases on this model. The previous poster reported getting a lower selling price than the one that you were quoted, but this can vary a lot depending upon what area one is in. For the sake of comparison, I will estimate what this car's lease payment should be for you using BMW FS' lease program. According to my calculations, if you were to lease a 2006 BMW 650Ci Convertible with an MSRP of $84,440 and a selling price of $83,240 through BMW FS right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $1,383.

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  • l0m6905l0m6905 Posts: 12
    why should the capitalized cost reduction be zero?
    I leased a new 525i & the capitalized cost was $4,187 & they waived the security deposit.

    Please help car_man
  • Carman:

    What is the current BMW lease program for the 650 Coupe on a 15K/36MO? :confuse: What's the current residual and money factor given top tier credit with BMW finance?

    Thanks Car_Man!!!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hey l0m6905. It is in your best interest as a consumer not to make any sort of capitalized cost reduction when leasing. The main reason for this is if your vehicle is totaled in an accident or stolen during the course of your lease, your down payment essentially disappears. When leasing a BMW, a much better use of your money is to make additional security deposits. BMW will reduce the money factor that is used to calculate a vehicle's lease payment by .00007 (up to a maximum of 7) for each additional deposit that lessees make. Making multiple deposits lowers vehicles' lease payment and as an added benefit, consumers get all of their additional deposits back at lease-end.

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