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BMW 5-Series Lease Questions

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  • scottyb1scottyb1 Member Posts: 11
    Hi CarMan,
    I was just offered .0040 (seems high huh?) with a 60% residual on a 530i for a 36mo, 15k/yr lease. I know Feb's numbers got a bit worse...does it sound like I'm getting ripped off or is that about right? Thank you for your help.
  • obiwan1obiwan1 Member Posts: 42
    If MF are the same for 24 versus 36 month 15k leases on 525xi, 530xiT but the residuals are 60 and 70% respectively, why should I lease for 36 months?

    Carman?

    I am considering the above two. Also I see that xiT MF has gone up 0.0009 to 0.0012 to 0.0014. Should I expect them to continue to go up or is that also depends on when the 2008 show up
  • eoulimeoulim Member Posts: 9
    When you guys negotiating deals for lease,
    do you let them run credit report before the deal
    or only after you reached your desired deal ?
  • skobolaskobola Member Posts: 207
    Provided that you have the original BMW FS document that says the effective date, and not the "lease program provided by dealer partners of LeaseCompare.com", as published on Bimmerfest, I would say that they should use the then current rate, which would namely be January. However, I do not know how official is that rate, inclusive of the date. In addition, the dealers may try to use whatever tricks in order to make you to pay the rate that they consider the current rate, so be ready to walk out, but also be ready to not to get the January rate, as at any other dealer the rate will certainly now be the February rate anyway.
    If you are making the multiple security deposits, they are paid at the time of lease initiation.
    However, if I assume correctly, it seems that you have not started your lease yet, so I believe that on 2/12 or later, you will have to pay February rate, with or without the MSDs.
  • skobolaskobola Member Posts: 207
    I would get the 36-month lease because it calculates to a lower payment per month than 24-month lease, as the monthly depreciation for 36-month lease will be 40% of the CAP cost divided by 36 months vs. 30% of the CAP cost divided by 24 months, which calculated results in 1.11% vs. 1.25% of the CAP cost per month. In other words, this is because you will be paying for more car each month in a 24-month lease, namely 12.61% more for a 24-month lease when compared to 36-month lease. Note that you will also have to pay tax in most of states on that amount.
    However, maybe that difference will not be worth it to you if you are a type who likes to exchange cars frequently, so about 12-13% higher payment will not hurt you as much as you will be sorry waiting for yet another year to get a new car...
  • jeb3779jeb3779 Member Posts: 16
    I am looking to get the 525i..premium package and don't want to put anything down except tax and tag (if I have to). I am looking to have a 36 month/15k lease.

    Went to a dealership today and he quoted me 2400 down and 599plus tax a month. I know they can do better, but didn't know how low they can go.

    Can you figure out the best payments I could get. Thanks
  • obiwan1obiwan1 Member Posts: 42
    Thanks skobola
    so here is what I have right now
    530XiT for 58570 (MSRP 60570) with Sport, Auto, Nav, Premium, Heated front, Park distance
    15k, no deposit, no money down, first month plus tags for 868/month for 36 months

    Opinions?
  • obiwan1obiwan1 Member Posts: 42
    okay so now 57570, MF 0.00175 for 863/month with 5% tax.
    Car man?
  • skobolaskobola Member Posts: 207
    Obiwan, run away from that dealer! He is ripping you off. First, if I calculate the deal with all your numbers as provided by you, the lease with $625 included in the CAP comes to $811.09. However, the MF should be 0.0014 and not 0.00175, as he is charging you. If this is because you have not paid the security deposit, I would advise you to do so, as you will get it back at the end of the lease, and the MF of 0.0014 will provide you with a monthly payment of $776.35. Note that all monthly lease prices include 5% tax.
  • obiwan1obiwan1 Member Posts: 42
    skobola
    sales tax in maryland is i believe on the sale price of the car, not on the monthly payment.
    Does tha make a difference?
  • walton_ricewalton_rice Member Posts: 2
    HELP: Here is the deal I have: 36 months, 12K miles, no down payment and $700 security deposit. MSRP on 525 xi with all packages is $53, 820. I need to pay $680.93 a month inclusive of all taxes. I do not have the break down and understand you will need all the information. But by looking at the numbers can you give your valuable inputs....Thanks much....
  • ukrainianukrainian Member Posts: 10
    bmw 525xi, i put a 500 sec. deposit for the car to be built, it is now finished and i am awaiting arrival, but the more i wait the more i am getting cold feet. Not that I don't want a car mind you, I just think that now i want more options AND am not as sure that I got the best deal I could. I signed some paperwork regarding what is owed on the car at the time of making the order. MY QUESTION. Am I bound by this paperwork? or when the car comes in I can forfeit my 500 bucks and go elsewhere. I still want a bmw but at a better price or same price with more options, really feel like I got screwed a little bit. As long as I get a better deal, I won't care about the 500 sec deposit.

    BTW in case you care, 525xi, 15k miles/36months, Cold Weather package, Navi........... thats it, no xenon HL (regret), no premium or even just leather (regret). about 6200 down which is all taxes and 2500 towards cap. then 509/month for the rest. NEW YORK MSRP is like 50K i think
  • shuale_ejsshuale_ejs Member Posts: 115
    I felt the exact same way when I first started looking for my car. I signed paperwork and paid a dealer $500 sec deposit when i ordered the car (which had nothing either), but did some more searching and felt I wasn't getting a good deal. I asked around and was told as long as I did not take possession of the car I could get my money back. My time lapse was only a day and a half...but you have not taken the car so you should go and get your money back. Or what you could do, if you want to avoid having a confrontation is take them the best price you got (from another dealer) and tell them they have to match it or you'll buy the car somewhere else.

    I hope it works out for you.
  • shuale_ejsshuale_ejs Member Posts: 115
    I don't have time right now, but tomorrow night I'll post my old deal vs what I am now getting.
  • shuale_ejsshuale_ejs Member Posts: 115
    Carman,

    My sales person tagged on $180 Training Service Fee. When I asked him what that was he said "The $180 training fee is what BMW charges every dealer in the country for training of the sales people and technicians on your car so when you call with a question, we can answer you correctly and for us to spend the hour or two going over you car with you on delivery... Not for you learning it." Is this true?
  • shuale_ejsshuale_ejs Member Posts: 115
    525i
    Manual Transmission
    Cold Weather Package
    Sat Radio

    Selling Price: $43,690
    Residual: 60%
    MF: .00065
    Terms: 36 mths/15,000 mls

    $525/mth plus tax, tags etc.

    TERRIBLE DEAL!
  • shuale_ejsshuale_ejs Member Posts: 115
    525i
    Manual Transmission
    Cold Weather Package
    Premium Package
    Navi System
    Sat Radio
    Xenon Lights

    Selling Price: $46,400
    Residual: 60%
    MF: .00055
    Terms: 36 mths/15,000 miles

    By the time they tacked on MACO, Markup & Acq Fee the price of the car was $48,095

    Monthly pymnts $541.67 + tax (Ohio), tags & title

    I pick up my baby on 3/2/07 and I can't wait.

    By the way, I ordered it 3 times with the same dealer...
    1. 530xi - Titanium Silver
    2. 530xi - Silver Gray (decided I didn't like the silver)
    3. 525i - mentioned above (I was nervous to change it this third time...but he was cool about it.)
  • sambo49sambo49 Member Posts: 47
    I have leased a 2007 525xi last November. The car itself is a pleasure to drive and I am very satisfied so far.

    In general, you can get the car at invoice or slightly above. You can find invoice prices in several locations on the web including edmunds. I would not worry too much about xenon lights and leather package, as these do not detract much from the feel of the car.

    It looks like you have some room to negotiate price wise and you can always go back to the dealer and request an adjustment since you have not taken possession of the car.

    Good Luck
  • denthemandentheman Member Posts: 1
    He there,

    Would likemtoknow the dealership where you got your 530. Looking for one myself.
    Thanks,
    D.
  • wbb56wbb56 Member Posts: 45
    I can't find the exact 5-series that I want so I am investigating BMW's European delivery. I see the MSRP prices on the BMW webite (about 7% less than US prices)--but where do I find the European Invoice pricing? Are the lease rates (money factor, residual etc..) the same for European delivery cars? Is the Euro price negotiable?
    My educated guess is that the Euro Invoice price is around $37k. I'd like to offer $1,000-$1,500 over this (plus options)--is this reasonable?

    Thanks again for all of your help so far..

  • rjb123rjb123 Member Posts: 2
    Hi everyone. I echo the sentiment throughout the postings...this is an extremely helpful forum and I appreciate everyone's feedback.

    Question: As I was signing my paperwork, the finance person offered a $725 "safe lease" option which supposedly protected me from the lease end costs of door dings, damages, etc...I'm looking for opinions on this coverage?? What have others done? The finance person began by saying that "95% of people typically take this option"...so, I was very skeptical from the start.

    Thanks!
  • rjb123rjb123 Member Posts: 2
    Here's the deal I received in Northern Virginia...

    2007 525i [non-permissible content removed] Silver
    Auto Transmission
    Premium Pkg
    Cold Weather Pkg
    Nav
    Xenon
    Sat Radio

    MSRP: $51,515
    Selling price: $48,615
    Acq: $825
    62% Residual on 12k/year
    MF: .001 (absolutely would not budge any lower)
  • bigdrunk92037bigdrunk92037 Member Posts: 9
    Check the second page of the PDF for Euro pricing. Offer $1k over as well. Seems like plenty of people are getting them for only $1k over. Also, check the European delivery thread on Bimmerfest. Tons of info.

    http://www.bimmerfest.com/forums/showthread.php?t=158614
  • walton_ricewalton_rice Member Posts: 2
    Whats your monthly payment?
  • 99_528i99_528i Member Posts: 27
    I got an offer for a 2007 530i, with premium, sports, automatic, nav, Logic7 sound, no rear sunshade

    MSRP $57,170
    Cap Cost $56,170
    MF 0.00140
    Residual 62%
    Monthly payment $728, including tax $788
    Driveoff is $1279.

    This is for a 3-year lease, 12k a year. No security deposit, $0 down, only drive-off. I leased with BMW before. In fact, it's the same northern California dealership I leased with.

    Any feedback on whether this is a good deal or not?
  • corschecorsche Member Posts: 29
    This looks like a bad deal. First, you should be able to get a much lower price on the vehicle. $1,000 off MSRP is a joke. Even Carsdirect.com has a price of $54,675(you should do better) with your selected options. Second, the current money factor for February is .0010, so they are charging you a premium rate. The residual is correct at 62%. My calculations based upon the info I just provided is your monthly payment should be $657.57 before tax and this includes the acq fee in the lease. Drive shoud be first payment and DMV fees.

    I hope this helps.

    corsche
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome lindalouwho. I'd be happy to help you out. 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.

    You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers 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 this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the info that you're looking for, jim53. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 525xi with 15,000 miles per year are .00150 and 60%, respectively. I do not believe that BMW is offering 39 month leases on this car.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, Corsche. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 550i with 12,000 miles per year are .00175 and 61%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jayps. The money factor that you were quoted for this car is right in line with BMW Financial Services' buy rate for a lease of it with a waived security deposit. This is a good thing because it means that the dealer that you are working with is not trying to mark your car's factor up to add additional hidden profit to your deal. I would be happy to give you my opinion of this car's selling price if you tell me what its MSRP is. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi crzycool22. Something is strange about the lease program that you were quoted. I don't recall ever seeing a 28 month lease program on this car. Plus, the money factor that you were quoted is so low. This is a great lease program, but I can't figure out where it would come from. It is more attractive than BMW Financial Services' current lease program for this car and I doubt that any independent bank would offer this attractive a deal. Where did you get these numbers from?

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi japelleg. The money factor that you were quoted is right in line with BMW Financial Services' buy rate for this car: .00100 base money factor - (7 additional deposits x .00007 reduction) = .00051. As far as this car's price goes, a base 2007 BMW 530i has a spread of around $3,600 between its full MSRP and its dealer invoice price. A discount of $2,000 isn't bad, but it still leaves some room to play with. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience".

    Car_man
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  • doctorelydoctorely Member Posts: 10
    I am waiting on my car to arrive soon. Part of the cap cost in my agreement includes a $499 dealer prep fee (this is not the acquisition fee, 825 at my dealer!). In the message board here I dont see mention of this fee on a lease. Is this something to negotiate or walk away from. Its a small amount of additional dealer profit, but it grinds me.
    What do you think?
  • ajp00ajp00 Member Posts: 17
    Car_man or anyone who knows

    Can someone tell me what the money factor and residual on a 2007 530xi 12K miles for 36 months is? Thanks in advance
  • wbb56wbb56 Member Posts: 45
    Is this a reasonable lease offer/request for a European Delivery 525i?

    USA MSRP w/Destination Charge: $52,485.00
    Euro Invoice Cost: $44,350
    (Auto, NAV, Sirius,Premium, Premium Sound, Cold Weather)

    My Offer: $46,124 (Invoice + 4%)
    Total: $46,694 (Incl. Dest + Lease Fee-Trade (I'm going to ask for $750 for my '97 Explorer)
    36 mo/15k Lease 60% Residual .00075 MF
    $495.37 Payment (includes 3% NC Sales Tax)

    If I am planning on buying the car at the end of the lease should I just lease at the lowest rate/highest residual (36mo/10k miles)?

    Thanks very much!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi eoulim. In answer to your first question, regardless of when the dealership that you are working with ran your credit, unless you locked in the old lease program you will have to use the one that is available when you physically take delivery of your new car.

    I'm not sure that I understand your second question. Are you asking when you would have to pay your multiple security deposits? If so, they are due at lease signing.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi scottyb1. Did you say that you were offered a money factor of .00400? Something's not right here. BMW dealers can't even mark BMW FS' buy rate money factor of .00100 that much. Perhaps there was some miscommunication between you and the dealer. You should either speak with them again or try a different dealership.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi walton_rice. 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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi shuale_ejs. The explanation that you were given sounds about right to me. Having said this, don't let the dealer that you are working with cloud things by quoting you one price and then adding all sorts of fees to it. Focus on the big picture and get an out-the-door price quote for the car that you want. If the total price that this dealer is charging you for this car is less than the total price that you would have to pay for it elsewhere, it doesn't really matter how the deal breaks down. If you don't believe that it is, then you may want to consider shopping around some.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi 99_528i. BMW Financial Services' current buy rate lease money factor for this car is .00100 with the payment of a security deposit and .00115 with the deposit waived. As you can see, it appears as though the dealer that you are working with is marking up your car's money factor. Furthermore, you are only being given a $1,000 discount on a car that has a spread of at least $4,000 between its MSRP and dealer invoice price. You should be able to do better than that. If I was in your situation I definitely would shop around with a couple of other dealers.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi doctorely. The dealer prep fee really isn't much more than a way for the dealer to add additional profit to your deal. Rather than letting the dealer cloud things by adding all sorts of little fees to the selling price that they initially quoted you, focus on the big picture. Get an out-the-door price quote for the car that you are interested in. If you feel as though the total price that you are quoted, including all of the fees, is too high shop around with a few other dealers.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, ajp00. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 530xi sedan with 12,000 miles per year are .00170 and 62%, respectively.

    Car_man
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  • crzycool22crzycool22 Member Posts: 18
    Hey, This was the december program - I locked in during December and ordered a car.
  • ukrainianukrainian Member Posts: 10
    hey i leased a 525xi for 36 months and 15k miles per. the money factor was .00185 when i signed the lease in december, the car is almost here but i remember i was told that if in between the time i ordered and time i recieve the car if the rate drops, i get the lower rate. Does anyone know if the rate was reduced from .00185 in december through jan, or feb. it is 60% residual
  • 530ir1150r530ir1150r Member Posts: 263
    If you are planning on buying the car at the end of the lease you want the lowest rate, lowest residual, lowest miles.
  • lsmblsmb Member Posts: 7
    Hello Car_Man,

    I urgently need your advice on final negotiations. This is the proposed deal with a sales price after 3% discount and long negotiations for trade in. I am ok with sales price, but not MF.

    68,835 MSRP
    60,780 sale price
    2,000 down payment
    700 security deposit
    625 acquisition fee
    398 registration, etc.
    3.00% sales tax
    10,000 miles/year
    36 lease term
    62% residual
    0.00190 money factor

    How in the world do I get the F&I manager off the .0019 MF ?(the Jan BMWFS rate was .0015, what is the Feb rate for above lease?)

    Dealership has been less than forthcoming with transparency and tried to snow me for weeks while the car was on order under original presumption that "MF is not negotiable and I will get best rate available anyway". Your excellent forum has shown me that this is certainly not the case, but I might be too late.

    Any last minute advice, any leverage I might have at this point before picking up the vehicle tomorrow?

    Thanks so much,
    LSMB
  • jaypsjayps Member Posts: 9
    Hi Car_man, thank you for all of your help. The MSRP for the vehicle I inquired about is $54,220 and for convenience sake here was the whole deal again:

    2007 530xi
    MSRP $54,220

    Cold Weather Pkg
    Premium Pkg
    Automatic

    Selling price $52,500
    36 months, 15,000 miles
    $4000 includes all fees and cash down
    $699/month
    residual $32,500 which I understand is 60% of MSRP

    I believe the money factor is .00185, no security deposit
  • japhalejaphale Member Posts: 15
    Hello:

    How does the european pickup work logisticall?

    J
  • kyfdxkyfdx Moderator Posts: 236,566
    You fly to Munich...
    Pick up the car at the delivery center.
    Vacation in Europe.
    Return the car to the designated shipping agent (In Munich, or other city).
    Fly home.
    Wait for your car to be delivered to your dealer (4-6 weeks, generally).

    All auto transportation is included in the price... Your transportation and expenses are on your dime.

    Check out this discussion: BMW European Delivery

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • crzycool22crzycool22 Member Posts: 18
    What do you think of this deal? $412 for 28 months - I calculated a selling price of $44,800 on a msrp of $46,000.

    Invoice is $42,500 - dealer profit around $2,200.
    Cash down is only $800, 1st pmt and DMV. Aquic fee & taxes are in monthly pmt. Car being picked up today.

    Is there anything else I can get from dealer?
    Or that you would ask for.

    Thx
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