BMW 5-Series Lease Questions

pension · December 2007

Base car with heated seats HD radio. $44,000. Yes 12k per year and 20 cents after. I will probably exceed by a little and pay $1,000 at end. While I work with numbers all day I 'm bemused by all the calculations I se on here. Basically I will shell out $15,099 in total(inc. deposit) over two years, with the free maintenance this is a great deal for a $45k car which would depreciate by that anyway. I buy all my other cars - BMW's lease is a no brainer.

webba · December 2007

528i with premium package, sport package, navigation, xenon, heated front seats
MSRP: $53,375 (includes destination)

Selling price: $49,170 (includes destination and 1K rebate)
Term: 36 month with 12K per year
Residual: 62%
MF: 0.00225
Sales Tax: $2,513.5 (state tax is on selling price not just on depreciated amount)
Process fee: $100
2-years Tag: $270
Security deposit: $750

Dealer is saying $1,493.04 initial payment (includes first month and security deposit) and $743.04 (includes tax) per month afterwards, but according to my calculation the payment should be $718.27 (includes tax) per month. It seems like $1k is being added to the Net Cap cost. Could somebody verify this for me? and also do you think this is a good deal?

Thank you,

amandad123 · December 2007

:confuse: I visted two BMW dealerships today..Vista BMW Coconut Creek, FL and Vista BMW Fort Lauderdale, FL...I was given two totally different quotes...First Coconut Creek gave me a quote on a 2008 BMW 535i premium package for $52 and change with $1000 incentive included....10,000 miles...24 month lease....I told them I want my payment to be $530 tax included.....he told me its possible with 11,000 down......He didnt run my credit although it is good with good auto credit history.....I left there and i went to there brother/sister store in fort lauderdale...same car/price\ and i was told $6500-$7000 down for $530 a month....Why am i being told such a big difference in down payment?? Same company...same inventory...I know they have quotas to meet but it still doesnt make sense....I left there and said I would be back tommorow...or not.....I have no clue whether i should go to a third dealer or go back to the first dealer and ask them to beat it.....i did call the first dealer i went to and they said theres no way i was told that offer...i didnt tell them who gave me the better offer...should i? its the same company.....i also want the black with natural brown color but was told i HAVE to put money down before the car comes in....i feel like im getting taken advantage of because im 21 years old...but i have bought and leased a car before and almost got screwed both times so i know to be careful and to ignore their aggressiveness...what do i do?

look what the first dealer emailed me saying:

Id love to be the one who earns your business and hopefully you noticed how professional and straight forward I am. So straight forward that my General Manager happed to come in for 10 minutes and I brought up your email to him. When he saw your address he told me lets check it out. Turns out that Phils lease was 36 months 12K miles. I am embarrased to tell you that his word were that he will let you have the same deal, with 10k miles and 24 months. He rather make no money than letting you buy far from us. The car I will have for you is 2008 535 Black Saphire with Natural Brown Dakota Leather, premium package, automatic transmission, satellite radio and iPod interface. If you would like to give me your business, we will have to meet here, put everything in black and white, signed by him for your piece of mind, get your credit information to send it to BMW Financial Services and lock in the faboulus December program. We will take $ 1000 partial payment which will be refundable if any thing is different than what he signed for. I want you to give it some thought, and if youd like to secure that car (just in case somebody else in the country does), give a call for an appointment. I am off as of now till Tuesday but should you get itchy, as long as you let me know before, I can make myself available for you tomorrow late afternoon. Thank you for communicating back to me. Rico.

HAHAHAHAHA

smithsonga · December 2007

Holy cow....that is more shovelling than the NE needs today.

Just email 4-5 dealers, tell them the car you want, tell them where it is or let them find it.

Have the quote PRICE first. When you have a good price, TELL them the residual and Money factor they should use...TELL them the $625 ACQ fee. TELL them the resulting lease price (www.leaseguide.com/calc).

Play 4-5 dealers off each other. Be patient but ruthless.

amandad123 · December 2007

Thanks alot for taking the time to respond to my post.....What exactly is the money factor and residual??..........yes they wanted 825 acq. fee......im going to go to 2 more dealers and see what i get....i dealt with this with my 300C....i went from $720 to $490 lease payment and from $4500 down to no money down between dealing with 4 dealerships...its nuts how big of a price difference you can get from one dealer to another....price gauging should be against the law for autos...lol...and i hate being told they can do it if you sign asap..cuz even when you dont sign right on the spot, they will still haunt you for weeks....

lovemyclk · December 2007

I don't believe the "sign and drive" lease should adversely affect your MF at all. I received both a sign & drive as well as cap cost reduction quote and both had the same MF... although I have not pulled the trigger and am still hanging on to my '03 5er.

jamesd553 · December 2007

Ok, I emailed 3 dealers around Los Angeles for a 535i... w/ Sport, Prem, Nav and Heated seats. KBB has MSRP at 57,375.and invoice of 52780. I told them I wanted 3 year, 12000/mi lease. One already came back with:

MSRP: 57375
Your Price: 53940
No money down, payment: 698 + Tax 36/10000 miles.

I called and she said I was getting 1000 wich was going towards cap reduction so its not included in the price and a MF of .00225.

From what I read this sounds like a great deal espcially right off the bat. Does anyone else think I should try to hold out for something better or are they just giving me their best deal first?

ninabeemer · December 2007

They NEVER give you their best deal first! If I understand you correctly, they've factored in the $1K incentive into "your price", so you're paying $53,940 for the car. I ran the numbers and, based on that price, the sticker, and the MF, that payment comes out correct. However, the invoice on that car is $52,780, and with the $1K incentive their true "invoice" is $51,780. So you're giving them a $2K profit, which may be the best you can do, maybe (probably) not.

For every $1K you get off the price, your payment decreases by about $30 / month. I'd start at $51,780 and negotiate up from there, not down from their price. Good luck!

smithsonga · December 2007

Agreed...average deal.

Try to get a better price.

verify the 'no money down'. I assume you have to pay 1st month, security deposit...so that is $1400 right there. They normally hit you with a doc fee...of $299-$499.

Verify the Acquistion fee...it is normally rolled into your cap cost. $625 is what it should be, no more.

A good start however, but dont take it yet...forward that offer back to the other dealers.

CarMan@Edmunds · December 2007

Hi webba. The dealer invoice price of the car that you described is $49,090. Taking the $1,000 cash incentive that BMW is providing on this car into account, the selling price that you were quoted is equivalent to right around $1,000 over. This is a reasonable price for this car, but it wouldn't hurt to stop by the "BMW 5-Series Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar cars lately. The money factor that you were quoted is right in line with BMW Financial Services' buy rate for this car. The numbers behind this deal look good, but the monthly payment that you were quoted looks pretty high. I just worked up a zero down, pre-tax payment on this car and I came up with only $643 per month with the processing fee and tags added into the cap cost. What did the dealer say your payment is before tax? You need to find out why the payment that they quoted is so much higher.

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CarMan@Edmunds · December 2007

Hi amandad123. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2008 BMW 535i with 10,000 miles per year are .00225 and 74%, respectively with the payment of a security deposit and a $625 acquisition fee at lease signing. Any dealer that tries to charge you a higher acquisition fee than this is padding the charge to add additional profit to your deal.

Car_man
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ahnj · December 2007

nice work gaawb1. where are you located? I'm curious if this deal is available in northern California (bay area).

gaawb1 · December 2007

I'm in Madison, WI but had to go to Chicago to get this deal. There's only one BMW dealership in this area and they won't deal because they know they don't have to. They own Infiniti, Audi, Saab, Acura, Porche, Mercedes, Honda, VW, and a few of the american manufacturers. Needless to say, they've set up a monopoly. I bought an Acura MDX for my wife last month and had to go to Chicago for that as well. Your pricing should be predicated on the number of dealers you have in the bay area, which I would think should be pretty high. I only had to play two dealers off each other, but I also made the deals look sweeter than they actually were when I went back-and-forth. Good Luck.

amandad123 · December 2007

Thanks everyone for your help...i will keep in touch with the offers i get....braman motors of palm beach is next on my itinerary!

loveandlight · December 2007

Hi dark_katana, first of all thanks a bunch for all of your help, I went to another dealer and this is the deal so far. What do you think?

Car 2008 BMW 535i
MSRP $60,670
Invoice $55,775 (Dealer invoice with MACO fees between $56,305 and $56,375)
My price $57,705
$0 sales tax - (sales tax credit, I live in Houston Tx, tax credits to dealers this Dec.)
$1000 from BMW Financial used as down payment
I am leasing the car for 36 months 12K miles

Also, I am a first time BMW owner, am I eligible for the .00225 base rate without paying a security deposit? How much should the rate go up if I don't pay a security deposit if I am not eligible for the .00225 rate?

jack96 · December 2007

Hi:
Am thinking of leasing a 2008 528i + Cold weather + Sirius.
MSRP - 46420, Act. Cost - 44500. Acq. Fee - 625, 12K/yr. No deposit

36 Month Lease, Res 62%, monthly - 609 OR
24 Month Lease, Res 73%, monthky 590

Can I get better deals? Which one is pref.
Thanks.

sls1 · December 2007

Can anyone confirm the 5-series body change date? I think it's set for 2010. Relevant when looking at 2 or 3 year lease

jack96 · December 2007

Didn't think of that. Definitely want to take into consideration. Thanks.

jeff9049 · December 2007

my current lease is up in January 2008. I was told that BMW had discontinued their Owner Loyalty program. Today, a dealer called and indicated that it was reinstated. Does anyone know the date of announcement of the extension of the program?

pattyp2 · December 2007

I am planning to lease a 535i .I have called up a number of dealers in CA and they all calculate the Money Factor as .00265.Most people on the forum are saying the MF is .00225.Which dealer in CA is giving .00225?
Also the acquisition fee is $825 for everyone and no one is willing to take less(so I guess thats an extra $200 to them!)

pattyp2 · December 2007

Please could you let me know the dealership names in LA which gave you these deals?

What was the drive away cost finally?

Thanks!

socaltiger · December 2007

Try Bob Smith BMW and ask for the Internet Sales Manager. I would tell you his name but I think it's against the rules on this forum. Also, I got another deal a little bit more from Shelly BMW in Orange County. Either should give you the buy rate of .00225 and another $1K rebate from BMW. I'm not too sure about the additional Owners Loyalty reduction in the MF that was posted above but you might want to ask and post what you find for the other members. Good luck!

macdad · December 2007

My deal today (current customer with lease ending this month)

528 white w/cream
Premium
Xenon

MSRP 48175
Selling Price 46000
BMW incentive -1000

590/mo tax incl.

No deposit for current customer. 825 acq. and 480 doc's. Compared Acq. and Doc's to many dealers in central and south Florida and this is very common and less than most locally. Many wanted to bump money factor and were charging dealer fees of 599.

webba · December 2007

Thank you for the response, Car_man.

The sales tax ($2,513.5) and acquisition fee ($825) are added into the cap cost. This pushes the price to $740 per month. The sales tax has to be payed initially in Maryland, and it is 5% of the MSRP. Does this sound about right?

mr_g_35_s · December 2007

2008' BMW 528i Premium pkg & Xenon lights
White/Beige

MSRP $48,175
Residual 76% $36,613
M.F. Estimate 0.00225
Term 24 months
Toatal MSRP Discounts
48,175 - 2,000 = 46,175
Additional Equip $0
Capped sales tax $0
Trade Equity as Cap red $0
Cash Cap red/rebate appl $2,400
Capped fees $1,324
ADJ CAP COST $45,099
Base Payment $537.43
Monthly Sales Tax(6.0000%) $32.25
Payment Estimate $569.68

Drive off
Up Front Payments $569.68
Security Deposit $600
Cap Cost Reduction $1400
Up Front Fees $220.49
Cap Red/Rebate Tax $144
Up Front Sales Tax $0
Cash Due on Lease $2,934.17
Trade Equity to COD $0
Rebate $0
Deposit $0
Misc. $0
Customer Cash $2,934.17
Cash Due at Delivery Estimate $2,934.17">link title

builderguy · December 2007

Was orig. not going to "post" but learned so much from this site i felt obliged to. Test drove 528i past Tues NNJ . Dealer wasnt great so i did some "shopping". Found most were willing to "deal" ..Overall very easy purchase. What I got..2008 528i..prem & cold weather..Monaco blue & beige leather..48125 msrp..I paid invoice minus $500.00..Yes, we split the 1k bmw lease rebate....24 month lease..$525.00 per month taxes included...15k per year..3k down...( no security, they bumped money factor a tad..) 73% res.. Cant say I could have been treated any better from dealership..Price was great but they treated me rite & that counts for alot..Gave me fair price on trade...etc...1 nnj dealer ( who shall remain nameless) could learn from them! hate dealers & managers who say anything to sell a car..these guys were great...& what a car!! Hope this helps someone..

builderguy · December 2007

Opps..MSRP was $48,525..

dark_katana · December 2007

Sorry for not getting back to you sooner loveandlight, I've been on vacation.

So far, your deal sounds pretty good. What's the money factor and residual?

beemerseeker · December 2007

Hello builderguy,
It is funny because I started my shopping on the same day for just about the same model. I was very dissatisfied with the first dealership and then traveled to the second. I ended up with a very high number to start with and take to my research.
Please share the dealership and even the salesmen who was able to pull off such a seemingly great deal. If you do not want to post online, please email me, bsminc@aol.com
Thanks!!

beemerseeker · December 2007

Hello All,

I am a leasing newbie. I am looking for info on two vehicles, the 2008 528xi and the x3. I appreciate all of the postings from you all as they have been extremely informative. I am not going to be able to take advantage of the incentive for 12/07 because I will not be able to purchase until mid-end of January.

I live in NNJ and would like to find out this info because according to this forum this is what I need in order to negotiate this purchase:
1 - Invoice price on a 528xi w/nav & cold pkgs, the money factor, residual percentage, and any January incentives you may know about. Looking to lease for 24/36 mos whichever works out better with 15k/yr
. Also, info adding prem pkg as well.
2 - Invoice price on a x3 w/nav & cold pkgs, the money factor, residual percentage, and any January incentives you may know about. Looking to lease for 24/36 mos whichever works out better with 15k/yr

Thanks, also any tips or rec's for dealerships and salepersons and also other deals made are appreciated.

loveandlight · December 2007

Hi dark_katana, hope you had a good vacation! :-)

We haven't done the paperwork yet, (Monday) but I will only accept no more than .00225 for the money factor, it has a 62% residual.

Does being a first time BMW owner have anything to do with paying a security deposit? I was wondering because another dealer told me that I could only get the .00225 money factor if I was a previous BMW owner or if I pay a security deposit.

kyfdx · December 2007

another dealer told me that I could only get the .00225 money factor if I was a previous BMW owner or if I pay a security deposit.

That is accurate...

rothsran · December 2007

Builderguy (and anyone else out there), I'm about to enter the market for a 535xi in Northern NJ (I live in Livingston) and would greatly appreciate any guidance as to dealerships that are worth my time (I want to try to cut out the bs). Thanks so much and have a happy new year!

loveandlight · December 2007

Thanks for the info! :-)

So if I don't pay the security deposit, how much does the MF go up from the base rate of .00225? I was wondering if a money factor of .0024 is good to accept?

janus010 · December 2007

Latest Deal offered by PA dealer:
2008 535i - CW, Premium, SP, Nav, Ipod.
MSRP is 58125.
Lease is for 12k/yr 24mo.
$5000 down which includes all fees etc.
$640/mo.
73% residual
Rate: .00225

Good deal or not. Other dealers said they couldnt even come close to it. What do you all think?

builderguy · December 2007

Bell BMW. Newton NJ...Sales gal is Judi..sales manager Jim.. Real good people. Both straight shooters

tuacmxa · December 2007

BEEMERSEEKER,

I am looking for the same deal you are on the 528xi and I am in NNJ - Randolph. Did you get any numbers yet? I am curious on both the 24 and 36 month being that the new body still is coming out in 2 years.

carnaught · December 2007

Compared to my lease deal it is fantastic.

IMHO, go for it.

tuacmxa · December 2007

BUILDERGUY

Your deal sounds to good to be true - I am in NNJ and looking for a similar car but I want the 528xi. I believe my MSRP is about $51K - at $3K more then yours how much should that affect the price per month?

I am not looking to put down $3k so I am not sure how that would affect my price - I would like to be in the $650 rangle

kyfdx · December 2007

Yeah.. the bump is .00015, taking the rate to .0024

It's a better deal to make the security deposit and get the lower rate..

builderguy · December 2007

Hi: Im not sure Tuacmxa..No math wiz here.. I knew I wanted the 528i so I used the Res. Values that I found on here.. I do know the xi is less of a Res. value...71% i think.. Talk to someone on here..First price I got on my car ( different dealer) was $2800 out of pocket & 673 pm..They based it on a 46k sell price so shop wisely..They do "play" with the #s..

loveandlight · December 2007

Hello all, does anyone know what the money factor would be for a first time BMW owner on a 2008 BMW 535i, 36/12K mile lease? I know the base rate is .00225.
How much should it go up if you DO NOT pay a security deposit? I'm supposed to sign the paperwork tomorrow and I need to make sure they are not charging me to much, any help greatly appreciated, thanks in advance!!! :-)

mr_g_35_s · December 2007

2008' BMW 528i Premium pkg & Xenon lights
White/Beige

MSRP $48,175
Residual 76% $36,613
M.F. Estimate 0.00225
Term 24 months
Toatal MSRP Discounts
48,175 - 2,000 = 46,175
Additional Equip $0
Capped sales tax $0
Trade Equity as Cap red $0
Cash Cap red/rebate appl $2,400
Capped fees $1,324
ADJ CAP COST $45,099
Base Payment $537.43
Monthly Sales Tax(6.0000%) $32.25
Payment Estimate $569.68

Drive off
Up Front Payments $569.68
Security Deposit $600
Cap Cost Reduction $1400
Up Front Fees $220.49
Cap Red/Rebate Tax $144
Up Front Sales Tax $0
Cash Due on Lease $2,934.17
Trade Equity to COD $0
Rebate $0
Deposit $0
Misc. $0
Customer Cash $2,934.17
Cash Due at Delivery Estimate $2,934.17

dark_katana · December 2007

Hello all. As most of you know, I've been active on this forum over the last couple of months providing target numbers and advising on how to get the best deal on a BMW E60. Since I held myself out as a knowledgeable source, I thought it only fair to show everyone how I did with my own new 535xi lease.

Ready? Here goes:

2008 535xi Space Gray, Black Leather, Dark Poplar Trim

Options
ZCW Cold Weather Package
ZPP Premium Package
ZSP Sport Package
205 6-Speed STEPTRONIC Automatic Transmission
322 Comfort Access
496 Heated Rear Seats
591 18 wheels w/performance tires (style 124)
609 Navigation System
610 Head-Up Display
655 Sirius Satellite Radio
677 Logic7 Sound System
6FL iPod and USB Adapter

Priority 1 Options

U6SW Black Nasca Leather
453 Front Ventilated Seats
775 Anthracite Headliner

Invoice $61,610
MSRP $67,145
Negotiated Price $62,842 (invoice plus 2%)

24 month lease/10K per year
Monthly payment $845

Nothing down but tax, tag, first month payment and refundable security deposit of $749.

Happy New Year to all!

Oh, and to the little elves at the BMW Dingolfing Plant--start building my car schnell!

pagelmunda · December 2007

Dark Katana

Where did you buy the 535xi? Thanks in advance.

carnaught · December 2007

Awesome....

Happy New Year to you and all !

dark_katana · December 2007

Habberstad BMW, Huntington, New York

claire_m · December 2007

Hi:

I'm new to the board and want to buy a 528i 2008 asap! The best (I think) deal I have so far for a 528i w/ premium package:
24 month lease
12Kmiles/yr
5K down
$468 (including tax)/month

Any thoughts feedback would be greatly appreciated. THANKS in advance

dark_katana · December 2007

Hi yourself

I'll do a quick back of the envelope for you and show you how this works. Let's leave taxes, tag, bank fee and security deposit out of if for simplicity

528i Base Model Invoice--$40,755, MSRP--$44,300
Premium Package Invoice-- $2,095 MSRP-- $2,300
Destination and Handling $775
Total Invoice--$43,600
Total MSRP--$47,375
$5,000 down (Subtract from MSRP)
December lease rate for 528i--24 months/12000k-- Residual 75% of MSRP  .00225 Base Rate Money Factor

Buying the car at MSRP gets you a monthly payment calculated as depreciation fee of ($42,375 - $35,531)/24=$285.16 plus
Finance fee of ($42,375 + $35,531) x .00225 = $175.29

Total payment of $460.45

Unless you live in a very high sales tax state (like me) even factoring in the bank fee and the tax, it sounds like you're getting the car pretty close to MSRP if you only have the premium package as an option. In addition, there is a $1000 cash incentive from BMW to the dealer on the 5 series right now that seems to have gone straight into the dealer's pocket with no credit to you.

Try negotiating the purchase price from invoice not MSRP and then apply the lease rate. My target is to get the dealer down to invoice plus 2%--you may not get there, but that's the target to shoot for.

It's also always easier to calculate your deal if you pay the tax, tag and bank fee upfront. You shouldn't be rolling the tax into the lease payment anyway since it doesn't make much sense to finance a tax payment.

Not to pressure you, but the BMW December lease rate I quoted above is only good through 01/02/2008, so you need to lock in this week.

pagelmunda · December 2007

Thanks much dark katana. Is there anyone in particular at the dealership you spoke with? Best wishes for the new year.

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