BMW 5-Series Lease Questions

wooohaaa · November 2005

I'd like to know what you think a fair offer on the following 525i would be. Here's the details....

2005 525i
12,391 miles
Jet Black/Black leather
Automatic
Premium Package
Cold Weather Package
Xenon
Satellite Prep
Wood Trim

Need to make an offer soon. It's listed at 42,995. What's the best way to go if I would like to finance a used car like this 48-60 months? What else can I do to haggle them down.

Errr.. Who knows, they might be reading this too.. But I'd like a second opinion anyway.

If it's out of reach then I'm going with an Acura TL.

Thanks!

wooohaaa · November 2005

Hi

BMW is now offering a 24 month lease deal. Can you tell me what kind of numbers I should expect for the following setup. Is a 24 month lease even worth it?

2006 525i
Black Sapphire\Black Leather
Premium
Cold Weather
Automatic
Xenon
Rear Seat Heating.

MSRP on this is 48,370.

I'd like to have 12000 miles.
What MF and residual should I be looking for?

Thanks...

Acura TL on hold for now

hpowders · November 2005

Residual = 73%
Base money factor = .00160

If you were to pay a selling price of invoice + $2000 ($46,315), I come up with a pre-tax monthly payment of $589 using the above base money factor.
This is a conservative estimate.
You can, of course, try and bargain the selling price for less.

ktran · November 2005

I am thinking about leasing a 2006 530i in Southern California and would like to find out about your experience when returning the car at the end of the lease term. How do BMW dealers charge for minor scratches and dings that are probably unavoidable with a 3-year lease?

Thanks in advance for your help.

bmwdoug · November 2005

Is this 24 month Lease Promotion currently being offered by BMW considered a good deal? What if a person wants 15,000 miles per year? What if you would plan on buying the car in two years when the lease is up?

jmcmbz · November 2005

So, I got the car and it's beautiful. I'm not in love like I was with my 2001 330i SportPkg but it's definately a step up from my MBZ C-class that I had for 1 year. The security deposit was lowered to $650 incidentally.

Picked the car up and drove to the Bay Area and back for a 1000 mile trip. Got a nasty chip on the winshield which sucks! Mileage was great (avg 27mpg for trip). I'm a little sorry I did not get the sport package. A bit floaty here and there but very smooth. Was wondering if anyone can recommend some good summer tires to replace the all-season Continentals to maybe increase handling and stability. Was thinking Michelin PS2's or Bridgestone RE750's.

Anyway, kyfdx, my question is, does it look like I could have gotten the same car for almost the same (or less) payment on the 24 month lease had I waited one week? I would have prefered this had I known about it. Maybe I don't want to know. In all my research I had never noticed BMW change lease offers mid-month like this.

Thanks again for the insight.

kyfdx · November 2005

The 24 month deal isn't new.. It has been available all along... It is the same money factor as the 36 month deal, but with a residual 11% higher...

That is a relatively good deal for a 24 month lease... Usually 24 month leases are much more expensive than 36 month leases.. In this case, the two terms are relatively the same price.. but, when you lease for two years, any fees (like the acquisition fee), get amortized over 24 payments, instead of 36, and that tends to push the pendulum back in favor of the 36 month lease... You may have been able to get about the same payment for 24 months, but I doubt it would have been lower.. It wouldn't be a substantial difference, either way..

I understand the lure of a 24 month lease.... I like to trade cars as much as anyone.. but, if you get a really good deal on a lease, keeping it for 36 months is a good thing.. there is no guarantee that you'll be able to get that low of a payment the next time around.

regards,
kyfdx
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ktran · November 2005

jmcmbz,

I tried to enter the same package on the 525i into Edmunds and the MSRP and invoice price (including Destination) were $50,415 and $46,175. The discrepancy with your numbers was due to your base MSRP was $41,800 but on Edmunds it was listed for $42,500. So your $47,000 selling price is actually very nice. Congratulations on your new car.

jmcmbz · November 2005

Thanks ktran! I am happy with the deal. My car was a pre-September price increase so that is where the discrepancy lies.

You're right kyfdx. I'm sure I can be happy for 3 years with this car. Of course, I'm already wondering what changes or advancements may occur in the next couple of years but that's what "car porn" (as my wife calls it) is for.

With my old E46, I ended up liking the syling of my 2001 better than the mild updates for 2002+.

bmwdoug · November 2005

What would the payments be on a 2006 525 that has an MSRP of $52,505, and a purchase price of $50,000. The tax rate is 7.75%. I would like to know the payments, money factor, and residual for both the 36 month lease and 24 month lease. Can someone help Thank you. Here are the basics:

MSRP $52,5050
Purchase $50,000
Tax is 7.75%
Options:
automatic
sports package
premium package
navigation
power sun shade
xeons
rear side airbags
folding rear seat

kyfdx · November 2005

bmwdoug.. you left out the mileage allowance..

regards,
kyfdx
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bmwdoug · November 2005

Kfdx, thank you. I did forget the mileage allowance. I am talking about 15,000 miles per year. So, again here are the basics:

MSRP $52,5050
Purchase $50,000
Tax is 7.75%
Mileage is 15,000 miles per year
Length is 36 months
Length is 24 months
Options:
automatic
sports package
premium package
navigation
power sun shade
xeons
rear side airbags
folding rear seat

kyfdx · November 2005

'06 525i
$52505 MSRP
$50000 Selling price
$50625 Cap cost (selling price + acq.fee)
money factor .0016
3yr/45K lease
residual 60%
payment = $663/mo.+ 7.75% tax = $715/mo.
2yr/30K lease
Residual 71%
payment = $697/mo.+ 7.75% tax = $751/mo.

Due at signing = 1st payment + security deposit + title/license fees = Approx. $1700-$1800.

regards,
kyfdx
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bmwdoug · November 2005

Wow, that was quick! Thank you Kfdx. You are a HUGE help on this Fourm. If you have time, I have one more question. What would the numbers be for 12000 miles per year?

Thank you.

kyfdx · November 2005

$685/mo. and 708/mo. for 36 and 24 months respectively... tax included..

regards,
kyfdx

bmwdoug · November 2005

Kfdx, thank you very much.

bmwdoug · November 2005

I am learning quite a bit about the Pros and Cons of Leasing on this Forum. I have always bought in the past, so this Forum has been a great resource. Can you good folks give me your opinions on returning a BMW when the lease is up?

Here are the question that most intrigues me: In general, if you want to purchase your car at the end of the lease, can you get BMW to sell it to you for under the Residual price?

Can you negotiate the price?

Has past experience indicated that BMW will accept offers below the Residual Price? If so, what percentage below? Or, does BMW stick hard nosed to the Residual Price?

As always, thank you all for the super help

koberry · November 2005

Hi:

I gather from reading recent posts that BMW appears to be offering some lease support on 24 month leases. Can you provide money factors and residuals for:

2006 BMW 525i
10,000 miles
24 months
+
36 months?

Also, are the money factor/residuals expected to change in December? I noticed that Lexus and Mercedes appear to be already running their end-of-year promotions.

Thanks,

Ken

hpowders · November 2005

10,000 miles 24 months, residual 74%, mf 0.00160
10,000 miles, 36 months, residual 63% mf 0.00160

macdad · November 2005

Does BMW offer any 1 pay lease programs - 24 or 36 month on a 325 or 525. Your boards are very helpful and I am doing my research before going to the dealer.

Thank you,

macdad

bdr127 · November 2005

I assume you're referring to a pre-paid lease? If so, then yes, BMW does offer this.... There are some other people around here that have experience with this that can definitely help you out.

bmwdoug · November 2005

Hmmm, one pay lease. What would be the advantages of a one pay lease? I am learning as well.

I guess that by getting a one pay lease you can use BMW to basically subsidize a two term loan. What I am thinking is this: (1)A buyer pays the lease up front. (2) Thus the buyer has no lease payment during the lease period. (3) Buyer is able to put a set $ amount, say half of what lease payment would have been, into a higher interest paying account. (4) Buyer will have increase cash flow, since saving amount is about half of what the lease payment would have been. (5) At the end of the lease, the Buyer actually purchases the car, using the money that he/she has been putting into the special account as a down payment on the residual, thus keeping the payments consistent, but now has total ownership.

I believe this could work out well if the buyer has enough cash on hand to pay the lease upfront. And, if the buyer is able to negotiate a lower buy price from BMW Financial than the stated Residual. I do not know if BMW negotiates on a buyout or not. It would be key.

It would have to be compared against just buying the car outright, using the lease up front payments as a down payment. But, it is an interesting concept. I would be interested in opinions on this issue.

macdad · November 2005

A few years ago, Cadillac offered a prepay lease and Lexus currently advertises a one pay lease on their website. A friend familiar with Lexus "says" there is a discount to prepay the lease. Does BMW offer any additional/increased discount if you prepay (maybe on the MF - prepaying anything vs. finance usually only saves interest)? As far as buying at the end of term - I leased a Volvo a few years ago and they were very aggressive at lease end for me to buy.

bmwdoug · November 2005

Macdad, thanks for the reply. Very good question, regarding a further discount for prepaying a lease. I am not sure either. As I suggested in my original response to the original post, if BMW allows negotiating or is aggressive in terms of deals on a buyout at lease end, a Prepay Lease could be a nice option.

macdad · November 2005

This may take a day but I recently purchased an E320 from a friend who worked at local Benz dealership with prior BMW employment (sales). Very knowledgeable person but moved to Atlanta a couple of months ago. Will locate him and find answers. Maybe someone else will have an idea by then.

If there is ends up being no savings. I could stick the money in an account to gain some interest and let the payments be automatically deducted each month.

boyla · November 2005

I did put my security deposit to hold the car that I want. I am going to go sign the contract on 12/1. I was wondering if there is gonna be big MF difference on Nov/Dec. Also, I was wondering if it is possible for me to get Dec's MF if it comes out to be lower. Thank you for help.

doczuck · November 2005

could you please tell me how to do the math to get to the totals using the residual and money factor
and purchase price thanks

kyfdx · November 2005

Try this:

"How to Calculate Monthly Lease Payments"

doczuck · November 2005

thank you very much it will help

wooohaaa · November 2005

If I plan on keeping the car after the lease is up how does this sound...

MSRP on a 2006 530xi with the options I want ~ 53K

Suppose agreed on price of 51K. Now remember I'm planning on buying the car after the lease is up.

So....

If I apply a trade in of ~6K, plus additional down payment of another 6K. I'm in Ohio, taxes are 6.5%

51K - 6K(trade in) - 6K(down payment) = 39K

I would lease the car for 36 months with 12K or 15K miles per year.Then purchase(finance over 3 years) after the lease is up. Does it matter if I go over the miles if I'm planning on buying the car in the end? I know they would charge me for the additional miles if I gave it back but what happens if I buy it and am over on allowed miles?

Does it make sense to go this route? Lease for 3 years then finance the rest after 3 years? I was also planning on trying to set aside ~ 200 a month throughout the lease and use this as a down payment when it comes time to finance after the lease is up.

Why am I loking into this scenario? I'm trying not to get locked into a high monthly payment by financing 51K - 12K(trade-in and downpayment) = 39K all at once. Is it a bad idea to drop 12K upfront since I'm leasing at first?

So what do you think? What type of payments am I looking at during the lease and then when I finance? Also is there much of a chance to negotiate a lower buyout at the end of the lease? How much over the 51K inital car price will I end up paying going this route?

Gosh I really want a 5 series.. Just don't want to pay an arm and a leg to get one.

kyfdx · December 2005

If you want to buy the car, and the selling price is $51K, then that is what the car costs... Jumping through all these hoops will make for a lower payment, at first... but, ultimately.. the car will cost the same amount..

By leasing first, you can take advantage of a fairly low interest rate (money factor), but you give up part of that advantage by having to pay an acquisition fee on the lease...

Then, you may have negative sales tax issues, with leasing first, then buying... that depends on your local state tax laws..

If you have $12K down, and the payments on $39K are too high for you (about $750/mo. over 60 months)... then you really should be looking at a less expensive car... The going price of $53K+ cars is actually.... An arm and a leg...

It is pretty hard to get by that math.. $51K is $51K...

regards,
kyfdx
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doug_999 · December 2005

Do you know what the residuals and money factors are for the 550 for the month of December? 12K/36M would be great!

Thanks in advance!

bmwdoug · December 2005

I think you have an interesting concept. I too have considered a similar scenario to what you are suggestion. If you scroll back some messages you will find my original post regarding the same type of concept. I think the key is: Does BMW allow you to negotiate a lower buyout than the agreed up on residual? If so, you could save money going your route.

sergeym · December 2005

Buying your own off lease car may make sense but you need to follow the rules of the game. BMW plays funny games with lease residuals and if you play by their rules you may win in the end. First you lease. Then when the lease is up you buy the car but not from BMWFS. If you buy from BMWFS you will have to pay the residual that is sometimes 20% higher than the real world wholesale price for the car. You should work with your friendly BMW dealer and talk them into buying the car from BMWFS at the wholesale price and selling it to you with a little ($500-1,000) profit. If I remember correctly my 2002 540 had $37K residual and $29K real life wholesale. So instead of buying the car from BMWFS for $37K I could buy it from my dealer for around $30K. I decided to get a new car at that time though, happened to like E60 design more.

bmwdoug · December 2005

That is a great scenario. I would consider it if I knew that my friendly BMW dealer would sell the car to me at $1000 over wholesale. How do you get a guarante that your Dealer will sell it back to you for $1000 over wholesale? Is it possible to have a written contract stating that the transaction will take place at the customer's discretion?

kyfdx · December 2005

It wouldn't be adviseable to lease a BMW, planning on buying it for less than the residual at lease end... As mentioned above, BMWFS will rarely, if ever, negotiate a lower price with the lessee... If they are going to lower their price, they'll do it for one of their dealers, instead...

So.. you may be able to get your dealer to sell it to you at a lower price than the residual... but, you may not (I'd put the chances at about 10%)..

It could happen... but, it isn't a very good plan.

regards,
kyfdx
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beng1 · December 2005

Could you please provide the current residual % and money factor for a 530i assuming 36 months and 12k/yr? Also, what is BMW's current reduction in money factor for each additional security deposit? Thanks in advance for your help.

CarMan@Edmunds · December 2005

Greetings Ken. If you were to lease a 2006 BMW 525i through BMW Financial Services prior to January 4th for 24 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00160 and a whopping 77%, respectively. The numbers for an otherwise identical 36 month lease should be .00160 and 63%.

Car_man
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CarMan@Edmunds · December 2005

Hi doug_999. If you were to lease a 2006 BMW 550i 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 .00260 and 59%, respectively.

Car_man
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CarMan@Edmunds · December 2005

Here you go, beng1. If you were to lease a 2006 BMW 530i 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 .00140 and 62%, respectively. The last time that I checked, BMW FS allowed consumers to make up to five additional security deposits deposits on leased vehicles, providing a .00005 money factor reduction for each one, for a total possible reduction of .00025.

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yuryg · December 2005

Car_man,

The 77% residual for 2yrs/10k miles is almost too good to be true. I was told by BMW dealer that a 24m/12k residual on 530xi is 73%. Additional miles can be bought for 16 cents during last 6 months of lease. If so, the difference in residuals between 10k and 12k leases is about 77%-73%=4% x ~50k = 2,000. And the extra 4k miles would cost only 4k*.16= 640. So one can go with 10k lease, save $2000+financing and pay only $640 at the end. Tell me 'tis so!!!

yuryg · December 2005

Car_man,

Does this mean that by paying 6 security deposits (700x6=$4,200), one can lower the money factor to .00115?
What is the downside of paying so much in security deposit aside from foregone interest (which is about 100/year in tax-free income)?

Thank you.

godfather9 · December 2005

I am looking at leasing a 525i, leather, premium, sports, navi. First off this forum is incredible and the sales person was very suprised at my knowledge of leases and mf, so thanks. Long story short, trade in value of $7500 (my 2000 3 series engine decided to go), $2000 down (security $550, DMV $380, First Month, $581 Tax Cap Cost reduction(not sure about that one)) MSRP of $51070, got the price at $1070 less plus the trade in comes to $42500 Cap Cost. By my calculation including tax this should be $471 per month. 2 questions, is my math correct, and also since the car is being moved from another dealership, they are telling me they can't ship it without a deposit and they would prefer I sign the paperwork. I told them I would not sign, but is it reasonable for them to ask for a deposit??

amst · December 2005

What is the residual and money factor for leasing a 525xi for 24 months, 10K miles/yr??...and 12K/yr?

thanks.

David

hpowders · December 2005

10k: 75% residual, mf 0.00160
12k: 74% residual, mf 0.00160

godfather9 · December 2005

Also to add to my original post, they have my old vehicle on the lot so couldn't that take the place of the deposit??

godfather9 · December 2005

Sorry, new to posting, forgot these

36 month lease
15k miles per year
automatic

This is to go with my 2 previous posts!!

Thanks

tony525i · December 2005

I am trying to find the best deal among competing dealers for leasing a 2006 525i - 3 year, 15K/year.

MSRP is about $47250 which includes auto steptronic trans, premium and cold weather package and destination.

I have gotten one dealer down to $640/month (plus tax). He said the standard residual value for this month is 60%.

Until finding this site, I didn't know much about the money factor.

Based on other messages in this message board, the quote seems high. I am not putting anything down and believe I can negotiate acquisition fee to around $600.

What can I negotiate the money factor down to? Can you estimate what my monthly payment would be based on what you think is an attainable MF via negotiation?

tony525i · December 2005

Has anyone had experience with swapalease.com? I requested info through this website and was later contacted by Platinum Motors in Brooklyn, NY. They appear to have great pricing, but I am concerned about dealing with someone I don't know. Their process is to send you a credit app which I then return. Upon approval they send me the lease agreement which they say is via BMW Financial Services. I return the agreement along with all up front fees and then they ship me the car. Any comments?

jpk37 · December 2005

I leased the same car for 36 months 15k per year from Century BMW in Huntsville, AL. The MSRP was 47220 and the dealer discounted it to 44220 with $300 doc fee. My money factor was .0018 with no security deposit. The monthly payment is 599 plus tax. I could have saved a few dollars per month in Atlanta but it was not worth the drive.

Hope this helps.

BMW 5-Series Lease Questions

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