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BMW 5-Series Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey nc_driver1. Here's the information that you're looking for. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2010 528i with 15,000 miles per year are .00245 and 58%, respectively.

    The residual value for a lease of this car with only 12,000 miles per year would be 2% higher.

    When negotiating your lease, make sure to take advantage of the $2,500 cash incentive and additional $1,500 cash incentive for loyal customers (if you are eligible for it) that are currently available on this model.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • rob_m3rob_m3 Member Posts: 8
    Hi Car_man, thanks for your reply.
    I'm in the market for a 528 or 535, and I'm not in a hurry to get one, but at the same time I dont want to loose the $2500 Holiday incentive BMW is offering now, Do you think BMW will lower the MF in January to get more aggressive or is this as it will get?
    right now my dealer is offering the following to me:

    All offers are with 36/10 $2000 total out of pocket

    1. 2010 528i only option is VP $568 + Tax
    2. 2010 528i Sport Pckg, VP, Xenon, $619 + Tax
    3. 2010 535i Premium, Sport, $655 + Tax

    Your thoughts

    Thanks

    RM
  • jbomar1072jbomar1072 Member Posts: 2
    Does anyone know the residual value for a 4 yr lease at 10K per year? 12K per year?
  • manhattan_bmwmanhattan_bmw Member Posts: 2
    Looking to lease my second 528xi for 2010. Edmunds shows MSRP of $48,100 and invoice of $4,250. Dealer claims he's giving it to me for $500 over invoice. With december sales event and loyalty program, there is $4000 in bmw money. If the MF is .0025 and the residual is 61% on a 3 year lease with 10K miles/year, how do I calculate what the monthly payment should be? Dealer also will take back my current lease 2 months early and credit the outstanding payments toward the new one.
  • southpasssouthpass Member Posts: 1
    Would you kindly explain the concept of "lease money factor" and the relevant calculations behind it and or the analysis performed with the factor.

    Thank you.
  • 2buyabmw2buyabmw Member Posts: 4
    HI Could u pls tell me which dealership and the price offered.I am also looking to lease a 528i base model.Thanks for your help.
  • nc_driver1nc_driver1 Member Posts: 56
    Many thanks Car Man!
  • nlkleinbergnlkleinberg Member Posts: 17
    It's really simple.

    1. Calculate residual: 61% of MSRP. MSRP in your case is $48,100.
    2. Figure capitalized cost: in your case the invoice price - the $4000 in bmw money + inception fees ($825?). There may be other items you'd want to put in there but that's a good start (I assume no down payment).
    3. 2 - 1 is your depreciation, divide by 36 to get amount of depreciation per month.
    4. Take (1 + 2) X .0025 to get your monthly finance charge.
    5. Add 3 & 4 to get your pretax payment per month. Depending on where you lease you may need to pay the Sales Tax upfront or you can add it per month to the payment.

    There are a few other wrinkles but that should be about it (at least you can get an idea).

    HTH (unless I'm wrong, in which case I would welcome any corrections).
  • stonefoxxstonefoxx Member Posts: 14
    Hi all - I have an opportunity to take over a lease- 2009 528xi fully loaded-7k miles- 26 months left on the lease- the current leaser wants 2k for his pocket and wants me to pay the 600.00 lease transfer = 2600.00 out of my pocket- the monthly payment is 590.00 a mo. is this a good deal? can I do better at bmw on 2010 with all they are offering now?
    thank you
  • rob_m3rob_m3 Member Posts: 8
    Hey Car_man, or anybody,
    I've being negotiating with my local Dealer (miami Fl) for a few weeks, and this are the best numbers so far:

    2010 528i with Premium Package
    MSRP $47575
    Selling price $42500
    61% residual
    .00245 MF
    36/10
    2000 total money out of pocket
    $549 + Tax ($588 with tax)

    what do you guys think??
    Dealer is telling me this are the rock bottom numbers.
  • kindzcarkindzcar Member Posts: 29
    I'm picking up a 2010 535xi in a few days no money down except I bought down the $$$ factor which is refundable. 12k a year 36 months with premium,value,park distance,nav,sat,logic 8 stereo....... MSRP $58,800--------$639 a month tax included.
  • rob_m3rob_m3 Member Posts: 8
    Thats a great deal. are buying the car from a south florida dealer?
  • kindzcarkindzcar Member Posts: 29
    No, NY Metro Area dealer.

    BMW in my opinion give buyers some of the best options for leasing. You need to focus on reducing the cost of the vehicle and keep pounding on them to lower it. Once you have achieved this goal, then tell them you want to buy down the money factor. It will reduce your cost even further, plus you get the money back or roll it over to your next lease if you lease another car with a BMW.

    Good luck, BMW is wheeling and dealing right now IMO. I was seriously thinking about downgrading from my current 530 due to the economy and current lease prices but I couldn't walk away from the offer they made me for the 535.
  • 2buyabmw2buyabmw Member Posts: 4
    HI Kindzcar,

    Would you mind letting me know the price you paid and MF you got.I am looking for a 528i with VP only.Also the dealer in NYC you went to.I would really appreciate that.Thanks.
  • gtligtli Member Posts: 27
    I've taken over two leases of cars I found on Swapalease.
    A 335i and a GL450 Good experience both times.
    I was given $1k in cash to take the 335 and $2500 to take the GL.
    Your guy has it backwards.
  • jbomar1072jbomar1072 Member Posts: 2
    rob_m3

    Who is the dealer in Miami you are dealing with? Trying to lease the same car up in palm beach county but could go down to Miami.
  • rob_m3rob_m3 Member Posts: 8
    South Motors BMW.
  • jtlajtla Member Posts: 388
    I think it all depends on how the original lease was structured. If it was a no down-payment lease, the original leasee will need to pay an incentive for someone to take over the lease. After all, he/she enjoyed the new car smell. On the other hand, if a person, while not advisable, paid a down payment -- which reduced monthly payment -- he/she will want/try to get a portion back.

    In addition, the selling price (to calculate capitalized cost) and money factor also play important role. Let's say someone got a lease with 0.00095 money factor, that lease, with lower payment, may be more attractive than a new lease with 0.0025 money factor. Then there may be refundable MSD (multiple security deposit), which the original leasee will definitely want it back.

    Therefore, it is possible to PAY the original leasee to take over his/her lease.
    .
  • shaker58shaker58 Member Posts: 130
    please send info on your dealer in ny
  • mjr2umjr2u Member Posts: 13
    Hi Kindzcar,
    Can you tell me more about "'buying down the money factor"? I think BMW's MF is ridiculously high right now (0.00280) in San Diego, CA. You mentioned that the money used to buy down the rate is refundable or you can roll it over??? Tell me more about how exactly that works....please!!! Thank you!!
  • kindzcarkindzcar Member Posts: 29
    You max out the security deposits. At the end of the lease you get it back or you can roll it over to your next lease. Also, keep ur miles at 12k as ur residual stays higher then 15k and you can buy ur miles up with 4 months left in ur lease for .01 more then up front.
  • banker71banker71 Member Posts: 8
    Car_man

    I am negotiating for the lease of a 2010 528i with M-Sport, Premium, Cold Weather, Sirius, Nav for MSRP $55,320. The dealer provided the following: 61% residual for 36 months with 10k/year (that's all I need) and money factor of .00285. The money factor seems to be high given other posts. They said that there is $2500 from BMW but they said I cannot get the $1,500 loyalty even though I leased a 2006 330i from BMWFS because I bought out the lease more than 6 months ago.

    Can I get the $1500 Loyalty?
    Can you confirm the MF- seems like they are marking it up.
    Is it reasonable to start at invoice less $4000 ($2500 and the $1500)?

    Thanks in advance. You helped me get a phenomenal deal on my MB GL320 lease- thanks for that too.
  • mobilejaemobilejae Member Posts: 15
    I am currently at the end of a lease on 2008 328i convertible hardtop, ending end of Feb 2010. The dealer said that they would do an early termination. Gave me this deal on a 2010 528xi:

    Price: $50,987.20
    term: 36 mos
    MF: .00250
    residual: .60

    Initial payment: $6,623.99
    residual: $31,065.00
    PMT: $682.83

    The car comes with Premium package, Value package, and Navigation.

    this includes the $2,500 incentive only.

    Can I do better?
  • johninDCjohninDC Member Posts: 8
    Wow - this sounds really bad. No $1500 loyalty. How many miles / year? What is the msrp and cap cost? Can you provide details on your $6k payment - how much is cap cost reduction, tags, fees, etc?
  • mobilejaemobilejae Member Posts: 15
    The sheet he gave me says:

    Price: $50,987.20
    MSRP: 51,775.00

    and no break down on the $6,623.99 but says everything is included. This is for 12K miles per year. He says that the loyalty is for previous X5 owners. I'm checking some other dealers....
  • scravscrav Member Posts: 5
    what a process first time potential car lease
    here are the facts:
    2010 528xi premium and value package, navigation, satellite radio and park distance control.
    MSRP $53,120
    mthly payment $648
    nothing down total payout $1895.75
    unfortnately i don't have the $ factors yet..any intial thoughts would be welcomed
    thank you

    new comer!
  • johninDCjohninDC Member Posts: 8
    If you are thinking of leasing a 5 series in the next 120 days, the question do you pull the trigger now with holiday cash or wait another 1-3 months. I was told they are no longer making the 2010s and the new design for 2011 should hit the dealers in May. Take a look back 6-7 months at the E350 - MB was discounting the car $10k and leases were getting done around $520/month with no money down.

    Will BMW offer same type of deep discounts in the next 30-120 days?
  • 2buyabmw2buyabmw Member Posts: 4
    The dealer I talked to said pretty much the same thing.But he was doubtful about the price reductions.I am also totally confused as to whether pull the trigger now or wait.He also told that since they have stopped the production you might end up with a vehicle that has either too many or too less options. :confuse:
  • mjr2umjr2u Member Posts: 13
    Don't mean to be dumb here....but, my dealer isn't charging me a Security Deposit. You say 'you max out the security deposits" - please explain (in detail please). I'm coming up to the end of my '07 535i lease, and they made me a great offer on ordering a new one with all of the options I want, but the money factor sucks! If you can explain your strategy, I'll be saved from having to give up my next BMW for an Accord! Thanks very much!!!
  • kindzcarkindzcar Member Posts: 29
    What dont you understand?? Tell the dealer that you want to buy down your money factor. By doing so you max out your security deposits. Any dealer will know what you are asking them. They may not like it, but that is their problem.

    Also, I am not sure BMW made the 535 in 2007. I believe that it came out in the 2008 model year.
  • scravscrav Member Posts: 5
    Johnin DC..thank you for the insight..i've negiotated them down to $1,895.00 origintaion fees and fees (nothing down) and $609.00/mth 12k miles 3 years.
    msrp $53,100.00 value and premium package w/nav. 525 xi 2010

    long journey from $1900 down and $689.00 a week ago...is there any fat left to trim?
  • mobilejaemobilejae Member Posts: 15
    So your one time payment out the door is $1,895? What state are you?
  • mobilejaemobilejae Member Posts: 15
    Car_Man or any other knwledgeable gents here..

    I am going from a '08 328i convertible lease to a new 528xi lease. Are there any money from my old lease that I can carry to my new lease? When I looked in my BMW FS account online, security deposit says $0, so does that mean I have nothing to carry over? Please let me know....

    Thank you.
  • nc_driver1nc_driver1 Member Posts: 56
    Hi Car Man,

    What are the requirements to qualify for the $1500 Loyalty incentive for a 5 series? As per local dealer, you have to move from a 5 series to a 5 series lease. Is that true? Thx
  • bmwaudi2007bmwaudi2007 Member Posts: 5
    Edmunds.com lists $1500 Loaylty cash for 5 series for those who have current lease of X3 or finished lease of X3 within last 6 months. My dealer in NJ says that he checked with BMW and it is only who finished the lease of X3 are eligible. Current X3 lessees are not included.
    Is there an official BMW site where it can be verified?
  • scravscrav Member Posts: 5
    yes, $1,895 out the door
    i live in philadelphia, PA (2.0% sales tax in phila.) should i pull the trigger...?
  • briandcbriandc Member Posts: 15
    Does your $609/month include PA tax? If so, this sounds pretty good to me. What dealer? I might need to contact them.
  • drjyothidrjyothi Member Posts: 12
    how did it work as far as sales tax goes when you took over the lease?

    i'm also looking at swapalease but not sure if my local tax ofc here in dallas is going to ask me for a few grand in sales tax when i go to register the car.
  • scravscrav Member Posts: 5
    holman bmw - marlton, nj
  • amandalalamandalal Member Posts: 3
    Hi Scrav. I am also looking for 2010 528XI lease with navigation/value/premium package. The deal you getting is $1,895.00 in sign on and $609.00/mth is far superior than I am getting. Best offer I got so far is $4000.00 sign on and $658.00 per month.

    Does $1,895 includes 1st month payment and monthly payment of $609 includes the tax?

    Could you please confirm your deal? Thank you
  • scravscrav Member Posts: 5
    holman bmw in marlton, nj I am a rtrn. customer and don't have to outlay security deposit. Also keep in mind that 2011 should be rolling out in may or so. I did beat them up pretty good and played about 3 or 4 dealerships off of them giving them the last rights to earn my business. I am also told I basically stripped all the "fat" off the car and they will be barely making anything on me....
  • jkenjjkenj Member Posts: 1
    HERES THE DEAL M GETTING.
    WANNA KNOW IF THIS IS A GOOD DEAL.
    2010 BMW 528i

    Deep Sea Blue Metallic
    Creambeige/Bllack Dakota Leather

    ZPP - Premium Package
    ZVP - Value Package
    205 - STEPTRONIC automatic trans.
    438 - Dark Poplar Wood trim

    With first payment due of $615 at signing, you would have 35 more payments on a 3 year lease at 10k miles per year.

    Msrp:$47.575
    Selling Price:$45.150
    Lease Cash $4000 ($1500 Owner Loyalty, $2500 Rebate used as down payment)
    ------------------------------
    DMV Fees $70.75
    3% Va Tax $1,354.50
    Doc Fee $99.00

    36 months/10k miles/$612.02 payment with a money factor of .00285, and a residual of 61%. Capitolized Cost :$43.602.
  • freezedogfreezedog Member Posts: 11
    Just picked up my new 528i Space Gray with Black with M Sport, Value and Premiumn packages. I got it from Moritz in Arlington. I hingly recomend Moritz. They were by and far the the best price in the Dallas area. I would stay away from Classic as they don't even live in the same universe. Merry Christmas all.
  • wesleyan92wesleyan92 Member Posts: 4
    I leased a 2010 535 with value package, sports auto transmission, sports package, and rear side airbags. Car MSRPd for $55,710. I negotiated pretty hard and agreed on $500 over invoice plus got to apply the $4K holiday credit ($2.5K holiday + $1.5K loyalty). In TX I pay sales tax on the entire purchase price (but was able to use my returning lease as a lease trade in) which reduced my sales tax from $3.3K to $1.6K. Paid only my first month payment upfront and rolled everything into the cap cost ($140 ttl +doc fee, $925 lease acquisition cost and taxes). My monthly payment is $663. My dealer did not jack up my base money factor (which I see they are doing in your case - base money factor is .00240). Mine is also a 3 year, 10K a year lease.

    Absolutely love the car - I graduated up from a 2008 528. The sports package coupled with the sports auto transmission makes this such a fun car to drove.
  • rjorge3rjorge3 Member Posts: 144
    freezedog, can you provide me with the details of your deal. I am looking almost for the same car but withouth the premium package: 2010 528xi with M package and value package (so the x will replace almost the price of the premium).

    Did you lease or buy? What was the msrp and what was your cap cost used for the lease or the final negociated price of the car?

    Thanks in advance for your reply and if anyone here has leased a similar car, please share your details. I am located in Central NJ.
  • drofnatsdrofnats Member Posts: 4
    I am in the market to lease a 535i 36 months/10k miles/$0 down. With options, MSRP is $53200 and inv $49110. Can I subtract the $2500 holiday money from the invoice price? Can you tell me the current money factor? I have seen 4.9% in some of the postings, but I also saw that bmw is offiering 3.9% - special offer on 535i. Do you know if this rate is still valid? I am in sw fl and a current 7 series lessee.
    Thank you for your help. Always learn something!
  • chris218chris218 Member Posts: 8
    I have a lease offer from a dealer on the 528xi with value package, MSRP is $48,925 (36 months, 10k/year). $615/month with only 1st payment due at signing. All fees, including taxes (7% NJ), have been rolled into the payment. Any comments, feedback & advice would be appreciated.
  • jayriderjayrider Member Posts: 3,602
    Did they disclose the cap cost,money factor and residual value? Seems like a decent deal with little down and everything rolled into the payment. Would like to know the numbers.
  • chris218chris218 Member Posts: 8
    residual is 61% and I believe the money factor is .00250. don't know the cap cost reduction.
  • jayriderjayrider Member Posts: 3,602
    Figured your lease with a cap cost of 44200 -- a whopping 4725 off msrp including 2500 holiday cash. Payment would be 583 excluding fees and taxes. This means you are paying only 1152 in total taxes and fees. I would be surprised if that deal exists. If it does you got the deal of a lifetime --- unless it is on paper signed and sealed -- I find it hard to believe you could get that payment. If it is real I wouldn't waste anytime getting to the dealer to sign on. Taxes in Illinois would be 2878 alone. There are bank fees and acquisition fees as well.
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