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BMW 5-Series Lease Questions
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Thanks
Go to the below link and plug in your numbers. Someone correct me if I'm wrong but the Lease Residual Value
is based on the MSRP, not what you are paying. I'm guessing that your LRV for a 15k lease is 60%. Play with the money factor number to see the differences - I would think a .00200 would be a pretty good MF#. Hope this helps a bit while you wait for the expert to answer.
http://www.edmunds.com/apps/calc/CalculatorController
Thanks, this gets me started.
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Thanks
Well, I am the new lessee of a 06 530xi. Thanks for the info re the multiple security deposits. Salesman said his boss had to call BMW to "verify"--he didn't know about this.
Here's the numbers.
MSRP $59,465.00
Sales Price $55,735
7 security deposits @$700.00 = $4900
additional at signing $1066 includes first month payment, title fees, doc fees etc.
MF - .00051
monthly payment - $659.60 for 36 months/15k per year.
Couldn't have done this without your input. Hope I got a fair deal.
Thanks for your help.
Regards,Yatze
BMW Captive Lease Rates and Residuals – Effective 3/16/2006
These lease rates are for reference only and may vary by region. The dealer does not have to offer you these rates. It’s always best to compare other lease programs through other sources such as LeaseCompare.com.
Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms
2007 BMW 5 Series 525i
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 44% of MSRP – .00300 Base Money Factor Rate
60 mo/15k mi – Residual Value 35% of MSRP – .00300 Base Money Factor Rate
2007 BMW 5 Series 525xi
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 43% of MSRP – .00300 Base Money Factor Rate
60 mo/15k mi – Residual Value 34% of MSRP – .00300 Base Money Factor Rate
2007 BMW 5 Series 530i
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 43% of MSRP – .00300 Base Money Factor Rate
60 mo/15k mi – Residual Value 34% of MSRP – .00300 Base Money Factor Rate
2007 BMW 5 Series 530xi
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 43% of MSRP – .00300 Base Money Factor Rate
60 mo/15k mi – Residual Value 34% of MSRP – .00300 Base Money Factor Rate
2007 BMW 5 Series 530xiT
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 40% of MSRP – .00300 Base Money Factor Rate
60 mo/15k mi – Residual Value 31% of MSRP – .00300 Base Money Factor Rate
2007 BMW 5 Series 550i
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 42% of MSRP – .00300 Base Money Factor Rate
60 mo/15k mi – Residual Value 33% of MSRP – .00300 Base Money Factor Rate
You can use the following formula to calculate a lease payment:
(Capitalized Cost – Residual Value) / Term = Monthly Depreciation
(Capitalized Cost + Residual Value) X Money Factor = Monthly Interest
Monthly Depreciation + Monthly Interest = Base Monthly Payment
Consider the following example: 2004 545i w/15k miles @ $49,990
According to Edmunds TMV this seems like a fair price for a CPO vehicle. When I click on Financing options and put in $0 down, lease 36month / 15k miles it gives a price of $1158.
Another example 2004 530i is pricing at $1021 per month.
They must be using some really low residuals or very high interest rates (or both!). How did the people here buying used vehicles calculate the acceptable residual / money factor?
.00150 money factor, 24 month lease/15k miles = $476/mo. + tax. is the drive off too high? is this a good deal?
still trying to decide... any advice would be greatly appreciated... does anyone know if this is a fair price.
thanks in advance.
My dealer is quoting me a money factor on an 07 530XI for a 36 mo/ 12K per year lease as .0025 (which is above the Base factors above) assuming i put down a 850 security deposit.
My response is going to be:
Invoice plus $2,000 for selling price
No security deposit
62% Residual (3 year/12k milage)
.00225 money factor..
Is this reasonable ?
Hoping to pull the trigger today..
Thanks
I posted a similar post in the other thread about the 5 series buying experience before I stumbled upon this thread, so please excuse my repetition.
I'm considering my first lease, either a new 530i or 550i for 36months/15k miles, and would like some info. I've read up on some lease-basics at LeaseGuide.com (great site). Are the numbers posted above (MF and residual) the ones I should expect when I contact my dealer? Why has the MF gone up from 0.0014 to 0.00225 in just one month? Will they possibly go down next month i.e. should I wait?
What exactly is the multiple security deposit deal?
Are there any advantages with leasing through BMWFS given that other leasing institutions provide the same numbers?
Could you payment-calculation gurus give these a swing?:
The MSRP for the 530i I optioned out through Edmunds is $53,655 and the invoice pice is $49,120. I have bought 2 cars before from my local dealer, both at near-invoice price, so I am confident that I can get $49,500 or $50,000 as the negotiated price.
The 550i I optioned out-
MSRP: $65,580
Invoice: $60,015
Expected negotiated price: $60,500 or $61,000
This for 36 months/15k miles. I don't want to pay a down payment, but am open to/interested in the multiple security deposit option.
Thanks for any help, and I apologize for the lengthy post.
Thanks to everyone for pointing out the 2003 530i special offer on BMW's website. A quick check on Autotrader shows a majority of them offered at around $30 (this is with about 36-40k miles).
Does anyone have information on CPO money factors and residuals? I'd like to consider leasing one for 3 years and 36,000 miles.
Thanks,
Peter
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Also, you really should not put so much money down when leasing. 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 5-Series would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all.
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BMW's multiple security deposit program works like this. For every additional security deposit after your required first one that you make, BMW FS will reduce your vehicle's money factor by .00007. A maximum of seven additional deposits can be made. This program was actually recently enhanced from a .00005 reduction and a maximum of five additional deposits.
Let's work up a lease payment on the car that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2006 BMW 530i with an MSRP of $53,655 and a selling price of $50,000 through BMW FS right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $624. The payment for an otherwise identical lease of an '06 550i with an MSRP of $65,580 and a selling price of $61,000 would be around $803.
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2007 525i with the following options
options
Premium Package
Navigation System
Automatic Transmission
Sirius Satellite Radio
Comfort Front Seat
Cold Weather Package
MSRP - $51,815
Invoice - $47,535
Selling Price - $49080
The money factor is .00225
Milage is 15,000 / year
term is 36 months
My trade in is $4000, which I'm comfortable with.
Should I use my trade for a downpayment or multiple deposits.
Premium
Nav
Heated Seats
Park Distance
Drive off was around 1900 incl. sec. deposit of 750, 625 aquistion, don't pay 825,"> 0 cap. reduction. Love the car.
For many people putting multiple security deposits is a great deal. You can buy down the MF to up to 0.0049 by putting seven deposits and that is equivalent to a reduction in the interest rate of almost 1.2%. On most deals this translates to an ROI of greater than 10%. And this is in post-tax money.
Could you put together an example scenerio, and is this figured in with the current inflation rate?
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I estimate that you could use your $4,000 to make your car's first security deposit plus 5 additional. Since BMW reduces vehicles' monty factors by .00007 for each additional deposit, 5 additional would drop this car's money factor to around .00190.
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Im looking at either the 525xi or 530xi with 10k/per year on a 3 yr lease...thx for your help
Black on Black
Premium
Nav
Cold weather package
Automatic
MSRP : 51220
DP : 47500
With the new April lease rates : 0.0016 for 36 months/10k
The final price is 560/month plus tax.
0 down
Thanks
Could please provide the following info for April:
2006 & 2007 BMW 530i & 525i for 36mon/15K miles
Thanks
thanks for all of your guidance. i'm still trying to figure out my 530xi wagon lease. do you know the mf rates for '06 vs. '07? (i'm considering an '07 european delivery) 15k/year 36 month lease. is that .001 mf for march still available on the 2006 models?
thanks in advance!