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BMW 5-Series Lease Questions

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    fruitguyfruitguy Member Posts: 2
    I have outfitted the car that I would like and it is around $58k. Before I go to the dealer and start to work out a lease, does anyone have a rough idea on what a 24 month and 36 month lease would be with 0 down, 15,000 miles per year.

    Thanks
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    venitvenit Member Posts: 2
    Fruitguy,

    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
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    bimmeresqbimmeresq Member Posts: 15
    Can anyone tell me what the current BMW Financial residual % and money factor is for a 2006 530i? Out of curiosity, can I expect to pay at invoice? Thanks in advance.
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    fruitguyfruitguy Member Posts: 2
    Venit,

    Thanks, this gets me started.
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, asteinberg. I believe that you should still be able to take advantage of BMW's multiple security deposit program with a money factor that you licked in last month.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, rob100. This is actually the 5-Series lease discussion, but since you buttered me up so much I'll let your 3-Series question slide :shades: . According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $36,115 and a selling price of $34,155 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $450.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello sdsualums. According to the latest information that I have seen, if you were to lease a 2006 BMW 525i through BMW Financial Services right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00160 and 63%, respectively. The numbers for an otherwise identical lease of an '06 530i should be .00140 and 62%.

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    ckm1515ckm1515 Member Posts: 52
    FYI - you can now build your 2007 5 series on the BMW USA site - believe the only material changes are the night assist option the comfort seats.
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    alboogie7alboogie7 Member Posts: 9
    I live in new york. Got a quote on a 2007 525xi MSRP of $49500, nav, cold weather package, xenon and automatic. Lease at 695. They are using an MF of .00245 and residual of 62%. This is really high. Can someone confirm..Many thx...
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    marleyflynnmarleyflynn Member Posts: 8
    Looking for residual and money factors for leasing an 07 530 xi. Based on my research, a residual of 62% (for 12k/ year/ 36 month lease) and money factor of approx .002 (although the 07 money factors are not available yet ?) Will i meet any success trying to negotiate the resid based on getting one of the first 07 models ? Also, would i expect to pay closer to MSRP if i have to order ?

    Thanks
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    yatzeyatze Member Posts: 33
    Hi car_man
    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
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    alboogie7alboogie7 Member Posts: 9
    Is this true. A salesguy told me that MSD is not available in New York? is this true?
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    lplantemolilplantemoli Member Posts: 6
    Could be. My salesman told me the same thing...
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    bdr127bdr127 Member Posts: 950
    I don't know, but I know that NY state has been wacky with leases in the past.... They just started allowing them at all this year. :confuse:
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    alboogie7alboogie7 Member Posts: 9
    Not sure if this a repost but good info:

    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
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    omeganetomeganet Member Posts: 4
    I've seen the messages with the current CPO deal and it seemed interesting enough so I went to bmwusa.com and did a search for some CPO 5 Series, but the deals I'm finding aren't good at all.

    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?
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    omeganetomeganet Member Posts: 4
    Never mind... I re-read all of the posts and didn't focus on the fact that this offer is only available for the 2003 models. I was looking for a 2004/2005
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    twoboxtwobox Member Posts: 3
    nervous about my first lease. 530xi wagon- cold weather, navigation, premium, automatic. negotiated invoice + $250.00 = $53,500 sale price ($4,500 under msrp) - total drive off is $5,000 (includes cap cost reduction $4,000, $0 security deposit, $625.00 bank fee + taxes...)
    .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.
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    marleyflynnmarleyflynn Member Posts: 8
    Are security deposits (one month lease payment) standard ? SHould i assume that i pay a security deposit to get the Base Money Factor or will should paying a security deposit reduce the Money Factor ? Also, what is the story behind bank fees ($825.00)

    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 ?
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    marleyflynnmarleyflynn Member Posts: 8
    In addition to my post above, I am a returning BMWFS customer (if that means anything). If i do not put the security deposit down, would i expect the Base Money Factor to escalate by .00015 as mentioned on other boards (from .00225 to .0024) ?

    Hoping to pull the trigger today..

    Thanks
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    nay330cinay330ci Member Posts: 2
    Hello all, I am new to the forums.

    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.

    :)
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    viper2viper2 Member Posts: 38
    Good morning,

    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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    kwwmankwwman Member Posts: 1
    Hi! I am also a freshmen to car leasing, i wonder where do u lease ur BMW 530xi wagon? Cause it is a pretty good deal! If itz the 2007 model!
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    lloyd5lloyd5 Member Posts: 12
    To those who are looking for a 530xi touring wagon. I picked up a 2006 530XiT on 3/25 at a dealer that had 6 on the lot. The car had a premium package, cold weather package, 6 speed automatic, and rear sun shades. The sticker was $56,620. I put $0 cap cost reduction, $1400 for start-ups and am a returning BMW FS customer so no security deposit. I got a 36 month lease 12K miles for $575 a month not including tax. The residual value is 62% with a money factor of .001 (2.4%).
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello alboogie7. This car's money factor and residual value vary depending upon how long you lease them for and how many miles per year you need to be allowed to drive. If you were to lease a 2007 BMW 525xi 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 .00225 and 62%, respectively. The money factor that you were quoted is a little higher than this. I am guessing that the reason for this is that you are having your car's security deposit waived. BMW FS will waive its security deposit requirement for lessees in exchange for an increase of .00015 in a vehicle's money factor. If you really want a 525xi, you would be better off leasing a leftover 2006 model right now. Not only is the '06 model's money factor lower and you will be able to negotiate a lower selling price on it, but its residual value is actually exactly the same as the 2007 model's.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings marleyflynn. According to the latest information that I have seen, if you were to lease a 2007 BMW 530xi 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 .00225 and 62%, respectively. As I just mentioned in m previous post, if you are interested in its specific model, you would be better off going with a 2006 model. Its residual value is exactly the same, but its money factor is lower at .00160 and you will be able to negotiate a lower selling price on it since it is a leftover model.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, Yatze. Congratulations on your new car. I'm glad that I was able to help you out. Thanks for taking the time to let us all know how everything turned out. Enjoy!

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi twobox. The selling price that you were quoted for this car looks very reasonable to me, but the money factor that you were quoted is too high. BMW Financial Services' current buy rate lease money factor for a 24 month lease of a 2006 BMW 530xi wagon is currently only .00100. It appears as though the dealer that you are working with is trying to mark up your car's buy rate money factor to add additional back-end profit to your deal. Make sure to insist that they use the buy rate to calculate your car's money factor.

    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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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi marleyflynn. Every manufacturers' captive finance company, with the exception of Chrysler Financial, charges a security deposit on leased vehicles unless it is running some sort of short-term special promotion that waives it. BMW Financial Services charges a security deposit that is equivalent to your vehicle's monthly payment rounded up to the nearest $50 increment. It will waive its security deposit requirement in exchange for a .00015 increase in your vehicle's money factor if you want. Consumers also have the option to pay additional security deposits on the vehicle that they are leasing. For every deposit above their first one, up to a maximum of eight total deposits, BMW FS will reduce vehicles' money factors by .00007. Making multiple security deposits is much better than making a down payment because you actually get your deposits back at lease-end. BMW FS charges a $625 acquisition fee on every vehicle that it leases. Dealers have the ability to mark this fee up a couple hundred dollars to add additional hidden profit to deals. It appears as though that is what is happening with the car that you are currently considering.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome nay330ci. According to the latest information that I have seen, if you were to lease a 2005 BMW 530i through BMW Financial Services right now for 35 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 59%, respectively. The numbers for an otherwise identical lease of a 2006 550i should be .00200 and 60%. I'm not sure where you got the .00225 money factor from. Perhaps you are looking at the money factor for a 2007 5-Series. It is difficult to say what BMW's April lease program will be like for this car, but if I had to make an educated guess, I'd say that it will probably be fairly similar to its current program.

    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.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on your new ride, lloyd5. Thanks for taking the time to share the details with everyone. Enjoy!

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    lloyd5lloyd5 Member Posts: 12
    Thanks Car man, it was the posts on this site that enabled me to go to the dealership and get the deal I was looking for in an hour on my 530XiT.
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    sdsualumssdsualums Member Posts: 11
    I am in the bay area too. The dealers here are ripoff artists. i was quoted a money factor of .0018 on a 530i and msrp. This put my payment for 10k 3 yrs at 809 a month, zero down. I went out of the area, they gave me .0014 (the buy rate they say that you cannot get) and took 1,445 off msrp, threw in all weather floor mats and my payment is 719. The dealer was thrilled to make the deal. My suggestion is to call around and do some driving, it will save you some money.
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    yaya1yaya1 Member Posts: 3
    would love some advice. we are about to lease a 530xi wagon but don't know if we are getting a decent deal. the car has premium package,sports package, 18"wheels, the msrp is around 56,000. they want 3800 drive off fees, $650/month payments (this includes california sales tax). and my 1994 subaru wagon (they are giving me around 1,000 credit). is this good? thanks in advance!
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    yaya1yaya1 Member Posts: 3
    what was your drive off fees? premium packages? base model wagon?
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    xspectgxspectg Member Posts: 1
    Car-man please help.

    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.
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    sdsualumssdsualums Member Posts: 11
    530i
    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. :)
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    talei123talei123 Member Posts: 4
    I WAS RECENTLY TRYING TO BUY A 2006 530I BMW W/ NAVIGATION AND LEATHER... MSRP CAME OUT TO ABOUT $52000.. THEY BROUGHT IT DOWN TO ABOUT 49000... FOR A LEASE THE WANTED $2000 DOWN WHICH INCLUDED THE DRIVE-OFF AND MONTHLY'S WERE ROUGHLY ABOUT $725.. I CAN DO ALOT BETTER COULDNT I, BUT THEY JUST WOULDNT BUDGE... WHAT DO YOU GUYS THINK.... PLEASE HELP ... THANKS...
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    alboogie7alboogie7 Member Posts: 9
    Anyone know what the April Lease rates are or will look like? thx...
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    bdr127bdr127 Member Posts: 950
    I don't know about the details on the lease, in particular.... but as far as the selling price of the car, it's very good. The dealer is making less than a thousand bucks at that price....
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    vsaxenavsaxena Member Posts: 211
    In general, it is always good not to put any money down to buy down the capitalized cost of the lease. Apart from losing the down payment if the car is totalled, you can typically earn better returns on your investment if you have a special Money Factor (like what BMWFS is offering on the 5 series).
    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.
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    omeganetomeganet Member Posts: 4
    Great post! Can you provide more detail, i.e. how much is each deposit, and I assume the total amount is then multiplied by seven to get the maximum discount? Do you get these deposits back at the end of your lease, or are they used to pay off the final payments of your lease?

    Could you put together an example scenerio, and is this figured in with the current inflation rate?
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, lloyd5. Enjoy your new car :shades: .

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi yaya1. 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 on 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
    Hello xspectg. You would be much better off using the proceeds from your trade to make multiple security deposits than as a down payment. 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 BMW would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all.

    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.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi alboogie7. I can give you an idea of what BMW's new April lease program is like. What car do you want, how long do you want to lease it for, and how many miles per year do you need to be able to drive it. Let me know and I will give you the details.

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    alboogie7alboogie7 Member Posts: 9
    Hi Carman,

    Im looking at either the 525xi or 530xi with 10k/per year on a 3 yr lease...thx for your help
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    bon_bonbon_bon Member Posts: 20
    First time BMW (potential) owner. Trying to lease a 06 525xi. Here are the specs:
    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
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    n1danieln1daniel Member Posts: 27
    Hi Carman,

    Could please provide the following info for April:

    2006 & 2007 BMW 530i & 525i for 36mon/15K miles

    Thanks
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    twoboxtwobox Member Posts: 3
    car man,

    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!
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