BMW 5-Series Lease Questions

CarMan@Edmunds · May 2006

Hi bmw5seriessf. If by 2.6000 you mean that your car's money factor is .00260, it is way too high. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2006 530xi is only .00175. Make sure that this is the factor that is being used to calculate your car's lease payment. In fact, if you were to make additional security deposits, your car's money factor would be even lower than .00175. BMW Financial Services lowers lessees' money factors by .00007 for every additional security deposit that they make after the first.

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CarMan@Edmunds · May 2006

Hello fishbone1. If you were to lease a 2006 BMW 525i through BMW Financial Services right now for 36 months with 15,000 miles per year, its current buy rate lease money factor and residual value should be .00175 and 59%, respectively. The numbers for an otherwise identical lease of an '06 530i should be .00175 and 59%. For the '07 525i they are .00225 and 60%. For the '07 530i they are .00225 and 60%. Lastly, for the '06 330i the numbers are .00225 and 62%.

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CarMan@Edmunds · May 2006

Welcome mark1234. You can find out what the buy rate lease money factor aka the base money factor for the model that you are interested in is by asking in this discussion. Either myself, or a knowledgeable community member should be able to help you out. BMW Financial Services' current buy rate lease money factor for the 2006 530xi is .00175, while its factor for the '07 530xi is .00225. There absolutely is a supply and demand factor baked into vehicles' money factors. BMW artificially lowers the money factors of vehicles that it needs to stimulate demand for. That is why the factors for '06 5-Series models are lower than the factors for '07 5-Series models. BMW is trying to help dealers unload their remaining 2006 models. BMW's current lease program is scheduled to run through June 30th. It will publish a brans new lease program for the month of July which may not be the same as its current one. The only factors that are negotiable when leasing are your vehicle's selling price and its money factor (you never can go below the base money factor though).

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CarMan@Edmunds · May 2006

Hi lopz. This car's lease program varies depending upon if you want a 2006 or a 2007 model. If you were to lease an '07 BMW 550i through BMW FS right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 70%. The numbers for a 36 month lease of this car should be .00225 and 59%. If you were to lease an '06 550i through BMW FS right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 68%. The numbers for an otherwise identical 36 month lease of this car should be .00200 and 58%.

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lk2431 · May 2006

i was quoted a mf of .00230 and residual of 61% on a 2006 525 and/or 530 for 36 months and 12k miles
can you tell me the mf and residual for this lease
also are security deposits refundable
thanks

ncbimmer1 · May 2006

I was given a deal for a 07' 530i with
cold weather
premium package
sports package
automatic
comfort
nav
Satellite
Black Sapphire
36 months/15k
$54420 which is 1000 over invoice
MF- .0025
No down
800 deposit + tax and tags

Lease price 770.33+23.11tax= 793.44 monthly lease

Should I do my lease today and order?

golah · May 2006

Can you tell me which makes better sense buying or leasing a Bmw 530I.

The details are msrp - 55,870 - selling or lease price 53,600
Moneyfactor .0024 (monthly payments $738+tax $61)
drive off 2160 = 800 first month pmt license of 418 and various fees 942 (aka skim)
3 years 12K miles

vs

Buy:
Same price as above
down pay of 30,000 and 4 year finance at 5.49 % of 28,000 resulting in monthly pmts of 651 (interest paid 3,251)
Plan on keeping car 5 years

kyfdx · May 2006

If you plan on keeping the car for five years, you should definitely buy it..

vsaxena · May 2006

In general it is not good to keep a BMW for five years. Either keep it while it is under warranty (3-4 years) and free maintenance. Or keep it for a long time (> 6 years). In years 3-6 you typically will have to spend on regular and preventive maintenance and possibly some repairs.

At the end of three years the car is still worth 55-60% of its MSRP so the depreciation in the next few years is not insignificant. The savings in the depreciation costs can often be overwhelmed by the extra repair/maintenance expense.

monacobmw · May 2006

Hi, I ordered a 2007 BMW 530i on April 08, 2006, and it arrives next week. I did a 36 month/12k lease. The dealer told me (which I have accepted as true) that the money factor has gone up in May compared to April. The dealer assured me however that my money factor from April is locked in.
I reviewed the prior posts, and I found some inconsistencies that I wanted to clear up.
First, was the money factor .00225 at this time (April 8, 2006)?
Second, was the residual "60%" on a 12k lease.
Finally, I saw some discussion about the $825 vs. $625 lease acquisition fee. I was charged $825, but I want to fight the issue when I go in next week to pick up the car if the extra $200 charge is an add-on. Does anyone know what I can use as "authority" to show that the fee is really $625. Wouldn't the discretion to vary the fee violate some kind of fair lending act law (like on mortgages)?
Thanks to everyone here for the information on the security deposits... this information is incredibly valuable to the public (my dealer still does not understand the concept).
-Richard

ncbimmer1 · May 2006

The acquisition fee should be $625. Just tell the dealer that you will only be willing to pay the $625. He will probably adjust the amount for you.

monacobmw · May 2006

What confused me on the lease residual was a post from "Car Man" a few back that stated...
"Hello junap1. 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 60%, respectively."
I also saw other posts from others that stated that the residual for 15k miles was 60%.
For April 2006, was the residual on "12k miles" for the 530i 60% or, say, 62%? I guess I do not need to worry about this one because the dealer needs to follow the "books," but it would be good to know.
Thanks "NCBimmer" for the message. I just want a document (or something similar) to show to the dealer to verify the $625 acq. fee so they do not give me the runaround and claim that the fee is different for different situations. Don't forget that any dealership is full of salesman that make a living trying to squeeze every penny out of customers. Thanks all.

kyfdx · May 2006

The 530xi and the 530i most likely have different residuals...

The last numbers that I've seen... The '07 530i had the exact same lease numbers for April and May..

eddie33081 · May 2006

Hello Everyone,

I just came back from the BMW in Buena Park, CA.

I wanted to lease a 2006 530i but it seems most dealerships are out of stock. I looked at the 2007 530i's. I want one with the sport and premium package with 15k mi/yr and 36month term.

The best they offered for a 2007 530i w prem and sport msrp stickered at 54,356 was :
1. $2000 Drive off, 15k mi, at 865/mo after tax.
2. $2800 Drive off, 12k mi, at 799/mo after tax.

I live in los angeles so tax is %8.25. I wanted to get it at around 760 after tax but they would not budge at all unless i gave them a fat down payment. Eventually they let me walk. i am going to look around but was the deal above worth it? Where can I find a better deal at in southern cal.

I mentioned the money factor but the numbers he gave me were after he had talked behind the counter and said he didnt know what number they were using. He said they were getting them direct from bmw financial. Also the residual was 60% which seems normal from what i've read.

Any help would be deeply appreciated.

Thanks

frank

robray222000 · May 2006

I'm in the market to lease a 2007 525i or 530i. My lease specs are 36 months at 15K. I'm getting conflicting info from several BMW dealer's internet depts. regarding the money factor and residual for these cars at the aforementioned lease term. Can any of you supply any pertinent info. It would be greatly appreciated. Also should I expect to be able to lease these cars at 1% over invoice?

CarMan@Edmunds · May 2006

Hi lk2431. It looks to me as though the money factors that you were quoted are being marked up. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month, 12,000 mile per year lease of a 2006 525i are .00175 and 61%, respectively. The numbers for an otherwise identical lease of a 2006 530i are exactly the same. Make sure to insist that the dealer you are working with use the buy rate money factor to calculate your car's lease payment.

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CarMan@Edmunds · May 2006

Hello ncbimmer1. The selling price that you were quoted for this car, $1,000 over dealer invoice, is very reasonable. The money factor is a little high though. BMW Financial Services' buy rate lease money factor for 2007 5-Series models is currently .00225. Make sure to insist that the dealer you are working with uses the buy rate money factor to calculate your car's lease payment.

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CarMan@Edmunds · May 2006

Hi monacobmw. It is completely legal for dealers to mark vehicles' lease acquisition fees up. This sort of thing happens all the time, especially with BMW dealers. You don't have to prove to the dealer that BMW FS' base acquisition fee is $625. They know that it is and that they are marking it up. If the total price that you are paying for your BMW, including the $200 acquisition fee mark-up, is less than or equal to what you would have to pay elsewhere don't worry about the mark-up too much. It goes without saying though that you should try to get the dealer that you are working with to charge you the base fee if you can.

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ghstudio · May 2006

Don't forget when negotiating a lease to ask if they will reduce the money factor if you give(loan) them additional security deposits. Just to be clear, an additional security deposit is NOT an additional up front payment...at the end of your lease you get the additional security deposits back. Don't let the dealer tell you they are the same....additional security deposits are a much better way to get your payments down, if you can afford them. Our Infinity dealer told us that they do accept additional deposits, but they aren't worth anything because they don't lower the MF by much at all. After figuring it out, rather than guessing, we discovered that I effectively make 10% on that extra $5K that I'm going to leave with Infinity due to reduced payments.

On our current BMW 530 lease, we did about $5K in additional security deposits and lowered our payments significantly. We'll get that $5K back next month when the lease expires.

CarMan@Edmunds · May 2006

I can help you out, robray222000. According to the latest information that I have seen, if you were to lease a 2007 BMW 525i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 60%, respectively. The numbers for the '07 530i should be exactly the same. The aforementioned money factor assumes that you pay a security deposit at lease signing. BMW Financial Services will waive its security deposit requirement in exchange for an increase of .00015 in the money factor that is used to calculate your car's payment. I highly doubt that you will be able to lease an '07 5-Series for 1% over invoice.

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eddie33081 · May 2006

Hey carman,

My message was on page 32. Any suggestions? how much over invoice on a 2007 bmw can we expect to move down to?

Thanks

Frank

jtimages · May 2006

Hope you got the car.You got a much better deal than i was quoted. Let me know if there are any left at this price.

eddie33081 · May 2006

Ok.

I just got a decent deal I think.

Here what it is:

2007 Bmw 530i
Sports Package
Premium Package
Automatic Trans

MSRP 54,070

I got them down to 51,300

2800 Total Drive off
36 Months
15,000 Mi/yr

710/mo + tax (ca 8.25) = 769.00/month tax included

What you guys think. This is after 3 dealerships and reading up on the boards. Seems decent.

Frank

ncbimmer1 · May 2006

Yep! I took the deal and my car is being shipped. The dealership is Valley AutoMall in Fayettville, North Carolina. :shades:

jtimages · May 2006

Is this a good deal?
2007 530i
Premium Package
MSRP 51,270
Down to 49,6604
2300 drive off
36 mo. 15,000 Miles
699 mo. + tax

lopz · May 2006

Thank you, Car_man. I have decided for a Z4 instead and would appreciate if you answered my question posted 5/18 at that forum.

drewb1 · May 2006

I am looking to lease a 2007 BMW 530xi with the following equipment:
Premium Package
Navigation System
6-Speed STEPTRONIC Automatic Transmission
Multi Contour Seats
Power Rear Sunshade and Manual Rear Side Window Shades
Heated Front Seats
Fold Down Rear Seats w/Ski Bag
Rear Door Mounted Side Airbags

Other than I know that I need 15,000 miles per year, I'm not sure what you suggest a good deal on this car is. The dealer, of course, is starting with the MSRP of $58,405.

Your help is greatly appreciated.

ncbimmer1 · May 2006

What is the break down of the 2300? Is it tax, tags, and security deposit or downpayment?

jtimages · May 2006

It is $800 security,1st pymnt,$741 1st pymt. ,dealer fee ,and tag.

monacobmw · May 2006

My dealer is quite confused with the security deposit issue. Can anyone help?
New 2007 530i--I understand that a customer can make a maximum of 7 payments to reduce the factor by .00007 each.
What about the first security deposit payment that is needed for a new BMW customer to reduce the rate from .00240 to .00225?
Does that mean that the customer can use only 6 more payments to reduce the money factor by .00042?
My dealer is stating that I can only use 4 more payments at .00005 reduction each or .00020 (total).
This does not make sense... One payment reduces the money factor by .00015, and then the next four only reduce the money factor by .00020 more?
I called BMW Financing, but they will not talk directly to a customer. My dealer is doing this during the weekend, but does someone have the right information for the security deposit program?
What should be the "final" money factor if I am a brand new BMW customer and I want to "max out" the payments?
Best regards,

kyfdx · May 2006

Your dealer is out of touch with the MSD program...

The first security deposit keeps you from paying the additional .00015 waiver bump...

Then, you can make 7 additional deposits that each reduce the MF by .00007, for a total reduction of .00049..

The .00005 reduction, with 5 additional deposits... that was the old plan..

regards,
kyfdx
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monacobmw · May 2006

Thanks Kyfdx...
One more question. I understand that the security deposits are rounded to the nearest highest $50. Thus, I wanted to put money down to get my payment to $698 from $740. Thus, the security deposit would be $700 rather than $750 ($400 less for 8 payments).
The dealer is telling me that the security deposit is calculated using the numbers with the original money factor rather than the discounted money factor. Kind of a "chicken and the egg" issue. The security deposits get the rate down, but a security deposit is supposed to reflect an amount equal to the final payment (with the discounted money factor). The only issue is how much I have to put down to buy the money factor down to the lowest $50 increment. Not a biggie, but I hate it when the dealer does not understand the issue and has no means to figure it out.
Any thoughts?
Best regards,

kyfdx · May 2006

I think your dealer is wrong again.. The fact that he didn't know about the new program (and, had the old program wrong), tells me that he really isn't familiar with it...

They should use the new lower money factor, assuming 8 deposits (the normal deposit, plus 7 additional deposits). Then, adjust the cap cost reduction to put you just under the next lower $50 increment (don't forget about tax!), then compute the money due at signing (Cap reduction, 1st pymt, title/license fees, 8 security deposits, etc.).

It is important to get them to do it right... With BMWFS allowing dealers to mark up the MF by .0004, they will accept any number that doesn't exceed that.. Normally, the leasing company will reject anything that isn't correct (like an incorrect residual percentage), but in this case, it could just end up as extra profit for your dealer.

It seems like you have a good handle on it.. now, you just have to educate your dealer..

regards,
kyfdx
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ncbimmer1 · May 2006

You did great on this one :shades:

monacobmw · May 2006

This is good information, and a great service to everyone on this site. Thanks again. I prepared a spreadsheet to show the dealer, and I went to a "lease calcution" website to compute the final numbers (and what my down payment needs to be to get to the lower $50 increment). At this point, I think that I should take the numbers to the lease manager and inform him that his "rating" on my after- sales survey will be based on his ability to do his job correctly from this point on.
Best regards,
Richard

eddie33081 · May 2006

I think everyone should be able to get it for around the same price as jtimages and myself. I received 710/mo + tax

With 2800 drive off with premium, sport, and automatic on a 07 530i.

Frank

cez · May 2006

hi,

i am trying to lease a 525i in S. cal. dealer quoted me with 1200 drive off fees, 745$/mo 36 mo, for 12K. Man...I loved the car but it seems to much for a basic 525i without premium, just automatic T 45,457 MSRP. what do you guys think??
Chris

eddie33081 · May 2006

Hello.

Does the 745/mo include tax? That makes a difference as the amount I showed you (769/mo) included our high CA tax.

Frank

delbmw · May 2006

Looked at leasing a 2007 525xi recently. Rate quoted was 6.12% and was said to include security deposit. Couple of questions:

1/ Seems a bit high from 5.4% for deposit of $650?
2/ Can the Bank fee be included in the MF?
3/ Any thoughts regarding June and July MFs from BMWFS?

cez · May 2006

yes it includes the tax. Chris what do u think?

bimmerfan_sf · May 2006

Finally made up my mind to pull the trigger today. Called a couple dealers and the best quote I got is:

2007 525i
Steptronic
Premium Package
Premium Sound Package
Bi-Xenon Lights
Navigation System

MSRP: $51,870
Invoice: $48,335

36 Months lease
12K miles / year
$3,000 drive off
$621 including tax is the best offer I've received so far. Should I take it?

If I calculate it with:
62% Residual
0.00225 Money Factor
8.5% Tax
I was hoping to get the negotiate price to $47,642 ($693 below invoice) and monthly payment to $580. Is this too much to ask?

Currently, I'm also leasing a 2006 Mercedes E350 (MSRP: $59,500). My monthly payment is $700 including tax. I got the car at the end of April in 2005, paid $3200 drive off. Since the 525i is almost $8000 cheaper than the Mercedes, I don't think I should pay over $600 per month. But this is my first bimmer, so I don't know...Thanks in advance for any help/inputs!

ktx968 · May 2006

Does anyone know the lowest possible Money Factor and acquisition fee, through BMWFS for a 2007 550i?? I am about to close a deal on a 36 month lease, based on a MF of .00255 & $825 Acq. fee and I'd like to know if I'm getting a good deal. I would really appreciate it if anyone could let me know.

Thanks for your help,
ktx968
:confuse:

socalguy61 · May 2006

Why would they sell you the car below invoice??

It's hard to compare your Benz lease with the Bimmer, since we don't know the term, money factor, residual, etc, on the Benz. It sounds to me that you're being offered a very fair deal on the Bimmer.

cez · May 2006

hey bimmerfan
well, your deal is better than the one i got. 525i 4200 D/O basic 525i no upgrades, 36 mo 12 k 650/mo. i didnt do it.
the deal sounds good. but maybe you can press them for the same deal on the 530i??
my thing is never put any money down for a lease. keep in the bank, make a little higher payment. why give it to them just doesnt make sense.

Chris

bimmerfan_sf · May 2006

Chris,

Many thanks for the advise. How much do you think I should put down?

bimmerfan_sf · May 2006

Does anyone know the current residual value for 2007 525i (36-month, 10K miles/year)? Thanks in advance!

bimmerfan_sf · June 2006

Just picked up the car. I decided to go with the 530i last minute. Here's what I got and what I paid. I think I got ripped $1000-1500, oh well, I'm just tired and don't want to spend any more time on this, plus the saleman is pretty nice. Hope this information can serve other ppl as the up-limit benchmark

2007 530i (Silver Gray, Beige Leather)
Steptronic
Premium Package
Sports Package
Park Distance Control
Navigation

MSRP: $56,570
Invoice: $52,250
In Short, I paid $3,188 Drive-off and monthly payment is $758.88 (including tax)

Here are the details:
Final Negotiated Price: $53,780 (which is $1,531 above invoice, this also includes the $825 acquistion fee)
36 Month Lease / 12k Miles per year
Cap Cost Reduction: $1,830
Tax on Cap Cost Reduction: $156
1st Month Pmt: $759
License Fee: $407
Others: $37
Drive-off: $3,188
Cap-Cost: $51,951
Lease Term: 36
Residual: 61.0%
Money Factor: 0.002476136 (based on my calculation)
Tax Rate: 8.5%
Monthly Payment: $758.88

Best luck shopping everyone!

hkhawaja · June 2006

Does a leased vehicle have to be returned to the same dealership? What if the car is moved to another state?

CarMan@Edmunds · June 2006

Hi ktx968. I know BMW's current lease program for a regular delivery of this car. If you were to take normal delivery of a 2007 BMW 550i, BMW Financial Services' current buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of it should be .00225 and 59%, respectively. Its base lease acquisition fee is only $625, so it appears as though the dealer that you are working with is attempting to mark your car's fee up by $200. BMW may charge a higher factor for vehicles that are delivered through its European Delivery program. Unfortunately, I do not know exactly how much higher the money factor would be.

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CarMan@Edmunds · June 2006

Greetings bimmerfan_sf. If you were to lease a 2007 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 .00225 and 63%, respectively.

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