BMW 5-Series Lease Questions

carnutfan · October 2006

dhanley and car guy, on an '07 530 I'm being told the money factor here in CA is .00140. This is with a $800 security deposit.

Also, with a price/cap cost of 53,640 and 2626.85 drive off, the payment is 743.66 for a 36 mo./15yr lease.

This seems higher than the numbers I'm seeing on this site.

dhanley · October 2006

The lease program does not vary state to state. They are allowed to mark up the money facor by .0004 for dealer profit, which is what they are doing.

I really don't like when they fib.

That being said, if your deal is very very good otherwise, it's ok. They have to make a few bucks somewhere. But i suspect the deal is _not_ terribly good...

n1daniel · October 2006

I owned a Lexus and an Infiniti before my current 06 530i.
Payments are obviously important but consider this. I got my car in Santa Barbara because at the time there was no car with the options that I wanted in Southern Cal. I live in OC and I had a problem just a month after getting my car. I had to spend hours sending e-mail, calling different dealers and complaining to BMW corporate to get, not a loaner, just a rental car. The problem is that BMW dealers will not give you a rental nor a loaner if you have not purchased from that dealership. If BMWs' were reliable I would not worry too much but guess what, these are my NEW problems:

1. Received a recall letter for suspension
2. Breaks squeaking at just 8K miles
3. Transmission issue.

I called 6 different dealers within 50 miles from my house and the first thing they ask is "did you get the car from us?" But they will gladly give me a ride to my home or office. Well I have to drive around, my job is not to stay in the office from 9-5 and plus when I am going to get my car back, there are no assurances.
Being a luxury car maker I thought they would have similar services like Lexus or Infiniti where no matter which dealer you go, they will offer you either a loaner, or a rental. WRONG! BMW wants me to pay for a rental car while they fix my BMW that is under warranty.
I got a BMW already expecting the car to go wrong sometime but not this many things in 6 months (isolated incident?)and if I would have known that I had to pay for my rental car every time my car breaks down..NO WAY I would have got a BMW!

carnutfan · October 2006

So what money factor do you think I should get on a 36 month lease/15K a year and what is a reasonable cap cost for a car with an MSRP of 56,950?

lklein1 · October 2006

Hello, I read thru the forums and went today to negotiate on a 530i lease. 36 months/10,000 miles. The msrp is $52,020, sales guy did not move off of this. Used a money factor of .0014 and 63% residual. I told him about the .0010 and he said he wasn't seeing that # and it didn't matter if I ordered or bought from the lot that # was the same. He gave me a monthly of $740 including tax (6%) w/ 1st and security up front. I am new to leasing and don't seem to be getting a good deal. Can someone let me know where they think i should go from here. Also, the trade in on my Range Rover was very, very low, which is to be expected, but I didn't expect to get screwed on both ends.

Thanks in advance
Lisa

dhanley · October 2006

He's lying about the money factor, and there's no way you should be paying sticker.

It's just like anything else. You have to let them know you aren't married to the car and want a good deal. You can call other BMW dealers in the area and let them know you are price shopping. You can tell your salesman that you are considering an acura/mercedes/lexis/audi/infiniti.

I've always just gone to the dealer and said, "Ok, i'll pay this (fair price) or i'll go to your competitor." You have to be willing to walk out. I've always gotten my price in the end.

The person with the checkbook has all the power.

Plus, the end of the month draws close...

dave

lklein1 · October 2006

Thanks for your reply. Unfortuneatly they are the only BMW dealership in my whole state, but I did email dealers in Chicagoland but haven't heard back yet. They know there is no competition. I don't like being lied to.

dhanley · October 2006

E-mail me if you want some feedback for the chicago area dealers. That's where i live.

I *hate* being lied to, i'd probably pay more to someone else who was honest...

Were are you with only one dealer?

lklein1 · October 2006

I am Indianapolis and I just realized there are 2 other dealers in the state (one in Lafayette and one in Fort Wayne -- they didn't pop up on my first search since I had the miles away to short), but I probably will try to buy in Chicago. I've received one offer so far from Chicago. First pass was 4% off MSRP and .0012 MF so we are getting closer, but certainly not a deal with that. Also they gave me an acqusition fee of $825, so that is a no go.

kyfdx · October 2006

Cincinnati and Louisville are closer than Chicago... Dayton, as well...

A lot of choices..

tayl0rd · October 2006

Leasing out of state is probably my only course of action. The only problem is, as someone above said, if I don't buy the car from them, I get no loaners. If they won't even give me a loaner for not buying from them, I can only imagine the horrible service I will receive from them. I suspect they'd try to rabbit-ear my pockets every time I went in. Good thing about that free maintenance, huh? Maybe they'd make me pay for the snacks in the waiting room. :sick:

lklein1 · October 2006

Thanks for all the feedback everyone. I have verbally accepted an offer from my local dealer after dealing w/ other dealers in Chicago and Kentucky. Most importantly the local dealer matched the verbal trade I was given in Kentucky for my Range Rover. I'll post transaction details for others once I take delivery and know I'm not being jacked around.

dhanley · October 2006

I imagine that if you show them the lease offer from another distant dealer, they will be more prone to play ball. And, as i said, you can always pull the "what shouldn't i just get a lexus?" line as well."

Just use some of the good quotes that have already been posted on this list...

Whenever i've been car shopping being noncomittal and clearly shopping around has always worked for me.

Even talking to another salesman or the sales manager could help.

tayl0rd · October 2006

How reliable are those money factor numbers you got from Bimmerfest? Did it come from BMW? Is it actually for the month of Oct. 2006? I'm just flabbergasted that my dealer is marking up the MF so much. I mean, over the course of the lease, it would be upwards of $3,000! :mad:

dhanley · October 2006

They are reliable and for october--many people on the forums have gotten great leases by just using the numbers.

carnutfan · October 2006

I went back to another dealer and got the .00100 rate, with a monthly lease payment of 691 on a 15k/year, 36 month lease with 2625 drive off.

dhanley was right. The dealer's buy rate is the above and just a little pressure was all it took, so my payment went down over 50 dollars a month.

wth3 · October 2006

I just received two quotes on a 530i today from a request from the internet. The dealers are both located in suburbs of Chicago. I have not been into the showroom to look at the cars yet I just researched them on the internet. So if anyone knows if these quotes are a good deal please let me know. I am waiting for two more quotes tomorrow and hope to complete the deal over the weekend.

Westmont, IL

530i with premium & cold weather package.

$50,020 vehicle price
$625 acq. fee
$57.33 doc fee
$3,755.80 7.75% full tax is paid in Illinois
= $54,458 net adjusted cap cost
$31,212 is the residual 60%
.0014 is the money factor
36 months
15,000 miles
$765.66 is the monthly payment

Down Payment includes
80.00 Plates
25.00 Electronic plate transfer
800.00 security deposit
765.66 1st payment
= $1,670.66 down payment

One thing I am not sure of is the taxes are rolled in up top. If you calculate them last you save around $5.00 per month. I do not know what is standard.

Orland Park

530i with premium & cold weather package.

$50,020 vehicle price
$825 acq. fee
$57.33 doc fee
= $50,902 net adjusted cap cost
$31,212 is the residual 60%
.0014 is the money factor
36 months
15,000 miles
$771.50 is the monthly payment

Down Payment includes
80.00 Plates
350.00 Disposition fee
800.00 security deposit
$771.50 1st payment
= $2,001.50 down payment

Hope this helps, if anyone has any comments they would help.

dhanley · October 2006

Both are bad deals.

1) Paying sticker

2) They marked up the money factor.

3) Disposition fee is at the end of the lease, and it is often waived, if you buy/lease another BMW. Do _not_ pay it up front.

So:

1) Make them lower the factor to .0010

2) Haggle to between invoice & sticker

3) Make six extra secutity deposits. This will lower your MF to .00058, and you get them back at the end of the lase. Good investment.

Based on that, i get $651/mo if you roll illinois tax into the cap cost.

You might want to buy down the cap cost by a few dollars to get your payment under 650 so your security deposits will be $650 instead of $700.

Really, you guys are making me jealous, i'm wondering if i should stand by my decision to get a 335i coupe.

armitagemike · October 2006

Car Man:

Does BMW have a 39 month 36,000 mile option (with money factor and residual) or a 48 month 48,000 mile option (with money factor and residual) that I can evaluate? Monthly payments too high on 36 month leases.

Also, any update on the November numbers (money factors and residuals) for all 5 series cars for 36 month 12,000 miles, and longer lease term leases! Thanks!. Getting numbers from Dealers is like pulling teeth - on an elephant!

Thanks

Armitage Mike

CarMan@Edmunds · October 2006

That is a very good question, shap1. Normally I do not advocate terminating existing leases early to get a new vehicle. However, BMW has a very attractive lease program on the 2006 X5 right now. It is difficult to say how long BMW will continue to offer lease support on this truck. It's current lease program is scheduled to run through October 31st. I would not be surprised if BMW continued to offer an attractive lease program on the '06 X6 in November and December. Your best option would be to lease a leftover 2006 X5 at an attractive rate in December, but there is no guarantee that this lease program will be available then. I can guarantee that the 2007 X5 will be a lot more expensive to lease when it finally arrives at dealers than the 2006 X5 is now.

Given the attractive money factors that BMW is providing on the 2006 X5 right now, there's nothing wrong with rolling your current truck's existing payments into the cap cost of your new lease, other than the fact that you are wasting the last two months of your current lease.

Car_man
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CarMan@Edmunds · October 2006

You're very welcome, strataprop.

Car_man
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CarMan@Edmunds · October 2006

Hi bbmertz. You should be able to use seven multiple security deposits to lower the 530i's money factor if you want to. Dealers do not have the authority to waive BMW FS' $625 acquisition fee, but they are allowed to mark it up to add hidden profit to deals, so make sure that you don't pay more than that. I don't believe that dealers can waive the disposition fee either.

Car_man
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CarMan@Edmunds · October 2006

I am 100% positive that the money factor that I quoted you is correct, tayl0rd. What rate did the dealer you are working with quote you? Chances are that they are lying to you about this car's base money factor so that they can mark its money factor up to add additional hidden back-end profit to your deal.

Car_man
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CarMan@Edmunds · October 2006

Hey kindzcar. BMW Financial Services' current lease program is scheduled to run through October 31st. It is difficult to say what its new November lease program will look like, but I suspect that BMW will try to maintain a similar level of lease support to what it is currently providing on model models.

Car_man
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CarMan@Edmunds · October 2006

Hi gfontenot. Let me begin by saying that $4,000 is way too much money to put down when leasing. You can and should lease any vehicle that you are interested in without making any sort of capitalized cost reduction. I always advise community members against making down payments on leased vehicles mainly because if your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears. If you have the money to make a down payment and want a lower monthly payment on the vehicle that you are interested in, you would be better off using that money to make additional security deposits. BMW Financial Services provides consumers with a reduction .00007 of in their vehicles' money factors for each additional deposit that they make, up to a maximum of seven. The beauty of making additional deposits on leased vehicles is that unlike down payments, you actually get them back at lease-end.

I would be happy to give you my opinion on this lease, but you never mentioned the exact car that you are interested in or its MSRP. These numbers will help me give you a detailed opinion of this deal. Let me know and I'll tell you what I think.

Car_man
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CarMan@Edmunds · October 2006

Hello carnutfan. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 530i with 15,000 miles per year are .00100 and 60%, respectively. Stop by the following discussion to get an idea of how much you should pay for this car right now: "BMW 5-Series: Prices Paid & Buying Experience".

Car_man
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CarMan@Edmunds · October 2006

Hey Armitage Mike. BMW has a 36 month lease program on this car, but not one for 39 months. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of the 2007 530xi with 12,000 miles per year are .00160 and 60%. It is not providing support on 48 month leases of this car, but you might be interested in its special 42 month program. Its numbers for an otherwise identical 42 month lease are .00160 and 50%. This lease program is scheduled to run through October 31st. I have not heard any rumblings about what its November lease program will look like. Please feel free to check back with ma late this week and I should be able to give you an idea of what its November lease program is like.

Car_man
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dylan77 · October 2006

this morning i was offered the following lease deal at center bmw in van nuys, ca. for a 2007 530i
msrp: 52,020 (includes premium,auto, and cold weather
purchase price: $48,910.00 ( 800.00 over invoice)
money factor: 1.0 (they claim this is the same as a .0010
which translates to 2.4 apr.

$638.00 month with $1969.00 down (includes 1st payment) or

$704.00 month with no money down

36 month lease with 15000 miles

residual : 60%

dhanley · October 2006

Without knowing precisely what the taxes are, that sounds like a good deal!

tayl0rd · October 2006

What rate did the dealer you are working with quote you?

If I recall, the rate they were spewing was .00219 or thereabouts. On top of that, just to get a new 550i configured the way I want below an $800 payment, they want $9,000 down! So, either these guys are extortionists or they don't know how to do leases. I'll go with the former since they claim 65% of their business is leases and they don't allow MSDs.

Mind you, that money factor is what they were quoting me for 39 months and 10K/year! :surprise:

dhanley · October 2006

It sounds to me as if the leases they are using are not through BMW. It's probably through some leasing company that gives them more back-end profit.

I wouldn't touch it. Who knows what they will do at lease end...

tayl0rd · October 2006

Thanks, dhanley. After reading what other folks are getting and my dealers unwillingness to even touch it, that's the decision I've made. And it's unlikely that I will be doing business with them any time in the future.

bluedde · October 2006

I am looking into a 530xi wagon either 2006 or 2007. I should be hearing from the dealer with their offer shortly, but I've been following the discussion and am curious to see how the deal compares.

One troubling part is that they tell me that for 2007 models the price is full MSRP. I know this is a line, and I'm waiting to see their offer, but is this realistic?

I'll post again once I see the offer.

bluedde · October 2006

So, got the offer from the dealer and here it is:

2007 530xi wagon
MSRP $60,220
Selling Price $57,415 ($1500 over invoice)
36 mo/12k
62% Resid
MF .00205
Drive off $1327.02
Pmt $776.59 + tax ($836.78 total)

OR

Drive off $6468.89 (includes 7 security deposits)
MF .00100
Pmt $676.24 + tax ($728.65 total)

It seems to me that per the discussion that I should be able to get the Money Factor of 0.00100 without the huge drive off, but I may be able to buy down the payment further with the additional security deposits to get a much reduced MF. They tell me this is the End of the Month Special if I lock in by tomorrow night.

Is this a good deal? And, do you have recommendations either way?

Does anyone know what the Nov money factors are going to be?

I'm not in any hurry to buy so I can easily walk on this.

Thanks

dylan77 · October 2006

final offer from center bmw in los angeles:

2007 530i with premium, auto, and cold package

msrp: 52,020
invoice: 48,110
selling price: $49,290 (800 over invoice plus maco)
acquisition: 825.00 (200 markup)
money factor: 1.0 (same as .0010 they say)

36 month lease/ 15000 per year

drive off: $1970.00 (1st payment, sales tax, dmv, acquisition, doc fee)

payment: $643.00 inc. tax

do the experts out there feel this is a fair deal even with the acquisition markup and maco fee. By the way, will they waive the maco fee or is that mandatory in california. any feedback will be greatly appreciated as i plan to pull the trigger soon. thanks!!

dylan77 · October 2006

while i am on this forum , does anybody know the difference between jet black and sapphire black besides one being mettallic. is metallic preferable over non-metallic?

thanks...

kyfdx · October 2006

Metallic is the whole difference... it does give it a very slight bluish tint in some lighting situations...

The metallic paint hides swirls and imperfections much better than the Jet Black.. I'd recommend it, if picking between those two..

dhanley · October 2006

Well, i'm not an expert, but it looks fair to me. You could probably save a few bucks a month with more shopping, but it probably wouldn't be worth it, and it's nice to be on good terms with the dealer in the future.

Sapphire/jet black is metallic/mon-metallic. Just a looks/personal preference difference.

shipo · October 2006

I had Sapphire Black on my 530i and it was by far the best of the 4 black cars that I've had over the years. After having lived with the metallic black I'll never willingly go back to a non-metallic black paint again.

Best Regards,
Shipo

armitagemike · October 2006

Car Man:

Any idea what the Money Factors and Residuals are for 36 month ,36,000 mile leases on 525xi, 530xi and base 525, 530 models will be for November?

Also, how much does each security deposit reduce the money factor?

Finally, I'm having difficulty getting dealers to come down from either a marked up money factor or making less than $1750 over invoice, not including marking up the acquisition fee. Best deal I've received is probably close to $2,000 over invoice. Any ideas?

Thanks

Armitage Mike

tinoco · November 2006

Car Man;
I have been offered the following lease for a 530i, MSRP of $55,970.00

$1,112.34 drive off and 12k per yr. for 3 years.
Monthly payment of $598.70 plus tax = $645.10 including tax. I am in California,

Please help!

rosie108 · November 2006

OK - Newbie leaser here. I'm just about to go to my local BMW to negociate a 36 month, 15K mile per year lease on a 2007 525xi (MSRP 54,180, Invoice 50,060). What should I expect? What would you expect as a good deal for this car? Thanks in advance.

mukvij · November 2006

So, yesterday, I leased a new 525i for 24 months(73% residual). 1000 over invoice + MACO + training. I know it is on the high side. Money factor was 0.00009. But one thing I checked afterwards was that number of miles was 10K per year. Did they screw me on this?

rosie108 · November 2006

Armitagemike - I've been offered the following in November:

2007 525xi, MSRP $53,780
Invoice: 49,600
Selling price: 51,450 (1850 over invoice)
MF: .0010

36 month, 15K lease terms: $2250 inception, $695 per month all in OR
$2250 inception, $2500 down payment, $619 per month all in

Comments please?

armitagemike · November 2006

Rosie:

I guess I feel honored that someone is calling me out for advice. However, I'm not the expert. I think you should address it to the Car Man, but I will do the best I can.

I think you should look at a lease calculator, that gives you monthly payments based on the numbers you put in. See this link:

www.leaseguide.com/calc.htm

I don't know what state you live in, and not sure what the "breakdown" of the "inception" money is. If some of that is taxes, fine. In my opinion, I always would ask for a specific breakdown of each charge. One of those fees is a BMW Acquisition Fee. Some dealers I have contacted mark it up. Some don't.

Regarding your Money Factor, that seems to be the "buy rate", which is good. Some people in these forums suggest that you can lower this rate further by putting "down" more refundable security deposits, which would lower your payments.

Regarding a "down payment", these forums suggest that this is not a great way to lease. If you put money down and have a total loss, that money could also be lost. Please see other parts of this forum to be further informed.

The $1850 over invoice is really your call. If you read back in these forums, Car Man and others seem to suggest that $1000 over invoice is a more "fair" deal. However, I have been trying myself to get a deal in that range and already 1 dealer has told me to buy the car elsewhere. I am still haggling with others in my area to see where I can come out on a car. Many factors, I would assume, go into this decision: Ready availability of the Car, what your timing is for actually driving the vehicle, etc. Those are your decisions. My gut says that you could do better on the price of the vehicle, thus lowering your payments. You should figure out what exactly the inception money is, as it seems like there might be some dealer profit in there, but I don't know.

Hope this helps.

Armitage Mike

acerfan · November 2006

I have been contemplating leasing a 5 series for the last couple of months and have been watching the incentives. It seems that the November incentives are the lowest that can be offered..!!?? And hence, this may be the time to go for it. However, I am a little more tugged towards the 550 than the 530, and wonder if similar incentives will be offered for 550 in the near future and whether I should wait for that. I would also not like to lose this chance of owning a 530...! What is the money factor offered for 530 at this time? Can someone or the host offer some advice? I live in Ohio. Thanks.

mukvij · November 2006

From what I hear(and I got a car at that MF), MF has been lowered a bit for November to .00009.

acerfan · November 2006

For all 5s?

mukvij · November 2006

I bought a 525i. So on that for sure. I remember the sales guy saying 530 as well but couldn't be sure.

kg6c · November 2006

I would like to lease a 525Xi for 15k miles a year. WIth the new promotions in November, how much should I expect to pay per month. So if I can negotiate the price around $50600, which is $1000 over invoice for a 525Xi. What should my monthly payment be.
Thanks
KG6C

BMW 5-Series Lease Questions

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