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BMW X3 Lease Questions

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  • flightnurseflightnurse Member Posts: 2,217
    First issue is, know your credit score. PERIOD You shouldn't walk into a dealership and not know this stuff.

    MF changes monthly, if you qualify for BMWFS top tier credit then you will be offered the 0.00127 (or whatever it is currently) MF, if you do not have top tier credit then you are at the mercy of the dealership and banks. This can add some serious $$ to your monthly payments.

    Good luck
  • jasonmdbmwjasonmdbmw Member Posts: 117
    Just because you qualify for top tier doesn't mean the dealer is going to offer you the buy rate. Most will mark it up as much as they can to .00167 and go from there if the customer objects to it. The lowest your score can be to qualify is 675 and if you don't know your score, simply ask them for your score or to show you your report.
  • fantasyduckfantasyduck Member Posts: 11
    Not too sure if my 0.00139 MF while getting Invoice for a 2014 X3 was the best I could do. I was planning for 0.00127 as I have great credit but I guess I didn't press hard enough.
  • grokgrok Member Posts: 10
    Recently I saw an internet advertisement for a 2013 x3 28i that was new but had been used as a loaner and therefore had over 8000 miles on it. The Price for the vehicle had been reduced $4855 below the MSRP of $47845 for a sale price of $42,990. This seemed like a great vehicle to lease if I could keep the residual at 57% by returning it with less than a total of 45,000 miles (8,000 existing + 36,000 driven by me). I understood that the price had been reduced because of the miles,but what I cannot understand is if I returned this vehicle at the end of a 36 month lease with less 45,000 miles ( 8000 existing +36000 driven) the dealer stated the residual is not 57%, as it would be with a new car with 0 miles that was driven 45000 miles by the purchaser. Instead through some complex penalty per mile driven prior to purchase the residual would end up being 53%. I confirmed this is a written policy of BMW with a call to BMW Financial. So with one hand the car is discounted and with the other hand the discount is taken away with a higher than "normal" lease end residual value. ????? So dishonest! I expect this from a dealership,but not the written policy of BMW Corporate.
  • flightnurseflightnurse Member Posts: 2,217
    Everybody wants something for nothing, first off any car can be leased, and this X3 can be also, however, it will not get the same MF as a new X3 as the one you looking at is not new. So BMW is not being dishonest, its just that you want BMW to treat this X3 as a new one and still give you the deep discount.
  • kyfdxkyfdx Moderator Posts: 236,702
    There is another variable that you didn't account for.... the loaner vehicle will be more than three years old when you return it... The warranty clock starts ticking when it is put into service... so, it will be worth less than a brand-new vehicle when you return it.... which is why you can't just use the 3yr/45k lease program.

    The actual residual isn't really a lower percentage... It's the same percentage as a new one, minus $0.30/mile... (first 500 miles are free)..

    So, the residual is reduced by (8000 - 500 ) X $0.30 or $2400 less..

    I wouldn't say it's dishonest.. Sounds like it's something that you weren't aware of. 4 or 5 years ago, the residual reduction was only $0.15/mile, and that made the loaners a better deal to lease..

    If you are still interested in that vehicle, you might mention to the dealer that he needs to lower the price to make the lease deal competitive...

    If it's a current model loaner, then it usually qualifies for most of the current rates and incentives, including money factors and residuals, but you do have to reduce the residual to account for the mileage... no way around that..

    regards,
    kyfdx

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  • braketoolatebraketoolate Member Posts: 12
    Hi,

    What's the latest RV and MF for X3?
    would you please let me know for both 2yr and 3yr lease?

    Thanks!
    B
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi braketoolate. BMW Financial Services' June buy rate lease money factor and residual value for a 24-month lease of a 2013 X3 28i with 15,000 miles per year are .00127 and 63%.

    The numbers for an otherwise identical 36-month lease are .00127 and 57%.

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  • tarusse1tarusse1 Member Posts: 2
    My wife and I are looking at leasing a 2013 x3. We have been to one dealer and was quoted on 36month 12k mile lease a payment of 750 a month with 3000 down. This seems extremely high to us. A family member recently leased an x3 for 460 a month same lease terms. Is it unreasonable to lease an x3 with price of 39995 for a payment of 450-475 a month?
  • tonka858tonka858 Member Posts: 112
    edited June 2013
    why not get a 2014..and yes the dealer is ripping you off..check out bmw web site
    web deal and this is not with even bargaining
    2014 X3 xDrive28i
    $489*/month for 36 months. $750 Loyalty Cash included in payment.
    • $489 First months payment
    • $2,750 Down payment
    • $0 Security Deposit
    • $725 Acquisition fee
    • $3,964 Cash due at signing

    Contact a dealer

    http://www.bmwusa.com/standard/content/Vehicles/2014/X3/xDrive28i/OfferDetail.as- - px?NAModelCode=14XD&OfferType=2&regiontypeid=2
  • flightnurseflightnurse Member Posts: 2,217
    There are many factors related to lease payments, the biggest factor is credit score, if you do not have top tier credit this will be an issue. Second, put the least amount of money out of pocket, 3K is a lot of money. People shop for price in a lease this can't not be done. Go back and a page or two and see what people have paid for a X3.

    If you never leased a car before Edmunds has a wonderful article on how to lease a car, read it.. Get the current money factor (% rate) and residual that BMW financial service is offering by asking on this forum. Having this info will help out a lot when going to the dealer. Also are you negotiating a sale price of the X3? Do not pay MSRP for a lease...
  • grokgrok Member Posts: 10
    KYFDX:Thank you for your response and effort to explain. It is my understanding the vehicle is being sold as new and under a full 4 year warranty. It is discounted for the miles,but not the warranty. Whoever purchases it or leases it is the first owner and we are still in the 6 month of 2013, so in June of 2016 it would have 45,000 miles and 1 owner and should still have a 1 year warranty remaining ,but that of course is up to BMW as to whether they think the vehicle is able to be warrantied for another year to a new purchaser. It is my opinion that the practice of charging the excessively high penalty rate of .30 per mile is dishonest and the residual is already adjusted if 57% is used rather than 59% for the 12,000/yr I would be adding. In any case,I think this is a bad and unnecessaryily petty policy for BMW that does not create confidence, trust or even meaningful profit for the company.
  • grokgrok Member Posts: 10
    Flightnurse:Thank you for your response. The vehicle is being sold as new. It is listed under "new" inventory. It is a 2013 vehicle being sold in June of 2013. It is discounted for the miles on it,but not the warranty. It still has a 4 year warranty to any purchaser. I was wiling to have returned it in 3 years putting only 36,000 miles( 59% residual) and to instead use the actual 45,000 mile residual of 57%. I am not ok with paying a .30/mile penalty rate on their miles. It is a vote of no confidence by BMW to be willing to advertize it and sell it as new,but not lease it as such. In June of 2016 it would have 1 owner and 45,000 miles and 1 year warranty remaining, therefore the residual should be 57%.
  • tarusse1tarusse1 Member Posts: 2
    Thanks for the input. I have read the edmunds lease article as well as others. I felt like I understood leases fairly well so I just wanted the reassurance that the dealer was trying to screw us. We have tier 1 credit and after shopping around at another dealer we are looking a 2014 x3 with an Msrp of 43,800. Dealer said with 1500 down payment is $450 a month for 3yrs 12k miles a year. Does that seem reasonable?
  • mattyg412mattyg412 Member Posts: 7
    edited July 2013
    Hello,

    I am considering a lease on a 2014 X3 28i. I will lease for 3 years with 15,000 miles per year. Would you kindly provide the current (July) residual and MF? I have tier 1 credit.

    Thank you very much!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'd be happy to help you out mattyg412. BMW Financial Services' July buy rate lease money factor and residual value for a 36-month lease of a 2014 X3 28i with 15,000 miles per year are .00127 and 54% for consumers who qualify for its top credit tiers.

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  • grokgrok Member Posts: 10
    I am familiar with leasing, but I am charting new grounds negotiating a lease on a 2013 BMW loaner with thousands of miles on it. The price has already been aggressively discounted because of the current miles on the car. The research I have done indicates that the lease end residual amount for the chosen model, miles/year and term should be reduced by an additional .15 per mile that is currently on the vehicle. Please confirm if .15 is the correct amount/mile and if this amount should be deducted from the residual (creating a lower residual amount and %) in order to calculate the lease payment.

    One other question. The dealer indicated there would be no acquisition fee. Is it possible that since BMW has no advertised lease offers on this 2013 vehicle that no acquisition fee is required?
  • flightnurseflightnurse Member Posts: 2,217
    I don't think there is a .15/mile deduction, the BMW dealer sale price is the negotiated sales price of the X3, which the lease is based off. What is the money factor and residual the dealer is giving you? That is going to tell anyone what kind of deal you are really getting.

    When I was looking at a loaner X3, the reason I was told that their were no acquisition fee is because it is used.
  • kyfdxkyfdx Moderator Posts: 236,702
    It's $0.30/mile, after the first 500 miles..

    All leases will have an acquisition fee, although it may be rolled in to the CAP cost. They can waive the acq. fee, with a .00035 bump in the money factor, but this rare and not usually cost effective, unless it's a short term lease.

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  • grokgrok Member Posts: 10
    Thank you so much for your insight on the Acquisition fee, that makes sense and give me a basis to stand on , if they try to rescind when I begin to negotiate .For 2013 the money factor of .00127 & residual of 59% for 1200m/year for 3years has not changed on this vehicle. The dealer stated that the miles would cost.30 per mile and be directly deducted from the residual amount, but since BMW USA advertises on their website that additional miles are only.20c at the end of a lease unless you purchase additional miles before the lease end then they are .16; this made me think their number was too high. I called a reliable source and was told the cost is .15 / mile. This makes the adjusted residual 56.35% rather than the 53.5%residual the dealer quoted. Big difference. Can you confirm?
  • kyfdxkyfdx Moderator Posts: 236,702
    $0.30/mi. (1st 500 miles are free)

    It used to be $0.15/mi., but that changed over two years ago..

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  • grokgrok Member Posts: 10
    Thank you KYFDX: Your site is a priceless resource. Excuse me if I question this a bit further. My resource was from BMW USA, but I did not see it in writing. Although the dealer will always have some latitude,just as the buyer can refuse, perhaps the.30 is a max the dealer is allowed to charge and .15 is a min. It is possible I spoke to someone who was mistaken or assumed based on old information rather than read the current guidelines. Once more are you certain?

    And is this considered a used car that does not require an acquisition fee?
    Since it has had no owner there is no info on it in car fax.
  • kyfdxkyfdx Moderator Posts: 236,702
    It's $0.30/mi.. no exceptions and not up to the dealer..

    Every BMWFS lease has a $725 acq. fee that the dealer can mark up by $200 for extra profit.

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  • billmvbillmv Member Posts: 148
    You got an excellent deal. May I ask what dealer in what city?
  • 138057138057 Member Posts: 3
    edited July 2013
    2013 X3 28i with:
    Sport Activity Package (sport seats, roof rails in aluminum satin, sports leather steering wheel)- Convenience Package (comfort access, window shades, xenon headlights)- Cold Weather Package (heated steering wheel, heated front/ rear seats)- Premium Package (universal garage door opener, panoramic moonroof, lumbar support)- Premium Sound Package (satellite radio, premium hi-fi system)- Technology Package (rear view camera, park distance control, navigation, BMW Assist w/ Bluettoth)- Fineline Wave wood trim, Smartphone Integration, and BMW Apps.

    MSRP: $51,395
    Lease: 559/month + TTL (10K/36mo)
    Nothing down.

    Good deal?
  • flightnurseflightnurse Member Posts: 2,217
    What's the negotiated price, you have MSRP listed? what is your money factor?
  • grokgrok Member Posts: 10
    Thought you would want to know for future reference that there is some latitude that the dealer has in the charge for excess miles. When the dealer told me it was .30/per mile I told him that he would have to show me. When he pulled it up on his computer he pulled up .20/per mile and used this number instead....that saved me $1096 in residual value. In truth I still don't know that this is the lowest number, but was content to accept .20 instead of .30

    Deal was as follows for 2013 X3DR28i loaner with 10936 miles.

    MSRP $49345
    Net cap$4100(including 500 loyalty +1000 test drive from BMW)
    Money Factor .00127
    residual 59% for 12,000/yr for 3 yrs = $29114 Residual

    10,930m-500m=10,430m*.20 = $2086 came up with a new residual of $27028 which is about 54.77% and saved me $1043 in residual value.

    ($476.70 base + 41.71 sales tax 8.75%) =$518.41 instead of $516.08 I calculated using their numbers and we signed papers.
    Paid $1218 in fees(including acquisition fee) which was $200 more than I should have, but I was feeling generous.
  • steevosteevo Member Posts: 389
    The residual is based on the MSRP. Therefore it is a fixed amount. What do you mean you saved money on the residual by making it lower? Lowering the residual, if you could, would increase the cost of your lease.
    Am I missing something?
    I don't understand what you are trying to say when you say you saved 1096 in residual value.
  • kyfdxkyfdx Moderator Posts: 236,702
    He leased a loaner vehicle.... The residual is adjusted for the excess miles...

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  • steevosteevo Member Posts: 389
    Oh I see... I was confused by the reference to "saving" money on the residual as if it was a good thing. The residual adjustment essentially negated the discounted capitalized cost of the car.
  • grokgrok Member Posts: 10
    Stevo: Sorry I was not clear,but I was responding to a previous discussion where I was told by kyfdx and the dealer that the residual of 59%( which on this car was $29114) had to to be reduced by .30 per mile on any milage over 500 on this loaner car for leasing purposes. The 2013 x3 with 10930 miles MSRP $49345 had already been reduced to a $42500 selling price before incentives. I wrote in to inform that .20/mile was used rather than .30 in this lease. For anyone leasing a loaner this is important information that was only found out in negotiation. I have not seen BWM policy and even this website quoted incorrectly. I am not certain what the actual number is, but the sales manager's computer showed .20 and that is what we adjusted it to.That .10 reduction alone made a $30 reduction in the monthly note.
  • kyfdxkyfdx Moderator Posts: 236,702
    The residual adjustment essentially negated the discounted capitalized cost of the car.

    Well, hopefully, that isn't the case... if it is, then there is no point in leasing a loaner..

    I've leased two BMW loaners, and in both cases the discounted price far exceeded the residual reduction....

    The last one was a 2011 Z4 with an original MSRP of $55K and around 11K mi. on the odometer.. 24mo/20K lease for $335/mo, inclusive of tax... with just 1st payment and 7 MSDs upfront.. (best lease deal I've ever made!)

    Not every loaner deal is that good... that was a great lease program, coupled with a low MSRP unit, and low purchase price...

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  • ingonutsingonuts Member Posts: 2
    edited August 2013
    Is this a good deal? Thinking of going owners choice here

    Msrp $52750
    Negotiated price after rebates $47700
    Residual 10K = 63%, 12K = 62%
    Tax $2489
    Tag doc etc fees $400

    Minus $8900 for a trade in car

    $41,625 final price

    Owners choice 4%interest 10k $388/month 12k $408/month
    Lease 10k $410/month 12k $430/month
  • mnmonkeyboymnmonkeyboy Member Posts: 1

    I found a 2013 BMW X3 xDrive28i AWD, with a moonroof, winter package, navigation, leather and power assisted rear door for just under $35,000. It has 16,600 miles on it and no accidents.

    I'm considering leasing it for 3 years with 12,000 miles per year.. At the end of 3 years I will likely be just under 50,000 miles so I never have to worry about service. I'm not going to do a trade, but will pay taxes etc. up front....but want to put as little money down as possible.

    I think this price is good I but want to make sure they don't get me in the lease. What should the residual be? And what should the money factor be? In other words what would you expect my payments to be?

  • kyfdxkyfdx Moderator Posts: 236,702

    Is it used? Or, a service loaner? If the vehicle has been previously titled, then it isn't eligible for the new car lease programs. I don't have any information on used car lease programs, but they rarely turn out to be cost effective.

    regards,
    kyfdx

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  • oscarsba1oscarsba1 Member Posts: 3

    Time for a new X3. Can you help me with the current MF (BMWFS base rate) residual based on MSRP, and incentives, for a 2014 BMW X3 xDrive 28i; 36 months / 12k miles/year? Thanks very much...

  • ryangadryangad Member Posts: 13

    Looking for X3 xDrive28i MF and Residual for Jan'14 (3 year lease / 10k miles per year). Also, any current leasing incentives on this vehicle (loyalty or otherwise)?

    Any help that you could provide would be much appreciated! Thanks!

  • redbone55redbone55 Member Posts: 43

    I am also looking for info related to X3 28i. I am current lease holder living in Franklin County OHIO. (7.5% tax).

    Looking for 3 year lease/12K miles per year. Blue water metallic, heated seats, premium package, lighting package.

    Thank you

  • Kirstie_HKirstie_H Administrator Posts: 11,148

    Hi - let's continue in our 2014 BMW X3 Lease Questions discussion instead.

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