2014 BMW 3-Series Lease Questions

Michaell · August 2014

@park5 said:
Could you guys be able to help me out with the Residual Value for a 2014 335Xi? with an MSRP of $58,000 for 10k/12k/15k for 36mos? It is a demo and currently has about 4,000miles. I have tried on a lease deal with my local dealer and have gone through the numbers of 0.00130 MF, but am not able to justify their selling price.
Should this vehicle have a residual of 64% for 10K as new or should the residual be adjusted because of mileage?

My understanding of Aug current residuals for new 2014 335xi should be 64%/10K, 62%/12K, 61%/15K.

Thanks.

2014 335xi residuals are 60% / 62% / 63% for 15K / 12K / 10K

_oofie_ · August 2014

@Michaell said:
The Edmunds pricing should include any available incentives. I would think that invoice less any available incentives would be a good target.

Thanks for the clarification Michaell! I think it's a solid deal then.

dangolds · August 2014

@boynix said:
thanks for your response Michaell. decisions decisions..
@boynix said:
Was shopping around for some numbers on a 2014 328xi with NJ dealers to take advantage of MSD. Best numbers I received so far is the following -

14 328xi with Lighting & tech pkg with few other options
total sugg. price - $50250
36mo / 12k yr

$399/mo with taxes, fees, 1st mo and MSD up front totalling approx $5685.
(MSD is $400 x 7 = $2800)

I'm also thinking of attending the un4gettable driving event for the 1k voucher so that should bring my monthly down to around $370/mo.

Is this good pricing or can I do better? I also was quoted for a 2014 335xi without sport line and little less options for approx $30/mo. total sugg. price around 50400. Still trying to decide to go with 328xi with more options/sports line or 335xi with little less options but better engine. Any inputs would be appreciated. Thanks!

If the pricing for the 328xi you quoted is legit with nothing down aside from first month and MSD, I would jump on that in a heartbeat. I was pricing out various 328xis last month and the closest model in terms of features I priced out against yours had an MSRP of $49K. Best I could do on price/incentives was to knock the price down about $5,500 under MSRP. With the same down payment and lease terms/mileage, I was looking at around $440/month with taxes.

The price you're being quoted implies that your sale price is around $8K under MSRP, maybe even more. From all the research I've done in these forums and several others, that's the best pricing I've seen yet on a 2014 328xi (assuming it's new and has little to no existing mileage on it).

And in terms of your question of the 328 or the 335, I was looking at the same decision. I ultimately went with a fully loaded 328 (sticker price with the options was about $52K) over a stripped down 335. I felt that the 328 drove great, to the point where I wasn't missing that much in my everyday driving with the absence of the 335's V6. I preferred getting a lot more options and getting better fuel economy, while still retaining very good power, handling and acceleration.

Prior to the 328, I had been leasing various Infiniti G35/37s over the last 9 years, each with a V6. Haven't felt like I've been lacking for power or acceleration since making the switch to the BMW 4 cylinder.

Good luck with whatever choice you make.

park5 · August 2014

@Michaell said:

Thanks Michaell. Do you know what the residual adjustments would be for a demo car with 4K miles if any?

Michaell · August 2014

@park5 said:
Thanks Michaell. Do you know what the residual adjustments would be for a demo car with 4K miles if any?

There is usually a per-mile adjustment to the residual along the lines of .10-.20 per mile.

dmoo4u · August 2014

I'm wondering if this is a good deal on a lease. It's a demo unit 320i with 4k miles. I'm in Texas

MSRP: $36,635.00

Selling Price: $31,100

Price after taxes and fees: 33,380

Cash down: $1,500

Miles per year: 12k

APR: 4% (I think that's a .00167 Money Factor)

Monthly Payment: $357 (includes taxes)

Michaell · August 2014

@dmoo4u said:
I'm wondering if this is a good deal on a lease. It's a demo unit 320i with 4k miles. I'm in Texas

MSRP: $36,635.00

Selling Price: $31,100

Price after taxes and fees: 33,380

Cash down: $1,500

Miles per year: 12k

APR: 4% (I think that's a .00167 Money Factor)

Monthly Payment: $357 (includes taxes)

The MF is inflated ... base MF is .00130

If I use the base MF and 63% residual for 36/12 with your MSRP and selling price, I get a pre-tax payment of $293.21/mo.

dmoo4u · August 2014

@Michaell the salesman said that bmw builds in a .00040 mark up on their MF for a MF of .00170. Any thoughts?

Michaell · August 2014

@dmoo4u said:
Michaell the salesman said that bmw builds in a .00040 mark up on their MF for a MF of .00170. Any thoughts?

Sure ...

BMW doesn't build in the mark up; the dealer does. For extra profit.

Explain politely but firmly that you won't sign a lease deal with a marked up MF.

Lots of BMW dealers out there ... I'm sure you can find one that will accommodate you.

dmoo4u · August 2014

Thanks, again @Michaell - Called another dealer in the area and they wouldn't budge off the .00170 either. Called a 3rd dealer and still waiting to hear back

Michaell · August 2014

@dmoo4u said:
Thanks, again Michaell - Called another dealer in the area and they wouldn't budge off the .00170 either. Called a 3rd dealer and still waiting to hear back

Collusion? Lots of folks here are able to secure lease deals with the base .00130 MF.

dmoo4u · August 2014

@Michaell I see on their websites they have financing offers to purchase at 3.2%. I'm honestly pretty un-informed when it comes to the specifics of financing and leasing - so would it be reasonable for me to compare my 4% APR offer to their financing offers of 3.2% and ask for the same rate?

arexree · August 2014

Hi Michaell / kyfdx,

What would be a reasonable selling price, discount as a % from MSRP, on a 2014 BMW 328xi (12k miles/36 months) including the $2,000 build-out cash? I received a quote with a 9.8% discount from MSRP ($42,350 MSRP / $38,195 sales price) and was wondering if this is a steal or if this discount is common among BMW dealers now as the 2015 models are coming through.

Thanks in advance as always!
Alex

kyfdx · August 2014

@dmoo4u said:
Michaell I see on their websites they have financing offers to purchase at 3.2%. I'm honestly pretty un-informed when it comes to the specifics of financing and leasing - so would it be reasonable for me to compare my 4% APR offer to their financing offers of 3.2% and ask for the same rate?

The base (or buy) rate for BMWFS financing is 3.13% APR, right now. But, they mark that rate up, as well.

The buy rate is .00130 on the lease... Most dealers mark it up..

kyfdx · August 2014

@arexree said:
Hi Michaell / kyfdx,

What would be a reasonable selling price, discount as a % from MSRP, on a 2014 BMW 328xi (12k miles/36 months) including the $2,000 build-out cash? I received a quote with a 9.8% discount from MSRP ($42,350 MSRP / $38,195 sales price) and was wondering if this is a steal or if this discount is common among BMW dealers now as the 2015 models are coming through.

Thanks in advance as always!
Alex

I always consider 7% off MSRP, then minus any incentives, to be a good selling price on end of year BMW models.. Or, about $800 less than your quote.

arexree · August 2014

@kyfdx said:
I always consider 7% off MSRP, then minus any incentives, to be a good selling price on end of year BMW models.. Or, about $800 less than your quote.

Thanks kyfdx. I'm visiting a dealer on Monday and the car I asked for a quote on is a loaner service with 6,000 miles on it. Do you recommend/not recommend leasing a loaner service? The salesperson I spoke with said the vehicle is still classified as a new vehicle just under the Demo category.

If you don't see a problem leasing one of these, do you have a good % range for the selling price on one as a discount of the MSRP? Does the residual/MF change also? I'm wondering if any of the pricing methodologies change due to this.

Thanks!

riley76 · August 2014

Does BMW do 7500 mile leases? If so what are the residuals for that mileage at 36 months? Thanks!

Michaell · August 2014

@riley76 said:
Does BMW do 7500 mile leases? If so what are the residuals for that mileage at 36 months? Thanks!

The lowest mileage we have information for is 10K per year.

samoson · August 2014

Can anyone solidly tell me if I lease a car from a NJ or Conn. Dealer but register car in NY, will I be able to take advantage of MSD's? A sales guy in NY told me absolutely not.

kyfdx · August 2014

@arexree said:
Thanks kyfdx. I'm visiting a dealer on Monday and the car I asked for a quote on is a loaner service with 6,000 miles on it. Do you recommend/not recommend leasing a loaner service? The salesperson I spoke with said the vehicle is still classified as a new vehicle just under the Demo category.

If you don't see a problem leasing one of these, do you have a good % range for the selling price on one as a discount of the MSRP? Does the residual/MF change also? I'm wondering if any of the pricing methodologies change due to this.
Thanks!

I've leased two different BMW service loaners with good results, each time. The lease parameters will be the same, but the residual will be adjusted downwards to account for the mileage on the vehicle. That cost per mile has fluctuated.. I'm not sure what they are using right now, but the upper range has been $0.30/mi. So, in the case of a vehicle with 6000 miles, that would be $1800 less than MSRP X residual%. Your goal is to shoot for a selling price that is at least that much below the selling price of a comparable new unit, and hopefully, at least a couple thousand below that. My goal has always been to save at least $50/mo. over the comparable brand new model.

kyfdx · August 2014

@samoson said:
Can anyone solidly tell me if I lease a car from a NJ or Conn. Dealer but register car in NY, will I be able to take advantage of MSD's? A sales guy in NY told me absolutely not.

Plenty of anecdotal evidence of NY residents using MSDs on leases from dealers in New Jersey. Can't say I remember any from Connecticut dealers, though.

What did you expect the NY sales guy to say?

arexree · August 2014

Hi Michaell / kyfdx,

I visited one dealer and received the below offer on a new 2014 BMW 328XI for 10k miles/36 months lease. I will be visiting a competing dealership tomorrow and see if they can beat it. Could you let me know if you think the below is fair?

MSRP: $47,000 / 2. Sale Price: $42,500 (have to re-confirm this, but they wouldn't meet me at the sweet spot of 7% discount from MSRP + $2K build out cash) / 3. MF: 0.00081 (7 MSDs at $450 per) / 4. Residual: 64% / 5. Acquisition Fee: $925 / 6. DMV Fees: $170 / 7. Doc Fees: $349 / 8. Tax on Fees: $92.20

Monthly Payment: $427.15
Total Due at Signing: $1,971.35 (First month's payment, all the fees including acquisition)

Thanks as always.

Michaell · August 2014

@arexree said:
Hi Michaell / kyfdx,

I visited one dealer and received the below offer on a new 2014 BMW 328XI for 10k miles/36 months lease. I will be visiting a competing dealership tomorrow and see if they can beat it. Could you let me know if you think the below is fair?

MSRP: $47,000 / 2. Sale Price: $42,500 (have to re-confirm this, but they wouldn't meet me at the sweet spot of 7% discount from MSRP + $2K build out cash) / 3. MF: 0.00081 (7 MSDs at $450 per) / 4. Residual: 64% / 5. Acquisition Fee: $925 / 6. DMV Fees: $170 / 7. Doc Fees: $349 / 8. Tax on Fees: $92.20

Monthly Payment: $427.15
Total Due at Signing: $1,971.35 (First month's payment, all the fees including acquisition)

Thanks as always.

Using your numbers, I get a pre-tax payment of $403.79, so the offer of $427.15 seems right, depending on your tax rate.

Seems a fair deal.

cococo · August 2014

I saw many people posted the amount due at signing to be only the first month payment plus all fees. But don't we need to pay 7 MSDs upfront (due at signing) as well? Thanks again!

edsmed1 · August 2014

Hello,

Can somebody confirm the residual on a 2014 328gt x drive gt?

Thanks in advance.

edsmed1 · August 2014

null
Sorry, it's for a 3 year/12 know mile lease.

Michaell · August 2014

@edsmed1 said:
Hello,

Can somebody confirm the residual on a 2014 328gt x drive gt? 3 years, 12K

Thanks in advance.

.00130 MF and 63%. $1000 build out credit.

_oofie_ · August 2014

Might pull the trigger on this one:

2014 AW 328i

M Sport
Lighting package
moonroof
Tech package
driver assist
heated front seats
black kidney grills

MSRP - $48500

Selling for $43990

less $2000 build out cash & $1000 un4gettable drive

MF: .00081

RV: 63%

New selling price: $40990

36 month lease / 10k miles / 3 years

$4100 drive off (incl 1st month payment and $3150 in MSD's)

$406 / month incl tax (8.5%)

What do you guys think?

arexree · August 2014

@oofie said:
Might pull the trigger on this one:

2014 AW 328i

M Sport

Lighting package

moonroof

Tech package

driver assist

heated front seats

black kidney grills

MSRP - $48500

Selling for $43990

less $2000 build out cash & $1000 un4gettable drive

MF: .00081

RV: 63%

New selling price: $41990

36 month lease / 10k miles / 3 years

$4100 drive off (incl 1st month payment and $3150 in MSD's)

$406 / month incl tax (8.5%)

What do you guys think?

Wow. In what state did you get a deal like that? I'm barely able to negotiate with the dealers down 5.5% off MSRP in CT (not including the build out cash). That's a crazy good discount for the selling price.

_oofie_ · August 2014

@arexree said:
Wow. In what state did you get a deal like that? I'm barely able to negotiate with the dealers down 5.5% off MSRP in CT (not including the build out cash). That's a crazy good discount for the selling price.

I'm in San Francisco, California. At first I wasn't sure if it was a good deal as I've heard that for 2014 model, expect to get 10-12% off MSRP + any incentives. But as I've been in touch with several dealers, getting to 10% is already difficult. I asked if I can get it for $40700 which would make my payments $399 with tax.

arexree · August 2014

@Michaell said:
Seems a fair deal.

Thanks Michaell. What are your thoughts on the Excess Wear & Use Protection offered on BMW leases? Worth the cost? The dealer wants to charge me $1,295 for the policy which covers $5,000 worth of non-body work damages. It also covers tires and possibly rims (have to confirm). Thanks.

kyfdx · August 2014

@arexree said:
Thanks Michaell. What are your thoughts on the Excess Wear & Use Protection offered on BMW leases? Worth the cost? The dealer wants to charge me $1,295 for the policy which covers $5,000 worth of non-body work damages. It also covers tires and possibly rims (have to confirm). Thanks.

It's a great deal.. for the dealer and the insurance company.

dangolds · August 2014

@oofie said:
Might pull the trigger on this one:

2014 AW 328i

M Sport

Lighting package

moonroof

Tech package

driver assist

heated front seats

black kidney grills

MSRP - $48500

Selling for $43990

less $2000 build out cash & $1000 un4gettable drive

MF: .00081

RV: 63%

New selling price: $40990

36 month lease / 10k miles / 3 years

$4100 drive off (incl 1st month payment and $3150 in MSD's)

$406 / month incl tax (8.5%)

What do you guys think?

I think it's a great deal and you should absolutely do it.

edsteel · August 2014

I recently got this quote but from information on this forum, I think it may not be good deal.

2014 328 xi M Sport, Premium, Cold Weather, Lighting
MRSP 49225
Selling Price 45500

MF 0.0016
RV 0.64

36 month lease/ 10k miles

Customer Cash 2500

$512 a month including tax

Am I wrong?

Michaell · August 2014

@edsteel said:
I recently got this quote but from information on this forum, I think it may not be good deal.

2014 328 xi M Sport, Premium, Cold Weather, Lighting
MRSP 49225
Selling Price 45500

MF 0.0016
RV 0.64

36 month lease/ 10k miles

Customer Cash 2500

$512 a month including tax

Am I wrong?

Base MF is .00130, so your dealer is marking that up on you.

With your numbers, I get $511.98 before tax. Does the selling price include all the upfront taxes?

If I reduce the MF to .00130, the payment drops to $488.88/mo

aitrus03 · August 2014

Im having a really difficult time with the dealers here in Florida. I'm trading a lease for 15k to the dealer with a 21k payoff. I am covering the 6k negative with cash. This washes out my trade but I should still have a tax credit going to a new lease.

The MSRP of the 2014 328i I am looking for is about 48,450. I'm asking for them to discount the car 3450 and then apply the 2k BMW cash, a 2K USAA incentive, and a 1k College grad incentive to bring it down to 40,000. I adjusted the cap upwards to allow for acq fee of 725, dealer fee of 500, and I allowed an extra 1k for title/reg/misc fees. Using the .0013MF and 60% residual for a 36/15 term, I am coming up with 457 pretax or 485 which includes 6% tax for the monthly payments.

Am I missing something? The dealers are acting like I am way out in left field, telling me that the incentives cant be combined, or that the incentive amounts aren't correct or doesn't give that much etc. Then they go on to tell me that they are trying to make a profit, there is little markup in the cars, and that this is BMW, therefor you must pay to play.

Please help! Thanks everyone.

EDIT: After some research, the 2k USAA rebate may only be 500 for leases. Yet to confirm.

edsteel · August 2014

@Michaell said:
If I reduce the MF to .00130, the payment drops to $488.88/mo

Thanks for responding Michaell

I do not think that the selling price includes upfront taxes. Looking at this worksheet they gave me, it says the Gross Cap Cost is 45675.

Also, it looks like the tax was calculated at 6% of the Base Monthly payment of 487.51.

Other than the higher MF, is the selling price being 3725 less than MRSP appropriate? Looking at prior post, people seem to report higher discounts.

samoson · August 2014

If I am a new BMW customer am I eligible for the $2000 build out cash? Is this rebate and the $1000 un4gettable rebate taxable? i live in new york if that matters....thanks...these forums have really opened my eyes and smartened me up

Michaell · August 2014

@samoson said:
If I am a new BMW customer am I eligible for the $2000 build out cash? Is this rebate and the $1000 un4gettable rebate taxable? i live in new york if that matters....thanks...these forums have really opened my eyes and smartened me up

I believe the incentives are taxable as hey represent cash.

Michaell · August 2014

@aitrus03 said:
Im having a really difficult time with the dealers here in Florida. I'm trading a lease for 15k to the dealer with a 21k payoff. I am covering the 6k negative with cash. This washes out my trade but I should still have a tax credit going to a new lease.

The MSRP of the 2014 328i I am looking for is about 48,450. I'm asking for them to discount the car 3450 and then apply the 2k BMW cash, a 2K USAA incentive, and a 1k College grad incentive to bring it down to 40,000. I adjusted the cap upwards to allow for acq fee of 725, dealer fee of 500, and I allowed an extra 1k for title/reg/misc fees. Using the .0013MF and 60% residual for a 36/15 term, I am coming up with 457 pretax or 485 which includes 6% tax for the monthly payments.

Am I missing something? The dealers are acting like I am way out in left field, telling me that the incentives cant be combined, or that the incentive amounts aren't correct or doesn't give that much etc. Then they go on to tell me that they are trying to make a profit, there is little markup in the cars, and that this is BMW, therefor you must pay to play.

Please help! Thanks everyone.

EDIT: After some research, the 2k USAA rebate may only be 500 for leases. Yet to confirm.

Dealers do exist to make money - either by inflating the MF or by not discounting the car as much. You may have to reduce the amount of discount before applying the incentives. There will be a point where a dealer agrees.

Michaell · August 2014

@edsteel said:

5-7% off sticker is about right.

arexree · August 2014

Hi Michaell / kyfdx,

I finally signed a deal on a 2014 328xi (black sapphire metallic/beige interior). I just want to thank you guys for all your help over the past couple months as I would not have properly navigated through the leasing process without your help and expertise. I may have been able to get a few dollars off the final monthly payment but wanted to get something signed before labor day.

Here's my deal for a 2014 328xi (10k miles / 36 month) with cold weather, premium, and navigation packages:

MSRP: 47,000 / Sales Price: 42,000 / MF: 0.00081 (with 7 MSDs) / Residual: 64%

Total Monthly Payment: $414.22 / Amount Due as Signing: $1,912.69 (includes first month's payment, $725 acquisition fee, $684 doc/license/registration fee, and $89.47 taxes on fees)

I maybe should have rolled the acq. fee into the monthly but forgot to mention that, and I'm probably going to opt out of the lease protection warranty per kyfdx's recommendation. Anyways, I'm pretty happy with the deal with 6.3% discount from MSRP + incentives on the selling price.

Again, thanks for everything.

Michaell · August 2014

@arexree said:
Hi Michaell / kyfdx,

I finally signed a deal on a 2014 328xi (black sapphire metallic/beige interior). I just want to thank you guys for all your help over the past couple months as I would not have properly navigated through the leasing process without your help and expertise. I may have been able to get a few dollars off the final monthly payment but wanted to get something signed before labor day.

Here's my deal for a 2014 328xi (10k miles / 36 month) with cold weather, premium, and navigation packages:

MSRP: 47,000 / Sales Price: 42,000 / MF: 0.00081 (with 7 MSDs) / Residual: 64%

Total Monthly Payment: $414.22 / Amount Due as Signing: $1,912.69 (includes first month's payment, $725 acquisition fee, $684 doc/license/registration fee, and $89.47 taxes on fees)

I maybe should have rolled the acq. fee into the monthly but forgot to mention that, and I'm probably going to opt out of the lease protection warranty per kyfdx's recommendation. Anyways, I'm pretty happy with the deal with 6.3% discount from MSRP + incentives on the selling price.

Again, thanks for everything.

Excellent deal! Glad we could be of help.

wheelson8 · August 2014

can someone tell me the residual and money factor for a 2014 328xi. 36 months at 12k miles? any rebates or incentives offered in August? Thanks

lrr2 · August 2014

Can I get your thoughts on the deal below -

2014 red 328xi ex-loaner with the nav MSRP $44,275 ($43,350 +$925 Acq)

Selling Price $39,173 with approx. 4243 miles on it
MF .00160
Residual 61% or $26259
Acq Fee $925
Other Fees due at signing, money due at signing $2,573 (includes 1st payment $474.97, $1700 down , $293.50 doc and title fee & $104.75 tax on the money down).

$529/mo with $804 due at signing or
$475/mo with $2574 due at signing.
This is 15,000 miles/year and 36 month lease

aitrus03 · August 2014

Thanks for getting back to me Michael. Thoughts on this deal?

Michaell · August 2014

@wheelson8 said:
can someone tell me the residual and money factor for a 2014 328xi. 36 months at 12k miles? any rebates or incentives offered in August? Thanks

.00130 and 63%. $2000 build out cash this month.

Michaell · August 2014

@lrr2 said:
Can I get your thoughts on the deal below -

2014 red 328xi ex-loaner with the nav MSRP $44,275 ($43,350 +$925 Acq)

Selling Price $39,173 with approx. 4243 miles on it

MF .00160

Residual 61% or $26259

Acq Fee $925

Other Fees due at signing, money due at signing $2,573 (includes 1st payment $474.97, $1700 down , $293.50 doc and title fee & $104.75 tax on the money down).

$529/mo with $804 due at signing or
$475/mo with $2574 due at signing.
This is 15,000 miles/year and 36 month lease

Base MF is .00130, so the dealer is marking that up on you.

Using the $43,350 MSRP and $39,173 selling price with 61% and .00160, I get a pre-tax payment of $458.58. If I reduce the MF to the base of .00130, the payment drops to $438.90.

Both of these are with $0 cap cost reduction - only up front out of pocket costs are first payment, doc and title fee and acq fee.

lrr2 · August 2014

Thanks. I am just wondering about the selling price considering there is $2000 build out cash and 4500 miles on the car.

Michaell · August 2014

@lrr2 said:
Thanks. I am just wondering about the selling price considering there is $2000 build out cash and 4500 miles on the car.

The miles will affect the residual as well as the selling price. Usually, BMW charges $.20-.30/mile for leases on demos.

Use the shopping tools at the top of the page to determine the target selling price and incentives available.

2014 BMW 3-Series Lease Questions

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