BMW X3 Lease Questions

Karen_SKaren_S Member Posts: 5,092
Post your X3 lease questions and experiences here.
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi everyone. Please use the following discussion to post any questions that you have about leasing a BMW X3. Thanks.

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  • timmbojtimmboj Member Posts: 123
    The perfect addition to the X3 line of forums! Good idea. Thanks Car_Man!
  • brabra Member Posts: 14
    Need quick opinions: I just put down a security deposit for a 2005 X3 3.0i Premium, sport...etc....only things it doesn't have are Nav, and parking control.
    MSRP 46,695...money factor .0014..... Trading in a 1997 328i w/123.5K miles...the gave me a trade in of $5,800.. Lease terms.....no money down....$454/month.....w/ 17K miles/yr.....39months.. I need a immediate opinions on this deal.. thank you...
  • brabra Member Posts: 14
    I'm signing the lease tomorrow morning 9/1/05 at 9:30am CT .....i've put down a $1000 deposit and I'm now concerned that I may have screwed myself. I feel that I can go into the negotiation and call them out on the money factor. 've read some postings and it seems that I should have a money factor of .0010 as opposed to .0014? I bumped up the miles due to the fact that I'm a traveling sales person..
    Your thoughts?????
  • kyfdxkyfdx Moderator Posts: 187,156
    Does that include taxes?

    Are they writing you a check for the 328i? Or, are they keeping all of it for downpayment and inception fees?

    regards,
    kyfdx

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  • brabra Member Posts: 14
    It does include tax and yes they are using the car as a downpayment to buy down or Cap Cost Reduction. When I run this deal through a lease calc., I continue to pull monthly lease paymt. in the range of $425/month. Is the addtnl. mileage (i.e. 17K...extra 2K/yr) bumping up the paymt?
  • brabra Member Posts: 14
    Addntl info: So the deal is that I will trade in my 328i (123,000m) and in need of repair for $5,800. No money will be exchanged at time of transaction...$454.39 from the $5,800 will go toward the first paymt.. MSRP for the 2005 X3 3.0i w/all options except Nav.& backup assist is $44,695. Negotiated price is $43,570....Lease: 39mnths 60% residual 17K miles/yr for $454.39.
    When I punch in those #'s I'm still getting a paymt. around $425? Your thoughts...
  • brabra Member Posts: 14
    Let me add a couple other pieces of info on this deal: My trade in is a 97' 328i...Kelley Blue Book trade in shows: $4,700...BMW is "giving" me $5,800. The money factor used in this "Aug. 31st" transaction w/pickup today is .0014. Do the #'s shown above in the 2previous messages correspond to a good deal?
    Thx..
  • bdr127bdr127 Member Posts: 950
    A couple things..... Yes, the mileage is definitely adding to the price (BMW adds 15 cents per mile if you buy at the beginning of the lease, 20 cents at the end). 3000 extra miles at 0.15 = $450.

    Another thing to factor in is fees (bank fee, dealer admin fees, etc).... Are those included in the price? Those could add $1000 (or more) to your total price.
  • brabra Member Posts: 14
    Thank you brd127...
    Do you think this is a legit deal? Should I back out this morning? I'm not comfortable w/it right now...

    Thx..Brad
  • brabra Member Posts: 14
    brd127...you are correct there are about $1000 in various fee's...bank fee's, etc.. I'm just not totally comfortable w/the fact I'm trading in my vehicle and still hvae a pmt. of $454.. Although I must keep into consideration that it has an MSRP of $45.7K....your thoughs..

    Thx again,
    B
  • kyfdxkyfdx Moderator Posts: 187,156
    Agreed... the mileage is probably adding $1000 to the cap cost...

    It is hard to know the exact breakout, and staying away from the recommendation that you not put that amount of money down on a lease..... I would insist on them using the base rate of .0010.... That alone would drop the payment by around $30/mo...

    If your trade-in of $5800 encompasses all of your upfront charges.. including first payment, security, etc... Then getting the base rate would make it a decent deal... at least from the information we have..

    regards,
    kyfdx

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  • brabra Member Posts: 14
    kyfdx.... thx...yes the $5,800 includes all upfront charges...i walk in w/the car...trade it in and leave w/a car...no cash outlay. So you feel that the Aug. 05' money factor should be .0010? If so, I'll push that fact and I could also have them drop the mileage to 16K/yr....would that drop the payment another approx. $20/month?

    Thx. B
  • kyfdxkyfdx Moderator Posts: 187,156
    I am sure of the money factor.. Just dropping that to .0010 will save $30/mo.. I'm not sure of the mileage hit.. But dropping 1K miles per year should save another $13-$14 per month..

    Don't count on them agreeing to this... Dealers that mark up the money factor like to stick to it... But, it is getting late in the '05 model year, and that is a loaded up car... Hopefully, they'll be motivated to move it...

    regards,
    kyfdx

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  • brabra Member Posts: 14
    KYFDX,
    even at .0014 is this a reasonable deal...considering that it's nearly max'ed w/options @ 17,000miles/[email protected] $454/month for 39mnths. If it's way out of the ball park then i'll walk. Other non BWM (i.e. VM, Land Rover) dealers are only going to give me approx. $2,500 for the trade in. The trade in is probably only worth $4,000 due to the fact I need to drop about 2K in A/C compressor, bearings, and brakes all around. Your thoughts on the walk or accept on this current deal....while most likely having to stick to the .0014. I have about 15min. b/f I need to head up there. I greatly appreciate your insight. Regards, B
  • kyfdxkyfdx Moderator Posts: 187,156
    Well... your upfront costs would normally run about $1800...

    So, you are putting $4000 down... Add that back into the lease, and your payment is about $560/mo.. I guess that is not a bad deal on a $47K car... with a 17K/yr mileage allowance...

    And, if you feel like you are coming out ahead on your trade-in, and this is the car you want, you aren't being taken advantage of, I don't think...

    I'd give it a try.. ask for the base rate... ask for a $500 check back from your trade to make the next payment... beg for floomats... lol..

    If it doesn't work, take it as is.... Life is short...

    regards,
    kyfdx

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  • brabra Member Posts: 14
    KYFDX,
    ha...good stuff.. FYI...i did get the floormats...now i'm going to ask for an internal bike rack!!! I negotiated over a two week time frame and this deal has come down over $125/month from initial until now. I feel fairly comfortable...and I do agree w/you....I'm young and I only live once. This is my first lease and I'm now much wiser...that's for sure! I also agree It won't hurt to question the rate of .0014.

    Thank you very much for the insight! I'm off to p/u my new vehicle..

    Have a great weekend!
    B
  • brabra Member Posts: 14
    KYFDX,
    well I ended up signing the lease, but I did one last run through on the numbers w/the deals and I backed off the mileage to 15K and ended up getting a $430/month paymt. w/the trade in. First pmt and security deposit of $450 will be taken car off w/the trade in. I couldn't get them to back off the .0014...oh well can't win them all. All in all I feel pretty comfortable w/the deal.
    Once again...thx for providing your expect opinion.

    B
  • kyfdxkyfdx Moderator Posts: 187,156
    That sounds like a really nice vehicle...

    One more note.... about 9-12 months before lease end, you can purchase additional miles from BMWFS for $0.16 each.. At that time, you might have a good idea of what you need, and won't overpay for miles that you won't use...

    Alternatively.... keep that mileage down, and you'll stay in warranty for the entire lease term.

    regards,
    kyfdx

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  • sponge_worthysponge_worthy Member Posts: 27
    Congrats to all who got in on it....
  • timmbojtimmboj Member Posts: 123
    Updated website today shows BMW offering X3's at $349 for 36 Months. This is better, right?

    Does anyone know if the MFs and residuals stay the same?
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi bra. The lease money factor that you were quoted to lease this truck is definitely too high. BMW Financial Services' buy rate lease money factor for September for the 2005 X3 3.0 is only .00075 with the payment of a security deposit and acquisition fee. It looks to me as though the dealer that you are working with may be trying to mark-up your vehicle's base lease money factor to add additional back-end profit to your deal.

    As far as your trade goes, you would be much better off having the dealer that you are working with cut you a check for it rather than using the proceeds from it as a capitalized cost reduction for your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your X3 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    You really need to find out this truck's full MSRP and selling price. These numbers will show you how much of a discount you are being given on it and enable you, or myself, to calculate a sample lease payment on it.

    Car_man
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    You're right sponge_worthy. BMW is no longer offering 39 month leases on the 2005 X3 in September. Its 36 month lease program for this model is still fairly attractive though.

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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    I can give you an idea of what BMW's new lease program for the 2005 X3 is like, timmboj, if you let me know how long you want to lease it for and how many miles per year you need to be able to drive it.

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  • timmbojtimmboj Member Posts: 123
    Thanks. 36 Months with 15K miles per year.
  • drtraveldrtravel Member Posts: 395
    I went ot the bmwusa web site and tried to calculate the details of their lease special (why don't they ever publish the money factor?). Here's how I derived the $349 figure:

    MSRP = $36,995
    Sales price = $33,420 (you pay $2,500 upfront plus they discount the car $1,075)
    Residual = 63% ($36,995 X 0.63 = $23,307)
    Money factor = 0.0012 (came from the X5 leasing forum)

    Payment is $348.99 plus tax

    The residual value is given in the ad (36 mos 10K miles) - I don't know what the money factor is for September but it was 0.00075 in August. Of course BMW dealers are known for bumping up their money factors so I would wait until I know what the official money factor is.
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    No problem timmboj. BMW Financial Services' current buy rate lease money factor and residual value for a 3 year, 15,000 miles per lease of a 2005 X3 3.0 are .00075 and 60%, respectively.

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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi drtravel. Manufacturers like BMW do not publish information about vehicles' lease money factors because they allow their dealers to mark-up their base money factors to add additional back-end profit to deals. Of course, it is a little harder for dealers to do this on a vehicle that has an advertised lease payment available on it.

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  • someguy1someguy1 Member Posts: 42
    Car_Man

    I notice the BMW site showing the new X3's with the body color. My question is, do the current lease rates apply to that model?

    Thanks
    KA
  • kyfdxkyfdx Moderator Posts: 187,156
    The body color bumpers are on '06 models...

    For that model, the residual for 36mo/45K is 60%, but the base money factor is .0028

    regards,
    kyfdx
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  • someguy1someguy1 Member Posts: 42
    kyfdx,

    Thanks for the info. You always know your stuff, especially with BMW.

    1 more question. I know the body color bumbers are different on the '06 X3's. Can you tell me what other differences there are between the 05 and 06?

    Thanks,
    KA
  • timmbojtimmboj Member Posts: 123
    Perfect! Thanks!
  • timmbojtimmboj Member Posts: 123
    You read my mind. Thanks for the numbers on the 2006.
  • drtraveldrtravel Member Posts: 395
    MSRP of $36,995 (invoice is $33,910)
    Cap cost of $34,315 ($2,500 down + $180 off)
    63% residual
    0.00075 money factor
    payment is $349 + tax

    dealer is still making $2,905 over invoice - seems high.
  • kyfdxkyfdx Moderator Posts: 187,156
    Usually, the BMW advertised lease specials assume a $1000 discount from MSRP, in addition to any dealer incentives..

    I haven't reverse-engineered the payment from the ad, but I do notice that the cap cost includes the acquisition fee of $625, so the discount you calculated would be at least $625 more.

    regards,
    kyfdx
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hey someguy1. BMW is not currently providing any sort of lease support on the 2006 X3. If you were to lease any '06 X3, regardless of color, through BMW FS right now you would have to use its standard lease money factor of .00280.

    Car_man
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  • CarMan@Edmunds[email protected] Member Posts: 38,514
    You're welcome timmboj.

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  • jetsfan1jetsfan1 Member Posts: 5
    I have had my X3 for about 15 months and also have a gas guzzling (12 MPG) Yukon XL. I would like to sell the Yukon (I own it), terminate my X3 lease and upgrade to X5 and lease a 330i (better gas mileage, fun to drive, etc).

    We would keep the X3 but it's too small - with the Yukon XL it was fine, but if we drop the Yukon in favor of a 330i the X3 wouldn't cut it for us.

    I am waiting for the dealer to come back to me with a proposal - I suggested terminating the X3 lease, upgrading to an X5 lease and leasing a 330i. He said someting about $5,000 deal on 2005 X5s that could make my lease payment and an X5 payment "comparable." I am hopeful that the 330i may incent the dealer to work with us - no too much pain on the X3/X5 swap and new 330i lease.

    Any thoughts/suggestions would be appreciate3d. Thanks!
  • bdr127bdr127 Member Posts: 950
    We would keep the X3 but it's too small - with the Yukon XL it was fine, but if we drop the Yukon in favor of a 330i the X3 wouldn't cut it for us.

    The X3 actually has slightly more cargo space than the X5, believe it or not....
  • mvislegirlmvislegirl Member Posts: 7
    I think I'm being worked over, but I can't tell. Lease terms are: $37,519 for an '05 X3 3.0 ($38,795 MSRP), $448 down payment ($448 + $400 first months pmnt + $263.35 lic & reg + $63.25 tax on cap (??) + $825 aquisition fee = $2,,000 up front) plus my car, which I owe $12,700 on & they are giving me $14K (Ford Escape - Edmunds $13,984, KBB $15,150). That's equals another $1,300 toward the car. Money factor is .00110, 36 months, 10K miles/year, $24,441 residual (63%) and $400/month. I'm in Mass (5% tax), if that makes any difference. I've never leased, and as a woman, I'm afraid I'm getting screwed somewhere. The #'s add up OK, but are they fair? I live on an island and haven't even driven the car yet. Gave them the $2K to hold the car before I test drive it. Signed tentative P & S thing (sorry I did that). Please help!! Thanks
  • kyfdxkyfdx Moderator Posts: 187,156
    1) You are correct... all of the numbers add up... You are also correct... This isn't a very good deal..

    2) $1200 discount from MSRP... Not good at this time of year on an '05.. Most reported deals on the X3 Prices Paid board range from $2000-$3000 off MSRP.

    3) Money factor .00110 Acquisition fee $825. Both of these numbers are marked up for extra profit.. The base MF without a security deposit is .0090 and the base acq. fee is $625.

    4) The tax is on the $448 cap cost reduction and the $825 acquisition fee... This is how every state does it... Anything paid upfront that reduces your taxable payment is taxed.. I'm actually surprised they aren't taxing the equity in your trade-in, that you are putting towards the lease..

    5) The wild card in all of this? Your trade.. Even though they are agreeing to give you Edmunds trade-in value, your car may not be worth that, and they are jacking up all of the other costs to cover for a possible loss on your trade.. (Or, they may just be trying to get all they can... ;) ).

    regards,
    kyfdx
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  • kyfdxkyfdx Moderator Posts: 187,156
    I'd want the deal to look like this....

    $38,795 MSRP
    $37,000 Selling price (very reasonable.. fair for both)
    $37,625 Cap cost (selling price + $625 acquisition fee)
    3yr/30K lease
    Residual 63%
    MF .00075
    Payment $413/mo.+ 5% tax = $434/mo.

    Due at signing: 1st payment ($434) + security deposit ($450) + license/registration ($264) = $1148 total..

    If the offer for your Escape is "real", then that should cover the upfront money, with no further payment due from you....

    So, your trade with nothing out of pocket and $434/mo...

    regards,
    kyfdx

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  • mvislegirlmvislegirl Member Posts: 7
    Thanks so much for taking the time to look things over for me. I have already given them $2,000 to hold the car till I can get there on Wed. They faxed me something that said $2,000 + the trade, and $400/month which I signed. No other figures on there. Like a half-baked P & S. Am I tied to this deal because I signed that? How do I convince them to give me the $2,000 back (on my credit card)? Is $434 better in the long run than $400 without the up front costs? Thanks!
  • mvislegirlmvislegirl Member Posts: 7
    One more quick thing...they told me I wouldn't have to pay a security deposit at all. Is that due to my good credit rating or do they just waive it sometimes? Should I even mention it? Also, is the 10K miles/year fair, or should I ask for 12K?
  • kyfdxkyfdx Moderator Posts: 187,156
    1) The $434/mo without the $2K extra down and getting the $450 security deposit back at the end of the lease, is way better than $400/mo...

    2) You didn't get the security deposit waived because of your good credit.. you are paying for it.

    3) If you need 12K miles/year, that reduces the residual by 1% and will raise your payment approx. $11-$12 per month..

    4) If you want out of this deal, just call them up and say so.... If they won't give your deposit back, call up your credit card company and dispute the charges.. The chances of them keeping your deposit, if you haven't taken delivery of a car are about 1%...

    regards,
    kyfdx

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  • mvislegirlmvislegirl Member Posts: 7
    kyfdx,

    You have been so helpful, I can't even tell you! I'm so glad I stumbled on this forum. I'm calling BMW today & will let you know the outcome. Thanks for your help and your honesty! :)
  • bdr127bdr127 Member Posts: 950
    e more quick thing...they told me I wouldn't have to pay a security deposit at all. Is that due to my good credit rating or do they just waive it sometimes? Should I even mention it? Also, is the 10K miles/year fair, or should I ask for 12K?

    In order for BMW Financial Services to waive the security deposit, they need to mark up the MF by .00015.... Remember to take this into account when you talk to the dealer.
  • mvislegirlmvislegirl Member Posts: 7
    kyfdx...here's my bottom line, which I think is pretty good, thanks to you!

    I got a little cocky & asked for a $36,500 selling price, plus everything else you suggested. Here's what they came back with:

    $36,887 selling price
    $0 down and my car (which covers 1st payment, security deposit, & lic/reg fees
    $625 aquisition fee
    $450 security deposit
    .00075 money factor
    63% residual, 10K/year for 36 months
    They came up with $406.67/month + MA 5% tax of $20.33 = $427/month

    How did I do?
  • mvislegirlmvislegirl Member Posts: 7
    They had marked it up to .00110 without a security deposit, so I opted to give them the $450 refundable (we hope!) deposit for the better rate of .00075. Thanks!
  • kyfdxkyfdx Moderator Posts: 187,156
    Wow.... you don't need me... You ROCK!!

    regards,
    kyfdx
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