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BMW X3 Lease Questions



  • kp22kp22 Posts: 20
    Your sales tax also seems way too high.
  • sgdgolfsgdgolf Posts: 1
    I just got an X3. MSRP $43,490, Sale Pice $40,950 plus $625 Acq. fee and $600 security deposit for the lease. 24 mos. 15k per year, 24 payment of $584 including tax. MF was .00215 with 75% rv. I think the sale price should come to about $1,000 over invoice. Dealer never mentioned Maco or training fee, so it must have been included in the sale price already. In our area (SoCal) dealers have tons of X3s on the lot and it is towards the end of the model year, so they need to be more flexible.
  • newq7newq7 Posts: 21

    Our factory ordered X3 has arrived at the dealership. We were approved for a lease at time of order. I've been told that if lease rates drop by closing, we will be entitled to the lower rate. When will rates be available(or what are) the rates for July 2007?

    Many thanks.
  • duanemanduaneman Posts: 8
    BMWFS was offering a reduced rate for returning BMWFS customers for June. I was quoted .0025 at signing in May when I ordered, and the money factor dropped to .0019 in June when I received delivery. They indeed did honor the reduced MF rate. The base rate is .0015, however dealers are allowed to mark it up another .0004. This rate is without a security deposit and saved me over $40 per month on my paymment. Ask your Customer Advisor about it and see if they will be offering this in July as well.
  • pmeswanipmeswani Posts: 11
    kyfdx -

    do you have a sense of what the new numbers are for the X3?

    I'm interested in an Automatic with Premium and Climate package, and only basic inception fees at signing.

    Term: 24/36 months
    Miles: 10k/year
    MF: ?
    Residual: ?

    Thanks very much.
  • newq7newq7 Posts: 21

    I'm not a returning BMW customer... do you know what the July money factor is for first time BMW purchasers?


  • kyfdxkyfdx Posts: 64,743
    .00215 is the base rate... .0015 for current BMWFS customers.

    Residuals are 78% and 68%..

    All of this is unchanged from last month.


    Prices Paid, Lease Questions, SUVs

  • aephemeaepheme Posts: 48
    BMW's factors are easy -- they're updated every month at

    For the X3 3.0si 4WD:

    24mos,10k: Residual of 78%, MF=.00215
    36mos,10k: Residual of 68%, MF=.00215

    For 12k, subtract 1% from the Residual.
    For 15k, subtract 3% from the Resiudal.

    The Residual for 24mos is excellent! MF, not so much. Apparently, there's a discount on the MF if you're a current BMW customer.

    I'm in the market for a small SUV, and the residual here makes me want to go check out an X3 this weekend...
  • pmeswanipmeswani Posts: 11
    Thanks so much. I plan to go to some dealers in NJ today to compare. Will keep this board posted.
  • pmeswanipmeswani Posts: 11
    Just put a deposit down on an X3.

    2007 X3
    MSRP: 42,325 includes Auto, Premium, Heated Seats and Steering Wheel, privacy glass
    Selling Price: $40,105
    Residual: 78%
    MF: .00215
    Term: 24 month/12k per year
    Payment: $496 (includes tax)
    ~$2100 basic inception fees due at signing (first month, $500 SD, reg fees, and acquisition)

    Sound like a decent deal? By my calculations, I'm about 12 over, but I still think it's not too bad.
  • I was thrown off by the Acquisition Fee of $625. Dealer told me that this figure was non-negotiable from BMW Financial Services and couldn't be removed. Can anyone shed further light on this? I can still back out of this deal.

    36 months/15K mi/yr
    2007 X3 3.0si SAV
    205 Steptronic auto trans.
    A35 Monaco Blue Metallic Paint
    LUAD Gray Nevada Leather
    ZPP Premium Pkg
    761 Privacy Glass

    MSRP + Dest. Chg. = 42150
    Invoice + Dest. Chg. = 38805
    My Price + Dest. Chg. = 39599 ($794 over invoice)
    Acq. Fee = 625
    Adj. Cap Cost = 40224

    Residual = 65%
    Base Money Factor =.00215
    Discounted MF* =.00166

    *Discount MF applies when you make 7 add'l security deposits, which you get back at the end of lease term, for a total of 8 security deposits.

    Sec. Dep. ($500 x 8) = 4000
    FL Title/License Fees = 369

    Base Monthly Payment = 468
    with FL 6% tax = $499/month total payment

    36 months @ 15K miles/year
  • aephemeaepheme Posts: 48

    The acquisition fee is standard -- the money goes to BMWFS, I believe. $625 is the base fee, but dealerships are allowed to mark it up to $825. You've got it as low as it can get.

    Also... I was curious about the discounted MF with security deposits (and if it's really a good deal or not). For those who are interested, I went ahead and calculated the NPV of the two lease options:

    With Security Deposits:
    1. Monthly Payment: $499
    2. NPV (r=0%): $18,333
    3. NPV (r=12%): $16,611
    4. NPV (r=20%): $15,592

    Without Security Deposits:
    1. Monthly Payment: $534
    2. NPV (r=0%): $19,603
    3. NPV (r=12%): $16,616
    4. NPV (r=20%): $14,985

    What do those numbers mean? It means... if your money would otherwise sit in a 0% checking account, you're saving almost $1200. If it would be making 12% in the S&P500, you're breaking even. If it would be making 20% in the Russell2000, you'd be losing about $600.

    Interesting. Probably a solid deal. Essentially, a zero-risk return of 12%. That's a good deal.
  • Thanks, aepheme! Interesting analysis. I never thought of it that way. My hunch is that the S&P won't return 12% per year over the next 36 months, so making 7 extra security deposit payments seems to be the way to go. I understand if you are a returning BMW customer, you may qualify for an even lower discounted MF of .00151, based on a base MF currently offered at .00251.

    I also learned that finance guys use a "magic number" to determine the interest rate of the MF. Basically, take the MF number and multiply by 2400. So the base MF of .00251 x 2400 = 6.02%. The discounted MF for 7 extra sec deps is .00161 x 2400 = 3.8%. On .00151 it's 3.62%.
  • kyfdxkyfdx Posts: 64,743
    Also.. that zero-risk 12% return is "after-tax", as it directly reduces your lease payment... If you make 12% in a taxable account, your return is likely closer to 8%..


    Prices Paid, Lease Questions, SUVs

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi kp22. Here is BMW's latest lease program for the truck that you are interested in. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW X3 with 10,000 miles per year are .00215 and 68%, respectively.

    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi minote. The dealer invoice price of the X3 that you described is $39,535. A selling price of $500 over dealer invoice, or slightly over the $40,000 that you mentioned would be a very good deal. Shoot for that and see what happens. You should be able to get a good idea of how much you will have to pay for this truck right now by visiting the following discussion: "BMW X3: Prices Paid & Buying Experience".

    Once you arrive at a selling price that you are comfortable with, make sure that the dealer that gives it to you calculates your X3's monthly payment using BMW Financial Services' current buy rate lease money factor and residual value of .00215 and 65% (for a 36 month lease with 15,000 miles per year). Using this lease program, I estimate that the zero down, pre-tax monthly payment for a lease of the truck that you described at $500 over invoice would be around $483.

    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ipip316. The money factor and residual value that you were quoted for the X3 that you are interested in are right in line with BMW Financial Services' current program for it. This is a good thing because it means that the dealer that you are working with is not trying to mark-up BMW FS' buy rate like BMW dealers are notorious for doing.

    Now let's take a look at the selling price that you were quoted. The dealer invoice price for the model that you described is $38,535. That puts the selling price that you were quoted at just over $1,000 over invoice. That isn't a bad price for a lease of this model using the buy rate lease money factor. Still, it wouldn't hurt to stop by the following discussion to see how much other community members have paid for similar models lately: "BMW X3: Prices Paid & Buying Experience".

    In your post you mentioned that you didn't know what the acquisition fee is. All banks that lease vehicles charge an acquisition fee and individual dealers do not have the authority to waive it. BMW Financial Services' base acquisition for is $625, which is right in line with the fee that you were quoted. This means that the dealer you are working with is being very straightforward with you because BMW dealers are notorious for marking up acquisition fees by a couple hundred dollars.

    Prices Paid Forum
  • nyccarguynyccarguy Stamford, CTPosts: 11,327
    So my search to replace my wife's 2000 Mazda Protege ES (88,000 miles) began about a few weeks ago. We've outgrown the car as we now have a happy, healthy, & beautiful, 9 1/2 month old baby boy. She hit a pothole (must have been a landmine) and blew out 2 tires (OK, it happens).

    The next day she goes to go to work and the car is dead (OK, maybe they left the door open while they were working on the car at the tire place). AAA comes and gives her a jump. The AAA guy says the battery is deader than dead and she shouldn't turn on the AC or radio, just go and get that battery replaced right now (Its possible, the battery is 4 years old.

    She goes to sears to get an new battery and they guy tells her that the Alternartor isn't charging and the car is running on pure battery power.

    She goes from sears to a trusted mechanic who tells her the alternator is shot. Not a problem as she has an extended warranty that covered the car until 7/13/07. A new alternator set me back only $50 (hey, at 7 years the alternator should be replaced.

    A few weeks go by without a hiccup and my wife calls me at work and tells me her car isn't feeling good. I drive it and it keeps hesitating on the highway between 3rd & 4th gears.

    We bring it to the Mazda dealer. He tells me they can't road test the car to see if there is a transmission problem because the timing belt tensioner is loose and must be replaced. The extended warranty company won't pay for a new tensioner unless a compression test is performed. They want me to pay for everything in advance and then IF the car passes a compression test, they'll pay for the tensioner (well over $500).

    That's when I decide they are going to drag their feet and fight me until the warranty is up so I decide to throw the towel in and get my wife a new car.

    First I looked at an '07 Accord EX-L V6. I liked it, she didn't. She said there are too many of them on the road and too many old people in our condo complex drive and Accord. The 3 year lease on an '07 (with a new body style coming out soon) were almost too good to pass up.

    Then we checked out the CR-V EX-L NAVI. She liked it because of the amount of interior space, I didn't because I felt like I was sitting on a toilet and with the AC running there was a distinct lack of power.

    I saw an ad on the VW website for a cheap lease on a Passat Wagon. OK, this thing really isn't bad looking and leasing a VW means I don't have to worry about it. We emailed a close dealer who gave me all pricing in her reply including residual, sticker price, selling price, & .00006 money factor (yes that is 4 ZEROS). It was Saturday and she told me the rates were changing on Monday. Well, the lease rate changed from .42% to 2.4% which is still cheap but made the payment jump $44 per month due to VWs crummy residual value. Suddenly the Passat Wagon that we drove and both loved was too expensive (at $400 per month it was a decent deal, at $445 it was expensive). We leave the dealership almost heartbroken.

    While all this is going on, I'm negotiating a lease for my Dad on a new '07 X5 3.0si as the lease on his current '04 X5 3.0iA is set to expire. I made a great deal for $1000 over invoice with base mf and acq rates on a 30 month, 50,000 mile lease.

    After he faxed all the paperwork in, the salesman at Wide World of Cars in Spring Vally, NY calls my Dad at work to get a deposit so he can go ahead an order a truck for him.

    My Dad tells the guy: "Listen, I'm buying this X5 from you for August delivery and the lease is up on my wife's '05 530i at the end of December. My son is interested in an X3, call him here at work tomorrow and make him an offer he can't refuse.

    So we found a lightly optioned (Metallic Paint, Heated Seats, Privacy Glass, & 18" wheels) 2007 X3 3.0si. $471 per month with a $0 Cap Cost reduction including tax for a 36 month/15,000 mile per year lease with only first month, security, DMV fee, & bank fee due at signing.

    Sorry for the long post, but after being a HUGE BMW fan for many years, I'm finally going to have one to call my own (as long as my wife isn't using it)!

    2001 Prelude Type SH, 2011 Pilot EX-L 4WD, 2015 Infiniti G37x Q40 AWD

  • aephemeaepheme Posts: 48

    What a saga! Glad your wife is finally in a good car. :) How much over invoice did you pay for the X3 (and you Dad pay for the X5)?

  • kbetkbet Posts: 1
    I am probably going to lease an x3 on Monday, and I need to know what type of payments to expect to pay with 0 down and a 36 mo. lease in Houston, TX. This is my first lease. Please offer any info. you can.
  • nyccarguynyccarguy Stamford, CTPosts: 11,327
    We got the X5 for $1000 over invoice which is a very good price considering the car has been out for less than a year and is selling pretty well.

    I'm not entirely sure how much over invoice the X3 is (I'll let you know when I pick the truck up).

    2001 Prelude Type SH, 2011 Pilot EX-L 4WD, 2015 Infiniti G37x Q40 AWD

  • texgastexgas Posts: 7
    If you can't get good deals in Houston, I suggest checking out Garlyn-Sheldon (not 100% sure the spelling) BMW in Bryan-College Station. It's 80 miles from Houston. They are smaller and simpler and would do deals that Houston would not. Also, it seems like the dealersips North of town have less customers and are more willing to give more discounts. Good luck
  • sshhermansshherman Posts: 2
    Thank you for hosting this forum; it has been a help in my current negotiations however I still need some guidance.

    I am talking to my dealer about leasing a x-3 for my wife. I never leased a car before and am new to the terms "money factor", residual value, etc.

    The car we are looking at has an MSRP of just over $48,000 (sorry, forgot to get the exact $ amount. The salesman prepared a proposal and printed out a "lease review" for me.

    I am trying to put numbers together so I can do some of the calculations to see what kind of deal I am getting from my dealer. My deal today is as follows:

    MSRP: 48,000 +
    from the lease review sheet:

    Gross Cap Cost: 47,690
    Sales Tax (7% in NJ): 1,697.07
    Cap Reduction: 2,500
    For a net cap cost of 46,887

    I can see how the above adds up but am not sure where the Gross Cap cost comes from or what the sales tax is computed on.

    Then comes the 2nd part:
    Adj Residual: 26,960.00
    Total Term Depreciation: 19,927.01

    Monthly Depreciation 553.53
    Mo. Lease Charge: 84.19
    For a base payment of: 637.72

    I guess here it is the residual I don't know where it came from; I assume the depreciation is a "plug" that when added to the residual equals the net cap cost above.

    That said the lease is based on a 65% residual value on the vehicle at 15,000 mi/year, however we are basing it on a 25,000 per year lease. I guess this is where my problem is, trying to get from the 15 K lease to a 25K lease.

    I also, per your forum, suggested puting 7 more security deposits (@750 each)down, so the money factor is somewhat less than the .00215 which brought the monthly payment down from 713 +/- to the 637.72.

    I am just trying to find the "skeletons in the closet" so I may negotiate smartly with the dealer. If you see anything out of line would you kindly let me know.

    Thanks for your help
  • minoteminote Posts: 13
    Please give me your thoughts, thanks!

    I sent an email to my local dealership re: 07 X3 with metallic exterior, premium package, xenon adaptive headlights, privacy glass, steptronic engine and lojack (don't want it but that's the package) for $42,950 MSRP.

    Here's my numbers:
    $42,950 MSRP
    $39,735 Cap cost
    36mo/15K lease
    65% residual ($27,917.50)
    Money factor .00215 (base rate)
    Payment = $473.72/mo. + CA sales tax (approx. $510/mo. total) with BMWFS
    Due at inception: 1st payment ($510), security deposit ($550), title/license/registration fees (approx. $200)
    Total due at signing approx. $1260.00

    Here's the reply from the dealership:
    The invoice of the X3 that you inquired on is actually $40,015 (I am happy to show you the invoice when you come in) and your selling price is $40,500. If we roll the bank fee to lower your drive offs your payment goes up. So here is what I have:

    36 month 15k miles per year $535.15 + tax $576.62 with $576.62 drive offs.

    I said the numbers are too far apart with my numbers and was hoping she would respond with numbers closer to mine. But she didn't want to get my business.

    Is my numbers too low for the car with all the options I wanted? I was hoping to make a lease by end of July, but looks like it won't happen. :confuse:

  • pjo1966pjo1966 Posts: 140
    A local dealer in LA told a friend that they were going to be having great deals on X3s next month. Is that all BMW dealers, or does this sound like a special that the dealer is doing on their own?
  • minoteminote Posts: 13
    Hi pjo1966, would you let me know which dealer in LA that will be having a great deals on X3s? Thanks, minote.
  • minoteminote Posts: 13
    A local dealership in San Diego quoted me these numbers for 07 X3 w/ metallic exterior color, heated seat, premium package, xenon adaptive headlight, privacy glass:

    MSRP $43,450
    Selling price $40,970 ($500 above dealer price)
    for 36m/15K lease, she requested $982.78 down and $598.54 monthly.
    By using lease calculator with 65% residual value & .00215 MF & 7.75% CA sales tax, the total purchase or their net cap cost is $43,379.

    I think that is too high and the salesperson is really rude when I asked if she could give me better numbers, or closer to the one that I asked, which I like to have $530/m at the most with no down.

    Would anybody give me recommendations on any local San Diego or LA area dealerships that are willing to give a good deal on an 07 X3?
    Thank you so much. :confuse:
  • pjo1966pjo1966 Posts: 140
    It was Nick Alexander. Personally I've had nothing but bad experiences with them. I might give them another chance as they fired the last salesman I dealt with.
  • tony411latony411la Posts: 14
    Century West in Los Angeles, quoted me the following. Anyone, please let me know what you think.

    '07 X3 Metallic; Premium Package; 18" wheels; Xenon; Heated Seats; Privacy glass & Navigation.

    MSRP: $45750
    Sale Price: $43150
    $1777.13 drive off (includes first payment, reg, and acquistion fee of $825)
    Residual 78%
    MF: 0.0017
    Monthly: $481.78 including taxes

    He said I needed to come in today or I will lose the rate because they will change next month.

    Also, he's telling me his invoice price is 42,645 but according to consumer reports car buying site, it's closer to 39,925. When I questioned him on it he says consumer reports is wrong and so is

    I've tried to get him to come down on the sale price but he won't budge.

    This was all done over the phone but I plan on paying him a visit this evening about an hour before closing.
  • I am looking for the same car I have contacted them through Costco auto program and they offered me a price around $50 higher with $3,600 down. Can you email me if it is for 12k miles and 24 months? My email is xxgrzesx google com

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