BMW X3 Lease Questions

kyfdx

What is the difference between the two? Or, is one just the rate from BWM and the other the rate after their markup? Does the dealer have the option of reducing/eliminating the markup on the "buy rate"? (i.e. is it a negotiation point).


You have it exactly.. the markup is optional.. and provides more profit to the dealer. It is negotiable..

Also, they all keep quoting me an acquisition fee of $825 (vs the $625 I've seen here)

Same thing as the money factor... also negotiable..

one dealer quoted a 60% residual on a 36mo/30K mile lease (even after I asked why it wasn't 63% as quote on the board.

60% is the residual for 3yr/45K... 63% is for 3yr/30K.. They have to use the residual provided by BMWFS.. Probably just a mistake or misstatement on his part.

Any input regarding how to get the dealer down to the "buy rate"

Tell them you won't consider any lease deal that doesn't use the base rate.. otherwise, you'll shop elsewhere. (of course, you have to be willing to do that).

Hope that helps,
kyfdx
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krumpitz

My experience is that http://www.leasewizard.com is a better route. Software is easier to use and they have real data to plug in like factors and residuals (in addition to ALG residuals). Just my opinion!!

timmboj

I tried to calculate a 2-year lease with 15K miles per year. I used a target $42K purchase price ($40K Invoice / $44K MSRP), 70% residual and .00125 MF. Are these figures correct kydfx? I'm coming up with well over $700 a month. Am I doing something wrong? Seems like it should be less. I'm trying to figure out a decent deal before walking into the only BMW dealership in my town.

urmahhero

I just came back from a dealership. It's a 2006 3.0i. It has Premium package, Navigation system, heated front seat, privacy windows, and come in the color silver. I didn't know any better but the guy based on the MSRP price during our negotiation and not what the selling price would be. He asked for $3250 down payment and monthly payment of $450 for 12K miles/year for 36 months(he came down from $518 monthly payment initially). I thought the final offer was a great deal but my brother thought otherwise. Just want to know if we gave up a great deal or it was wise that we walked away. Any immediate thought would be greatly appreciated. Thanks!

kyfdx

I think the residual is 71%..

With your numbers, I get $540/mo. plus tax.. with 1st payment, acquisition fee, security deposit and title/license fees due at signing...

regards,
kyfdx
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kyfdx

We'll need at least an MSRP to have any idea..

urmahhero

I have an offer that I want to run by you and need your expert advice.

Silver 2006 BMW X3 with Premium package, Privacy glass, and Navigation for $0 down for 12K/year for 36 months for $500/month including tax with just first, 625 bank fee, 385 mv and doc fees, 500 security up front. He also indicated that "he discounted the vehicle $2500 to arrive at 500, cannot go below that unless you put a cap reduction up front this is a $42,500.00+ vehicle, and includes Free Maintenance for 4 years or 50,000 miles. Residual is $26,400 at end; note that maintenance is included by only a few car manufacturers at this time".

jverg

I'm sitting/waiting on the following '06 X3 deal until we get the March data:

36 month lease
MSRP $39,168
SELL 36,645
Residual @ 62% 24,284
MF @ .00165
Bank/acquisition fee 825
No Security Deposit

Thanks for all your help!!!!

tch06

Hi Everybody,

First time BMW buyer here and looking at the '06 X3. I mentioned to the dealer here in San Fran. that I have my own business and he said that when we talk about the lease numbers he would factor in the BWM Business Discount. Does anyone have insight into BMW Business Discount? What is it? Or how can I find more information about it?

Thanks very much!

jjota

car_man "if you drive off in something that is in stock, they know that you won't back out of the deal like you can with an order."

having second thoughts about an order. gave 1k deposit for order, will these be reimbursed? how about changing the order for a different model, any penalties for changing? :confuse:

timmboj

BMW lease rates are posted here monthly. I understand this is the X3 lease forum, but does someone here know if their finance rates change month to month? Do the rates change with the length of the loan? And where can one find this information?

CarMan@Edmunds

Hi urmahhero. $2,500 below MSRP is a pretty good price for this truck. I believe that the model that you described has a spread of around $3,480 between its full MSRP and dealer invoice price. That puts the price that you were quoted at right around $1,000 over invoice. I would be happy to use BMW Financial Services' actual lease program to calculate what this truck's lease payment should be right now, but it would be helpful if you would provide me with the actual full MSRP (with the destination charge added in) of the truck that you are interested in.

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CarMan@Edmunds

Hey jverg. If you were to lease a 2006 BMW X3 through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00125 and 60%, respectively. The residual value for this model would be 2% higher for a lease with only 12,000 miles per year. If you opt to have your security deposit waived, it would increase the money factor for this term to .00140. As you can see, this is a little lower than the factor that you were quoted. It appears as though the dealer that you are working with may be marking up your truck's factor to add additional back-end profit to your deal. This sort of thing is completely legal and happens all the time, but usually can be avoided by consumers who know what their vehicle's buy rate should be. Also, this dealer is marking up BMW FS' base lease acquisition fee of $625 by $200. The selling price that you were quoted looks reasonable to me, but you should try to get the dealer to eliminate the money factor and acquisition fee mark-up.

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CarMan@Edmunds

Hi jjota. Was the deposit that you gave the dealer that ordered the vehicle for you supposed to be fully refundable? If so, that's a good start. It still doesn't mean that the dealer will give you your money back without a fight. Getting dealers to give money back is often like trying to squeeze water out of a rock...or is is blood from a stone...or a turnip...hmmmm. Anyhow, you get the idea. Having said this, if you still end up purchasing a vehicle from this dealer, you almost certainly will be able to get your money back unless you ordered an extremely unusual combination of options on your car that the dealer will have a tough time selling to anyone else.

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CarMan@Edmunds

Hi timmboj. BMW is not currently providing any sort of finance support on the 2006 X3. As a result, if you were to finance one through BMW Financial Services, you would have to use its standard finance rates. These rates often change monthly, but it doesn't really matter what they are right now because like most captive finance companies' standard rats, BMW Financial Services usually can be beaten fairly easily. It is in your best interest as a consumer to go to a local bank, credit union, or a bank that conducts business on-line and get pre-approved to finance the truck that you are interested in prior to discussing interest rates with any dealers. doing so will serve two purposes. One, it will give you an idea of what sort of interest rate you qualify for. And two, it often motivates dealers to try to beat the rate that you already have in hand.

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jverg

Thanks very much Car_man!!

If you have a moment, just a couple more questions:

First, does the dealer generate any profit leasing at the base buy rate???

Second, is it true that BMW Financial limits the dealer MF markup to .0004??

Thanks again for all your help with our questions!!

stevevey

My X3 just arrived at the Prep center yesterday:
It's Blue, w/ auto, premium package, cold weather package, heated steering wheel, premium stereo, sat radio prep, privacy glass, navigation & Xenons.

I'm paying only tax and 1st month and MV fees upfront.

3yr/30,000 miles

499/month with 27,953 buyout at lease end.

Does this sound like a good deal?

My car's MSRP was 44,370 and my dealer only came down about 1400 so my price is like 42, 970.

joefratt

I'm looking at a 2006 X3: Auto Trans, Heated front seats, Privacy Glass, and Metallic Paint are the only options. Dealer figured lease cost based on MSRP and $2500 down as 401.55/month. Tax and MV fees up front, no security deposit. I'm trying to figure out if this is a good deal, but I don't know the residual or other factors, so I wanted to see if someone could help me with these here. Is this a decent deal?

drshoegal

When do you have to pay the additional security deposits? If I choose to pay all nine, how is spaced out?

I'm from Canada and assuming your BMW leases are the same as ours...

thanks.

kyfdx

You pay the additional deposits at lease signing..

stevevey

So I get a call from BMW today, my X3 finally arrived.

But this call wasn't from my salesmen, it was some other person I'll call the "Middleman"

So after agreeing on a day I can pick-up my vehicle, I ask about adding the rest of the Sirius satellite raido into my X3, I ask how much much will it cost " I see the accesory itself on BMWUSA.com costs 325.00 so I realize there is tax and installation.. She "looks" up the price and goes... "$799" I said I'll call her back, since I had to get her my insurance info anyway.

So I call the service area IN THE DEALER SHE WORKS AT... and the girl goes "442.18 with tax and installation"

So when I call her back and tell this she goes.. There no way that includes installation, they have to take the whole raido out of the car and put the siruis thing behind it... I hate to lose the business but I can't even match that price.

So I go "that was YOUR service center !!!!"

Also, she wanted to charge me $150 for the cargo mat that the part dept want $70 plus tax... I'm sorry lady but I can't justify paying you $80 to walk 20 feet to the parts dept.

Then after i told her to forget all that I'll do it myself, she starts telling me how she thinks I should roll my taxes into the lease payment... She goes I can't tell you over the phone because you'll think I'm playing 3 card monty with you... " I 'm like lady, I 'm a CPA with a MBA in finance... Hit me !!!"

So I have to go there saturday and have her show me the new lease structure...

Sorry lady but I've calculated the lease with the taxes rolled in to the penny and if she tried to screw me but 1 penny a month aI'm telling them to forget the whole deal.

So back to my original question... WHO IS THIS MIDDLEMAN???

Has anyone else almost gotten scammed from a dealer after waiting 8 weeks for your car...

I was real excited but now I have a bad taste in mouth regarding this deal.

bdr127

IS your original salesperson still working there? The sales business has pretty high turnover rates.... Perhaps this is just another salesperson who was told to take over the previous salesperson's customers. :confuse:

stevevey

Yes, my original salesperson is still working there. I had to coordinate between my schedule and hers for the actual pick-up. She is in charge of the vehicle delivery, I found out this other person's title is "Business Manager" but I think it should be "Crook" for short.

Well, I can't wait to see what happens Saturday.

chmcmm

I saw an ad today in the local paper. 2006 X3 auto/AWD 36 months/10K miles per year for $399 month + taxes/tags with nothing down but a $400 security deposit. It doesn't list all the options or the MSRP so I emailed the dealer for more details. Even without all the details it seems like a pretty good offer. What do you think?

bdr127

Check all the details....

Does that price include tax, tags, bank acquisition fee, doc fee, etc? (You indictate "+ taxes/tags", so I presume not?) What is your state tax rate? Are you in Texas or Illinois? Usually those ads leave all that extra stuff out....

Interesting, though, that it says no money down other than a $400 deposit. Chances are that you'll also need to make the first month payment up front (as almost all leases require), so total out of pocket at delivery would be more like $800.

Regardless, this X3 probably has automatic transmission as its only option. I'd check to see if it even has a sunroof....

jverg

In California......

3 years, 12,000 miles

67%

rich1122

"If you were to lease a 2006 BMW X3 through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00125 and 60%, respectively."

Hi, this is pretty much the exact lease that I am interested in, does anyone know if waiting until April would be beneficial or am I better off leasing in March?

Thank You!

kyfdx

I don't know the exact details... but, BMW has just come out with a special lease on the X3.. Basically raising the residual by 5%..

I don't know if it is regional or not... But, in my local paper today, they were quoting the residual as 65% for 3yr/45K..

If I were contemplating an X3 lease, I wouldn't wait for a better deal..

regards,
kyfdx
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tominnva

I bought my X3 in the Washington DC area 10 days ago. They indicated that BMW finance had just increased the residual to 65% for 3yr/45K, but the money factor was .0017 rather than .00125. Just for comparison, the residual was 68% for 3yr/30K, and (I think) 67% for 3yr/36K.

Good luck with your ride! I'm really enjoying mine.

CarMan@Edmunds

You're very welcome, jverg. Dealers really don't make any profit by leasing vehicles to consumers at banks' buy rates. Some banks kick dealers a couple hundred dollars, like $100 or $200, but given the paperwork involved I would hardly consider that profit. Like most banks, BMW does place a cap on how much dealers can mark-up vehicles money factors. I don't remember how high BMW FS' cap is, probably .00040 to .00050. It doesn't really matter though because given the market for the X3 right now, you should not let the dealer that you are working with mark up your truck's money factor at all.

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diye

After reading the forum, I realized there can not be a better time to lease a X3. So I went shopping today.

My initial plan is:
(1). 2300 off MSRP;
(2). Get the 67% residua for 36 MO, 12k/year;
(3). Get 0.00125 money factor;
(4). Pay only $625 ( not $825 as dealers usually charge ) bank fee;

What I ended up getting is:
MSRP: $40995
Purchase Price: $39000
Residual: 39 MO, total 39k Miles at 67%! (instead of 36 MO)
Money Factor: 0.00155
Down Payment: $900
Bank Fee: $625
Security Deposit: $450
Monthly Payment: $372

The $372 monthly payment is very close to my initial plan, but with the following factors:
(1). On purchase price, deal got $300 more;
(2). On money factor, deal got 0.0003 more, translate to $770 more in total payments;
(3). I got a big surprise by getting 67% residual on a 39 month lease, I would imagine the residua for 39 month should be 64-65%; That translates to about $1000 to my favor;

Overall, I spent total of 3 hours to get the car. I probably could have saved several hundred dollars by going to more dealers and irritate most of them. But this deal sounds very sweet to me, thanks mainly to BMW for their incredible lease program to start with.

pgeters

Excellent! I am going to take your stats and use them during negotiations. I would be happy to come away with a deal like yours. Thanks Diye!

jzack24

Hello. Does anyone know the money factors and residuals for the X3? I'm interested in 15K/yr programs for 24 and 36 months (also 27 and/or 39 if they exist). Thanks for your help!

CarMan@Edmunds

You're absolutely right, diye. This is an excellent time to lease an X3. BMW's lease program is so aggressive on it right now that its sales of this model doubled last month (well that and BMW paid dealers to dump a bunch of them into demo service). Congratulations on your new truck.

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CarMan@Edmunds

Hi jzack24. If you were to lease a 2006 BMW X3 through BMW Financial Services in April for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00150 and 75%, respectively. The numbers for an otherwise identical 36 month lease should be .00130 and 65%. I believe that BMW is allowing lessees to use its 36 month program for 39 month terms in April. This should help to lower this truck's lease payment a little bit.

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diye

" believe that BMW is allowing lessees to use its 36 month program for 39 month terms in April. This should help to lower this truck's lease payment a little bit."

Based on my example, if I were to lease 36 month instead of 39 month (their residual are the same ), my monthly payment will be $394 instead of $372, a $22/month difference, or $800 over the life of the lease.

virginiacar

I am considering leasing for the first time and was not aware of the negotiability of the lease (and I though I knew at least the basics of car I see that this buyer(lessee) in fact got the down payment down below what is advertised for this X3 deal. I have talked with dealers and they say "this is a BMW finance deal and we have no flexibility" - e.g., cannot negotiate the purchase price because it is pre-set for the lease (and this may be especially so because I am not overloading with options?). Your post makes this sound like a lie. Also, the money factor is confusing; I am not sure how to ask about it other than to just ask.

Any enlightenment appreciated.

diye

You don't even have to mension the lease Ad by BMW.

I went into the dealership the other day and wrote down the following in a piece of paper and showed to the dealer:

MSRP: $40995
(1) Purchase Price: $38700
Residual: 67% (for 36 month, 12k/year)
(2) Money Factor: 0.00125
Down Payment: $1000
(3) Bank Fee: $625
Security Deposit: $400

Monthly Payment: $366 ( this is calculated based on the items above, you can find out how to calculate it from this site, there is a good arcle explaining it )
The only items negociatble is (1), (2) and (3) above, and yes, they are all negociable. After some negociation, we agreed on the following final number:

MSRP: $40995
Purchase Price: $39000
Residual: 39 MO, total 39k Miles at 67%! (instead of 36 MO)
Money Factor: 0.00155
Down Payment: $900
Bank Fee: $625
Security Deposit: $450
Monthly Payment: $372

This is still much better than the national lease deal advertised.

pgeters

Diye, I took your deal into the dealer and asked him to match it for an X3 with a couple more options and he did it with little objection. Here is the deal we came to:

MSRP: $43695
Purchase Price: $41444 (- $2251)
Term: 39 Mo, 10k Mi/Yr
Residual: $29275 (67%)
Money Factor: .00155
Down Payment: $965
Bank Fee: $625
Security Deposit: $450
Monthly Payment: $395

Thanks for the nice negotiation tool! I am excited to finally be in the club!

diye

Wonderful, I'm glad that I could have been any help. And we should thank edmunds for this wonderful site, it makes buying/leasing a car so effortless.

There is one problem though: the deals are so tempting that I am changing cars more often than I should.

hotelz

Hi,

I went to our local BMW dealership yesterday with the intention of leasing the X3. Unfortunately the number we worked out and the number the dealer gave us were completely different! Just wondered if anyone can give me any advice on getting the monthly payment to around $380.
Here what we were given:
MSRP $38690
36 months
12K miles
$2500 down
The dealer came back with $489.84 month. Also asked about a 24 month lease with the same money down and he gave me $518.53!
He explained that the number was high because of state and local tax (New Orleans, Louisiana). He suggested we put another $2000 down in order to get to the monthly payment we want. I don't really want to drop $4500 on a lease down payment.

Any advice would be much appreciated.

Thanks!

talyvan

That's just plain BS and the salesman it's not treating you fearly, with those numbers (assuming $2500 down only, therefore your dive off fees will be around $3100 perhaps a bit more including 1st month, registration and other fees), you should be on the $420 ballpark, and if you do 39 months, it should drop to about $393/mo.

The only way you can get those numbers is that your credit score is really bad.

talyvan

I got similar deal as everybody is getting, and I think is fear enough. This is what i got.

MSRP: $41,895
Negociated: $39,645 ($2250 off, requested and given)
Terms: 39MO, 12K/year = Total 39K miles
Residual: $28,069 (67% of original MSRP on 39Mo)
Money Factor: not specified on contract, but taking my rent charge is about 0.00155
Down Payment: $0.00
Trade-In: CRV 03, $3725
Bank fee: $625 (tied to fight this one, but I could not write it off)
Transfer Plates: $80
1st Month: $385.20
Total Out of pocket: $465.2 (1st month payment + plates transfer)

Just for the record, the monthly paymet @ 15K/year was about $10 more, but it was just way too much for my wife's driving habits.

bdr127

The only way you can get those numbers is that your credit score is really bad.

With BMWFS, credit isn't the issue when it comes to lease rates.... They are on a pass/fail system. If you're approved with a 600 score, you get the same rate as an 800 score.

hotelz

Thanks everyone for the info - very helpful.

I don't think it's my credit score - it's currently at 735 which I presume falls into the 'good' category.

talyvan

Then try plan B, just ask for a better deal with similar numbers as those posted on this forum, remember that as long as you don't sign anything, you can agree anything to the sales manager and start a different talk with the Finance Manager, you know as a last resource to get the fine print numbers out of them.

Good luck and please keep us posted.

jmetcalfe

My wife leased a BWM X3 earlier in the year, and got prices and payments much worse than what you are all discussing here.

3000 dollar plus down payment, and 660 a month.

Could be just bad sales stuff on her part, so i would like to learn more about the hidden tricks and questions to ask... Anyone willing to give me a call and coach me a bit on how to handle this next time and what to look for?

We have to sell our vehicle/get out of the lease right away as we are being transferred to Vancouver, and cannot import the vehicle at a reasonable cost. Looking for ideas!

Also, we are very concerned that upon review of our legal contract, in the TRADE IN section it states we traded in a 2001 BMW X5??? We didn't? It says it was worth 18500, and that 18500 was owed on it, and we net zero on the transaction, but shouldn't that void our contract? Could it be a VIN scam or something? Or something...??? I mean, we have never owned another BMW...

HELP!

Thanks

JM

talyvan

1st Off... OUCH!!.. as a perspective, I pay less than you for my S4 and I took delivery of it with $2500 total.

It does indeed sound fishy, especially if you never traded an X5..and let me tell you that if that's the case, is basically the reason for that high payment because you're increasing the ammount to be depreciated, plus all the taxes upfront of the X3 (about $2800 because is IL).

Have that contract revised ASAP!, as a friendly way, I'd aproach to the Finance Manager 1st on the dealership, however, after signing that contract, it all belongs to BMWFCNA... but is always better to talk to somebody face-to-face.

As for your relocation, get the contract straight up first, after that, if you want the car and is afordabble to you as a regular finance, search for a buyout lease at any financial institution. For experience I can tell you that a lease is not that different than a regular finance in terms of getting out of the deal, of course, is always easier when you take the buyout route or trade-in for a step up in the model line up.

jmetcalfe

Could you please clarify what you mean by this paragraph?

"It does indeed sound fishy, especially if you never traded an X5..and let me tell you that if that's the case, is basically the reason for that high payment because you're increasing the ammount to be depreciated, plus all the taxes upfront of the X3 (about $2800 because is IL)."

Could the x5 they listed in there be some fishy thing or trick? They listed a non existant trade, saying we gave them an x5 worth 28500, and that is had a prior credit balance of 28500 with anet trade value of N/A...

bdr127

Could the x5 they listed in there be some fishy thing or trick? They listed a non existant trade, saying we gave them an x5 worth 28500, and that is had a prior credit balance of 28500 with anet trade value of N/A...

If you needed to get to a total OTD price, maybe it created some tax savings by saying there was a trade-in credit.... hmmm....