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BMW X3 Lease Questions



  • 07110711 Posts: 5
    Dear Car_Man,

    Re: my message on 5/29, I was wondering if you could add a bit to Talyvan's reply, which was also helpful.

    Re: Excess mileage fee: Is the .20/mile negotiable at the lease signing? Dealer said this fee is not negotiable, and cannot be written into the contract. I understand I might be able to get a lower rate later on (though not guaranteed), but want to know if this is actually something that can be negotiated prior to lease signing and written into the lease contract, or is the dealer correct that we cannot do this?

    Re: BMW contract wording on excess wear and tear: Should I be concerned that the actual lease contract does not clearly define how big a scratch or dent is that is considered excessive? The lease end inspection form does, but this form is not part of the actual contract. Any advice on this?

    Re: Rust - the contract does not distinguish between rust from a mfr defect (mfr responsibility) vs. rust from chipped paint owner doesn't repair (owner responsibility). Should I be concerned that contract doesn't distinguish between the two? Any advice on this?

    Also, is the wording about excess wear and tear pretty much the same on all car lease contracts, or is BMW's any different?

    I'm hoping to finalize the lease in the next couple of days, and would appreciate your advice before I sign it. Thanks in advance for your help!
  • zoshanzoshan Posts: 1
    Hi Car Man my first post I hope you'll add your comments,

    I got this X3.0 fully loaded sport package navigation leather every option except parktronic and high-end sound system. I don't know money factor but got the price reduced to $42500 from $45000, gave down $1650 for 12000 miles/ month for 39 month. Total monthly payment 467.85 including taxes and every thing, not sure if this is the best deal. :confuse:
  • 07110711 Posts: 5
    Dear Talyvan,

    Thanks for your response. I'm still hoping to get Car_Man's response on my 2nd email, but had a couple of questions on your #2 response about mileage.

    I assume the BMW's circle website rate must be higher than the initial .15/mile that you can buy before the lease is signed - is this true, and do you know what rate they charge on the website (we don't have access to owner's circle yet)? Also, do you know if this rate fluctuates over time or does it remain the same?

    Do you also know if the rate listed on the contract you sign up front of .20/mile for excess miles is negotiable prior to signing the lease? The dealer said we can't change this rate on the contract and is not negotiable up front.

    If anyone else out there knows the answer to any of this, I would really appreciate your response as well! We'd love to get the contract finalized this week. Thanks!
  • kyfdxkyfdx Posts: 64,772
    I'm not the expert on leasing that Car_man is, but I've recently leased a BMW, so I can answer some of your questions..

    1) The $0.20/mi. excess mileage charge is not negotiable.

    2) At some point, up until the last six months of your lease, you can purchase excess miles from BMWFS for $0.16/ea. These can be added to your lease payment and amortized over the remaining months of your lease. I'm sure it is possible for this number to change, but it has been this way for at least the last three years, if not longer..

    I think this is a much better deal than buying the miles upfront, as you will be able to come closer to the exact number of miles that you need, once you have some history with the vehicle.

    Hope this helps..
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  • 07110711 Posts: 5
    Dear Kyfdx

    Thanks so much for your quick response. It was a great help!
  • talyvantalyvan Posts: 17
    Exactly as posted, aditional miles price are not negiotiable, I took the time to cut and paste this from the OC website, I though it'll be interesting to have around.

    What does it mean to buy more Lease miles?
    More Miles = more driving fun. So, you think that you might go over the number of miles in your lease contract? BMW Financial Services allows you to buy additional miles today, for up to a 20% savings, and enjoy more driving fun now without paying more later.

    Why should I buy more miles
    Enjoy more miles of exhilarating driving behind the wheel of your BMW. Why worry about having to pay at the end of your lease for going over your allotted miles? Use the mileage calculator to estimate the number of additional miles you want to enjoy in your BMW and see how much you will save by purchasing them now.

    What are the benefits?
    Cost Savings - Save up to 20 percent on additional lease miles by purchasing them ahead of time

    Flexibility - Additional miles can be purchased in one lump sum payment, or the total cost may be spread out over the remaining monthly payments.

    It's Easy! Everything you need to complete this process is available right here on the Owners' Circle.

    Don't delay! This service is available to you until you reach 4 months from the end of your lease. So purchase your additional miles today!

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on your new baby, gregdbusch. I certainly know what it is like to have to change vehicles because of a new arrival. That's why I don't drive coupes any more :cry: . It's worth it though :D . Anyhow, I am sure that lots of dealers would like to "help" you get out of your X3 lease and into a new X5. However, dealers do not have some magical way to get you out of your current lease for free. It is probably going to be fairly expensive to get out of your leased X3 over a year before the scheduled end of your lease. You will probably have to pay money out of your pocket to get out of this truck at this point or at least pay way more than you should on your X5 lease. By far, your least expensive option would be to continue to drive your X3 until you are closer to the scheduled end of your lease. If you only have one child it should be big enough to tough it out another couple of months. It's not like we're talking about a Z4 ;).

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on your first new BMW, mschu3. It looks like you paid $1,600 over invoice for this truck. That is a reasonable price, but if you are in an area that has a decent level of competition I would not be surprised if you would have been able to get another couple hundred off. The money factor that was used to calculate your truck's monthly payment is right in line with BMW Financial Services' current buy rate for it. Plus this dealer did not try to mark your vehicle's acquisition fee up like a lot of BMW dealers do. Overall I would say that this is a reasonable deal.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings zoshan. The selling price that you were quoted for this truck looks reasonable. If you want to fid out how much over dealer invoice it is, you can look up your vehicle's invoice price in the following section off this site: - New Vehicle Pricing. Let's use BMW's actual current lease program to estimate what its monthly payment should be. According to my calculations, if you were to lease a 2006 BMW X3 with an MSRP of $45,000 and a selling price of $42,500 through BMW FS right now for 39 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $452. Since the payment that you were quoted includes tax, it looks about right to me.

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  • lponz7lponz7 Posts: 25
    Looking at an X3 on a 39 month, 10K per year miles, lease. Are BMWFS's May numbers (.00185 and 68%) still in effect or are there new numbers? I'm not sure I've ever seen a residual value that high after thirty-nine months. lponz7
  • spindoc1spindoc1 Posts: 4
    After reading the numbers in this forum, i'm feeling that i'm paying way to much for my lease on a 2006 X3. The car i'm going to lease (I say going to because I haven't received delivery of the car yet, it's currently on a ship on the atlantic) is fully loaded: cold weather package, premium package, servotronic steering, xenon, navigation, premium sound, park distance control, rear airbags, performance 18" tires, privacy glass and auxillary input. Total price is $47 620. Dealer told me they will knock the price down to about $46000. With that I signed a lease with zero down, 12k miles/year, 39 months for $599/month including taxes. First month I owe first month lease and security deposit. By looking at the numbers in this forum i'm thinking that I didn't really get a good deal. Can anyone let me know how these numbers sound and if i'm still bound to te lease even though the car won't be here for another 3-4 weeks? Thanks
  • lponz7lponz7 Posts: 25
    I think the payment is too high. First, it seems folks are getting a discount of about $2,000 to 2,500 on the X3 now, depending on competition in the area. With all those options, which often have higher mark-ups, a $1,620 reduction to determine base rate cap cost seems a little stingy. As for the lease terms, even using your numbers, and a sales tax rate of 7% (you didn't indicate what taxes are in your area), I come out with a payment of $540.92 based on the June money factor and residual value that I understand are being offered by BMW's captive finance subsidiary--.00185 and 67% on a 12K miles per year lease. This leads me to believe that the dealer also marked-up the money factor to hide additional profit--not uncommon among BMW dealers. Of course, with a lower cap cost, the monthly payment would be even lower--there a lots of free on-line lease calculators available to run these numbers under different scenarios. In terms of whether you are bound to the deal, that is a function of the nature of the contractual commitment you made when you ordered the vehicle and how accommodating your dealer is willing to be. Good luck. lponz7
  • spindoc1spindoc1 Posts: 4
    Thanks for the advice and info Iponz7. I really appreciate it. Will keep this forum posted on what sort of a deal I can strike. Wish I had been here sooner. :mad:
  • cmcewen2cmcewen2 Posts: 3
    Hi. I just finalized a lease deal with my local Massachusetts BMW dealer - for an X3, heated seats, heated steering wheel, metallic paint, leatherette seats, privacy glass, rubber floor mats. It's not a loaded vehicle - but after some's the final deal I received:

    Term: 39 mths, 10k miles
    Monthly payment: $398.86 (incl MA 5% tax)
    Selling price: $36675 - Edmunds says the MSRP is $38970, and invoice is $35705)
    Residual: 68% based on MSRP
    Money factor: .00185
    Down Payment: $0
    Sec Deposit: $400
    Bank Fee: $761
    Title/registration: $285.25

    My drive off costs come to $1845.11 and I'll have monthly payments of $398.86 - All appears good, what dya think? Did I get a good deal?

    Also, I drive anywhere from 11-13k miles a year - I'm counting on BMW's mid term mileage adjustment to allow me to up my mileage, paying $0.16/mile vs $0.15/mile upfront based on a guesstimate of my future miles.

    I also read on this forum about Owner's circle pricing ($0.16/mi that can be purchased UP TO 4 mths before the end of the lease period - that's great - in fact, when I mentioned this, my dealer knew nothing about this.

    Thanks in advance!
  • stevenycstevenyc Posts: 8
    It sounds pretty good to me. You got it for less than a thousand above invoice. About the miles, I beieve the owner's circle says you can buy extra miles as long as you have at least 9 months left on your lease. You can access the owner's circle immediately by setting up an account using your production number.

    I just signed a lease in NYC for an X3 with the Premium package and Nav.
    Term: 30mths, 12K miles
    Monthly payment: 311
    Selling Price: $39.5K (MSRP=41,095; INV=37,645)
    Residual: 71%
    Money Factor: .002
    Down Payment of about 4800
    Sec Dep 350
    Bank Charge: 650
    Upfront (including 1st month, sales tax (8.375), downpayment, title, registration and bank fee): 7500.

    After reading other posts I feel like the money factor is too high and maybe could've gotten a better price, but even so I like the dealership and my rep there is great.
  • pgeterspgeters Posts: 12
    Well stevenyc, if it is a done deal, then all you have to do now is enjoy your X3. Once you start driving it, any issues you may have had buying it will long be forgotten. Welcome to the club!
  • mappermanmapperman Posts: 3
    I am looking to lease an X3 BMW. I have no experience with making "deals" as far as leasing goes. Could you please explain to me what I can do and what I should know going into this experience. I do not want to get ripped off.
    I am looking at X3's range 41-45K.
    I live in Bend, Oregon. there is only one BMW dealer here in town. should I drive over to the valley...Salem/Portland to get a better deal?
    I have Volvo V50 2005 at this time. can I make any deals with a trade-in? the Volvo is bluebooked at around 25K+.
    what is the best way to approach this?
    please help. I don't want to be ignorant going into this lease.
  • pgeterspgeters Posts: 12
    mapperman, if you are really serious, I would recommend reading a good book on automobile leasing to really understand what to look for. I also recommend reading through this entire thread. When I leased my X3 I found a deal that someone had posted here, took it in to the dealership, and asked them to match it. The numbers posted here will give you a good idea of what to shoot for. But, if you don't understand how a lease works the dealership can still slip some part of the deal by you that may look OK at first, but really is just extra money in their pocket.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi lponz7. If you were to lease a 2006 BMW X3 through BMW Financial Services right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00185 and 68%, respectively.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi spindoc1. The dealer that you are working with can't force you to take the X3 that you ordered if you haven't physically taken delivery of it. However, if you gave them some sort of deposit they certainly can make it difficult to get back. If you decide that you don't want to do this deal and they refuse to give you your money back, if you paid your deposit with a credit card you can at least dispute the charge.

    As far as this truck's price goes, a 2006 BMW X3 with similar equipment to the one that you described has a spread of around $4,000 between its full MSRP and dealer invoice prices. You are only being given a discount of $1,620 on this tuck. If I was in the market for one, I personally would want at least a $3,000 discount. You may be able to get an idea of how much others have paid for similar trucks by stopping by the following discussion: "BMW X3: Prices Paid & Buying Experience".

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello cmcewen2. The money factor that you were quoted for this truck is right in line with BMW Financial Services' current buy rate for it. This is a good sign because it means that the dealer that you are working with is not trying to mark your vehicle's money factor up to add additional hidden back-end profit to your deal. If the selling price that you are being given is $1,000 over invoice like you indicated, it is reasonable as well. The bank fee that you are being charged is a little high though. BMW FS' current base lease acquisition fee is only $625. Other than that, this deal looks good.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings mapperman. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    When negotiating a lease, the two most important numbers to focus on are your vehicle's selling price and its money factor. These ate the two main profit centers for dealers. Negotiate as low a selling price as possible on the X3 that you want and then have the dealer calculate its lease payment using BMW Financial Services' "buy rate" lease money factor. This car's current buy rate is .00185. It is important to make sure that this is the number that is being used to calculate your truck's lease payment because BMW dealers are notorious for marking vehicles' money factors up to add additional back-end profit to deals.

    If you want to trade in your Volvo, treat it as a separate transaction. You can find out approximately what your vehicle is worth by looking up its True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". When you trade in your car, have the dealer cut you a check for any equity that you have in it rather than using the proceeds from it as a capitalized cost reduction for your lease. It is in your best interest not to make large down payments when leasing because if your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears.

    Well, that covers the basics. Let me know if you have any other questions.

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  • edeveredever Posts: 1
    What are the current lease rates for the X3? I saw that there were some lease specials, but I'd like to know the breakdown, i.e. residual, money factor and so forth. Supposed to be good through Aug 31 I think.

  • kptaylorkptaylor Posts: 4
    I'm also interested in the current money factors and residual rates on X3's. Specifically, I'm looking at a 24 month lease with 20K miles per year. Not sure if you can get this or if you have to buy miles to get it...

    Any help Car man is appreciated!
  • tc9897tc9897 Posts: 6
    I just got my new lease on X3 yesterday...

    Residual rates:
    78% for 24-month, 10k/yr
    77% for 24-month, 12k/yr
    68% for 364-month, 10k/yr
    67% for 36-month, 12k/yr

    money factor (good til 8/31): .00195 (seems to have gone up a bit from .00185)
  • Car_Man,
    I'd really appreciate your assistance with this one. I'm in the midwest, Kansas City region. I'd like to lease a standard X3 with heated seats and privacy glass added.

    According to

    Retail: 38345
    TMV: 36864
    Invoice: 35140

    I'd like a 39-44 month lease with 12k of miles.

    Current posted internet special is 36 month 379 / month. With 3800 up front.

    I think 366 / month for the X3 described above is fair with around 1800 drive off total for the lease I'm looking for. Is this realistic? What numbers do I need to present to the dealer in order to make this happen?

    Thanks in advance! I appreciate any assistance anyone can provide as I'm a newbie to the leasing world.
  • babsnycbabsnyc Posts: 1
    I put a down payment on an X3 on Saturday to "hold" a specific vehicle. I was told that I could change my mind and get the deposit back.

    I am pretty sure I want the car, but don't know if I am getting a good deal. It is in NYC (Manhattan). Of course, I was notified today that the car will land in Newark by this weekend, I have been approved for the lease and I can get the car next week. The price of the vehicle is $39,235. The money factor is .00195. The residual rate is 67%. For a 36 month/10,000 mile a year lease, I was offered $449 month with $3155.08 due at signing (sales tax at 8.375%, down payment of $625, tax on down payment of $52.34, MV fees and inspection $225, and refundable security deposit of $450).

    Does this sound okay or have I been a bubblehead?

  • dsnow77dsnow77 Posts: 3
    does this sound like a rock bottom deal? please let me know if i have any room to ask them to lower the down payment with keeping the payments the same.

    this is what i have been quoted on a base model X3.

    Im in Southern California (orange county)

    MSRP is $38,395.00 - leasing Cap Cost is $36,895 (includes Floor Mats)

    Money Factor & Residula Value:
    MF - .00210 (No Security Deposit) Residual - 78% for 24 month lease

    24 months
    $2900 drive off fees
    $422.75/month including tax

    they also said:
    "Remember - the maintanance is included with all of our BMW purchases - that averages about $50 to $60 per month."
    not sure what that means.
  • diyediye Posts: 45
    I believe you still have room to negociate.

    I leased an X3 three months ago.

    MSRP $41000.
    39month, 12k/year.
    $2900 drive off, with a security deposit ( actually that's a good thing, means I will get it back later)
    $400.00/month including tax

    It's a (much) better deal than yours, even though I know that money factor has increased since.
  • dsnow77dsnow77 Posts: 3
    can you list what dealership you went to for this deal?
    thanks :)
This discussion has been closed.