2013 and earlier BMW 3-Series Prices Paid and Buying Experience

jkstone

Okay - so being a little anal when it comes to anything that has anything finance related (maybe the Investment Banker in me) I took a few days off work, or more appropriately got distracted from work, to learn about leasing and get a good deal.

Here's my experience and tips of getting a good lease:

++ First, IGNORE the monthly payment -- that can easily be manipulated. If you harp on a certain number (say under $500/month), the dealer will find a way to get there.

++ Get a printed sheet of the invoice price of the car with options and then go to the dealer. Both of you should be talking the same MSRP number. Do not rub the invoice price into him/her -- personally, I see it as an insult when someone wants something from me at my cost and expect me to give them service. Some cars do sell for under invoice given company rebates. At this time (Jan 2007) I don’t think BMW is offering any known rebates other than volume/target bonuses to dealers.

++ For the 3-series a price $1000-$2000 above invoice or midway between Invoice / MSRP is a good number. A couple of hundred here or there...let the dealer win this round - get them on the next one.

++ Money Factor: Okay so here is where you want to get the best deal. BMW's going money rate for lease specials in 0.0011 with $600 deposit and $625-$900 acquisition fee -- do not capitalize this fee (i.e. add to lease payments) as it will increase the MF. (Also see MF Tip below)

Note: After speaking to 7+ dealers, only 3 dealers had this MF of 0.0011. So ask your dealer what they are using to compute, some charge higher to make more $$$.

++ Residual Value (RV): You can't change this - this is set by the company. It's 58% for the Coupe, 61% for the sedan assuming 15K/3 yrs miles. For 12K add 1% for 10K add 3%. 24 month leases are about 10% higher.

Example:
Coupe 10K/2y - 71% (68+3)
Coupe 15K/3y - 58%

Unless you go to a private leasing company which may give you a higher RV, this is nearly impossible to change (only do this if you're buying 2 or more - otherwise stick with BMW finance).

++ Money Down - A really bad idea, IMHO. Just in case something happens to the car - gets stolen or totaled chances are you're out the down payment -- this is also how the monthly payment can be manipulated. Instead pay an additional Security Deposit (See MF tip below)

++ Other Stuff - I would highly recommend Tire & Rim insurance if you live in a city (I'm in New York). Hitting pot holes, getting slashed, excessive wear an tear is covered. On a 2 yr lease, it's a toss up. On a 3 year I would lean toward it. Capitalize this amount in the lease payment (again if the car gets stolen you don’t want to have paid this upfront).

Finally, get a lease calculator and plug in these values. A good lease calculator is:
http://www.leaseguide.com/calc.htm

In summary (and some Tips):

1. Know the invoice and MSRP. A price midway is a good point for the 3-series. This is the first of the two important variables you need to negotiate.

2. Get the lowest Money Factor (MF). This is the second and most important variable - you want this to be the lowest you can get.

Tip: BMW has a program whereby paying additional security deposits you can reduce the MF by 0.00007. You can pay 6 additional deposits (+ the required one). This will make the MF 0.00061 (Lowers the monthly payment nicely - SWEET!)

You do get the Security Deposit at the end of the lease.

3. Always go for no cash down expect for the Security deposit(s), Title, registration, acquisition.
Tip: I see no reason paying sales tax upfront when I could apply that money towards a deposit and reduce the payment and pay the sales tax monthly. (Folks in Illinois may not have this option)

Hopefully, this gives you a good idea of what factors affect a lease and helps you make an informed decision.

Oh..what did I get:

328xi Coupe with Performance, Cold package, comfort access, steptronic, park distance monitor.

MSRP: 44,185
Invoice: 40,685

Negotiated price (Implied for the lease): $42,235
Tire and Rim warranty: $645 (capitalized)
Acquisition: $625
Monthly Payments: $535 with 8.25% tax included.

3yr/30,000 miles

elvisisback

Hey guys, love this website!

I am looking at a 3.28 with automatic transmission and seat heater. Anyone has has good experiences with local dealerships? What price should I pay? i think MSRP is around 35K.
Thansk!
Adam-

tcn2k

Guys, do anyone know how long it takes for a car to go on the vessel, trains etc to get to so. cali? The dealer told me roughly 6 weeks to get to their dealership. I thought it was quicker then this. Does the vessel dock on the east coast and the cars gets train into so. cali?

blueguydotcom

Ships are delivered at the major coastal ports in along the east and west coast. If your car is about to be shipped, 6 weeks is reasonable.

glynis0916

I just negotiated my first lease on a 328i coupe, auto. trans. w/ premium and sports packages and navigation. I'd appreciate any input as to whether you think I got a decent deal:

MSRP $43995/Invoice 40450
Negotiated $42588
Bank (acq.) fee $625
BPA fee $28

Cap Cost 43241
Cap Reduction (trade in) 2416
Adjusted Cap Cost 40824

RV 60%
MF .00140
Tax 8.25%

Total monthly payment = 535 including tax.

I received $3500 for my trade-in which was actually more than I expected, considering that I heard BMW typically ripped people off with trade-ins. To me this made up for the mediocre deal they gave me off the MSRP of the car. The rest of the trade-in money covered license tax registration and first month's payment, so I paid nothing in cash out the door. For me this also validated the deal.

A few questions:

1. Is it typical to capitalize the acquisition fee instead of paying cash?

2. I always thought a lease requires a deposit (I didn't have to pay one)--is this correct?

3. Did I get ripped off on the MF? I couldn't get them to lower it to .00125 or .00130 even though I had good credit.

Thanks for any input.

petexiao

Hi all,
I just got this today for a base model 328i silver with only
auto transmission on it. Dealer told me the profit for them
is around 600.

MSRP: 34845
Cash saleprice: 33845
Acquision Fee: 825 (Banking fee, with BMWFS)
Total CAP cost: 34670

DMV fee: 285

MF: 0.0021
Res: %61 (15000mile/year)

Monthly base: 490.07
Tax: 37,98 (0.0775)
Monthly Payment: 528.05

Down payment: 0
Driveoff: 1420.29

Is that a reasonable price?
Please suggest, thanks.

cchaman

1. Pay the acq. fee upfront. Capitalizing it will increase the money factor

2. You trade-in is kinda covering that

3. Not really, but you can reduce it. Ask the dealer instead of reducing the Cap cost with the trade-in...if he can apply the money towards additinal security deposits. For exach additional one you bring your MF down by 7 bps (basis points). Also tell him the BMW MF for lease specials in 0.0011 -- with additonal deposits you should be able to brink this down to 0.00061.

glynis0916

Forgot to mention lease term is 36 months 12K miles/yr

glynis0916

thanks for the reply...this is already a done deal, but if that was my only mistake then i'm ok with it.

petexiao

Sorry if I am wrong. Base point is .0001 right?
So each additional deposit will bring MF down by 0.7 base
point? 0.0011 - 7*0.00007 (7*0.7 bps) = 0.00061

Can this reduction rate be applied to 328i Sedan also?

kyfdx

1) Capitalizing the acq.fee seems to run about 50/50.. I always recommend it. It doesn't change the money factor, but you will be paying finance charges on that amount (just like any other amount that is capitalized).

2) The initial security deposit can be waived for a bump in the MF of .00015.. In the long run, you lose money by doing this. From the dealer's standpoint, they can make the lease payment lower by taking that same amount and crediting it towards CAP cost reduction. This makes the deal seem better.

3) If you got .0014, then you got the base rate w/security deposit waived. The only way to get the .00125 rate is to make a security deposit.

Since you had a trade, only you can judge how good your deal is. You got the base rate and acquisition fee (very good), didn't make a security deposit (not so good), got a piddly discount from MSRP (not good), but evidently got much more for your trade-in than you expected (good, very good, or great?).

So, it seems you got a very fair deal, assuming your judgement of your trade value is accurate.. You definitely did not get hurt on this transaction.

Enjoy your new car!
kyfdx

nyccarguy

They're also marking up the Acq. fee by $200. Base Bank fee (BMWFS) is $625.

bemer

If it is off the production line, it will be about 3 weeks.
From the day of order until arrived was about 6 weeks.
My was ordered in Minneapolis, so it was delivered on the vessel to North Carolina.
I am not sure about so.cali?

berman2921

Just picked up a slightly used (4kmi) 335 coupe with auto, premium, sport, cold, metallic for 41,200 before taxes. msrp ws 47,300, invoice 43,500. Did I get a fair deal?

abarr566

Yes, unfortunately, this is common and 'normal' for BMW. Of course, typical factors such as your car's mileage, physical condition, maintainance history all come into play but at the end of the day, a pristine vehicle will still be lowballed by the dealer. Another trick they love is to 'increase' your trade in amount and then try to hide the difference in the price of your new one. As someone who experienced the SAME thing at a local dealership, I HIGHLY recommend that you try to sell the car on your own. Don't even think about Carmax or other outfits like that to sell it. I sold my old car through ebay for nearly $2k more than either of three dealers along the East coast offered me for the trade in (in fact, one of the dealers was honest enough to tell me that I'd definitely be better off selling it on my own). If you choose ebay, study other listings similar to your car and look at the ones that are actually SELLING with bids in the ballpark of what you're looking for. Insist that the buyer pay through escrow (or in my case, I had the buyer meet me at my bank for the transaction). I know that everyone hasn't had good experiences with selling on auction sites but speaking as someone who had NO time to put ads in the paper, take potential buyers for numerous test drives, etc, ebay was the Perfect alternative.

Good luck
NC Geechiegal

jtla

I don't think it is fair to compare trade-in price with the price that you could get from the end users. Of course, you got more money by selling on your own -- you earned it. Put ads in the paper or on the web, answer calls/reply inquiries, make appointments with (and wait for) potential buyers for test drives (possibly over 2 weekends), negotiate the price, go to bank with buyer for cash or cashier's check, etc. Those are time consuming. But, overall, I think the biggest risk is dealing with total strangers and they KNOW where you live. (I know, I know, 99% of car buyers are good guys).

Dealers need to make a profit on reselling the trades they take in. The profit should be reasonable, the definition of which may depend on how you value those tasks mentioned above. I heard most dealers make more money from used-car sales, financing, and services than from selling new cars.

The way to avoid being ripped off on the trade-in is doing your homework, and negotiating like you would on the price of your new car. Get an idea of the value of your trade from Kelly Blue Book's website, check on autotraders.com, local newspaper, eBay, etc. Set a price range which you would accept. And be willing to walk off the door if the price you are offered for your trade is below that range.

Doing homework on the value of your trade may be more important than doing homework on the new car prices. In most markets, dealers face competitions selling new cars. But for the trade-in, their only competition at that moment is YOU. Don't give back to the dealer the money you just saved through negotiating a great price on the new car.

bmwpanic

ok good news!

After posting my lease deal on here several people said it was bad. A competitive dealer offered me a much lower price and my current dealer matched it. Reserving a car with some cash locks the car for you but doesnt neccesarilly lock the terms so in the end:

328i w/ automatic, heated and power seats. everything else standard.
MSRP:$35865
Term:36 month lease
Mileage: 12k/year
MF=.00190
Down Payment: $2,500
Monthly Payment: $399 per month including 6% tax and aq fee

good luck!

petexiao

I got a similar basic model 328i with only metalic paint.

MSRP 34845
Negotiated price 33857
Acq fee 625
Capital cost 34482
MF 0.0019
Res factor 61%(15k miles/year)
Security Deposit 500
Mthly payment 500 after 7.75% tax

Is this reasonable?
Thanks and any comments will be appreciated.

brifromdc

Fairfax BMW in Merrifield, VA just finsihed construction on a huge new service center. I'd check them out.

brifromdc

Hi - getting ready to start negotiating for a 2007 328i. Can anyone share some quotes or prices paid for that car. Also, let me know what dealer you used - Fairfax, Passport or VOB. Thanks

brifromdc

I read an article on LeaseWise recently - for $330 they get you 5 lease bids from local dealers. Has anyone had experience with this group or another similar type of service? They say it is much better than the free quotes you can get. Thanks

misterep

You should be in the $450 range

petexiao

Thanks. But how to get another 50 bucks off?
Which value above is not correct?
Dealer also mentioned extra 6 security deposit which can
bring down MF by 0.00007*6 = 0.00042 and decrease
monthly payment by around 23 bucks.
Do you mean this?

Please comment and I really appreciate it.

misterep

You need to improve your negotiated price to 32,600...that would be about 40 bucks there.

Good luck....

Andyboy1974

This is an excellent post and I have learned a lot from it. BUT THERE IS ONE MAJOR PROBLEM (that I had).

I went to a dealer in South Florida today to lease a 2007 328i Sports Wagon with Premium Package, Premium Sound and Xenon headlights in Dark Green Metallic, with manual transmission, terra leather and dark burlwood trim. I offered $800 over European Delivery (ED) Invoice, which the dealer was glad to accept. My offer was for $36,050 with the options mentioned above, which includes the destination charge and "training fee." I was not going to capitalize the bank fee or sales taxes, which are $625 and 6.5%, respectively, in my area.

When it came to the finance guy, though, I offered to "buy down" the lease with 7-times the security deposit to get the ultra-low Money Factor of .00061, and they thought I was insane. They wouldn't even do the "special lease" MF of .0011 mentioned in the post I am replying to.

The "rack rate" MF on this model from BMW Finance on a 36-month lease at 15K miles/yr. is .00225 with a 60% Residual Value ont the ED MSRP of $38,305. With the "buy down" of 7 times the base security deposit, they agreed to a MF of .00176. All said, the deal was at approximately $498 a month. I think this included sales tax, but I am not sure because I wasn't able to leave the dealership with the quote.

I walked out of the dealership and was disappointed that I couldn't get the .00061 MF, so I am looking to work with a dealer that can do ED and perhaps get a better lease MF than what I was offered today.

PLEASE CONTACT ME or post here if you know any dealers that can do this European Delivery at a better rate. I would really appreciate any help or feedback!

kyfdx

The 328XiT and 328iT both have a base money factor of .00225..

The only 3-series that has money factors near .0011 are the coupes... 328Xi coupe is .0010, and the 328i coupe is .00125

As you can see, the lease program on the wagons isn't all that strong... just average..

regards,
kyfdx

geezcar

On Pete's deal:
>MSRP 34845
>Negotiated price 33857
>Acq fee 625
>Capital cost 34482
>MF 0.0019
>Res factor 61%(15k miles/year)
>Security Deposit 500
>Mthly payment 500 after 7.75% tax

It's not end of the season clearance. Can you really get the price down to 32,600???

Here's what I am being offered on a 328Xi Auto w/ Metallic Paint, can someone tell me if I should strike the deal?

MSRP 36745
Negotiated price 35150
Acq fee 625
Money Down 2500
Capital cost (after down) 33275
MF 0.0017
Res factor 61%(15k miles/year)
Security Deposit 400 before tax
Mthly payment 400 before tax

Or

MSRP 36745
Negotiated price 35150
Acq fee 625
Capital cost 35775
MF 0.0018
Res factor 61%(15k miles/year)
No Down
Security Deposit 475 before tax
Mthly payment 475 before tax

I am living in new york city. Should I go for Down or No Down? Or neither above?

Thanks.

geezcar

By the way, for my price 35150 quote, the invoice price was $34270, MSRP is 36745. So it's 900 above invoice but 1600 below MSRP. Should I shop further?

tom335

Please kindly help on this leasing offer
2007 335i sedan with MSRP $42800, 24 months, 12k mi per year
Down payment: $3000
Monthly Payment: $518
Is it a good deal?

kyfdx

Why is the money factor changing between the two deals? The upfront money shouldn't change the rate you get..

My sources say the base rate for the 328Xi sedan is .0019, either way..

Everything being equal, I would not put the $2500 upfront..

regards,
kyfdx

geezcar

I think you got a fair deal.

From my calculation.
Based on MSRP $42800, 24M/12K.
If you get a fair price at $41700 with:
Down = 3K
Residual Value = 70%
MF = 0.00175
Your payment should be around $484 before tax. Or $513 after 6% tax.

Comments anyone else?

geezcar

Thank you kyfdx.
I calculated the 0.0017 and 0.0018 based on the monthly payment with my negotiated price and MSRP. It could be 0.0019 but it doesn't make a big different here or there.
So based on the offer, what do you think about my deal? Anyone else?

janoo

Hi All,

I was wondering if you can help me. I am looking at an 2007 BMW 328Xi. THE MSRP is $42,416. I have requested the:
1) Premium package
2) On board Navigation system
3) 6 Speed Automatic Transmition
4) Heated front Seats
5) Metallic paint
I am putting ZERO down, paying the taxes up front $1600 plus the bank fee $625, MV fees$235, Doc fee $249 and first months payment. It will be 15,000 miles per year for 36 months. The price is $530 per month. Can I do better than this? It sounds like alot of money per month. Please advise

jtla

It really can't tell based on the data given. One thing, though, according to Bimmerfest, the MF and residual for a 24M/12k miles lease for 335i sedan should be .0015 and 73%, respectively. Assuming you get $1,600 off MSRP, add on $625 bank fee, and with $3k cap cost reduction, the monthly payment should be around $450, give or take. However, I suspect the $3,000 "down" is not all cap cost reduction. If it pays for license, tax, security deposit, 1st payment, etc. (none of which is cap cost reduction), you payment will go much higher.

geezcar

Why is the tax being $1600? Do you mean the tax $1095 + $500 Security Deposit = $1600? I don't get it. If that is the case, it translates to:
MSRP: 42416
Deposit: 500
RV%=61%
MF=0.0019
Assume Tax%=0.775
Then Net CAP Cost would be 41016
Base on this calculation, I got approximately $532/mon.
Am I calculating it right?

I think it's average. Maybe you can get the dealer to knock down another $10 a month.

dcjme

Passport has the best reputation in the area for customer service. I hear pretty decent things about BMW of Sterling, too. Email me at qst_n@yahoo.com and I'll be happy to give you the name of the guy I deal with at Passport. Highly recommend him, but I think that forum rules prevent me from publicizing his name.

janoo

I was able to get the lease price per month for $519 per month. Zero down, total out of pocket expense with taxes up front is $2997.38. Please advise if this is a good deal and money factor. Many Thanks; Here are the Specs again:
1) Premium package
2) On board Navigation system
3) 6 Speed Automatic Transmition
4) Heated front Seats
5) Metallic paint
MSRP 42,500.
15,000 miles p/a for 36 months.

bellyncr4

Well this was a first time lease experience for me, and I must admit I think I could have a read a little more before going in (i.e. the MF), but let me know if you guys think this was fair or not so I can learn for next time -

2007 328i sedan w/ Premium Package
12,000 miles, 27mth lease
MSRP 37,600
Residual - 73% (~$28k)
I didn't want to put "extra" money "down" on it so I only put for 1st month and license fees - $1,100, $179.98 of which they put towards cap. cost reduction
MF - 0.0019
Payment no tax - $520.02, w/tax - $560.32

Looking forward to the feedback. I love these forums!

brifromdc

My current lease expires 3/31/07. The BMW sale manager said I should lock in now to take advantage of the higher residual I'll get now vs. March. He said it will take 6-8 weeks to track down the exact car I want. I can start my new lease in the last week of March. Does this approach make sense or should I wait until March to negotiate and lock in? Thanks

kyfdx

Lock it now... with the option of switching to the March program, if it is better..

No cost to the dealer to do this, but make sure they agree to it, upfront..

tom335

Thanks for the replies from geezcar and jtla. The $3000 is the out the door price which includes the 1st payment as well. And I only need to pay $518(after-tax) for 23 months. I hope this information would be good enough for saying whether this is a good deal or not. Thanks guys!!

jtla

There are still unknown variables, but we can try again.

After subtracting one-month security deposit, 1st month payment, and DMV fees from your $3,000 out-the-door price, there is probably $1,500 left to apply to cap cost reduction. Using .0015 MF, 73% residual, and factor in $625 acquisition fee, a selling price of approx. $41,300 will get you the $518 monthly payment. So, it looks like you are getting about $1,500 off MSRP, which is not bad, IMHO.

As you can see, we are doing it backward. In fact, you should negotiate the selling price first, then plug the numbers into a lease calculator to get the payment amount. Good luck.

jtla

Well, this is similar to my last post in replying to tom335, we have to do the math backward. I will spare you with all the details. The bad news is, it would seem to me that you may be paying MSRP. The comforting part is, since you must have signed the lease during the year-end promotion of the 27-month lease, you payment is equivalent to $1,000 off MSRP if you were doing the regular 24-month lease. Keep in mind that Leasing is only one method of financing your car. Always negotiate the selling price of the car first.

varcix

Hi, i've been reading these forums for a while, and haven't had time to post until now.

My question is do any of you think it's possible to get a base 2007 coupe or sedan (w/auto) for the December lease special of $349/$329 respectively? I believe I missed out on the boat of good deals, but would like to know if a deal in this range is still possible?

I've had my current 325i for 2 years, but love the new coupes....thanks for any input in advance!

geezcar

I think you got a decent deal. You might be able to sqeeze a few more bucks to consider it real good deal. Take the total out of pocket cost and the monthly payment to another dealer and ask for a better deal. If there isn't much of a difference, I would go back to the original dealer.

tom335

Thanks guy!!! And I've tried at another dealer which refused to give me the same deal as I mentioned before. So, I believe this is not a bad deal. I appreciate for your help!!!

janoo

URGENT:
PLEASE, I need advice.
I was able to get the lease price per month for $519 per month. Zero down, total out of pocket expense with taxes up front is $2997.38. Please advise if this is a good deal and money factor? Many Thanks; Here are the Specs again:
1) Premium package
2) On board Navigation system
3) 6 Speed Automatic Transmition
4) Heated front Seats
5) Metallic paint
MSRP 42,500. WHAT MONEY FACTOR SHOULD I LOOK OUT FOR?
15,000 miles p/a for 36 monthsASE, I need advice!!!!

drolly

This seems like it's more for new car deals, and maybe there's a different thread for this.... but here goes...

I'm looking to possibly make an offer on a 2004 325i and I don't want to make an insulting offer.

Certified, 31k miles, leather seats automatic... dealer claims it has the premium package but I'm not sure what the premium package gives. Asking price is $24485. The car has been on the lot since late Nov-early Dec. I would like to offer $21500. The way I figure it, 10-15% less than asking is not an absurd offer. KBB puts the car about $20115 for a trade-in value, so that's also between 5-10% of profit (knowing they probably didn't pay that much to get it, but is a good number to work with when taking into consideration what it may have needed to make it sales-ready).

Any help? Thanks!

kyfdx

Is the car in question a 328Xi sedan? If not, let me know.. because that could change the deal.

If so, MF is .0019 and the residual is 61%.

That would assume a CAP cost of $40,100, which would be an excellent price...

How much of the out of pocket is tax? $1500? If so, this looks like an excellent deal.

regards,
kyfdx

mefromfl

Hi, I'm getting ready to lease a 07 335 coupe, and I can use some help. The packages I want is as follow:

205 6-Speed STEPTRONIC Automatic Transmission
2XA Paddle Shifters
ZSP Sport Package
322 Comfort Access
Monaco Blue Metallic

The dealer is offering a MSRP of 44,645. This is the same price i get when doing this package on edmunds.com. What is a good price for this and what should i watch for? Dealer does not know if I will buy or lease or will I trade in yet.