2013 and earlier BMW X3 Prices Paid and Buying Experience

kyfdx

You are correct.. the $20/mo is mostly a combination..

The $200 bump is about $5.75/mo..

The $490 lower discount is $14.10/mo..

If the money factor is indeed .0012 with the waiver, that is a very small bump (.00005).. about $3/mo.

Forget about the mats... they don't really change the MSRP for lease calculations.. they only change your selling price.. I'd be happy with your deal if I could just get the acq. fee down to base, and another $400-$500 off the selling price...

You aren't doing too bad, though..

regards,
kyfdx

rob34

What about this? can he change up on me after I order?

I just got back from the dealer and I think I have some work to do. My first question is I am ordering the car new from the factory and he is saying he "can only guarantee the money factor for 60 days from the last program date." I am not quite sure what this means. If I order the car, they can't change the price after the fact and then I am on the hook for the car can they? What if delivery takes longer?

rob34

Also, you said The $490 lower discount is $14.10/mo..

But it's $390 he was off isn't it?

kyfdx

He is correct.. they can only lock in the lease numbers for 60 days from the end of the current program (which unfortunately for you, ends Sunday)..

However, if they have an allocation (vehicle in process) for May or June, they should be able to change it to your specs and get it delivered within sixty days..

Conversely, they could guarantee your lease price, and take a chance on eating any increases.. but they aren't likely to... Most dealers will only guarantee the selling price.. they usually won't guarantee the payment..

Of course, you can take a chance, and wait until after Monday... Then, you could lock that rate in, until the end of July.. But, if the program gets worse, you've lost out then, too...

Just ask him how they are going to order your car... Do they have an open allocation that they think they can get in by the end of June? If not, make your deal contingent on getting the same payment or better.. If not, you walk away when the time comes..

Not easy, I know...

kyfdx

I'm getting him to throw in the mats for free...

rob34

I figured that after I posted. I will see what he says. I sent the email.

My last question I hope is that you said:

If the money factor is indeed .0012 with the waiver, that is a very small bump (.00005).. about $3/mo.

What does "with the waiver mean?" I thought you said it was .0010 and if no security deposit then .0015. I know it's only $3.00 but I told him he could go to .0015 I thought and I want to make sure i was correct in saying that.

kyfdx

.00115, not .0015... the bump is .00015.... three zeros after the decimal, not two.

campfour

I think this is a good deal... but thought i would lobb it up there.

Vehicle price $38600 inclusive of all dealer costs (detail, soft and rubber mats, cargo net, liner and advertising stuff, doc fees, oregon taxes($168)...)

X3, 3.0, heated seats, premium package, privacy glass, 15K/yr, .59 ($23670) residual.

I was told the money factor was .001008 (2.42%)

The claim is that the dealer made $975 on this deal in whole... is that true?
with $4000 total due at signing our payment is $410/month

kyfdx

MSRP?

campfour

I also have to sign by this friday night to get the lease rate...

campfour

$40120 + $150 in add ons

rob34

kyfdx,

What is a proper deposit for ordering a car? I always thought it was $500 but this guy said $1000.00. That would be more than my upfront costs.

I am concerned about ordering the car and if it does come more than 60 days later that I will get screwed. They already have my money before I even now what the payment is. Will I have the right to back out? If the payment does change, how can I ensure that only the MF changed and nothing else?

I just want to protect myself if they can't change a vehicle in progress to my specs.

hdsdds

Don't mean to jump in here, but was wondering what you lease "experts" thought of the following...

About to deal with a dealer tomorrow to finalize a lease on X3 3.0 with options totaling an MSRP of $40,445. Another dealer will take $2000 off price (which would come to about $1400 over dealer cost). Questions are, good price? Also, can the dealer I use tweak the lease rate and/or residual, or is that set by manufacturer? With it being end of the month, and the vehicle in question having been on their lot a while (jet black/terra cota), I think, since it was produced in October, thought I should be able to get a good deal. With security and 1st month, should get them down to the 525-550/month range.

What do you think?

ccdbb

The dealer in NJ is promoting 05'X3 3.0 for $299/mo at 10K/yr with $3500 cash down on top of bank fee, 1st payment, tax and deposit. The sales person reconfigured the payment structure for me as following,

For 15K/yr, upfront payment $1965 ($450 deposit,$261 1st year MV fee, bank fee and 1st payment), $453/mo including tax. The vehicle available is in Grey Silver Metallic, with heated front seats. Not sure if it has Steptronic.

Can one of you lease experts let me know if this is a good deal or I should be able to negociate a better one even without this promotion?

Thanks.

ccdbb

kyfdx

Your deal looks pretty decent.. It is hard to know exactly, because the $4K upfront isnt broken down, but as near as I can tell, that includes a $2500 cap cost reduction.. If that is accurate, I get about the same monthly payment that they do, using the base money factor...

Looks like a decent deal all the way around... Though, I think they made closer to $1500.

regards,
kyfdx

kyfdx

A lot of dealers that have $30K+ cars want a bigger deposit.. They want you "invested" in the car.. A lot of non-serious buyers might drop $500 on a deposit, but $1000 makes you think about it (right?).

I'd be straight with them... If the payment or terms of the lease change, I'm not taking the car.. and I'll want my deposit back..

I doubt they'll have any problem with that... just make sure you don't sign anything that says the deposit is non-refundable..

They really should be able to tell you with 90% certainty if they can get the car by June 30th or not.. It shouldn't be just a shot in the dark.

regards,
kyfdx

kyfdx

hdsdds..

MSRP of $40,445.. $2K off MSRP..
3yr/45K lease would be $486/mo+ tax with 1st payment and security deposit due at signing..

The dealer can't change the residual... that is set by BMWFS.. They can mark-up the lease rate and the acquisition fee, but they can't go lower than what BMWFS provides...

kyfdx

Can't really comment on your proposed deals without MSRPs..

dbth

Please note that the Ipod Interface is not available if you have the Navigation System.
If you have Navi ,you will have to use the Ipod Aux In the glove box.
It is a useful substitute ,but you will not have hands free access to the Ipod.

rob34

Thanks so much for your help. I think I got what I wanted. Bellevue BMW said the low rates will be extended through May.

3 yr, 12 K
MSRP: $43745
Total Cap inc. bank fee: $42,287
Residual: 61%
MF: .00115
Cash due at signing: $762
Monthly payment: $512.72 + tax.

Agreed?

kyfdx

That looks great..

Just one caveat..

If you sign this month, it doesn't matter what happens in May.. you only have the April program locked until June 30th...

Now, if you sign this month, and the program stays the same in May, then maybe they will re-write the deal for May 2nd, and you will be locked until the end of July.. I don't know exactly what they are thinking...

I doubt that they know what the May numbers are going to be, though...

I do like your deal.. all of the base rates, and $2K off MSRP.. that is a good deal.. I'd make that security deposit... Pay the $600 that you get back at the end of the lease, and lower your payment to $502.38... That is like loaning them $600 and them paying you $10 interest each month... 20% annual return on your $600..

Good luck,
kyfdx

zhou

I think for the official BMW lease listed in the incentive section only has the option of auto transmision. So the MSRP should be $36,300 +$1,275 = $37,575.
the deal details are:
$369 Monthly Payment
36 Month Term
$2500 Down Payment
$400 Security Deposit
10000 Annual Mileage
Is this deal good? What is the residual value for 10k per year lease?

kyfdx

The auto transmission is a no-cost option for the 3.0 model.. but, you'd have to add destination of $695 on there.. We'll assume the MSRP is $36,995.

The residual is 62% and the money factor is .0010

To get to the $369/mo. payment, you need a cap cost of $34,165


$36,040 selling price
-$2500 down payment
+$625 acquistion fee
= $34,165 cap cost.

So, the deal assumes a selling price of $955 off MSRP..

Actually, the exact numbers probably call for a discount of $1000 from MSRP. This is typical for a low-priced BMW advertised lease... Not a great deal...

Put enough money down, and almost any lease deal looks cheap..

Assume no money down, and 15K per year, and at that selling price the payment would be $471/mo.+ tax...

regards,
kyfdx

ccdbb

Here is the latest I got from another sales person.

MSRP: $40755
Offered price $38755

$2211 opening cost include 1st payment, security deposit of $500, doc fee, tag fee, acq fee. For 36 mo term with 36K mi, residual is 62% off MSRP, money factor is 0.012. Monthly is $499.

I feel I could ask him for at least another $500 off the offered price. Do you think that's reasonable?

Thanks.

ccdbb

ccdbb

Can you teach me how to work with the money factor please? How do you apply the money factor to (selling price - MSRP x residule) to figure out the monthly payment? Thanks.

ccdbb

kyfdx

1) 36mo/36K residual is 61%... 36mo/30K residual is 62%

2) $2K off MSRP is okay, but how much is the doc fee? I count that as part of the car, as it is just money for the dealer.... Also, the base acq.fee is $625.. they might be marking that up..

3) I get $463/mo.+ tax.... using 61% residual and .0012 MF.. if your tax is around 7.5%-8%, then that matches up..

4) The base money factor is .0010, so they are marking that up to .0012

If you get the car for $2K off MSRP and use all the base rates, the payment should be $468/mo.+tax, with only first payment and security deposit upfront.(acq.fee rolled into payment) + license/title fees.. ($1200-$1300 total at signing).

regards,
kyfdx

kyfdx

Numbers you need to figure a lease payment:

MSRP
Selling price
CAP cost (selling price + additions - prepayments) AKA: amount financed.
Residual % (always applied to MSRP)
Money factor
Term of lease

Three parts make up the lease payment:

Depreciation ([Cap cost minus Residual] / term)
Interest or "Rent charge" ([cap cost + residual] X money factor)
Tax

Using your example:

Depreciation = [$38,755 - $24860.55] / 36 = $385.96
Interest = [$38,755 + $24860.55] X .0012 = $76.34
$385.96 + $76.34 = $462.30 + TAX

Hope this helps,
kyfdx

ccdbb

Thank you so much for your help. Now I feel more clear on the lease business.

1) You are right, it is 61% for 36mo/36K
2) doc fee is $126, 3yr NJ registration is $261. They did mark up the acq. fee to $875. What a rip off. Is this something I can bargin with him?
3) tax is 6%, which is $833.67/36=$23.16. That only adds up to $486. I wonder how it became $499.
4) can I bargin on the money factor too?

He told me if I roll the acq. fee into monthly payment, the money factor would go up. I guess this is not true.

Thanks again.
ccdbb

ccdbb

Thanks for the formula. I never knew it is so straight forward. I think from now on I should carry my laptop into ever dealer ship and pull out the spreadsheet right in front of them.

ccdbb

kyfdx

You should insist on the base money factor and the base acquisition fee.. My guess is he figured you wanted a payment under $500/mo., and increased the money factors and fees to hit that number...

If you can get him to use the base money factor and roll the base acq.fee into the cap cost, then you can use the example I gave above for the payment...

If you waive the security deposit, or waive the acquisition fee, then the money factor goes up.. but, rolling the acq.fee into the cap cost does not affect it.. base MF is .0010

regards,
kyfdx

ccdbb

Thanks. I will go back to him and put my feet on the ground.

Good night!

ccdbb

haakon

BMW has a current "special" lease offer on their website as follows:

$369 Monthly Payment
36 Month Term
$2500 Down Payment
$400 Security Deposit
$3,269 Cash due at signing (includes first month pmt)
10,000 Annual Mileage
Lease based on 2005 X3 3.0i with 5-speed steptronic automatic transmission.
MSRP of $36,995.00

Is this considered a good lease - do they really exist? Will the dealer make money on this, or is it a loss leader just meant as a teaser rate to get people in and then to upsell? Is it realistic w. the above variables to be able to get a lower monthly rate? Any help would be appreciated.

Thanks.

kyfdx

It always pays to do a little reading before asking a question.. Not picking on you, as this happens every day...

kyfdx, "BMW X3: Prices Paid & Buying Experience" #741, 29 Apr 2005 8:08 pm

ccdbb

kyfdx,

Gave a little more thoughts to your formula. It seems that the higher the residual value, the lower the depreciation, but interest got higher at the same time. Do depreciation and interest contradict each other then? Also, if acq fee gets rolled into the cap cost, it will be charged interest. Is something I should do then?

ccdbb

kyfdx

Residual and money factor aren't relative to each other... However, BMWFS may choose to use those numbers to incentivize sales of the car.. They might offer a high residual, which costs them nothing until you turn the car in.. Or they might choose to lower the money factor, in which case they are taking the financial hit over the life of the lease..

The $625 for the acquisition fee is such a small amount, that the interest that accrues to it is pretty much immaterial.... from cents to maybe $1.50 per month at most... I always roll all of my upfront costs into the monthly payment, except for 1st payment and security deposit.. (I even rolled in those one time).

regards,
kyfdx

ccdbb

Just closed the deal as you suggested. Without a word, they backed down acq fee to $625 with money factor lowered to 0.0010. I was trying to get a little more off the MSRP but failed.

Thanks a lot for all your help. This is the first time I walked into a dealership with such confidence. Now I am waiting for the production number so I will know when they will finished building my new X3.

Very excited,
ccdbb

kyfdx

Good deal!!

I'd be excited, too.. I have to live vicariously through others for at least another year...

regards,
kyfdx

gfour

Thanks KYFDX for the review. I do get the typos now and then. I revised it all and emailed it to the dealership. They agreed all was correct and faxed me the paperwork. Straight up deal. Closed this weekend and everything was as advertised. I have a good dealership. Thanks for your help, gfour

atamir

Hi, i have built an x3 with the following specs on the BMW website:

2005 X3 2.5i SAV

Destination Charge
$695

Exterior
Jet Black

Interior
Birch Grain Light Wood Trim
Sand Beige Sensatec Leatherette

Packages
Premium Package
$3,700

MSRP
$30,300

Price as configured
$36,645

Options
STEPTRONIC 5-Speed Automatic Transmission
$1,275

Premium Sound System
$675

Down Payment
$1500

Lease
$499

Term
36 months

Annual Mileage
10000

I want to send a lease deal to a few bmw dealers to get the bidding started but, being that its my first time doing so, i'm not sure how to formulate these offers....any advice would be really appreciated. Also, can i do better than the numbers above?

Thanks in advance!

chachi

The 3.0i Lease is a better deal for the money. You get more standard features for the same price of the 2.5i you are looking at. The Automatic Transmission is FREE, and some of the features on a Premium Package is included on a 3.0i. Plus the 3.0i has a higher fixed value which in return will lower your monthly payment.
I just picked up my X3 3.0i a week ago and love it...
Have a good one!

chachi

atamir

Hi All,

Just got a quote from my bmw dealer:

Upfront Costs:
First Monthly Payment
Security Deposit
$625.00 Bank Fee
$7.50 NJ Tire Tax
$169.00 Documentation Fee
$263.00 Motor Vehicle Fee for 3 years.

We could do a lease on an X3 3.0 for $427.61/mo for 3 years and 10,000 miles/yr. This would include NJ sales tax and no cap cost reduction. Due at start would only be the inception fees & mv fees. This car has the following factory options included:

Automatic
Heated front seats
Privacy Glass
Panoramic Moonroof
Wood Trim
Power front seats with driver's memory
Heated steering wheel

I have a jet black with black interior available. I also have a jet black with sand interior available without the heated steering wheel or privacy glass but with cold weather pkg and satelite radio prep.

Is this a good deal? What would the security deposit be? Are there any charges that are really dealer profit?

Thanks!

kyfdx

MSRP?

atamir

He said the msrp for either car is $37,995.00

kyfdx

It looks like about $2000 off MSRP, if I assume the base rates.... The only extra "padding" that I see is the documentation fee... But, that is fairly minor..

If that is your payment, the security deposit will be $450.

If the car actually MSRPs for $37,995, that is a good deal.. Good luck..

regards,
kyfdx

dcriggs

I've enjoyed reading your comments regarding the X3. I find purchasing a new vehicle to be a rather stressfull event!

I just received a $38K quote from a dealer for a 2005 X3 with following options:

Manual transmission
black sapphire, terra cotta leather interior
sports package
fake wood trim (of some sort!)
premium package
xenon lights
heated seats

Does this price sound reasonably good to any of you?

Thanks!

kyfdx

Did they say what the MSRP was? The going rate seems to be about $2K under MSRP...

The 3.0 model is usually a better deal.. given the no-extra-cost automatic transmission (which wouldn't help you any) and the free sunroof.. Better lease numbers than the 2.5 model, as well. .if you are inclined to lease.

regards,
kyfdx

dcriggs

Thanks for your reply. I believe the MSRP was $40K (and change), so it looks like this price isn't too bad.

That's interesting about the better lease prices for the 3.0. We'll have to check that out if we go automatic after all.

Thanks again,

dcriggs

kyfdx

Yeah.. if you do decide to go automatic, you get a lot more with the 3.0.. Especially since you want leather, premium, etc..a lot of those things are standard on the 3.0.... The difference is price is likely to be under $3K.... and the lease payment may only be $20-$30/month higher..

haakon

I recently got a quote on a X3 3.0 with the following configuration

Automatic
Metallic Paint
Premium Package
Heated front seats (not Cold Weather Package)

MSRP including destination/handling: $39,770

With a $3,000 cap reduction, the monthly lease pmts based on 3 year lease & 10K miles/year came to $347/month (pretax). In addition there was a bank fee of $695. Tax, tag, title fees xtra, and not included in the above monthly pmt.

Would anybody care to comment whether this is a good deal?

Thanks – any help would be appreciated.

kyfdx

Using the base rates, that imputes to a selling price of $38K... not too bad with the base rates... Acquisition fee should be $625..

By the way, I would never make a $3K cap cost reduction... If the car is stolen or totaled, you will likely not get any of the down payment back.. I also roll in the acquisition fee and all taxes..

So, for reference, with a selling price of $38K, no cap cost reduction and the $625 acquisition fee rolled in, the payment would be $452/mo.+tax. If you negotiated another $500 off the price, subtract $15/mo.

regards,
kyfdx