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BMW Z4 Prices Paid and Buying Experience

lee_wlee_w Posts: 239
edited October 2014 in BMW


  • vsaxenavsaxena Posts: 211
    Purchased a new Jet Black with Beige leather Z4 manual for my brother in the San Jose CA area for $500 over basic cost. The dealer passed on $3000 of the $3500 incentive. This came to about $6200 below MSRP. They did add the MACO and training fees. Also got 2.9% for 60 months, though their buy rate is 1.9%. Dealer was Stevens Creek BMW. The car had Sports, Performance, Convenience, Xenon and heated seats.

    He threw in the wind deflector ($185 retail) instead of the floor mats when we picked up the car. The buying experience was pleasant; they have a car listed on EBay and were dealing, so the price was not an issue. The APR markup was something which did bother us, but we did not push it too much.

    We were offered the 6yr/100,000 maintenance and warranty plan. We passed on them now but might consider them in the future.
  • zman4zman4 Posts: 7
  • vsaxenavsaxena Posts: 211
    Isn't the 0.00190 MF rather high? Based on what BMWUSA has the MF is 0.000959 = 2.3%. The dealer is marking the MF up by almost 50%. The Z4 also has a $4500 BMW to dealer incentive. I think you did OK on the price though you could have done better (look at But the dealer will like to mark up something or the other to make money.
  • I am about to sign a lease for a 2004 Jet black exterior, black leatherette, automatic top, and auto trans with $3000 down and $339 a mo for 36 mo. Is this a good deal? It doesnt have any packages or anything just those two features I have mentioned. Also, on the car that I test drove, there were no buttons on the steering wheel for the radio or anything like that. Will mine have those? Thanks
  • cucocuco Posts: 36
    Just leased a 2004 Z4.

      MSRP: $44920
      Purchase price: $37861. (About invoice - $3500). Took advantage of part of $4500 manufacturer-to-dealer incentive.
      36-month closed end lease, 10000 miles per year.
      Money Factor: 0.0019
      Down Payment: $2500
      Residual (58%): $26053

    Acquisition Fee: $525
    Refundable Deposit: $400

    Because I put $2500 down, I went ahead and payed about $200 for the dealer to etch every piece of glass with serial numbers to decrease the chances of having the car stolen. The $200 fee also buys the insurance to get the $2500 downpayment back in case of total loss.

    Dealer included the Z4 floor mats for free.

      Total due at signing (includes down payment): $4239

      Monthly lease: $397

      State: N.J. (6% tax), included in monthly payment.
  • cucocuco Posts: 36

      Is it a 2.5 or a 3.0 liter Z4?
  • vsaxenavsaxena Posts: 211
    Bought another for myself.
    $500 over dealer cost.
    36m/10K year.
  • 2.5
  • cucocuco Posts: 36

     Here are my 2 cents.

     If you still have not bought, good for you. BMW is offering the dealers $5000 in incentive to unload the 2004 2.5 liter Z4. It's $6500 for the 2004 3.0 liter Z4.

     I learned in the leasing forum at that it is not a good idea to put money down on a lease. If the car is totaled or stolen, you do not get your deposit back. In my case, I did put $2500 down so my wife would feel better at paying $397 per month for her lease instead of $470 per month.

     Here are my calculations on your car.

     A 2004 2.5 liter Z4 with auto and power top has an MSRP of $36280 and an Invoice of $33535. These numbers are from

     First the calculations without putting any money down.

     1 - Assume that the dealer makes $1000. You may be able to get the dealer to go for just $500 in profit for him. It depends on how motivated they are to unload the 2004. I had no problem in getting mine at $1000 above dealer cost.

     2 - (Invoice - 5000 + 1000) = $29525
     3 - I got 58% residual on 10000 miles per year, last month. I don't know if the residuals have changed in September. Car_man at the leasing post may be able to help you with the actual residual number. The residual will also be smaller if you need more than 10000 miles per year on the lease.

     4 - 58% of the MSRP = $21042.

     5 - (29525 - 21042) / 36 = $235.64 to pay down the difference between the purchase price and the residual value over 36 months.

     6 - Interest per month

          (29525 + 21042) * 0.002 = $93.13

     7 - Total lease, before taxes, no money down.

          235.64 + 93.13 = $328.77

      Your'll have an acquisition fee, deposit and first month payment.

      If you decide to put down an extra $3000, then the payment should be about $247. This is a lot lower than what you were quoted.

      The above numbers will change depending on the miles per year you actually need, the residual now in September for the 2004 model and the actual price above dealer cost. The above numbers are $1000 above the dealer cost, which is (Invoice - $5000).

      Good luck, let us know how you did.
  • I am considering getting a Z4 (or Z3 w/lo miles) for commute purposes... it has two seats and the car pool requires 3 unless you only have two seats! my dilemma is... purchase used, new or lease. i live approx 40mi from my destination (80 per day) so i am not certain that a lease would be effective. i have looked at used but they are pretty pricey... almost as much as new w/o the incentives. can someone give me advice on this? i have a trade-in (98 LR RR4.6HSE w/51Kmi) so purchasing from a dealer in either case is pretty essential. if i buy used, how much wiggle room do i have and if new is it more beneficial due to warranty, incentives, financing, etc. thanks...i appreciate any assistance you can offer!
  • vsaxenavsaxena Posts: 211
    With the current incentives a new Z4 is very attractive, especially since leases have very high residuals since they car calculated based on MSRP. You can get a 3.0 about $9K under MSRP. BMW offers leases upto 15K miles/year (or even more perhaps).

    In your case the best deal would be a CPO car. This will give you warranty coverage for upto 6 years from the start date or 100K miles. Buy the extended maintenance program ($1K) and you are set with no maintenance/warranty costs for upto 100K miles, except for tires, insurance and gas.

    Since you are going to be commuting, avoid the 3.0 Sports Package with the 18" wheel. The runflats on the 18" make the ride very hard and not good for commuting. A 3.0 non-Sports or a 2.5 Sports, both with 17" wheels are better for commuting. I also considered a Z3 before going for the Z4 but they are not in the same league. A Z4 is much better car than the Z3 when it comes to the driving dynamics.

    In order to come up with an offer for a CPO car, I would use this formula:
    1. Find the current invoice cost of a new 2004 Z4 with similar equipment (edmunds, carsdirect etc.).
    2. Subtract the current incentives ($6500 for 3.0 and $5000 for 2.5); add $1000 for dealer profit. This is the going price for 2004 Z4.
    3. Reduce the price you get in #2 by about 20% for the 1st year depreciation.
    4. Add $1000 to the price in #3 to come up with a fair market value for the CPO car.

    Most dealers, especially in the North East and the MidWest will take this deal. They do not want to be stuck with these pre-owned cars for too long. You may end up paying $1000-$2000 more than the number you come up with in #4 but walk if they ask for more.

    There are a lot of Z4s for sale on EBay, many of them from BMW dealers. Very few of them are selling since the reserves are not being met. Once in a while you get a steal; a 2003 3.0 with less than 10K miles went for $30K, a full $15K less than MSRP last week.

    If you do your home work well, you should be able to get a 2.5 CPO for around $31-32K and a 3.0 CPO for about $34-36K.
  • Please HELP!

    I have been looking at the Z4 for a while and now (September) they have very good lease offers.

    I have the opportunity to get a z4 with power top MSRP is $35570. When I see the BMW site it says that downpayment will be 2500 and monthly payments will be $320 (with taxes).

    Now I went to a dealer and I know the dealers are getting $5000 from I expected to get the car for $35570 - $ 5000 = $30570. This will make the monthly payments lower. However, the dealer is telling me that the $5000 are built in the lease and that's why the lease is so low.

    He is saying that when BMW talks about $320 monthly payments for the car BMW is including the $5000 discount already there.
    is this true?
  • Dear vsaxena: are brilliant! Thank you so much for y our help! You really opened my eyes and gave me some amazing info! I now feel armed to do battle. I live on the West Coast and convertibles are premium here but I can go in feeling more comfortable dealing with dealers!!!
    Thanks again, and keep up the good advice. You are an asset to this site~!

  • cucocuco Posts: 36

      Your MSRP of $35570 has an invoice price of about $32800. What I did in negotiating for the Z4 is work from the Invoice price, not the MSRP. A few people in these forums have been able to purchase or lease a new 2004 Z4 after giving the dealer just $500 to $1000 in profit.

       What I would do in your case is the following:

       1 - Try offering the dealer (Invoice - 5000 + 500), in other words, about $28300 for the car. This gives the dealer $500 in profit. I personally wouldn't go above $1000 profit for the dealer. That is, your purchase price should be between $28300 and $28800. If not, IMO, you're paying too much. Remember, they are motivated to get rid of the 2004 roadsters. Roadsters, in general, are not selling well. If they don't go for this, be prepare to walk to another dealer or a different car. If you really want the Z4, then they are going to get some extra money from you.

       2 - If you are going to lease, go to the leasing forum in this site and ask the host, Car_man what the residual is for the 2004 Z4 2.5 liter this month. Remember, you have to tell Car_man the number of miles that you want to be able to drive per year and the number of months in your lease.

      3 - Once you have the best purchase price for the car, the residual percentage, and the current money factor of 0.002, you'll be able to figure out the monthly amount.

      4 - If you do your homework you should be able to do a lot better than $320 per month.

        For example, last month the residual for a 36 month lease and 10000 miles per year was 58%. If that residual still applies in September, then such a lease in your case should cost only about $251 a month, before taxes, and assuming $2500 down. The same, without a down payment would be about $326.
  • kyfdxkyfdx Posts: 120,273
    Marcos.. good advice by cuco.

    Forget the lease calculator on the website or what you see in the ads.. You can almost always do better.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Thank you so much there a calculator I can use with all this data to figure out what the monthly payment should be?

  • vsaxenavsaxena Posts: 211
    Though they have increased the incentive they have drastically reduced the residuals on the Z4. You may want to try for third party residuals.

    Z4 2.5i

    Money Factor .00200 Base Rate (good for all terms and mileage)

    24 mo/15k mi = 59% residual - 36 mo/15k mi = 51% residual
    24 mo/12k mi = 61% residual - 36 mo/12k mi = 52% residual
    24 mo/10k mi = 62% residual - 36 mo/10k mi = 53% residual

    Z4 3.0i

    Money Factor .00200 Base Rate (good for all terms and mileage)

    24 mo/15k mi = 59% residual - 36 mo/15k mi = 50% residual
    24 mo/12k mi = 61% residual - 36 mo/12k mi = 52% residual
    24 mo/10k mi = 62% residual - 36 mo/10k mi = 53% residual

    Capitalized Cost (CC) = purchase price + acquisition fee - cap cost reduction.
    Residual (RD) = % of MSRP (not purchase price).
    Monthly Lease payment (CC - RD)/# of months + (CC + RD) * Money Factor.
    Add Tax to above.
    Drive Off = security deposit, license fee, first month's payment (with 0 down payment towards cap cost reduction).

    ALWAYS PUT 0 down towards cap cost reduction.
  • cucocuco Posts: 36

     Thanks for the post. I've been trying to get the residuals for the Z4 for this month. Where do you get these numbers?

      I leased my Z4 last month. Last month, the 3 liter 10K miles, 36 month lease had a residual of 58% and a manufacturer-to-dealer incentive of $4500. My lease came out to $397 per month, including taxes in N.J. I just went through the calculations for my car, based on the 53% residual and $6500 incentive. I went ahead and assumed that I would get the $2000 extra incentive between August and September for my lease, and the number came out to about $400 a month.

      That is, leasing this month would have cost the same, even with the $2000 extra for the incentive.

      I guess what this means is that 3 years from now, I may be able to get the car for 53% of the MSRP instead of the 58% MSRP from last month. It seems the residual takes a deep drop right after the manufacturer stops taking orders for the previous model year car, as it happened for BMW in August.
  • vsaxenavsaxena Posts: 211
    Got them from roadfly.

    Your calculations are indeed correct. They had to drop the residuals by the amount they were increasing the incentives for. Otherwise the depreciation on a car stickered for $48.5K would have been just $11K over three years!!

     The only issue is that we will have to negotiate the residual lower. The current wholesale price of 2003 Z4s 3.0 is in the low 30s. It is very likely that three years from now, the price of a 2004 Z4 will be in the low 20s and not the high 20s which our residuals currently are.
  • cucocuco Posts: 36

      It is obviously too early yet to know if we'll keep the car 3 years from now. It will depend on what other new roadsters and deals are out there at the time.

      My wife does love the Z4. It is a fun car to drive ... I only get to drive it when the boss lets me! Everytime I do drive it, I'm riding around with a huge smile on my face. It's definitely going to be hard to stay within the alloted miles with this car.
  • kyfdxkyfdx Posts: 120,273
    In three years:
    1) You decide you want to buy your car.. Residual is $25K. Payments $500/mo for 60 months for a 3-year old car. Only one more year of warranty left.
    2) It is August of '07.. The all new Z5 (not a real car) is just not moving.. they have big incentives.. You can lease a brand new one for under $500/mo. with nothing down...

    I think you'll choose #2.. and be happy for the last three years, and looking forward to the next three.


    My guess is

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • cucocuco Posts: 36

       You're right, once you go leasing you don't go back. We'll probably just turn the car in and lease again.

       With so much competition going on in the auto industry, and all kinds of innovations going into cars all the time, it's more appropriate to lease. In addition, when you lease, you don't have to deal with having to find a buyer eventually for an old car. I suppose most people now-a-days only get the trade-in-value when they get rid of their cars. You also don't have to deal with the cost and aggravation of repairs.
       You do need a second car in the household, one with front wheel drive, for those that live in the Northeast and have to deal with winter snow.
  • wh9wh9 Posts: 32
    My dealer would only come $6500 off the MSRP for th Z4 3.0, not the invoice. I walked away. Best time to buy and deal is when you don't need a car. Has anyone gottn the incentives off invoice??
  • kyfdxkyfdx Posts: 120,273
    Wow... so he basically wants MSRP for an '04, with the '05s hitting the lots? Maybe he wants to make a planter out of it..

    I have a hard time believing he wouldn't jump at $2500 less than that.. or even $3500 less..

    Business must be good.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • kyfdxkyfdx Posts: 120,273
    I've heard good things about Nalley.. in Decatur, I think....

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • cucocuco Posts: 36

       Last month, I leased a 3 lilter 2004 Z4. In August they had a $4500 incentive instead of the $6500 this month. I got a price of (Invoice - 4500 + 1000). In other words, $1000 profit for the dealer. Most people are being sucessfull with just $500 for the dealer.

       You should definitely be able to get (Invoice - 6500 + 500).

        Someone told me last month that some BMW dealers are getting other nonpublished incentives from the manufacturer to unload the 2004 Z4 in their lots. So you may be able to get the car for (Invoice - $6500)
  • I ordered a new '05 2.5 with the premium package, heated seats, beige leather, and bi-xenon lights for 36,790. Didn't know about any dealer incentives since I got my straight from the factory. Invoice was 30,400. Get's built in October for a mid November delivery.
        I don't know how that compares to everyone else but I'm interested to find out.
  • vsaxenavsaxena Posts: 211
    BMWFS 2005 Lease Programs – Effective 9/16/2004

    Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms

    They have increased the residuals but increased the money factor. With the incentives you can now lease a 3.0 with an MSRP of $48K+ for $475/month + tax assuming the dealer makes a $500 profit.

    Z4 2.5i

    24 mo/15k mi – 62% Residual Value – Money Factor .00240 Base Rate
    36 mo/15k mi – 55% Residual Value – Money Factor .00240 Base Rate
    48 mo/15k mi – 44% Residual Value – Money Factor .00255 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00255 Base Rate

    Z4 3.0i

    24 mo/15k mi – 62% Residual Value – Money Factor .00240 Base Rate
    36 mo/15k mi – 55% Residual Value – Money Factor .00240 Base Rate
    48 mo/15k mi – 43% Residual Value – Money Factor .00255 Base Rate
    60 mo/15k mi – 36% Residual Value – Money Factor .00255 Base Rate
  • wh9wh9 Posts: 32
    Thanks to all who responded to my inquiry. I am located in Augusta, GA. Taylor BMW is the local dealer here. I purchase rather than lease due to the mileage that I put on a car.
    The salesman was only reducing the price off MSRP not invoice. He got pretty perturbed at me when I asked for the $6500 of invoice and then add back in $1000 for their profit. Oh well! Their loss. I'll go look elsewhere.
  • wh9wh9 Posts: 32
    I drove by the dealer lot on Sunday to see if the 3.0 I was trying to mak a deal on was there and it still is. The salesman was high pressure and said others were looking at it last week. I said let them have it...first come first served. I offered him Invoice - $6,500 + $1000 profit. He didn't like that. The 2.5 one that they had is gone. I think I might try AAA car buying service and look at my other options as well, such as finding a used 04 with low miles on it...I've seen them out there...will keep looking for the best deal.
This discussion has been closed.