BMW 3-Series Lease Questions

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Hi everyone. Please use the following discussion to post any questions that you have about leasing a BMW 3-Series. Thanks.
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Have you had a chance to look at the new Sept lease program?
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2006 330i
36 or 24 months
15k per year
I can't seem to get an answer....thanks in advance.
JPY
24 mo/15k mi – 69% Residual – Money Factor .00250
36 mo/15k mi – 60% Residual – Money Factor .00250
regards,
kyfdx
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Also, do you think BMW dealerships should be more flexible in negotiating a sale price when they sell a demo car? The do give and extra 3months/5,000 miles on the warranty, but the car is still slightly used (1500miles). What should be the highest price I should pay on this car? I think 38975 is too high. The edmunds invoice is 38250. should that be my highest on this demo? Should I shoot for 38000? I appreciate the advice and help.
I want to make sure i am getting a really good deal on this car since it is not "new" even though it looks perfect. I initially was going to buy a 06 325i but this demo was a seemingly good alterative. This is my first car purchase I dont want to get screwed.
But, getting to your residual question... I'm sure the residual is being reduced a certain amount, to account for the extra mileage already on the car.... Maybe $0.10, $0.15 or $0.20 per mile.... Play with the calculations and see if that makes the numbers come out right....
regards,
kyfdx
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thanks for getting back to me so quickly. I will work on the Residual numbers and figure out what is going on.
I am interested in your statement about demos not being a good buy. Are new BMW 330i's selling for anywhere near invoice price?...ie. a 42070 Msrp selling for 38250. The dealer stated that they only give 1000 off sticker! Is that a ploy? I didnt think people got large discounts (invoice pricing) on luxury vehicles...is this a misconception.
does leasing they car instead of buying affect the negotiated price? Should the resuidual be calculated on the negotiated price or the MSRP? BMW dealer in dayton ohio stated that the residual is based on the MSRP while my lease payments are based the negotiated price. That does not seem right to me. Thanks kyfdx!
2) Residual is always based upon MSRP... because, the price you negotiate has no actual effect on what the car will be worth at lease end.. If you pay $1000 less than the next guy for the same car, they are still worth exactly the same, three years from now.
3) Your payments are based on the negotiated price.. which should be the same, whether you lease or buy.. (There are exceptions to this, when incentives are in place, but not in this case).
If you are leasing with the intent of buying, then the residual is not as important... But, in a straight lease deal, you don't want the residual to go down along with the negotiated price.. that would end up costing you more.. High residuals = low lease payments..
If your intention is to purchase this car, I'd suggest shopping for the cheapest financing you can find, and just go ahead and buy it... You'll save acquisition fees, and your financing may be cheaper than the current money factor..
regards,
kyfdx
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One last question...Is it feasible to get 500-1000 over invoice price on a new, not demo, 330i with MSRP of 42,070? BMW dealers seem stuck on this "700-1000 off MSRP is the best deal you can get on these cars"? If i can get a good deal (eg. 38750 on a 42070 vehicle) on a new vs. a demo I would rather get that one. I have sent out emails requesting 2 dealers to beat the lease rate on demo on two new 330is with the same options. I guess i will see how low they will go.
Again, Thank you very much kyfdx,
Cheers.
If you cast a very, very wide net, you may get $1500 over invoice... but, I wouldn't bet on it..
regards,
kyfdx
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Can someone give me an idea of what I should expect for a residual value and money factor on a 24 mth lease on the 06 325 xi
Thanks
I personally feel as though most dealers are not willing to discount demo vehicles enough. Even though demo vehicles are still technically considered new vehicles, I personally view them as nothing more than low mileage used vehicles and would want them priced as such of I was to buy one. Why purchase a used vehicle that random people have been driving and breaking in when you could have a brand new one for only a couple hundred dollars more?
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You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.
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If you were to lease a 2006 BMW 325xi through BMW Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00280 and 71%, respectively.
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In order to keep my payments below 400 an I going to have to put down a few grand? I would prefer to do only a max of 2000. Let me know what you calculate it out to be.
thanks again,
Christin
Would you mind telling me where you are getting this deal from? I was looking at the lease BMW offers thru there website. Does any one recommend it? Anyone seen better deals out there?
325i Base Model
$407*/month for 36 months
10,000 miles per year
$3,342.00 cash due at signing
Would this be a reasonable deal?
Metallic Paint, Terra Leather, Sports Pkg, Heated Seats, Comfort Access, Park Distance Control, and Aluminum Pedals (Assuming MSRP = Invoice for pedals).
MSRP (BMW Site) 42,205
Invoice (Edmunds) 38,700
Cap Cost 40,500 (not a valid offer from dealer yet)
Sec Dep 750 (Part of Upfront Payment)
Acq Fee 625 (Part of Upfront Payment)
MF 0.0025
Term 12 mo
Mileage 12,000/yr
Residual 62%
Down Payment 0
Ohio Tax 6.75%
Monthly Payment 602.93 (incl Tax)
Please let me know if I have overlooked anything.
Thanks and regards,
SS
I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 325xi would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you really want to keep your monthly payment below $400 though, you would need to make a capitalized cost reduction of around $2,250. this would put this car's pre-tax monthly payment at aruond $398.48. Of course, once tax is added in, you will either have to pay it at lease signing or make an even larger down payment to stay below $400 per month.
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I need your learned advice on whether the lease offer I've received for a 325i is any good. Looking at the numbers that others have posted, mine seem rather high.
MSRP: $34,445.00
Term: 36 mo
Mileage: 10,000
Down Payment: $1000 (covers first payment and all taxes/fees)
Monthly Payment: $577.32 (includes all taxes/fees)
Thank you in advance for your much welcomed opinion.
2006 325i
Premium Package
Metallic Paint
Automatic transmission
MSRP: $36,320
36 months, 20K miles/year
$5,000 down, includes inception fees
58% residual value
$560 total due per month
Trade: 2001, Mustang Convertible GT, 72K miles
Trade in value: 11K
Any help would be greatly appreciated.
Thanks.
Could you give me a ballpark estimate on an '06 330i lease with the following numbers:
MSRP: 43,730
Negotiated: 41,980
12k/yr
36mo.
Thx.
Mike
Can you provide suggestions on if this is a good deal on a 06' 325i, and what should I do to get the best deal
MSRP: 36,680
Negotiated: 35,800
12k/yr
$2,500 down
60 mo.
$537 per mos.
Thx.
LadyA
Will be leasing soon a '06 325i and want to get info before dealing with those "slick" car salesman. I had one tell me he can lower my lease payment with taking a stacked deposit that will be returned to me once lease is over? Have you heard of that? Without it he is quoting me approx $595/mo
What will my lease pymt be on 06 BMW 325i for 36 mos and 15/yr with -0- down pymt
MSRP 30,900
Premium Pkg= 2,900
Dest charge = 695
TOTAL: 34,970 Dealer by phone will only take $500 off MSRP giving me a new total of $ 34,470
Thanks!
He's not being "slick".... He's referring to Multiple Security Deposits (MSD), and it is a far better way to reduce your cap cost without putting money down (in the traditional sense). You can make up to 5 total security deposits, I believe, which are each about the same amount as the monthly payment. For doing that, you get a slight discount in MF (think interest rate). Plus, you get your security deposits back at the end, so long as the car is in good shape and you're not over your allocated miles. It's typically a good thing to take advantage of if you are thinking about reducing your cap cost and monthly payment.
Here's the details: 24 month lease,
20,000 miles per year,
Car's listed price was $46,300. (sport package, and xenon headlights were the extra options, automatic steptronic),
1550 upfront payment.
Monthly payment will be $705.00
Our sales tax rate is 6%.
Also, we are trading in a 2000 540i with 74,000 miles that has been in a rear end collision, no frame damage. They are giving us $10,000 for that.
I know that I am probably missing a lot but this whole lease thing has got my head spinning. And should I be even expecting a lot better since this is a 2005 versus a 2006? Any help would be greatly appreciated, the sooner the better since they are holding our deposit.Thanks!!!
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I would be happy to give you my opinion on the lease payment that you were quoted, however in order for me to do so it would be a big help if you were to provide me with this car's selling price. This is a very important number for you as a consumer to know anyhow.
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Another problem that I have with this deal is the length of this lease. Sixty months is way too long to lease any car for. A lot can happen during the course of five years, your family situation could change causing you to need a bigger vehicle, your commute could get longer causing you to exceed your mileage limit, etc... Furthermore, BMW's special lease programs are only available for leases up to 42 months in length. If you lease for any longer than that, you have to use BMW Financial Services' standard lease money factor. Let's calculate a 42 month lease payment on the exact car that you are interested in using BMW's actual October lease program and see what we come up with. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $36,680 and a selling price of $35,800 through BMW Financial Services right now for 42 months with 12,000 miles per year, its zero down, pre-tax monthly lease payment should only be around $512. As you can see, the lease payment that you were quoted for this car is too high. I definitely would shop around if I was in your situation.
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In most areas, you should be able to do better than only $500 off of MSRP on the car that you are interested in. Stop by the following discussion to find out how much other community members have paid for similar vehicles lately: "BMW 3-Series: Prices Paid & Buying Experience".
For now, I will estimate this car's lease payment for you using the price that you were quoted and BMW's actual October lease program. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $34,495
and a selling price of $33,995 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $480. With a $1,000 discount, the payment for an otherwise identical lease would drop to around $465 and with a $1,500 discount it would drop to around $450.
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It is very important for you and your husband to find out the exact selling price of the car that you are interested in. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without the selling price, not only is it difficult to tell how much of a discount you are being given but it is next to impossible to calculate what your car's lease payment should be. In fact, in October BMW is providing $1,500 dealer cash on the 2005 325 Convertible. This money will help you to negotiate a very attractive selling price for the car that you want. Make sure to take it into account during your negotiations. If you let me know what this car's selling price is, I would be happy to give you my opinion on the deal that you were quoted and estimate a lease payment on this car using BMW's October lease program for you.
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MSRP 43,545
Offered it for 38,900
24 Month Lease
59% residual
.0031 Money Factor
12,000 Miles/year
It looks like he tried to pass off a good looking price while trying to get his money back on high lease rates. Is 59% good for a new car at 24 months?
To answer your question about 59%, that's a pretty middle of the road residual for 24 months, considering it is the very end of the model year. You might also want to look at a 36 month lease on that car since the 12k miles/year residual is 54%. Your payment will probably be $125+ less on a 36 mo.
BTW, residual values are not negotiable. They are set by the bank and represent the lease-end value.
In September, the BMWFS buy rates were:
330Ci Coupe
Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms
24 mo/15k mi – 57% Residual Value – Money Factor .00260 Base Rate
36 mo/15k mi – 52% Residual Value – Money Factor .00260 Base Rate
So your residual was right but the MF was being jacked up. The October rates may be higher.
From a value perpective, a 3yr lease looks better than a 2yr lease on this car.
MSRP: $37,120 -- can buy the vehicle for $36,715 (only giving $800 off list price).
After dealing with several dealers this is about the going price in Tennessee. My lease is as follows:
36 months; 15,000 miles
down payment of $1112.33
Residual value of $22,643.20
Money Factor: 0.0325; residual of 61% (I'm not sure what that means).
The salesperson has quoted my payments as $597.80 = tax of $41.85 for a total monthly payment of $639.65. Is this in line with BMW's October lease program? Please contact me as soon as possible as I am probably buying this week. Thanks.
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