BMW 3-Series Lease Questions

CarMan@Edmunds

Thanks for the additional information, snq310. BMW's lease program on the '06 325i is not very attractive right now. If you were to lease one with an MSRP of $36,345 and a selling price of $34,100 through BMW Financial Services right now for 36 months with 10,000 miles per year, its zero down, pre-tax monthly payment should be around $465.

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CarMan@Edmunds

Hello Alex. The dealer invoice price of the car that you described is currently $42,255. So the selling price that you negotiated is $1,500 over invoice, which is reasonable. The money factor that you were quoted is in line with BMW Financial Services buy rate for this car. So the two negotiable aspects of this deal look good to me.

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CarMan@Edmunds

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

All banks that lease vehicles to consumers charge an "acquisition fee" at lease signing. BMW Financial Services' base lease acquisition fee is currently $625. Dealers have the authority to "mark-up" this fee to add additional hidden profit to deals, so make sure that you are no charges any more than this. Many banks also charge "disposition fees" on lease. At lease-end if you decide not to lease another BMW, you will be charged a $350 disposition fee by BMW Financial Services. Neither of these charges are negotiable.

The bottom line when leasing is to negotiate the two main profit centers of your deal, the money factor and selling price. Find out the buy rate money factor for the vehicle that you want to lease and make sure that the dealer you are working with uses it to calculate your lease payment. Also, make sure to negotiate an attractive selling price, just as you would if you were financing or paying cash.

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CarMan@Edmunds

Hi manabout. The dealer invoice price of the car that you described is currently $41,825. That means that you are getting this car for right around $1,000 over invoice, which is very reasonable. The money factor that you were quoted looks good as well. So the two negotiable aspects of this deal look good to me.

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CarMan@Edmunds

Hi robray222000. If you were to lease a 2006 BMW 325i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00285 and 61%, respectively. The numbers for an otherwise identical lease of a 2006 330i are .00225 and 62%. As far as these cars' selling prices go, 1% over invoice amounts to less than $500. I personally doubt that you will be able to get either for that low a price. You may want to stop by the following discussion to see how much other community members have paid for similar cars recently: "BMW 3-Series: Prices Paid & Buying Experience".

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CarMan@Edmunds

Welcome Tex330. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of a 2006 330i are .00225 and 62%, respectively. Individual dealers do not have the authority to lower these numbers, but they can mark them up to add additional hidden back-end profit to deals, so make sure that these numbers are used to calculate your car's lease payment. The only negotiable aspect of your deal is your car's selling price (and of course making sure the money factor is not marked up). The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing. The exact payment of your car will vary depending upon its full MSRP and selling price. If you provide me with these numbers, I'd be glad to estimate what your lease payment should be for you.

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tex330

Car_man - thanks for the reply! Sadly, I emailed my 'trusty' salesman at the local bmw dealer and asked him about what his money factor is this month and he comes back with something to the effect of: the rate is 0.0025 and that is fixed by bmw, which we do not change. He's got a little bit of a lie going, right? I figured he might know better if i came at him with the right numbers, but i guess not.

The 330i that I have priced had an msrp around $42k and an invoice around $38, so i assume i could get a dealer down to around $40k to purchase. If i'm looking at 36/15, can you help me estimate my lease payment?

Thanks again for your help, Car_man..
Tex330

zmannj

This deal was just offered to me:
330i MSRP 43,920 +6% tax
sale price 41,757
2500 down
36/15 lease
62% residual- money factor .002400
625 fee of some kind
599/month
Good, bad ugly?
Thanks

wantbmw

Hello Carman,
Could you please tell me if the monthly payment the dealer quoted me is correct? I have tried several calculators on the Internet and none of them come up with payment the dealer gave.

330i, Premium, Sport, Nav, Satellite Radio Ready
24 month lease
15K miles per year
$626.99 - Monthly Payment with Tax Included
$44920 MSRP which is what Edmunds has if listed for.
$42000 Price
.00265 Money Factor
$32791.00 (.73)Residual
$335 Govt Fees
$1149.81 Taxes Central California 7.25%
$45 Doc Fee
$825 Acquisition Fee which seems like $200 over
$869.85 Cash Reduction
Down payment - $1900

Cap Cost $42870
Cash Reduction $869.85
Net Cap Cost $42000.15

Under the payment area they have a Disposition Fee of $325 and I don't know if it is included or not and when I tell them the Disposition Fee is suppose to be at the end of the lease if ever I can't get the same answer twice. Another dealer said BMW never charges that fee unless the car is trashed when returned.

thanks

kityluvstigr

Carman...

Is this a decent lease?

bmw 325i
$31500--base model with automatic transmission
residual 20750
36 months
12000 miles
1500down

payment 478.00

what do you think?

Thanks

kityluvstigr

Hi Carman,

Can you please help...

I am trying to lease a 2006 bmw
just basic model with automatic transmission

Price 31500.00
Term 36
Rate 3.25
MSRP..32945.00
Residual .63
Adjusted Residual Value 20755.35
12k
ACQ Fee 825.00
Trade 18000.00
Payoff 18000.00
Govt. Fees 125.55
Taxes 843.75
Doc Fee 50.00
Down payment is 1500.00 plus first payment

What do you think the monthly payment should be?
They are saying the payment is 478.98

Is this true?

Really appreciate your help.

kityluvstigr

anatomize

Hi Carman

How's this?

325i, automatic, prem. pkg, metallic, xenons
MSRP 37,120
Cap cost: 35,500
residual val: .64
10,000 miles
MF = .00285 (w/ security deposit)
$537/month (including tax)

Also -- other dealers have said they'll do a money factor of .00225 on the 325i (though they haven't quoted me w/ a monthly yet). The dealer who quoted the above said that they can't do less than .00285 on a 325 and that the others are lowballing? Any truth to this?

desi1

Hello,

I have 2 questions in mind before deciding on leasing:

1. Can a dealer refuse to sell the car to me at the end of my 3-year lease, especially when it is in excellent condition with very low miles and the market values is certainly higher than the lease-end purchase price?

2. If I decide to lease a BMW for 3 years and then buy it at the end of the lease with a loan for 4 years, would the total amount out of my pocket be lower or higher than if I were to buy it with a 7-year loan (using the same interest rate/money factor)? Is there another drawback to lease-then-buy option versus buy besides having to make a car payment for 7 years?

As usual, I sincerely appreciate all the help I have gotten from this forum.

Thank you.

wco81

Acquired through Edmunds lead:

325i with:

Premium Package
Steptronic
Comfort Access
Xenons
Satellite Prep.

Selling Price: $35,430
MSRP: $37,620

Driveoff: $934 +650 $ (Refundable Security Deposit)
Monthly payments: $556 + tax

2-year, 10k miles per year lease.

Sales tax rate in my county: 8.25%

OK, the Refundable Security Deposit seem high at all?

Also, don't know the current BMWFS money factor or residuals but those may be marked up too.

atfryar

Hi Carman,
What are the current residual %'s and money factors for a 2006 325xi @ 36 months and 12K & 15K? Does BMW offer a shorter term, like 24 or 27 month? If so, can you post those numbers as well? How long are the current money factors good for?

This forum is great and has proven to be a tremendous help. Thanks!

wco81

A 2 year/10k lease on a 325i with metallic paint, Xenon Headlights, Steptronic transmission, Premium Package and Comfort Access.

MSRP=$37,545
CAP=$35,485
MF=.00325
Residual=74%

No payments or driveoff specified.

Car_man, where are you?

macdad

What is the current MF and Residual for both 325i & 330i with 12k miles, 24 and 36 month lease. I used the 525 forum to lease my 2006 525 and it worked perfect. Went to the dealer with a spreadsheet with different options and was in control the entire time.

Thank you

CarMan@Edmunds

You're very welcome, Tex330. Unfortunately it does appear as though the dealer you are working with is misleading you about this car's buy rate money factor. Even if you were having your car's security deposit waived it would only increase its money factor to .00240 (.00225 + .00015).

According to my calculations, if you were to lease a 2006 BMW 330i with an MSRP of $42,000 and a selling price of $40,000 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 $537.

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CarMan@Edmunds

Hi zmannj. The money factor that you were quoted is right in mine with BMW Financial Services' buy rate for this car...if you are having your security deposit waived. You would be better off not making the $2,500 down payment though. If your leased vehicle is totaled in an accident or stolen, your down payment will essentially disappear. The selling price that you were quoted appears to be around $1,000 over invoice, which isn't bad. If you are in an area with a decent level of competition, you might be able to beat it by a couple hundred dollars, but you might not. Overall I would say that this is a fair deal.

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CarMan@Edmunds

Hi wantbmw. The money factor that you were quoted to lease this car, .00250, is in line with BMW FS' buy rate money factor for it, assuming that you are having its security deposit waived. You probably would be better off leasing for 36 months instead of for 24. Not only would your payment be lower because you are spreading out the initial depreciation hit out over more payments, but the money factor for the 36 month term is lower. BMW Financial Services' current buy rate lease money factor for the 2006 330i is only .00225 for consumers who pay a security deposit at lease signing and .00240 for consumers who want to have their vehicle's deposit waived. As you suspected, this dealer is also attempting to mark your car's acquisition fee up $200.

Let's calculate what this car's lease payment should be using BMW FS' buy rate money factor and see what we come up with. According to my calculations, if you were to lease a 2006 BMW 330i with an MSRP of $44,920 and a capitalized cost of $42,000 through BMW Financial services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $606 with the payment of a security deposit and $617 without. The payment for an otherwise identical 36 month lease would be $551 with a security deposit and $561 without. You definitely should not pay the disposition fee at lease signing. This is an end of term charge, if you have to pay one at all.

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CarMan@Edmunds

Hi kityluvstigr. Is the $31,500 that you mentioned this car's MSRP or selling price? I really need both in order to give you an opinion of this deal. Having both of these numbers will enable me to see how much of a discount you are being given and to use BMW's actual lease program to estimate what your monthly payment should be. Let me know and I'll tell you what I think.

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schandl

Hello,

I've been offered the following for a 2006 325 lease and was wondering if it looked like a good deal...

33,800 MSRP, with my cost being $31,642.

$1,800 drive off costs for me, with payments being $512 per month for 24 months, including tax.

12,000 miles per year lease. Does this sound like a decent deal?

Thanks

CarMan@Edmunds

Hi kityluvstigr. Let's work up a payment on this baby and see what we come up with. Wait, I just noticed that you never actually mentioned what model this is. This is an important thing to know because BMW's lease program varies by trim level. For now I will assume that you are talking about an '06 325i. Let me know if I am wrong. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $32,945 and a selling price of $31,500 through BMW Financial services right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $455. If the payment that you were quoted includes taxes, it's fairly close to this. If not, the dealer's got some explaining to do. When you lease this car, make sure that you don't pay more than $625 for its acquisition fee. That is BMW's base fee. The dealer that you are working with is marking it up $200 to add additional hidden profit to your deal.

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CarMan@Edmunds

Hi anatomize. A base 2006 BMW 325i has a spread of a little over $3,100 between its full MSRP and dealer invoice prices. You are being given a discount of $1,600 on the car that you are considering. If you are in an area that has a decent level of competition, I personally would not be surprised if you were able to beat this price by shopping around. Check out the following discussion for additional feedback on the price that you were quoted: "BMW 3-Series: Prices Paid & Buying Experience".

I don't see how any dealer would be able to do a .00225 money factor on this car unless they got you to give them additional security deposits. .00285 is BMW FS' current buy rate for this model (and it's not very attractive either).

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CarMan@Edmunds

Hello desi1. Lessees always have the right to purchase their vehicles at the end of their deals. This transaction is between you and the bank that you are leasing it through, which in this case would most likely be BMW Financial Services. Your dealer cannot refuse to let you purchase your vehicle.

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CarMan@Edmunds

Here you go, atfryar. If you were to lease a 2006 BMW 325xi through BMW Financial Services right now for 36 months with 15,000 miles per year its buy rate lease money factor and residual value should be .00285 and 60%, respectively. You can lease this car for 24 or 27 months. Its 24 and 27 month numbers are currently .00285 / 70% and .00285 / 69%. The residual value for leases with only 12,000 miles per year would be 2% higher. BMW's current lease program is scheduled to run through the end of the month.

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CarMan@Edmunds

Hi wco81. The selling price that you were quoted looks reasonable to me, but you might be able to beat it by a little bit by shopping around. The dealer that you are currently working with is trying to mark this car's money factor up though. BMW Financial Services' current buy rate for the '06 325i is only .00285 (which is bad enough).

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CarMan@Edmunds

Hello macdad. If you were to lease a 2006 BMW 325i through BMW FS right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00285 and 73%, respectively. The numbers for an otherwise identical 36 month lease should be .00285 and 61%. The 2006 330i's 24 month / 12k numbers are .00250 and 73%. Its 36 month / 12k numbers are .00225 and 64%.

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CarMan@Edmunds

Hello schandl. This deal appears to be a little over $1,000 over dealer invoice, which is a reasonable price for this car. Using BMW Financial Services' actual lease program, I estimate that its zero down, pre-tax, 24 month, 12,000 mile per year payment should be around $451. As you can see, the payment that you were quoted looks too high. Make sure that the dealer you are working with is using BMW FS' current buy rate of .00285 to calculate your car's lease payment. Dealers often try to add additional hidden profit to deals by marking vehicles' money factors up.

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davidt1

Hey Car_man,

You helped me out three years ago. Your help and guidance was instrumental in putting together a great lease deal on my 325cic. Well, I'm ready to do it again. What do have for MFs and residuals for an '06 325cic for 36M/12K and 36M/15K?

Thanks
David T

davidt1

I forgot to also ask if there are any dealer cash back incentives this month.
Thanks
David T

txbelle

The dealer wants to charge me a money factor of .00265 to lease a 330i for 36 months with 10,000 miles, plus a security deposit. When I conveyed to the dealer that BMW's money factor is .00225, the salesman got very defensive and claimed that since that is the rate that BMW loans money to the dealer, it is like invoice price and the dealer is justified in marking it up to make a profit. I have moved on to another dealer based on the less than respectful treatment by the salesman, but is it really unreasonable to demand a lease at the BMW money factor with no mark-up?

bazsa

I noticed on the X3, the residuals for the 39 mo lease is the same as the 36. Does anyone know if this special program is available on the 325i/330i?

Thanks

magicmike2

I went to the local dealer yesterday and the salesman wanted to charge me between .00310-.00325 mf on the 06 325i. When I questioned these numbers he said they have no room to negotiate because these come from BMWFS. My understanding is that the newest rates are .00285 with 63% residual for a 12k/36 mo lease. Is there something that I am missing here? The sticker on the vehicles I am looking at is around 36-38K depending on options. What would be a good lease on this vehicle with nothing down? Thanks.

nse325

Hi Car_Man, this forum has been so helpful. I am negotiating a lease on a 325xi, jet black, automatic, and would like to get your advice. I think I have a good deal, but wanted to check with you. Here is the deal so far:

MSRP $34,770
Price $33,379
Miles 12,000/yr.
Term 36 months
Sec. Dep. $0
Bank Fee $625

Payment $546.18/mo. including tax (8%)

Amount due at signing is 546.18 plus registration fee of $130, document fee of 104.95 and inspection fee of $10 which should be $791.13, but for some reason is showing at 803.63. Thanks for your help.

newcar45

Just wondering how good a deal this is. I try to avoid leasing because I find the numbers too confusing.

$433 Monthly Payment Calculate Other Monthly Payments
36 Month Term
$2500 Down Payment
$450 Security Deposit
10000 Annual Mileage
Restrictions Lease based on a 2006 325i Sedan equipped with Metallic Paint and Sport Package.
Comments $3,383 due at signing. Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement. Tax, tags and insurance are extra.

anaarc

Hi Newcar45:
I'm looking at same car 325i and need to get it tomorrow. Metallic paint, maybe not sport package, and 36 months/10K miles as well. Can you tell me how you ended up on lease payments and down please?

stikman140

I need to know what the money factor is right now on a 36 months / 45k miles is. the car has everything in it the msrp is 47325 aprox. I want to do nomoney down any ideas on what the payment would come out to and what the details would be........

Thanks

CarMan@Edmunds

Hi everyone. Those of you who are in the market for a new 3-Series will be interested in the fact that BMW just made an unscheduled enhancement to its lease program a couple of days ago. I will answer any questions that are out there using the latest and greatest numbers. Let me know if you have any other questions.

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CarMan@Edmunds

Wow three years ago, huh, David? You're making me feel old . Welcome back. Here is the latest and greatest info for the car that you are considering leasing. If you were to lease a 2006 BMW 325CiC through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 58%, respectively. This car's 12,000 mile per year residual value would be 2% higher.

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CarMan@Edmunds

Unfortunately, David, the only vehicle that BMW is providing dealer cash on this month is the Z4.

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CarMan@Edmunds

Hi txbelle. BMW dealers try to mark up vehicles' buy rates all of the time, but you are absolutely not being unreasonable in insisting that the dealer you are working with use this car's buy rate to calculate its monthly payment. If this dealer won't do so, there is a very good chance that you will be able to find a dealer that will.

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CarMan@Edmunds

Hi bazsa. I don't believe that BMW Financial Services is offering 39 month leases on the 2006 3-Series right now, like it was on the X3.

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CarMan@Edmunds

Hi magicmike2. If you haven't finalized your lease yet, BMW has enhanced its money factors on this car even further. Its current 36 month buy rate for the 2006 325i is .00250. Make sure to insist that this is the rate that is used to calculate your car's payment. BMW dealers like to mark vehicles' money factors up, but if you are in an area that has a decent level of competition you should be able to convince this or another BMW dealer to calculate your car's monthly payment using the lowest possible money factor.

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CarMan@Edmunds

I'm glad that you enjoy this discussion so much, nse325. A base 2006 BMW 325xi has a spread of nearly $2,800 between its full MSRP and dealer invoice prices. You are bring quoted a discount of only $1,391. If you are in a market where there is a decent level of competition, aka a couple of BMW dealers within driving distance, you may be able to get a better price than this. Try stopping by the following discussion to see how much other community members have paid for similar cars lately: "BMW 3-Series: Prices Paid & Buying Experience". When you have negotiated as low a price as possible on this car, have the dealer that you are working with use BMW Financial Services' new, improved buy rate money factor of .00250 to calculate its monthly payment.

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CarMan@Edmunds

Hello newcar45. 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 give you my opinion of this deal if you let me know what these numbers are.

One thing that I notice about this lease is the large down payment. It is not surprising given that BMW assumes a $2,500 capitalized cost reduction on every vehicle that it leases to make their monthly payments look more attractive. Consumers can and should lease any vehicle that they want without making any sort of cap cost reduction.

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magicmike2

What are the newest money factors and residuals for 325i/xi and 330i/xi for 36 mo and 12k? Thanks for your help. This site has been a huge help in learning about the best lease rates.

robray222000

Hey Car_man,

What's the latest and greatest program on a 330i, 15K per year?

CarMan@Edmunds

Here you go, stikman140. If you were to lease a 2006 BMW 330Ci through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00100 and 57%, respectively. Your monthly payment for this car will depend upon its selling price. If you give me an idea of what price you expect to pay, I'd be happy to calculate a lease payment on it for you. You should be able to get an idea of what sort of price to expect by visiting the following discussion: .ef0f830.

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CarMan@Edmunds

I'm glad that you find this site so helpful, magicmike2. If you were to lease a 2006 BMW 325i or 325xi (their programs are the same) through BMW Financial Services right now for 36 months with 12,000 miles per year, their buy rate lease money factors and residual values should be .00250 and 63%, respectively. The numbers for otherwise identical leases of '06 330i and '06 330xi should be .00195 / 64% and .00175 / 63%.

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