BMW 3-Series Lease Questions

chet21

Hi I was wondering to those that have leased recently. Does the lease show up on the credit reports? Since its not a loan i figured it won't get reported to the bureaus.

I'm trying to refinance my house early next year and don't want anything else showing up as new credit. thanks for ur reply.

wrightrd

Car_Man: We appreciate all of the help you provide on this forum - the information is invaluable.

Any update on the October program for 2007 3 series coupe leases? Money factors and residulas for 328i coupe and 335i coupe for 3 year 12k and 3 year 15k leases would be appreciated.

Kydfx - does car_man still participate in this forum?

Thanks!!

boardrider

Car_Man, Thank you for all the valuable information. Please tell me what you think of a deal I'm looking at. We ordered a 07 328i coupe in August and it is now in. MSRP= $37,270 (The only option is auto trans) The dealer wants to sell it for $500 back of msrp. We are thinking of a lease, the offer to us from the dealer is a lease factor of 2.30, 36 months, 12 k miles a year. What do you think of the price and terms. The dealer is telling us that as this car is "stripped" they are making less profit on this sale? THANKS

scottyb1

Anyone already pick up a 335i? If so what kind of payments have you gotten? I'm trying to stay around $600/mo with little down. Is this even reasonable? Thanks in advance for the help!

pelter

Hi, I saw the recently posted October lease factors and wanted to ask whether those are considered "wholesale" and thus marked up or whether they can they be made available to consumers. The lease factors in question are for 2006 330i (0.00150) and 2006 325i at (0.00225). Therefore, my question relates to what lease factor I could realistically expect out of a dealer for a 36 month 2006 330i (preferably) or 325i.

Thanks!

Dave

CarMan@Edmunds

You're welcome, reloprincess. If you make a $3,500 down payment on a leased vehicle, the bank that you are leasing through gets to keep that money regardless of what shape your car is in when you turn it in. If you pay that much in additional security deposits though, you would get that money back assuming that your leased vehicle does not have any excess wear and tear or excess mileage. Most manufacturers' captive finance companies, like BMW Financial Services, are fairly lenient when it comes to evaluating the lease-end condition of vehicles. Of course, if your car is in rough shape you will have to pay, but banks that are associated with automakers don't want to nickel and dime their customers to death and risk making them so angry that they don't want to lease another one of their products.

Car_man
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CarMan@Edmunds

Welcome back, wrightrd. I'm glad that you find this site so helpful. Here's the latest informaiton that you are looking for. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 328i Coupe with 15,000 miles per year are .00200 and 58%, respectively. The numbers for an otherwise identical lease of a 2007 335i Coupe are also .00200 and 58%. If you were to lease either of these cars with only 12,000 miles per year, their residual values would be 2% higher.

Car_man
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CarMan@Edmunds

Hello fishbone1. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 335i Coupe with 15,000 miles per year are .00200 and 58%, respectively. If you were to lease this car with only 12,000 miles per year, its residual value would be 2% higher.

Car_man
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CarMan@Edmunds

Greetings rebadeb. 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.

The Cliff's Notes version of those articles is to find out the MSRP, selling price, and money factor for the vehicle that you want to lease. These numbers will enable you to assess how good a deal you are getting. The selling prices of leased vehicles are negotiable, just as if you were paying cash or financing. Once you find out these numbers, let me know and I'll tell you what I think of the offer.

Car_man
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CarMan@Edmunds

Hi dprecocious1. The money factor that you were quoted for the 2007 328i Coupe that you are interested in is higher than BMW Financial Services' buy rate lease money factor for it (.00285). However, I believe that BMW Fs charges higher money factors for leases on vehicles that are sold through its European Delivery program than it does on vehicles that are delivered normally. This may help explain why the money factor you were quoted is higher. Also, if you are having your vehicle's security deposit waived, your car's money factor will be .00015 higher.

Car_man
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CarMan@Edmunds

Hi be17jamln. $500 over dealer invoice is a pretty good price for this car. The money factor that you were quoted is right in line with BMW Financial Services' current buy rate for this car, too. Both of the main profit centers for dealers, the selling price and money factor, look good to me. The only aspect of this deal that I have a problem with is your car's acquisition fee. BMW FS' current base lease acquisition fee is only $625. The dealer that you are working with is marking up the base fee by $200. This means that you are actually paying more like $700 over invoice for your car instead of $500 over. See if you can get them to cut the extra $200 out of the deal.

Car_man
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CarMan@Edmunds

Hi chet21. In a way, leases actually are very similar to loans in that the bank that you are leasing through is laying out all of the money for the vehicle that you are leasing. Leases definitely do show up on credit reports.

Car_man
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CarMan@Edmunds

Hi wrightrd. Here's the information that you're looking for. BMW Financial Services' current buy rate lease money factor and residual value for s 36 month lease of a 2007 BMW 328i Coupe with 15,000 miles per year are .00200 and 58%, respectively. The numbers for an otherwise identical lease of a 2007 335i Coupe are exactly the same. If you were to lease these cars with only 12,000 miles per year, their residual values would be 2% higher.

Car_man
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CarMan@Edmunds

You're welcome, boardrider. I am not all that familiar with what the market is like for the 2007 328i Coupe yet. $500 is not much of a discount, but that might be what the going price for this model is at this time. You may be able to get an idea of how much you should pay for this car by visiting the following discussion: "BMW 3-Series: Prices Paid & Buying Experience".

The money factor that you were quoted for this car is a little high. BMW Financial Services' current buy rate for it is .00200 for consumers who pay a security deposit at lease signing and .00215 for consumers who opt to have their money factor waived. If you're only getting a $500 discount on this car, at least make sure that the dealer you are working with is not marking up its money factor.

Car_man
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CarMan@Edmunds

Greetings scottyb1. I would be happy to give you an idea of what sort of monthly payment you can expect on the car that you are interested in. All I need from you is the full MSRP of the exact car that you are interested in. It would be great if you were able to provide me with its selling price as well, but if not we can just assume some sort of set discount. You can look up the MSRP of this car in the following section of this site: Edmunds.com - New Vehicle Pricing.

Car_man
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CarMan@Edmunds

Hi Dave. The money factors that you saw posted are BMW Financial Services' buy rates, or wholesale rates as you put it. BMW dealers are allowed to mark these rates up to add additional profit to deals, and many dealers do so. Consumers who know what the buy rate for the vehicle that they want should be are usually able to get dealers to use it to calculate their vehicles' payments though.

Car_man
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scottyb1

Thaks Car man, I would estimate about $42k for the selling price. I'm looking at an '07 328i coupe. Thanks for all your help.

pelter

Car Man,
Thanks so much for the info. Just out of curiosity, with the 2006 330i lease factor being at .00150 for Oct, is there any minimum mark up you would assume to allow for the dealer's profit? Thanks again!

Dave

usctrojan99

I ended up getting a 36 month lease (15,000 mile) on a 2007 328i coupe - Monaco Blue, Leatherette (I actually like the leatherette, and it was a lot less than leather), automatic, bluetooth, bmw access, sport package - 18'alloy wheels, premium sound, tinted windows, (and i know there are some other options that I am forgetting). I negotiated to about $41,777, with invoice being $$42,500 or so.

I had a car that had a loan balance of $11K, and was not in the greatest shape. The KBB on the trade-in was about $12K. The dealership paid assumed the loan balance to pay-off and took my trade-in.

I paid $1K down w/ $600/mo + tax for monthly payments.

I wish I knew about this site before I made the purchase to compare, but i did some basic lease calculations to get the deal. I paid a little more than I should have, but given that my work gives me a $400 car allowance/month, I thought life could be worse.

The dealer (in az) was not very flexible with price. I actually wanted the 335 coupe, but the dealer said it would have to be ordered and a wait of 8-10 weeks, which is more like 3 months. The dealer only had two 328 coupes on the lot. No 335s.

Also, I guess dealers don't include floor mats with cars. I did not know this. If you guys do buy a car just make sure you negotiate floor mats as I didn't.

This was my 1st time leasing, and I've learned some valuable lessons.

evincent

I am looking to escape 2004 330i lease five months early. Owe total of $2625 on the current lease. Looking to turn in the 2004 and lease a 2006 330cic, performance pkg, xenon, bmw assist. On a 15k lease with $2500 down plus inceptions (total $4350) dealer is offering 24 month @ $728/mo or 36 month @ $754/mo (both includes tax). Thanks.

isamu66

Hi Carman,

You were a big help for me when I did get this lease about a year ago, but now I am looking to possibly exit this lease early.

I recently got a job with a car company (not BMW) and will now have the opportunity to take advantage of a great internal deal. As such, I am thinking about exiting my current lease.

Back in November 2005, I leased a basic 2006 325i. The only option is the Automatic Transmission.

I think I negotiated a good deal on this car. Here are the specifications:

1) 36 months/15,000 miles / Residual 62%
2) 0.0025 money factor (6% equivalent)
3) $625 acquisition fee/$500 security deposit
4) MSRP $32,945 / Selling Price $31,210
5) Total after-tax monthly payment: $484.50
6) Entered into lease November 2005. ~25 months remaining.
7) 2006 325i Black/Tan

As far as I can see it, these are my options:

1) Call and negotiate with the dealership to turn in the car early. Any insight to this process would be a big help.
2) Check out swaplease.com. However I am worried that I will still be liable for any damage to this car from whoever takes over the lease. Is this true with BMWFS?
3) Purchase the car from BMWFS and sell the car outright.

What do you think Carman?

Thanks again for your help,

Charles

new2beemer

Hey All,
I am planning to lease a 335i. This forum has been of great help. the following is the quote from a North CA dealer.
335i: Prm Pkg, Sprt Pkg, Nav, Comfort Access, metallic paint
Selling Price: $46,420.
36 mo lease, 12K miles per year
Money Factor: .00255
Residual: 60%
Monthly payment: $788.01
Drive-off cost: 2112.54( $45 documentation fee+ $825 Acquisition fee + $387 License Fee + 1st month payment+ tax)


This deal was offered with mild negotiation efforts.

This is my first time leasing.

what do you guys think ??

The Car is physically NOT on the lot yet. The dealer estimated the car to arrive in about 6 weeks

thanks

kapier1

I'm looking at leasing 07 328i Coupe. I was offered a monthly payment of $732 and here are the details: MSRP: $41,895
Balloon: $25,137
Cash Down: $1,500
Term: 36 months
Miles: 12k/yr
Residual: 60%
Rate: 7% (w/BMW Financial)
Amt. Financed: $44,069.03

Also, is the balloon my best option for a lower payment?

Thanks! Kelly

ubermu

Hi Car man,

Are the rates for the 06 325i still 0.00225? What about residual for 36 mo?

Also, what is the normal disposition fee? Will they tag that on at the end, or at the beginning? Will they try to milk you for that like the acquisiton fee?

achiever

Okay, I am going in on Thursday (in SoCal) with the intent of driving home in a 2006 325i or 330i. I feel solid on the capital cost of the cars (near invoice), but I want to be sure or the current money factors and residuals. I've searched for them as to not be a bother but haven't seen them since a post a month ago. So, what are the current money factors and residuals?

Also, if anyone could please post their recent SoCal leasing numbers for the 2006 325i and 330i it would be a HUGE help. Thanks so much in advance!!!

ahdanna

Hi Car_man & kyfdx,

Do you have the money factors and residuals on 328xi and 335 coupes for 2 years 24/30K and 3 years 36/45? I will likely use ED, if that makes a difference.

Thanks once again!
ahdanna

ahdanna

Forget about the 335. I'm focusing on the 328xi. Thanks!

robray222000

328xi Coupe=

2 yrs 15K miles= .00200 mf/70% residual
3 yrs 15K miles= .00200 mf/58% residual
4 yrs 15K miles= .00319 mf/45% residual

add 2% to the residual value of the vehicle for 12K miles

robray222000

How much will the money factor be affected by having a credit score of around 650?

ahdanna

Thanks robray!

mdiver65

Hi All,

I'm relativley new to leases but have been reading up on them as of late. It sounds likes BMW (and most others) are infamous for requiring $$ down.

That's why I was shocked to find an advertisement in the paper today for "Zero Down" (I know that doesn't mean $0.00 down!!) leases from Scottsdale BMW.

I am trying to figure out if this is a "good deal." They are offering a 2006 BMW 325ia for $425+/month (36 months). Also, a 2007 525ia for $499+ (24 months).

Due at signing is 1st months payment, tax, license, acquisition fee, ref security deposit, and $388 doc fee. No total "down" is provided.

Basically, I am trying to avoid putting anything down like $2500 I see so much. I know total fees, payment, will be over $1K probably. Better than $3500.

Can one enlighten me if this is a good deal and what I should be looking for it not. THANKS for all your help out there in leasing land!!

Mark in Phoenix

macar

I'm close to leasing an 07 328xi, but am hesitating on the money down. Has anyone had recent experience with leasing with BMW without money down, or very little?

Also, what kind of money factors have others got? Right now they are at .00324. Thanks

achiever

I just leased a 2006 330i in SoCal and paid only the first month's payment, DMV fees, and $8 tire recycling fee. I would recommend this way of doing it. I still received the base money factor and the acquisition fee was the base $625 and was rolled into the lease.

shipo

I've leased two BMWs (not to mention a half a dozen other cars) and never put a dime down on any lease. I also have any number of friends and business associates who lease their cars and no one that I'm aware of have ever put anything down on their cars.

As far as I can tell, the only reason for the "down" payment as seen in most advertisements is to be able to splash a low monthly payment on the page.

Best Regards,
Shipo

CarMan@Edmunds

No problem scottyb1. OK, what is this car's MSRP? This is just as important as the selling price when calculating a lease payment.

Car_man
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CarMan@Edmunds

You're welcome, Dave. Most consumers who know what the buy rate lease money factor is for the vehicle that they want are able to find a dealer that is willing to lease them using it.

Car_man
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CarMan@Edmunds

Hi evincent. Why do you want to get out of your current lease early? Doing so is usually fairly expensive. You probably would be much better off waiting until the scheduled end of your current lease to get a new car. If for some reason you really can't wait I would be happy to give you my opinion of the lease that you are considering. In order to do so I need you to provide me with the selling price and MSRP of the car that you are interested in. 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. Let me know what these numbers are and I'll tell you what I think.

Car_man
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CarMan@Edmunds

Welcome back, Charles. Why do you want to get out of your lease so soon? If this is what you really want to do, there's no need to involve the dealership. The cost of getting out of your current lease is completely between you and BMW Financial Services. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values" Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

Car_man
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CarMan@Edmunds

Hi new2beemer. What bank is the lease that you were quoted through? It does not appear to be BMW Financial Services. BMW FS' current 36 month, 12,000 mile peer year buy rate lease money factor and residual value for a 36 month lease of a 2007 335i with 12,000 miles per year are .00270 and 63%, respectively. Plus BMW FS' acquisition fee is only $625, instead of the $825 that you were quoted.

I would be happy to share my thoughts on the selling price that you were quoted on this car if you provide me with its full MSRP. This number will show me how much of a discount you are being given on it. You also may want to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 3-Series: Prices Paid & Buying Experience".

Car_man
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CarMan@Edmunds

Hi ubermu. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2006 325i with 15,000 miles per year are .00225 and 61%, respectively. I believe that BMW FS charges a disposition fee of $350. I do not believe that dealers have the ability to mark-up BMW FS' disposition fee like they can mark-up its $625 acquisition fee.

Car_man
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CarMan@Edmunds

Hey ahdanna. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2007 328xi Coupe with 15,000 miles per year are .00200 and 70%, respectively. The numbers for an otherwise identical 36 month lease are .00200 and 58%. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2007 335i Coupe with 15,000 miles per year are .00200 and 69%. The numbers for an otherwise identical 36 month lease are .00200 and 58%. Having said this, if you choose to get either of these cars through BMW's European Delivery program, its money factors will be different. I believe that BMW FS' money factors for leases through that program are higher, but I am not sure how much higher. Perhaps someone else out there knows.

Car_man
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CarMan@Edmunds

Hi mdiver65. No banks actually require consumers to make down payments on leases. Consumers can and should lease any vehicle that they want without making any sort of capitalized cost reduction, aka down payment. The only reason why BMW advertises vehicles with $2,500 down payments is to make their monthly payments look more attractive to consumers who only focus on that number.

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 the lease that you saw advertised if you let me know what these numbers are.

Car_man
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CarMan@Edmunds

Hi macar. You can lease any BMW that you want without making any sort of capitalized cost reduction. All consumers who lease BMWs through BMW FS have to pay at lease signing are their vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, a $625 acquisition fee, and any required state taxes or fees. BMW FS will waive its security deposit requirement in exchange for an increase of .00015 in the money factor that is used to calculate your vehicle's monthly payment. If you don't want to pay the acquisition fee, you can roll it into your vehicle's cap cost or pay an increase of .00035 in your vehicle's money factor to have it waived (I'd personally rather roll it into the cap cost).

BMW Financial Services' current 36 month buy rate lease money factor for the 2007 BMW 328xi is .00285. Make sure that you don't pay any more than that. Dealers that try to charge you a higher money factor are attempting to add hidden back-end profit to your deal.

Car_man
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mdiver65

Hi Car Man,

Thanks for the reply. I was quoted $33,420 as both the MSRP AND the selling price for the 325ia (the one I'm more interested in). Definitely room for negotiation.

Thoughts? THANKS for all your help!

Mark

wrenchrad

CarMan: Thanks for all your previous posts educating us about leasing. I'm shopping for a new 2006 330i or 2007 328i. Heard from a dealer today that BMWFS has dropped money rates on 2006 330i to 0.00175 with residuals of 72% at 24mo and 63% at 36mo to clear them out (12K miles/yr). Extracting this information took a long time. I'm interested in comparing the new Nov. 2007 rates on a new 2007 328i, 328ci, and 335i. Is there a link somewhere where these are published with their corresponding residual values? I need only 12K per year. Thanks.

sting814

I was hoping to lease a coupe soon. I contacted a few dealers around Austin and they refuse to go below MSRP cause they dont have any cars in stock and theres a wait time of at least 10 weeks for the car to be delivered after order.

I was curious if anyone has managed to negotiate the prices down.

Thanks!

tennberg

Hello Car Man,

I am looking at leasing a 2007 328xi within the next few weeks, so I will be using the November money factor in my calculations.

Two questions:

1. Edmunds.com doesn't list the invoice price of a 2007 328xi, saying it is "N/A". Is this price available anywhere? It would certainly help in negotiating the cap cost. Also, the invoice prices for some optiosn aren't listed as well. Is there anywhere I can fill in those gaps?

2. What are the November money factors for the 2007 328xi, be it a 24 or 36 month lease?

bidarian

I would like to lease a 2007 335i sedan with MSRP of $41,470 for 36 months at 12K miles per year. The dealer is promising that I can get the car through ED program for a capitalized cost of about $38,000 (additional 1.4% off on top of 7% ED discount). I don't want to pay any cap reduction. Can you tell me what my monthly payment and total drive-off would be for a lease through BMW Financial at the current November 2006 rates?

I won't order the car for several months, so I am trying to get an idea what to expect. How do the residual values and MF change as you get closer to the end of a model year? My current A4 lease expires in September 2007, but I don't think I can order a 2008 model if I am to pick up the car in Munich 6-8 weeks before that time. So I would be looking at a late 2007 model. I don't know if monthly payments become lower or higher as you approach the end of the model year. You would think that the payment goes down.

Thank you!

kablaam

Hi All:

Just received a quote and wanted to know if it was good before I ink the deal. Your input would be greatly appreciated.

2007 BMW 335i sedan
Automatic
Premium Package
Sport Package
Paddle Shifters
Metallic Paint

36 months/12k miles/$537 per month

MSRP: $45,295
Cap Cost: $43,945 plus tax

Fees: tax, 1st payment, security ($550) and bank fee ($625) and MV fees ($100) upfront.

theprogrammer

Hi everyone, I am really interested in leasing a 2007 328i sedan and the deal announced in bmwusa.com looks very attractive. BUT, my credit score is only in the 640-650 range (missed a couple of payments 5 yrs ago when i was in college, but have been perfect since then). I was wondering if I'll be eligible for all these attractive lease payments (ie: the low money factors) with this credit score. I really would appreciate any information you have on this. Thanks in advance!