BMW 3-Series Lease Questions

sthavorn

Hi kablaam, Where did you get your quote from?. If the is really true then you really get a huge discount of the MSRP around $3700 and your cap cost would have been around $41500 not $43945 + tax. Make sure you get the car with those packages and with $1812 down payment. Let us know.

kablaam

Hi Sthavorn:

I am relatively new to leasing so excuse the ignorance.

What he has stated is 43945 (not including tax). Tax will be included in out the door, which is 1700 plus 1812 in fees, or about 1500.

If I rolled tax into payment, it would be about 590/month, with 1812 out of pocket.

I believe residual is 63% and MF is .00175??(or somewhere near there). But it does seem too good to be true and I am going to the dealer tomorrow to check the deal out and get it in paper. Once I do(and if it is legit) I will give you his contact info.

With the clarification, do you still think its ok?

kablaam

Out the door is 3500 not 1500.

mcla1

Hello all,

I just received an email from a bmw dealer saying they have these new 28 month specials on 2006 325 convertibles. Does anyone know what the money factor and residuals are for 10k miles per year?

Thanks

sthavorn

Nect cap cost, money factor and residual are the keys. Check this out: http://leaseguide.com/lease08.htm

wrightrd

Car_Man: Thanks again for providing the numbers for October. I still haven't made a decision and would like to know the updated money factor and residual numbers for a 3 year/12,000 miles per year lease on both the 335i coupe and 328i coupe. Also, as this will be my thrid lease with BMW FS is the money factor still increased by .0015 if the security deposit is waived? Or will they waive it as a courtesy to "re-leasers" without the increase in money factor? Thanks.

drmy

Hi,

We are in Balt, MD and we are negotiating for a 2007 328xi lease, premium, cold weather pkg, sirius radio.

The MSRP: 39,590
price offered 38,100
acquisition fee: 625
money factor: .0025
residual value: 24,149
security and first month: 1286
payments: 636.42

we were told we could buy down the MF to .00201 by increasing our security deposit to 4550, which would bring our payments down to 604. Good deal?

tennberg

Assuming you are not putting any money down (down payment, trade-in) and that it's a 36-month lease (I assumed that since you didn't mention it anywhere), I come up with a monthly payment of 590.17 (sales tax included, 5% Maryland sales tax rate).

I noticed you posted on another thread and a host came up with payments around 560. Either way, it seems like the monthly payments are higher than they should be. The money factor does seem a tad high.

It also seems like you're putting down a lot of money to get the money factor to where I feel it should be, although I don't have the November MF rates yet.

Anyone else able to chime in on this?

wrenchrad

Car Man or Kyfdx or anyone seeing this: Anyone know where BMWFS November lease money factors and residuals can be found? I'm interested in finding out how much the local dealer is marking up money factors for the new 2007 328i and 335i sedans and coupes, as well as the remaining 2006 330i sedans. Thanks for your help.

theprogrammer

Anybody??? Car_Man???

riverripper

2007 328 Sedan
24 mo/15k mi = Residual 71% / .00190 Money Factor
36 mo/15k mi = Residual 61% / .00190 Money Factor

2007 328xi Sedan
24 mo/15k mi = Residual 71% / .00190 Money Factor
36 mo/15k mi = Residual 61% / .00190 Money Factor

2007 BMW 335 Series 335i Sedan
24 mo/15k mi = Residual 71% / .00150 Money Factor
36 mo/15k mi = Residual 61% / .00150 Money Factor

328xi coupe has a residual of 70% and a MF of only .001 which is extremely good.

wrightrd

Any knowledge of the November money factors for the 328i coupe and the 335i coupe? Thanks.

appu

Hi

I am getting a lease quote on

328xi all wheel drive sedan with automatic transmission for $369/month.
This is a 36 month lease, 30,000 miles allowed, $2500 cap cost reduction due at signing. Tax, first month, bank fee, mv fees additional.

Is it a good deal? I am new to lease, what should I be looking for?

Thanks,
Appu

riverripper

2007 335i Coupe (add 2% for 12k and another 1% for 15k)
24 mo/15k = 69% Residual / .00175 Money Factor
36 mo/15k = 58% Residual / .00175 Money Factor

328i Coupe
24 mo/15k = 68% Residual / .00125 Money Factor
36 mo/15k = 58% Residual / .00125 Money Factor

As for the above deal...You need to know what your cap cost is. Dont just go by the payment. Just like buying a car find out what they are charging you for the car. Then find out the money factor, try hard to get the base rate posted above. Make sure you do at least one security deposit to keep from paying an upcharge of .00015. Depending on your miles if you are going to be close to the 30K limit seriously consider going to 12K a year. The one percent is not a huge different in monthly payments but could save you from a big hit when you turn the car in at the end of the lease.

The key numbers to look at are the Cap cost, the residual value of the car and the money factor...that is what will determine your monthly payment. The residual and money factor are set by BMW, the dealer can mark up the money factor though so try and get their buy rate. Let them make their money on money over invoice they are getting for the car.

Also, putting money down on a lease can be a bad idea because if you get into an accident you are out that money. Leases come with gap coverage so you should look into doing multiple security deposits with that money. You can do up 7 and each one lowers the rate by .00007. So you can lower the rate by almost .0005 so you would be at .00141

tennberg

I assume the "residual of 70% and a MF of only .001" on the 2007 328xi coupe are based on a 24 month, 15k mile lease. Please drop a line to either confirm or correct this.

If this is true, I believe this incredibly good money factor just made up my mind on what 3-series I want to lease. The MF is almost as good as the 0.0005 MF on my previous 2003 Audi A4 lease.

theprogrammer

Looks like no one was able to answer my question regarding leasing with a credit score of 650. Anyways, I went to the dealership here in Seattle and according to the salesperson credit score doesn't change the MF, its either you qualify or not and according to them I should be OK eventhough my credit was not pulled. Is that true or is it ust a tactic to get me to submit my credit application?

Here is my next question, I saw this beatiful certified pre-owned 2006 325i with premium, sports, cold weather etc with 10K miles on it and I think I can pull the price down to like approx $32K. If I decide to lease this vehicle, will I be able to get the advertised low MF?? Anybody know how much is the buy rate for a 36mo/12K lease for a certified pre-owned 2006 325i? I would really really appreciate someone giving me a feedback because I love the 3 series after driving it and would love to lease one!! Thx in advance!

zakattak20

What is the current mf and residual on these for 36months? Hoping to get a good deal since its almost 07 and production stopped with the new 3 series models out. Thank you in advance

kablaam

I believe BMW only accepts Tier 1/2 credit and yes, from what I understand, you are either approved or not which does not affect the MF. 650 is, I believe, Tier 2 credit but what do you have to lose besides a couple of FICO scores lol? Besides having 1 Inquiry on your report, you are not obligated to buy/lease just because you put an app in.

Good luck.

From all I've been told, its not a good idea to lease a used vehicle because its difficult to guage the residual value of one. With the low MF and reasonably high Residuals on the 335i, I suggest leasing a 335i sedan w/ Sports Package!!! You won't regret it.

rqa

My daughter and her husband leased a 2.5 X3 in 2004...3yr/30K mi lease. I know their lease payment is about $365/mo. I am considering buying the car when their lease expires. A) Will BMWFS allow me to buy the car for their residual? About how much could I expect the residual to be? C) I assume that if the answer to A is "no" ... they could buy the car and sell it to me...any problem with this?

Thanks!

tennberg

riverripper posted above that the 2007 328xi coupe for November "has a residual of 70% and a MF of only .001 which is extremely good."

Is there any confirmation on this that these are the correct BMWFS values? I've been doing my own lease calculations before going in and agreeing upon a cap cost with a dealer, and want to make sure I am not using incorrect values. I assume because of the high residual %, this is for a 24 month lease. What is the yearly mileage limit on this MF/residual? 10k, 12k, 15k?

Thanks! I've been finding the information here quite useful in helping me work out my next lease.

tennberg

I had a question about how BMWFS calculates the security deposit that you can then use to lower the MF.

I am assuming it goes like this:

You agree upon a cap cost with the dealer, and he writes up the lease assuming *no down payment* with the current MF and residual to come up with a monthly payment.

That monthly payment is then rounded up to the nearest $50, and that becomes the security deposit. Those are then used to lower the pre-determined MF by a certain amount.

He then goes back in and recalculates the lease using the new MF and with *no other terms changed* other than the amount you are putting down in security deposits (as the down payment) to come up with a new monthly payment.

Is this correct?

How many security deposits can be applied to lower the MF and how much would each SD lower the MF on a 2007 328xi coupe?

P.S. - I assume the standard security deposit does not apply here, as that only keeps the MF at the advertised rate.

moesterwinter

Can anyone confirm that the MF is .001 on a 328xi? I quoted the above to my dealer who locked me in at a higher lease rate this month and he said that we incorrect.... He has marked up the full .0004, so if he is over-charging me, who is pocketing the difference?

tennberg

Moester:

What MF did your dealer give you? From your post above, it sounds like you were given a MF of 0.0014.

If that is true, from what I've read on these forums, dealers are allowed to increase the MF up to 0.0004 more than what BMWFS sets it at.

I have contacted a couple dealers near me to see what they say the November MF/residual for a 2007 328xi coupe are. I will let you know if I find out anything.

tennberg

I just heard back from my dealer who gave me the following information:

2007 328xi coupe
24 month lease/15k yearly mileage
0.00130 MF
70% residual

I am not sure if this MF has been marked up by the dealer, or is this is the actual number set by BMWFS.

How much room do you have to negotiate the MF with a dealer if BMW sets it at this rate but the dealer is allowed to mark it up by 0.0004?

sm05

Hi,

I am getting the below lease breakup from the dealer. Does this sound good ?? Dealer says he make only 570.00

335i,metallic,PP.SP,Auto,Navig,Sirus,Comfort access,Heated seats,Paddle shifters,Wood trim.
MSRP: 48,490.00
24 months 12k miles.
Residual 71% = 34427
mileage adj = 969
adj residual value = 35247.00
Rate = 0.0015
demo miles = 1500 miles -$150.00 ( discount)
dealer price = 45,100.00
selling price = 45,670.00
assignment fee = 625.00
tax = 1047

Cap Cost = 47,367.70
inception fees = 2332.

Payment 24 months = 628.49 .
-------------------------------
36 months 12k miles.
Residual 61% = 29578
mileage adj 969
adjusted Residual = 30398
Rate = 0.0015
demo miles = 1500 miles -$150.00 ( discount)
dealer price = 45,100.00
selling price = 45,670.00
assignment fee = 625.00
tax = 1493

Cap Cost = 47729
inception fees = 2253.

Payment 36 months = 599 .

Dealer says he is making very less on this car. I think tax is being added into the Cap Cost ? Is this normal ?
If I did SD of 4800.00 for 24 months then he is giving rate .00132 , 73% residual, Cap Cost 46,819.58 . Pymt Monthly 584.44

It's my fist time lease. I can't tell if I am being shafted. Can someone help??

Thanks a lot.

sm05

Hi, Can someone please help ! :confuse:

sm05

OK. Thought I will summarize.

335i,metallic,PP.SP,Auto,Navig,Sirus,Comfort access,Heated seats,Paddle shifters,Wood trim.

MSRP: 48,490.00
24 months 12k miles.

inception fees = 2332.00
Payment 24 months = 628.49 ( incl tax )

8 SD's = 584.00 per month

Is this a good deal.

Thx.

riverripper

The buy rate on the 328xi coupe right now is .00100. So the dealer is marking it up by .0003...aim for the buy rate and let them make their money on the over invoice part.

riverripper

I am basing this off the assumption its a sedan since I didnt notice what it was but the MF rates for a sedan. First the residual on a 12k sedan is 73% also If you are doing 8 you must be a first time BMW lease. So the 7 extra should bring your rate down 0.0007 each..or .0049. So from .0015 it should be down to .00101 so they are jacking your rate up from what I can tell. For the miles makesure when you trade your lease in 2 years that the turn in mileage is 25500 not 24k. Cause miles cost more than the 10 cents they are discounting you.

The price is good but I would look at the multiple security deposits and the residual. If its a coupe the its 69% and .00175 MF.

sm05

Hi river... thanks for the in depth.
You have really ...ripped it apart.. i should say

Yes, it is a 335i sedan and I am a first time lease.

I will check with the dealer for the new numbers...

Thx a lot....

sm05

Oh..this is how the dealer has show the breakup

Residual Value 71% = $34427
Demo miles 1500-501 @15c - ($149.85) . I don't know why he is discounting only for 1000 miles.
Annnual miles = 12000
Mileage Adj + 2% = $969.00.
Adj Residual Value = $35247

What is he doing above ? Is he taking care of the residual as he offered me 71% instead of 73%



Thx.

vonrauss

Guys/gals-

These boards have been invaluable. Thanks for all the valuable insight!

I have a quick question...
Is it even possible to lease a 2007 BMW 328i with the following options:
premium package
xenons
navigation

for under $500 bucks a month if I put 2000 down (INCLUDING 9% tax)? I would prefer a 2-yr 15k per year lease, but would be willing to go to a 3-year 12k per year lease if need be...

I just want to get a sense for your thoughts...

Thanks!

P.S. I live in Southern California.

CarMan@Edmunds

So, you aren't being given a discount on this car, huh? I think that you can do better 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".

Car_man
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CarMan@Edmunds

Hi wrenchrad. I am not aware of any resource that provides the details of manufacturers' actual lease programs to the general public. I can give you an idea of what these car's numbers are like. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2007 328i with 12,000 miles per year are .00190 and 73%, respectively. The numbers for an otherwise identical 36 month lease are .00190 and 63%. The numbers for 24 / 12k and 36 / 12k leases of the 2007 328Ci are .00125 / 70% and .00125 / 60%. Lastly, the numbers for 24 / 12k and 36 / 12k leases of the 2007 335i are .00150 / 73% and .00150 / 63%.

Car_man
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CarMan@Edmunds

Hello tennberg. The dealer invoice price for this car should not be available here at Edmunds.com. I just looked it up and the invoice price for a base 2007 328xi is $31,555. As far as this car's lease program goes, BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2007 328xi with 15,000 miles per year are .00190 and 71%, respectively. The numbers for an otherwise identical 36 month lease are .00190 and 61%.

Car_man
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CarMan@Edmunds

Hi mcla1. BMW Financial Services' current buy rate lease money factor and residual value for a 28 month lease of a 2006 325Ci Convertible with 10,000 miles per year are .00300 and 73%, respectively. This money factor is nothing special, but BMW is providing $4,500 dealer cash on this car. Make sure to take this cash into account when negotiating your vehicle's capitalized cost.

Car_man
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CarMan@Edmunds

Hi kablaam. The dealer invoice price of the car that you described is $41,715. The selling price that you were quoted, $43,945, is $2,230 over invoice. This leaves you a little room to play. Do you have any other BMW dealers in your area? If so, it wouldn't hurt to shop around a little bit to see if you can beat this offer. There's no guarantee that you will be able to, but with that much meat left on the bone it wouldn't hurt to try. 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

No problem, wrightrd. Here's the latest info. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 335i Coupe with 12,000 miles per year are .00175 and 60%, respectively. The numbers for an otherwise identical lease of a 2007 328i Coupe are .00125 and 60%. I am not positive, but I believe that BMW Financial Services will indeed waive its security deposit requirement for free for returning lessees.

Car_man
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CarMan@Edmunds

Hi drmy. The $1,500 discount that you were quoted on this car is in line with the prices that I have seen other community members being quoted. This car's dealer invoice price is $36,430. The price that you were quoted looks reasonable to me, but with $1,670 left to play with it wouldn't hurt to shop around to see if you can beat this offer. You never know. The main problem that I have with this deal isn't with the car's price, it's the money factor. BMW Financial Services' current buy rate lease money factor for the 2007 BMW 328xi is only .00190 with the payment of a security deposit at lease signing. The dealer that you are working with is marking your car's factor up significantly to add additional hidden back-end profit to your deal. Make sure to insist that they use the buy rate to calculate your car's lease payment.

Car_man
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CarMan@Edmunds

Hey wrenchrad. These cars' numbers will vary depending upon how long you lease them for and their mileage allowances. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. BMW Financial Services' current 36 month, 15,000 mile per year buy rate lease money factor and residual value for the 2007 328i are .00190 and 61%, respectively. The numbers for an otherwise identical lease of a 2007 335i are .00150 and 61%. Lastly, the numbers for an otherwise identical lease of a 2006 330i are .00150 and 61%.

Car_man
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CarMan@Edmunds

Greetings Appu. 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.

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.

Car_man
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CarMan@Edmunds

Hi theprogrammer. Unlike a number of other manufacturers' captive finance companies that have tiered money factors that vary depending upon what one's credit score is, BMW Financial Services uses a pass / fail system where either consumers qualify for its best lease program or they can't lease through it at all. Your credit score should be good enough to qualify for BMW's current special lease program. Unfortunately, the money factors that are being discussed in this discussion are only available on brand new vehicles. Used models are not eligible for them. From time to time BMW offers special leases on Certified Pre-Owned vehicles, but I personally do not keep tabs on manufacturers' used vehicle lease programs.

Car_man
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CarMan@Edmunds

Hello zakattak20. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2006 BMW M3 Coupe is .00300. While this factor isn't that great, BMW is providing a nice $4,500 dealer cash incentive on this car right now. Make sure to take this cash into account when negotiating your vehicle's capitalized cost.

Car_man
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CarMan@Edmunds

Hi rqa. I am not sure if BMW Financial Services will allow you to purchase your daughter's leased vehicle. You can always have them place a call directly to BMW FS to find out. Even if it won't allow this transaction, there is a good change that you will be able to find a BMW dealer that can facilitate it for you for a nominal fee. This truck's lease-end purchase option price will be listed on your daughter's original lease contract. If she does not still have it, she can find out what it is by calling BMW FS. The problem with your daughter buying her leased vehicle and then selling it to you is that you may end up being taxed on it twice, depending upon what your state's tax laws are like.

Car_man
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CarMan@Edmunds

Hi tennberg. I believe that your assumption about how BMW FS' multiple security deposit program works is correct. BMW FS currently allows lessees to make up to seven additional security deposits on leased vehicles, with each additional deposit reducing the money factor that is being used to calculate your vehicle's monthly payment by .00007. The first security deposit that you make offers no reduction, other than the fact that it eliminates the .00015 money factor increase for vehicles that are leased without any security deposit.

Car_man
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CarMan@Edmunds

Hi moesterwinter. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2007 328xi Sedan is .00190. If you opt to have your car's security deposit waived, this factor would increase by .00015. If you are being charged a higher money factor than this, the dealer that you are working with is marking your vehicle's factor up to add additional hidden back-end profit for itself into your deal.

Car_man
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CarMan@Edmunds

Hi tennberg. BMW Financial Services' current buy rate lease money factor for the 2007 328xi Coupe is .00100 for up to 42 months for consumers who pay a security deposit at lease signing. It is .00015 higher without a deposit. If you are being charged any more than this, the dealer that you are working with is trying to mark your car's factor up to add additional back-end profit to your deal.

Car_man
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CarMan@Edmunds

Hi tennberg. See my previous posts. It appears as though this dealer is marking your car's money factor up. If there is a decent level of competition in your area, there is a good chance that you can find a dealer that is willing to lease you this car without any money factor markup by shopping around.

Car_man
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CarMan@Edmunds

I'm glad that you find this forum, vonrauss. I don't know how much this car would cost to lease off of the top of my head, but I would be happy to calculate an approximate cost for you. In order for me to do so I need you to provide me with the full MSRP (including destination) and approximate selling price off the car that you want. Let me know and I'll crunch some numbers for you.

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jrynn

Here's a question for you, Car_man, from an X3/RDX comparison thread.

Why does BMW subsidize lease deals without offering comparable support to purchasers?

The differential in purchase price between a base RDX and a comparable X3 is about $7,000, even after you factor in typical discounts from MSRP. Suprisingly, the differential in lease payments for a base RDX and a comparable X3 is negligible. And it's not as if the RDX doesn't have as good or better an expected residual value (as a percentage of cap. cost).

So ... why does BMW want lessees rather than purchasers?