BMW 3-Series Lease Questions

tracer11

thanks, want to make sure I understand the monthly payment you calculated is based on $1K off MSRP? What MF and residualdid you use in your calculation? and are we talking about a 27 month lease with no money down?

regards,

tracer11

kyfdx

Sorry, tracer11, I didn't do yours.. that was for the post above yours...

I'm not Car_man, and I don't always have the latest up to date info that he does...

But, give me a little bit and I'll check into it..

regards,
kyfdx

kyfdx

Here you go, tracer11

'07 328i Coupe

3yr/45K lease
residual = 58%
MF = .00125 (This is equivalent to 3% APR on a loan)
$38,815 MSRP
$36,000 Selling price (frankly, optimistic)

$448/mo. + tax

Due at signing: 1st payment, security deposit, $625 acquisition fee, title/license fees (Approx. $1800-$2000)

Every $1000 increase in selling price will raise the payment about $29/mo.

Hope this helps,
kyfdx

tracer11

Thanks a lot kyfdx

izmirian

I'm looking to lease an X3 or 3 series 4 door. When I do the calculations on advertised lease programs for X3, I find the MF and residual on the base model and apply those to " as shown" model but I always end up getting a lower monthly payment than advertised. Do you know why it might be happening?

Down MSRP Cap Cost Resdl Term MF APR R% MP Advertised Monthly Pay
Base X3 2500 38695 36195 26313 36 0.00151 3.63 68% $369 $369
Optioned X3 2500 40470 37970 27520 36 0.00151 3.63 68% $389 $401

ckatili

Thanks for the sharing this wonderful information. I always shop around as well.

I am currently doing a lot reading regarding leasing. Do you mind sharing how much your monthly payment is?

ckatili

Hi kyfdx,

I am looking to lease '07 335I Coupe and have zero down payment(just first montly payment and reg. fees).
Can you help me to estimate the montly payment?

3 yr/36K lease
MSRP: 44,695.

I live in Texas so I have to pay the tax(6.25%) of the Cap Cost. This is costly so I am wondering if it makes sense to lease a car in TX.

karabass

Dear kyfdx,

Can you please give me the formula that you've used in calculating my payment? I tried using a formula found at www.leaseguide.com but arrived to a different figure.

Thanks in advance. Merry Christmas!

kyfdx

(CAP cost - residual) / monthly term = Monthly Depreciation

(CAP cost + residual) X money factor = Monthly Finance Charge

Monthly Depreciation + Monthly Finance Charge = Monthly Payment

Plus Tax

imanchee

I am trying to lease a 2007 335i with the Sport and the Premium and the paddle shifters. Here is a deal that one of the dealers gave me? Can anyone tell me if this is a good deal...

36mo/15k miles

MSRP: $45,295
Sale Price: $43,455
$1,039.59 Drive-off
35 payments of $588 + tax.

Thanks.

tcn2k

That is pretty good. Do you know the MF and the negotiated price?

specula8

All right. Here are the terms of the lease I just signed today. Thought I'd share.

Options
Sport Package
Premium Package
Cold Weather Package
Comfort Access
Rear Sunshades
Satellite Radio (Sirius - 1st year subscription included)
Steptronic Automatic Transmission with Paddle Shifters


Lease Term 36
MSRP $47,490.00
Dealer Reduction $1,500.00 - They started at $500
Sales Price $45,990.00
Add - Service Charge $89.00
Add - Acquisition Fee $625.00
Capital Cost $46,704.00
Minus - Cap Reduction $2,115.84
Adjusted Cap Cost $44,588.16


Residual Value $28,969.00
Residual 61.00%

Interest Rate = MF x 2400
MF 0.0019 = They started at .00205
Conversion Factor 2400
Interest Rate 4.56


Depreciation Fee $433.87
Finance Fee $139.76
Mnthly Pymnt Pre Tax $573.62
Mnthy Pymnt Post Tax $605.17

CarMan@Edmunds

No problem, vonrauss. The money factor that you were quoted for this car is right in line with BMW Financial Services' current buy rate for it. This is a good sign because it means that the dealer that you are working with is not trying to mark your car's money factor up to add additional hidden back-end profit to your deal.

Now let's take a look at this car's selling price. The dealer invoice price of the car that you described is $37,220. The price that you were quoted for it, $39,030, is $1,810 over invoice. There may still be a little room to play with here if you are in an area that has a decent level of competition. Make sure 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

Hello sichin. I just calculates a lease payment on this car using the information that you provided in your post and I too came up with a monthly payment of $561, actually $561.55 to be exact. If the monthly payment that the dealer you are working with quoted you doesn't include any additional fees or taxes, something is wrong with it. Make sure to find out why the payment that you are being quoted is different than it should be.

Car_man
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CarMan@Edmunds

Greetings redbugeye. Let me begin by saying that $5,000 is too much money to put down when leasing. If your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears. Consumers can and should lease any vehicle that they want without making any sort of capitalized cost reduction.

I see that you are only being given a $1,000 discount on this car. This car has a spread of around $3,400 between its full MSRP and dealer invoice price. That means that you still have $2,400 to play with. I don't know what the market is like for this specific model in your area, but that's enough room that it wouldn't hurt to comparison shop with a few other dealers to see if you can get a lower price. Make sure 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". Once you arrive at the best possible selling price, make sure that the dealer you are working with uses BMW Financial Services' buy rate lease money factor of .00100 to calculate your car's monthly payment.

Car_man
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CarMan@Edmunds

Hi Jason. You should be able to get a good idea about whether BMW Financial Services will charge you for the dings and paint chips that your car has when you turn it in by checking out the following site: BMW Financial Services Wear and Use Guidelines.

Car_man
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CarMan@Edmunds

Hey oc24. BMW Financial Services' current buy rate lease money factor for the 2007 328i Coupe is .00125, just like you were quoted. This car's money factor is slightly higher than the .00100 factor that is currently available on the 328i AWD Coupe. If you opt to have your car's security deposit waived and you are not a returning BMW Financial Services lessee, your car's money factor will be .00015 higher than the buy rate. The fact that you are not making a capitalized cost reduction is a good thing and it will not have any impact upon your car's money factor. The selling price that you were quoted looks reasonable to me.

Car_man
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CarMan@Edmunds

Hi vonrauss. If you are talking about the 2007 BMW 328i Coupe, then the dealers that you spoke with are lying. BMW Financial Services' current buy rate lease money factor is .00125 for the 2WD '07 328i Coupe and .00100 for the AWD model.

Car_man
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CarMan@Edmunds

Hi cwei. BMW Financial Services' December buy rate lease money factor for the 2007 335i Coupe is .00175 for leases up to 42 months long.

Car_man
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CarMan@Edmunds

Hello sjl2. BMW Financial Services' December buy rate lease money factor for the 2006 BMW 330Ci Convertible is .00300 for leases up to 42 months in length. BMW is currently providing $5,500 dealer cash on this car. Make sure to take this cash into account when negotiating the capitalized cost for your lease.

Car_man
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CarMan@Edmunds

Hi jrmstr33. There are enough BMW dealers out there that you should be able to find one that will lease you this car without making up its money factor. If I was in the market for one, I personally would insist that the buy rate was used to calculate my monthly payment. Also, a $500 discount isn't great either. You definitely should shop around.

Car_man
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CarMan@Edmunds

Thanks for sharing these numbers with everyone, cillajenkins. Unfortunately, the money factor that you were quoted is slightly high. BMW Financial Services' current buy rate lease money factor for the 2007 BMW 328xi Coupe is only .00100. This money factor is for returning lessees or new lessees who pay a security deposit equivalent to their car's monthly payment rounded up to the nearest $50 increment at lease signing. If you are not a returning BMW FS lessee and wish to have your car's security deposit waived, your car's money factor will be .00015 higher.

I am not personally familiar with how sales tax is calculated on leased vehicles in New Jersey, but you may be able to find out by visiting one of the following sites: State of New Jersey Motor Vehicle Commission or NJ Taxation.

Car_man
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CarMan@Edmunds

Hi jrmstr33. The money factor that you were quoted for this car is right in line with BMW Financial Services' current buy rate for it. This is a good thing. You are receiving a $1,300 discount on its selling price. I am not personally all that familiar with what the market is like for this model in your area right now, but there is still a decent profit left in this car for the dealer. Try stopping by the following discussion to make sure that this price is in line with what others have paid for this car lately: "BMW 3-Series: Prices Paid & Buying Experience".

Car_man
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CarMan@Edmunds

Hello Chris. I have not seen this car's 27 month lease program, but here is its 24 month numbers. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2007 335i Sedan with 12,000 miles per year are .00150 and 73%, respectively. Let me know if you have any other questions.

Car_man
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CarMan@Edmunds

Hi Jonathan. If the dealer that you are working with does not currently have any 2007 335i Coupes in stock then it is indeed selling every one that it can get its hands on and it has no incentive to offer you a good deal. Full MSRP plus a marked up money factor, the buy rate for this car is .00150, is not a good deal, but that might just be what the market dictates for this model in your area. If I was in your situation I definitely would stop around with a few other BMW dealers. You certainly don't have anything to lose, this deal is about as bad as it gets. If you are going to pay full MSRP and a fully marked up money factor on this car, at least try to find one that is available for immediate delivery :P .

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sichin

Thanks Carman,
I arranged to meet the CA that I had been dealing w/ via email, but when I arrived, learned that he had left early.
So, I spoke w/ another (very helpful) CA and through e-mail we worked out $548 per month. My calculations confirmed (MSRP of $46,195 - discount of $2,182 or about a 3.5% profit) $3,500 due at signing (1st + deposit + taxes + fees)

The only bad, even though Kelley Blue book gave me a trade in value of $16,000, the dealer only offered $11,700. I guess I will have to look to private sale.

BTW, I never heard back from the 1st salesman.

tcn2k

What was your due at signing?

specula8

$3k. $2100 and change went to cap reduction, miscl, and first months payment.

tracer11

Hi Kyfdx,

I have been working with the dealer on the this deal. He is calculating a monthly lease payment of $590.39 for a period of 39 months This doesn't make sense to me. Also he says the residual value for 15,000 miles per year is 55%, which results in a dollar amount of $21,348.25. The lease rate converts to an approximate 3.70 finance rate. We settled on a price of $36935. This does not sound like a very good deal to me based on the monthly payments which is about $100+ then what you calculated.

Thanks in advance,

tracer11

bimmerlovr

Hi. i just got a quote for a 2007 328i.

328i Auto Premium package
$450 per month plus tax (CA)
$0 down.

Is this a good deal?

oc24

Thanks, CarMan. I did pull the trigger on this about 10 days ago. Capitalized cost was $1200 over invoice plus $380 or so for BMW-mandated training or something like that. Lease fee was $625 and money factor was .00125. No capital reduction but I did put one security deposit down to keep the MF at .00125. I feel like I was fairly treated. Thanks for your help! oc24

imanchee

That's a pretty good deal. Do you know what the MF and the lease terms are?

imanchee

Can anyone tell me if this is a decent deal:

36 months and 15k per year
MSRP:$41,895
Invoice:$39,145
Sell price:$40,145

$560 including tax. No money down but multiple security deposits. Thanks.

bimmerlovr

it was for 27 mths. i'm at the dealer now and looking at more cars in the inventory. will post back.

bimmerlovr

any comments on this deal?

2007 328i auto + premium + sport + nav + xenon + heated seats
$545 incl tax
27 mnth lease
10k miles per month

drive off - $1600 (to cover security deposit, 1st month and fees)

this is in california

bimmerlovr

oops. that was 10k miles per year, not per month!

v_lad

I've ran some numbers for you. I'm not sure what's your tax in CA, but here is your payment for the 10k / 27 month lease if dealer has exactly 1500 of profit for your sedan.

seems like you are good. ask him about MSD - they will make it better.

MSRP 42520
residual % 0.74
residual 31464.8
EDinvoice 39130
dealer profit 1500
acc fee 625
cap cost 41255
depres 9790.2
mf 0.0019
% per month 138.16762
term 27
depres per month 362.6
total per month 500.76762

bimmerlovr

thank you for the response v lad. i just signed the deal this morning and i'm now excited to get my new car!! yessss!!

so in your opinion i got a pretty good deal, i hope?

v_lad

excellent outside CA, good in CA (you could have had ~20$ less payment). add tax to my payment cause I don't know the %.

tracer11

Hi,

Can you guys help me out with this. This payment seems really high $590 for 39 months. Here are the details

MSRP 38,815
Selling price 36,935
no money down
$1,600 drive off
15K/year
residual is 55%
3.7 finance rate

Thanks

v_lad

what's your tax? is it calculated for the payment or for the price of the car?
residual should be 58% but that does not cover the difference.
finance rate should be 3% (MF = 0.00125) (still not enough to justify 590$)
Are you doing ED?

tracer11

Illinois tax (8.25%) is included. No ED.
The dealer tells me that 58% is for 36 months and 55% for 39 months which is what he has quoted me. They are giving me a higher 3.5% I think converts to MF of .001458

v_lad

oh, that's the problem you pay tax for the whole price of the car, not on the ammount of payment.
1) I don't belive in 55% for 39 months.
2)0.001458 is a 3.5% rate.
3) sale price = 36,935 + tax = 40000 (almost) + accfee ~= 40850

MSRP 38815
residual % 0.55
residual 21348.25
cap cost 40850
depres 19501.75
mf 0.00145
% per month 90.1874625
term 39
depres per month 500.044871794872
total per month 590.232334294872

that state is bad for leasing. talk about 58% residual for 39 months... but I'd consider buying... almost all other states pay tax for the lease payment, not total sales price.

try to negotiate a MF of 0.00125. but that won't help much...

tracer11

Anybody get a good lease deal on a 335i in Chicago area? I am re-thinking my 328i coupe purchase. Might as well go for the 335i.

tracer11

Thanks v_lad
The numbers make more sense now

jbooker

I'm trying to figure out what a lease would cost me for a 328i with an MSRP of $41,795. I tried using the calculator, but I'm getting confused with putting the right numbers in. I called my dealer and got the MF for a 27 month lease and 10K miles a year. The MF is .00175 (I thought it should be .00125 with the current lease specials they are running. This is another reason why I'm confused). Anyway, can someone help me calculate what the lease per month would be? I'm located in Utah and the tax rate is 6%. I don't want to put any money down with exception of the required fees. Also, should I expect to pay MSRP, or can I negotiate this a little bit? I'm not sure what amounts to put in for the security deposit, acquisition fee, and title, registration, and other fees. Thanks for your help.

Summary
MSRP: 41,795
MF: .00175 (or .00125 if I can negotiate it to this)
Residual: 74%
Term: 27 months / 10K miles

v_lad

look here for MF and residual values:
http://www.bimmerfest.com/forums/showthread.php?t=178329

gs03ggw

is this from global imports in Atlanta GA? I got similar quote for residual value and MF

kyfdx

.00125 is the money factor for the coupe..

I'm not familiar with the 27 month deal on the 328i sedan, but it looks like a good program..

john7548

I don't want to sound to ignorant but I've always purchased vehicles and now I'm thinking of leasing. I've always understood that with a lease you can't negotiate from the MSRP...Is that true?...I do a great job of negotiating from the MSRP with a purchase but didn't think you could do that with a lease. The 335i that I would want will have a MSRP of approximately $47,000...If I purchase this vehicle I feel fairly comfortable I could somehow get the selling price down to $43,800 plus tax, license. Maybe I'm wrong but they seem too willing to easily drop $2,500 off the MSRP. Would I be able to use this negotiated price for a lease also? It seems this would reduce my monthly payment greatly. Here they are advertising lease specials on the 335i...basically a sedan equipped with an automatic transmission for $499/mo....36 months...10,000 miles per year....$2500 cap reduction. At the BMW website the lease for the vehicle I want balloons to close to $600/mo...36 months...at 15,000 miles per year...$2500 cap reduction. None of those rates includes sales tax. I live in Kern County of California where the sales tax rate is 7.25%. Can someone please help me on what this lease should cost me? I'm willing to put money down if that will help the lease. I have excellent credit. I just don't want to lay out all that cash to purchase this vehicle. Any help would be greatly appreciated.