BMW 3-Series Lease Questions

skobola

Although this was in response to #2240 of 2243, Re: 328i Money Factor and Residual [jun2] by stvroy, Stvroy please take this just as an initiation of the discussion, as I did not want to challenge you. Actually, I understand that may be some cases of this happening, however, I would like to know where I could get a BMW at $500 above invoice. The best that I have gotten is $1,000 for the ordered cars, when shopping around and certainly outside Miami, Florida, which actually meant that they have collected a grand for filling up the paper. In Miami they stick to minimal discounts off the MSRP, while crying that they have to make money somehow, while at the same time they raise the acquisition to $825, MF for 0.0004, and whatever else they can to rip us (the buyers) off. As I do not have any problems in ordering my car from anywhere else, I would love to get at least some dealerships that actually sell cars at $500 above invoice, and preferably without trying to pull some BS excuses and such. Thank you.

hpowders

I am on my third consecutive BMW lease.

Even if you negotiate $500 over invoice, the dealer will pad the deal by adding $200 to the acquisition fee, making the actual deal $700 over invoice. I have fought with dealers about the padding of the acquisition fee and they have never yielded. You go to another dealer-they give you the base acquisition fee, but then they pad the money factor.

It has been impossible in my experience to find a dealership offering both BMWFS' base money factor and acquisition fee with a negotiated capitalized cost of $500 over invoice in Florida.

Their job, it seems, is to make you think you got $500 over invoice.

dhamilton

Can someone check my math?

2008 BMW 335 sedan

MSRP $ 44,425.00

Selling price, inclusive of everything except taxes $41,885.00

36/12

.00200

62% LEV

$555.09 before tax.

stvroy

skobola-

The $500 over invoice was based on sedan numbers others posted on this board. I even used that line in negotiations with a dealer on a convertible. He didn't deny it on a sedan, but quickly shifited to the convertible being a total different story. I'm not trying to get a convertible for $500 over, but just using it as a baseline in the back of their mind.

mattle

Hello carman,
I want to lease a BMW 328i coupe w 3 year , 20k miles, down 3000. the dealer give me the car over invoice 250 dollar, Bank charge 825, Monthly payment 623, MF .00235 and 60% Residue. I just want to know is this a good buy?I talked to both dealer and both have the same deal. I dont know what to do . Could you help out thanks.

mattle

Hello Carman,
I want to lease 328i for 3 years ,20k , 3000 down and I want to buy the car at the end of the lease but I don't know this is a good thing to do. please help! and this is an offer from the dealer> the car have premium package, metalic paint that about it. He offer 250 above envoice

bank fee 825
resisdual 60%
MF .00235
deposit 700 dollar

I told him that he over charge the bank fee,resisdual too high and take off the 700 deposit. but in order to take off the deposit he increase the MF to .00250. Is it okay to buy the car after the end of the least? Do you think this is a good deal to lease this car? I need help. I am counting on you carman or other person in this room. thank you

smitty262

Getting an offer on a 2008 328i - sports package, ipod and usb, power seats, steptronic

MSRP - 38,020
She said it sales price was 500 over invoice

3600 down / $430.00 month - 36 months 10k miles

also, since I did kind of an a la carte package, they said it would take 8 weeks to ordar...does it usually take this long?

sphereboy

can you guys specify if you are talking about a coupe or sedan? I'm looking to get a coupe and these prices are very helpful but not so helpful if we don't know if it's a coupe or sedan. Thanks!

smitty262

That was for a sedan. They actually said none of these were around in the clors I wanted so now I am eyeing this deal..(sedan)

Model: 328xi
MSRP 42k
500 over invoice
premium package, sports package, steptronic, heated seats, ipod

3500 down and 450/ month ...

sound about right? what do u guys think -I am getting a lot more for 20 extra month (I think they are more willing since it is on their lot as we speak)..location is north new jersey

jetfan

Just got a quick quote on a BMW 328i sedan with premium package, heated front seats & ipod interface. Buy price is $39,075 & quoted lease payments are $518 a month(including NJ tax) 36 month lease 12K a year no down payment but $1784 to drive car away (1st month, security, bank fee, tire tax ,document fee). Does this sound about right? Can i do better?

jetfan

To add to the above :Sticker price $39,075, selling price $38,000, residual value 63% of
MSRP,
money factor 0.00175, security deposit $550 (refundable at the end of
lease),bank fee $625, doc fee $75, tire tax $6, online registration fee
$7.7.

larsd4

I'm looking in MN for a white 318i with leather, iPod, cold weather pkg., manual, and comfort access, list price $36,606. Invoice is 33,635. I plan to lease for 3 years, 15,000 mi. BMW on-line calculator says $543/mo, with no down pmt. Given two dealers in town, what would be a target lease rate to shoot for?

jetfan

Got the numbers a little better. MSRP 39075, Residual 63% money factor 0.00175 security deposit $550, Bank fee $625 doc fee $75 tire tax $6.00 online registration $7.70. 36 month lease, 12K a year, $499.79 a month, $1754.94 due at signing. Can anyone comment on if these numbers sound right for a NJ lease? Thanks.

jps0429

I have never leased a car, so I am pretty new to this.

I have heard two opinions on leasing and don't really know which is best...

Should I put a lot down to get a lower payment?

Or should I only pay what I need and fight for a good rate?

I have near perfect credit, its at 820 right now.

I am trading in a 2002 Acura CL type S

I have never owned a BMW, so I do not know how much I can talk them down on pricing or a monthly payment...

I am pretty much hoping to walk out with a new 328i coupe w/ automatic, sport & premium package for under 500 a month... you think I could do that?

I live in Miami, FL.

any help would be great!!!! I appreciate it.

jetfan

Carman: Are you out there? Would like your advise re: my quote. Thanks & let me know if you need more info.

gforce11

If you put down a lot of money, $500 a month shouldn't be a problem.
The question is, why?
I don't want to sound too redundant so go HERE to read about my take on down payments.
Couple of suggestions on top of that.
I wouldn't put down a lot of money in general. I would trade in the CL, use part of it to pay for the drive-off cost and have them cut you a check for the remainder of your trade-in and keep it in either an investment account or some type of interest yielding account. If your payment is $525, you can pull $25 bucks every month from the trade-in of your CL to help pay down the cost.
I find the 3-series tough to negotiate since they are fairly desirable, but in this economy, i think you can still do alright. Try emailing some dealers for quotes, take the one thats most promising and try to get them as close to invoice as you can. Remember, nothing is final until you sign the papers. So think long and hard before you sign away your hard earned cash for the next 36+ months. Best of luck.
BTW, your credit is awesome!

austint3

Here are the terms of one offer for a lease in Upstate NY :

Here are the numbers for the 335xi with Premium Pkg,Cold Weather Pkg,Navigation,metallic paint

36 month lease
15k miles a yr

MSRP 47550
Selling Price 45500
MF .00210
61% residual
1850.26 tax @ 7% County Tax
625.00 Bank Fee
625.09 First Payment
650.00 Sec deposit Refundable
45.00 Doc fee
10.00 New York State Inspection
10.00 New York State Tire Tax

3827.85 Total Due

I gave you a 2000 discount on the car and threw in free floor mats
Which is a heavy discount for a BMW
In hope to earn your business

Do these numbers seem right and is this reasonable. Any comments would be appreciated. Thanks

bigmikeystyle

been getting pretty good quotes from multiple dealers now on a loaded 335 sedan. Ranging about 500-1000 over invoice. I guess they're trying to clear out some of the 08's with the 09's coming in a few months. Well I heard that the 09's will have a slight facelift and maybe some other features, do you guys thing they'd be willing to negotiate on the 09's at all? thanks

jtbaer

Was looking for a little advice. I have been bargaining with dealers in the Atlanta area on a 328i sedan for the past week. They all say they will sell to me at "$500" over invoice but then when they send me the numbers they are charging me an $825 acquisition fee and a $499 Doc fee, as well as giving me terrible money factors. I swear they are much worse than the honda dealers I have dealt with in the past. They have finally agreed to the regular $625 acquisition fee but one of the dealers insists that Doc fee of $499 is non-negotiable and that every dealer, including kia dealerships, charge a $499 doc fee. I have never heard of this and wonder if this is indeed true. If any anyone has any advice about the doc fee and/or advice about dealers in the atlanta metro area I would love to hear it. Thanks so much.

jtbaer

Just curious what people think. The "doc fee" annoys me but multiple dealers in this area (atlanta) have said this is non-negotiable. I know its just profit for them. I have had one dealer say they can't match this offer so I am guessing I am getting near the bottom of what dealers are willing to sell.

Also do people usually roll their aquisition fee and doc fee into the lease? I'm guessing this is advantageous to the dealer so perhaps I should pay all of this up front?

MSRP / Invoice

$33175 / $30765 - 2008 328i (Includes $775 Destination fee and $180 Training)

Sport Package, Manual Transmission, Leatherette, BMW Assist with Bluetooth,
Comfort Access, Metallic paint

$36500 / $33790 Total

$500 Dealer Profit

$499 Doc Fee

$625 Acquisition Fee

$35414 Total Cap Cost on 36mo/12k lease with MF 0.00175 and Residual 63%

$22995 Residual (63% of MSRP).

$478.49 Total Monthly Payment with 7% tax included

$500 Refundable Security Deposit.

CarMan@Edmunds

Hi 1985mb. You never mentioned how long you want to lease this car for, so for now I will assume that you're interested in a 36 month lease. Let me know if you want something different. Through May 5th, BMW Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2008 328Ci Convertible with 15,000 miles per year are .00245 and 61%, respectively. The residual value for an otherwise identical lease with only 12,000 miles per year would be 2% higher.

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CarMan@Edmunds

Here's the information that you are looking for, mva1. Through May 5th, BMW Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2008 328i Coupe with 10,000 miles per year are .00195 and 63%, respectively.

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CarMan@Edmunds

Hi dhamilton. I just worked up a lease payment on the car that you described in your most. According to my calculations, a 36 month lease on a car that has an MSRP of $44,425, a selling price of $41,885, a money factor of .00200, and a residual value of 62% should have a zero down, pre-tax monthly payment of around $537.23.

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CarMan@Edmunds

Hi mattle. $250 over dealer invoice is an excellent selling price for a 2008 BMW 328i Coupe. The dealer is marking your car's acquisition fee up by $200, so this deal is really more like $450 over invoice, but that is still a very good price. Unfortunately, it appears as though the dealer is marking your car's money factor up as well. BMW Financial Services' current buy rate for a 36 month lease of this car is only .00195 (.00201 for non-returning customers who want to have their security deposit waived). Try to get the dealer to use the buy rate to calculate your monthly payment.

Also, I see that you are considering making a $3,000 down payment on this lease. I always advise consumers not to make capitalized cost reductions on leases. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered. You would be better off going with a zero down lease, even though it means that your monthly payment will be slightly higher.

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kyfdx

jtbaer..

$500 over invoice is a nothing deal for a BMW dealer. The fact that no one will match that, even with a $499 doc fee, tells me that you are getting a good deal. Just consider the doc fee part of the selling price. $1000 over invoice is a very good deal.

Next, you have to make sure you get the buy rate on the money factor.

Good luck!
kyfdx

epaiuk

Carman:

Do you have the numbers for a 328 coupe 38 month 12k mile lease?

Thanks!

CarMan@Edmunds

I sure do, epaiuk. Through May 5th, BMW Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2008 328i Coupe with 12,000 miles per year are .00195 and 60%, respectively.

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simfox3

Carman:

Do you have the numbers for a 335i coupe for May? I know in April it was .00230. Thanks.

jackk1

Car_Man,

Do you have the new May rates yet?

Thanks.

jaxs1

I saw an ad in a local newspaper that says this dealer is offering new 2008 328 sedans for $31,888 and 3.9% financing for 60 months.

Features listed are:

Automatic transmission
Remote keyless entry
Sunroof
Wood trim
Alloy wheels
Dynamic Stability Control

So, it sounds like the only "option" is automatic and these cars would have unheated leatherette seats, non-metallic paint, no bluetooth and the basic stock radio.

The ad says 7 are available at that price and it's in Northern California.

I calculate:

It would be about $34,700 after tax, license and doc fee.
If I weren't going to put down any money and used their 3.9% financing, the monthly payment would be about $637 a month for 60 months.
If I wanted payments under $500 a month, I'd need to put down about $7400 in cash and/or trade equity.

I'll have to check with my insurance agent to find the latest insurance rates so I could calculate my total monthly costs.
I'll also need to check on what I can expect to pay for tire replacements. At least the base tires should be less expensive than the Sport Package tires.
I'm more likely to get a lower priced car than a new BMW, but I'm curious about this.

Is there anything particularly fantastic about this advertised special or should there be better deals available now?

Based on this selling price of $31888 and MSRP $34450, what should a 36 month, 45K lease cost monthly with $0 cap reduction and about $3000 available to use towards startup costs and extra security deposits?

Do the dealers often lease at the base rate or do they always mark up the rate (and is there any limit of how high they could mark up the lease rate)?

If I could lease much better equipped model (i.e. Premium Package, Comfort Access, Bluetooth, Logic7,iPod adapter/HD radio, heated seats, metallic paint etc.) for 15K/year for under $475 month payment (before tax) with less than $3000 cash to start, it will be much more tempting to consider than the scenario of $7400 down for a very stripped model on a 60 month purchase and then either selling before the 50000 mile warranty expires or keeping it for around 7 years and risking repairs but having a couple of payment free years before moving to the next car.

runnin1023

At the risk of sounding unintelligent, I would like some clarification as to what the rate lease money factor and residual value means. I am looking to lease a 2008 328i sedan with an msrp of $36,175. I am looking to lease for 36 months 5,000 miles. How do I factor these numbers to ascertain the rate I should be paying? Also, is it true that I am best off putting 0 down? Thanks so much for any help you can provide!

gforce11

Lease Vocab read up! Essentially money factor is your interest rate and residual is how much the car is worth at lease-end.
Leasing is more than just monthly payments and down payments. NEVER negotiate down payments and monthly payments, you will typically lose out on a lot of money. $20 per month is usually around $1000 difference over the life of the loan.
My best advice, educate yourself, learn how to calculate your own lease payments so there are no surprises. Also learn what types of fees are legit and which are bogus. Dealers have a lot of ways to make money off you, so you need to know which they are and how to reduce your losses.

rmayeri

Anyone have access to the leasing terms in effect for May 2008 for the 335i convertible. I thought that BMW had tried to discourage all leases over 36 months, but just heard about a 42 month program with a 50% residual and .195% money factor. All information is greatly appreciated. Bob

loveandlight

Hi, does anyone know the new May residual and money factor rates (after 5-6-2008) for BMW 328i and 335i sedans? Thanks!

skobola

See the numbers at: http://www.bimmerfest.com/forums/showthread.php?t=284103
Here is the copy of the numbers that you have requested from there:
2008 BMW 328i Sedan
24 Month – Residual 66% of MSRP – .00175 Base Rate
36 Month – Residual 56% of MSRP – .00175 Base Rate
48 Month – Residual 40% of MSRP – .00258 Base Rate
60 Month – Residual 33% of MSRP – .00258 Base Rate
2008 BMW 335i Sedan
24 Month – Residual 66% of MSRP – .00200 Base Rate
36 Month – Residual 56% of MSRP – .00200 Base Rate
48 Month – Residual 40% of MSRP – .00258 Base Rate
60 Month – Residual 33% of MSRP – .00258 Base Rate

hizzy44

Hi,

Here are the details on the lease offer I am getting from my local dealer in Southern California, any feedback will be appreciated. Thanks...

2008 335i Sedan 36months lease 15k miles:
Options listed below:
Steptronic
Premium Package
Sports Package
Cold Weather Package
Paddle Shifters
Comfort Access
Park Distance
Navigation
Ipod
Metallic

MSRP: 50,125
European Delivery Selling: 44,650 (How much are they suppose to drop on eurpean?)

Destination and handling: 775.00
MF: 2.75 (what exactly is money factor and how does it work on leases?)
Residual factor: 61% (30,576.25) (I thought this was high compared to leasecompare.com 56%, is the residual negotiated later at the end of lease or is it set final now)
Liscense and Reg: 388.75
Doc fee: 45.00
Bank fee: 825.00

Drive off: $5000
Monthly payments: 509.89 + tax = $551.96

This is my first lease, any comments or feedback will be useful to me and greatly appreciated.

loveandlight

Thanks!!!

mikes10

I'm trying to lease a new 328i coupe with no real expensive options other than navigation...I'm having a real tough time getting good quotes..I think the cheapest I got so far was 600 including tax, 12k miles, 36 mo and 1k down...

What can i do to get a cheaper monthly lease rate because I still believe that this is really expensive for a basic 3 series..I live in CA..thanks for your help in advance!!

CarMan@Edmunds

Hey simfox3. BMW FS' May buy rate lease money factor for the 2008 335i Coupe is .00220.

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CarMan@Edmunds

Hi runnin1023. That's not a dumb question at all. What would be dumb would be leasing a vehicle without understanding what you are getting into or how it works. Edmunds.com has a great Leasing Glossary that can answer any questions that you have about what these terms mean.

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hizzy44

I will be signing the lease within a few days. As this is my first lease, any responses to the details above (#2281) would be helpful.

Thanks,

ejz1

Car man can you give a payment calculation for a 2008 328i convertible with a buy price of 49500 with 36 months and 12K/year? Thanks

sealbeach

Hello Car man and All,

I am new in this forum and really enjoy reading all kinds of valuable information.

I am seriously considering to take over the following lease for a 2006 BMW 325i sedan.

Monthly payment tax inclusive: $399.00
Months Remaining: 12 months
Lease End Date: May 31, 2009
Lease End Buyout Option: $25,420.00
Total Miles Allowed: 30,018
Total Miles Remaining: 20,303
Miles Remaining per Mo: 1,692 miles/mo

It looks like a good deal but I have the following questions :confuse:

- Considering the miles remaining per month is the monthly payment is acceptable for this year/model?

- Assuming I took over the lease, does it make sense to buy out the car at lease end based on given lease end buy out price?

Appreciate your time and Thanks!

skobola

Note that someone will have to pay a lease transfer fee, which if this car was financed by BMW FS is $450. Therefore, if you will pay for it, it will increase your monthly payment for $37.50 ($450/12). Also note that you will have to be approved by BMW FS, which, I believe is easy once your credit rating is at 710+. Considering that the car's residual will be $25,420 at the end of the lease, it is only you who can decide if it is worth that money. Note that BMWs in general have pretty high residual values, which does not make them as low priced used cars. You should be reminded that the car will have a warranty and free maintenance only for one more year at that time. I personnaly would not buy it, and this is exactly why I lease. Also note that BMW FS will assess the tax on that amount if you decide to buy it! BTW, my new 328i, that I leased on 5/3/2008, costs me $426 per mont (incl. tax), and if I would be you, I certainly would rather get into a new lease, due to a relatively small difference between the "old" and the "new" leases, i.e., of "only" $27 for the brand new Bimmer.

rheady

Wanted to verify a dealer statement with the list. There is a $775 price increase coming on June 1, as many have been told. I am placing a custom order this weekend on a car that will not arrive until July, and I am being told that it is the arrival date that controls the price increase, and not the order date--thus, I will have to pay the higher price. Can anyone verify this?

kyfdx

May 9th was the deadline for sold orders to avoid the price increase...

qbrozen

BTW, my new 328i, that I leased on 5/3/2008, costs me $426 per mont (incl. tax), and if I would be you, I certainly would rather get into a new lease, due to a relatively small difference between the "old" and the "new" leases, i.e., of "only" $27 for the brand new Bimmer.

However, you have a stripped model (aside from Assist). We don't know what this 325i has. Plus, the poster is talking about 20k miles in the one year. If he/she needs that many miles per year, leasing a new one would cost quite a bit more. So now we're talking WAY more than a $27 difference. Not to mention the 7 security deposits you put down, which the poster may or may not have on hand.

FWIW, if 20k miles/year are needed, I think $399 and $450 out of pocket is pretty darned good.

alf_master

I got this kinda fast out of my dealer so I'm wondering if there is room to go:

2008 328xi
Premium Package, Cold Weather Package, and an iPod & USB adapter
$579 a month with the 15,000 miles a year, 36 months with $3000 net due at signing

This includes the local tax 7%.

MSRP of Vehicle: $40,925
Base Invoice: $38,845
Selling Price of Vehicle: $39,235
Gross Cap Cost: $41,451.98
Net Cap Cost: $39,494.23

Money Factor is .00190
Residual Value is 56%

The break down of the $3000 net due at signing
License, title, doc fees: $311.50
First Payment: $579
Tax on Down payment: $151.73
Cash down payment: $1957.75

Sign on it?

richz

As has been said many times, don't put money down on a lease. If you have cash to put down, I'd put it on multiple security deposits, each of which will reduce your money factor by 0.0007.

alf_master

Great... I was not aware of the multiple deposit strategy. I am now... THANKS..

Other then that I think the numbers look ok.