BMW 3-Series Lease Questions

gforce11

the acquisition/bank fee is almost always added on top of your sale price unless you specifically tell the dealer you want to pay for it in upfront. Typically on leases, they like to roll it into your lease because it makes the drive-off costs more attractive. The acq/bank fee varies from state to state, but it is most commonly around $595.

davidd3

BMWFS' bank fee is $625. My dealer charged $625. But some dealers charge more, as it is another way to profit on a lease deal.

My lease deal is based on a sales price which is right around dealer invoice. Dealer's previous offer of $657 per month was (if memory serves) based on a sales price of $40,695 on this $43,395 car. I negotiated for a payment of $650. I suppose they knocked another $500 or so off the price to get to this lease payment.

dna1

Hello,
I have a 2006 BMW 330XI which was leased from the dealer in manhattan.
The car is fully loaded with premium package, GPS etc and original configured value was 49K, I leased the car for 24 months and 12,000 miles/year.
The residual value of the car is 34 K

I am now nearing the end on my lease and wantedto extend / release for 12 months.
I have only rung up about 13K miles. My dealer is stating that the way lease financing is structured, I will end up paying more than my original monthly payment.

Is this true?

Is it wiser to continue with the same car or to lease another similarly configured certified preowned.

All suggestions are welcome.

Thanks in advance
D

dna1

Hi,

I have a 2006 BMW 330XI.
The front bumper was gouged from below by a protruding spike on one of the parking stoppers.
Does this need to be replaced or is repair possible.
Can anyone suggest good independant body shops around New York City.

There is also a dent near the rear tire. Does anyone have experience with Dent wizard for paintless dent repair?

gforce11

Typically it is going to be more expensive to lease preowned vehicles because their residual values are harder to project, not to mention your money factors are usually higher.

car_rm

dna1,

The other option available to you if you are going to get another BMW is that you can extend your current lease with the same payment for up to 6 months as long as you can supply paperwork to BMWFS that you are getting another one. The residual % used for the next full year is what is causing the payment to increase as well as changes in the MF from then to now.

car_rm

cdnpinhead

BMW lease money factors and residuals seem to have come to an end.

I noticed a year or more ago that if you weren't interested in a 3 sedan, the situation wasn't nearly so favorable. Now all the MFs are going up and the residuals are going down across the board.

Should be interesting.

bizunit

Is this a good lease deal? THanks in advance...

...328i Black Sedan...

$480 a month TOTAL with tax of 6.5%

1854 at signing total (includes 1000 down)

36month Lease
12,000miles/year
RWD
Automatic
IPOD adaptor
Heated Seats
Power Seats/Doors

gforce11

was the sale price? whats the msrp?
leasing is like buying, your monthly payment is derived from the sale price of the vehicle. without knowing the sale price, can't tell you if its a good deal or not.

bizunit

34,500 sale price

36,000 msrp

ntlwhsle

Car_man,

do you know the current residuals and money factors on a 24 and 36mo lease? also do you have any idea how much over invoice dealers are getting?

thanks!

gforce11

based on the specs you provided, i'm getting $36,745 msrp, invoice $33,895. I hear folks getting somewhere around $1000 over invoice, yours is at least a few hundred more than that. Hard to say since the numbers you provided are estimates of the mspr and sale price, so I'm going to say that you're overpaying a bit.

shiftmake

I have a silly question, never leased a car before. If the residual is X % to which amount is it applied, i.e. X% of MSRP or X% of Sell Price which might be equal to Invoice (hypothetically)?

kyfdx

XX% of MSRP..

pmelanc1

Does anyone have the July MF and residuals on a 328 Sport Wagon. Also, I understand there is a MF reductions for current lease customers. Does anyone know how much?

Thanks.

richz

I will also point out that you include the destination charge in the "MSRP".

kinikia

I've done a lot of reading and research, but with this being my first lease, I definitely need help where I can get it. I can't seem to get the same MSRP as the dealer provided and when I do my calculations, I'm off by a few bucks. I'm still waiting to get the break down of the drive off amounts. But based on what I have so far, can you tell if this is a good deal? Thanks!

Jet Black with a black Dakota Leather interior. It has these options:
- Premium Package
- Navigation system
- Automatic transmission
- Heated front seats
- Park Distance Control
- iPod/USB adapter

MSRP is $46,850
Sale price is $42,645.
The monthly lease payment is $588.84+tax, which is a total of $637.59 for LA County.
Total drive-off is 2510.43, which includes a $550 refundable Security Deposit.
Money Factor is 0.00190
Residual @ 56%

beemajey

i just ordered a new bmw and already gave a 1k deposit on it. based on the information below total payments came up to $540(tax included) per month with 3k to walk out the door based on a 36 month lease with 15k miles per year. i'm not sure what the actual purchase price of the car was given that i negotiated pmts based on putting $3k down (to walk out the door) till i arrived at what i thought was a fair deal. i ran all the calculators based on the july 2008 lease rates on this car (36 Month – Residual 55% of MSRP – .00185 Base Rate) and it seems like i gt a pretty good deal. please let me know what you think of this deal? should i sign the contract or can i make a better deal elsewhere? your advice is much appreciated. thanks.

Base MSRP $35,600
Premium Package $3,350
Sport Package $1,100
STEPTRONIC automatic transmission $1,325
iPod and USB adapter $400
Satellite radio with 1 year subscription $595
Destination & Handling: $825
Total MSRP as Built $43,295

please note that i was working with 3 delaerships in my town, they were all very competitive. then when i was presented with that offer from one of the delaers the other 2 tried working very hard to match this deal but they couldn't and fell out of the race, one of the dealers even said that its impossible to get this deal done...(that's when i thought maybe i did get a good deal) ---- your advice would be very beneficial as to whether i should sign this contract or not. thank you in advance for yor help.

CarMan@Edmunds

Hi ntlwhsle. Here's the info that you're looking for. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2008 BMW 335xi with 15,000 miles per year are .00150 and 66%, respectively. The numbers for an otherwise identical 36 month lease are .00150 and 56%. I am not personally all that familiar with what the market is like for this car right now, but in general car dealers are hurting. If you are in an area that has a decent level of competition, shoot for a selling price that is as close to dealer invoice minus the $1,260 dealer cash for a free automatic transmission as possible. You should be able to get some pretty good feedback on how much you should pay by hopping on over to the "BMW 3-Series Prices Paid and Buying Experience" discussion.

Car_man
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CarMan@Edmunds

Here you go, pmelanc1. You never mentioned what term or mileage allowance you need, so 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 buy rate lease money factor and residual value for a 36 month lease of a 2008 BMW 328 Sport Wagon with 15,000 miles per year are .00195 and 54%, respectively. BMW eliminated its special owner loyalty money factor reduction when it enhanced this vehicle's lease program on July 10th.

Car_man
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fasanfamily

I am interested in figuring out what my lease would be on an automatic 328i, 24 or 36 month with 10k miles/year. My info from earlier in the month was a .00165 MF with 69% and 58% residual respectively (both adjusted up 3% for 10k miles). Is this accurate still? Also, are there additional incentives (aka $1,260 for automatic cashback)? Just got an email from BMW touting new lease rates and incentives that they imply came out on the 10th and was wondering if anyone knew what they were.

Thanks,
Chris

mitsin

Hi ,
I have a 2006 BMW 330i ( w sport and premium) on a two year lease ending in another 30 days. The lease was for 10K miles a year but i have hardly used half of that . So in two years i have a total of 10K miles on this car.

Is it a good deal to buy out the car or just turn it in? Its in excellent shape . I went through a lease-end pre-inspection and only one minor scratch on the bumper .

Does BMW pay back anything for unused miles . i have used only 10K miles out of the 20K as part of the two year lease. Dealer was saying something like its valid only over 15K miles. Is that true? I cant find anything written specifically about this on BMW sites.

Thanks

ursamajor

It seems that you might be able to sell that car and keep some cash after paying off the residual. It depends upon the terms of the lease. If you've had zero body work, it can possibly be sold for more than you realize. I would check around the Edmunds site first, perhaps visit a CarMax near you, check comps on E-Bay.

kyfdx

You can only get a refund on extra miles purchased, over and above 15K/yr.. If you have a 10K/yr, 12K/yr, or 15K yr lease, there is no adjustment for coming in under your mileage allowance. (Hey.. an honest dealer... who knew?).

What is your buyout number? I wouldn't buy it to try and re-sell to make money on it... The chances of that are slim.. But, if you like the car, and don't mind keeping it for another couple of years, it might make sense.. The lease deals are pretty good on the new sedans, though..

You might find that buying it out results in a pretty darn hefty payment for a car that you only drive 5K/year, though..

regards,
kyfdx
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mitsin

Hi,
The residual or buyout value is 31K. I am not too inclined to buyout the car unless there is a significant money that can be made on reselling it .

Thinking of just turning in the car .

jeffman619

also don't forgot that if you buy it out you will have to pay the tax on the $31K.. so you're looking at another ~$2400.

i tried to do this. I put an ad for my 2006 325i sedan. I didn't get a single call on it. I think you're better off just giving it back. it'll save you a lot of hassle. good luck.

Oh, also... i was worried they would try and ding me on wear and tear. The guy hardly even looked at the car. so i dont recommend fixing it up at all before you turn it in!

cdnpinhead

that factory-subsidized leases usually had (until quite recently) inflated residuals (relative to what the car is actually worth at lease end) and/or an artificially low money factor (interest rate) to keep the monthly lease payments "affordable." They were willing to suck up the loss at the end of the lease in order to keep the cars flowing. Leases through banks were much more realistic, therefore expensive and less desirable (if you're the person making the monthly payment).

That particular pyramid scheme seems to have imploded somewhat. The MFs are up and the residuals are down on BMW leases, and some mfrs are getting out of leasing altogether.

gforce11

If you are under mileage, you should consider appraising it as a trade in to see if there's any equity in your case. If your buyout is 31k, you may want to see if any dealer will give you more than 31k for it. Then you get to pocket that difference.

i_am_i_said

I live in Orange County California and this was the best offer I got from 2 local dealerships today. Good deal?

335i jet black exterior, black interior
Premium package
iPod
12k miles
36 month lease

Selling price: 42,474
544 a month, INCLUDING tax
Total down including all taxes/fees: 3,500
MF: .00195
58% resid

Does NOT have sport or navi.

skoontz

Hello,

I'm looking for some experts to chime in on this prospective deal.

$40,870 MSRP
$39,870 Cap Cost

MF .00165
58% Residual
$1500 down
$598 month for 36 months

Premium package
Sport package
Steptronic automatic transmission
Satellite radio
iPod and USB adapter
Titanium Silver Metallic exterior with Black Leather interior

Thanks,
S

gforce11

Looks like you are paying at least 2k over invoice, which I think it's too much. Ideally, I would shoot for 1k over invoice, at most, 1.5k over invoice. 2k is a bit much. You might also want to consider buying since there's a 0.9% financing available. You are paying around 3.96% by leasing.

soupcon

i have probably been to these same dealers ... or is it .....?

anyway, you should be able to get invoice minus at least half the price of the automatic trans credit (i believe that is $1325). really you should be able to get all of that amount off of invoice. plus you should be getting a MF of .00165. that's the best i've gotten (from my guy at new century in alhambra) in the last few days.

if they're not showing you the deal sheet, then go somewhere else (like new century) where they will. otherwise, i guarantee they are messing with you.

CarMan@Edmunds

Hi Chris. What you were told about BMW's lease program being enhanced on July 10th was correct. BMW Financial Services' current buy rate lease money factor for the 2008 328i is .00125. Its residual values are the same as the ones that you mentioned.

Car_man
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jakelat

Does anyone know if BMW is offering any owner loyalty MF reductions on the 3-series and the x3?

punktux

2008 328i Coupe manual metallic paint with options

The invoice price on edmunds is $39580, MSRP is $42400

dealer quote:

sale price: $39,755 ; 36month/10k miles

Monthly payment: $529.51+tax

MF = 0.00165
Residual 58%

Breakdown of driveoff

$600 deposit
$323 license
$825 acquisition + $68 acuisition tax
$8.75 tire fee

Is this a good deal? the driveoff is quite expensive. what fees should I negotiate on? how much down payment should i make?

many thanks for helping me out.

davidd3

Coming out of a 2006 330i sedan. Taking delivery tomorrow of a 2008 328i coupe. Took advantage of the early out program - 1 month early in my case.

Got lucky. Lease program at time of delivery (Aug) turns out to be better than lease program at time of order (Jun). Residual stayed the same (55%) but money factor went down (from .00185 to .00145). So instead of paying $650 per month, I'll be paying $621 per month. Here's some details.

328i coupe, with alpine white exterior, black leather interior with aluminum trim, automatic transmission, premium package, heated seats, Logic 7 stereo + sat radio.

MSRP: $43,395
Edmunds Invoice Price: $39,970
Edmunds TMV: $41,705
Sale Price: $40,503
Term: 36 months
Miles: 15,000 per year
Residual: 55%
Money Factor: .00145 (= about 3.5%)
Monthly Payment: $621all-in (acquisition fee and tax capitalized)
Drive-off: first month's payment + DMV fees
Location: NY / Westchester County

davidd3

Tax rate is 7.375% by the way.

jimsfx

About to make this deal tomorrow in SoCal and would just like to get some friendly advice, so please chime in.

2008 335i
Crimson Red/Black Leather

MSRP of $49,395

Premium Package = $2,550
Sports Package = $1,700
Automatic =$1,275
Comfort Acess =$500
Heated Seats =$500
Navigation =$2,100
Sirius Satellite Radio =$595
USB/Ipod Connector =$400
Paddle Shifters =$100

The sale price is $43,786

24 months/10k miles per year

$825 Acquisition Fee
RV = 69%
MF = .00150, (Buy rate) but requires a $600 deposit or it is .00165 without
$1K Cap Reduction (I know, but I wanted my payment lower)
Total Drive Off consists of $2,624 ($600 refundable security deposit / 1st month payment Inc. tax / CA license fee / $1,000 cap cost reduction / Plus tax on the $1000 down.

Payments are $555/month, including tax.

Oh, and they are throwing in the $148 floor mats...Whoo hoo!

Let me know what you guy's think before I do this.

Thanks!

purchasingsoon

MSRP 38,645
Edmunds invoice: 34,815
Current offer to me: $35,588

328xi w/auto, power front seats, heated front, ipod adaptor.

36 months, 12k miles, 58% residual, mf .00165

due at signing 2,375 -- first pmt (498), plates and registration (552 -- what the ?), acquisition fee (825), refundable security deposit (500).

tax rate 7.15%, rolled into lease for montly pmt of 498

Questions:
given the mf was recently lowered to .00125, how do i negotiate to lower my mf? he says he is making a little profit on my mf because his offer on the car price is so reasonable. i went back and forth, and i can't get him to lower the mf from his markup of .0004.

the offering price seems ok to me, but if i could get him to use the buy-rate mf, i'd save around $25 per month.

anyone have any advice? do you think this is the best i can do? why is the plates and registration figure so high?

thanks everyone!

kyfdx

given the mf was recently lowered to .00125, how do i negotiate to lower my mf?

Find another dealer that won't mark up the money factor... Then, buy it from him, or ask your dealer to match it.. Your dealer is counting on you signing, because he made it under that magical $500/mo. level..

You know about the $1200 dealer incentive on automatic equipped vehicles, right? Also, he marked up the base $625 acquisition fee to $825?

Are you sure the .00125 applies to the Xi model? I think the Xi number is .00145... I'd check on that.. It's possible he is only marking it up by .0002

regards,
kyfdx
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jimsfx

Hi,

It is my understanding that if you are paying a security deposit, then you get the current buy rate, which is in fact .00125, and not anything above that. Assuming you are Tier 1 credit. I would fight for that in your case.

Jim

kyfdx

The security deposit just insures that you don't get the .00015 SD waiver bump... The dealer can still mark-up the base rate by .0004..

Returning customers don't have to make a security deposit.. but, the dealer can still mark up their rates, as well..

regards,
kyfdx
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jimsfx

Thanks kyfdx...

Do you have any comments on the deal I posted (# 2386).

Thanks,

Jim

kyfdx

Yeah.. it looks pretty good..

Considering the price, the extra $200 on the acq.fee isn't much... I didn't calculate invoice, but even with the $1200 auto incentive, you can't be leaving them much profit.. No markup on the MF, either..

I did run the numbers on a spreadsheet and they are spot on.. Only $2/mo. less to go with 36 months.... so, I'd stick with the 24 month term...

Of course, I wouldn't put the $1000 down, but you already knew that...

regards,
kyfdx
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jimsfx

Hey kyfdx,

Thanks for the reply. I just commented on the extra $200 on the Acq. fee and here was his response...Care to comment on it?

I called the manager at home this morning and he said that the $555 is the best he can do. If not we can go back to a less optioned 328i. As far as the acquistion fee. Yes it is marked up $200. The finance people get paid off that. You don't work for free do you?????

I know you want more off and I wish that I didn't go to the manager and ask him for a Blow out deal to begin with because I should have known that you wanted to keep go lower and lower(which I understand). I could have started at a much higher price and then gone down and down. But I didn't in respect for you.

I honestly worked very hard for you on this deal. The manager said to me why are all my deals blow out deals and the dealership not making any money. I make $200 on this deal so if you want the car I will appreciate it. I basically sold 10 cars last month at a $270 average which is $2700. Do you know of any good jobs???

It seems like he is playing me a bit to buy this car, and somehow knows that my current payment on my FX is $555.

By the way...MSRP is $49,395 on this car and he is discounting it $5,600.

jakelat

Keep in mind the free Auto trans promotion, which should take another 1260 off the invoice. I would expect to pay the base MF and only a few hundred over invoice, if not right at invoice. keep shopping.

jakelat

Me, personally, I would RUN from this dealer. There are plenty of dealers out there willing to sell the car at published MF, published Acq fee, and a few hundred over invoice. Keep shopping. Just my 2 c worth...

jimsfx

Here is the deal though,

He is actually going $2,100 UNDER invoice price, and I have bought one car from him 2 years ago, and brought a friend in two weeks ago that bought a 328i.

jakelat

something still does not compute. given those #s, you should be at 478+tax. Take a look at http://www.leaseguide.com/calc.htm

jimsfx

I ran the numbers in that yesterday, and just now to be sure and I get a payment of $553.34. Where are they off?

MSRP $49,395
Base CC $43,786
24 months, 10k miles
69% RV
.00150 MF
$1,000 CCR