BMW 3-Series Lease Questions

kyfdx

You may be able to lease the same car again... but, used cars don't usually make great lease deals.. If you are interested in that, I'd try to see what BMWFS says first, before going to the dealer.. Or, perhaps you could turn it in, the dealer could then CPO the car, and re-lease it to you... with the CPO warranty.. But, I'm betting the price will not be worth it..

regards,
kyfdx
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kyfdx

Yeah... Using those numbers..adding the acq.fee to the cap cost, and bumping the MF up to .0021, to waive the security deposit.. I only come up with $540/mo.. plus tax..

So... unless the sales tax where you live is around $65/mo., they are probably bumping the money factor the maximum... With the maximum money factor of .0025, the payment would be around $569/mo.+tax..

regards,
kyfdx
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jvost

Hi all:

I've been reading through the thread of discussions trying to figure out what the current factors and residuals are, but am a little confused. One post mentioned a factor as low as .00075. Answers to the following questions would be really helpful:

1. Assuming top tier credit, what is the lowest money factor available for a 36 month term?

2. What are the current residual percentages for a 36 month term for 10K, 12K and 15K miles?

Is there some consensus about how much over invoice one should be paying?

Finally, are there any special deals (incentives, low factors etc.) on particular models that I should know about?

Thanks!

jmax1

Lease Experts,
I am looking at trading in my 03 Accord EX w/14,000 miles for a BMW 06 325xi lease special. Please look at these numbers and let me know if I should walk or run. Thanks
Price 35,085
trade 16,000
deposit 450.00
payment 500.00

kyfdx

1)On an '06 330i, the base money factor is .00195... The .00075 you saw was on an '05 330cic convertible..

2) 65%..64%...62%.. for 3yr.. 10K.. 12K.. 15K miles..

The '06 530i has a money factor of .0014, but the residuals aren't quite as high... in the '06 models, the 330i is about the best lease deal right now...

regards
kyfdx
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eyi

Hi, I am considering leasing a 2006 BMW 325 i, MSRP: $37120. The dealer offered a drive out price for $36,860, leasing terms are: 10000 miles a year for 3 years, 2000 down, 549 a month. Is it a good dael? Also, I live in Texas. I know Texas have different law regarding sales tax on leased cars. The dealer said he is saving me a lot on tax. is that true? Should I go for the deal? Please help me. Thank you very much!

jvost

Thanks for the summary. The dealer quoted me 64% on 10k, but may have just made a mistake. However he did quote me a money factor of .00265 and insisted that was the lowest rate available. Is there some technicality to qualify for the .00195?

Thanks,

jvost

jvost

The lease is nearly up on my 2002 325Cic and I'm planning on replacing it with a 2005 or 2006 330Cic (need more power!). Assuming a 36 Mo., 10K lease, what are the factors and residuals for the two years? Is there any special support on either of the two model years? Are the figures different for a 325Cic?

Thanks,
hwga

bdr127

Thanks for the summary. The dealer quoted me 64% on 10k, but may have just made a mistake. However he did quote me a money factor of .00265 and insisted that was the lowest rate available. Is there some technicality to qualify for the .00195?

BMWFS won't approve a lease contract with a MF marked up that high, so they are probably looking at the MF for the wrong car...

kyfdx

I agree with bdr127... Did you by chance get that quote in October? On the 330i, the residuals went up and the money factor went down for November..

regards,
kyfdx
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kyfdx

You definitely want to lease an '05 330Cic, if you can find one... The 3yr/30K residual is 64% and the money factor is .00075.. In addition there is $2K in dealer cash.. A comparable '06 model would be $100-$150 more per month...

regards,
kyfdx
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jvost

No, I got it on 11/17. I called back and was able to talk to a more knowledgable person who confirmed both the correct residual and factor. I think bdr127 was correct that the sales person (who was very young and probably inexperienced) looked at the wrong model. Thanks everyone for this valuable info!!!

jamaica77

This forum is a great resource for a lease rookie such as myself. Keep up the good work!

I am looking at leasing a 2006 325i, and got the following info from my local dealer:
-325i, Sport Pkg, Auto, Sat Radio prep = $35,020 MSRP
- With 1k off MSRP and 3k total out of pocket (cap reduction, plus tax, tag, title, dealer fees, deposit, etc), on 36mos lease w/12k per year = $495

(Figuring out how they arrived at these numbers and trying to come out on top = Priceless.)

I asked the rather suspect salesman about their residual (64%) and money factor (.0029!?!)...noting that I thought the MF was way too high. He replied that "that doesn't change, that's what BMW just sets - you're either in or out". I found that odd...and asked him how do they then provide incentives for customers with excellent credit (me), and he just said "they don't".

What is the base MF for an 06 325? I had hoped to negotiate +1500 over invoice with 1500 cap reduction and around $450 monthly payment - is this possible? If so, what combination of cap reduction, MF and dealer incentive would I need?

Thanks!!

abarr566

Need input on price quotes I've received from two dealerships on the East coast for a 330i (sports package/ leather interior/CD changer/heated seats). Quotes are from NC and NJ (I travel for work so I can get the car in either place; however, I live in NC). Are there any special problems with leasing a car in a state other than the state of residence? In terms of price, MSRP on the car is $43,000. However, both dealers have offered the car to me at $40,800. MF at .00195. Are these reasonable offers or should I push for lower? Also, is the Sports Package overhyped or worth the $$$?

kyfdx

1) Your salesman was correct.... BMWFS does not "tier" rates... you either qualify, or you don't.

2) BMWFS sets the residual... the dealer can't change it.

3) BMWFS sets the "base" money factor.. In this case, it is .0025.... They allow the dealer to mark it up a maximum of .0004.. which is how they got your .0029..

I don't know how your $3000 initial payment is broken down.. that is a lot of money, and they can hide a lot of garbage fees in there... but, the lease payment looks too high, even with the marked up money factor..

But, if you got a $1500 discount from MSRP, and rolled the $625 acquisition fee into the lease payment, using the base money factor, your payment should be approximately $468/mo. plus tax... Initial payment would be about $1100 plus the taxes, if you chose to pay them upfront...

regards,
kyfdx
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kyfdx

Leasing the car in another state shouldn't be a problem, because all of the paperwork goes back to BMWFS in Dublin, Ohio.. They have specialists who work on leases from each state, and are familiar with the sales taxes in each jurisdiction.. (the out-of-state dealer may be a little clueless about it, though).

Your selling price quotes look decent, and that is the base money factor... It never hurts to ask for more..

I'm a sport package snob.. so, I'm probably not the best person to ask... I don't have much experience with the E90, but on the previous model, the sport package really transforms the car... if handling is important to you, it is worth the money... Plus, the bigger tires look great, and the seats are fantastic... but, make sure you try the seats out, to make sure you like them..

regards,
kyfdx
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eyi

Hi, I am considering leasing a 2006 BMW 325 i, MSRP: $37120. The dealer offered a drive out price for $36,860, leasing terms are: 10000 miles a year for 3 years, 2000 down, 549 a month. Is it a good dael? Also, I live in Texas. I know Texas have different law regarding sales tax on leased cars. The dealer said he is saving me a lot on tax. is that true? Should I go for the deal? Please help me. Thank you very much!

kyfdx

How did the dealer say he was saving you all that money on sales tax?

A lot of dealers in Texas suggest using BMW's balloon payment program.. It is similar to a lease, but the car is in your name, instead of the bank, and you can get sales tax credit for trade-ins, that you generally can't get with a standard lease.

Maybe that is how he is saving you money on sales tax?

Leasing is not that great of a deal in Texas, as they charge the full sales tax, even on a lease..

regards,
kyfdx
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ohmark

Because of work at home, I am now putting much less mileage on a car. I am interested in a 2006 325xi. The minimum mileage on a lease is 10,000. If I only put on, say, 7,500 a year over the three years, I have left 7,500 miles on the table. In these circumstances I assume this car with only 22,500 miles after three years would be worth more than the standard 30,000 or 36,000 miles after a three year lease. Does this mean I would be better off buying and letting the extra value of the car accrue to me rather than to BMW? I previously always leased and always put on 12,000 to 15,000 miles a year, so the question never occurred to me before. Does the fact that the car is a 325xi enter into it? Thanks.

kyfdx

I think you have exactly the right idea... If your mileage needs are that low, you will probably be better off buying..

Another factor in favor of buying, is that the lease deals on the 325xi are nothing special right now, as dealers don't have many in stock, and basically sell them as soon as they arrive..

regards,
kyfdx
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sdgirl

I'm currently leasing an Audi A4 but would like to trade it in for a BMW 325i.

My 2004 "dolphin gray" 1.8T manual-trans A4 has just under 18,000 miles, leather, sport package, sunroof, power driver's seat and is in good condition. My current lease payment is $431.87 before tax, $465.34 after tax. There is 29 months left on the 48 month lease and the current payoff is $23,777.08. This might mean that I would be slightly upside down if I terminate the lease early. Current mileage allowance is 15k/yr so I'm under and could continue the lease if that is best but would love to trade for a BMW if I wouldn't lose too much money doing so. I live in San Diego, California.

What do you think? With the current incentives offered on this model would I be able to lease a 325i with an MSRP of about $34,145 (or $37,045 if I can't find one with minimal options) and get a monthly payment that is not too much higher than my current payment? What are the current money factors and residuals?

I would prefer a 24 month lease but would be willing to do a 36 month lease if needed (I now know that long lease terms are not a good idea).

Thank you for your advice!

sdgirl

I forgot to mention that both cars are sedans. Thanks!

fer1

Hi all,
I'm looking to lease the following car:
330i
MSRP=38270 (including 695 dest&handling)
miles per year=15k
downpayment=2k
to buy the car the dealer is including 150 plates & 489 dealer fee (not sure if this fee will be the same for leasing)
can you give me an idea of a good deal (including selling price in Florida) with the breakdown of residual, MF, and the components of the downpayment ? (I could include a security deposit)
Thanks in advance.

eyi

He didn't not say how, he just said he has a special program. What about the drive out price and the monthly payment? are they good? what do you think? Thanks for your help.

diye

kyfdx,

I found it's really a good time to lease a 2005 3 series convertible now:
$1500 cash back + low money factor + decent residual.

Here is car I tryed to negociate with a dealer here in Southern CA:

2005 325 cic
MSRP: 47200
residual: 62%, 12k/year
money factor: dealer asked 0.0014 first, then comes down to 0.00115 with $600 deposit
acquisition fee: $625
selling price: 42,200

This is a "new" car with 10k miles, dealer says it's driven by someone from BMW headquarters.
I can lease as normal, but the residual will be lower by $1500, essentially the value of the 10k miles.
So I am really getting an equivcalent selling price of $42,200 + $1500 = $43700.
Ofcourse this is not an attractive price, I offered back $40,500 instead of 42,200.

If my offer is accpeted, the lease payment will be $451/month, with acquisition fee rolled into the payment.
But the dealer won't come down, so I left.

My question is: is my offer reasonable? If you were me, will you accept a higher payment?
Even though this is a "DEMO" car, I don't see a big deal leasing it. I got to drive the same 36k miles within warrantee.

Thank you.

kyfdx

The lease deals on the new 325i are not that great.. I doubt you'd be able to lease one for the amount you are now paying for your Audi...

Also, you might be unpleasantly surprised at how much it would cost to get out of your current lease..

A 36mo/45K lease has a residual of 62% and a money factor of .0025...

regards,
kyfdx
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kyfdx

It is hard to say... if it is really a lease, and it includes sales tax, it looks like a decent deal...

But, without the details, it is hard to be sure....

regards,
kyfdx
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kyfdx

You are correct.... it is a very good time to lease an '05 BMW 3-series convertible...

But, your offer may be a little low....

To cite an example.... I know of a lease just negotiated this weekend on an '05 330Cic.... which has $2000 cash back vs. the 325cic $1500... On an MSRP of $49,345, the negotiated selling price was $45,200, or $4145 under MSRP.. (right around invoice, disregarding the incentive). I consider this a fairly aggressive price on a 3-series convertible..

So... if we assume that your demo is worth $1500 less than a new one... and the dealer cash is $500 less than on the 330i, then $5000 under MSRP seems like a decent price.. You might be able to get another $500 off, but I think your proposed offer of $40,500 will probably not happen..

I agree that the car being a demo is not that important, as you are leasing it..

Have you considered looking for a 330Cic? The money factor is lower, the incentive is higher, and the residual is higher than the 325cic.. The lease deal I mentioned above?.. For a 3yr/45K lease the payment came to $499/mo. plus tax, with only $1200 due at lease signing.... The price would have only been $473/mo. plus tax with 12K miles/yr.

regards,
kyfdx
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diye

Wow, your invaluable response is so quick. Than you.

So you consider the $42,200 offer by the dealer is decent.

My offer is bascially dealer's cost ( invoice - $1500), since it's a DEMO car, I would think dealer will eager to get rid of it.

One thing prevents me from pulling the trigger is that it got too many options than I needed. I may get a good value, but not necessarily enjoy it.

You are right, 330 is much better to start with, but you know, even in So. CA, not many 2005 convertibles are around dealer lots.

I will reconsider my offer.

Thank you again.

jmax1

Lease Experts,
I hear on these posts from experts and others that you should not put money down on a lease other than deposit, first month payment and fees and my trade which is less than the amount due at signing. How do you not put more money down? Thanks

bdr127

My offer is bascially dealer's cost ( invoice - $1500), since it's a DEMO car, I would think dealer will eager to get rid of it.

If it's a factory demo, as you seem to indicate, then they don't own it like a new car. They would have bought it from BMW as if it was a used car auction. Of course, the car's never been titled, so it's sort of in a weird state between new and used (but technically used).

My point is that they don't necessarily own it for "invoice" and they wouldn't have any of the dealer cash money apply to it, since it isn't a new car. What I'm trying to say is that they don't own the car for "Invoice - $1500".

The other thing I wanted to say was that they are not necessarily eager to get rid of it, as you seem to indicate.... It might say "demo", but since they bought it from BMW for their used car lot, it's just like any other used car as far as they're concerned.

fer1

Hello kyfdx,
Thanks for the info.
Just one more question : are MF lower at certain times during the year ? I mean, would I be better off during Dec or early Jan ?
Thanks again.

kyfdx

It can vary a lot... but, assuming they aren't getting rid of an outgoing model, or something like that, I seem to see the best lease deals in February and March....

I'm really generalizing here, and there are probably dozens of exceptions to this.... but, all things being equal, that is when I see the best lease deals..

That said, I'm picking up a new lease for my wife on Friday... so, what do I know? :surprise:

regards,
kyfdx
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isamu66

Well I did it...I just finished the lease on a new jet black 325i with leatherette beige interior. Here are the specifics...

MSRP-$32,945
Selling price-$31,210
Acquisition Fee-$625(rolled into cap cost)
Security Deposit-$500
Money factor - 0.0025
DMV fee-$265
Tire tax-$8.75
Residual-62% or $20,425.90
36 months and 15,000 miles per year
Pretax payment-$447.57
After tax payment (assuming 8.25%)-$484.49

Drive off payment-$1,258.24 (first month payment, security deposit, dmv fee and tire tax)

I think I got a good deal...and it is all thanks to Carman and Kyfdx! Thanks a bunch guys.

Also, you may remember I thought I may have credit issues. Remember I recently checked my credit and noticed a false collections account? (this artifically lowered my FICO to approx. 650) I notified the internet sales manager ahead of time. I was approved, much to my surprise.

I asked the internet sales manager what they look for in the credit approval process, and he said it is primarily the debt ratio of the person. They try to see what his/her income is versus any mortgage payments, other fixed costs, etc. The FICO does matter, but unless it is extremely low, then it is not an automatic cancellation.

FYI, during the "document process" with the Finance manager, he "forgot" to put the 45,000 miles I wanted...instead putting only 30,000 miles total! When I pointed this out (luckily I was going through it carefully) he said something about the computer screen not showing the right number...whatever.

Charles

tranw

Was I wrong to walk out of the following lease?

I wanted to lease a new 2005 325ci convertible. It's automatic, silver with gray interior, has both Premium and Sports packages, black soft top, aluminum brushed trims, heated front seats, xenon lights. The dealer claimed the MSRP was $46K, that his wholesale cost was $43000, and the price he was giving me would be $42808.

We agreed to $3000 total down (incl. taxes, 1st payment, some other fees) and 35 payments of $469 per month, at 12,000 miles per year. However, when I told him about the $1500 to $2000 dealer incentive on the 2005's and told him to deduct that from the price, he basically said no and I walked out. His story was that it was a dealer's and not a customer rebate, that it didn't matter, that he already had cut the MSRP way down. The sales agreement I was about to sign had the residual at $28888, price at $42808. The monthly payment of $469 seems really good to me, but his numbers seem inflated (i.e., higher than the numbers I saw on CarsDirect with those options) and his hard sell techniques were irritating.

Did I stupidly pass up a real good lease deal? I love the car, the other dealers seemed unwilling to match or beat those terms I got from this dealer -- should I crawl back and get it anyway?

Thank you for the advice.

tranw

A follow-up note on my question 20 minutes ago. I was asking whether $3000 down (incl. all out-the-door charges), $469/month for 35 months was a good lease deal on a new 2005 325ci convertible. The price dealer gave was $42808 -- and the CarsDirect price with those otions was $43216. Also forgot to mention that the $469 monthly payment included taxes. Thanks again.

hwga

Thanks so much for the info. I think it enabled me to get a pretty reasonable deal on a fairly loaded convertible. Here it is:

2005 330Ci Convertible
$0 down, 36 Mos., 30,000 mi

MSRP: $49,670
Discount: -$ 4,170
Aquisition: +$ 625 (rolled in)
Total Cap. Cost: $46,125
Residual (64%): $31,789
Money Factor: .00100
Payment: $476.14/Mo. (before sales tax)

I tried really, really hard to get them down to the .00075 money factor, but they wouldn't budge.
Since I am an existing BMWFS lease customer they waived the security deposit as well as the $350 disposition fee on the car I'm turning in. Note: This was the LAST 2005 330Cic I was able to locate in a 5 state region. Also, it had a little less than 2000 miles on it (the dealer's wife was driving it.) All in all, leasing a 50K european convertible for less than $500/mo., $0 down has to be good deal. Thanks again!

fer1

I said that the previous question was the last one but...
If a lock in a rate this month but the car needs to be ordered and it's on the dealer by January 06 could I choose which MF is applied ? (Nov 05 or Jan 06)
Thanks again.

kyfdx

It looks like the MSRP on that vehicle was $46,595.. I got that by dividing the residual value by the residual percentage.. ($28,888 /.62).

I don't have the exact figures, but I think that puts his invoice right around $43,300... Considering that $42,800 is $500 under that, that only leaves him $1000 after taking into account the $1500 incentive on the 325Cic..

I don't know your tax rate, or how that $3K upfront is broken down, but with $42,800 as the cap cost, the payment would be about $459/mo.+tax..

Your deal..
$469 1st payment
$500 security deposit
$625 acquisition fee
$300 title/license/plates

About $1900 total.. so, $1100 extra in there (more or less).. but, then again, we haven't accounted for tax, and his payment is only $10/mo. higher than this one...

If his MSRP is indeed $46,595 (this shouldn't be hard to check.. maybe some options he didn't list), then he gave you a pretty good offer... I don't really see where he has any more room to come down on the selling price... most dealers won't take a "mini" deal on a 3-series convertible... It seems probable that he is using the base money factor as well..

The details are important.. I'd want to know how much of the deal is sales tax, and how that $3K upfront is broken down...

regards,
kyfdx
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kyfdx

Yes... the rate lock is good for 60 days from the end of the current program.. So, if you lock in November, you are covered until the end of January... So, you should be able to use whichever program benefits you most..

But, you should ask your dealer, and make sure it is clear between you.. The rate lock is a given.. But, changing the lease terms to January, could be at the dealer's discretion, though BMWFS will certainly allow it.

regards,
kyfdx
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victord1

Would you mind double check my lease calculation?? I kept getting different numbers from the dealer's.
3yrs/36000 miles Lease

MSRP $44,345
Invoice $40,640
Selling $41,940
Residual 64%
Money Factor 0.00195
Acquisition Fee $625
Processing Fee $100
Tag/Regist $98
Security Dep. $600
Tax $1261.20
Tire tax $4.00
Monthly payment $569.8

I rolled the tax ($1261.20)and Acquisition fee($625) into Cap cost. Due at pick-up (security dep. + 1st month pay + proc. fee + tire tax + tag/regis)=$1371.80. 35 monthly payments of $569.8. I got the numbers from the dealer and used them to come up with the monthly payment($569.80) myself. They took it so quickly that it made me think that I might have made a mistake somewhere in the calculation.

I'm dealing through emails, and now the dealer is waiting for my response. Thanks.

kyfdx

Is the a 330i?

I come up with $3/mo. higher... but, close enough...

That is a pretty good deal..

regards,
kyfdx
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victord1

Thank you, KYFDX. You've given me much comfort.

Yeah, it's a '06 330i w/sport, premium, cold, comfort access and steptronic. I know it should be a 5-speed, but my significant other can't drive stick.

The dealer also told me that they couldn't locate a car with the exact combo in this region, so I can either order (6-8weeks) or choose an alternative which has satellite radio in place of the comfort access. The price would then be adjusted by: -$455(comfort access)+ $70(satellite prep). Yike, more calculation. :sick:

Anyway, now I just need to get this deal 'approved' by my BOSS. My wife is so bent on getting a RAV4.

bdr127

so I can either order (6-8weeks) or choose an alternative which has satellite radio in place of the comfort access. The price would then be adjusted by: -$455(comfort access)+ $70(satellite prep).

Note that Satellite Prep is not Satellite Radio... It just means you have the necessary wiring so that, in the future, you can install a BMW head-unit that has Sirius.

victord1

I caught that too. So I just said no. I'll wait for the exact car I want--why pay $70 for something I don't need or use!

jjis

MSRP $41,695
Invoice $38165
Selling $39,100
Residual 62%
Money Factor 0.0025
Acquisition Fee $625
Processing Fee $100
Tag/Regist $98
Tax $2500
Tire tax $4.00
Monthly payment $683.00

There is no money down on the lease and it's for 3years/54k. Taxes are higher bc of TX law.

The monthly payment seems high and the money factor is .0006 above Nov.'s base rate. Trying to figure out what's off before I agree to anything. Any suggestions?

vish_dc

Please let me know what you think of this deal:

2006 325i
Black - 4 door
Automatic Transmission
Premium Package
Heated Seats
Xenon Headlights
Adaptive Light Control
Satellite Radio Preparation

Total Suggested Price - $36545 (including $695 destination)

I will be paying tax, tags, title, aquisition fee, security deposit, first months payment at signing ($2265), no down-payment.

24/36 Month Lease with 18K miles per year - $550 per month
24/36 Month Lease with 15K miles per year - $515 per month

kyfdx

When you say "no money down".. does that mean $ZERO due at lease inception? Not even a first payment? If so, I can make the numbers match within a couple of dollars per month..

It looks like a decent deal, except for the money factor.. The base factor without a security deposit is .0021.... so, they are marking it up the maximum .0004... If they used the base money factor, your payment would be about $27/mo. less...

Those extra miles over 15K/yr are bumping up the payment substantially, as well.. Another $35/mo.. and, of course you already know how high Texas lease taxes are..

Seems like a hefty lease payment... You could finance the selling price, plus fees and taxes for 60 months at 5% APR, and your payment would only be $789/mo..

regards,
kyfdx
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kyfdx

You are paying all of the sales tax upfront? If so, then for the 36mo/45K lease, using the base money factor, the selling price would be around $35,950.. or, just $600 less than MSRP..

Or, possibly.. a $1400 discount, with a marked-up money factor...

Either way, not a great deal.. The lease program on the 325i isn't exactly stellar, even at the base rates.. Add a fairly high selling price, and it doesn't make for much of a deal...

regards,
kyfdx
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jjis

The first payment is due at signing. Also, there was no security deposit mentioned to me as an option. Is the security deposit a good idea or are you better off investing that amount over the term of the lease? Thanks for the quick reply...I'm just trying to get as much information as possible before committing.