BMW 3-Series Lease Questions

wahoo90

This is a great site and any advice would be appreciated. I am familiar with leases, but this will be my first with BMW. I am very pressed for time and don’t have the desire to negotiate this to death, but I would love any advice regarding what obvious area where I could do better.

Looking at a new 2009 335 conv – been give these terms:
Selling price – 52,300
Total Cap cost – 53,885
Money factor - .00200
Residual % - 59% (32,686)
36 months – only thing down is first month and 800 security deposit (it will be perfect business credit, but I have never leased with BMW before)
10,000miles

This seems to result in a monthly payment of 762.04
This seems a bit high to me based on recent non-BMW leases I have had for similarly priced cars? Perhaps a decent offer, but any advice or where I may be missing something obvious appreciated

Thank you!

stikman140

This is my deal on a 09 328i xdrive 36 months 10k a yr. didnt sig yet.
White/black Navigation, premium pkg, cold weather pkg, xenons, ipod, hd radio

MSRP 45500
sales price 40650
down payment $1300 total. plus $1000 cash incentive. $2300
payment $564 taxes included.

The dealer said they are loosing $200 but I think there is still room for another $20 on the payment. Any thoughts.

Almost forgot NYC salers tax. 8.875

kball2

Car Man / Others,

Has anyone had an experience with BMW dealers adding an advertising co-op charge and a training service fee to the invoice price of the car? My dealer is trying to add $225 for co-op and $180 for a training service fee.

Please help!

Thanks

xrayz

These fees are added by every BMW dealer, but your numbers look high. I was quoted 180 for training and 100 for MACO (advertising). I'd counter with that number and see what they say. Not sure if MACO has regional variation though

MULAWYER

Anyone have the current money factor & residual for a 328i? Looking at probably the manual transmission, but might do the auto since I saw the free offer on that and the wife would probably be happier with the auto, so both would be helpful. How does BWM handle extra milage upfront? Is it a different residual like most others, or something else?

cotmc

Yes, it is a different residual. Last month, for my 2009 328i 36-month lease with BMW Financial, I believe the residual was as follows:

0.60 for 10K miles/year
0.59 for 12K miles/year
0.57 for 15K miles/year

mgoblue4

Does anyone know what wheels come with the 2010 328xi sedan with prem, sport and value package? Have not been able to find a picture. Thanks.

Karen_S

A reporter is looking to interview a consumer who passed on purchasing a Cadillac because there was no attractive lease option. Please send your daytime phone number to ctalati@edmunds.com by Wednesday, September 16, 2009.

CarMan@Edmunds

Hi mlong9876. It doesn't appear as though you ever mentioned what trim level you are interested in, but looking at the money factor that you mentioned I suspect that it is the 2009 328i xDrive Coupe. Correct me if I'm wrong. If so, the car that you want probably has a spread of around $3,500 between its full MSRP and its dealer invoice price. Add to that the $1,000 and you have a total of approximately $4,500 to play with.

After backing out the sales tax, it looks like you're getting this car for around $36,500...which would be $6,195 under its full MSRP. That means that the dealer is selling you this car for $1,695 under dealer invoice. Normally I'm not a big fan of demos because it never seems as though dealers are willing to provide enough of an additional discount on them, however this deal seems very fair to me.

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CarMan@Edmunds

Hello bmwpower2010. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2010 335i Coupe with 10,000 miles per year are .00200 and 62%, respectively.

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CarMan@Edmunds

Hi 2007coupe. If you want to purchase your vehicle at lease-end, you will have to do so directly through BMW Financial Services. Your car's end-of-term purchase option price should be listed on your lease contract. It wouldn't hurt to give BMW FS a call directly to see if they would be willing to sell you your car for less than that. More often than not banks won't, but you don't have anything to lose by trying.

It sounds as though you were attempting to work with dealers to get them to buy your car from BMW FS when you turn it in and then sell it to you for less than you would have to pay to buy it from BMW FS directly. Unfortunately, there's no magic secret to getting dealers to offer you a great deal on this sort of transaction. You just need to shop around.

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CarMan@Edmunds

Here's the info that you're looking for, kball2. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2010 328i Sedan with 10,000 miles per year are .00225 and 61%, respectively.

BMW has some cash on leases of the 2009 328i Sedan, but none yet on the 2010 model.

In my opinion, $500 over dealer invoice would be a very good deal on this car.

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CarMan@Edmunds

Welcome wahoo90. I'm glad that you enjoy this site so much. The lease program that you mentioned is right in line with BMW FS' current program for this car. That means that the only variable that will really make a difference on your car's monthly payment is its selling price. As I'm sure you are aware, the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. It's difficult for me to tell how large a dealer discount you negotiated on this car without knowing what its full MSRP is. If you let me know, I will gladly give you my opinion on the dealer discount that you are being given.

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CarMan@Edmunds

Hi MULAWYER. Here's the information that you're looking for. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2010 328i with 15,000 miles per year are .00225 and 58%, respectively.

I had to make some assumptions about the model year, term, and mileage allowance that you are interested in. Let me know if you want something different.

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stikman140

Hi Car_Man,
This is my deal on a 09 328i xdrive 36 months 10k a yr. didn't sing yet.
titanium silver/black Navigation, premium pkg, cold weather pkg, ipod, hd radio

MSRP 45300
sales price 41050
down payment $2000 total. plus $1000 cash incentive. $3000
payment $538 NY taxes included 8.875%.

Is it a good one. I'm supposed to go friday to sign and pick it up.

Thanks :shades:

hotkristin

Ok here is my current deal.....input...i want to sign by Friday.....

BMW is paying my last payment on my 2007 328 xi lease, so here's the offer:

2009 328 XI Coupe
MSRP 47,800
36 Months 12K miles a year
$1500 due at signing (includes first payment)
478 a month PA tax included

Seems like an awesome deal to me....please comment!

rahulg

Hi Car Man, Pat, Karen

can you pls let me know what are the lease terms for 36 mth and 48 mth, 12 k per yr mileage for 2009 BMW 328i Convertible? Also pls share the comparable figures for 2010 model also to determine whether I should buy 2009 or 2010. Need to buy this for my wife and any prompt responses would be appreciated since need to get back to the dealer by day after tomorrow. Thanks in advance.

johnyyd

335i sedan 2009 sport pkg steptronic cold weather BMW assist
MSRP 48,050
Negotiated lease price 42,800
15,000 miles 36 months lease
4000 downpayment (includes 1st mo, security deposit, acquisition fee and 8.675% tax)
599/mo
Is it ok to go for it ?

wahoo90

Thank you car_man - that is helpful.
The dealer is suggesting that MSRP on this particular vehicle is 55,400 with a selling price of 52,315. I am working with this particular dealier "long-distance" - so not quite as easy to verify the exact details and options that can sometimes affect an accurate full MSRP number, but I am assuming for the sake of discussion that they are being completely accurate with me on the MSRP. They are battling me pretty tough on no further reduction of the selling price - which seems a bit high to me given MSRP, but I fully respect that this is their right. They have been more aggressive with an "additional" cap-cost reduction which makes the final total cap cost almost the same as the selling price (thus - basically negating tax, tags, assignment fee) - they claim is just a part of September BMW incentives.
Also - I thought I read where the current money factor should be .0018 rather than .0020. This doesn't change things dramatically and I realize they want to try and make a profit where they can - but seems like if they say things like "it is what it is" for some of these numbers, I should be able to say the same on the money factor if in fact it really is .0018.

FYI - I have one other dealer being slightly more aggressive on price (basically the same price but a bit more in the car), but saying they must use a money factor of .0026 which should just not be the case.

Thank you

ghetto2315

Thank you again for all the Honda Civic information. My mother just purchased her 09 Civic LX (the 7th Civic my family and friends hav purchased in the last year using your info) using the August programs and utilized the $1,000 dealer cash. Now on to BMW as my uncle is near ready to purchase an M3 Convertible. Can you tell me any factory incentives for the M3 Convertible, such as dealer cash and/or finance specials? He's looking for either a left over 2009, or may just end up ordering a 2010 if there are no advantages of getting a 2009.

Thank you!

justjill3

Hi. I am looking to lease a 328 BMW and right now they are running a "$1000" cash-back on their leases which brings the standard 36-month, 10K mile to $349/mo with a $2500 down payment.

I haven't leased a car in years, and I've only ever driven Hondas, so I'm wondering if you BMW devotees might know if this "special offer" that only lasts until the end of September will in fact be replaced by an even better offer on Oct. 1. I'm assuming so, but would hate to miss out just in case I haven't a clue.

Thanks.

sksmith

Hi CarMan,

Can you please review the following dealer quote and let me know your thoughts. Some things that stand out are the high lease rate and selling price. I am interested in your thoughts for a reasonable selling price given current incentives ($1k lease cash, and I keep hearing about an $1840 auto trans manf-to-dealer rebate, how does this play in?)

M/M/T: 2009 BMW 328xi AWD 4dr Sedan
MSRP: $44,000
Invoice: $40,525
Options: Auto trans, Prem Pkg, Cold Weather Pkg, 17' wheels, xenon lamps, comfort access

Selling price: $42,160 (interested in your thoughts on a reasonable final price)
Lease cash: $1000
Fees: $725 Acq fee, $75 doc prep,
MF/Miles/Term/Residual: .00265, 10k miles, 36 mon, 60%
Mon Payment: $655

Much thanks!

rpmoore

Hello

I am a British guy working alternate months in NC, and in order to save money on renting cars from hertz, my company wants to purchase a car.

My problem is that I have only just got a social security ID, and therefore am having difficulty getting any soft of finance with zero US credit history. However BMW FS have an overseas executive plan, which I think is helped by being a customer of their back in the UK, and have agreed to a lease.

They will only extend a 2 year lease (the legnth of my VISA), and I wanted to know if I was being offered a reasonable deal in the circumstances.

Local BMW dealer offered me a 328i with sports package and premium package for around $42,0000. The max discount off this they would offer is 3.5%, which after a $1,500 deposit brings the monthly lease payment to $725/month for 2 years.

Any comments appreciated.

Thank you

Richard

rahulg

Hi Car Man

Pls give me details of lease for 2009 and 2010 BMW 328i convertible

Thanks
Rahul

msimeone

hey car man,

thanks for all the great information and help you've given us!!! Its really taken the headache outta car leasing and buying.

could you comment on $2000 cash lease incentives for west coast BMW leases.

Is it just the 328 i or does it include the 335 i ???

Is BMW still offering it?

I live in LA and i'm looking to lease a 3 series BMW and i want to know what the best possible position to have when negotiating with dealers.

Would it be absurd to think that i could negotiate 2k UNDER invoice given that BMWFS is giving $2000 lease cash. What is reasonable here: 1500 UNDER invoice? I new to car negotiating/lease negotiating. Any insight is greatly appreciated.

Thanks,
Mark

CarMan@Edmunds

Hi stikman140. BMW is providing a $1,000 cash incentive on leases of this car in New York. In addition to that, the car that you described probably has a spread of around $3,500 between its full MSRP and its dealer invoice price. That gives you a total of around $4,500 to play with during your negotiations. The $4,250 dealer discount that you were quoted on this car is an excellent deal. Just make sure that the dealer uses BMW FS' current buy rate lease money factor of .00225 to calculate your monthly payment and you're in business.

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CarMan@Edmunds

Hi rahulg. Here's the information that you're looking for. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2009 BMW 328i Convertible with 12,000 miles per year are .00180 and 60%, respectively. The numbers for an otherwise identical 44 month lease are .00180 and 51%. BMW is not providing support on 48 month leases, so you definitely do not want to lease this car for that long.

The 36 month numbers for a 2010 model are .00200 / 61% and the 42 month numbers are .00200 and 54%.

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mlong9876

Thanks CarMan -- This site is great and once again, you have been very helpful.

I signed the deal yesterday on 09 328 xi coupe demo with 4k miles ($42,695 MSRP) for $440 per month (tax in) 12k/36mos. $1000 loyalty. They paid the last 2 lease payments on my 2007 328xi sedan and took it off my upfront money. I had $500 damage that they absorbed. I am bringing the car back with 10% fewer miles so I am getting a $200 credit for that as well.

Overall, I'm thrilled with the deal and I appreciate all you do for this board and the answers that you have given me.

Thank you!

bcd2

Hi CarMan,

Thank you for all of your insights on this forum!

What do you think of the following lease deal in Southern california?
2009 328i
36 months
MSRP is $44,025
Invoice is $40,525
Sale price is $40,000 (about $500 under invoice)
residual is 60%
The $2000 lease discount from BMW is applied to the down payment plus we add another $2000 for a total of $4000 drive off

Options are: Automatic, black dakota leather, Navigation, xenon lights, space gray metallic paint, Premium package, comfort access, fold down rear seats, HD radio, iPod/USB adapter

10,000 miles a year
$975 bank fee
0.0026 money factor
Monthly payment is $500 before tax

Is this a fair deal? One area of concern -- the car's been on the lot for 119 days and has 232 miles on it. Seems like a lot. I asked and was told that it is not a demo or "specialty demo".
Thanks in advance!

msimeone

Hey BCD2-

i'm in the same boat as you. I live in LA and have been dealing with 3 local dealers. so far the best deal i've gotten for a 2009 36 mo lease 328 i sedan 12k/year miles:
$1500 below invoice for cap cost (seems they just want to move a unit and said pick on in stock)
a .59 residual
the dealers have a been somewhat shaddy with the MF but one dealer mention 00150 which is a lot lower than 00260 but nothing in writing yet

also- bmw is giving an incentive on automatic transmission so you might want to mention that in your final negotiating...

please keep us posted on how it goes.

Car_Man (other moderators): could we please get the official BMWFS MF for sept on 328 i sedans with 12K per year.

Thanks So Much
Mark

darthwohl

How much out of pocket for this car?

What packages did u get?

CarMan@Edmunds

No problem wahoo90. OK, so the 2009 335i Convertible that you are interested in has an MSRP of $55,400 and a selling price of $52,315.

This car probably has a spread of around $4,100 between its full MSRP and its dealer invoice price. Add to that the $1,000 cash incentive that BMW is currently providing on leases of this car (this allowance is larger in the West) and you have a total of around $5,100 to play with during your negotiations. This puts the offer that the dealer made to you at around $2,000 over invoice. That's enough room that it probably wouldn't hurt to comparison shop a little to see if you can beat this offer.

BMW Financial Services' current buy rate lease money factor for this car is indeed .00180 for returning customers or new ones that pay a security deposit at lease signing.

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CarMan@Edmunds

You're very welcome. I'm glad that I was able to help your mother out. Now on to your uncle.

The only special offer that BMW is currently providing on the 2009 M3 is 0.9% financing for up to 5 years. It does not have any cash or lease support on this car at this time. BMW is not providing any support yet on the 2010 model.

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CarMan@Edmunds

Hi justjill3. BMW's current lease program is scheduled to run through November 2nd. While it is theoretically possible that it could make an unscheduled enhancement to this program, chances are that it lease program on the 328i will be the same next month.

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CarMan@Edmunds

Hi sksmith. Let's start with this car's money factor. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2009 328xi Sedan is .00225 for returning customers or new ones who opt to pay a security deposit at lease signing. It will waive its security deposit requirement for non-returning lessees in exchange for a .00015 money factor increase. As you can see, the money factor that you were quoted is too high. This is not surprising, BMW dealers are notorious for trying to mark vehicles' factors up to add additional hidden, back-end profit to deals. See if you can find a dealer that will calculate your payment using this car's buy rate.

The selling price that you were quoted for this car is $1,635 over dealer invoice, which isn't great. Making matters worse though are the fact that this car has a $1,840 option credit and at least an additional $1,000 cash incentive on leases of it. Add these to the $1,600 and we're talking about almost $4,500 over invoice, which definitely is not a good deal. If I was offered this lease, I personally would shop around.

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CarMan@Edmunds

Here you go, Rahul. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2010 328i Convertible with 15,000 miles per year are .00200 and 59%, respectively. The numbers for an otherwise identical lease of a 2009 model are .00180 and 58%.

You never mentioned how long you want to lease for or what mileage allowance you need, so I had to make some assumptions. Let me know if you want something different.

BMW is currently providing a $1,000 cash incentive on leases of the 2009 328i Convertible in most of the country, though this cash is greater than that in the southern and western U.S.

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CarMan@Edmunds

You're very welcome Mark. As you mentioned, in the Western U.S., BMW is providing a $2,000 cash incentive on leases of the 2009 328i Sedan. Its cash incentive on the 335i Sedan is actually slightly better than that in the West, $2,500.

Remember that BMW is providing an option credit of $1,260 for a free automatic transmission on these cars as well.

I know that LA is a competitive market, but it might be difficult to find a dealer that's willing to lease you this car at dealer invoice minus all of the available cash incentives. I personally would shoot for $500 to $1,000 over minus the cash and see what happens.

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CarMan@Edmunds

You're very welcome, mlong9876. Congratulations on getting your new "3." Thanks for stopping back to let us all know how everything turned out. If you have the time, make sure to hop on over to the Dealer Ratings & Reviews section of this site to tell everyone about your recent dealer experience. Enjoy your new ride :shades: !

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CarMan@Edmunds

Hi bcd2. $500 under dealer invoice after the deduction of the $2,000 cash incentive is a very good deal on this car. The dealer is making back a little of this by marking up your car's money factor slightly from its base .00220. See if you can get them to use the buy rate to calculate your car's lease payment. Even if you can't this is still a good deal.

I wouldn't worry about the mileage or how long this car has been on the lot. While two hundred miles is not ideal, it's not that big a deal. Any vehicle that has been on the lot for that long is bound to have some test drive miles on it.

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anowlan

Car_man, I have a 335d on order that should arrive prior to Nov. 2. Can you provide current residuals and money factors for 36mo, 12k/yr

msimeone

sksmith...

i agree with car_man...shoot for 500 over invoice BEFORE lease cash and credits. use edmunds.com to submit your request for the above BMW to dealers in your area. You'll be contacted by the internet salesperson who knows you've been doing internet research and are more educated than the average consumer. I know in Los Angeles the BMW internet reps have been great. They cut to the chase and they are willing to move cars. But you gotta work it. get a deal from one dealer then call a second dealer and specifically ask how much lower can they beat the price in terms of sale price and MF.

Good Luck,
Mark

mikel96

I appreciate reading all the comments here and hope someone can give feedback about an offer I have:

2009 328i sedan auto, prem, nav, ipod, smartphone, 17 wheels, satellite with
MSRP 43195, lease Adj Cap Cost 39160 (already reflects $1000 lease cash and $1260 trans credit). Is this reasonable OR should I shoot for less than 39160? Residual 59% 12000 miles, MF .00220 (FYI - dealer has to transport car from out of state).

For purchase price (ie. buy not lease), I've been quoted $1240 higher than lease price = purchase price of 40,400. That seem awfully high?

Thanks for feedback!

bcd2

Thanks Car_man! It's actually $500 under invoice and then the $2000 lease credit is being applied on top of that so it's even a better deal. Makes their marking up the money factor somewhat understandable. Thanks again, bcd2

CarMan@Edmunds

Hi anowlan. BMW is not currently providing any lease support on the 2010 335d. As a result, if you were to lease one through BMW Financial Services, you would have to use its standard lease money factor...which should be around .00280 right now. BMW FS' current 36 month, 12,000 mile per year residual value for this car is 57%.

When negotiating the selling price for this car, make sure to take the $4,500 cash incentive that is available on it into account.

These programs are scheduled to run through the beginning of November, but it would not surprise me if BMW made a few tweaks to them for October later on today.

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alexryan1

Hi. I've been quoted a monthly lease payment of $410 month for 36 mo./30,000 miles with $2500 cap cost reduction. The msrp is $40695.00 and .60 residual. Is this a good deal? I'm in NJ.
Thank you.

CarMan@Edmunds

You're very welcome, bcd2. Its no wonder they are trying to mark up your money factor if the dealer is selling you this car for under invoice.

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CarMan@Edmunds

Hi alexryan1. The easiest way for me to evaluate this deal is for me to look at the selling price that is being used to arrive at this payment. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is difficult to tell how large a dealer discount you are being given.

Let us know what the selling price is and I'm sure that either myself or another knowledgeable community member will gladly tell you what they think.

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alexryan1

Hi Car_man,

I am being told the cap cost is $36,290.00
The msrp is $40695.00 and I'm putting a $2500.00 deposit. The money factor is .00225.
Any help is greatl appreciated. Thank you.

pcmike

Car_man,

I'd like to find out the MF, residual, and invoice price based on a 15,000 mile allowance and 36 as well as 39 month lease on the following 335i sedan:

Base MSRP $40,300
Space Gray Metallic $550
Black Dakota Leather $0
Aluminum Trim $0
M Sport Package $3,750
• M Sports leather steering wheel with paddle shifters
$100
Premium Package $2,650
STEPTRONIC automatic transmission $1,325
Comfort Access keyless entry $500
Fold down rear seats $475
Smartphone Integration $150
iPod and USB adapter $400
Logic7 sound system with Surround Sound and Digital Sound Processing $875
Satellite radio with 1 year subscription $350
Destination & Handling: $825
Total MSRP as Built $52,250

Also, do you have any idea if BMWFS offers any sort of special program for recent graduate students (PharmD) and if there is any incentives whatsoever (this would be my first BMWFS lease)?

Thank you.

dxl

Hi Car_man,

I have seen people mentioning $1,000 lease cash in Northeast (NJ). Does this apply to purchase as well? If not using BMWFS (0.9% currently?), is there more room for incentives/negociation?

Many thanks.