BMW 3-Series Lease Questions

buynewbimmer

Thanks much.

Jim

mnoker

Is BMW going to have any special offers for Winter on the 325i?

bdr127

Is BMW going to have any special offers for Winter on the 325i?

I'd say the current 77% lease residual for 24mo/10k is pretty special...

If you're looking for rebates and stuff like that, it ain't gonna happen.

jpcoleman

kyfdx,

I think I got a pretty good deal when negotiating a sale but I am now attempting to negotiate a lease and my numbers are a little off from what I am reading here, specifically I received the Money Rate of .0029. I also received Residual rates of .64 for 10K miles, .63 for 12K miles, and .61 for 15K miles.

If I have interpreted the other postings here correctly then I should be seeing .64 residual for 15K miles and .00195 money factor from BMW FS. If that is the case then is my dealership trying to make up for the money they didn't make on the sale with the lease rate? If so, is that something I should still be able negotiable?

Here's the rest if it matters;

Invoice MSRP
Base Price* $30,030 $32,800
Selected Options $5,345 $ 5,820
Destination Charge $695 $ 695
Total* $36,070 $39,315

Sale Amount $37,114
Acquisition Fee $ 625
Deposit/Trade $ 0
Net Cap Cost $37,739
Term 48
Miles Per Year 15,000
Residual Factor 0.61
Residual Value $23,558
Money Factor 0.00290

Thanks,
Jim

oxford9

Is BMW going to have any special offers for Winter on the 325i?

I'd say the current 77% lease residual for 24mo/10k is pretty special...

I thought the residual was 74% for these parameters.

jk7

Hi,
I am hoping to lease a 325 and am trying to figure out the details. The questions I had are, Is the acquisition fee added to the selling price and then is the depreciation calculated off this total figure? Is the security deposit separate from these? for this month are the MF and residuals 62% and .0025 for 36/15k for the 325i.

Thanks

kyfdx

.00195 is the money factor for the 330i... The base money factor for the 325i is .0025... As you can see, your dealer is marking it up the maximum to .0029...

At that residual, the term has to be 36 months, not 48.

I've read that the residual ia 62% for 36mo/45K in December for the 325i...

You don't mention the payment quoted?

regards,
kyfdx
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kyfdx

74% is the residual for 24mo/30K lease..

77% is the residual for 24mo/20K lease..

regards,
kyfdx
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jpcoleman

I went back and asked them about the the Money Factor and they told me it was .00290 from BMW FS. I then checked around some other dealerships and found out it is actually .00250. When I went back to the original dealer with that they caved and agreed to .00250. I then got a call from one the other dealers I had spoken to. Although I wasn't shopping for a better price they ended up offering me $395 over invoice for the exact same car. That is a $864 savings over what I was going to pay.

brian30

Where did you get $395 over invoice? Was this on a 325i or 330i? So far I am not having much luck with dealerships here in TX.

daley

I want to lease the 330i for 24 months and 10k miles in San Francisco. Below are the costs that I have gathered from the message board. Please let me know if my understanding of these items is correct:

Destination $695 (this is part of the invoice price, so you have to pay it)?
Acquisition fee $625 (you have to pay)?
MACO- around 1% of invoice (you have to pay)?
Training- $180 (you have to pay)?
Dealer mark-up $500 to $700 (would be a good deal)?
Residual 77%
Money factor 0.00195

Thank you for your responses.

jk7

Hi kyfdx,

Can you pls look at the following numbers I got for a 325 lease?

2006 BMW 325i Sedan
Titanium Silver Metallic
Black Leather
Aluminum Interior Trim
Automatic Transmission w/Steptronic
Premium Package
Xenon Headlights
Navigation System
Satellite Radio Preparation
MSRP: $39,120
Your Price: $36,895

36 month lease
15k miles/year
$1,543.83 driveoff
$513.18 plus tax($555.52 including tax)
$24,254.40 residual
.00265 money factor (security depoist waived) and also

24 month lease
15k miles/year
$1,535.60 driveoff
$505.58 plus tax($547.29 including tax)
$28,948.80 residual
.00265 money factor (security depoist waived)

Can I get the MF down some more without a security deposit?
Thanks in advance
Jay

patemd

Hi guys, hoping you can help me out, I am new to the forum.

I got preliminary lease offer for 2006 BMW 330xi, automatic, navigation, premium, cold, sports, 18 inch wheels, and comfort access.

They offered 0 down, 656/ month. 15k/yr for 36 months. I assume they will charge appropriate acquisition fee,bank fee, tax, and reg. Wondering if someone can comment on whether this is good deal or can I get better.

thanks

kyfdx

That looks like a very good deal... $2200 off MSRP, and the base rate....

.0025 is the base rate with security deposit... .00265 is the lowest you can go without one...

regards,
kyfdx
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kyfdx

It's hard to evaluate a lease deal without the full MSRP...

regards,
kyfdx
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patemd

Sorry for the lack of details. I was offered a buy price of 44.5K or lease of 656. They did not provide me with full msrp, but in checking the bmwusa website, it would be 47, 995. I think I may be getting duped as the buy price seems lower than invoice. What do you think?

jk7

Hi kyfdx,

Thanks for your input, I finally settled on this lease.

325i Silver, black leatherette, aluminum trim
Xenon headlights, Navigations system, satt radio prep
36mo/15k
MSRP 36220
Selling price 34432
Residual 62%
MF 0.025 (decided to put 550 sec deposit down)
Monthly: 514.06 including tax(8.25)

Drive off: 685 aquisition, 287 licence fee, first payment and security deposit.

The dealer showed me his book with all the MF's and Residuals from BMW.

Thanks for your help.

ssh2

Hi jk7,

It is a good deal and it looks very similiar to
what I wanna get. Could you please tell me
where did you get this one? I am in CA bay area.
BTW, did you pay the MACO fee?

Thanks a lot,
ssh2

jk7

Hi ssh2,

I live in the southern part of the state. The above car wasn't available, decided to get the same specs, silver, leatherette with navigation except no xenon lights, the payments are about 502 incl tax.Invoice 32735, selling 33635 with 62% and 0.0025. Got the acquisition fee down to 625.

I paid the MACO, the dealership was not willing to take it down. I figure these amounts dont amount to too much over a 3 year lease and let it go.

Really excited about my first BMW, should get it tomorrow

bberke

To clarify, does anyone know for certain the best money factor a person can get on a 325i 24 month lease 10000 miles.

That would include multiple security deposits.

kyfdx

The base money factor with security deposit is .0025..

If you make 5 additional security deposits, the money factor would be .00225

regards,
kyfdx
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bberke

thank you!

sreev

Hi Chris,

Sorry for the delayed response. I haven't checked this forum lately (I need to find out if there is a way to get email when there is a message). What Costco does is it sends requests for quote to local dealers. Then the dealers email or call you with quotes which they claim are fixed price and don't need negotiation. In my case, the lease offers came in significantly lower than what I had already agreed to pay my dealer. I then told him about the new quotes through Costco which he matched.

In summary, it doesn't hurt to go through Costco. It's free and the dealers were very responsive.

Regards,
SreeV

edeibert

Hi-
I just got a quote for a 3.25 xi wagon lease. I have read through the other postings and have a couple of questions. What's MACO? Is this added costs that the dealer may be adding into the lease calculation. If I take the MSRP of $44,715, the purchase price I've negotiated of $1,500 over invoice ($42,745), the money factor of .0024 and the 62% residual and plug it into a lease calculator I found online, the payments are about $30 lower than what I was quoted. I think the dealer added $1,000 of costs into my lease payment and I'm trying to figure out where that came from. Is the MF negotiable? I'm worried because I'm negotiating on the purchase price for the car now, but need to order it so I can't lock in a payment. Any advice?

Thanks,
Ed

kyfdx

A couple of things..

1) The base money factor on the 325XiT is .0020... so, your dealer is marking up the money factor the maximum allowed..

2) All BMWFS leases have an acquisition fee.. The base fee is $625, and dealers are allowed to mark-up the fee to $825. If you aren't paying that upfront, that is likely the amount of your discrepancy. Ask your dealer what the CAP cost is on the lease... That will bring to light any variance from the selling price.

regards,
kyfdx
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edeibert

Thanks! Really appreciate the info.

lamusic

Hi Kyfdx and Car_Man,

I scratched my other deal b/c I wanted leather interior and was offerred the following deal on a 2006 325i:
MSRP:$34, 870
Selling price: $32,670

Black graphite metallic
Steptronic automatic
Beige leather interior
Satellite radio prep

I think this is a good deal, except that the dealer had thrown in $280 for ad fees and I can't substantiate that.

What do you think?

On a 2 yr/12k lease - what payments (pre tax) am I looking at?

Thanks! Happy Holidays!

lamusic

To follow up on my above question, I was quoted 76% residual and a MF of .0025 for an after tax payment of $438.

The dealer said I cannot make additional security deposits to bring the MF down to .00225, but I know others who have done this. Is his comment legit?

Also, I would owe the following on signing
tax 71.71
License 282
doc 45
bf 825 (getting this to 625)
first payment 438 (whi is tax included twice!)
sec deposit 450

Does this all seem reasonable?

Thanks!

mariner1

Hi Guys,

I am a novice in this field and desperately need your advice. I plan to lease a 2006 325 Ci Convertible. As per edmunds, the invoice price is $36215

I have been to a couple of dealers and this is what they are offering:

MSRP: $39,600
Dest Fees: $675
Auto Transmission: $1250
Total Cost: $41525
Inception Costs: $1540 which includes tax on the deposit, title, tag, first payment, dealer fees.

For a 27 month lease/ 10k miles per year and if I put $2k down, they are quoting $590 per month incl tax. Is that fair? Im not sure what the MF is, but I believe they said that the residual value is $29,900 at the end of 27 months.

Many Thanks and look forward to your comments.

kyfdx

With that MSRP and selling price the 24mo/24K lease payment should be about $405/mo.+tax..

Due at signing would be 1st payment, security deposit, $625 acquisition fee, and any title/license fees required by your state..

I'd tell the dealer that you did not agree to pay his ad fees... But, your selling price is pretty low, so he may not be willing to take this off.

regards,
kyfdx
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kyfdx

Ooops.... just saw the next post...

The tax due upfront is on the acquisition and doc fee.. I don't think they are charging you any taxes twice..

regards,
kyfdx
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kyfdx

I haven't seen 27 month numbers, but that looks like the residual for a 24 month lease..

It is possible that they are running special residuals for 27 months, to offset the higher money factor on the convertible leases this month...

You have a lot of numbers floating around here.. $2000 down, plus $1540 inception costs?

$590/mo. seems like a lot with $3540 upfront... But, without knowing the selling price of the car, and the money factor that the dealer is using, it is hard to evaluate the deal... If the residual figure is accurate, then the residual is 72%.

In comparison, I leased a new '05 330Cic last month.. MSRP of $49,345... 36mo/45K lease.. $529/mo. including tax, with $1194 due at signing...

So.. your payment seems high.. If you are leasing, there is not much advantage to having an '06 over an '05...

regards,
kyfdx
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mariner1

Thanks for your prompt reply.

I did some more digging and here's what they replied -

MSRP: $42,770
Lease Period: 39 months/ 32,500 miles (10k miles per year)
Down Payment: $4000
Inception Fee: $1075 (includes first payment, dealer fee, tag, tax)
Lease Payment: $507 incl tax

Another dealer is offering $664 incl tax with $1500 due at signing for a MSRP of $41,525 for 27m/ 10k miles per year.

Seems very high but I dont know why and how to ask them to come down. Is it just a bad time of the year to lease a convertible??

What do you think will be a good offer please?

Many Thanks

mariner1

Hi, just to follow up on my last, the dealer who is offering $664 incl tax with $1500 due at signing for a MSRP of $41,525 for 27m/ 10k miles per year, is using a MF of 0.003 and says the residual value will be $29,900 at the end of 27 months.

On another note, I am getting the same car 325 CiC, but 2004 model with 10k miles for $32k. Doesnt that make more sense as compared to a lease?

I would sincerely appreciate your comments.

Thanks a lot

lamusic

KYDDX,

Thank you! You have been so helpful in this entire process!!

One last question: If I agree to absorb some of the dealers ad fees (this puts my price 400 over invoice per Edmund's + ad fees, which I already naievly agreed to) can I demand that the dealer increase the MSRP per Edmunds by the same amount??? That will bring my lease payments down to exactly where I need them to be.

Thanks again, and Happy Holidays!

kyfdx

The MSRP is set by BMW, and the residual is set by BMWFS.. The dealer can't do anything to change those numbers...

kyfdx

Compared to the lease deals you are being offered (and neither is very good), buying the '04 for $32K would be a much better deal..

The lease deals on the '06 models are definitely nothing to get excited about.. While the residuals are decent, the money factor is high (.0026), and your dealer is padding it for extra profit..

The lease deals on the leftover '05 convertibles were very good last month, but I get the feeling those lease deals are gone, and all of the incentives are on the buy side this month, if you could find a leftover..

regards,
kyfdx
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splash001

Hi, I'm new the leasing and I have a question:
How to use the money facter to calculate the monthly payment?
Say if we got a selling price of $36,000, selling tax 7.5%, 36 month lease w/12k miles, Money factor of 0.0025. How do I use this money factor to calculate the monthly payment so that I can compare the number the dealer tell me?

Thanks

kyfdx

You might want to start here:

"How to Calculate Monthly Lease Payments"

regards,
kyfdx
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mariner1

Thanks KYFDX!! MERRY X'MAS!
You guys are incredible! Your advice is always clear and concise. Thanks once again. God Bless!

splash001

Thanks kyfdx. Here's an other guestion. If I have a good credit score (over 800), would that be the advantage to ask for a lower money factor and $0 deposit? or the dealer dosn't care?

kyfdx

BMWFS is pass/fail on their leases.. If you qualify, you qualify for their lowest rate..

Dealers are allowed to mark-up the money factor by .0004, and many of them do... That is one more thing that you have to negotiate.. You should always insist on the "base rate" or "buy rate"..

Dealers like marking up the money factor, because the extra profit is "hidden", but it is a bad deal for the buyer.. The dealer could achieve the same profit by raising the selling price, and the buyer's monthly payment would be lower...

The money factors quoted here, are assuming a security deposit... it is almost always cheaper to make the security deposit and get the lower rate.. The only time the security deposit is waived without a corresponding increase in the money factor, is if you are a returning BMWFS lessee...

regards,
kyfdx
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nc_driver1

Hello car_man and kyfdx:
I've had the pleasure of working with car_man on leasing a Lexus a month ago. Excellent insight, and I got an excellent deal. I want to thank him again for his valuable opinion.
It seems that this particular forum has two advisers, which could only profit consumers. I want to thank you both in advance for all the help you can provide.
I am now interested in leasing a 2006 325i, automatic, for either a 36mo/15k miles or 24mo/15k miles. If you could, please let me know the numbers for the two terms: best money factor, residual value, deposit, price. As for the latter, considering the Consumer Reports pricing report, I am willing to pay 30K, is that reasonable?
Please also consider that I want to trade in my car. It is a Land Rover 2002 Westminster Edition with nav system, 49.2K miles, excellent condition. It's paid off, and according to KBB the trade-in value is $19K. Should I expect to get a lower price for the trade-in? and how do you advise to apply the trade-in value to the lease?
I look forward for your opinion on this matter.
Thank you very much.

chitown9

Hello,

I live in Chicago and went to a dealer today to inquire about a 36 month lease deal. Was offered the following:

MSRP 42,720
Selling Price 41,430
Residual value: 64%
Appearance package: 189.00
Documentary fee: $55.39
Balloon $27,340.80
Principal: $16,146.84
Sales Tax: 9%-$3,765.70
Interest rate: 7.75%
Cash Down: 1,000.00
Amount to finance: $44,583.09
Lease: 714.90
10K / year

I think my selling price is relatively ok. The interest rate of 7.75% (.33 money factor) seems very high.

Also, this is a balloon lease offer, which is supposedly a better deal for me, since i avoid paying chicago city tax on lease, which is roughly 45/month. The regular lease offer was around 750 I think.

I would appreciate if car_man, kyfdx and others would provide some advice on this deal, as I am new to this. I think the interest is way too high, but am not sure if I may be missing other things.

Thank you in advance.

joeyg

kyfdx -- thanks for the great service. I'm looking to lease a 330i. MSRP is $44440 and purchase price is 41884. I'm looking for a 24 month lease at 15k miles and I live in NJ. I was told the residual is 69% and the mf is .00195 and based on previous posts that sounds correct. I've been quoted a payment of approx $647 per month with no money down except for first month, acq fee of $625 and $130 of doc fees. Does this sound correct? I've run some numbers and get to a payment of $630 per month. Am I missing something?

Thanks for the help.

CarMan@Edmunds

You're very welcome, nc_driver1. I'm glad to hear that everything worked out so well with your Lexus lease. Let's take a look at the lease program for the latest object of your desire. According to the latest information that I have seen, if you were to lease a 2006 BMW 325i through BMW Financial Services for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be or .00250 and 62%, respectively. The better deal right now is to lease this car for 24 months. Its 2 year residual value is extremely high. If you were to lease an '06 325i for 24 months with 15k miles per year, its buy rate money factor and resid should be .00250 and 74%.

I am not personally all that familiar with what this car is selling for right now, but you should be able to find out by visiting the following discussion: "BMW 3-Series: Prices Paid & Buying Experience".

If you really want to trade in your current vehicle, make sure to have the dealer that you are working with cut you a check for any equity that you have rather than using it as a down payment for your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 325 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

Car_man
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CarMan@Edmunds

Hi chitown9. I am not surprised that the dealer that you are working with is steering you towards a balloon note instead of a lease. I've heard that Chicago's sales tax on leases is unbelievably high. Unfortunately, because of their lack of popularity I do not personally keep tabs on the details of banks' balloon note programs. You're right that the 7.75% rate that you were quoted does sound a little high. You may want to consider comparison shopping with a few dealers in your area to see what sort of interest rate and selling price they quote you for similar cars.

Car_man
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kyfdx

Using your numbers, I get $609/mo... and, if I bump the MF to .0021 (to account for no security deposit), I get $620/mo..

So.. I'd assume taxes is the difference... What is your tax rate, and where do you live?

And.. more food for thought.. On the 330i, the better deal is the 36 month lease... $534/mo. or $544/mo. using the same numbers... The residual is 62%, so you are only paying 7% of MSRP for 12 more months of driving.. $75/mo. cheaper to do the 36 month lease..

regards,
kyfdx
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buynewbimmer

First, thanks for all the insights so far. You have all been enormously helpful already.

I’m ready to pull the trigger on a 330i Sedan, for a 3-year/12k lease, configured as below. I haven’t discussed the lease particulars that are subject to mark-up (money factor, acquisition fee, etc.) with the dealer but wanted to be sure of what I think the numbers are before I do so. First, here is the car I’ve put together (I have to order):

330i 4dr Sedan
Manual Transmission
Sparkling Graphite
Black Leatherette
Aluminum Trim
Base Invoice Price: 33,485.00
Metallic Paint: 430.00
Sport Package (ZSP): 1,455.00
iDrive/Navi: 1,820.00
Fold-down Seats: 430.00
Sirius Sat. Radio: 540.00
Comfort Access: 455.00

Destination: 695.00

Dealer Profit: 300.00

Price before T&L: 39,610.00

I understand the residual is 64% for the 12k mile/year lease, with a base money factor of .00195. According to my calculations:

MSRP 42,940
Sell Price 39,610
Residual .64
.64 x MSRP of 42,940 = 27,481.60 Residual $$
Depreciation (Sell Price less 27,481.60) = 12,128.40
Monthly depreciation (12,128.40/36) = 336.90
Finance/month (Sell Price + Residual x MF of .00195) = 130.83
Monthly Depreciation + Finance Charge (336.90 + 130.83) = 467.73
So monthly payment before tax is $467.73

First, are my assumptions and calculations right?

Then, how is tax calculated (I’m in California, where it’s 7.75%)?

And does the acquisition fee, tax, title and license get rolled all into the capital cost (which changes these numbers a bit)?

Thanks very much for your help.

And by the way, I haven’t signed a deal yet, so what now appears to be a spectacular $300 over invoice deal is subject to last minute “finessing.” It’s not that I expect any problems, but it always seems to happen where they say, “Oh no, that doesn’t include the ________; that’s $750 more, etc.” And, this deal seems almost too good to be true; it hardly seems worth their trouble for only $300 . . . . But I’ll post that part of this on the Prices Paid forum when I see if it works out . . . .

Jim

joeyg

Thanks for this. I live in NJ so i have to pay 6% sales tax on the diff betw the sales price and the residual value. I checked back with the dealer and they told me that I was paying a .00195 mf. They said that bec I was a returning BMWFS customer they did not bump up the mf.

You're right about the 36 month option but I like the flexibility of the 24 month term.

Thanks again for the help.