BMW 3-Series Lease Questions

CarMan@Edmunds

I'd be happy to, nypayman. BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 328i Sedan with 10,000 miles per year are .00190 and 63%, respectively for consumers who qualify for its top credit tiers.

The numbers for an otherwise identical lease of a 2010 128i Convertible are .00210 and 68%.

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CarMan@Edmunds

Bkingatl, BMW's lease program is different for 2011 and 2010 models.

BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2010 335i Sedan with 12,000 miles per year are .00145 and 54%, respectively for consumers who qualify for its top credit tiers.

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thavorn

Car_man,
BMW offers 1.9% up to 60 months for 2011 BMW 328i Coupe. It also applies to bmwselect. Is it better to lease then buy at the end of the lease? or is it better to go with bmwselect. What are the advantages of the two because I plan to keep the car. Thanks

vinayg1

Hi,

Could you please tell me the money factor and residual on 2010 and 2011 328i sedan for a 36 month 10K lease?

Over the years, are the lease rates better in July or August. Or is there no correlation?

TIA.

wantadvice

I need your advice. I am coming to the end of my lease on a 2007 328xi and looking to lease the same car again with a couple of added features. I received a notice that will allow me out of my current lease 3 months early.
When I went to the dealer this is what they offered me.
2011 328xi sedan, alpine white with saddle brown leather
PREMIUM PKG.
VALUE PKG
STEPTRONIC TRANS
NAVIGATION SYSTEM
DESTINATION CHARGE

TOTAL PRICE 42,150.00

I was given .00170 as money factor
62% residual
12,000 miles per year

I was told there was no credit for the steptronic transmission or any other credit that I apply
Using this web site, the invoice of this car is 38,840.00

What should I offer to pay for the car and how much money should I put down(if any)
Thank you for your help.

I only have till 8/2/10 to get out of my lease early.

kitmax

Host:
1.
Can you please provide July money factor and residual for
a. 2011 335xi
b. 2011 M3
24 month lease / 10K mi / best credit tier / 0 money down / taxes @ 8% and registration fees upfront
2.
My current BMW lease expires before the end of this month
a. is there a loyalty discount available if I lease again
b. If I don't buyout the existing lease, is it possible for the dealer to do so and use existing car as a trade in towards my new lease (which would not likely reduce my price, but would result in lower sales taxes)?
If this is possible, do I avoid excess mileage charges and disposition fee? (Sounds too good to be true?)
c. other than $1850 for 335x, are there any other incentives for either model?
3.
On both models, is $500 a realistic dealer profit to shoot for?
(Is profit considered the purchase price over invoice less buyer incentives?)
Thank you.
(I did post a question regarding another manufacturer a couple of days ago ... just trying to make a decision between the two asap... thanks again.)

van131

Hey I just found this site and have spend the last two hours reading it through. I'm interested in leasing a 328i conv. I shopped around and I have a dealer currently offering me: msrp: 47,250, 36month, 12k, $3500 total including tax downpay blah blah, total in lease payments $22,575, for $645. This is just a base model with just auto trans nothing else... what do u think?

jasatucla

I just leased a 2011 328i xDrive sedan (Prem Pck, Value Pck, Nav, and Heated Steering). During the purchasing process the formula provided a 62% residual and .00170 Money Factor. Dealer was going to charge me a Bank Fee of $925 which I later had him drop to $725 (BMW max). My approach was to pay closing costs (reg, taxes, security deposit, etc), but refused to put down a down payment ($0 towards cap cost reduction). My initial "best and final" came out to $479.99/ month. I was about to sign last Friday, but I was unable to complete the sale b/c of scheduling... To my surprise BMW release new Residual guidance over the weekend, increasing the Residual on 328xis from 62% to 63%!! I called the dealer on it and they decreased my monthly to $468.50. I learned many things from my experience:

1) Tire Insurance- You can get it for under $700 even though its quoted at $1,000 for 3 years. Push push push.
2) Money Factor as of July 2010 on 328xi is 0.00170 or 1.7
3) 328xi residual is now 63%
4) Bank Fee should not be more than $725 (BMW calls it an "Acquisition Fee")
5) Doc Fee should be no more than $75 (maybe less in some states)
6) Call the DMW and 2x check how much reg, plate fees, and licensing fees are before you sign. Make sure the dealer is not over charging.

Lastly, in our free market you should always send your RFP to multiple dealers and allow them to earn your business. The consumer is the boss in this economy!

Happy Hunting!

wantadvice

Hi
Sounds like a GREAT deal! I am looking for the same car but can't seem to get the same figures. I was quoted $399.00 for document fee and 825.00 for the acquisition fee.
Same money factor and residual.What state do you live in?

van131

I asked for a lease worksheet and my dealer said they dont give those out? but heres what he said so far:
36mon
12k
3500 down including tax and stuff
645 a month
64%
.00235
what do u think?

jasatucla

I live in NY. NJ had very high Doc Fees... I called the DMV and they have a cap on the amt dealers can charge for the Doc Fee. I would pound the dealer until they give you a $725 Acquisition Fee!

jasatucla

A few things... What model are you going with?

If a 328xi...Money down at $3,500 seems right. $645/month is WAY WAY too high! The Money Factor should be 0.00170. I'd go after a few other dealers before going with them.

van131

well the $3500 is including taxes and security and first month. is .00170 the norm?.
Im trying to get either a 328i convor or a 528i and not pay more then $600 on a lease.

wantadvice

I live in CT and the dealer I am working feels $399.00 for the document fee is fair and what everyone is charging. Is there a web site I can search to find out what the document fees are? I think I can get the $725.00 acquisition fee. Thank you

van131

just google it

camaine

Hi there

Can anyone tell me the current money factor on a 2011 328i coupe? I've already ordered one from the factory which is scheduled for delivery in September. I was quoted .00235 at the time I ordered the car in June and told that if the money factor changed in my favor, I would be given the lower money factor. I hope/assume this is true. Thanks for your response.

wantadvice

Hi again
I went to my usual dealer in CT with your deal in hand. They couldn't figure out how you arrived at the figure of $468.50. Does that include the sales tax?

My dealer is still charging me $825.00 acquisition fee. The document fee(which he will not budge at all ) is $399.00. In addition, I was told the BMW is now adding a training fee of $200.00 per invoice. So here are the prices I was given for a 2011 328xi with premium package, navigation, automatic, value package.
base 32540.00 includes training fee
optional equipment 5625.00
destination charge 875.00
INVOICE 39040.00

Has anyone heard of this training fee?
Still in the negotiation stage of agreeing on the gross cap cost. Does anyone know what the dealer actually pays on this car? Thank you

dvon

I was reading on a couple sites that residuals just got better since the numbers first came out for July. Can you confirm what the current residual and MF are for a 335xi sedan? 36 month 12K miles.

Thanks

g35_mania

Considering buying out a friend from a lease.

Actual Monthly Payment $499.00 (5k miles)
Remaining Miles 39988
Miles Per Month 1,250
Months Remaining 32
Total Mileage Allowance 45,000

Car has:

Vehicle Features
ABS (Anti-Lock Braking System)Adjustable PedalsAir Bags (side impact)Air Bags(Front)Air ConditioningAlarm/Security SystemAlloy WheelsBluetoothCompact Disc (Multiple)Cruise ControlHeated Seats (Front)iPod ConnectivityKeyless Entry SystemLeatherMemory SeatsNavigation SystemPower Driver's SeatPower LocksPower Passenger's SeatPower SteeringPower WindowsPremium or Custom WheelsPremium SoundSatellite RadioSide Air BagsSport PackageSun or Moon RoofTilt WheelTinted WindowsXenon Headlights

Cheers,
Ed

rravin

Hi car man, can you please tell me BMW financial current lease info (July 2010) for the 2010 M3 coupe. I am currently leasing through BMW and should qualify for teir 1 financing. Looking for 36mo, either 10k or 12k miles/yr. With the exception of destination fee do you know what other taxes and fees are reasonable? I live in Los Angeles Ca.

van131

I got 3 quotes:

328i Convertible Sports package MSRP:54,300 Sale Price 51,000
65%Residual .00192. $605 a month.
http://www.erhardbmwoffarmingtonhills.com/VehicleDetails/764863603

328i Can order: Convertible tin can with wheels auto MSRP: 47,250 Sale price: 45,443
.00194 65% $554

328i Convertible 50350 47750
.00194 $575
http://www.erhardbmwoffarmingtonhills.com/VehicleDetails/759049573

What do you all think??? Should I do it?

CarMan@Edmunds

Hi thavorn. If I was 100% positive that I was going to keep my vehicle for a long time, I probably would finance it at 1.9% for 5 years rather than leasing or going with a balloon note and buying it ad the end of my term.

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CarMan@Edmunds

Hi vinayg1. Here's the information that you're looking for.

BMW Financial Services' July 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 .00190 and 54%, respectively for consumers who qualify for its top credit tiers.

The numbers for an otherwise identical lease of a 2011 model are .00190 and 64%.

If you opt to go with the 2010 model, make sure to take advantage of the $2,000 dealer cash that is currently available on it.

BMW's current programs are scheduled to run through the end of August. It is possible that it will make an unscheduled revision to them next month, but more likely than not the Aug. programs will be the same as the Jul programs.

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CarMan@Edmunds

Here you go, kitmax.

BMW Financial Services' July buy rate lease money factor and residual value for a 24 month lease of a 2011 BMW 335xi Sedan with 10,000 miles per year are .00200 and 67%, respectively for consumers who qualify for its top credit tiers.

The numbers for an otherwise identical lease of a 2011 M3 Sedan are .00180 and 61%.

I do not believe that BMW is currently offering any loyalty incentives on either of these cars.

Theoretically it would be possible to use the fact that your current car's purchase option price is significantly less than its real-world value to your advantage if that is indeed the case. However, more likely than not your car's purchase option price isn't.

BMW is not currently providing any cash incentives on either of these cars.

$500 over dealer invoice would be an excellent selling price for either of these cars. You may find that it takes more than that to get a deal done, depending upon the level of competition that there is in your area.

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CarMan@Edmunds

Welcome van131. If you are new to leasing, you definitely should check out the following informative articles on the subject that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

In short, the easiest way to get a good deal on a leased vehicle is to shop around for the lowest possible selling price and then have the dealer that you decide to go with calculate your vehicle's monthly payment using its buy rate lease money factor.

You never mentioned what this car's selling price is, so it is difficult for us to analyze how attractive this deal is. Let us know and I'm sure that either myself or another knowledgeable community member will let you know what they think.

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CarMan@Edmunds

Hi camaine. BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 328i Coupe with 15,000 miles per year are .00185 and 63%, respectively for consumers who qualify for its top credit tiers. Make sure that the dealer uses this new, lower money factor to calculate your car's payment.

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CarMan@Edmunds

What you heard is correct, dvon. BMW FS improved its residual values for the 2010 3 and 5 Series by 1% in July.

Its July buy rate lease money factor and residual value for a 36 month lease of a 2010 335xi Sedan with 12,000 miles per year are .00150 and 54%, respectively for consumers who qualify for its top credit tiers.

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CarMan@Edmunds

Excellent taste in cars, rravin :shades: . Here's the information that you're looking for.

BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2010 M3 Coupe with 12,000 miles per year are .00140 and 47%, respectively for consumers who qualify for its top credit tiers.

The residual value for a lease with only 10,000 miles per year is 1% higher.

As far as fees go, BMW FS charges a $725 acquisition fee and a security deposit equivalent to your vehicle's monthly payment rounded up to the nearest $50 on every vehicle that it leases.

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camaine

Thanks for the information Car man. You quoted .00185 as the money factor for 15,000 miles per year. Would the money factor be more or less at 10,000 miles per year? Also, do you expect this money factor to go up or down before September. Finally, my dealer is telling me the money factor is higher than what you've quoted here. I'd like to be able to say that I have it on good authority that his money factor is too high based upon............and that's where I'm stuck. What should I say?

zollie

Car man,

What's the July MF and Residual for 2011 328xi Wagon (36 month / 12k)?

Thanks!

burunduk

Hi,

What's the money rate and residual for July/August for 2011 335i sedan 36 month, 12K a year lease. As well as identical, but 24 month lease.

Thanks a lot.

thavorn

Thank you.

rravin

Thanks car man, Wow the residual of 47% seems very low. Is the body style changing in 2011?

satch98

Dear Car Man,
My current BMW lease will be ending so in early July I placed an order for a 2011 328 Coupe (leasing again). I was wondering if BMWFS is currently running any BMW owner loyalty programs for which I would qualify for?? I've searched everywhere on the internet but I could not find anything and the dealer did not mention anything either. The residual is 60% and the MF offered to me is .00185 (15k mile lease). Is this the best they're currently doing for returning customers? Are they offering any owner loyalty lease cash? Or a maybe a MF rate lower than .00185? Also, I'll be ending my lease early and was wondering if they're offering their 'pull ahead" program. I just feel like the dealer did not disclose everything so I was hoping that maybe you can shed some light into this.

Thank you for your help!

trusaleen1

Carman, im set to pick up my car on Sept 13 through Euro Delivery Do you have any new lease numbers for residuals and MF for august. Im leasing a 335iS coupe 36 months 15,000 per year

Also as stated by satch98 above my lease on my 2008 335i coupe expires in Oct. Are there any loyalty discounts

Thanks

nypayman

Carman,

iI'm all set to pick up a 2011 328i, but i'm reluctant until i see the August MF, resid & if there are any cash incentives....when do they issue that info?

Thanks,
NYPAYMAN

jalal28

Carman et al...

Here is the deal I was able to negotiate when I ordered the car in late June. Scheduled for delivery mid-late August (NJ Dealer):

335i Coupe
Premium / Convenience / M-Sport / Navi / HK / 19"s / Heated Seats / iPod / Smartphone

MSRP - $56,250
Selling - $52,040
36 Months / 12K miles
Residual - 61%
Money Factor - .00195

Payment - $710.61 includes tax
Acq - $725
Reg - $310
Doc - $197
NJ Sup - $208
MACO - $300
Training - $200
Tire - $6

Total due at signing - $2,656 (includes firsts months)

How does this compare with the Northern NJ universe? Good deal? Any changes between the July and August residuals/MFs?

delta737h

jalal28,

The money factor looks about right. But the one thing that makes or breaks a lease deal is selling price. I can't vouch for the 52,040 sell price. But, to get an idea, you might want to try going to overstock at zag.com and TrueCar.com to check for the lowest competitive selling prices in your area.

Looks as though you didn't make any cap cost reductions... that's good! And, while you didn't say, I figured your NJ sales tax at 7% as it looks as though you capitalized the NJ sales tax which probably amounted to about 1,674. So now we've assessed all the costs.

My best guess is that you received a pretty square deal.

John

dvon

Do you have the August numbers for 2011 335xi? 36 months 12K

christopher99

Placed order for 2011 M3 Sedan, negotiations ongoing, any comments on the following leasing terms given to me by the dealership are welcomed:

MSRP $70,800
Sell Price $67,800 with probably another $1000off (Ultimate Drive Event Certificate)
36 months at 10Kmiles/year
Money Factor 195
Residual Factor 55%
Bank Fee $825.00

Thank you in advance for your opinion and whether further negotiations with the dealer would be of value.

vinayg1

Hi,

I was looking at the BMW site at the lease offers. For 2011 328xi with MSRP of 40,050, it has a offer of 459 per month with 0 down.

What selling price do they assume while calculating this? If I take a selling price of 40,050 and add 725 Bank fee to it (as per their fine print) and using 64% residual, I need to have a money factor of .00058 to come to the 459 monthly payment.

Is it the money factor being offered or am I missing something.

delta737h

It might be a good idea if you posted a link to the Ad as a courtesy to others. Otherwise, you're not likely to get much response.

vinayg1

http://www.bmwusa.com/standard/content/financialservices/LeaseOfferDetail.aspx?e- nc=eK+NxbEIZNVdHuFAur+lbw==

delta737h

vinayg1,

There is nothing implied or suggested, in the fine print, that $725.00 is added to the $40,050.00 MSRP to produce a gross cap of $40,775. This would indicate that the selling price equates to the 40,050 MSRP. BMW would be very foolish to try to sell this vehicle at MSRP. And so, your 0.00058 money factor was erroneously calculated. The residual is $25,632 and the residual factor is 64% (25,632/40,050). The money factor formula is...

P = F x (C + R) + (C - R)/N

where...

P = 459.00
F = money factor = 0.00190 per Car_man
C = Adjusted Cap Cost = 37,816.15 calculated from the Ad assuming the 0.00190 money factor
R = Residual Value = 25,632
N = Term = 36

Because the adj cap is 37,816.15 and, there is no cap reduction, the gross cap amounts to 37,816.15 as well. And, because the 725 acq fee is financed in the lease, the sell price is 37,091.15 (37,816.15 - 725).

The two most imporant items in any lease transaction are the money factor and selling price because they drive the payment. The selling price is negotiable and you should be sure, if you qualify, that you're getting the money factor "buy" rate which gives the dealer 0 financing profit. I suggest you examine Edmund's invoice pricing as well as incentives, if any, for this vehicle. Also, check overstock at zag.com for low competitive pricing in your area. Then, decide on a selling price and compute your monthly payment and taxes. You'll also need to assess dealer doc fees and DMV fees as well.

Hope this helps. Questions? Please let me know.

John

vinayg1

Thanks.

The Invoice as per edmunds is 36,930. So BMW expects the dealer to sell it at about $160 over invoice. Otherwise, how would they come up with $459 monthly payment using the money factor? I am not sure many dealers are going to do that when according to edmunds, "What others are paying" is $38,142.

I was quoted a money factor of .00125 and 64% residual by the dealer, which may not be thru BMW Financial. That is why I am trying to reconcile the BMW ad's payment and money factor. Nowhere in the ad they say that this would be dependent on the negotiated price.

delta737h

"So BMW expects the dealer to sell it at about $160 over invoice."

BMW doesn't expect the dealer to sell at $160 over invoice. In fact, the Ad, in part, states...

"All figures presented are estimates only. Actual selling price may vary. Please see your BMW center for details."

In other words, it's just an example. However, the Ads are useful as much information can be gleaned from them (e.g., acq fee, residual,, residual factor, etc). The net ajusted cap, sell price, and payment mean very little but do provide some guidance.

"Nowhere in the ad they say that this would be dependent on the negotiated price."

Of course it doesn't say that. However, for purposes of providing an example and, in order to compute a payment, there must be an assumed selling price as well as a money factor. The Ad's selling price certainly isn't etched in stone. No lease promo Ad is going to say that the selling price is negotiable even though it is.

Also, I wouldn't give too much weight to the TMV. It's not etched in stone. Pricing is, to a large extent, predicated on supply/demand conditions in your area. The TMV is just an average. I only use Edmund's data to get an estimate or rough idea of pricing. Then, I research much more extensively.

John

kyfdx

Pretty sure there is $1305 manufacturer to dealer cash on this deal, at a minimum.... That's the invoice price for an automatic transmission...

So, as you see... already the dealer has over $1000 gross on the deal...

kyfdx

Also.. pretty sure the MF for the 2011 328Xi is .00125 for August..

nypayman

correct on that mf .00125 328xi.....0013 for the 328i.both 64% resid

is that 1305 incentive available on manual transmissions too?...
suppose to pick 1 up tomorrow and that was not part of our negotiation.....thanks

:mad:

delta737h

vinagy1,

If the 0.00125 money factor is correct per kyfdx, nypayman, and you and, it appears that it is, then the adjusted capcost is 39,236.90 and the Ad sell price is 38,511.90 (39,236.90 - 725.00). This seems to be in sync with Edmund's claim of a $1,550 dealer contribution (i.e., 40,050 - 1,550 = 38,500). However, this doesn't really mean anything because the contribution is referenced with respect to the MSRP.

John