BMW 3-Series Lease Questions

monkeybaronjr

Hey all,

I'm going to be in the market for a new car in a couple months and am trying to start my research early. I've become more interested in BMWs recently and was considering leasing. Does anyone have experience leasing a Certified Pre Owned BMW? What is the difference in money factors and residuals between a new and used BMW? Specifically, I'm looking at a 2009 or newer 335d with less than 20,000 miles (36 months, 12k-15k miles).

It seems to me that leasing a CPO from BMW it a great way to get the most bang for your buck, plus the additional 2 years / 50,000 miles on the warranty will save me for the duration of the lease. Am I wrong?

Thanks!

kyfdx

The manufacturer usually doesn't offer much support on CPO leases... That doesn't mean you won't run into a good deal occasionally.

In general, if you want to lease, it will be cheaper with a new car (plus, your maintenance is covered for the life of the lease.. CPO cars aren't covered for maintenance after 4yr/50K from the in-service date).

CarMan@Edmunds

No problem Ozzie33. BMW Financial Services' current buy rate lease money factor and residual value for a 30 month lease of a 2011 328i Coupe with 10,000 miles per year are .00120 and 63%, respectively for consumers who qualify for its top credit tiers.

This money factor drops to .00090 for loyal customers.

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CarMan@Edmunds

Hi glyras. It sounds like you are not a current BMW owner. In that case, BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 36 month lease of a 2011 335d with 15,000 miles per year are .00125 and 53%, respectively for consumers who qualify for its top credit tiers.

The residual values for a lease of this car with only 12,000 miles per year are 2% higher.

The 10k residuals are 3% higher.

BMW is currently providing a $3,500 cash incentive on this model. Make sure to take it into account when negotiating your vehicle's capitalized cost.

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CarMan@Edmunds

Hello jca551. BMW Financial Services' January buy rate lease money factor and residual value for a 36 month lease of a 2011 335is Coupe with 10,000 miles per year are .00165 and 61%, respectively for consumers who qualify for its top credit tiers.

This money factor drops to .00135 for loyal BMW customers.

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coby03

Car_Man,

I thought I read somewhere that BMW was offering a $1,870 credit for 335i's with x-drive. Is that for the sedan and coupe, or neither (maybe it was a promotion that's ended). Thanks.

Coby

mcb345

I don't see how a CPO "Ultimate Lease" couldn't be a great deal. Find a demo car or lightly used 1 year old BMW and lease it for 2 years instead of the usual 3 years. I'm just going off common sense and not actual facts but the residual value at the end of the 24 month lease on a 1 year old car SHOULD be the same as if you had leased a brand new car for 3 years, but instead of paying full price from the start you're getting the car at a discount. Unless the money factor was substantially higher for a CPO lease then you'd be saving thousands of dollars over the course of the lease.

I plan on leasing a CPO 3-series next year and already printed out all the current offerings for 2011 3-series models to bring in as a bargaining tool. The residual values are all shown in fine print for a 36 month lease so I will know EXACTLY what the value of the car should be after doing a 24 month lease on a 12 month old car. As long as the dealer actually accepts those residual values, or close to it, it's a sure thing that you'd save $50-$100/month on a lease. Does anyone have any thoughts on this? I'm really banking on the fact that this is feasible and that my ballpark estimates are close.

kyfdx

Rather than me tell you what I think (since I already did that..lol), try a preparatory call to a BMW dealer..

Ask for a salesperson, tell them you might be interested in leasing a used BMW, and see what they say. It can't hurt..

You say you are banking on that being feasible...no point in making plans, without knowing for sure.

Also....if you are going to lease a one year old car for just two years, don't look at CPO units... You'll be paying extra for a warranty that you don't need.

regards,
kyfdx

monkeybaronjr

Does anyone know if BMW allows you to move out of state with your leased vehicle? As I mentioned in a previous post, I'll be in the market for a new vehicle towards the end of the year, but know that I'll be moving out of state (active duty Army) in July of 2013, before a 36 month lease would end.

Will this be a huge problem? Am I required to bring the vehicle back to the same dealer I leased it from or can I turn it into any BMW dealership once the lease is finished.

Thanks, everyone.

leoxard

Done it in the past myself. Moved from east coast to west coast during a lease. All you have to do is notify BMWFS of the new address and your taxes, on the monthly payments are adjusted by BMWFS to the new location.

As far as turning in your Vehicle, not a problem, you can turn it in, like I did, at any dealer, it does not have to be the one where you leased it from originally.
The lease is not with the dealer, but with BMWFS.
Good luck with everything and thank you for your service!

kyfdx

If you move, you have to consider sales taxes.. If you move from a "monthly payment tax" state to a "tax upfront" state (or, vice versa), you may end up paying extra in sales tax.

regards,
kyfdx

jetfan

My current 328i lease is up in April. Called my local dealer and got this offer for a 2011 loaner car. My gut tells me the offer should be better. I only have one payment left on my current car for $500 and I am way under the miles. What do you think? 2011 BMW 335xi

Black Sapphire Metallic

Saddle Brown Dakota Leather

Dark Burl Wood Trim



Cold Weather Package

Premium Package

Automatic Transmission

Heated Steering Wheel

Navigation

Satellite Radio 1 yr free



Current Mileage 6,899





36 month lease 10,000 miles/yr



Monthly Payment $562.73



Inception Fees Include: 1st month payment $569.72, BMW Bank Fee $725.00, Dealer Document Fee $150.00, Online Reg Fee $7.70, Tire Tax $6.00



Total due at signing $1,451.43

sally8563

Hello,

I need some information on 2011 BMW 328i & 328xi Sedan lease.

What is the residual value for 15K for both cars?

Why do I have to deal the final sales price first?
For example, if the final sales price is $31,000 and the residual value is 54%, that means I will be paying 46% of the sales price?
Some dealers told me that residual value is based on the sticker MSRP - it doesn't make sense to me that if the residual value is based on the sticker MSPR and why do I need to negotiate the sales price first?

Thank you very much!

verinnal

Money factor seems high on this car. Would love to know if this is a reasonable deal. Purchasing this week.
Credit score: 800+ (loyalty customer currently in a bmwfs lease of an 08 335xi)
MSRP $57500
Final Negotiated Price $53500
Money Factor .00170
Invoice $53500
Lease term 27 months, 10k/yr Monthly payment $610
TOTAL COD 2919.47 (tax, title, dealer fee, first month)
RESIDUAL 72%
Black/Black/ManTran/Convenience/Nav/M Sport/Heated Seats/Harmon/iPod

joe531

Hi car_man and kyfdx,

Do you know, or can you predict if BMW will continue special leasing deals into May? I'm "sold" on a 328i convertible and like today's deals, but will be leaving the country soon and won't return until end of April. Also, does BMW fincl svcs monitor the loyal BMW part, or can the dealer throw that in as a sweetener (this would be my first BMW). Thanks for helping a forum newbie.

CarMan@Edmunds

Hi coby03. That program is still available. It's good on both the Coupe and Sedan.

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CarMan@Edmunds

Hello sally8563. BMW Financial Services' March buy rate lease money factor and residual value for a 36 month lease of a 2011 328i Sedan with 15,000 miles per year are .00190 and 61%, respectively for consumers who qualify for its top credit tier.

The numbers for an otherwise identical lease of a 2011 328xi Sedan are .00200 and 62%.

If you are a returning BMW customer these money factors will be .00030 lower.

Both the selling price and the MSRP are used to calculate lease payments. While it's true that vehicles' residual values are calculated using a percentage of their full MSRPs, the amount financed is based upon the selling price. You can see how the formula for calculating lease payments works by reading the following article: Calculate Your Own Lease Payment.

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CarMan@Edmunds

Hi joe531. It's difficult to say what BMW's May lease program will be like. Dealers and possibly even BMW itself probably don't know at this point. What the market and the supply of BMWs are like then will play a large role in determining what BMW will do with its incentives.

I doubt that a BMW dealer will be able to consider you a loyal customer if you aren't one.

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topcat915

Can anyone verify the following lease numbers?
2011 335 xi 10,000 miles per year 27 months

70% residual .0017 money factor

Deal signing tomorrow(Saturday) if right.

MSRP 48475.00 335xi sedan manual sport premium heat seats
Cost 44305.00
$564.00 per month
$775.00 out the door cost

tornadoredr32

Hey topcat,

Could be me but that MF looks a lot higher then the special advertised rate right now. If you take the advertised residual value for the 335xi 70% and run it through the lease calculator, taking into account the 3k down they want, and the $1,840 BMW credit, the MF is around .00109 +/- a few. Using that I was able to get within a couple of dollars of the advertised monthly payment. '

If you look at BMWusa they have the special running right now for a $47,575 335xi. So thats a grand less than your car.... if you compare payments that means they are charging you an extra $140 a month.... you already had them discount the car by $4100... so that should take care of the 3K down payment the lease special wanted and then some....

I am also looking to get some clarity on why there seems to be such a huge disparity between the special rate of what appears to be .00109 and the .0017 rates.....

GL

Edited: Also when I run those numbers using the higher MF rate they are giving you I end up at 517 per month... are you including tax in your quoted rate?

Using the lower rate from the special advertisement your payment would be around 469... which is $40 more... that makes more sense for a 1K higher price....

weakestlink

Joe531,

Here is an option for you. If you order a car to be built, BMWFS will lock in the current month's residuals and MF. If you wait until March 31 to lock in, your car will not arrive until May which is the timing you desire. Plus, you get to build the exact car you want without having to pay extra for any options that you don't want. As an added bonus, you can choose to receive the car at BMW's Greenville plant and you can attend the Ultimate Driving Experience for free.

Good luck.

tornadoredr32

Hi Carman,

Looking at the current advertised deal on BMWUSA for a 27 mo 335xi there seems to be a missing piece in order to get to the monthly rate of 429.00.

The cap cost for the deal is 27575 -3000 down - 1840 BMW credit; leaving a capitalized cost of $22,735. The residual value is 33,303 or 70%, the only unknown is the MF. To get to the monthly payment you would need a MF of around .00109 which is much less than the .0017 that is being posted on this board. Is there a dealer incentive of around 1200-1300 that is making this deal work?

Thanks for the help.

kyfdx

You can't reverse engineer a payment, without knowing the selling price. In other words, how much does the dealer have to discount the car, to meet that advertised lease?

Factor in a $600-$1000 discount by the dealer, and I think you'll see those numbers make more sense..

That said, I don't know the base MF, either...

tornadoredr32

Hey Kyfdx,

Thats true, but the ad does show the MSRP and then the cap cost. You could very well be right about the automatic discount... I know last year BMW was also sweetening the deal for the dealers by adding in a 1K dealer incentive....

Going down to a couple dealers today.... we'll see how much push back I get

kyfdx

Does the ad show the CAP cost?

closer_2001

Could you verify the residual and MF for a 24/15k on the 335D please. THanks!

topcat915

The mf on 2011 335xi 27 months 10k per year is .0019 residual is 70%. They are offering a BMW loyalty of -.0003 so I got .0016.

PA tax is 9% on the lease payment.

$554 per month $720 out the door.

It is an awesome car. Love it.

CarMan@Edmunds

Hi tornadoredr32. How do you know the capitalized cost of the vehicle that BMW is advertising this lease on? I don't believe that BMW mentions cap costs in its ads. There isn't any other cash incentives on the 335xi right now that I am aware of.

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CarMan@Edmunds

I'd be happy to help you out closer_2001. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2011 335d with 15,000 miles per year are .00185 and 65%, respectively for consumers who qualify for its top credit tier.

This factor is .00030 lower for loyal customers.

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tornadoredr32

Hi Carman,

Thanks for the reply.... if you take the MF (from this forum), the residual value (from the ad), the MSRP(from the ad), the monthly payment (from the ad), the down payment (from the ad) you can work your way back to the cap cost they are using by solving for x.

Basically I think there is an assumed dealer discount built into the ad of between 1200 and 2000 depending on the actual MF.

karter9977

I am looking at a 2011 335xi coupe demo with 5,000 miles. msrp is 54,100. What would be a reasonable selling price with the $1840 incentive? Edmunds TMV puts a new no miles one at $49,200 with the incentive so how much should I take off of that number for the miles?

I am looking to lease it but not sure what a reasonable selling price would be.

I appreciate any responses.

Thanks.

asokol

Can anyone verify the loyalty money factor and RV for a 2011 328i convertible? I am looking for a no money down, 36 month, 10k per year lease.

Also, does anyone know when the new body style for the 3 series is being released (I think this year)?

Thanks

leasebuyer

Car Man,

Looking at BMW 3 series 328 sedan with value pkg, premium pkg and heated seats. Is it possible to get just above invoice pricing? it seems that BMW's 27 month special is not much off MSRP. Can you tell me if there are any dealer rebates/incentives (are they still getting the $3500 as in Feb?) and what the lease factor and residual are for 12k miles on the 27 month special?

Thanks again in advance for all the assistance!

To everyone - has anyone bought recently close to invoice?

rrs79

i was recently offered 500 below invoice on any in-stock 328i - in MD

lasaab

Hi there,

I'm looking to get the best lease deal possible for a 328i. I'm ideally looking for one with leatherette, but have found that most of the cars on the lot also come with the "premium" or "sports" package that makes the MSRP higher.

I know that the invoice price is approx $2855 lower than the MSRP. The current residual is 59% for 10k miles/year and the Money Factor is .00120.

The base MSRP for a 328i without a moonroof is
MSRP: $31,700

With Moonroof approx $32,750.

If I do the lease calculations correctly, I should be able to get a lease deal for 36 months with no money down for $390 a month (inc tax), right?

Has anyone been able to get a deal like that (especially in the Southern California area)?

Car Man, am I being realistic with these numbers?

Thanks!

10krpm

Looking for a little information on the 335i:

What is the money factor and residual for a 27 month, 15k annual mile lease on a 335i?

Also, the dealer is offering a $1,305 credit option, if I get a manual with very little options, can I take that off of the dealer's sales price or will I have to load up on some other nice options instead?

jetfan

Car_man: Please let me know if this deal sounds correct. 2011 BMW 335xi loaner with 6K miles. Original MSRP $51, 500. Purchase price $43,400. 27 months, 10K per year. Residual $34,130.30, Money factor .00160. NJ taxes. $467.37 a month $2,290.15 at signing. Residual should be 70%. BMW bank fee $750, Dealer Doc fee $150 included in above. Do the numbers add up?

CarMan@Edmunds

Hi asokol. BMW Financial Services' March buy rate lease money factor and residual value for a 36 month lease of a 2011 328i Convertible with 10,000 miles per year are .00105 and 60%, respectively for consumers who qualify for its top credit tier.

This money factor is reduced by .00030 for loyal customers.

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CarMan@Edmunds

Hi leasebuyer. I'm not intimately familiar with what the market is like for the 328i right now, but if you are in an area that has a decent level of competition I personally don't see why you wouldn't be able to get one for $500 or so over invoice.

The only cash incentives that are available on the 3 Series right now are the option credits, which are good on the 335s, not the 328s.

I haven't seen the 27 month numbers, but BMW Financial Services' March buy rate lease money factor and residual value for a 24 month lease of a 2011 328i Sedan with 12,000 miles per year are .00190 and 73%, respectively.

This money factor is reduced by .00030 for loyal customers.

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CarMan@Edmunds

Hello lasaab. Are you assuming that you will be able to get this car for dealer invoice? That's a pretty aggressive price, but it might be attainable in a competitive market like Southern California.

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CarMan@Edmunds

Hi 10krpm. BMW Financial Services' March buy rate lease money factor and residual value for a 24 month lease of a 2011 335i Sedan with 15,000 miles per year are .00200 and 69%, respectively. I haven't seen this car's 27 month numbers, but they are likely fairly close to this.

The $1,305 option credit that you referenced is to be used for a free automatic transmission. I doubt that you can take advantage of it on cars that come with manual transmissions.

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irish68

I am a current BMW FS customer and looking to lease a 2011 335D. The MSRP is $54,000 and the lease rate i got was $617 a month including DC tax which is 10% of the monthly payment. 12K miles

Its a $0 money down deal with just first payment due.

What do you think?

Thanks in advance

dvig

Hi folks, great site!

Can you provide best idea on the buy rate lease money factor and residual value for:
- 2011 335i xDrive/AWD sedan ($52,800 MSRP with options)
- Zip 20904
- $3,000 cap cost reduction
- 36 month lease
- 10,000 miles per year

Thanks much,
-DVig

socal59

Car man can I get the lease numbers for a 2011 328 Sport Wagon with msrp of $39,025.00 hoping for selling price of $36,500 15k miles/yr. Value package includes Auto trans, leather etc. Added options cold weather and roof rails. Appreciate your assistance.

theguac

Can anyone tell me if this is a good deal?

2011 328xi with cold weather package, value package, premium package, etc.

MSRP 44,465
initial cap cost 42,820
adjusted cap cost 39,699 after 2500 down, 750 rebate

Drive-off is 4404, money factor is 0.00240

For 10k miles, 27 months, the monthly payment comes out to 455.77 after tax (426 before)

They will absorb the $400 negative equity as a part of the deal so I don't pay anything on my car.

They told me you get tax'd on your down payment, which I didn't think was right...does anyone know?

I'm cross-shopping with Audi too and their 39 month lease for a 37k car was like $3600 drive off and $440 after tax.

Thanks!

purchasingsoon

Yes you pay tax on the down payment but I don't recall why that is.

Watch the money factor, they are jacking that up on you: should be .002. That's harder to negotiate because they will whine about how their finance department needs to make some money blah blah blah. Worst case you should be able to get it down to .0022.

I would also try to get the negotiated price down to at least 42500, but use truecar to figure that one out.

dtv123

Got my car yesterday and came on to see if I got a good deal or not. Anyways I noticed some questions on the 27 month leases, I hope I can provide some input since I got a 27 month lease.

This is what I got:
328i sedan
27 months 10k miles
MSRP was around 42k I think
74%
Metallic Sky Grey
Premium package & navigation
2 thousand down after 750 rebate
361 a month after taxes (I am from Southern California btw our tax is 9.75&)

The crazy thing is after I already chose my car the dealer came over and told me they had a demo car (exactly the same) that had 5k miles and they were willing to lease it for 319 a month AFTER taxes. Good to know if you are in the market for a great deal.

purchasingsoon

missing some details there. what was the agreed upon price of the car? what did you have to pay out of pocket total? what was your money factor?

sfiermon

Ok. This is my lease deal.

MSRP $52,225
Purchase $46,695 (incl $1840 credit)
Residual $33,303
MF 0.00161 (with 7 MSDs)
Term 27 months
Miles 20k/yr
0 down (other than acquisition)

$624/mo

Is it good???

nelson_m

hi all - great site and terrific information

i'm hoping someone can get me residual value and money factor for the 328i wagon and sedan - 27 month lease in PA.

i'm being told the money factor for the wagon is .00170 and the residual is 66%

being quoted a sales price 40,210 for the wagon w just the value package - truecar.com has this averaging much closer to 36k.

am i missing something?

many thanks.