# BMW 5-Series Lease Questions

CarMan@Edmunds
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**38,515**
in BMW

Hi everyone. Please use the following discussion to post any questions that you have about leasing a BMW 5-Series. Thanks.

*Car_man*

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## Comments

4,300Do you know the residual value and base money factor for the new 2006 BMW 550i for a 36 month, 36,000 mile lease?

Thank you.

hpowders

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4,300Ouch!

1What is the current money factor and residual value for a 545 for a 36 month/15k miles per year lease in southern california. Thank you in advance.

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8Thanks.

3How does this compare to the info you posted. I am not familiar with the terms 'buy rate lease money factor", or how the residual factor plays into the monthly payment calcs

thanks

383Can you suggest any good dealers in the Long Beach area?

Thanks

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38,515You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

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38Never enter into a lease without knowing the total capitalized cost of the lease, the money factor and the residual. These three things determine the lease price.

359% resid (12k miles/36 mos)

.0014 MF

$825 Acquisition fee

I believe the residual is correct, but isn't the current MF supposed to be .001? They tried to mark it up when I leased my 330 a couple years ago. I called them on it and they gave me the book value for MF back then. So I'm confident I can do that again so long as I can substantiate the current values.

I have zero information on the Acquisition, but this feels high to me. Any way out of the Acquisition fees? Also, I didn't see any disposition -- and can't recall if BMW does that.

I'm going to aim for $1000 over invoice. I think that's realistic given the phase out of the 545 -- what's been the experience of buyers over the last couple months?

Any other incentives or programs I could leverage here?

The dealer seems to think that if I wait until winter to order a 2006 530i with lots of options that I'll be in the same ballpark payment wise, so it's a better deal to step up for the 545 now for a nominal amount. Any opinions on this?

MSRP on the car I want is $59,520 and CapCost is $54,390. Using MF .001 and Resid of 59%, I come up with $715.50/mo. Is that right? And how does the acquisition affect it if I roll it in? Does it go into both the MSRP and CapCost figures?

Thanks for any and all feedback!

53,8302) Base MF is .0010... your dealer is marking it up the maximum

3) Base acq.fee is $625.. again, your dealer marking up the maximum.

4) Your calculation is incorrect.. given your figures, the payment would be $625/mo. + tax... If you roll in $625 for an acq.fee, then the payment would be $643/mo. + tax..

If you use .0014 for the MF and roll in $825 for the acq.fee, then the payment would be $685/mo.+ tax..

$54,390 would be a great selling price, if you can actually get it..

regards,

kyfdx

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3MSRP $59,520

Invoice $54,390

Negotiated price of vehicle & optoins $55,390 or $55,890 (either $1000 or $1500 over invoice - which I'm willing to negotiate to)

MF .001

Resid 59%

36mos / 36k miles

Acquisition $625 (rolled in to lease)

6.5% state tax

No cap cost reduction

And a question on the acquisition. When you roll it in for calcuation purposes, do you add it to both the MSRP and the purchase price, or just the purchase price?

Thank you very much!

53,830w/$625 acq.fee rolled in... $672/mo. + tax

$55,890 selling price.. base MF.. payment $668/mo. + tax

w/$625 acq.fee rolled in.. $686/mo. + tax

The acquisition fee is either paid upfront or rolled into the CAP cost.. It has no effect on the MSRP.

Each state may have it's own method of calculating sales tax on auto leases... Some just charge it on the monthly payment.. If that is the case in your state, then it is a simple calculation..

regards,

kyfdx

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312I will be leasing a 2006 530i with an MSRP of $57,990 and purchase price of $54,495. The total drive offs will be $5301 (including $3000 down payment). The money factor is .00240 and the residual is 60%. It's a 36 month lease with 15,000 miles per year. The payments, including tax, are $727.26. The money factor seems a bit high to me. Can I do better?

Thanks.

38,515On the car that you are interested in, a 2005 BMW 545i with an MSRP of $59,520 and a capitalized cost of $54,390, using a money factor of .00100 and a residual value of 59%, I come up with a zero down, pre-tax monthly payment of around $625. Adding a $625 acquisition fee to this cap cost would increase the payment to around $643.

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38,515Another problem that I have with this deal is that the money factor that you are being charged on this car is way too high. BMW Financial Services' current buy rate lease money factor on the 2006 530i is only .00175. This means that the dealer that you are working with is marking-up your car's money factor to add additional back-end profit to your deal. This sort of practice is fairly common amongst BMW dealers, but usually can be avoided by comparison shopping or confronting the dealer that you are working with with your vehicle's actual buy rate. Using BMW's actual base lease program for this car and the prices that you provided in your post, an MSRP of $57,990 and selling price of $54,495, I come up with a 36 month, 15,000 miles per year zero down, pre-tax monthly payment of around $704.

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122Sport Pkg

Premium Sound

Cold Weather Pkg

Auto trans.

Sat Radio

Heated Rear Seats

Sun shades

The dealer is telling me that although the 545 is an outgoing model... that demand is still very high... also the supply is now very limited. With that in mind, what type of amount off of MSRP (around 65k) should I try and negotiate? Based on above messages... I will definitely be sure to get the .0010 money factor. What monthly payment should I be looking at if I can negotiate down to something like 62k)? I am in So.Cal. Thanks!

38Also, you do not need to go into the dealership to negotiate the deal. I have done all of the negotiations and paperwork via phone and email. Being inside the dealership gives them the advantage over it and the negotiations then occur in more of a pressure cooker environment. The phone and email keep things fairer and at arms length.

12Thanks.

53,830somewhatcorrect in the way he worded it....However, if you make a security deposit (your payment rounded up to the next $50 increment), then

youcan get the same base rate... If you don't make a security deposit, then the base rate is indeed .00190regards,

kyfdx

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238265"they are telling me that they have to actually trade for this car from another dealier in central Cali... and that they will incur shipping expenses. Is it feasible to think that a loaded 545 black on black is no longer available in LA?"It's certainly possible, but dealer exchanges happen all the time. And it's no big deal...someone from Dealer A gets in the car and drives it to Dealer B, trades for the desired car (with a check for any price differential), and then drives back to the original dealership. I did a few for extra $$$ when I was in college (what fun to drive brand new Audis!), but trust me, the expenses are negligible.

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