BMW 5-Series Lease Questions

yatze

Dealer called to say he was getting a 2006 530xit with 6000+ miles. MSRP $57,870.00

Ran CARFAX on the VIN. Looks ok. Car was registered commercial--one owner. Registered 6 months ago.

What would a "good" lease number with little or no money down be for 36 months, 15,000 a year for this car.

What would be a "good" purchase price for this vehicle?

The dealer said it would be sold as a used car and would come with the BMW certified pre owned "stuff".

It has the cold weather package; premium package, auto trans, navigation system.

Any help is greatly appreciated.

Thanks.

CarMan@Edmunds

Hi everyone. BMW is scheduled to publish its new March lease program late today. I should have an opportunity to take a look over within the next couple of days. I would appreciate it if those of you who still have questions about leasing one post a note for me in this discussion later on this week. I'll be happy to answer any questions that you have on the new program then. Thanks.

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asteinberg

Hi. My BMW Center says for 530i my Feb deal (late March delivery), it will keep MF base MF at 1.40; or lower it, if it's lower for March. What is it? And (curious) how does it compare to MF for other BMWs, like 550, or x5?

pocari

Hello Car_man

Can you please post the lease figures for a 550i, 24 months, 12k per year?

Thanx

yatze

Dealer called to say he was getting a 2006 530xit with 6000+ miles. MSRP $57,870.00

Ran CARFAX on the VIN. Looks ok. Car was registered commercial--one owner. Registered 6 months ago.

What would a "good" lease number with little or no money down be for 36 months, 15,000 a year for this car.

What would be a "good" purchase price for this vehicle?

The dealer said it would be sold as a used car and would come with the BMW certified pre owned "stuff".

It has the cold weather package; premium package, auto trans, navigation system.

Any help is greatly appreciated.

Thanks.

cgs1238

The last time I bought a car (Honda Odyssey) I used a car broker and had a great experience. He got the car at the lowest price I could find without all of the hassles of the dealership.
I am now in the market for a BMW 530 and I would like to know if I am better off using the broker or dealing directly with the dealer?
I want a 24 month least with 15k miles per year. I live is S Fla.

CarMan@Edmunds

Hi asteinberg. BMW's money factors for this car vary depending upon how long a lease you want. Its February buy rate lease money factors for the 2006 530i are .00175 for 24 month and .00140 for 36 to 42 month leases. This compares with .00200 for 24 to 42 months for the '06 550i and .00100 for the '06 X5.

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CarMan@Edmunds

Hello pocari. If you were to lease a 2006 BMW 550i through BMW Financial Services right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00200 and 72%, respectively.

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CarMan@Edmunds

Hi yatze. If the car that you are interested in is not a loaner vehicle, but was actually owned by a consumer or company I am sorry to say that it is no longer eligible for BMW's new vehicle lease program. You probably would still be able to lease it through BMW Financial Services, but only as a Certified Pre-Owned vehicle. BMW is one of the few manufacturers that provides a decent amount of support on used vehicle leases from time to time. I doubt that its used vehicle lease program for this model is as attractive as its new vehicle lease program for it though. Unfortunately, I do not personally keep tabs on the details of manufacturers' used vehicle lease programs.

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CarMan@Edmunds

Hi cgs1238. Consumers who lack the time or ability to negotiate a good deal on a new vehicle often enjoy working with brokers. However, brokers really don't do anything more than add another player to the transaction that needs to profit off of your deal. Smart shoppers who research the vehicle that they are interested in and shop around can almost always beat or at least match the deals that brokers could get them.

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pocari

Thank you Car_man.

Are lease figures published for the 2007 model? The reduced MSRP with the European Delivery is appealing but it is my understanding the 2006s are no longer manufactured.

Also, would you please let me know the figures for a 36 month lease?

Thank you for your help.

alchingon

Is this a good deal? I tried plugging the info( residual and money factor) from what I read on this board and the number comes out lower from what the sales rep gave me as a monthly payment quoted below.

550i 06 msrp 62,195- Sales price 59,645.

Zero down - 36 months , 12k miles/yr 895.02/mo + tax.

addi

Would you give me the MF and residual for this car allowing for 12000 miles per year and a 36 month lease.
I see through Edmunds rebate info this car also has a $1200
cash to the dealer program through April. Using your info, I will be able to figure a price for this car using
the basic leasing program. Thanks much. Addi.

asteinberg

Thanks, Car_Man, but I'm confused by your post.
In Feb, I made following deal for 2006 BMWi to be delivered late March:
MSRP $56,695; cost $53,880 (including $1250 for dealer)
12K @ 24 months: $623.03+tax; $2519.46 driveoff
12k @ 36 months: $640.48+tax; $2538.35 driveoff
driveoff includes first month's payment, acquisition $625+tax; doc fee (about $40, I think), auto registration; and $700 security deposit.
I was told MF was .00140 (NO reference to lease term), and my MF would be .00140 or the March MF, whichever is lower.
1) I inquired of you re: March MF...Did you make typo-- did you mean MF for MARCH (not Feb) is .00175 for 24m and .00140 for 36-42m?
2/ Do residuals remain the same for March 530i leases as for Feb leases?
3/ In my deal, aren't I better off for 24m than 36m?
Sure, I pay $625 acq. again in 2 yrs, but save $480 in payments over 2 years, and I save more: I only pay for 1 yr, rather than 2 yrs, of emergency communication and Sirius), then start over with a new lease of those 2 services free Plus, I'll have possibility of getting a more current car in 2 yrs, perhaps even ordering 3 months in advance.
4/ Is the low MF for 06 X5 of .00100 balanced by a low residual, so the lease is not that attractive?
Thanks in advance for what I hope will be a clear reply.

lplantemoli

I just brought home my new monaco blue 525xi. Got it in westchester, ny. auto, premium, cold weather pkg, and fold down rear seats. sticker $49895. Invoice 45665. I got the car for 47,500.($1800 over invoice). Got the base MF of .0016 and paying $630/mo with tax (595+35 tax)... 1st mo, sec dep and acq fees only up front (about $1900). I think I got a very good deal. Could have squeezed another 500 off the price of the car, but hey, everyone's gotta eat, and he did truck this car to NY from a dealer in MA for me as there are very few 525xi's around. Just thought you all would like to know for reference. I'm very satisfied with the whole experience. ANy comments? BTW this forum was immensely helpful to me. I was all set to do the deal at 647/mo, and after reading here, I made him to lower my MF from .0019 to .0016. Thanks for all your help everyone...
Len

rob100

I am a newbie to leases and BMWs and would really appreciate some help from the more experienced on this board. I am looking to lease a 2006 525i with MSRP of $46,865 and Invoice of $42,940. I know almost nothing about lease calculations and would REALLY APPRECIATE it if someone could tell me an approximate good lease payment. I know you need to know the sale price to calculate a lease payment. If we assume a sale price of $44,000 (does $1,000 over invoice sound abour right--I live in Nashville)and a 3 year/36k lease with nothing down but first payment and security deposit, what would an appropriate pre-tax monthly payment? Also, does anyone know how the tax works on a Tennessee lease? THANKS in advance to all who provide help!

yatze

Thanks. EXactly what you said. Went to the dealer today, and he sent me over to the new car dealership because he said had some new 2006 530xi wagons.

Here's the numbers. MSRP was 58+, dealer offer was about $3500 off invoice. Down payment was $4800, and monthly lease price is $632. I though the down payment was pretty high.

What are your thoughts?

CarMan@Edmunds

You're very welcome, pocari. Yes, BMW just published a lease program for the 2007 5-Series for the first time this month. If you were to lease a 2007 BMW 550i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 60%, respectively.

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CarMan@Edmunds

Hi addi. This is a better question for the Z$ lease discussion. I would be happy to answer any questions that you have about leasing the new BMW Z4 in that area. Thanks.

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CarMan@Edmunds

You are absolutely correct, asteinberg. The numbers that I posted are BMW's new March lease program. Sorry for the confusion. Using BMW's February lease program, you probably would be better off leasing this model for 24 months than for 36 months. However, now tha BMW has raised its 24 month lease money factors for March that may no longer be the case. The X5's residual values are a couple of points lower than the 5-Series' residuals. That would probably make up for the difference in these models money factors and then some.

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CarMan@Edmunds

Congratulations on your new car, Len. Thanks for taking the time to share the details of your lease with everyone. Enjoy.

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asteinberg

Thanks for all your help, Car Man.
Since dealer offered me, for my Feb 2006 order for 530i, for late March delivery, that I would get Feb MF (1.4) or March MF, whichever is LOWER, I would assume I get 1.4 on the 24 month 2 yr lease when I pick up car in 2 weeks. My inference is that BMW FS must honor this offer.

cgs1238

Ok, I finally broke down and decided to get my first Beemer. My current lease is up after one more payment so I am not in a terrible rush. I went to the dealer today and he basically told me it is very hard to find the 2006 530 here in South Florida. The guy also told me the money factor for the 2007 models will be higher than for the 2006. I told him I would settle for the 2006 525 if he can't find me the 530.

My real question/statement is that I now feel I don't haveany negotiation power. He ran the numbers straight off the BMW website and said I could get the 2006 530 with no down payment for a little under $700.

He also said due to the new money factors the best lease I can get is for the 36 month lease. He said the good 24 month lease offer is over.

Does any of this sound "kosher"?

Any feedback would be appreciated.

CarMan@Edmunds

Greetings alchingon. According to my calculations, if you were to lease a 2006 BMW 550i with an MSRP of $62,195 and a selling price of $59,645 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $783. It appears to me as though the dealer that you are working with may be trying to mark-up BMW Financial Services buy rate money factor for this car. This is not surprising, BMW dealers do this sort of thing all the time. However, consumers who know what the buy rate money factor is for the vehicle that they want to lease are often able to get dealers to use it to calculate their lease payment. BMW FS' buy rate for a 36 month lease of an '06 550i is currently .00200 with the payment of a security deposit and acquisition fee.

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CarMan@Edmunds

Welcome rob100. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

The exact lease payment for the car that you are interested in will depend upon its selling price. For now, I will assume that you are going to pay $1,000 over dealer invoice for the car that you want, but you may be able to get a more specific idea of how much you should pay for it by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience". According to my calculations, if you were to lease a 2006 BMW 525i with an MSRP of $46,865 and a selling price of $43,940 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $531. I am not personally familiar with how sales tax is calculated in your area, but you may be able to find out more information on this subject by visiting the following site: Tennessee Department of Revenue.

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CarMan@Edmunds

No problem, yatze. Do you mean that the selling price that you were quoted is $3,500 below dealer invoice? That sounds way too low to me. What is the actual price that you are being offered this car at? If you let me know, I'd be happy to use that information to estimate what your lease payment should be for you.

You are absolutely right about the down payment being too high. 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 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 BMW would be exactly the same, regardless of whether you had put nearly $5,000 down, or had made absolutely no down payment at all. If you have that much money to put down, you may want to consider making multiple security deposits on this car instead. BMW Financial Services allows consumers to put down multiple security deposits when leasing, with each additional deposit buying down the money factor that is used to calculate your vehicle's monthly payment by .00007. Consumers can make up to seven additional deposits on vehicles. The advantage of making multiple deposits is that you actually get that money back at the end of your lease. BMW actually just enhanced its MSD program this month. Formerly deposits only reduced vehicles' money factors by .00005 and a maximum of five deposits could be made.

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CarMan@Edmunds

You're very welcome, asteinberg. Yes, BMW does allow consumers to lock in vehicles' lease programs on ordered vehicles for a couple of months. You are in good shape if you locked in your car's money factor last month.

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CarMan@Edmunds

Hi cgs1238. The dealer that you spoke with was correct. BMW Financial Services must have gotten too many two year leases in its portfolio because it's now steering consumers towards 36 month leases on most models. Why do you feel as though you do not have any negotiating power? If you feel as though you are not getting a low enough selling price on the car that you want you can always just walk away from the deal. It is extremely important to negotiate the selling prices of leased vehicles. I would be happy to give you my opinion on the deal that you were quoted if you provide me with this car's MSRP and selling price.

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bdr127

I went to the dealer today and he basically told me it is very hard to find the 2006 530 here in South Florida.

It's really hard to find any 2006 5-Series anywhere in the country.... 2007 5's are already shipping, so you know they had to have stopped production on 2006's a few months back.

You could either get an 07 with a higher payment or be not as picky on selecting an 06.

asteinberg

Thanks again.
1/I'll assume dealer WILL indeed honor its offer last month to lock in 0014 MF on 24 lease, for car being delivered late March.
2/ Given that lock on Feb MF, can I still met me take advantage of multiple deposits? Since security deposit reductions on MF are better now, it sounds like they might be worthwhile.

bdr127

I'll assume dealer will honor its offer last month to lock in 0014 MF on 24 lease.

The only way they can "lock in" last month's rate is if you submitted a credit application through BMWFS last month. I'm not sure if you also need to do anything else more specific to the car.... but I know for a fact that you at least have to have that credit app processed by BMWFS during the program period. If you didn't do that then, then it's too late.

asteinberg

I'm doing $700 deposit to reduce MF from 155 to 140.
So, I assume each subsequent $700 deposit reduces it by 00007, thus to 133, 126, etc.
Suppose I lose 5% interest, so I lose $35 annually for each $700, roughly $3 monthly. How much does the payment decrease on a 530i
2 yr lease, capitalized at $53,700 with $621.23 monthly payment, tax payment?

kyfdx

If you make 7 extra security deposits, bringing the money factor down to .00091, it is going to drop your payment by $40-$45/mo..

regards,
kyfdx

rob100

Car Man--Thank you so much for all the helpful information. I see you often provide help to so many others in this forum and I think it is great that you take the time to do so. If I can indulge you one more time--I would like to get a rough idea of the lease price on a 325i. If the MSRP is $36,115 and the sale price is $34,155, how much should a 3 yr/36k no money down pre-tax lease be? Thanks again.

asteinberg

I'll assume at least $45 monthly saved when you add in 8.25% Cal sales tax, or at least $540 annually saved.
Security deposits: 7x7=$4900; assume 6% value of money or $294 lost , so it would seem a $246 annual saving by putting up the security deposit ($540-$246).
Not great or a big thing, but something, right?
It would be nearly $500 net savings over the 2 years.
Thanks for all your help.

yatze

No, 3500 below MSRP which was $59 and change. SO, the lease is based on about $56K for 15,000 miles for 36 months. Wow, no one told me about multiple lease deposits. So, if I put down 7 lease deposits at $650, what would the mf be and my monthly lease?

sdsualums

Please help. I am looking to lease immediately and need money factors and residual percentages for 36 month lease 10k a year 525 and 530. Thank you in advance.

asteinberg

Thanks again for your informed response. On Feb 18, dealer e-mailed me for info "to submit to BMWFS"; I promptly responded to the request for name, dob, ss#, mortgage payment, job, income, how long worked there etc. On Feb, 19, dealer wrote me to confirm that info was submitted to BMW FS; dealer then asked for credit card for $500 deposit (which, I notice, didn't actually get charged to American Express until Mar 2). I think I'm OK. Car due at dealer on March 25. Also, I think when all is said and done, I may go for multiple deposits, per my prior post, that it create NET savings (allowing for 6% value of money to me) of at least $250 annually, possibly more.

bdr127

On Feb, 19, dealer wrote me to confirm that info was submitted to BMW FS

Definitely save that email for proof... just in case they didn't do it and you're stuck with the newer/higher rates.

dmason12

Hi, I am looking to lease a 2006 550i this weekend and wanted to know if anyone knows the buy rate money factor and residuals for 24 and 36 month lease with 12k miles per year for March. I am in CA. Thank you in advance. The info on thsi page is great! I will never have to pay a buying service again!

sdsualums

Does anyone have money factors and residuals (payments too) for March 530?
530i
53,570
52,500 sale price (not much off, I know)
10k
36 months
I am trying to get this today!
Thank you.
:confuse:

lplantemoli

Is it true that multiple sec deposits aren't offered in some states? A dealer told me it it wasnt offered in NY

twobox

nervous about my first lease. 530xi wagon- cold weather, navigation, premium, automatic. negotiated invoice + $250.00 = $53,500 sale price ($4,500 under msrp) - total drive off is $5,000 (includes cap cost reduction $4,000, $0 security deposit, $625.00 bank fee + taxes...)
.00150 money factor, 24 month lease/15k miles = $476/mo. + tax. is the drive off too high? is this a good deal?
any advise would be greatly appreciated as i might sign tomorrow.

stoy

First, thanks for all the great info. I was offered the following for 2006, 550i today. Here are the details: MSRP $64K, Sales price $61K, residual 62% and money factor of .003!!! with nothing down they were asking for $994/mo. Two issues: The MF seems usorious compared to what I've been reading on this board. The second, after plugging their numbers into my model, it doesn't add up to $994, but rather to $897/mo, including taxes. Question 1: have you come across anyone asking for a MF of .003? Question 2: is my calculation of their lease accurate? Thanks.

stoy

sorry, left out a small detail; it was for 36 months

sdsualums

so it seems.

jvos

Stoy -

A MF of .003 is too high! That is twice as much as a .0015 MF. Also, I've noticed that calculators can be off a few dollars, but it seems you are off too much.

sergeym

With your numbers and MF of 0.003 I've got $894 pretax. The current (March 2006) base MF is 0.002. Using the base MF I've got $794 pretax. I would insist on the base MF and a little bit lower price for 2006 model.

venit

Car Man,

Can you please provide the Money Factor and Lease Residual Value for the 525i and 530i for both the 06 and 07 models? I’m preparing to lease for the first time and have read just about every posting in this forum…great information. I will take any and all suggestions to get the best deal.

Considering
525i– Invoice price, w/ options (per Edmonds) $46,789
530i – Invoice price, w/ options (per Edmonds) $50,590

If I can’t a 2006 with the options I want, then I’m considering ordering a 2007.

Thanks in advance for the help.
A.J.

poet715

Please give me an example how to exactly calculate the payment in respect to MF
e.g. a sale price is $50,000, lease for 36 months, 0 down
residual 60%, money Factor .0015
What is the equation ?