BMW 5-Series Lease Questions

CarMan@Edmunds

No, hkhawaja, a leased vehicles does not have to be returned to the same dealership that you originally got it from. If you leased a BMW, you would be free to return it to any BMW dealership in the continental U.S.

Car_man
Host
Smart Shopper / Prices Paid Forums

bdemar

bimmerfan_sf,

What dealership did you use that quoated $621/month including tax! Thats a great deal. Has anybody else been able to get a 525i with at least the prem package, bi-Xenon lights, Steptronic, and Nav in the low to mid 600's a month including tax?

bdemar

Gosh theses forums sure are slow these days... Anybody know if its possible to get the 5 series with at least those options above for the low to mid 600's a month including tax(i know this will depend on which state your in) on a 3year 12k to 15k/yr lease?

be02939

Hello everyone. What a great forum. I am looking to lease a 530 or possibly a 550. Would any of you know the current money factors and residuals? Also, should I expect to negotiate the price down to about $1,000 over invoice on both?
Thanks a lot.

eddie33081

Hello.

I dont know the money factors but 1000$ over invoice is unrealistic for the 2007 5 series. I think anywhere between 1500-1800 and your getting a good deal.

be02939

Eddie, Thanks a lot for your help.

eddie33081

No problem,

I believe the money factor is still at 0.00225 for June. That is the money factor I received in May. The residual should be 59,60, or 61% depending on your milelage/model.

Once you get them at around 1500 -1800 over invoice fight to get the money factor down to .00225 and you should be happy with the monthly.

Hope that helps a little more.

eddie

poykayil

I'm in the process of buing a 550i. This is what I've been offered

2007 550i
Steptronic
Premium Sound Package
Cold Weather Package
Rear Seat Heating
Sports Package
Navigation

Selling price 63480

36 Month Lease / 12k Miles per year

Monthly Pmt: $965
Due at inception 1st month, security, bank fee, bank fee tax. 8.5% tax included in the payment.
What other factors should I look into?
Reading the discussions I have a few questions:
Can someone explain money factor and residual?

akv25

Guys:

I am looking at two different 2007 530xi's. Both are 36 mo/36K miles, 62% residual, $3000.00 down payment, $825 Acquisition Fee, and Security Fee of first month's payment.

1.
Jet Black
Leather
Cold Weather Package
Premium Package
Auto Trans
Comfort Access
Fold down seats
Heated rear seats
Nav system
Logic 7 System
Sale Price - $59,045.00
Lease Payment - $715+tax

2.
Black Sapphire Metallic
Leather
Cold Weather
Premium Package
Auto Trans
Comfort Access
Fold down seats
Sale Price - $55,695
Monthly Payment - $715 + tax

This is the first time I'm leasing a car. I don't have information on the invoice or the MSRP. Is the sale price and monthly payment reasonable. Any input will be appreciated. Thanks in advance.

l0m6905

If you are willing to pay $965 for a 550i then you are better off leasing the 2006 750i for that price range. I would if I was you. Also, right now you can lease a 2006 750i for $949 with $5,000 +/- down ....see bmwusa.com for details.

poykayil

$965 is 0 down with tax in the payment

be02939

That looks like a very good payment with the exact options that I would want. Do you happen to know how your $63,480 compares to the invoice price? If you are in CA, please let me know which dealer and sales rep. I am in San Diego and will fly up North for a good deal and have fun driving home.

be02939

Eddie, you seem rather knowledgeable in leases. How would you back in to the the MF that is implicit in the deal that Poykayil posted:

I'm in the process of bubuying 550i. This is what I've been offered

2007 550i
Steptronic
Premium Sound Package
Cold Weather Package
Rear Seat Heating
Sports Package
Navigation

Selling price 63480

36 Month Lease / 12k Miles per year

Monthly Pmt: $965
Due at inception 1st month, security, bank fee, bank fee tax. 8.5% tax included in the payment.
What other factors should I look into?
Reading the discussions I have a few questions:
Can someone explain money factor and residual?

Thanks a lot.

l0m6905

You would rather dive a 5 when you can drive the 7 & pay that kind of money a month??? Like I said you are better off driving the 7 for that kind of money. Why would you want to pay $965 a month to drive the 550? If your interest is only the 5 then save money & drive the 525.

Lets look at the big picture, you are willing to lease this car for $965 a month plus TT&L, fees, ect. At the end of the 3 years you would have spend $34,740 plus fees to drive this 550 & have nothing to show...lease the 750i. I promise you will have no regrets. If you don't believe me, test drive the 750i & let me know what you think!

akv25

I'd messed up on the payment for the second car. It is $765+tax. I'd appreciate any input.

be02939

Hi all, I just received 59% residuals and .0228 money factors for a 36 mo, 10k mile/year lease. This is for both cars. I would think the 530 should have a lower MF Anyone have any thoughts?

adrio40

I am being offered the following quote for

2007 530i
Premium pkg
Cold Weather
Premium Sound
Sirius

MSRP 54415 , Price 52250
$2700 down, tax title, 1st month & security deposit
(Total $4000)

$800 per month for 36 month 18K/year lease

Should I go for it?

Thanks

akv25

Adrio:

How's the sale price compared to Edmund's TMV and what's the residual?

poykayil

I asked my local dealer he said he couldn't compete with the price, because it is $700 over invoice. I live in NY and over the weekend I found a dealer in NJ offering me the car for 63390. So I finally signed the deal. Now the hard part is waiting 6-8 weeks for delivery

bilmac

530xi
Premium package
Automatic
Cold Package
Price is 52,135.
$693.50 an month for 36 months 10k miles

I think they are using .00225

Is this a good deal?

be02939

Looks like a great deal. If you are in California, would you mind posting the name of the dealer?

bdemar

Anybody know what the July rates or offers will be(525i 36months 15k)? I have an offer on the table and I am locked in to the june rates, but since the car wont be here for another few days I want to see if I should prolong to see if July has some incentives. The dealer really wants to wrap this up before month end... I guess for thier month end numbers.. I know its hard to get a response in here, but please help me out Thanks

mark1234

Hey folks,
Thanks for all the info everyone has posted. I have been doing some prelim investigation into a 530xi. I had some general questions regarding drive-off fees and downpayments.

1)What exactly is included in "drive-off" fees? I realize there is acquisition fee, tags,etc., but what should I look out for? What is the "going rate"?

2)I understand that one should put as little as possible as a downpayment, but what is the bare minimum? My dealer suggested $2500, is that too much?

Thanks

CarMan@Edmunds

Hi be02939. I can give you an idea of what these cars' lease programs are currently like. They vary depending upon how long you lease for and how many miles per year you need to be able to drive though. For now I will assume that you're interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of an '07 530i are .00225 and 60%. The number for an otherwise identical lease of an '07 550i are .00225 and 59%.

Car_man
Host
Prices Paid Forums

vsaxena

There is no point for you to start the lease before you have the car. If the car is not here till June 30, you have the option of checking out the July rates and see if they are better.

bdemar

Yeah I know that is why I was hoping somebody would be able to help me on what the July rates might be. The car I'm guessing will be in here probably on July 1st, and I would like to know from another source besides the dealer what the published rates will be for the 525i 15k/year 3yr lease would be. Thanks for the help guys my time is limited!

CarMan@Edmunds

Hi be02939. BMW Financial Services' current buy rate lease money factor for a lease of any 2007 5-Series, other than the M5, is currently .00225.

Car_man
Host
Prices Paid Forums

bdemar

Car_Man is that whats its going to be July as well? I thought they might introduce some incentives... I am also being offered .0250, and can't seem to get these guys to come to the normal factor of .0225 here in Chicago. Its like I have the deal that I want but I can not get them to give me that .0025. I think this will only change my payment by like 12 bucks but do you guys have any strategies to get them to the .0225? Thanks the car will be here tommorow... please help

newkid300

I am new to this. I am looking for a 2006 or 2007 (if available) 525. Only requirement is automatic because I am just tired of driving a stick and live in NYC. What would be a good lease deal for a 36 month, 15,000 mile lease. Also, how does the calculation work with a money factor? thanks

hdd3

does anyone know the lease rates on the M5 (mf & residual).

thanks!

bilmac

Not sure about the M5 but I just leased a 530Xi and the factor is .00225 and the residual depends on the millage you get. THis is what they told me:
10K is 60% residual
12K is 62% residual
15K is 63% residual

I think it make more sense to get lower milage because they allow you to buy it for .16 a mile vs. .15 a mile on a .01 penny 6 months before the end of the lease.

I think I explained this right just ask them to go through it with you they should declose the details. They usually don't explain be cause most peopl don't under stand leasing.

bu96

Would appreciate it if anyone could tell me if ad fees, prep charges are typically non-negotiable fees or a part of MSRP.

Thanks,
Anne

jpfive

I went to the BMW dealership today. Here are the supposed July MF rates and residuals:

15,000 mi/36 mo.

325i .0027 62%
330i .00215 62%

525i .00245 60%
530i .00245 60%

newkid300

I went to a large dealership in NYC today and was quoted a price for a 525 with a money factor of .00225 and a 62% residual. However, this was on 12/36 lease.

newkid300

Carman, is this a good deal:
2007 525 with
Cold weather package
Premium package
Manual transmission
36 months, 12,000 miles
Used money factor of .00225, residual of 62%
MSRP 46,945.00.
Sec $700.00
total annual fees $205.00
Total initial fees: $22.50
Amount at start $2,298.09 including first month and security.
Monthly $693.25
Thanks

jpfive

I think you add 2% to residual for 12k and 3% for 10k.

CarMan@Edmunds

Hi bdemar. I have seen BMW's July lease program and would be happy to share its details with you. If you were to lease a 2007 525i 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%. I believe that this is exactly the same as its June program was.

Car_man
Host
Prices Paid Forums

CarMan@Edmunds

Hello mark1234. On a lease through BMW Financial Services, you will have to pay your vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, its $625 acquisition fee, and any required state taxes or fees. BMW will waive its security deposit requirement in exchange for an increase of .00015 in your vehicle's money factor -OR- you can give them additional deposits and buy your vehicle's money factor down by .00007 with each one on top of the first. You are not required to make any sort of capitalized cost reduction aka down payment when leasing. You can and should lease the 530 that you want and only have to pay the aforementioned charges at signing.

Car_man
Host
Prices Paid Forums

CarMan@Edmunds

Yes, bdemar, a few days ago BMW extended its lease money factors for the 2007 5-Series all the way through August 31st. Its buy rate is still .00225 with the payment of a security deposit and acquisition fee. You can't force the dealer to use the buy rate to calculate your car's payment, but if they think that they will lost your deal because of the mark up I doubt that they will let you walk.

Car_man
Host
Prices Paid Forums

CarMan@Edmunds

Welcome newkid300. 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 monthly payment of the car that you want will vary depending upon its MSRP and selling price. If you provide me with these two numbers, I would be happy to calculate a sample lease payment for you. You can look up this car's MSRP and dealer invoice price by visiting the following section of this site: Edmunds.com - New Vehicle Pricing. You should be able to get a good idea of how much you will have to pay for this car by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

Car_man
Host
Prices Paid Forums

CarMan@Edmunds

Hi hdd3. BMW is not currently providing any sort of lease support on the 2006 M5. As a result, if you were to lease one through BMW Financial Services, you would have to use its standard lease program. I believe that BMW FS' standard money factor varies a little depending upon what part of the country one is in, but it should be around .00310 for any length lease. This car's residual values vary depending upon how long you lease for and how many miles per year you are allowed to drive. If you were to lease an '06 M5 through BMW FS for 36 months with 15,000 miles per year, its residual would be 55%. Let me know if you want info for a different term or mileage allowance.

Car_man
Host
Prices Paid Forums

CarMan@Edmunds

Hi jpfive. The dealer that you spoke with is marking the buy rates up for these cars. Through the end of August, BMW FS' buy rate lease money factors for the cars that you mentioned are as follows: .00250 for the '06 325i, .00195 for the '06 330i, and .00225 for the '07 5-Series with the payment of a security deposit and acquisition fee at lease signing. If I was personally in the market for any of these cars I would pay the deposit and acquisition fee and insist that the buy rate is used to calculate my car's lease payment.

Car_man
Host
Prices Paid Forums

CarMan@Edmunds

Hey newkid300. The money factor and residual value that you were quoted to lease this car look good to me. It would be easier for me to give you my opinion of this car's lease payment if you would provide me with its selling price. This will show me how much of a discount you are bring given.

Car_man
Host
Prices Paid Forums

newkid300

The initial cap cost or selling price was $45,755.00. The MSRP was $46,945.00. The dealer did tell me, just before I left that he could have the payments come down to about $685.00 per month as he would take another $500 off teh price which would bring it down to $45,255.00. Thanks

bu96

Carman: Hoping you can answer my question from above as I have to close on a lease right away.

Are ad fees and prep charges typically non-negotiable fees for BMW. What fees (ie: destination fee) are standard?

Thank you in advance.

spidy99

Hi, new to leasing , but knows the basin terminology and how a lease works. Question i have is I got a quote on a 07' 530i having a MSRP of $47,500 and a negotiated price of $46950 with 59% residual on 15k miles per/years and lease money factor of .00225. Is this a good deal and what should my payment be on a 24 or 36 month lease? The only thing I am responsible for is first payment and $600.00 security deposit.

jab9

Hi. I am taking delivery of an M5 at the end of the month in Southern California. I am wondering what the best lease terms (residual, mf) are that I should expect from the dealer. I am interested in 36mo, 10 and 12k.

Thanks in advance.

mark1234

Thanks Car man,
When I was at the dealer, I was the given the impression that "some" type of down payment, i.e cap cost reduction was "required". Granted it was just the preliminary discussions, and I am in a small city in central VA where there is no other dealer for 75 miles, but that seemed a bit presumptuous. I'm certainly going to shop around, but it's nice to get a better idea of what the "going rate" is.

Mark1234

benbrandt

Carman,

I am in New York City...

Any advice would be great!!!

Here was the offer:

2007 BMW 525xi (wont be delivered till mid september if ordered this week)

36 Month Lease
15K/per year
Automatic Transmission
Premium Package
Cold Weather Package
Navigation System
Sirius Sat Radio
.00225
60%

MSRP: $52,815.00
Invoice: $50,315.00

$699 first month, $700 Security Deposit, $625 Acquistion Fee, Fees & Ins (upfront) $53, Taxes $2170

Total Out of Pocket: $4,247

Monthly Payment:$699.00

Is this a fair deal, or should I be able to get a better price?

Thanks for your help!

bargamon

Car man,

Do you see any disadvantage to Euro delivery?

What do you think of getting a better deal on a 5 vs an 07 X3 or 3 sport wagon. Given the 07s are out.

I wish to go to Switzerland skiing with a BMW and then ship it home. Air fairs are decent now and I really must lock in soon. WIth 07 prices on X3 and 4 not yet available its my perception I can get a better deal on a 5 sedan than the others. Seems I can negotiate my price, get an additional 2500-3000 off and order my colors and equipment.

Anything wrong with this logic?

Thank you!