BMW 5-Series Lease Questions

twnmango

Is it possible that the "buy rate" MF for NOV. on a 5-series is only 0.00009? According to leaesguide.com calculator, that is only 0.21%APR. If its a typo and the MF is at 0.0009, the APR is still a awesome 2.16%. Are you sure this is what you were contracted at for your 525i?

What is the RV for a 24/15K and 36/15K lease?

I'm currently shopping for other makes such as Audi and Volvo, and this MF looks too low and too good to be true.

mrresearch

Car_Man, Im a first time poster, long time reader. Could you please tell me
what the pretax payments would be on a 2007 525xi with an msrp of $49,670 and selling price of $47,000 with 15k miles for 30 or 36 months?

ckreling

Could someone please post list of 5 series (especially xi series) lease money factors and residuals for November.

Thanks

carnutfan

I saw .0007 on bimmerfest. My question is whether I can re-do my lease at the lower rate. I haven't signed a contract yet, just ordered the car and worked out numbers with the salesman.

geek4hire

I'm offered from Thompson BMW in Doylestown, PA:
07 525i

Prem & Cold pkgs
Comfort seats
Navigation

Price: $50,100
Lease payment: $659 (includes tax & 7 security deposits)

Seems like the price isn't discounted much off the MSRP.

Aquisition Fee: $625

geek4hire

Forgot to mention it's an 18k miles/yr lease & has auto transmision.

rosie108

I can only go by my experience, but I just closed the deal on my 525xi lease on Thursday in Princeton, NJ.

MSRP = 54,020
Invoice = 49,820

Includes premium package, cold weather package, Automatic trans, comfort access, Nav, park distance control.

Buy price = 51,620 (1800 over invoice)
Lease based on a .0005 MF = 15K, 36 month for $649/month (2300 inception payment includes 649 security deposit)

I probably could have gotten a lower "buy" price if I haggled a little more, but I was so blown away by the .0005 money factor that I didn't feel much like haggling! When we asked if the 530xi deal would be the same, the salesman said No - each car has their own MF & residual.

Happy bargaining!

acerfan

Carman,

Can you please comment on the money factor and residuals for 530 and 550, 12k and 15k/ 36 months? Also, I vaguely remember reading in one of these forums about getting a discount on new car lease or purchase if one is a member of, I think, Bimmerfest...? Is that true and how does it work?

Acerfan.

dhanley

You can get a $1000 discount on a 5-series if you've been a BMWCCA member for over a year.

CarMan@Edmunds

Hi bluedde. The money factor that you were quoted for this model is way too high. BMW Financial Services' new buy rate lease money factor for the 2007 BMW 530xi Wagon is only .00125. Make sure that the dealer that you are working with uses this factor to calculate your vehicle's monthly payment. The selling price that you were quoted looks reasonable to me, but you can always stop by the following discussion to compare it to the prices that other community members have paid for similar vehicles lately: "BMW 5-Series: Prices Paid & Buying Experience". The line that this dealer told you about this being a month-end special was not true.

Car_man
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Prices Paid Forum

CarMan@Edmunds

Hi dylan77. The selling price that you were quoted for this car looks reasonable to me. Even with the annoying acquisition fee mark-up, you're still at only $1,000 over invoice which isn't bad. BMW enhanced its month factor for this car for the month of November though. If you haven't leased this car yet, make sure that the dealer you are working with uses BMW FS' new November money factor of .00050 to calculate your car's monthly payment.

Car_man
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CarMan@Edmunds

Here's the information that you're looking for, armitagemike. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 525xi with 12,000 miles per year are .00100 and 62%, respectively. The numbers for an otherwise identical lease of a 2007 530xi are .00125 and 62%. The numbers for an otherwise identical lease of a 2007 530i are .00050 and 62%. Lastly, the numbers for an identical lease of a 2007 525i are .00050 and 62%. If you opt to make multiple security deposits on your lease, each additional deposit that you make after the first will lower your car's money factor by .00007.

If you've shopped around and negotiated with several dealers in your area and the best that you can do is $2,000 over invoice, that may just be the going rate for these cars in your area. You can always stop by the following discussion to see how much other community members have paid for similar vehicles lately: "BMW 5-Series: Prices Paid & Buying Experience".

Car_man
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CarMan@Edmunds

Hello tinoco. You never mentioned the selling price of the car that you are interested in leasing. This is an important number 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 the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work give you my opinion of this deal if you let me know what its selling price is.

Car_man
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CarMan@Edmunds

Welcome rosie108. The payment that you have to pay to lease this car will depend upon how low a selling price you are able to negotiate on it. You should be able to get an idea of what the going rate for this car is, selling price-wise, by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

I can give you an idea of what this car will cost to lease for now by assuming a certain selling price. Let's use $1,500 over dealer invoice. According to my calculations, if you were to lease a 2007 BMW 525xi with an MSRP of $54,180 and a selling price of $51,560 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $614.

Car_man
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CarMan@Edmunds

Hi mukvij. I am sorry to hear that your lease allows fewer miles that you will need. I am sure that this is a frustrating situation. One always needs to find out exactly how many miles their lease allows before taking delivery of a leased vehicle. BMW always advertises leases with only 10,000 miles per year so that its vehicles' have attractive monthly payments. While low mileage allowances make vehicles' monthly payments more attractive and in turn make it more likely for dealers to close deals, they do not make any money by lowering vehicles' mileage allowances. So I wouldn't say that you were "screwed" just that you didn't check your car's mileage allowance before finalizing your deal.

Car_man
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CarMan@Edmunds

You're right, acerfan. BMW is running a very attractive lease program on the 2007 5-Series right now. BMW's lease program for the 2007 550i is fairly attractive right now, but it is not nearly as attractive as its program on the 530i. It is difficult to say whether the 550's lease program will ever be as aggressive as the 530's. My guess is that if BMW lowers its money factors on the 550 at all, by the time that it does any enhancement will be offset by the natural reduction in residual values that happens as the model year progresses.

BMW Financial Services' current buy rate lease money factor for a 36 month lease of the 2006 530i is .00050.

Car_man
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CarMan@Edmunds

Hi KG6C. A vehicle's selling price is a very important number to have when trying to calculate a lease payment, but one also needs to know its MSRP as well. I would be happy to calculate a sample lease payment on this car for you if you let me know what the MSRP is as well as how long you want to lease it for.

Car_man
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CarMan@Edmunds

Hi twnmango. BMW's buy rate lease money factor for the 2007 5-Series varies by trim level. The lowest factor that it has on this series right now is the .00050 factor that is is currently providing on the '07 525i and 530i. This factor is equivalent to an interest rate of around 1.2%. BMW Financial Services' 24 month and 36 month, 15,000 mile per year residual values for the 2007 525i are 70% and 60%, respectively.

Car_man
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CarMan@Edmunds

Welcome mrresearch. I'm glad that you are an avid reader of these discussions. Let's work up a sample lease payment for you and see what we come up with. According to my calculations, if you were to lease a 2007 BMW 525xi with an MSRP of $49,670 and a selling price of $47,000 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $555. If you were to lease this car for only 30 months, the payment would increase to around $570.

Car_man
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CarMan@Edmunds

Hi geek4hire. What is this car's MSRP? This number will show me how much of a discount you are being given and it will enable me to use BMW's actual lease program to estimate what your car's monthly payment should be. Let me know and I'll tell you what I think of this deal.

Car_man
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CarMan@Edmunds

Here's the info that you're looking for, Acerfan. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 BMW 530i with 15,000 miles per year are a very attractive .00050 and 60%, respectively. The numbers for an otherwise identical lease of a 2007 550i are .00150 and 59%. If you were to lease either of these cars with only 12,000 miles per year, their residual values will be 2% higher.

Car_man
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geek4hire

Tax Base: 6.00%

MSRP $51,320.00
Sale Price: $49,628.00

Cap Cost $49,628.00
Residual % 60%
Residual $30,792.00
Excess Mileage Charge $1,350.00
Residual Value $29,442.00

Term 36
Miles per Year 18k
Rate 0.00050
# of Additional Sec Deposits 7
Rate reduction per deposit 0.00007
Discounted rate 0.00001

Amount of Security Deposit $650.00

Lease Charge $0.80
Monthly Depreciation $560.72
Base Monthly $561.53
PA Tax $50.54
Total $612.06

kyfdx

Is this an actual quote? The reason I ask... I've heard that the lowest MF that BMWFS will write is .00005.. If that is the case, you might have to restrict yourself to 6 extra deposits, giving you a MF of .00008... That will only add $5 or $6 to your lease payment..

Another note about 18K mi/yr.. Are you sure you will use all of those miles? You are paying $0.15/mi.. About 2/3 of the way through your lease, you can buy additional miles from BMWFS for $0.16 each... Even if your mileage is only 250 miles less per year than 18K, you'll save money by waiting.. You can even amortize the amount over your remaining payments.

Just curious..
kyfdx
(not the host here)

lewh2

Hello Carman

Is it possible to apply the reduction for 7 MSDs to the Novemer MF for the 525i lease? If yes, this would reduce the MF to 0.00001 (or essentially zero). (Calculation: .00050-[7 X 0.00007]= 0.00001)
Thanks.

pesagent

Car Man,

I am in negotiations with a dealer in Louisiana for a 2007 530i w/ Prem. Pkg, Navigation, Auto Trans, Sunshades, and heated seats.

MSRP - $54,145
Invoice - $50,045
Tax Rate - 9%

Latest Offer:
Cap Cost - $53,445
Residual - $32,667 (61.12%)
Money Factor - .000785
36 Month Lease w/ 15K miles $954 Down including first payment and 35 payments of $728.

I know the MF is a little off the bottom and the Cap Cost is $3400 over invoice. How much wiggle room do I have? Also, how much lower is my note by adding a security deposit? Thanks, for this site it really sheds a light in the darkness of auto leases.

jagoo

Hi there,

The special lease deal on the 530i with the .005mf for 36 months and 15k miles a year. How does one qualify for that? do you have to put down lots of security deposits and what is the required credit score/

Thanks

geek4hire

That was an actual quote, but I was told the same thing about the number of security deposits from a competing dealer, the actual payment I'm getting is closer to 619.

Also, That's a really good point about the miles, and I'm going to take advantage of that.

geek4hire

I did just that.

tinoco

Hi Car_Man,
Sorry for the incomplete information. Well, this is the latest offer I have on the table.. Selling price is $52,621.00 (msrp of $55,270.00) the monthly payment comes to $575.00 pre tax. Tot. initial payment of $2,294.74 - no down payment. - the car is a 530i - 3 yr. lease at 12k

Thanks a million for the great advice you provide to consumers such as myself, I wouldn't know anywhere else to go for advice of this type, this really is a very valuable outlet.

twnmango

Hello CarMan,

I know you've always recommended that NOT TO put any downpayment up front, just in case your car gets totalled or in a accident, the consumer will never recover the downpayment.

I'm thinking about putting down 7 additional Security Deposits (to lower the MF to 0.0001), altho this money is "refundable", do you think this is a smart thing to do? Is this money fully refundable in the case the car gets totalled?

I have no problem putting down $6000 of "refundable" deposits up front, as long as I know the money is protected and its the smart choice.

Tks!!

smith000

I live in Dallas and am gonna shoot for 1k over invoice on a 530i. Is this too optimistic? Anyone have any recent experience in the market?

What is the acquisition fee from BMWFS? $625 or $825?

tayl0rd

I keep reading in here that it's $625 and you should basically refuse to pay anything higher.

be02939

Tinco are you in CA, by chance? If so, would you mind emailing me your dealer's name? Thanks a lot.

oneon3putts

Ok, I just got the confirmation for the following lease deal:

15K/36 month lease 60% residual

MSRP $60,040
Invoice (Including $380 MACO) $55,785
MF (7 SD) 0.00008
Inception $825
Markup $520

Buy Price $57,130

Monthly including CA tax $647.66
Refundable Security Dep $4,550
Due At Signing $5,631.66

The due at signing includes $432 license & reg and 1st month payment. Is that a pretty average deal in SoCal? Can I do better? This was done with the GSM, and confirmed in writing. I think the dealer basically made $1,100 including MACO. I'm going in on Monday...Any advises?

Thanks,
JH

tinoco

Yes, I am in California - The dealership is Crevier in Santa Ana, - the sales person is Scott N.

tinoco

Hi JH,
Can you tell me where in SoCal? and the name of the dealership... sounds like a good deal to me.

oneon3putts

Email me and I'll email you the dealer after i sign my deal on Monday.

tinoco

I am not able to email you since I don't have your email address..

candyman3

Info Junkie, I live in Dallas too. Currently trying to close
on similar deal, although I was thinking $1500 over invoice. With the new reduced MF they may be less willing to negotiate below MSRP.

Can you let me know what you're able to work out?

pesagent

Jagoo,

I was just told by my salesperson that in order to get the .0005 MF I will have to put down at least 1 Security Deposit. Although, I am not sure how true that is.

My current offer from the dealer has gone down on a 530i to $701/month for 35 payments and 1st payment of $1695 including a Security Deposit. 15k Miles. MSRP of $55,345. After looking at some of the other post it looks like I should be able to go lower, but not sure. I am Looking to finish up this deal within the week.

smith000

Where are you at in the deal? have you gotten them to 1500? You dealing with Autohaus, Moritz, Dallas, or Classic?

pesagent

How long does it normally take to negotiate these dealers down to a reasonable price? Maybe this is better, how do you know how far to push them? Hours, days or weeks hopefully not months.

craigf14

I have been dealing with Classic in Richardson, Texas. I have only been able to get them to come $1,470 of of MSRP. I am looking at a 530i with Premium Package, Sport Package, Auto trans, Navigation and heated seats. Total MSRP is $56,470. I have been quoted a monthly payment of $793 with a first payment and a $750 security payment down. This is for 15k per year, a .0009 MF, 60% Residual, and 36 months.

I was hoping to get down to $700 which could be done with some combination of $1,000 over invoice, no acquisition fee and at least some partial tax rebates.

Three questions:

(1) How much above invoice should I be able to get them to come down to?

(2) Is the $825.00 acquisition fee required? Seems to me like they are double dipping with this fee.

(3) Shouldn't there be some tax rebates available. I have received tax rebates on the two other cars (not BMWs) I have leased.

Thanks in advance for any help.

tdbrph

They are marking up aquisition by 200 it is typically 625 and money factor is being marked up. Buy rate MF is actually 0.0005 which can be brought down to 0.00008 with 6 security deposits. I think you can do much better than the quote you were given. I am actually trying to decide between a 335i Sedan and a 530i myself. The lease incentives on the 530i provide a strong incentive to pull the trigger.

Good Luck
Triston

craigf14

Trinston:

Thanks. Any idea if any of the Dallas area dealerships are offering tax credits. I know with my previous two leases that full and partial tax credits made a big difference on the payments.

0audilicious0

Got the following quote on a 530i today:
12K/36 month lease 62% residual
MSRP $54,820
Buy Price $52,820
MF 0.00105
Total drive off $3500 (incl. 1st payment, registration, tax)
Security deposit $0
Payment $582 + 48 tax = $630

Thanks.

dylan77

i have decided to order a 2007 530 ( about six weeks )
can i expect to get a similar price to that of a car in stock. currently, they are at around 1000 above sticker here in los angeles. i have not told them that i intend to order the car yet. also, should i order from germany or from the u.s. thanks car man, your input on this site is very much appreciated!!!

tinoco

$3,500.00 sounds like is too much to pay upfront. Are you in SoCal? I am working on a deal right now with an MSRP if $55,270.00 and currently my payments would be $566.23 + tax with only $1,960.00 drive off..

candyman3

What are tax credits? Where do I find out more?

candyman3

Smith000, I've been working with Classic. Just started talking to them, an they've offered $1K off MSRP, without any pushing. I may have mistyped in the original post, I would guess $1500 off MSRP would be the best you could do, but was just a guess on my part. Was hoping someone in Dallas could give better guidance..