BMW 5-Series Lease Questions

jabber

Probably not the best way to negotiate a lease...do a bit of research and know how a lease payment is calculated and then negotiate the variables within that equation. There are plenty of messages on the forums here that show how a lease payment is calculated.

CarMan@Edmunds

Hello Lam. Here is this car's latest lease program. This car's numbers will vary by term and mileage allowance. You never mentioned what either of these variables are, so for now I will assume that you are interested in a 36 month lease with 12,000 miles per year. Let me know if you want something different. BMW Financial Services' October buy rate lease money factor and residual value for a 36 month lease of a 2008 550i with 12,000 miles per year are .00245 and 61%, respectively.

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CarMan@Edmunds

Here's the information that you're looking for, njdriver1. BMW Financial Services' new October buy rate lease money factor and residual value for a 36 month lease of a 2008 535xi Sedan with 12,000 miles per year are .00225 and 60%, respectively. In September, BMW was providing a .00045 reduction in the 2008 5-Series' money factors for returning BMW FS lessees, but I haven't heard if this loyalty promotion was extended for the month of October yet.

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CarMan@Edmunds

Hi mmoreno1978. I see that you are considering trading in one of your current cars when you lease your new one. There's nothing wrong with doing this, but it would be in your best interest to have the dealer that you are working with cut you a check for any equity that you have in your trade rather than using the proceeds from it as a down payment for your new lease. I always advise consumers against making large down payments on leases. Those who make them risk losing them if their vehicle is totaled in an accident or stolen and never recovered.

The best way to get a good deal on the 535xi that you want to lease is to shop around for the lowest possible selling price and then have the dealer that gives it to you calculate your lease payment using its buy rate lease money factor (.00225). Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series Prices Paid and Buying Experience".

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CarMan@Edmunds

Hi topspin628. I believe that BMW's October lease program for the 2008 5-Series is exactly the same as it was in September. I would be happy to provide you with the exact October program for the car that you are interested in if you tell me what it is.

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topspin628

550 with sport package.
If you can let me know the Sept program (non-loyalty) MF and residual vs the Oct. program. Also, if any incentives were announced.
Thank you very much.

yatze

I paid for a 36 month 15k/year lease. My driving habits have changed and after a year and a half, only have 10,000 miles and plan to drive less than that over the next year so will have around 20K, if that, when I turn it in. My lease is up 3/09.

I love the car, would it make any sense to buy it with such low mileages or to have a new lease/car? I put down almost 6000 in multiple security deposits.

My leasing friends say I would be crazy to buy it, and that the maintenance on a BMW is very high. And with buying the additional maintenance which the dealer tells me is $6000 I would be better off getting a new lease car. What do you think? I was thinking I could keep it for a few more years and then sell it with still low mileage. Any other alternatives?

Thanks.
Yatze

carnaught

You're much better off leasing a new car, having the advantage of driving something new with the new car warranty. Buying the car at lease end comes out to a much less favorable deal.

BTW, BMW is one of the few, if only car company's, to reimburse you $.15/mi. for unused miles of your lease agreement at the time of lease turn-in.

topspin628

My dealer told me that it's not allowed in NY. Is that correct?
Thanks.

kyfdx

Wait until you are close to the end of the lease to make that decision... Then compare the buyout to the value of the car at that time...

Since your mileage is low, you will have another year left under the warranty and maintenance plan..

regards,
kyfdx

kyfdx

Correct.. I think NY restricts security deposits to $750.

I have heard of NY residents who have purchased from New Jersey dealerships, and have been able to do MSDs. That didn't make sense to me, but more than one person claims to have done it, so I tend to believe it.

regards,
kyfdx

hpowders

Is it true that BMW reimburses for unused mileage at lease end? I never had that happen on 3 BMW leases-all returned under mileage limit.

The only thing my dealer does is waive the disposition fee for assuming another lease with them.

kyfdx

I've never heard of being reimbursed for any of the base mileage in the lease contract (say, for being under your 45K mileage allowance).

However, I've heard if you buy extra miles during your lease (@ $.016/ea.), then you can be reimbursed, if you don't use all of them. No personal experience with this, though...

carnaught

Is it true that BMW reimburses for unused mileage at lease end? I never had that happen on 3 BMW leases-all returned under mileage limit.


Well, I got my check after my last lease and the deposit waived on my current lease.

Hmmm, maybe you're owed some money, or, is this something new since you last leased?

hpowders

I will call BMWFS and ask. Maybe I will say my name is Mr. Carnaught.

Thanks.

hpowders

I will have to check with BMWFS.

Maybe it's something you have to ask for, like getting the $625 acquisition fee that dealers feel they have a right to automatically mark up to $825.

Thanks.

richardga73

My leasing co. (Not bmwfs) has offered me to pay off my car. The price was somewhere between wholesale and retail, about 1/2 way. They said they are not in position to negotiate on the price because they said that they have some sort of insurance that covers any loss in what they get for the car. But for the insurance to kick in the car has to be rejected by the dealer to purchase and it must go all the way to auction and take a loss. A loss, which would be what they have in it now could not take place between me and them. Does this sound like bs or have any of yall had the same occurance?

kyfdx

If you paid for "extra miles", above the maximum 15K/yr mileage allowance, then you may have been reimbursed for that unused portion of those miles.

BMWFS doesn't pay for unused miles below the standard mileage allowances (10K-12K-15K per year).

regards,
kyfdx

godfather9

I have a question about releasing. I have a 2 year lease coming up (thanks to this forum I got a great deal!!!) In looking at my options, I noticed I have the ability to lease the same car again. Questions, First how would that work- can I negotiate the price of the car again even though the residual was set at the first lease and are the money factors the same as leasing a new car right now. Second question, if I decide to buy the car, can I negotiate the price for that.

Thanks for the help, this website has been great!

godfather9

Sorry one more thing, I am over my lease miles, how will that affect either one of those scenarios?

Thanks again

carnaught

If you paid for "extra miles", above the maximum 15K/yr mileage allowance, then you may have been reimbursed for that unused portion of those miles.

BMWFS doesn't pay for unused miles below the standard mileage allowances (10K-12K-15K per year).

My dealer indicated that BMWFS does pay for any unused miles from the contracted no. of miles. In my case, I contracted for 18,000 mi./yr. which I was about 600 mi. under.

kyfdx

That is exactly the situation that I described. The highest standard mileage allowance that BMWFS has a residual percentage for is 15K/yr.

If you contracted for 18K/yr, then each additional mile has a dollar value. Those are the miles which can be reimbursed.

If you had contracted for 15K/yr, and were 600 miles under, you would have received no reimbursement.

regards,
kyfdx

hpowders

I hung up with the guy still laughing.

Definitely no re-embursement for normal unused miles on a lease return contracted for 10k, 12k or 15k miles per year.

carnaught

I hung up with the guy still laughing.

Definitely no re-embursement for normal unused miles on a lease return contracted for 10k, 12k or 15k miles per year.

Huh...there ya go.

sdhill

Make: BMW
Model: 5-Series

Trim: 4.8L 8 Cylinder Engine
4dr Sdn 550i RWD
Trans: Automatic
Color: SPACE GRAY MET./GRAY LEATHER
Year: 2008 (New)
Price: $71,195 (MSRP)

I am looking at the above. I have never leased b/4 and also never neg. price with BMW dealerships. I have heard you can negotiate. I just would like feedback as to how far to "push the envelope" if you know what I mean. I have driven Yukon Denali's for the past 7 years and my father works for GM so neg. price was never a factor in the purchase. Can you please offer advice and what number (dollars) should I expect? This is in NC. What about the MSD? Being new to leasing I am a nervous wreck. Thank you.

joelk01

Just do your homework. The negotiations are pretty much the same as when you buy a car. The first thing you do is negotiate the price. In leasing parlance, this is know as the cap cost. Negotiate the cap cost just like you would the price of the car when you are buying it. Tell the dealer that you are indifferent to buying or leasing so they focus on the price of the car and not the monthly payment. Arm yourself with the invoice costs, money factor, and MSRP - all are available on the net. THE DEALERS WILL NEGOTIATE - if they dont, leave. There are other dealers who will. Also, understand the math behind lease costs - all of which are also well documented on the net. When the dealer gives you his price and then the lease payments, tie out. If you cant replicate their numbers, ask them to explain how they got their numbers. The math is simple, so tying out should not be an issue. Also, ask for detailed closing fees and charges. You want an itemized list of exactly what you will need to pay at closing. Tell the dealer that you will put him in competition with other dealers. Then leave. Take his numbers and ask others dealers to beat them by some reasonable amount - say $300. Anyone that gives you a competitive price deserves the right to beat the deal you currently have. At some point, there will be one dealer standing. That is your horse.

sdhill

Thank you... a few questions if I may.

Do you know the money factor in NC?

If not, where will I find this information out?

Where will you find the invoice price for the referenced vehicle?

Thanks again, S

joelk01

Do a little research on the internet. Not hard to find.

bradcarter

you can find the money factors, residuals and lease payment calculations at the following link (make sure to scroll down - the formatting leaves blank space at the top of the page): http://forums.roadfly.com/forums/financing/.

you should be able to negotiate a price approx $1500 over invoice, or maybe better. you can find the invoice price on the primary Edmunds site (which I assume is how you reached this board).

sdhill

Thank you. I was told by the salesman yesterday that MSD was no longer in place. Can anyone confirm that?

tayl0rd

I'll confirm it. I'm in NC and my local BMW dealer also said they don't do MSDs. That was a couple of years ago. I thought they were trying to pull a fast one. Guess not, unless you're going to the same dealership.

godfather9

Just wondering if anyone had some insight here. Thanks

kyfdx

The MSD program is still there... Possibly NC has some sort of regulation that doesn't allow it, like NY?

Or, maybe it is just a lazy dealer....

regards,
kyfdx

alex123

Car man,

Based on your info 3 years ago I was able to get pretty good deal on my 530i, thanks. Now my lease is about over can you verify that:
BMW FS October lease for a 36 month lease of a 2008 550i with 12,000 miles per year are .00245 and 61% and 10,000 miles 62% also I've heard that new loyalty program is 45 basis points for 535/528 and 65 for 550, is that correct also?

Alex

tmacdonald

Car man, et al. I have two questions that I hope you can help me with:

1) What is a reasonable rate to contract additional miles beyond the 15k allowed by BMWFS?

2) Are these numbers right for a 3 year lease in October (March ED pick-up):

MF = .0021 + .0003 (ED) - .00045 (loyalty) = .00195
Residual = 60% for 15k

Thanks!

godfather9

Just reposting my original since I did not want to get it lost in the shuffle and there was no response yet- thx

I have a question about releasing. I have a 2 year lease coming up (thanks to this forum I got a great deal!!!) In looking at my options, I noticed I have the ability to lease the same car again. Questions, First how would that work- can I negotiate the price of the car again even though the residual was set at the first lease and are the money factors the same as leasing a new car right now. Second question, if I decide to buy the car, can I negotiate the price for that.

Also I am over my miles, how will that affect the release processes

Thanks for the help, this website has been great!

525i

Im interesting to lease 07bmw 525i this month or november
MSRP $44.195
36 months
0 down,I will pay just first payment and SD(Do I need to pay acq fee?)
15m/year
Do not know what is money factor,can somebody help me cause see here is a lot people they did lease before and this is my first time to to this.
What is gonna be my mnt pmnt based on 36mnt,15miles/year,0 down,just 1st payment and SD(acq if need to pay that).I m not sure what is residual value,it should be around 60%
Thank you guys very much
Appreciate it

denver_bmw

Hi,

I didn't think that BMW still offered the 525i - probably the 528i now. Money factor is equivalent to an interest rate essentially. When you are leasing you are paying both to rent the car and also to pay interest.

One bit of advice is you might check out swapalease.com

I have a 530xi I picked up there - quite a bit more horsepower than the 528 and probably cheaper.

525i

Just got a message from internet department and the guy told me that they do not have no more 525i.Just 08 528i
He said lease is based 1000 over INVOICE.Offer me this numbers
36mnt 15.000miles/year
1750 down(did not say what is this,but probably first mnt pmnt and SD,dmv feez)
698$ monthly payment?
IS this good.What do u guys think.Where is CAR MAN now...

dark_katana

You have to tell us what options you are getting with the 528i in order for us to advise you as to whether or not its a good deal.

To review, in order to compute the true cost of a lease you need three numbers: (1) the Net Capitalized Cost (i.e. purchase price including options and fees less any down payment); (2) residual value (value of car at end of lease term); (3) money factor (interest).

Some dealers will add the lease acquisition fee (bank fee for originating lease) into the Capitalized Cost, others will break the fee out as a separate charge. Regardless, most will include that fee in the initial down payment.

Any security deposit is an additional amount which will also be included in the initial down payment.

Sales tax on the vehicle (usually only on the amount of your depreciation depending on state) can be separately paid or rolled into your lease payment.

To convert a lease money factor into a rough approximation of APR Interest Rate, multiply the money factor by 2400 (even if your lease term is longer than 24 months.)

You can figure out what your Capitalized Cost should be by pricing your car with options using Edmunds TMV. A previous poster posted this site http://forums.roadfly.com/forums/financing/8651672-1.html
from which you can obtain the money factor and residual values for BMW Financial Services leases for October.

Once you have all your numbers, it's time to whip out your calculator and use the following formulas(refer to http://www.leaseguide.com/lease08.htm):

Depreciation Fee = ( Net Capitalized Cost – Residual Value) ÷ Term
Finance Fee = ( Net Cap Cost + Residual Value ) × Money Factor

Total Monthly Lease Payment (assuming taxes paid separately) = Depreciation Fee + Finance Fee


How'd I do CAR MAN?:)

525i

It makes a point.
Just calculate and it is right.
Thnks
Car man is not here still:)

mermarky

If I trade-in my car with dealer that I'm going to lease my new car. And assuming that they give me trade-in value equal to pay-off amount, do I get any sales tax credit on that? ... in state of Texas of course

richardga73

Guys, does the bmw loyalty program mean someone who is leasing now or can it be someone who purchased a bmw in the past?

camil

Car man-

I am currently leasing a 2005 BMW 530, and would like to get into a 2008 535. Dealer has offered a price on the 535 of 56638 versus MSRP of 59270. What lease payment based on 36 month, 15K annual miles, should I be looking for? My $700 security deposit on existing lease would carry over.

Camil

carrerah

First time using this site and have seen your posts regarding lease rates. Could you please provide the buy rate money factor and resdiual for a 535i:

36 month 15K miles delivery in Northern California. Top tier credit, not a current BMWFS customer.

Thanks for sharing your info!

rster

Hi Experts !

I've been offered the following deal in edison,nj and want to verify if I'm getting a good deal or if I should
shop some more.... Ive been shopping around for more than 2 months, and i think deal is a solid one...


2008 550i
MSRP $70620 (don't know selling price)
$1700 drive off(dealer waived doc fee) plus THE 7 Multiple security deposits of $900 each. so the grand total of $8000 from which $6300 are refundable MSD's.
36 months
12K miles
$880 month (NY tax included)

Thanks for your help,

lovemyclk

Don't know your cap cost and you are putting $8K on a lease?? Doesn't sound like a great way to begin your BMW relationship! Your money is tied up in a leased vehicle - would purchase if you want to invest that sort of money... IMO.

thegre8tone

They're not putting down 8K on a lease...It's multiple security deposits...They bought down the money factor which equates to about a ~9% rate of return before taxes over the life of the lease...$6300 is returned at the end of the lease. Definitely would not purchase that car since the F10 will be out within the next few years...Therefore driving down the value of the e60 even more.

BTW, it sounds like a pretty good deal to me...Good job on using the MSD's...

lovemyclk

So, who holds on to the money over the term of the lease? What was the cap cost?

jmcmbz

I was told by my dealer that the loyalty program is for current BMWFS customers OR those who's financing has been within the past 6-months. Does anybody have NOV Lease rates yet?