By accessing this website, you acknowledge that Edmunds and its third party business partners may use cookies, pixels, and similar technologies to collect information about you and your interactions with the website as described in our
Privacy Statement, and you agree that your use of the website is subject to our
Visitor Agreement.
Comments
I am getting the same MF and residuals (note the 528i 24 month residual is better than the 535i. At 36 months, they are the same. This was a big factor in me deciding on the 528i).
I decided to use the $1000 as a cap cost reduction...I did the monthly payment both ways and it saved me $1150 over the lease vs. $1000 up front.
I am not a current customer, no issue utilizing the incentive.
I finalized this deal today. After dealing with 5 dealers on a vehicle that none of them had on their lot (I found that to be advantageous)
528i, auto, sport, premium, sirius, xenon, rear seat fold down
msrp $52045, invoice $48285, deal price $48825.
Lease, 24 months, 10k miles. Using bank rates of 0.000225 and 76%
ACQ of $625 rolled into the cap cost and the $1000 BMWFS incentive/rebate reducing the cap cost.
total up front at $1800...so $600 1st month, $600 security deposit, $299 doc fee.+misc title etc This left $181...which they used as cap cost reduction. This ended up this way because at the end since I knew the price was good, I asked for $600/mth with $1800 down. Fixing the $1800 down ended up having money left over to reduce the cap cost and help the payment. This was part of the reason they could get to $600 as that was $181 they didn't have to lower the deal price.
Final cap cost of $48269
I actually ended this at $610 with $1800 down at a different dealership, but the 2nd to last dealership ($612/month..haha) actually initiated the dealer transfer of the car BEFORE I approved their deal. So I found this out and I made them meet my initial offer of $600 or I was going to find another car. They hit it.
In the end, I was pretty pleased with the process and amazed at the ruthlessness of the dealers...they all wanted this business, bad. To put this into perspective, my first offer on this car was $717 with $1500 down
This dealer is even sending a driver in a BMW to pick me up, go to the dealership (I am not trading in a car), then drive away. And a $50 Carrabbas gift card since he noticed I was perturbed over his snatching the car from the other dealer. Yea, this deal looks 'barebones' but he is obviously making money.
Compare that with the residual I was offered on the new Infiniti M45x on a 24 month lease/12000 miles per year--65%
Enjoy your car, you've earned it.
I will make one comment on the other lease deals out there. A lease price is obviously just a depreciation amortized over time with a set interest. I find that some automakers UP the residual but have less attractive interest rates. While others have bad residuals for good interest rates...thus getting similar payments.
BMW takes the high residual approach..their money factor of .00225 isnt great..comes to about 5.4% interest...while Lexus is offering 2.4% interest or less, but their residuals are MUCH lower...making for a larger amount financed, thus the same or higher payment.
We never got past the test drive on the Infiniti M35, so I dont know if their money factor was attractive given their poor residual, but I would predict it.
Your deal prompted me to run a dollar-for-dollar comparison between lease programs and the upshot is that BMW gives you almost $10,000 more car than Infiniti for the same payment. Bad news for my Infiniti dealer whom I just informed would not be seeing me on Friday when I was supposed to come sign my paperwork and pick up a new M45x.
BMW 535Xi here I come!
2008 BMW 528i Sedan
24 Month – Residual 73% of MSRP – .00225 Base Rate
36 Month – Residual 60% of MSRP – .00225 Base Rate
48 Month – Residual 42% of MSRP – .00305 Base Rate
60 Month – Residual 34% of MSRP – .00305 Base Rate
2008 BMW 528xi Sedan
24 Month – Residual 71% of MSRP – .00225 Base Rate
36 Month – Residual 60% of MSRP – .00225 Base Rate
48 Month – Residual 42% of MSRP – .00305 Base Rate
60 Month – Residual 34% of MSRP – .00305 Base Rate
2008 BMW 535i Sedan
24 Month – Residual 71% of MSRP – .00225 Base Rate
36 Month – Residual 60% of MSRP – .00225 Base Rate
48 Month – Residual 42% of MSRP – .00305 Base Rate
60 Month – Residual 34% of MSRP – .00305 Base Rate
2008 BMW 535xi Sedan
24 Month – Residual 70% of MSRP – .00225 Base Rate
36 Month – Residual 60% of MSRP – .00225 Base Rate
48 Month – Residual 42% of MSRP – .00305 Base Rate
60 Month – Residual 34% of MSRP – .00305 Base Rate
2008 BMW 535xi Wagon
24 Month – Residual 70% of MSRP – .00225 Base Rate
36 Month – Residual 60% of MSRP – .00225 Base Rate
48 Month – Residual 38% of MSRP – .00305 Base Rate
60 Month – Residual 30% of MSRP – .00305 Base Rate
2008 BMW 550i Sedan
24 Month – Residual 69% of MSRP – .00305 Base Rate
36 Month – Residual 59% of MSRP – .00305 Base Rate
48 Month – Residual 36% of MSRP – .00305 Base Rate
60 Month – Residual 28% of MSRP – .00305 Base Rate
2008 BMW M5 Sedan
24 Month – Residual 70% of MSRP – .00305 Base Rate
36 Month – Residual 57% of MSRP – .00305 Base Rate
48 Month – Residual 43% of MSRP – .00305 Base Rate
60 Month – Residual 34% of MSRP – .00305 Base Rate
In addition, BMW is offering a $1000 incentive on all 5-Series except M if you take delivery by January. That means the incentive is not available for special orders or European Delivery, but that's not going to concern too many of us.
The cool automatic shifter in the 5-series sells itself! hahaha
Thanks,
Ken
it is replacing the owner loyalty program this month....but apparently you dont have to be a repeat BMWFS to get it.
Trust us on this
It's being discussed on all the BMW enthusiast sites because it replaced the prior Loyalty Program which gave the $1000 only to BMW owners with current leases. Also, it's not a cash incentive in the sense that you can't elect to get it in cash (like with say, GM). It's $1000 BMW gives to the dealer that the dealer will automatically take off your final negotiated price.
Oh, and if you think the standard automatic in the 2008 5-series is cool (truth be told, I'm not crazy about it myself) you owe it to yourself to beg borrow or steal a drive in the 535i or 550i with the sport automatic transmission. Insanely fun.
The only reason I considered the M45 was because Infiniti was going to pay my last four lease payments on my existing lease. I've come to my senses now, and its just not worth it. I'd rather buy my own way out of my current lease and lease the car I really want thanks to BMW's awesome residuals.
528
Premium pkg
Nav System
Sirius
24 months/12,000 miles
$646 per month (plus tax)
1st, security, tag and dealer fee to start (about $1800)
Allegedly this represents $2500 off the MSRP.
Thoughts?
Add 2% for 12k, 3% for 10k...e.g. 528i, 24 month, 10k miles is 76%
I used the following info:
There is a $1000 rebate/incentive (that should be put on AFTER you negotiate the final price). But you said $2500 off...and I am assuming your dealer is including the incentive in that. I rolled in an average $725 ACQ fee ($625 is minimum).
Residual is a fixed 75%.
Given this, I get $637 without tax...to get $646, I need to up the money factor/interest from 0.00225 (bmw buy rate) to .00235..since it worked so perfectly at that .00010 upcharge, it is probably true.
Here is what I would suggest. However, doing this will require multiple dealers bidding. Get the PRICE negotiated first. I would recommend $47k price give or take. $625 ACQ fee. using BMW MF of .00225. THEN apply the $1000 rebate to the cap cost, you get a payment of : $573 + tax.
Good Luck.
It looks like they are simply applying the $1000 dealer incentive discussed already on this forum to reduce the payment.
In any case, the December 535i $579/month lease deal on the BMW Website is a stripper with the only option being the automatic transmission--a no charge option on the 2008 5 series.
535xi
Premium package
Cold Weather
Comfort Access
Logic7 sound
Sirius radio
Navigation
iPod intergration
MSRP = $60,320
I'm putting down $8000 at signing and my monthly will be $630 for 36 months at 12K miles per year. That includes all taxes and fees. Total pament over 3 years equals $30,680
Thoughts?
You like to give them money?
$8k at signing is a lot of money. You would do better putting that into an interest bearing account and drawing from it for payments rather than giving it to them.
Regardless, there are many more details needed to evaluate the deal.
Sales price of the vehicle
Acquistion fee - typically rolled into the lease
Other fees such as Documentation fees (typically up front)
Ask what Money factor and residual they are using
Then we can check the payment and verify if they are applying the $1k incentive.
I'm wondering why we need to know all this when we have the final out-of-pocket number of $30,680 for 36 months? Shouldn't that be enough to determine if this is a good lease deal?
Thanks for the replies!
I got a 528i MSRP of $52045. Lease at $600/month, 2 years, 10k miles. $1800 up front including 1st payment, security, fees.
MSRP: $60,320
Selling price: $57,905
Acquisition fee: $825
Money Factor: 0.00245
Residual: $37,398.40
Down payment: $8000
Monthly payment: $630 (includes taxes)
36 months / 12K miles
Is this a good deal??? Thanks.
The price is pretty good. $2415 off. I just got a 528i at $3200 off. You decide if that is fair.
The $825 ACQ fee is marked up $200
The .00245 money factor is marked up from .00225 (that is worth about $20/month in this case..or $740 over the 36 month lease)
Now this gets tricky. Is the $8000 down the total up front? My calculations show from above you need all the $8000 to get that lease price if your sales tax is 7%.
Up front you typically have doc fees (300-500), 1st month and security deposit...oh, and sales tax on the cap cost reduction. ($560 is 7% of $8000).
Personally, I would do these two scenarios. Both put the money factor back to 0.00225 and ACQ fee to $625. Reduce the sales price to $57500. Also, there is a $1k incentive on all 5-series right now:
$0 money down (upfront would be doc+1st month+security+title): $814/month.
$8000 money down (same upfront above + sales tax on $8000): 557
Jim
Without knowing all your options, it's hard to know how good your actual selling price is but you should try to get to a selling price of about 2% above invoice. You may not get there, but that's the target.
As to the lease itself, the December 2008 Lease Rates on a BMW 535xi for 36 Months/12K per year is Residual 62% of MSRP – .00225 Base Rate
The residual for your deal is dead on, but the money factor is pretty high--works out to approximately 5.88% per year vs. 5.4% at factory Base Rate.
The acquisition fee (or inception fee) of $825 you are being charged is the maximum BMWFS allows, $625 is what BMWFS charges and that's all you should pay.
Also, I think it is a very bad idea to put down as much as $8000 on a leased car. I think it is a particularly bad idea to put down that much and then roll taxes into the monthly lease payment--you don't want to pay interest on taxes. (By the way, what is the tax rate and what part of the lease is taxed in your locale?). I am a strong believer in only putting the bank fee, security deposit, taxes and first month's payment down on an auto lease in order to take maximum advantage of the factory subsidized interest rate.
If you have that much money to put down on a BMW lease, I strongly advise you to read up on BMW's Multiple Security Deposit Program whereby you reduce the money factor on the lease by making multiple security deposits that you get back at the end of your lease. Under the current program, you can make up to seven additional security deposits and reduce your money factor 0.0007 per payment.
Read all about the MSD program here:
http://www.bimmerfest.com/forums/showthread.php?t=134206
Hope I've been helpful. Good luck!
It is nice to have people like you out there.
"The numbers that I gave you include the 1000 from BMW (so the total
due at signing would be 9000, but with the 1000 from BMW it is brought to
the 8000). I can not reduce the numbers in any other way.
The fees are the way that they are. My financing department needs to make
some money too. They don't sign the paperwork for free. The selling
price of the car is as stands. I can not do anything else."
So would you walk and start the process again with another dealer?
"The numbers that I gave you include the 1000 from BMW (so the total
due at signing would be 9000, but with the 1000 from BMW it is brought to
the 8000). I can not reduce the numbers in any other way.
The fees are the way that they are. My financing department needs to make
some money too. They don't sign the paperwork for free. The selling
price of the car is as stands. I can not do anything else."
So would you walk and start the process again with another dealer?
IMHO......walk away.
Now, email 4 other dealers and reference the car at the first dealership. They can find it and quote it.
Patience and some work will reward you.
24 Month – Residual 71% of MSRP – .00225 Base Rate
36 Month – Residual 60% of MSRP – .00225 Base Rate
48 Month – Residual 42% of MSRP – .00295 Base Rate
60 Month – Residual 34% of MSRP – .00295 Base Rate
Residuals are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms.
Now tell us the Capitalized Cost. That is the negotiated price of the car. It is basically the Invoice Price plus Dealer Markup.
It sounds to me like the implication is the dealer is selling you the car at MSRP and then taking $3591 off in the form of a check to you for your remaining lease payments. Check Edmunds for the Invoice price including all your options. I get $53,775 invoice including all the options you listed. The spread between the invoice price and your Capitalized Cost is the most important indicator of how good your deal is. Assuming the $3591 is coming off MSRP, I think that's a pretty good deal even with the $1000 BMW incentive.
That being said, the actual lease payment sound very high. And for that reason, I'm inclined to believe that the check for $3591 is being rolled into your payments. Now it's not a good deal at all. Try and get the dealer to give you the numbers without the check to you--that makes it more straightforward.
Also, I'm confused by the dealer claiming that a lease involves no sales tax. So far as I know, every state that has sales tax charges sales tax on some aspect of the lease--be it the depreciation or a percentage of the monthly payment. If they didn't charge sales tax, nobody would ever buy a car, they'd only lease.
Finally, if you are getting satellite radio and ipod adaptor, I would strongly recommend the Logic7 Sound System (option 677). It's one of the best sounding factory systems available when tweaked right.
Are you in Texas?
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Not paying sales tax is a huge savings in Texas, as they charge tax on the entire selling price of the vehicle... the savings on a $60K car could be as much as $100/mo. on a lease.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
MSRP: $60,320 (prem, nav, logic, satellite, ipod, comfort, cold weather)
Invoice: $55,475
Selling price: $56,584 (2% over invoice - thanks dark katana)
Money factor: 0.00235 (down from .00245. Base rate is .00225)
Final money factor: 0.00186 (used 7 multiple security deposits which reduced the rate by .00049 (7 x .00007)). I get the deposits back at end of lease = 10% ROI per year and no taxes on the deposits - again, thanks dark katana.
Residual: $37,398 (62%)
Acq fee: $825 (could not get them to come down to $625)
Terms: 36 months / 12K miles
Cash due upon signing: $6917 (msd x 8 = $6000, + title fees = $111, + doc fee = $58, + 1st month payment = $748.74). I get the $6000 back at the end of the lease.
Monthly payments = $748.74
Thanks to smithsonga and dark katana for getting me to walk away, arm myself with knowledge, and play the dealers against each other. They saved me thousands. This deal is a far cry from where I started. A little work and persistence paid off, and the deal still only took 1 week.
Once I get the $6000 back at the end of the lease, the total out-of -pocket for a 3-year lease = $27,124 ($748.74 x 36 + $111 + $58, the acq fee is rolled into the monthly payments). Pretty damn good for a 535xi with those options. The original deal I negotiated, which I though was pretty good, had a 3-year out-of-pocket of $30,680 + title and doc fees. So the difference comes out to $3725 that I would have lost if I did not walk away from that original negotiated offer.
On top of that, he's adding back some (but not all) of the cost of the $3500 you're getting back on to the Cap Cost which means you are essentially leasing a car that invoices for $53,775 for $59,300. It's nice that you get $3500 back, but you could have easily gotten more than $3500 off of MSRP when combined with BMW's $1000 cash incentive.
Also, the money factor is very high, equivalent to 6.24% per annum when the standard money factor on a 36 month 535i lease is 5.4% per annum.
The dealer ends up giving alot of money back to you in cash, but he would take the same amount off of MSRP (probably more) and then there would be no finance charge on the money you get back. The bottom line is that you are paying more than MSRP for this car combined with a higher money factor.
Most of this deal is MUCH improved. I noticed their doc fee is very low, so that makes up for the $200 higher ACQ fee....gave and take. Net the same for the dealer.
My only question is where is the $1000 BMW incentive in this deal? Is that how they got to that sales price? If so, they should get to that sales price and THEN remove the $1000 incentive. I cannot tell from your description if they did this.
You can run the #s through an online lease calculator to see if it all is correct.
Also, when you are completely satisfied with the deal, have it all in written that you understand and walk through it step by step in the finance managers office when you are asked to sign the contract. Be sure it is exactly as you expect. There can be mistakes, intentional or not.
After that, congrats on the Bimmer!!
I picked up the car yesterday so it is all done. Thanks a bunch.
Excellent question on MACO fees. For everybody else--MACO is a regional advertising fee dealers pay to BMWNA. It ranges from $200 - $400 dollars. There is usually very little negotiation with this number since it is a "real" cost the dealer incurs. MACO is added to the invoice price. My 2% over invoice target for Cap Cost includes MACO.
Remember that targets are just that--"targets". As in, you don't always hit them.
Need more information: What are all the options and MRSP, and the price that you are actually paying (or what your lease is based on). I assume that the 24k miles are 12k per year?