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BMW 5-Series Lease Questions

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  • macdadmacdad Member Posts: 75
    2006 525i
    24 mo 12k miles
    MF .00180
    RESIDUAL 76%
    MSRP 48665
    SELLING PRICE 47465
    black
    beige
    premium package
    automatic
    comfort access
    xenon
    sirius

    aqui. fee 625 + dep 600 + 1st mo + dealer fee 317

    after calculations mo payment is 588 + tax (6.6%)
    looking to do this today

    love the board and thank you in advance for quick response
  • jason72jason72 Member Posts: 1
    2006 525xi with premium package, xenon, auto, cold weather package.

    final price $47,500
    36 months
    12000 miles
    Money factor .0016
    Residual 62%

    Thanks in advance!

    Jason
  • tony525itony525i Member Posts: 4
    jpk37 - What is the residual percentage? Did you get the deal this month?

    It appears you got a great deal.
  • macdadmacdad Member Posts: 75
    i have some conflicting info from 2 dealers
    one says res. on 24mo/12k is 73%
    another says 24mo/12k is 76%

    what is correct
  • hpowdershpowders Member Posts: 4,331
    76% is correct.
  • jpk37jpk37 Member Posts: 2
    Tony - the residual is 60% and I got the car in November but I dont think the numbers have changed. You might want to consider the 24 month lease it looks good too.
  • tony525itony525i Member Posts: 4
    My only remaining question to anyone is if the residual rate is fixed by BMW and non-negotiable with the dealer? I am kind of sensing this as the only movement I get from dealers is on the MF and sale price.
  • hpowdershpowders Member Posts: 4,331
    The residual is fixed and is non-negotiable.
    Only the money factor and selling price are negotiable.
  • dl7265dl7265 Member Posts: 1,381
    525i $42,500 ED invoice $35,970
    ft 695 695
    step 1275 1210
    44,470 37875
    +1200 dealer

    24/76% $396.49 plus tax$6.25% 24.78=$421.27 pmt
    total lease $10,111-$1000.00 BMWCCA membership $9,111.00

    what am I missing ?
    DL
  • kyfdxkyfdx Moderator Posts: 266,994
    In Texas? You pay sales tax on the entire purchase price... In this case.. about $40K X 6.25% = $2500..

    Amortized over a 24 month lease, that is over $100/mo. just in sales tax.. Giving a payment closer to $500/mo.

    regards,
    kyfdx
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  • mixedbagmixedbag Member Posts: 1
    Hi Carman and Kyfdx,

    I am currently looking at a lease on:
    2006 BMW 530i
    Automatic
    Premium Package
    #06-2237

    Inception due at signing: $3619
    Refundable sec. deposit $2500.00
    Cap cost reduction.24 month closed end lease

    10K mi/yr;20 cents thereafter ttl payments $12,456.00
    Price includes all costs to be paid by consumer except for licensing, reg. fees & taxes. The mileage is pretty much dead on what I will use.

    Advertised payment is $519.00 mth.

    Is this a good deal? What other information should I have before going through with this?
  • mike240mike240 Member Posts: 1
    Dear Car_man and kyfdx -

    First of all, wonderful forum... your insight is greatly appreciated.

    I wish to lease either a 530xi sedan or wagon for 24mo/15k. What are the current money factors and residuals for these 2 models and when do they expire? Also, I have leased through BMW financial, so how are security deposits potentially factored?

    Many thanks
  • rangerexcrangerexc Member Posts: 3
    Does anyone have the December residuals and money factors for 525i and 530i for a 24 month lease with 12,000 miles per year?

    Thanks,
    Brad
  • hpowdershpowders Member Posts: 4,331
    525: 76% residual, mf 0.00160

    530: 74% residual, mf 0.00140
  • dl7265dl7265 Member Posts: 1,381
    Your right. If I put down the tax, In case of a loss I would not be reimbursed that $2500.00 ? So you recommend putting nothing down ?

    DL
  • kyfdxkyfdx Moderator Posts: 266,994
    I would always roll the tax (if one is in a state where the tax is paid upfront), and the acquisition fee into the lease.. For exactly the reasons you describe..

    Also, I like my lease payment to reflect my actual costs.. That keeps me from making bad deals, and/or exceeding my budget... ;)

    regards,
    kyfdx
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  • dl7265dl7265 Member Posts: 1,381
    Great , thanks again.

    DL
  • rangerexcrangerexc Member Posts: 3
    This is one of the most informative forums I have ever visited. Having all of this information is like having the answer key to an exam I am just sitting down to take!

    Can someone please post the latest residuals and money factors for a 2006 550i for 24 and 36 months with 12,000 miles/year?

    Thanks, Brad
  • hpowdershpowders Member Posts: 4,331
    24 months: residual = 70%, money factor = 0.00260

    36 months: residual = 59%, money factor = 0.00260
  • lexusconvertlexusconvert Member Posts: 2
    Hi,
    I'm looking to move from Lexus to BMW, and am considering the new 550i with a list price of about $68k. What would the money factor be on a 36 month lease, and would the residual be the same 59%
    thanks,
    Scott
  • hpowdershpowders Member Posts: 4,331
    The residual depends on the mileage per year.
    The money factor is currently 0.00260.
  • macdadmacdad Member Posts: 75
    Hello,

    A local dealer has a 2006 525 with 4700 miles never titled ( used by local exec. ). They are using MSRP prior to Sept. 06 which is 800 lower than current MSRP

    2006 525
    premium package
    auto
    xenon

    24 mos/12k miles
    residual 76% mf .00160

    MSRP 46570
    selling price 44770
    aq fee 675
    dealer fee 389
    1st mo + sec dep 550

    my question - how much additional discount should i ask for to account for the 4700 miles. The 24k miles on the lease goes from 4700 miles to 28700

    thanks
  • lexusconvertlexusconvert Member Posts: 2
    15k miles per year. Am I reading it right that the MF for the 550i is over 2X others, at 6.24%?
  • kyfdxkyfdx Moderator Posts: 266,994
    57% residual for 36mo/45K lease... money factor is .0026

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  • morales4morales4 Member Posts: 9
    Worked dealer down to $850 over invoice 525i Prem Pack, Auto, Xenon. What is the reasonable price to pay for advertising fee? I am being charged $650.

    To lower payment BMW suggested I purchase at 36/12,000 instead of 36/15,000 and could purchase miles later at .15 cents per miles if I needed them. Is this a good idea? Or should I just stick with more than less.
  • bdr127bdr127 Member Posts: 950
    To lower payment BMW suggested I purchase at 36/12,000 instead of 36/15,000 and could purchase miles later at .15 cents per miles if I needed them. Is this a good idea? Or should I just stick with more than less.

    What kind of miles do you plan on driving? That's the most important question that only you can answer.

    BTW, you can buy more miles from BMW up until 4 months from the end of your lease for 16 cents (not 15).... (Buying them up front is 15 cents.)
  • morales4morales4 Member Posts: 9
    What is the average regis/title cost and aquisition fee for the 525i? Want to make sure I don't get overcharged.
  • morales4morales4 Member Posts: 9
    I am not quiet sure my last lease I was under about 5 thousand miles. I guess I would rather be safe then sorry and should purchase 15,000. Thanks
  • hpowdershpowders Member Posts: 4,331
    Almost. The mf of the 530i is 0.00140 which comes out to 3.36% interest, almost 3% less interest than the 550.
    A few months back you could have had a 545 for a mf of only 0.0010 or 2.4% interest.
    I took advantage of this and have a 2005 545 for just about the same monthly payment as a 2006 530i.
  • lease_is_uplease_is_up Member Posts: 9
    Hey could you REALLY help me out.. i need the same info (mf AND resid) on 24mo and 36mo 525 and 530 lease, but for 10k/yr... (your numbers were in response to 12k/yr).

    THANK YOU IN ADVANCE!!!!
  • morales4morales4 Member Posts: 9
    Anyone know what is a fair deal to pay for MACO Fees? I am being charged $650 which I think is way to much. (525i)
    Thanks in advance.
  • hpowdershpowders Member Posts: 4,331
    525 24 months 77% res. 0.00160 mf

    525 36 months 63% res. 0.00160 mf

    530 24 months 75% res. 0.00140 mf

    530 36 months 63% res 0.00140 mf
  • bmwdougbmwdoug Member Posts: 248
    I have went over leasing with a fine tooth comb, and every time I run the numbers I find it is better to buy. You just do not come out ahead on a lease, no matter how you slice it. After the lease period, you have nothing, zilch. When you buy, you have the market value of the car, and if you sell at about 3 and 1/2 years, you hit a sweet spot, where you get a very good price for your BMW, which can be rolled over into another BMW.

    Every Scenario I ran showed the following: buying would save $5000 to $9,000 over a lease. I was using low ball resale values as well. So, the only reason to lease would be if you did not want to outlay a large sum of money for a down payment, or you are in your own business and you can deduct the lease payment from taxes.
  • bmwdougbmwdoug Member Posts: 248
    Hey, I pulled a Homer Simpson!! DOH!!! Please disregard post 237. Doh Doh!!! I need to work numbers at the start of the day instead of at the end of the day. :)
  • bmwdougbmwdoug Member Posts: 248
    Okay, lets say that you buy a 2006 530 for a Selling Price of $51,500. Your out the door total is $56,000, including a California Tax rate of 7.97%, and license and doc fees. You put a down payment of $31,000. You go to a credit union and obtain 72 month financing at 5.85%. After three years you have paid out: $31,000 down payment + $13083 ($363.42/36months), which is a total of $44,083.

    Now, the car after three years is worth $33,000. The amount owed is $15519. So, at the end of three years if you sell your car you would have $17481 in your pocket. Thus, the car has cost you $44,083 -$17481, which equals $26,601. Is this correct? Or, am I missing something?

    Now, if you lease for three years. Lets Say the MSRP of the Car is $54500, the selling price is $51,500. So, you would have the following:

    MSRP 54500
    sell price 51500
    down 0
    security deposits 3000
    Acquisition 625
    registration 490
    tax rate 7.97%
    miles per year 12,000
    lease term 36 months
    residual 62%
    money factor 0.00115 (reduced to this amount because of six extra security deposits)
    Base payment $608.11
    tax 48.47
    total payment $656.57

    Total Lease Cost
    $4146 is Drive off
    $22,980.09 is monthly payments
    $27,126.41 is total payments
    $ 3,000.00 is Refund of Security Deposits
    $24,126.41 is cost of three year lease

    So, in this case it would be cheaper to lease?????? What am I missing???? Is this correct??
  • hpowdershpowders Member Posts: 4,331
    I leased my 545 for no money down except for some small fees and I am paying only 2.4% interest. Try finding that interest rate on a car loan.

    In addition, you say put down $31,000 like that should be a walk in the park for most people which it isn't.
    Also, for some who can easily come up with that kind of cash, they would rather invest it than throw it at a depreciating asset.

    The only way many people can afford a BMW is through BMW Financial Service's incomparably attractive lease deals.
  • kyfdxkyfdx Moderator Posts: 266,994
    To do an apples to apples comparison, you need to run both scenarios with ZERO down..

    In your comparison, the lease is cheaper, but, the spread would be even bigger, because of the opportunity cost of that large downpayment by the buyer.... He has a $31K down payment that is no longer earning interest in a bank account..

    Usually, the difference in cost between lease vs. buy over three years comes down to different factors.

    1) Interest rate.. Is there an incentivized money factor on the lease? If so, advantage to leasing

    2) Sales tax treatment.. Does your state only tax the actual lease payment or depreciation on a lease? Or the entire purchase price? If only the lease payment, advantage to leasing

    3) Is the residual percentage realistic? Can you actually trade the car in for that amount at the end of the lease? If the residual is unrealistically high.. advantage to leasing..

    If these three factors are not in favor of leasing, then buying is usually cheaper over three years... or, at worst, the same cost..

    Of course, if you keep your car longer than three years, then it is almost always more advantageous to buy..

    regards,
    kyfdx
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  • morales4morales4 Member Posts: 9
    Can someone please tell me what is the residual/MF for 24mos/15,000 miles? 525I
  • hpowdershpowders Member Posts: 4,331
    74% residual, 0.00160 mf.
  • sls1sls1 Member Posts: 45
    My current lease ends at the end of January. (right on miles) Will I get a better lease deal now (12/17) or in January?
  • juschilljuschill Member Posts: 1
    525i
    Premium package
    Automatic
    Xenon headlights
    MSRP: $47,270
    Invoice: $43,310
    MF: .00175
    24 months
    12,000 miles
    Residual: $35,925.20 (76%)
    Down Payment includes:
    BMW Acquisition Fee: $825
    Registration: $354
    Doc Fee: $45
    Cap Reduction: $450
    Total Down: $2,217

    Monthly Payments: $543.00 ($501.50 + $41.37 taxes - 8.25%)

    Dealer says that Edmunds Invoice does not show BMW marketing fee of $385. So invoice should be $43,695.

    Also, dealer says that MF of .00160 is only available to prior BMW owners. Best he can do is .00175

    This is in Southern California.

    Any comments on this deal would be appreciated.
    Regards.
  • lease_is_uplease_is_up Member Posts: 9
    Well, no one has answered morales4 on MACO fees. I too would like to know if anyone has had them sucessfully waived or reduced...is this item negotiable to the same extent $$ over invoice is? (i know, everything is negotiable, but some things less so it seems). I searched this forum and have not found any answers on point...
  • jaybmwjaybmw Member Posts: 2
    Hi im about to lease a 2006 BMW 525i. It is a Demo with about 8,000 miles on it. It has the cold and premium package with fold rear seats and satellite radio. I have to put down $3,768 (475 First months payment, 1123.41 TAX, 625 Bank fee, 1,000 Down and 500 Sec Deposit.) and my monthly payments is 475 for 2 years and 15k a year. Any advice would be greatly appreciated. thank you.
  • kyfdxkyfdx Moderator Posts: 266,994
    You don't mention the selling price.. From my calculations, it appears to be about $45,000..

    Your dealer is correct about the Edmunds invoice not showing MACO (BMW ad fee), as those fees vary by region and do not apply to all dealers..

    .00175 is the base money factor without a security deposit.. If you want the .0016 money factor, you'll have to make a security deposit.

    Your dealer has marked up the acquisition fee by $200.. the base fee is $625..

    regards,
    kyfdx
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  • kyfdxkyfdx Moderator Posts: 266,994
    BMW posts new lease numbers every month... There is no way to know for sure if the numbers will be better or worse next month...

    Even the lease deals are decent now, I don't think I'd want to lease six weeks ahead of my lease expiration.. Any possible savings would be eaten up by making payments on two cars for 1.5 months...

    regards,
    kyfdx
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  • kyfdxkyfdx Moderator Posts: 266,994
    MACO is part of the dealers's cost.. and it is on his invoice from BMW NA..

    If you negotiate an "invoice plus" offer, then you can expect it to be included.... It is on the invoice..

    But, if you offer $45,XXX for a certain car, then they certainly shouldn't be adding it on top of an agreed to amount.. It is their cost, not yours..

    regards,
    kyfdx
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  • jaybmwjaybmw Member Posts: 2
    Hi im about to lease a 2006 BMW 525i. It is a Demo with about 8,000 miles on it. It has the cold and premium package with fold rear seats and satellite radio. I have to put down $3,768 =

    475 First months payment

    1123.41 TAX,

    625 Bank fee

    1,000 Down

    500 Sec Deposit

    and my monthly payments is 475 for 2 years and 15k a year. Any advice would be greatly appreciated. thank you.
  • sls1sls1 Member Posts: 45
    Thanks. That is what I thought. Just wanted to make sure that I wasn't missing a good buying (leasing) opportunity before the end of the year. I do not need two cars and will only be over about 1,000 miles on my current lease.
  • sesarjsesarj Member Posts: 34
    I was offered a 525i auto, PP for 0 down, 0 eposit and 522/mo for 24 mo./10k miles. Has anyone done better? I'm in Los Angeles.
  • 540iman540iman Member Posts: 3
    I was in a BMW dealership today and they told me about the "pull ahead" program that BMW is running where they will cover 3 payments to get you out of another BMW lease. It sounds like a good program. Does anyone have any experience with this? Are there any concerns about it?

    Also, they told me that the 550i's are in short supply and going (more or less) for sticker. Does anyone have any recent experience otherwise?

    Appreciate the help on mf and residuals that were already posted. This is a great forum!
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