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BMW 5-Series Lease Questions



  • dulnevdulnev Posts: 652
    The MF for 535i is higher: .00155. But the residual is identical to 528i.
  • rbrrbr Posts: 108
    For what its worth, I was just able to obtain a MF of .0005 on a 36 month lease of a 2009 535xi by offering a one-month security deposit.
  • dft654dft654 Posts: 1
    Anyone know the BMW FS money factor for a 2010 535xi Wagon?
  • Hi all,

    What you think about this? I got quoted a .00175 money factor on a 36-mth lease for a 2010 loaded 535i. We will prepay .15 per mile over $15K miles; prepaying for 8K miles. Isn't the money factor. 00155 though? Is dealer trying to pull a fast one?
  • jeffaljeffal Posts: 28
    Dealers are known to mark up the money factor rate. That is another way they make their profit on the car. You can ask them to use BMW's current rate. They might say okay, or they might tell you to get lost. Depends on how bad they want your business.
  • Thanks. I appreciate the insight.
  • rbrrbr Posts: 108
    acurious -- maybe carman will chime in, but I believe the official BMW rate for a 2010 535i is .00155, so the rest is going to the dealer, and you should be able to find a dealer that will give you .00155. Knowledge is power ... stick to your guns.

    Prepaying for mileage overages probably makes sense given that the per mile rate is less, but is that recoverable in the event the car is totalled? Still may be worth it though.

    Good luck.

    I'm picking up a 2009 535xi on Saturday, MSRP around $63,000, 36 months, 15K/year, .0005 MF, 1 month security deposit and 1st months payment up front, for about $650 including tax. Car has about 1,500 miles on it at the dealer and is still being sold as new. I think I did OK.
  • x021627x021627 Posts: 153
    BMW lets you buy only the mileage you need till about 4 mos before you lease is over at only .01 more than what you would pay at inception. Therefore you aren't paying for what you don't need. I knew 15K was too much and 12k probably not enough and will gladly only pay for the overage I only use. Not a bad deal and I can keep the extra $$$ till I need to part with it.
  • sergeymsergeym Posts: 272
    .0005!!! You are kidding, right?
  • elanspelansp Posts: 39
    I believe the 2009s still have MF of .0005 on them but I thought the 2010s were around .00155.
  • rbrrbr Posts: 108
    Sergey --

    No ... not kidding. I was surprised too. The sales rep said that was available with a one month refundable security deposit. Obviously the best part is that translates to a tremendous amount of interest/rent savings on cars that are this expensive, not to mention that virtually every dollar you are paying goes to depreciation which should positively affect the end of lease purchase price. Remember this was on an '09 535xi, and there aren't many left.
  • rbrrbr Posts: 108
    BTW, my car is an '09, but it was a late production car so it has the improved iDrive hardware.
  • waid10waid10 Posts: 21
    This forum is great. I have learned so much, but still feel a bit lost when discussing lease options with a dealer.

    I just got an opening quote from a dealer for a 2010 535i with sport, premium, value, comfort access, nav, and satellite radio. MSRP is $59,570. There is a "dealer package" of $399 added but I have no idea what that is. They discounted the MSRP by $2,836. They added tax, tags, and a $479 processing fee. Is that a normal amount? The total balance is $59,491.63.

    He quoted me prices for 24, 30, and 36 month leases with 12,000 miles and no down payment. He used a money factor of 0.0021.

    24 month lease is a $1,187/month payment ($38,125 residual value)
    30 month lease is a $1,023/month payment ($36,933 residual value)
    36 month lease is a $914/month payment ($35,742 residual value)

    These are my questions:

    1. Any idea what that $399 dealer package is?
    2. Is the $479 processing fee reasonable? Can that be negotiated?
    3. Is the $2,836 reduction off of MSRP a good reduction? How much profit is typically built in? I think I have read that about $4,000 is built in. Should I push to get even more of a reduction?
    4. From what I have read in this forum, the money factor they quoted me is high. Is 0.00155 the standard for the 535? Will that change in September?
    5. He gave residual value dollar amounts but I am not sure what number is used to calculate it. I would like to know what the standard percentage is and see how these numbers match up. Do you use the MSRP or the total after taxes and fees to calculate the residual value?

    I would appreciate any other insight?
  • rbrrbr Posts: 108
    Waid -- A "dealer package" may be some sort of minor dealer installed things or prep things ... just ask them for that and then probably say no thanks. The $475 processing fee is ridiculous unless it has something to do with a lease inception fee. For instance (and although I know I could have fought it), my dealer has a $99 processing fee. Processing fees or whatever are just added profit for the dealer. The money factor is definitely higher than the official BMW rate which I think you have stated correctly.

    You should negotiate a price based on invoice which you can figure out on the Edmunds site. My most basic advice is to not sit back and just try to justify their price. Make him an offer that is maybe $1000 or less over the invoice price and make that your cap cost on the lease, and state that you want the official lease rate of .00155 (.00165 for an X-drive), and dont be shy or defensive doing it. Also, you may want to get a quote at both 15,000 and 12,000 miles. The deals on the 2010s will likely only get better as we get closer to the new design which I guess is estimated to arrive mid year 2010.
  • djwajdjwaj Posts: 1
    Hey guys, I'm new to this so please bear with me. I went to lease a 2010 528i base sedan and the MSRP $46,625. 36 months,12k miles. Total out of pocket at signing $2100 and $600 a month including taxes. How good or bad is this deal? I would appreciate any tips or suggestions.

  • djwaj,

    not you know what the money factor is? I just leased this past Wed at BMW of Mountain View, CA a 535i with M/package for $980 a month at .00175 based on $500 over retail with all bells and whistles. Cap cost = $60,920. Probably could have gotten .00155 but it's a 2010. Had to get prepaid miles too because I drive an insane amount per year hence higher payment. I think you can negotiate the money factor as well. Good luck.
  • That still seems a bit high, depending on where you live. You should ask what the cap cost of the car is and what the residual and rates are.

    To give you an example, on paper, I'm looking to get a 2010 528i msrp $52,875. Since I'm in SoCal, I figure to get the car at 500 over invoice, (49,150) which will end up being $692 a month (including la county sales tax) with nothing but out the door costs with 10k miles/ year at a .00145 and 61% residual.
  • We're at 58% residual in the Bay Area I think. I had to get 23K miles per yr.
  • jeffaljeffal Posts: 28
    Here are a few lease quotes I received on a 2010 528i sedan (MSRP: $55,000)

    The terms were: $0 down, 10,000 miles per year, 36 months
    And the taxes were included in the payment:

    Dealer 1: $759/month
    Dealer 2 : $767/month
    Dealer 3 : $779/month

    I don't feel right paying over $9,000 a year for a 528i when the competition is offering more value for your dollar. The terrible crash test results on the 5 series aren't helping things either, but for some reason I'm still drawn to the car.
  • mineshgmineshg Posts: 6
    I would appreciate if someone can let me know the leasing price for the following:
    BMW 528 xi (X-drive) with premium package, navigation and park distance control.
    I would like to lease for 36 month for 12k miles/year. I would not like to put any money for down payment. If i go with $0 down payment what would be the best deal ie $/month? I live in jersey city, NJ. Please advice.

    I got a quote from a dealer for $650/month (with $3000 down payment) for the above mentioned specification. Can anyone suggest whats the best deal I can get on it.
  • x021627x021627 Posts: 153
    You need to negotiate the priceof the vehicle, not the lease payment. Do some searches and fin dout what the money factors they are offering you and learn how to do the calculation of the lease payment yourself. You need to understand the leasing calculation, if you don't already and the variables that to into it. That will help you determine if the offer they made you was a good one or not. I don't let on what I am planning to do, whether leasing or buying till the very end after we agree on pricing, since that is the driving factor no matter what you are doing.

    I leased a similarly equipeed vehicle in 2008 except I also had the cold package and ipod adaptor, no park distance control. My monthly payment with tax is $649 and I put NO money down on the lease. At that time, this was a good dea.

    You can do much better as we are in a recession.....................

    Good Luck
  • mineshgmineshg Posts: 6
    Thanks a ton!!! I guess i will have to do some more research on it....
  • torteztortez Posts: 11
    2010 528 in CA, Premium, value, nav, heated seats. MSRP is 50875, I was able to get 48000, just about 1100 over invoice. I already know the 36/mo 10k lease has 61% residual value from reading other posts, and that the money factor should be .00145. I had 2 dealerships today tell me that is their "buy rate", and they need to mark that up to make money. They quoted me a MF of .00185

    I am a current 5 series customer turning in my lease, and I was told I had to do another security deposit of 700, and pay the acquisition fee of 925 to start a new lease. If I did not security deposit, then the MF would be .00205!!! What is the big deal of the Loyalty program if I have to pay all these fees again???

    I was told that I could get this car for 48k, 3000 drive off, and 659/mo including CA state tax.

    Does this look good, and can anyone tell me what the Loyalty program gets me, because I don't see it.
  • rbrrbr Posts: 108
    The current 5-series doesn't have "Terrible crash trests results," no matter who the rating agency is. One or two of the tests are not perfect, but "terrible," with all due respect, certainly doesn' apply here.

    As to the lease quotes you are getting, I was being quoted in that range (mb slightly higher) for a 2010 535xi with 15K/year 3yrs through BMW finance. The MF should be .00145 and RV should be 58% on a 528i with 15K/ year through 8/31.
  • waid10waid10 Posts: 21
    Does anyone (Car Man perhaps) know the MF for a 2010 535i? Was it 0.00155 for August? What will it be for September? Does it change monthly?
  • waid10waid10 Posts: 21
    I am negotiating a 2010 535i lease. Car has sport, premium, value, comfort access, heated seats, navigation, satellite radio. Dealer quotes a sticker of $59,570 (although I am getting $60,195 on Edmunds). He is giving me a discount of $3,336, so a total price of 56,633 plus tax, tags, fees.

    He is quoting me 0.00175 MF and 60% residual on a 36 month lease with 12,000 miles.

    Dealer also says I have to pay $900 security deposit that is refundable at lease end.

  • rbrrbr Posts: 108
    A 2010 535i 36mo/12K appears to have a MF of .00155 for August, so you are paying .00020 more than the official rate, which calculates to a half percent more in interest rate that the dealer is pocketing. That is not insignificant as it translates (I think) to about $650 more in interest/rent charges over the life of the lease. Maybe carman can confirm the numbers. September is not out yet.

    As to the deposit, I'm not as certain,a lthough I beleive BMW has a program to reduce the MF even further by paying a lease deposit. In this case, they may be using the deposit to reduce the money factor evenfurther and increase their profit.

    I am getting the lease rates from a very popular BMW driver message board site called "" on the "Ask a dealer" board and the lease rates are posted by none other than Tarry Shebesta who is well known around here.
  • One dealer in Berkeley has $399.00 with drive off of $6,300 something. When I called about the vehicle they said it was sold.

    The national deal is for a premium with free value package with MSRP of $47,500 or so. The payment was $499.00. The San Francisco dealer was only going to give me .00155 with $925.00 fee.
  • You're very welcome, joesao.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hi dft654. BMW Financial Services' new September buy rate lease money factor and residual value for a 36 month lease of a 2010 535xi Wagon with 15,000 miles per year are .00165 and 58%, respectively.

    You never mentioned how long you want to lease for or what mileage allowance you need. Let me know if you want something different.

    Prices Paid: Buying & Leasing Experiences Forum
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