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BMW Z4 Lease Questions

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  • I got this 2.5L BMW Z4 for $399.63/month on a 39M /(10K/Year) lease program with $2450 paid to begin with. If I increased the milage the payment would be around $30 more which I might take later. I did this dela as I don't know how december is going to turn out on these Incentives/lease program. But I strongly feel I am paying easy $1500/- more on this whole deal. The cars defenetly fun to drive. Thanks for your suggestions made.
  • chrchr Posts: 3
    Hi Car_Man, are there any changes to the residuals and money factor for December? Thanks!
  • Hi anumolu. BMW is currently providing $3,000 dealer cash on the 2005 Z4 2.5. Taking this cash into account, you should be able to get one right now for several thousand dollars below dealer invoice. As far as this specific offer goes, you are being asked for way too large a down payment. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Z4 would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all.

    Car_man
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  • Hi chr. Nope. BMW's lease program for the Z4 is exactly the same in December as it was in November.

    Car_man
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  • I'm looking at purchasing a 2.5 Z4 in December and just wanted to ask about your statement "Taking this cash ($3000) into account, you should be able to get one right now for several thousand dollars below dealer invoice." Do you mean that I should be making an offer that comes in below Invoice less the 3K incentive? What then would be a good offer to make on the base 2.5 w/ auto this late in the year? Thanks!
  • HI CarMan, I've never leased a vehicle before. It all seems way too confusing. Do you think it would be possible to lease an 05 Z4 2.5 nicely appointed for somewhere around 300-325/month? Or am I dreaming?? Thanks!

    Chase2378
  • we are looking at an 05 Z4 - MSRP (sticker) $42795
    they are offering monthly payment total of $554 (36 mo lease) we are trading our 02 Lexus RX300 (we owe $17700 on it)this deal is with no money at signing except for first month lease payment. does it sound like a good deal?
    thanks for any help you can give. I like to get to the bottom line - what does it cost per month.
    Alabamgirl
  • Hi tedium. Without using the incentive you should be able to get an '05 Z4 for right around dealer invoice or just over in many parts of the country right now. This would be reduced to below invoice once the dealer cash is taken into account.

    Car_man
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  • Greetings chase2378. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    I would be happy to give you an idea of what your lease payment should be like on the Z4 that you are interested in right now. However, it would be a big help if you would provide me with this car's full MSRP and dealer invoice price (or an approximate selling price). This information is necessary to calculate a lease payment.

    Car_man
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  • Hello alabamgirl. It is difficult for me to evaluate this deal without knowing a couple of additional pieces of information. 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.

    Also, how much are you being given for the truck that you are trading in. If you tell me these two numbers, along with the mileage allowance of the lease, I will let you know what I think of the payment that you were quoted.

    Car_man
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  • OK - here is all the info, I hope.
    Z4 2.5 convert.
    Sticker $42795
    Selling price $39295 (they are taking off the $3000 rebate they are getting back from BMW plus $500)
    36 mo lease/15K miles per yr/money fact 1.4

    They are offering to pay off my car loan, $17700. Edmunds tells me my car is worth $20200 (trade-in value).

    This is the last 05 Z4 in my area. The next closesl. dealer is about 75 miles away.

    One more thing - the color combination of this car is rather strange. I tried building one on the BMW site and it kept telling me the exterial (Sterling Gray) could not be picked with a beige interior. It sounds strange, but it is really pretty. I am wondering if they ordered it for someone and the deal fell thru.

    Thanks for you info as we are trying to make a decision today.
  • I'm not the expert here, so take this for whatever it's worth. Just jumping in because you need a quick answer.

    Based on what I've read here, you're getting the maximum markup on your money factor (.0014 vs .0010 buy rate). You're only getting a discount of $500 on a slow selling vehicle that's an '05, when some manufacturers will have '07s out next week.

    Getting a better money factor and proper discount should save you about $100/month from the deal you have. I'd spend some time writing e-mails or making calls around the Southeast and see who's willing to deal. I've not shopped BMW's there, but South Florida is usually a pretty competitive market for high end vehicles.

    Good Luck.
  • kyfdxkyfdx Posts: 148,174
    These are all good points... Your deal is only a good for the dealer.. $100/mo. lower would be something to shoot for..

    regards,
    kyfdx
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  • Thanks to everyone for the info. I went thru the "how to compute lease payments" and realized this was no 'deal' unless you are the dealer. I'll see if he will dicker. If not, I can wait.
  • jamiewjamiew Posts: 11
    I'm nearing the end of my Z4 3.0i lease and would like to know what to expect, having never leased a car before. A few points: 1) I'm 10k miles *under* my allocated mileage; 2) As a resident of SF my car has taken some minor wear and tear... dings from grocery parking lots, minor scraping of the wheel rims from curbs, and a few small but visible scuffs to the bumpers from parallell parking; 3) I'm planning to directly lease another BMW (a 5 series) though I may end up leasing it from another dealer in the area.

    My questions: 1) Does it matter whether I lease my next car from the same dealer or a different dealer? Will the old dealer be more forgiving of wear and tear, for instance? 2) How picky/agressive are BMW dealers when it comes to this sort of wear? Can I realistically expect the low milage to "balance things out" (as I'm hoping?) 3) What happens to my security deposit? Do I get it back, or should I expect it to disappear given wear and tear? Can it be applied to my next lease? Any advice/tips would be greatly appreciated as I am relative newbie to leasing.
  • bdr127bdr127 Posts: 950
    You can turn in your car to whatever dealer you want. (You might need to contact BMWFS and tell them where you plan to turn it in, though... I know some leasing companies need to know in advance.)

    Most dealers will be more forgiving on wear and tear if you're buying another car than if you are just turning in.

    Here's the deal on BMW lease turn-ins from the dealer's prospective: The dealer needs to purchase most of the lease turn-ins it gets. They only get to reject a certain number of cars per year. BMWFS sells the car to the dealer for the MMR (Manheim Market Report) price, adjusted for miles. (Manheim is the largest auto auction group in the world, so they are pretty much the standard.)

    Since the dealer has to pay for your lower miles, don't expect any leverage from it. As far as dings and scratches go, it really depends on how bad they are and how much it will cost to fix. If it is only $100-$200 to fix that stuff, then the dealer might just eat it since you're buying another car. But if he's gonna have to eat $500, $1000, or more, then they might look to have you pay for some of it, which only seems fair, IMHO.
  • jamiewjamiew Posts: 11
    Thanks, that was very informative! Follow-up questions:

    1) What about my security deposit?

    2) I've heard of "pull-ahead" programs... any pros or cons to taking advantage of one and getting out of my lease early? (Or, for that matter, any pros or cons to extending my lease a few months?)

    3) Would having the car detailed prior to turning it in make a difference? Or will the dealer end up doiing this themselves regardless?

    4) When negotiating the lease on my new BMW, when is the best point to bring up my old leased car? Before negotiating a price on the new car, after, etc.?

    Thanks!
  • kyfdxkyfdx Posts: 148,174
    1) The fate of your security deposit is in no way tied to the end of lease charges.. Although, it may be used to offset your final bill.. In other words, they won't look for extra charges to use up your deposit. Also, when you re-lease another BMW, they usually waive the security deposit on the new lease.

    2)I'm not familiar enough with BMW's pull-ahead program to give you any really good advice about that.. I like to take my leases to the full term.. it simplifies the next deal.

    3) BMWs are a little different, as someone at each dealership usually does the inspection, instead of a 3rd party.. I don't know if the car needs to be detailed, but inspectors are human.. As someone here on the boards says,"Clean cars bring clean money, dirty cars bring dirty money". I'd certainly have the car looking as nice as possible, but I wouldn't spend $250 for a full detail..

    4) I'd let them know right away that you have a leased BMW to turn in.. That is going to alert them that you are a serious customer, and already qualified for the new lease.. The ability and willingness to complete the deal on the buyer's part, seems to motivate dealers to get serious on price, at least in my experience.

    regards,
    kyfdx
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  • Thanks for the additional info, alabamgirl. It's good that the dealer is subtracting the dealer cash that is currently available on this car from your deal, but you need to get them to give you a larger discount from their end of the deal than a measly $500. Normally you should be able to get a much better price than this, but since there are no other dealers in your area and this is this dealer's last remaining Z4 I see why this deal is the way it is. You can always try to haggle with this dealer a little more to see if you can get them to drop their price even further. If they still won't budge, your only option is to go with this deal or to work with a dealer that's far from your home.

    Car_man
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  • Hi jamiew. BMW is running a lease pull ahead program right now that will let current lessees of select vehicles out of their deals early at no charge if they finance or lease a new vehicle through BMW FS. Unfortunately the Z4 is not one of the vehicles that is eligible for this program. It's only available to current lessees of select 2002 and 2003 3-Series, 5-Series, 7-Series, and X5 models.

    Car_man
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  • Can anyone tell me what I should expect to pay on a 2.5 Z4 w/automatic trans? My understanding is the base price of this car is $31,000 and trans will add another $1,100 for a total of 32,100. I am looking at putting 3,000 down. Any help will be appreciated. :confuse:
  • I meant lease payment not finance... Thanks!
  • Hi z4racing. If you are in an area that has a decent level of competition, I suspect that you should be able to get a 2005 Z4 for a few hundred dollars over dealer invoice minus any incentives. You can find the invoice price of the exact car that you are considering by looking in the following section of this site: Edmunds.com New Vehicle Pricing. You also may be able to get a feel for how much you will have to pay for this car by visiting the following discussion: "BMW Z4: Prices Paid & Buying Experience".

    The incentives that I mentioned earlier are the $3,000 dealer cash that BMW is providing on 2005 BMW Z4 2.5 models and $5,000 that is has on on Z4 3.0 models.

    Once you have an idea of the selling price that you want to pay, let me know and I can use BMW's actual lease program to estimate what your car's lease payment should be like.

    Car_man
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  • bdr127bdr127 Posts: 950
    There aren't too many 2005 Z4s left out there.... If you can find them, you could get a good deal. Finding them is the problem. :)
  • addiaddi Posts: 33
    Hello car-man.

    Would you give me the MF/buyrate and residual for a new Z4 2006 3.0i. Using these figures, I will be able to work through the basic lease program. Thanks a bunch.

    Addi,
  • Hello Addi. This car's lease program varies depending upon how long you lease it for and how many miles per year you are allowed to drive. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. If you were to lease a 2006 BMW Z4 3.0i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 57%, respectively. You've made a good choice in the '06 Z4. I am amazed by the fact that this car fills the price slot of the old 2.5 model but it has more horsepower than the top of the line 3.0 used to.

    Car_man
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  • addiaddi Posts: 33
    Thanks Car_man for the info. I usually lease for 12.0m miles; however, for the time being I will use the 15.0m you supplied. Also, they are giving a $1,200 cash to dealer through 4/30/06. I was also quite pleased when I received the new catalog on the Z4 showing the horsepower and torque. They have thrown in a few upgrades to justify the new price structure. Have a good day. I appreciate.

    Addi.
  • dagsz4dagsz4 Posts: 5
    My lease is up on my current 2003 Z4 on May 23rd. I am planning on leasing a 2006, however I don't want to take delivery on my new car for three weeks after my lease end date because I Will be away. Can I extend my lease by one month and how does that work? I actually took delivery on the 2003 three weeks early because the car came in earlier than expected. Also, they are currently offering a $1500.00 incentive on the 2006 through April 30th. Should I take my chances and see what is offered in May? Any info you could give me on this will be greatly appreciated. :D
  • No problem, Addi. In case you are interested, BMW FS' 12,000 mile per year residual values are 2% higher than its 15,000 mile per year residuals.

    Car_man
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  • BMW FS' specific policy on this matter, but I suspect that like most banks it allows its lessees to extend their leases for a couple of months at their current payment. It's difficult to say what BMW's incentives will be like on the '06 Z4 in May. Its current program for this car is scheduled to run through April 30th. Given the fact that BMW only introduced the '06 Z4 in Mid-February and it already has begun to provide fairly aggressive incentives on it, I doubt that you have to worry about the support on this car disappearing, but only time will tell exactly what will happen for certain.

    Car_man
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  • addiaddi Posts: 33
    Car_Man,

    Thanks for taking the time to come back at me with the additional info. Appreciate. You make all our lives better when it comes time for the NEGOTIATION!!!!

    Addi.
  • Hey Car_man,

    I am planning to lease a 06 Z4 si:
    price: ~ 44000
    15K for 36 months

    You said MFR is 0.00125 and residual 57%. What about negotiating the price of the car? Do you think I can take this down to invoice? Below invoice? Do they have any rebates from BMW?

    Thanks a lot.

    GG

    PS: I've a 05 Z4 2.5, stick with premium pack and I am paying 370$ per month inc. taxes. (15k for 27 months, and this includes tire insurrance) I thought I could trade this lease to somebody else pretty quickly.
  • shw1shw1 Posts: 3
    Hi Car_Man.

    Do you have MF and residuals for the 06 M Roadster Lease?

    Also, I'm turning in my '03 Z4 3.0 in pristine condition with only 15000 miles. Can I ask the dealer to buy this car back from me since, according to KBB and NADA and Edmunds, it is worth thousands more than the residual? I thought maybe we could split the difference so that I wouldn't have to sell it myself and use that money as cap cost reduction on the new lease. Crazy?

    Thank You!
    Sam
  • shw1shw1 Posts: 3
    I forgot to mention above. 36 month lease; 10,000 miles/yr Thanks!
  • dagsz4dagsz4 Posts: 5
    Car Man,
    I am now thinking that I may want to re-lease my current 2003 Z4 for one additional year. Would BMW do a one year lease? I would only want a one year lease and not a two year. What do you think the cost of doing this would be? I like the color and looks of my Z4 more than anything they offer on the 2006 model year. Any information that you could give me regarding this would be greatly appreciated. Thanks, Car Man! :confuse: image
  • vsaxenavsaxena Posts: 211
    BMWFS typically allows a 2 month lease extension with no questions asked. If you have a car on order, the lease can be extended significantly further.
  • You're very welcome, Addi.

    Car_man
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  • Hey gokhangulec. BMW is already providing $1,500 dealer cash on the 2006 Z4 3.0si. As a result, you definitely should be able to get one for at least dealer invoice, and probably a little below. Make sure to stop by the following discussion to see how much other community members have paid for similar cars recently: "BMW Z4: Prices Paid & Buying Experience".

    Car_man
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  • Hi Sam. Unfortunately, BMW is not currently providing any sort of lease support on the M Roadster, which by the way is a great car to drive :). As a result, if you were to lease one through BMW Financial Services right now, you would have to use its standard lease money factor. BMW FS' current buy rate standard lease money factor is .00300. This car's residual value will depend upon how long you lease it for and how many miles per year you are allowed to drive it. If you were to lease an '06 M Roadster through BMW FS right now for 36 months with 15,000 miles per year, its residual value should be 54%.

    If your car is actually worth more than its residual value, there is a decent chance that you can profit from it by working with a dealer. You may want to stop by the following discussion for an extremely accurate assessment of your car's current value: "Real-World Trade-In Values".

    Car_man
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  • Ahhhh, I see that you are interested in only 10,000 miles per year, shw1. In that case, your car's residual value would be 3% higher than the one that I mentioned.

    Car_man
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  • Hi dagsz4. I'm not sure if BMW would let you re-lease your current Z4 for an additional year. I suspect that they would, but I don't know that for certain nor do I know how much it would cost if you were allowed to do this.

    Car_man
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  • shw1shw1 Posts: 3
    Car_man,

    Well, I had to pull the trigger before I heard back from you. MF was 0.0035 not 0.0030. I called Leasecompare to see if they had any info for me; the woman I spoke with didn't have much info but said 35 was pretty much what I could expect. With no other info to go on I asked the dealer to assure me that he wasn't tacking on to the MF, he did, so I went with it. Oh well :( . On the other hand, I was able to get money (~ $2000) for cap cost reduction from the Z4 I turned in. On a separate but more important note.... it is ONE SWEET RIDE! I'm in love with the car. :) Thanks for the info!
  • Congratulations on your new car, shw1. You're right, the new Z4 is a great car. Enjoy!

    Car_man
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  • buyingz4buyingz4 Posts: 5
    Hi folks,

    I'm trying to lease a 2006 Z4 3.0i with Premium Package, Sound and Interior Leather. The MSRP is 41,500$. A dealer quoted me a cap price of 38,800$ ( a discount of 2700$). I calculated lease per month (15k miles/year for 36 months) as follows:

    a. Depreciation Cost = (Cap Cost - Residual at 57%) / 36 = ~420$

    b. Finance charge = about 130$ (at a money factor of .0021)

    So total (according to my calc.) = 550$ + tax

    A few questions..

    1) Is my calculation above correct (give or take a few)? The dealer tells me 620$ plus tax at the same MF which is way higher than my calculation.

    2) Is 38,700$ a good cap price or should I try to bring it down?

    3) What is a realistic MF? Is .0015 too much to ask for?

    Thanks thanks thanks.
  • buyingz4buyingz4 Posts: 5
    I'm very new to leasing. I used edmunds.com calculator and it gives me at least 70$ lower. I'm shocked. Even if the dealer and I agree on a MF, residual, cap price etc. the guy comes up with a much higher price. How much different can their calculation be? Please help!

    Alice
  • kyfdxkyfdx Posts: 148,174
    I come up with the same numbers that you do... About $552, using .0021 as the MF..

    The base MF is .00175, or .0019 if you don't make the security deposit..

    Some possibilities..

    1) Acquisition fee.. base fee is $625, though the dealer can charge $825.. That would add around $23/mo.

    2) Dealer is marking up the MF the maximum.. That would be .0023 without security deposit..

    At $620/mo. the dealer is obviously adding something else back into the cap cost... Both 1) and 2) would only result in a payment of $590/mo. + tax.. Document fees?, Maybe his price includes tax?

    At the base MF (.00175) and with a $625 acquisition fee added into the cap cost, the payment would be around $549/mo. + tax.. Your selling price looks great, but you may not be able to get the dealer to honor that, if he has to lease at the base rate.

    regards,
    kyfdx

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • buyingz4buyingz4 Posts: 5
    Thanks.

    Is MF negotiable?

    Could the dealer be manipulating the calculation? Or they can't do it? All I'm trying to understand is what are things that I should argue on. We already agree on the residual and cap price. What else is there to negotiate?

    1. MF?

    2. Should I challenge the way he's computing lease per month? Or is it something I should not do and simply assume he can't cheat me here?

    Totally confused.

    Alice
  • kyfdxkyfdx Posts: 148,174
    Money factor is negotiable within limits.. .00175 is the base factor.. you can't get any lower than that.. They are allowed by the lender (BMWFS) to add .0004 to the money factor... and if they waive the security deposit, that adds .00015.. So, the highest the MF can be is .0023

    I suggest asking for the base rate and make a security deposit.

    While the money factor might not appear on your copy of the lease paperwork, the cap cost should... Ask for the total cap cost and a breakdown of what that includes.. I think you will find an answer to the discrepancy there..

    The dealer doesn't calculate the lease any differently than you do... He is just using different numbers..

    regards,
    kyfdx

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • bdr127bdr127 Posts: 950
    The dealer doesn't calculate the lease any differently than you do... He is just using different numbers..

    Exactly.... The dealer doesn't do out the calculations by hand, obviously. They just punch the numbers into the computer and it gives them the result.

    If the payment is different than your calculations, either they are using different numbers or you have left out a fee here or there...
  • buyingz4buyingz4 Posts: 5
    Thanks for all the help!
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