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BMW Z4 Lease Questions

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Comments

  • tee7788tee7788 Posts: 8
    Well the z4 I'm getting is customized so its not listed in their inventory. Its a "special order" and will be delivered to the dealership. Does this affect the money factor? Anyways, I will try to walk away since it seems like some people in this board are getting the .0009 MF. Thanks again.
  • Hi kyfdx,

    Thanks so much for all the info and time you spend for us.
    I am looking for the same car that has the details below:
    06 Z4 3.0si
    MSRP: 48070
    Invoice: 43800 (dealer makes 1800$)
    30 months / 15k per year
    Res: = 65%
    MF = 0.0005
    Acq fee = 625$

    My questions:
    1. Can I really negotiate the selling price below Invoice? Like to 43000$ (dealer would only make 1000$)?
    2. Can I get the MF down to 0.0001 by putting 7 SDs down?
    3. They say Acq fee is 825$. Can I really get this down to 625$, as you say?
    4. With 43800$ selling price and MF=0.0001, my numbers would come to 446.87$+taxes / month (not 441$+taxes) when I use
    http://www.leaseguide.com/calc.htm. Am I mistaken?

    Thanks again for your time.
    GG
  • kyfdxkyfdx Posts: 148,583
    1) You might be able to get the selling price lower... I was using invoice as an example in the previous deals, because it should be an easily achievable price, from any reasonably priced dealer. (The incentive is $2K on the 3.0si model)

    2) Yes... but, the number is 0.00001 (four zeroes).

    3) Yes... the base rate is $625.. they are marking up the acquisition fee the maximum allowed.

    4) If you added the $625 acq.fee in, the only difference in numbers is the number of zeroes in the MF.. That accounts for the extra $5/mo..

    Searching further... I might have been wrong on the 30 month residual.. I think the 65% might be for 12K mi./yr.. If that is the case, then the residual for 15K mi./yr would be 63%.. That is a substantial difference ($32/mo. higher).

    Hope this helps..
    kyfdx
    Host-Prices Paid Forums

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

    Edmunds Moderator

  • bamferbamfer Posts: 2
    Hi kyfidx,

    I'm new to this forum and have found the information here extremely helpful. I am planning on leasing a Z4 3.0i some time in the next 2 weeks, and just wanted to clarify a few things.

    Earlier in this thread I read that the base rate for the money factor on the 3.0i was 0.00175, but recent posts seem to indicate that this is 0.0009. Is it really 0.0009? I understand that the dealer can mark this up by up to 0.0004, but I just wanted to clarify the base rate. BTW I will be doing a 30 month/10k per year lease. Could you also clarify the latest base rate for the 3.0si?

    Also, how did you come up with the 0.00001 money factor if placing 7 SD's? I thought each additional SD reduces the MF by 0.00005...

    Thanks in advance for the help!
  • txranger1txranger1 Posts: 5
    This is probably car buying 101 for most people, but remember the basics when buying a car.

    Competition drives the best deal as well as having good information. Apparently the two BMW dealers in my area are feuding. After getting a less than stellar quote from the dealer I bought my 530i from last year (who is close to our house) I decided to check with "Brand X" which is 15+ miles away. I didn't really want to buy from them for servicing reasons, but I was curious what they would say. They quoted me a very aggressive price for a car that was not exactly what I wanted. (wrong color - I want the hard to find light blue color and their car had slightly different options.)

    As a lark, I also applied on line with a third dealer. They didn't have a car close to what I wanted and offered me $2000 off MSRP. I emailed back saying that I already had an offer at $4000 off MSRP and I liked their available inventory less. They offered a similarly equipped car at $4250 off.

    During further negotiations with my dealer, I mentioned the quote I got and he beat it on the car I really wanted without any proof of what the offer was. He said they were having a price war with each other and that as soon as they saw his dealer's name on my car when I came into their dealship, they would get very price aggressive. He wasn't quite as friendly after that. He later told me that absent the hard quote from the competing dealer, they would not have made the deal they did, but I don't think I believe that.

    What I have learned from this is that 1) Come to this site so you know what the current discounts and rates are. Tell the dealer what you think the market is and if he won't give you that deal, tell him that someone else will and start walking. 2) Even armed with this information, being a loyal customer with a dealer does not get their best price the next time. 3) You have to get a competative quote and tell them you have it in hand. 4) Driving your old BMW to a different dealer's showroom may get you a better deal than you think. 5) Don't make any deal without at least 2 competative quotes when both dealers know you are getting multiple quotes. If the dealer does not know about the competative situation, you won't get their best quote.
  • kyfdxkyfdx Posts: 148,583
    Rates have changed since May...

    The base MF on the 3.0 is .0009

    The base MF on the 3.0si is .0005

    Each SD reduces the rate by .00007

    regards,
    kyfdx

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

    Edmunds Moderator

  • bamferbamfer Posts: 2
    Thanks kyfdx!

    I was pretty set on the 3.0i, but if I can get the base rate MF on the 3.0si from a dealer I may have to strongly consider that instead. Is the manufacturer to dealer incentive $1800 on both models? Or is it $2000 for the 3.0si? Are the residuals for a 30-month/10k per year lease the same on both models? I think it's 66% for the 3.0i...

    Thanks again!

    bamfer
  • Thanks for all the great advice and help.

    Can you clarify current base terms for an 06 Z4 3.0i? I'm told that the base MF changes with term length (ie, the .0009 rate is only for 30 mo lease) and that residuals for 24 mo lease are 59%. For 24 months with $1500 cap red, I'd like to offer $800 below invoice net cap with .0009 MF and at least 63% residual. Is this reasonable? Inventory is plentiful.
    Thanks!
  • mickylongmickylong Posts: 29
    I understand from my dealer that the current lease incentive on the Z4 3.0i is due to expire end of the month (although the sales rep was a little vague when pushed). Given BMW's history, is it likely this offer or similar will be repeated anytime soon or should I jump on this now. I have 4 months left on an Acura RSX lease and am still a little upside down on it so I wasn't really ready to move yet. But the nature of these incentives seen like I might be able to end up driving a new Z4 for the $400 a month or so I'm now paying with the dealer eating the difference on the Acura value (about $800). Any opinions? Does this make sense? I live in Atlanta and have a number of BMW dealers with Z4 inventory.
  • kyfdxkyfdx Posts: 148,583
    $1800 on the 3.0
    $2000 on the 3.0si

    I'm not positive on the 30 month residuals, but I think you are correct.. 66% on both..

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

    Edmunds Moderator

  • vsaxenavsaxena Posts: 211
    The incentives typically continue.
    But the lease rates for June are incredible. They are basically charging 1-2% interest. Depending on the inventory, the lease rates might not be as good in the future.
  • kyfdxkyfdx Posts: 148,583
    The money factor is good for any lease term from at least 24 months to 36 months...

    The 24 month residual is 69% for 24 month/30K lease...

    The residuals aren't negotiable... they are set by BMWFS for each model/term/mileage and the dealer can't change them.

    regards,
    kyfdx

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

    Edmunds Moderator

  • kyfdxkyfdx Posts: 148,583
    Yes.. what he said.. ;)

    Once they put dealer cash on a vehicle, it typically doesn't go away...

    Low money factors and high residuals can definitely come and go, though... If you want a Z4, I wouldn't wait.. (which, now that I've written that, means they will lay bigger incentives on them, right after you've bought one..)

    regards,
    kyfdx

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

    Edmunds Moderator

  • theprodtheprod Posts: 2
    Hey everybody,

    Great thread! I'm so glad I came across this as it's very informative.

    I just caught wind of this lease deal and am now just started scheduling my test-drives at the local bmw dealerships here in San Diego. I was wondering if anyone's gone through the process recently and has good recommendations or quotes for dealerships in the So-cal area. I'd be willing to drive up to the OC or LA if the deal is right. Feel free to post here or email me if its against the rules or something.

    -Prod

    Also 1 question for the experts. How did BMWUSA come up with their advertised $329 a month rate ? like what money factors did they use ? & is this a realistic number or is it higher in real life? One of the dealerships around my area are advertising it at $388 and they claim to only have 1 model at that rate. Thanks in advance.
  • I just concluded negotiations & took delivery of a 3.0i for a 24 month lease, 72% residual, .000105 [no security deposit] MF, $625 acquisition fee, at a selling price $4,000 back of sticker [everyone else was 2,000 higher]. Total drives only came to $793.

    In February I was quoted payments that were nearly $300 HIGHER, so if you want a Z4 now is probably a good time to pull the trigger :)
  • juanito1juanito1 Posts: 22
    Thanks for all the great info! By accident I came across the incredible lease rates and incentives on the 3.0si and want to get into one. Will probably go with the 30 mth lease w/ 12k/yr and pay the SD's to get the MF down to almost nothing. Question? Is the lease rate still only until the end of the month of June? Any strategy for locking in the great lease rate? Will a deposit before the end of June lock in the rate with SD's to follow post-dated? Will be 1st or 2nd wk of July before i can come up with the whole drive off and 8 SD's. Any idea how much the MF will go up after the end of June?
  • theprodtheprod Posts: 2
    1) What dealership is this if u don't mind me asking?
    2) What were u'r monthly payments including tax ?

    -thanks,
    Prod
  • leaze4leaze4 Posts: 10
    KYFDX & others:

    I was just quoted $489/mo for a 3.0i Z4 with $710 due at signing (1st mo./tags/registr) for 24mo/24K on a base stick black/black with auto roof. Does this sound like a good deal? Any feedback will be much appreciated, plan to sign tomorrow. Thanks, CLH
  • leaze4leaze4 Posts: 10
    Updated: 440/mo for same car (base z4 stick 24m/24K), any opinions?
  • kyfdxkyfdx Posts: 148,583
    What is the MSRP? Does that payment include tax?

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

    Edmunds Moderator

  • sloguy99sloguy99 Posts: 4
    Very informative thread, I'm glad I stumbled across it. My question is that I've been exchanging emails with a dealer in Sacramento Ca on a Z4 3.0si The MSRP is 48,870, 36 months, 12K miles per year, 0 down (I expect something at drive off), for $550 month plus tax. Does this sound reasonable? Neither dealer in the area has the car I want (must be manual trans) which should reduce the cost a few bucks.

    Thanks for any feedback.

    Mac
  • Hi,
    My wife and I are looking at a 24 month lease on a Z4 3.0i in the LA area.
    The gross cap cost is $40,114 which includes $679 for tire guard.
    The adjusted cap cost is showing at $37999, the residual at $27899, the depreciation as $10099 and the rent charge3 as $2293.
    Our down, including 1st month's payment, is $3200 and the monthly is $558.97 inc tax.

    Having seen the ads in the media, this is more than we were hoping to pay but did not think it seemed too high.

    Any advice as to whether the deal is good, bad or indifferent gratefully received.
  • sloguy99sloguy99 Posts: 4
    Considering I'm getting quoted a car that is roughly 9k more MSRP than yours and no down for 550 plus tax, reading some of the other deals I dont know. Did you talk to sales or internet. I began dealing with the internet but the gal was out of town so I went to the dealer to get a brochure and the sales guy did a quick quote of $660 inc tax and $1200 drive off for the same car the internet gal quoted me on for $550 plus tax. I havent started hard core dealing yet, but reading the posts a deal of roughly $10 to $11 per thousand gross cap and no down is considered very good the lease gurus will know if that is correct. I tend to like to simplify things. She also quoted a 3.0i for $458 +tax 36 mth/12k yr, $461 +tax 24 mth/12k yr with Power Top and Sport option. No Down on either deal. I will check with the other dealer in the area to see what they can do today. Niether dealer has what I want (3.0si with manual trans) and Fremont is the closest dealer with the car so I dont have as much leverage with the locals. Hope you can work something out

    Does anyone have any comments on the Tiptronic trans???

    Mac
  • Interested in advertised Z4 lease/30month/329monthly/10,000miles a yr
    Question is, if I need to lease for approx 15,000 miles a yr, how much should
    my lease rate rise...is there a rule of thumb.....what is the math? thanx
    Anything else to consider?
  • kyfdxkyfdx Posts: 148,583
    In this case, the residual will be 3% lower than a 10K/yr lease..

    On a $40K car that will add $1200 to your depreciation... For a 30 month loan, about $40/mo. more..

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

    Edmunds Moderator

  • juanito1juanito1 Posts: 22
    Kyfdx:
    Do you know if these fabulous Z4 lease rates end at the end of the month or will they typically continue?
  • kyfdxkyfdx Posts: 148,583
    I wouldn't hazard a guess on the rates... The factory to dealer cash rarely goes away, but lease incentives can vary a lot...

    They put these incentives in place to move cars... Who knows how successful that has been?

    If you are wondering if you should wait for maybe a better deal? Absolutely no idea.... The deals are good now.. they may be better or worse next month... No way to know ahead of time...

    Sorry...
    kyfdx

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

    Edmunds Moderator

  • leaze4leaze4 Posts: 10
    I focused on the payment, but edmunds says the MSRP is 37,045. Final offer is 24mo/24K, $629 due at signing (1st mo. payment + tags/registration for 2 yrs) and $429/mo. It includes a 10% tax (DC) per month.
  • kyfdxkyfdx Posts: 148,583
    That actually looks pretty darn good...

    Nothing wrong with focusing on the payment, if you are also focusing on your upfront money... After all... you are renting the car by the month..

    That sure looks like a cheap way to drive a $37K car for two years...

    Congratulations!
    kyfdx

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

    Edmunds Moderator

  • juanito1juanito1 Posts: 22
    Thanks. I'll take my chances until the end of the holiday weekend. The 9 units on the lot have not moved in two months at both local dealers in my area.
  • leaze4leaze4 Posts: 10
    Thanks for all the information in the thread, it certainly helped as I was dealing with the sales managers, & got me from $495/mo to $429(incl. tax)/mo with no upfront money (24K/24mo). It certainly allowed me to deal from a better position. Thanks again.
  • Hey tee7788. What is thie car's full MSRP? This number would be helpful for me because it will show me how much of a discount you are being given and it will enable me to calculate what your lease payment should be using BMW FS' actual lease program. Let me know and I'll tell you what I think.

    Car_man
    Host
    Prices Paid Forums
  • Hi dagsz4. Let me begin by saying that you definitely should not put $4,000 down when leasing. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction. If you put thousands of dollars down, you risk losing your money if your car is totaled in an accident or stolen and never recovered. All you have to pay at lease signing are your vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, BMW FS' $595 acquisition fee, and any required taxes or fees. If you have the money to make a large down payment, you would be better off using it to make multiple security deposits on your lease. BMW Financial Services allows lessees to buy down their vehicles' money factors by making additional deposits. For every extra deposit that you make (up to seven extra), the money factor that is used to reduce your car's payment is reduced by .00007. Making additional deposits is better than making a cap cost reduction because unlike with a down payment you actually get the extra deposits back at lease-end.

    You should be able to get an idea of how much you should pay for this car right now no visiting the following discussion: "BMW Z4: Prices Paid & Buying Experience" . When negotiating your deal, make sure to take the $1,800 dealer cash that BMW is currently providing on it into account.

    Car_man
    Host
    Prices Paid Forums
  • Welcome theprod. BMW has an outstanding lease program on the Z4 right now. If I could get a roadster, it's tough to fit my entire family in one :cry:, I would strongly consider this car. Its lease program is way better than its competitors' programs, like the Mercedes-Benz SLK or the Nissan 350Z. BMW's lease program for the Z4 is different for the 3.0i and the 3.0si. Furthermore, it varies depending upon low long you lease for and how many miles per year you are allowed to drive. If you were to lease an '06 BMW Z4 3.0i through BMW Financial Services right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00090 and 60%, respectively. Not only is this car's lease program outstanding, but BMW is providing $1,800 dealer cash on it as well. Make sure to take this dealer cash into account when negotiating your car's capitalized cost. With it, you should be able to negotiate a lower selling price than the one that BMW's advertised lease is based upon if you are in an area that has a decent level of competition.

    The only problem with the Z4 right now is that most BMW dealers have a surprisingly low level of inventory of them. If you want to take immediate delivery of a Z4, you will have a limited choice of options and colors to choose from. Of course, if you are not in as big a hurry you can always lock in the current lease program and have the dealer order one for you.

    Car_man
    Host
    Prices Paid Forums
  • Hi juanito1. A few days ago BMW extended its fantastic lease program on the Z4 through the end of August! So those of you who are considering picking up a cool roadster can do so at any point this summer ;).

    Car_man
    Host
    Prices Paid Forums
  • Welcome aboard Mac. You need to find out the selling price of the car that you want. The selling prices of leased vehicles are always negotiable. It is difficult to tell how good a deal you are getting without knowing this number. Not only will it show how much of a discount the dealer that you are working with is giving you, but it will enable you to estimate what your car's monthly payment should be. If you provide me with this number, I will be more than happy to give you my opinion of this deal.

    Car_man
    Host
    Prices Paid Forums
  • Hi juanito1. Late last week BMW extended its special lease program on the 2006 Z4 through August 31st.

    Car_man
    Host
    Prices Paid Forums
  • Congratulations on your new car, leaze4. Enjoy!

    Car_man
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    Prices Paid Forums
  • juanito1juanito1 Posts: 22
    Sweet!! Thanks Carman for all the great info. Just got the new job offer and bonus so will be buying mine off the lot next week. Also thanks again for confirming the ability to buy down the MF with extra SD's. I'll go with the zero down with 8 SD's (initial + seven extra).
  • sloguy99sloguy99 Posts: 4
    Hello Car_man,

    The car is a Z4 3.0si MSRP $48,070 (Met Paint, Premium & Sport Pkgs, Xeon Lights, Heated Seats), 12K miles per year, 3 year lease. She automatically set the selling price to Invoice ($43,800), Bank Fee $825, MF .0009, Residual of %59, No Down, which came to $591 including tax, $551 w/o tax. The drive off is $900 (1st payment plus tax and registration). I am located in Sacramento Ca where we have a tax rate of %7.75. Lease guide says it should be about $558 with tax. Is this correct? Any advice would be helpful. My TT lease ends on the 24th and I plan on getting the Z4 on the 17th.

    Thanks in advance,

    Mac
  • juanito1juanito1 Posts: 22
    Hmm....well, if i'm not mistaken Carman said the MF for a 3.0si for 3 yrs is .0005 so that should make quite a difference in the final payment....almost a whole % point (0.96%) in interest. According to leaseguide, that would reduce your payment by around $32 bucks/mth. I got the same number as you on leaseguide so i wonder if the dealer is padding the back end with hidden fees to get to $591.
  • sloguy99sloguy99 Posts: 4
    I'm waiting to hear from Car_Man to see if that is correct. Did you decide what you will get???

    Mac
  • juanito1juanito1 Posts: 22
    Funny....just got a quote in from a local dealer. Pretty much identical to yours. Based on research of MF posted in this forum previously the MF doesn't look right and the payment doesn't jive. Of course, the dealer is much slower to respond to questions about the worksheet. I'm going to have to widen my search it seems.
  • shinybeanshinybean Posts: 3
    I ran across this deal advertising a 2006 z4 3.0i lease for $224/month (24 months), $2500 down + tax,tag,title,deposit. I'm new to leases and am looking for a 2-year lease to try out a convertible before I make a purchase commitment. This deal seems a little too good to be true.

    Should I ask for more information? Is there anything in particular I should ask about to make sure I'm not getting reeled in?

    Thanks.
  • kyfdxkyfdx Posts: 148,583
    "Should I ask for more information? Is there anything in particular I should ask about to make sure I'm not getting reeled in?"

    Ask about the fees... One fee that I'm sure you'll find, and that is legitimate is the acquisition fee.. The base fee is $625, but dealers are permitted to mark it up to $825.. Then, you might get a "dealer fee", or "document fee" or "PDI fee" or "Prep fee".. All of these are garbage fees and only serve to add to dealer profit...

    Without fees, the deal looks great.... If you roll the $2500 downpayment into the lease, you are around $330/mo. with nothing down... However, add in a marked up acquisition fee and $500 of other miscellaneous fees and then the deal is just okay... You really need to know the details and the final numbers.. This could turn out to be a great deal, but you might have to negotiate on the final numbers.

    What makes the Z4 lease deals so great, is the program offered by BMWFS.... What can make them not so good is the dealer fee add-ons, and money factor mark-ups...

    regards,
    kyfdx

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

    Edmunds Moderator

  • Congratulations on the new job offer and bonus, juanito1. The Z4 will be a nice reward for you :).

    Car_man
    Host
    Prices Paid Forums
  • Hey Mac. Dealer invoice is not a good deal on this car if it does not take into account the $2,000 dealer cash that BMW is currently providing on it. Also, this dealer appears to be marking up BMW Financial Services' base lease acquisition fee of $625 by $200 to add additional profit to your deal. I personally would insist that they do not mark the acquisition fee up if I was getting this car. They are marking up your money factor as well. While the '06 Z4 3.0i's buy rate money factor is .00090, the '06 Z4 3.0si's money factor is only .00050 (.00065 with a security deposit waiver). Again, I personally would make any dealer that I was working with use the buy rate. It looks to me as though you still have some room to negotiate.

    Car_man
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    Prices Paid Forums
  • adam90adam90 Posts: 1
    I really need some help. I am in the negotiating stages of leasing an 06 Z4. The deal I found involves putting down $3,000, $329 for the first payment, $400 security deposit, and $299.50 processing fee. I don't quite understand what you mean by making additional deposits instead of putting down more money. Could you clarify this for me?
  • shinybeanshinybean Posts: 3
    Thanks much kyfdx. I emailed them and here's the breakdown they sent back:

    $3994 down with 6% assumed tax = $239.64
    1st payment = 237.44
    Refundable Security Deposit = $250.00
    Doc fee = 399.00
    Doc Fee Tax = 23.94
    Tag Fee = $42.00
    Total _______________
    $5186.02

    I don't know what happened to the $2500 down. I'm guessing the acquisition fee is wrapped up in there. I know the $400 document fee is BS.

    Based on this , it looks like I'd be paying a little over $10K over two years. It averages around $420/month assuming i get the security deposit back.

    Any advice? Should I email back and say I won't pay the doc fees and ask why the down payment went up?

    Thanks again.
  • kyfdxkyfdx Posts: 148,583
    "Should I email back and say I won't pay the doc fees and ask why the down payment went up?"

    Yeah.. that would be a good way to start... I'm sure they are adding $625 or $825 for the acquisition fee, but it looks more like $1200 added into the down payment, plus $400 for a doc fee....

    It sure looks like you could pare $900-$1000 off of your upfronts.... That brings your monthly cost down to about $380.. which would be really good..

    regards,
    kyfdx

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

    Edmunds Moderator

This discussion has been closed.