2) I think I only reduced your upfront by $2100 to achieve the $40/mo. less.. Leaving a capcost reduction of $400...
Security deposit.. Waiving the deposit raises the money factor by .00015.. On a $65K car, that raises the payment by approx. $15/mo., or $540 over the life of the lease.. Making a deposit of $800, which you get back in 3 years is a much better deal..
kyfdx, can you price out a hypothetical lease for me? Let's suppose I am leasing a 2006 530xi with MSRP of 58K. 36/12K/6% tax. Sec. Dep. waived (returning lease). Thanks very much in advance.
2) If I keep ALL of the CAP reduction (the additional $400), I would probably see a $35-$40 or so less payment or thereabouts, but I get the idea - the least amount down is the best way to go as my money will stay my money.
Security - it does make a difference and I will see what they come back with.
You mentioned that you had leased 5 previous vehicles. Did you ever have a trade-in in one of the deals. If so, did you get the Lease price settled first and then the Trade-in. I have a 2002 M5, really love the car but have decided I am lazy and really do not like shifting all the time, so I am looking to replace and the 545 seems to be the closest replacement. I am hoping BMW will treat me well - but to this point it does not seem they are making many points. Thanks again, kjw
I kind of subscribe to the backwards way of negotiations with trade-ins.. Ask them to make an offer on your car, that is good whether you trade or not.. If your M5 is really nice (how could it not be..lol?), they should want it..
That way, you'll get an ACV on your trade, and know if trading it is feasible.. If they start out lowballing you on it, you'll know a deal will be problematic..
If the trade-in number is acceptable, then negotiate the lease..
When you do it the other way.. negotiate lease first.. then a great deal can go right out the window, if they offer you $2K-$5K less than your car is worth..
Of course, you have to know what your car is worth.. If you want my opinion on it's value, just deliver it to my house next Saturday... Come back in August or later, and I'll let you know what I think...
Well, I don't have the best lease yet. Guess I was thinking that if I had a good deal (similar) to current I could get back on the other end. However your point is well taken.
About the 'knowing the value' thing - Saturday is not good, but possibly Sunday. Interestingly everyone says that about the car and I agree - but that shifting all the time in traffic!
One other note, I live in Atlanta and have monitored the TMV values for the 545 and it appears with the $1500 discount they are in line with what people are getting so I am not sure how much lower they will be willing to go. But I will try and see what happens! kjw
Does anyone know how the BMW owners choice program works? The dealer syas it is the same as a traditional lease, but gives IL residents a better tax deal. I'm dealing with a dealer in IN, and I live in IL.
Also, is the MF that the dealer quotes you based on Credit rating, or are they obliged to give you what BMWFS is offering? Ex '05 530 MF=0.00125
Owner's choice is a balloon payment program.. It doesn't necessarily have the same rates as the lease program (though it might). The tax is the same, but you may benefit in two ways..
1) If you have a trade, you get a credit against the new car..
2) If you sell the new car in the future, you can get a trade-in credit on the taxes when you buy the next one..
The main difference between the two programs is the car is in your name, not the bank..
I get a payment of about $885/mo.including tax, with only 1st payment and security deposit upfront..
The '05 545I is cheaper to lease, because BMWFS is subsidizing the interest rates and residual values as an incentive to sell them... No incentives needed on the new '06 530xi...
You think that's odd? I worked out lease payments using base money factors for 3 years, 36,000 miles for a 2005 545, MSRP $58,745, cap cost $56,000 vs 2006 330i MSRP $41,995, cap cost $41995. I got $623.56+tax for the 330i and $651.98+tax for the 545. It's all supply and demand. Figure MSRP for the 330i and almost $3000 off MSRP for the 545 as being realistic. Money factor of only 0.001 for the 545 and a whopping 0.00265 for the 330i.
I have an offer for an '05 530 with cold/premium, xenon, auto, sat prep, and folding rear seat for $47,501 with 3yr/30k lease. MF of 0.0125 and residual 63%. MSRP of $51,270. IL taxes of $3700. What would a monthly payment be with 0 down. I have somewhere around $625/mo including tax.
This is the final offer I got from the aforementioned dealer in post #1643
Out of pocket $1,525 including $700 Sec Dep., License (IL) $143 and 1st payment $682. No Acq fee.
Term 36mo/30k. MSRP $51,270, Residual $32,300.10 MF=0.00145 (best she said she could do). Selling price $48,00 Including Cold/premium packages, xenons, sat prep, fold rear seat, and auto.
Tax Rate 7.5% IL rate for Cook county for sales tax of $3,604.15
This week I start negotiating with the dealers in Southern California. I've been following this board for maybe a month or so and here's what I've been left with:
-Zero money down -All fees should be added to total drive off cost (I should only be financed for the cap cost) -Negotiate from invoice up not MSRP down -Expect $500-$1500 over invoice for the '05 530i and '05 525i -Walk away from dealers unwilling to offer base money factor (I'm Tier 1)
I had a dealer tell me today that buy-rate MF on an 2005 545 was .0010, but they "never" lease anything at less than .00035 over buy-rate. Probably BS, but it put me at .00135. Not sure if 530's are different.
Your residual is the same as I have been quoted on a 10k/yr lease (63%)
I'm in the process right now in SoCal. I'm sure you're aware that the 2006's are out with more horsepower (for the same sticker) but MF are very high. I was qouted .00305 on a 2006 and heard on this forum that buy-rate is .00250. 2005's are about .00100 (at least on a 545).
I also heard that BMW lets you buy extra miles for $.15/mile prior to the end of your lease -- if I not missing anything, there's not a lot of incentive to go higher miles up front on the lease if there is a possibility you won't use them.
I'm looking at a 2005 545 that's completely loaded (minus Satelite) but has been a dealer car and has 8K miles on it (basically, its used). I was qouted at $770 (incl tax) with $2500 down and 10k miles per year.
1) Charging you $825 for acquisition fee (added into cap cost), instead of $625 base..
2) Bumping money factor to .00145 from .00125 (you already knew that)
3) Selling price is very fair.
1) & 2) are raising the monthly payment by $22/mo.. The equivalent of an extra $800 over the life of the lease.. It isn't a bad lease deal, but you might see if $660/mo. will get it done... If not, you've done okay... $800 is $800.. but, at these levels, I'm not sure $22/mo. bothers anyone (well, okay.. it would bother me).
I like to add the fees into the cap cost.. If I am renting the car by the month, I want the payment to reflect my monthly cost..
I only want to put down 1st payment and security deposit.. Of course, you want to see the breakdown of the cap cost, and make sure what fees are being added..
That's about it.. watch out for junk fees, like dealer prep or doc fees..
The 2005 330i model had $4,200 dealer incentives to move them out before the 2006's arrived. One of the main upgrades in the 2006 330i is the more powerful 3.0 engine.
I have to think that there will be significant incentives in the form of dealer incentives and/or low money factors to move the 2005 530's off the lots since the 2006 has this same engine upgrade. It just doesn't make sense to get a 2005 for close to the effective cost of a 2006. The engine change is a major change. This car always needs more power.
I'm closing in on a deal on a new 545i, and if the dealer will honor it, it's a good deal.
But what interests me is that the market for BMW and Mercedes, at least in Southern Calif., is wildly inefficient. Dealers are not regionally competitive with each other in selling essentially identical vehicles. A dozen shares of XYZ stock is equivalent to any other dozen shares of XYZ stock, and no one would dream of paying a substantial price premium for those shares because s/he happened to live in Woodland Hills and dealt with a broker there, rather than living in Newport Beach and using a broker there. But even though BMWs are essentially identical, the best prices I got for the same vehicle (adjusted for options), on the same lease terms -- 36 months -- from among about 8 dealers had a range of more than $5,000 -- i.e., monthly carrying costs of over $140.00. And I have no doubt that the higher-priced dealers were actually getting something near their quoted prices on many of their lease deals -- which is why they wouldn't come down in price for me.
The price range variation in Mercedes E350s was even greater, $200 per mo.
What this means is that the luxury car shopper is not cross-shopping these vehicles on an active basis. This is puzzling to me, since this is an affluent, well-educated customer base, technologically sophisticated, with access to information. It's not that time consuming to send e-mails to dealers and negotiate over the phone. And consumers have the upper hand, because dealers must move their cars -- but we don't have to buy them. So why is there not more cross-shopping, forcing the market to be efficient? Is it the practiced manipulations of car salespeople? Is it the mystique of the cars themselves, overcoming rationality? Or what?
Whatever it is, it's a good thing -- because an inefficient market means there are deals to be had.
But, any fee charged should be going to the government.. Those are pretty easy to figure out.. $164.39 or something like that.. Tire fee, $7.50, etc...
Anything labeled document, or paperwork, or administrative.. those are the ones to look out for.. In amounts like $299, etc.. those are garbage fees..
I am pretty close to leasing a 525, with premium package, cold weather package, auto, and electric rear shades, 15k per year miles, and 24 months, for $691 a month and $1059 down. I will most likely not be able to commit until next Thursday, at which point I would pick up the car. I have already applied and been approved to finance through BMW. I am aware that the inventory is reducing rapidly. What are the chances that BMW will continue to offer the same lease deals into next month?
if youre approved by BMWFS then u lock in your rates.
BUT, $691 for a 525 seems WAY high. but perhaps its because its only 24 months...for your guide, ive been quoted around 500/mo for your same car, but for 36 months.
I have ordered a 06 530i and I checked the status and it inidcated that it is in an "In Transit" status. Does anyone know the average time a car is "In Transit and how long it stays at the Vehicle Processing Center............and then on to the dealer?
the residuals for the few remaining 5's are lowered for May and there will be no further dealer support. BMW build-outs are a beautiful thing. The market is so strong on the pre-owned cars and the days-supply of new is low. The month over-all was a little off but I think that is because so many people were waiting on the new 3's, 5's, 7's. This May will be a monster month. We've got a ton of incoming pre-sold units and the momentum is gaining.
Dealer profits are steady and that's a good indicator that your purchasing an excellent product even though you do wish that you could buy it for $100 over invoice and buy rate.
The $695 destination fee is part of the MSRP and invoice prices.. Unless you offered $XXX amount over invoice, I'm not sure why it would come up at all... If you did make an offer of that type, then both MACO and destination are part of the invoice..
Now, if you are looking at a car with an MSRP of $50K, and you offered $47K, and they accepted.... then tried to add these fees on later, then that would be wrong..
I just negotiated the following deal on a 2006 525i (and it only took 10 minutes, so I'm a little concerned).
2006 525i Premium Pkg Cold Weather Pkg Navigation System
45k The vehicle is in transit and will be here by May 15th if I make the deposit by tomorrow. I've worked with salesman previous when I purchased a 2001 325i.
Sounds like a good deal to me. I just ordered a 525xi without nav for the same price. Don't fret the quick sale, I spent two hours at the dealership.
Does anyone out there own a titanium gray? I selected it sight-unseen, went with the titanium gray at the last minute. I've always been partial to the dark grays, but the brochure color sample looks a bit green in the light.
Um I wouldnt say green exactally. Its one of those color's that look different under different lighting. What color interior ? Personally i like it and the Silver Grey on the 5er.
I'm looking for help on acquiring my first BMW and I want to know if the following price is good on a new 2005 545. Options: Steptronic Cold Weather Package Premium Sound Package Sports Package Nav System SAT Radio
MSRP: $64,740 Sale Price $62,000 (sales rep said he can go a little lower. Total Down Payment: $2,785 (nothing else out of pocket) Monthly Payment: $776.97 (36 months 36k miles) Taxes are in monthly payment, I live in NJ taxes are 6%
I would try to get the sale price down to around $61K. Last month I paid $60,400 for 545 with $64,220 MSRP (no sat radio) also in NJ. $2,785 out of pocket also bother me a little. Could you break down this number. Normally 1st month + last month + title/tags/doc fees should be in the $1,800 range. Otherwise numbers add up correctly. You are getting the base MF (0.001) and correct residual value (61%) for April. This month's numbers may not be as good.
That equals $2239... That leaves $546 for registration/title fees, etc? If they can justify those fees somehow, then most of the lease is good.. base money factor, etc... Price is just okay.... I'd be happier with another $800 off the price.. $800 lower would drop the payment by $24/mo..
I have titanium gray metallic on my 2003 530 and I think it's beyooooteful! I think you'll really like it. It doesn't show dirt as much as many dark colors, but it shines like anything in the sun.
I went into a dealership believing the only color 5-series I could be driving in was black. Then I saw a titanium grey 5 and I completely changed my mind. It is was simply gorgeous. I didn't see any green in it. Then again I viewed it indoor with no lighting (it was in a garage) not outside in the sun.
Comments
Security deposit.. Waiving the deposit raises the money factor by .00015.. On a $65K car, that raises the payment by approx. $15/mo., or $540 over the life of the lease.. Making a deposit of $800, which you get back in 3 years is a much better deal..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I don't have any real idea on selling prices for the new '06... but, if you give me a hypothetical selling price, I can give you a number...
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Once again - good information
2) If I keep ALL of the CAP reduction (the additional $400), I would probably see a $35-$40 or so less payment or thereabouts, but I get the idea - the least amount down is the best way to go as my money will stay my money.
Security - it does make a difference and I will see what they come back with.
You mentioned that you had leased 5 previous vehicles. Did you ever have a trade-in in one of the deals. If so, did you get the Lease price settled first and then the Trade-in. I have a 2002 M5, really love the car but have decided I am lazy and really do not like shifting all the time, so I am looking to replace and the 545 seems to be the closest replacement. I am hoping BMW will treat me well - but to this point it does not seem they are making many points. Thanks again, kjw
That way, you'll get an ACV on your trade, and know if trading it is feasible.. If they start out lowballing you on it, you'll know a deal will be problematic..
If the trade-in number is acceptable, then negotiate the lease..
When you do it the other way.. negotiate lease first.. then a great deal can go right out the window, if they offer you $2K-$5K less than your car is worth..
Of course, you have to know what your car is worth.. If you want my opinion on it's value, just deliver it to my house next Saturday... Come back in August or later, and I'll let you know what I think...
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Well, I don't have the best lease yet. Guess I was thinking that if I had a good deal (similar) to current I could get back on the other end. However your point is well taken.
About the 'knowing the value' thing - Saturday is not good, but possibly Sunday.
One other note, I live in Atlanta and have monitored the TMV values for the 545 and it appears with the $1500 discount they are in line with what people are getting so I am not sure how much lower they will be willing to go. But I will try and see what happens! kjw
I really don't want an average deal.. I want a killer deal, or at the very least, a good deal...
I think that TMV is always a higher price than I want to pay..
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Also, is the MF that the dealer quotes you based on Credit rating, or are they obliged to give you what BMWFS is offering? Ex '05 530 MF=0.00125
1) If you have a trade, you get a credit against the new car..
2) If you sell the new car in the future, you can get a trade-in credit on the taxes when you buy the next one..
The main difference between the two programs is the car is in your name, not the bank..
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I get a payment of about $885/mo.including tax, with only 1st payment and security deposit upfront..
The '05 545I is cheaper to lease, because BMWFS is subsidizing the interest rates and residual values as an incentive to sell them... No incentives needed on the new '06 530xi...
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I got $623.56+tax for the 330i and $651.98+tax for the 545.
It's all supply and demand. Figure MSRP for the 330i and almost $3000 off MSRP for the 545 as being realistic. Money factor of only 0.001 for the 545 and a whopping 0.00265 for the 330i.
Thanks for any input
Out of pocket $1,525 including $700 Sec Dep., License (IL) $143 and 1st payment $682. No Acq fee.
Term 36mo/30k. MSRP $51,270, Residual $32,300.10 MF=0.00145 (best she said she could do). Selling price $48,00 Including Cold/premium packages, xenons, sat prep, fold rear seat, and auto.
Tax Rate 7.5% IL rate for Cook county for sales tax of $3,604.15
Monthly payment including tax $682.
Is this deal any good?
-Zero money down
-All fees should be added to total drive off cost (I should only be financed for the cap cost)
-Negotiate from invoice up not MSRP down
-Expect $500-$1500 over invoice for the '05 530i and '05 525i
-Walk away from dealers unwilling to offer base money factor (I'm Tier 1)
Is there anything else?
Your residual is the same as I have been quoted on a 10k/yr lease (63%)
I also heard that BMW lets you buy extra miles for $.15/mile prior to the end of your lease -- if I not missing anything, there's not a lot of incentive to go higher miles up front on the lease if there is a possibility you won't use them.
I'm looking at a 2005 545 that's completely loaded (minus Satelite) but has been a dealer car and has 8K miles on it (basically, its used). I was qouted at $770 (incl tax) with $2500 down and 10k miles per year.
Any insights on this deal would be appreciated?
2) Bumping money factor to .00145 from .00125 (you already knew that)
3) Selling price is very fair.
1) & 2) are raising the monthly payment by $22/mo.. The equivalent of an extra $800 over the life of the lease.. It isn't a bad lease deal, but you might see if $660/mo. will get it done... If not, you've done okay... $800 is $800.. but, at these levels, I'm not sure $22/mo. bothers anyone (well, okay.. it would bother me).
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I only want to put down 1st payment and security deposit.. Of course, you want to see the breakdown of the cap cost, and make sure what fees are being added..
That's about it.. watch out for junk fees, like dealer prep or doc fees..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I have to think that there will be significant incentives in the form of dealer incentives and/or low money factors to move the 2005 530's off the lots since the 2006 has this same engine upgrade. It just doesn't make sense to get a 2005 for close to the effective cost of a 2006. The engine change is a major change. This car always needs more power.
But what interests me is that the market for BMW and Mercedes, at least in Southern Calif., is wildly inefficient. Dealers are not regionally competitive with each other in selling essentially identical vehicles. A dozen shares of XYZ stock is equivalent to any other dozen shares of XYZ stock, and no one would dream of paying a substantial price premium for those shares because s/he happened to live in Woodland Hills and dealt with a broker there, rather than living in Newport Beach and using a broker there. But even though BMWs are essentially identical, the best prices I got for the same vehicle (adjusted for options), on the same lease terms -- 36 months -- from among about 8 dealers had a range of more than $5,000 -- i.e., monthly carrying costs of over $140.00. And I have no doubt that the higher-priced dealers were actually getting something near their quoted prices on many of their lease deals -- which is why they wouldn't come down in price for me.
The price range variation in Mercedes E350s was even greater, $200 per mo.
What this means is that the luxury car shopper is not cross-shopping these vehicles on an active basis. This is puzzling to me, since this is an affluent, well-educated customer base, technologically sophisticated, with access to information. It's not that time consuming to send e-mails to dealers and negotiate over the phone. And consumers have the upper hand, because dealers must move their cars -- but we don't have to buy them. So why is there not more cross-shopping, forcing the market to be efficient? Is it the practiced manipulations of car salespeople? Is it the mystique of the cars themselves, overcoming rationality? Or what?
Whatever it is, it's a good thing -- because an inefficient market means there are deals to be had.
-Acquisition ($695)
-Security Deposit ($850)
-1st month payment
-License (How do I determine the license fee in California?)
But, any fee charged should be going to the government.. Those are pretty easy to figure out.. $164.39 or something like that.. Tire fee, $7.50, etc...
Anything labeled document, or paperwork, or administrative.. those are the ones to look out for.. In amounts like $299, etc.. those are garbage fees..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I am aware that the inventory is reducing rapidly.
What are the chances that BMW will continue to offer the same lease deals into next month?
a) Great
b) Slim
c) None
d) No one will know until Monday
I'd pick d)
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
BUT, $691 for a 525 seems WAY high. but perhaps its because its only 24 months...for your guide, ive been quoted around 500/mo for your same car, but for 36 months.
I have ordered a 06 530i and I checked the status and it inidcated that it is in an "In Transit" status. Does anyone know the average time a car is "In Transit and how long it stays at the Vehicle Processing Center............and then on to the dealer?
Where are the Vehicle Processing Center's?
I am a first time BMW owner.
Thanks
Dealer profits are steady and that's a good indicator that your purchasing an excellent product even though you do wish that you could buy it for $100 over invoice and buy rate.
Now, if you are looking at a car with an MSRP of $50K, and you offered $47K, and they accepted.... then tried to add these fees on later, then that would be wrong..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
2006 525i
Premium Pkg
Cold Weather Pkg
Navigation System
45k
The vehicle is in transit and will be here by May 15th if I make the deposit by tomorrow. I've worked with salesman previous when I purchased a 2001 325i.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
same price. Don't fret the quick sale, I spent two hours at the dealership.
Does anyone out there own a titanium gray? I selected it sight-unseen,
went with the titanium gray at the last minute. I've always been partial
to the dark grays, but the brochure color sample looks a bit green
in the light.
DL
Options:
Steptronic
Cold Weather Package
Premium Sound Package
Sports Package
Nav System
SAT Radio
MSRP: $64,740
Sale Price $62,000 (sales rep said he can go a little lower.
Total Down Payment: $2,785 (nothing else out of pocket)
Monthly Payment: $776.97 (36 months 36k miles)
Taxes are in monthly payment, I live in NJ taxes are 6%
Thanks for the help I want to close today.
$777 1st payment
$800 security deposit
$625 acq.fee
$37 tax on acq.fee
That equals $2239... That leaves $546 for registration/title fees, etc? If they can justify those fees somehow, then most of the lease is good.. base money factor, etc... Price is just okay.... I'd be happier with another $800 off the price.. $800 lower would drop the payment by $24/mo..
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I think you'll really like it. It doesn't show dirt as much as many dark colors, but it shines like anything in the sun.
Oh and I'm not a fan of silver grey.
DL
can KYFDX tell us about how much this 2% decrease raises a typical monthly payment?
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator