Thanks for the reply. Are the best deals only on the 525i and 535i models? I see an MF of .0009 for those two cars and a .0016 for the xi. Is this correct?
This forum is just fantastic. I relied on it 3 years ago when I leased my first 525, and it came through again for me this time.
Last month, I ordered a 2007 525i PP, CWP, Navi, Sirius, manual tranny (the only way to fly).
MSRP: $49,440 (includes destination) Sale price: $46,640 36 Mos/10K Miles per year Money factor: .0005 Resid: 63% $0 down payment Monthly payment: $497.41 including tax
I am paying sec dep ($500), 1st month, $625 acquisition, title transfer fee up front. I'm getting a 1K rebate from BMWCCA (awesome club benefit). The dealership is also enrolling me in its premium customer program (a $500 fee that was free to me) which gives me a dollar-for-dollar credit toward the purchase of my next bimmer for every dollar that I spend in the service department, plus a free annual detailing, free car washes all year, BMW loaners, free pick up/drop off, blah, blah, blah. I pick it up in a couple of days, and I'm thrilled.
Listen to the mods here and in the Lease section! Get the $625 acq fee. Don't pay more than the buy rate for the MF. You can do it.
Don't go into the dealership until it's time to sign. Emailing is your friend. Once the dealerships start bidding against each other, you gain control. You must create competition. Some dealers will start by indignantly telling you that there is no way they are accepting your offer. Fine, if they can get more money for the car, they should sell it to someone else. But this is the second time that I got multiple dealerships to bid against each other. It takes patience and persistence (and leasing right before the 2008 refresh goes into production ).
You can get a good deal. Yes, use email and several dealerships.
Negotiate the lowest cost. I got a 530i, premium, step, cold weather, HD radio: MSRP: 52,500; my price $50,000. $1K back from BMWCCA.
Then negotiate the lease: in my case, 0 down, no security payments, MF .0007, 36 months, 12K, $470/mo before local sales tax.
Then refuse to concede repairs on your turn in. They wanted $600 for scratches. I said I'd do $100 for 1 hour tech time to shoot and polish it and told them I'd walk if that wasn't good enough. They agreed.
Bottom line: it's all one deal. Don't let them try to get you to negotiate the buy, the lease and the turn-in with three different people. Think of it as one deal. Be pleasant but firm -- and fair. I was ready to pay a few bucks for scratches, just not the outrageous price they wanted.
Again, be preapred to walk -- and walk if you don't get what you want. Don't get mad. As long as the deal you propose is fair, be confident in your position.
Remember: BMW's are a commodity, not some kind of special item. Buy it like a commodity.
Until 1/2/06, the buyrate was .0005 on the 530i. Don't know what it is now. Buyrates veries by time, car, lease duration and probably phase of the moon for all I know.
Search this site for the actual buyrates. Anything above the buyrate benefits the dealership. Buyrate is what they get the money for from BMW finance. If they do a deal above that, they benefit.
Remember where they make their money in a lease:
1. The profit on the car and its options. 2. The residual value, because they almost always resell the off-lease car many $K above the residual value. 3. The spread between the buyrate from BMW and the lease rate MF. Salesreps will almost always lie to you about the MF, saying that it's set by BMW. It's not. The buyrate is. 4. Profit on repairs to the turned-in car. This last is usually very small, but still part of the same deal.
One more thing: this was my 4th BMW. I've learned the game, of course; but as important is that the salesrep knows I'm a serious buyer who knows the game. It helps. Cheers
I'm puzzled by the concept of prepaying security deposits in exchange for reduced money factors (MF).
Essentially you're prepaying X months of the lease, because "security deposits" are just lease months.
Somehow this is connected to the effective annual interest rate on the lease -- the MF times 24, I think. So, someone above pays 7 security deposits -- 7 months of their lease --for a reduced MF.
Sorry, I can't figure this out, but somehow I think security deposit prepays are a means to get screwed by the dealer.
You aren't prepaying any of your payments by making the multiple deposits. The deposits go to BMWFS, which holds them (in interest bearing accounts, for their benefit), and in turn, gives you a lower money factor. At the end of the lease, that money is returned to the lessee, just as any other security deposit would be.
The dealer has no financial interest in it, either way.
Actually, it is a very good deal for the lessee.. Typically generating a return of 8%-14% APR return on the amount deposited, in the form of a lower lease payment.
Personally, I'm not sure why the captive finance companies do this (Lexus and Infiniti have similar programs). It might have something to do with lowering the default rate on those leases.
If you have the cash on hand, earning 5-6% or less... then, it is a very good deal.
Thanks. It reduces BMWFS' risk, so they can reduce your interest rate. Of course, it makes sense unless you can get a low MF without the deposits. I'd go for the lowest MF without deposits first.
I am in the CHicago area and am pretty certain I will lease a 530 today. Any reason to get the 530xi over the 530i? I know it will be better in the snow but how will the 530i handle? The MF is much better on the 530i and I can get more options. Any input is apprecaited.
In market looking to buy a 2007 530i. Need experience of what other buyers are paying over invoice within the Texas market. Any help or thoughts would be greatly appreciated.
I am a little confused about things that I have read and what I have been told from the BMW dealer. First, the dealer told me that since I submitted my credit app last month that I was locked into last months money factor. Is this true. I would lease either a 525 or 530 but my local dealer doesn't seem to want to quote both over email. They also tell me that Nav is a very difficult option to get. How do I get the $1000 rebate from BMWCCA? Thanks
I fear that buying an 04 CPO may not be that attractive compared to leasing an 07, if, say, you only want it for couple of years:
Say the avg. price for 04 530i is about $35k with around 30k miles, after two years the price drops to about $22k (used 02 530i used price as reference) and your cost of owning is about $13K which means > $500 month.
The current lease on a new 530i is about $500/mo according to some members mentioned earlier.
Well right and wrong. That dosent include tax. Also remember thats just for 10K/yr and for some one who going to drive 15L/yr like me that extra 10K for 3 yr lease, which is 2000(.2$/mile) extra. Lease 525i total payments 16000+3000down+2000 excess miles= 21K or 7K/yr or 600/month CPO 525i 32K and around 20K after 3 yrs or 4K/yr? or 350/month.
All of above is obviously rough and rounded out to nearest round digits. Point is for ppl like me who plan to drive high milage and put 50K in 3-4 yr it worth it if they plan to buy another CPO down the road? But you know there is always something special breaking in a zero meter car!!!!!!!! Adam
PS Again what are the special APR or promotions from BMW?
one other thought to all these threads. The BMW Visa Card is a great deal and can actually wipe out any mileage overage if you use it frequently. Look at BMWUSA websits and call them, too. They'll explain the points to you and it really pencil's out. Unless you carry a monthly balance and then the interest rate is horrible. But for those of us who pay it off every month, you can get into a cheaper lease and make up the difference with the points at the end.
Why would dealer choose to not use December MF for Approval from December? Is a lock for 60 days? If so when would an approval expire made the last week of Dec?
Is $560 per month (28) with only 1st pmt down and dmv using Dec lease rates unrealistic for a base 525i with only auto and cold weather?
Why wouldn't they? No particular reason... they just don't have to do it.
If you locked in December, you have until the end of the February program.
I don't recall the exact specifics of the December lease program, but I do know that 28 month lease was a great deal.. Under that program, I think $560/mo. wouldn't be a problem for a 525i that had an MSRP of under $50K.
Okay, I'd appreciate help on how I might better this deal:
2007 525i MSRP $46,220 Selling to me for $44,690 .00085 MF 36 month/12k per year $1,495 due at close (1st payment, sec dep, destination charge & registration) $589/month which includes a 10% monthly lease tax
They also offered if I put down add'l 7-month sec dep to bring the MF to .00036 for a payment of $549 (again includes 10% monthly tax)
They put out a nice monthly magazine (Roundel) that is included in that price.. BMWNA has rebates on new and CPO BMW purchases for CCA members with at least one continuous year of membership.
2) MF: marked up from base rate of .00065.. ask for base rate.
3) To get your number, have to assume $825 added to CAP cost for acquisition fee. This is marked up $200, also.
4) $1495 due at close? $589 1st pymt, $600 security deposit.. That leaves $300 for title/license fees. Might be a little padding there, or could be accurate for DC.
The multiple security deposits is a good deal, but doesn't seem right to pay a marked up rate, before deducting for them..
BMW Visa card doesn't sound good. The card earns 1 point every $2 spend. 10,000 points earn you a $100 check. That's really 0.5% cash back. There other credit cards with 1-1.5% cash back on EVERY purchase and upto 3% back on gas.
I'm planning to buy a 525xi. Wasn't aware of the kind of deals that can be negotiated. Is there any website that would help with this ? Also, I contacted South Bank Auto Leasing. Has anyone dealt with them ?
Hey can you give me the dealership name and dept the person you work with to get this done? I'm also in Phx and not to happy with the deals. What was your money factor? sunyen71@hotmail.com
I am looking to lease a 525i but I am having a hard time finding any on the local dealerships (Miami/Ft Lauderdale area). If I order one out of Braman the best deal I got was:
MSRP 47,470 $2,500 cap reduction 12K miles
Monthly PMT of $499 before tax ($535 after tax)
Have not gotten to all of the other details yet since the other dealers don't have the car on inventory, if you know of any dealers in Florida that can help please let me know!!!!!
I need it on Feb 23rd (my old lease is due on that date)
I live in Coral Gables and went up to Lauderdale Imports to order my 530i. They gave me a better deal than Braman or South Motors would. But mine was a manual transmission, and I had to order it to get the specs I wanted. Painless process, took about 6 weeks, which you don't seem to have. I would try going to these dealers to see who is willing to trade for a 525 from another dealership in the state. Tey do this all the time.
I recently read in an interview with BMW NA CEO that they purposely keep inventory levels in the US down at 20 selling days, versus about 60 for other makes. This supposedly helps with the resale value of their cars. I don't know. Maybe you can get the dealer to lend you a service loaner in what the new car arrives after you turn in your other car. That may be wishful thinking.
I called a Southern Cal dealer and they told me there's a shortage of 530xi/550i. Their next shipment is due in March.
Anyhow, I'm looking around but couldn't find any good deals. Does anybody know what's the latest MF (or base rate) on a 530xi/550i for 12k/year 3year lease?
I have been searching for a 2007 525i lease 15K 36 months and the dealers in Southeast/Central Virginia area are not even coming close to the reported 0.00075 with 60% residual from leasecompare, best I have been offered is 0.0023.
Southbankleasing has had the most favorable offer at 0.009 for 15K year 36 months.
All I hear from dealers is things like "there are only 2 cars on the whole Eastern Seaboard with your options" etc etc etc. I want automatic, premium, Xenons and heated front seats. Not too crazy an option package I would think.
I know inventory is low on the 2007 5 series right now. I showed South Bank's offer to my dealers here and none of them would even come close. One even told me that if I was looking for any discount I shouldnt waste his time. This was Casey Imports in Newport News VA. If you would like to pay full retail, I can highly recommend them.
I am planning to go with SouthBank leasing as they have been very easy to work with.
Best of luck to all, Im sure there are deals to be had, though you have to be prepared to work hard.
I'm looking at a 2005 CPO 525i w/ 47k miles. The car is loaded--Premiun package, Navigation, park sensors, sunshades, BMW assist, Sat radio prep, etc.. My local dealer has it priced at $39,995 which I think is very high, even for CPO vehicle.
What is a fair price for this vehcile? (my thinking is $32k-$34k). Are there any concerns over the mileage? I have seen clean CarFax and AutoCheck reports. It was corporate lease vehicle.
My local dealer says the MF for this is .0075; said it was .0065 last month. Is this right? He's also saying that the lease rate that BMWUSA posts on their website ($487-before taxes-on a $49k+ 525i) is not correct--that you have to taxes (which I understand) and fees? (which are $200+/month?! I've told them several times that I've seen deals all over the country with the lease payment (with multiple security deposits added on a 36 month lease) from $462-500/month. I am negotiating a 525i that is in stock--MSRP is $51k. Negotiated price at this time is $49,250. I'm in North Carolina--what should I ask for/expect? Have the lease deals changed dramatically for February?
The 525i MF for Feb is 0.0075. Provided it and that you will lease for 15k miles per year, 3-year lease payment will come to just $596 for the given car with $625 included into CAP. I f you have not had a Bimmer before, you will have to pay a security deposit as well + first + tag&title. I could not add tax, because I do not know how much is it in NC. You dealer is also telling the truth in regard to the money factor for January.
I got an offer for a 2007 530i, with premium, sports, automatic, nav, Logic7 sound, no rear sunshade
MSRP $57,170 Cap Cost $56,170 MF 0.00140 Residual 62% Monthly payment $728, including tax $788 Driveoff is $1279.
This is for a 3-year lease, 12k a year. No security deposit, $0 down, only drive-off. I leased with BMW before. In fact, it's the same northern California dealership I leased with.
Any feedback on whether this is a good deal or not?
Hi, My 2004 530i 44K shows occasional oil lamp when i turn off the engine only? Service sch shows 4900 miles left for oil change? What is going on? Any idea guys.
Comments
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.00008 MF (0.19% interest rate)
5x Security Deposits
$2500 down
$490 a month. 15k a year. 36 months. (Nashville BMW- Robert)
2006 530i, NAV, DVD, SAT, Premium, Cold, Steptronic with 12K miles for $43500?
Or am I better off leasing?
If you are comfortable with leasing, I think it is a better deal than buying, on this model.
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.0009 for those two cars and a .0016 for the xi. Is this correct?
525Xi = .0014
530i = .0009
530Xi = .0016
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Last month, I ordered a 2007 525i PP, CWP, Navi, Sirius, manual tranny (the only way to fly).
MSRP: $49,440 (includes destination)
Sale price: $46,640
36 Mos/10K Miles per year
Money factor: .0005
Resid: 63%
$0 down payment
Monthly payment: $497.41 including tax
I am paying sec dep ($500), 1st month, $625 acquisition, title transfer fee up front. I'm getting a 1K rebate from BMWCCA (awesome club benefit). The dealership is also enrolling me in its premium customer program (a $500 fee that was free to me) which gives me a dollar-for-dollar credit toward the purchase of my next bimmer for every dollar that I spend in the service department, plus a free annual detailing, free car washes all year, BMW loaners, free pick up/drop off, blah, blah, blah.
I pick it up in a couple of days, and I'm thrilled.
Listen to the mods here and in the Lease section! Get the $625 acq fee. Don't pay more than the buy rate for the MF. You can do it.
Don't go into the dealership until it's time to sign. Emailing is your friend. Once the dealerships start bidding against each other, you gain control. You must create competition. Some dealers will start by indignantly telling you that there is no way they are accepting your offer. Fine, if they can get more money for the car, they should sell it to someone else. But this is the second time that I got multiple dealerships to bid against each other. It takes patience and persistence (and leasing right before the 2008 refresh goes into production ).
Negotiate the lowest cost. I got a 530i, premium, step, cold weather, HD radio: MSRP: 52,500; my price $50,000. $1K back from BMWCCA.
Then negotiate the lease: in my case, 0 down, no security payments, MF .0007, 36 months, 12K, $470/mo before local sales tax.
Then refuse to concede repairs on your turn in. They wanted $600 for scratches. I said I'd do $100 for 1 hour tech time to shoot and polish it and told them I'd walk if that wasn't good enough. They agreed.
Bottom line: it's all one deal. Don't let them try to get you to negotiate the buy, the lease and the turn-in with three different people. Think of it as one deal. Be pleasant but firm -- and fair. I was ready to pay a few bucks for scratches, just not the outrageous price they wanted.
Again, be preapred to walk -- and walk if you don't get what you want. Don't get mad. As long as the deal you propose is fair, be confident in your position.
Remember: BMW's are a commodity, not some kind of special item. Buy it like a commodity.
Good luck.
Thanks
Search this site for the actual buyrates. Anything above the buyrate benefits the dealership. Buyrate is what they get the money for from BMW finance. If they do a deal above that, they benefit.
Remember where they make their money in a lease:
1. The profit on the car and its options.
2. The residual value, because they almost always resell the off-lease car many $K above the residual value.
3. The spread between the buyrate from BMW and the lease rate MF. Salesreps will almost always lie to you about the MF, saying that it's set by BMW. It's not. The buyrate is.
4. Profit on repairs to the turned-in car. This last is usually very small, but still part of the same deal.
One more thing: this was my 4th BMW. I've learned the game, of course; but as important is that the salesrep knows I'm a serious buyer who knows the game. It helps.
Cheers
Essentially you're prepaying X months of the lease, because "security deposits" are just lease months.
Somehow this is connected to the effective annual interest rate on the lease -- the MF times 24, I think. So, someone above pays 7 security deposits -- 7 months of their lease --for a reduced MF.
Sorry, I can't figure this out, but somehow I think security deposit prepays are a means to get screwed by the dealer.
Anyone out there smart enough to figure this out?
Cheers
The dealer has no financial interest in it, either way.
Actually, it is a very good deal for the lessee.. Typically generating a return of 8%-14% APR return on the amount deposited, in the form of a lower lease payment.
Personally, I'm not sure why the captive finance companies do this (Lexus and Infiniti have similar programs). It might have something to do with lowering the default rate on those leases.
If you have the cash on hand, earning 5-6% or less... then, it is a very good deal.
regards,
kyfdx
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The MF is much better on the 530i and I can get more options. Any input is apprecaited.
Best
You can only get the $1000 rebate from BMW NA, if you have been a member of BMWCCA continuously for at least one full year, at the time of delivery.
regards,
kyfdx
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Say the avg. price for 04 530i is about $35k with around 30k miles, after two years the price drops to about $22k (used 02 530i used price as reference) and your cost of owning is about $13K which means > $500 month.
The current lease on a new 530i is about $500/mo according to some members mentioned earlier.
Am I correct or missing something?
Any input is highly appreciated.
Thanks!!!!!
Lease
525i total payments 16000+3000down+2000 excess miles= 21K or 7K/yr or 600/month
CPO
525i 32K and around 20K after 3 yrs or 4K/yr? or 350/month.
All of above is obviously rough and rounded out to nearest round digits.
Point is for ppl like me who plan to drive high milage and put 50K in 3-4 yr it worth it if they plan to buy another CPO down the road?
But you know there is always something special breaking in a zero meter car!!!!!!!!
Adam
PS Again what are the special APR or promotions from BMW?
Is $560 per month (28) with only 1st pmt down and dmv using Dec lease rates unrealistic for a base 525i with only auto and cold weather?
If you locked in December, you have until the end of the February program.
I don't recall the exact specifics of the December lease program, but I do know that 28 month lease was a great deal.. Under that program, I think $560/mo. wouldn't be a problem for a 525i that had an MSRP of under $50K.
regards,
kyfdx
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2007 525i
MSRP $46,220
Selling to me for $44,690
.00085 MF
36 month/12k per year
$1,495 due at close (1st payment, sec dep, destination charge & registration)
$589/month which includes a 10% monthly lease tax
They also offered if I put down add'l 7-month sec dep to bring the MF to .00036 for a payment of $549 (again includes 10% monthly tax)
How does this look? Thanks
BMW Car Club of America...
$40 annually, I think..
They put out a nice monthly magazine (Roundel) that is included in that price.. BMWNA has rebates on new and CPO BMW purchases for CCA members with at least one continuous year of membership.
Local chapter events (driving, safety, tech).
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1) Price: $1530 off MSRP.. I'd shoot for $2000
2) MF: marked up from base rate of .00065.. ask for base rate.
3) To get your number, have to assume $825 added to CAP cost for acquisition fee. This is marked up $200, also.
4) $1495 due at close? $589 1st pymt, $600 security deposit.. That leaves $300 for title/license fees. Might be a little padding there, or could be accurate for DC.
The multiple security deposits is a good deal, but doesn't seem right to pay a marked up rate, before deducting for them..
Here is how the deal should look.
46,220 MSRP
44,220 Selling price
44,845 CAP cost (selling price + $625 acq.fee)
.00065 money factor (base rate)
62% Residual (3yr/36K lease)
Payment = $498/mo.+tax = $548/mo.
Due at signing = 1st pymt, security deposit, title/license fees (around $1400?)
Make 7 additional security deposits?
.00065 - .00049 = .00016 money factor
Payment = $462.mo.+tax = $508/mo.
Hope this helps,
kyfdx
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07 530i
Also, I contacted South Bank Auto Leasing. Has anyone dealt with them ?
I am looking to lease a 525i but I am having a hard time finding any on the local dealerships (Miami/Ft Lauderdale area). If I order one out of Braman the best deal I got was:
MSRP 47,470
$2,500 cap reduction
12K miles
Monthly PMT of $499 before tax ($535 after tax)
Have not gotten to all of the other details yet since the other dealers don't have the car on inventory, if you know of any dealers in Florida that can help please let me know!!!!!
I need it on Feb 23rd (my old lease is due on that date)
I live in Coral Gables and went up to Lauderdale Imports to order my 530i. They gave me a better deal than Braman or South Motors would. But mine was a manual transmission, and I had to order it to get the specs I wanted. Painless process, took about 6 weeks, which you don't seem to have. I would try going to these dealers to see who is willing to trade for a 525 from another dealership in the state. Tey do this all the time.
I recently read in an interview with BMW NA CEO that they purposely keep inventory levels in the US down at 20 selling days, versus about 60 for other makes. This supposedly helps with the resale value of their cars. I don't know. Maybe you can get the dealer to lend you a service loaner in what the new car arrives after you turn in your other car. That may be wishful thinking.
Best of luck with your search.
Anyhow, I'm looking around but couldn't find any good deals. Does anybody know what's the latest MF (or base rate) on a 530xi/550i for 12k/year 3year lease?
http://www.bimmerfest.com/forums/showthread.php?t=188098
I have been searching for a 2007 525i lease 15K 36 months and the dealers in Southeast/Central Virginia area are not even coming close to the reported 0.00075 with 60% residual from leasecompare, best I have been offered is 0.0023.
Southbankleasing has had the most favorable offer at 0.009 for 15K year 36 months.
All I hear from dealers is things like "there are only 2 cars on the whole Eastern Seaboard with your options" etc etc etc. I want automatic, premium, Xenons and heated front seats. Not too crazy an option package I would think.
I know inventory is low on the 2007 5 series right now. I showed South Bank's offer to my dealers here and none of them would even come close. One even told me that if I was looking for any discount I shouldnt waste his time. This was Casey Imports in Newport News VA. If you would like to pay full retail, I can highly recommend them.
I am planning to go with SouthBank leasing as they have been very easy to work with.
Best of luck to all, Im sure there are deals to be had, though you have to be prepared to work hard.
Forgot one VERY important zero in my MF above
Should read 0.0009
equals Interest rate of 2.16%
What is a fair price for this vehcile? (my thinking is $32k-$34k). Are there any concerns over the mileage? I have seen clean CarFax and AutoCheck reports. It was corporate lease vehicle.
Thank you very much!
MSRP $57,170
Cap Cost $56,170
MF 0.00140
Residual 62%
Monthly payment $728, including tax $788
Driveoff is $1279.
This is for a 3-year lease, 12k a year. No security deposit, $0 down, only drive-off. I leased with BMW before. In fact, it's the same northern California dealership I leased with.
Any feedback on whether this is a good deal or not?
This is a pricing discussion... Try the BMW 5-Series Maintenance and Repair discussion..
regards,
kyfdx
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