Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

BMW 3-Series Lease Questions

13567111

Comments

  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi atfryar. BMW Financial Services' money factors for leases with 12,000 miles per year are the same as its 15,000 miles per year factors, but its residuals for a 12K lease are 2% higher.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am glad that you find this discussion so helpful, Lady A. BMW Financial Services' Owner's Choice program is what is known in the industry as a balloon note program. There is nothing wrong with balloon notes, but they are much much less popular than leases. As a result, I do not personally keep tabs on manufacturers' balloon note programs. Sorry. I can tell you what this car's lease payment would be though if you want.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello zman9. Let's take a look at your deal. The first think that I notice about it is that you are using the proceeds from your trade as a capitalized cost reduction for your lease. There's nothing wrong with trading a vehicle in when leasing, but you would be much better off having the dealer that you are working with cut you a check for your car than using the proceeds from it as a cap cost reduction. 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 330xu would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all.

    You mentioned that you are being given a $1,200 discount on this car. That's not bad, but given the fact that there is over a $3,200 gap between the full MSRP and dealer invoice price of a base 2006 BMW 330xi I would not be surprised if you were able to negotiate a bigger discount by shopping around. You may want to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 3-Series: Prices Paid & Buying Experience".

    Let's calculate a lease payment on this car using BMW's actual base lease program assuming a $2,000 discount and no cap cost reduction from your trade and see what sort of payment we come up with. According to my calculations, if you were to lease a 2006 BMW 330xi with an MSRP of $44,020 and a selling price of $42,020 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $577.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi igoose. One of the most important things to remember when leasing is that the selling prices of leased vehicles are negotiable, just as if you were paying cash or financing. I would be happy to give you an idea of what sort of lease payment to expect on this car, but in order for me to do so it would be a big help if you provided me with its full MSRP and an approximate selling price. You can get a good idea of how much you should pay for this car in your area right now by visiting the following discussion: "BMW 3-Series: Prices Paid & Buying Experience". Once you have these numbers, let me know and I will use them to calculate a lease payment using BMW Financial Services' current base lease program for you.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi sj233. You are getting $1,500 off of this car's MSRP, which is a reasonable deal. Another good sign is that the dealer that you are working with is using BMW Financial Services' current buy rate lease money factor for this car, .00250, to calculate your lease payment rather than trying to mark your car's factor up to add additional back-end profit to your deal. I just estimated what your car's lease payment should be like using the prices that you gave me and I came up with a 36 month, 15,000 miles per year, zero down, pre-tax monthly payment of $529. As you can see, this is a little lower than the payment that you were quoted for a similar lease. One possible explanation for this would be if you were having your car's security deposit waived or were rolling BMW FS' $625 acquisition fee rolled into your car's capitalized cost instead of paying it at lease signing. If you are paying both of these items at signing, you need to find out why the payment that you were quoted is higher.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings luv2run. The selling price that you were quoted for this car is good, but the money factor and acquisition fee are not. BMW Financial Services' buy rate lease money factor for consumers who pay a security deposit at lease signing is currently only .00250. It appears to me as though the dealer that you are working with is marking BMW's base factor up to add additional back-end profit to your deal. This sort of practice is perfectly legal and happens all the time with luxury brand dealers, but it can usually be avoided by confronting the dealer that you are working with with the buy rate or by shopping around. The dealer that gave you this quote is also marking-up BMW FS' normal acquisition fee of $625 by $200. Make sure to negotiate this mark-up out as well.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi speedy19. While dealers can add options or something called ADM (Additional Dealer Mark-up) they cannot pad vehicles' actual MSRPs. The full MSRP, including destination charges, of a 2006 BMW 325i is indeed currently the $31,595 that you were quoted. The selling price that you were quoted looks good to me. It is around $1,000 over invoice. The money factor that you were quoted looks good to me as well. It is in line with BMW Financial Services' buy rate factor for this car. I don't understand how the lease payment that you were quoted is so high though. Using the prices that you were quoted, I come up with a zero down, pre-tax monthly payment of around $422, assuming you pay an acquisition fee and security deposit at lease signing. The dealer that you were speaking with told you the truth, BMW Financial Services charges an acquisition fee of $625 on all of its leases. All consumers must pay this charge at lease signing, unless they agree to an increase in the money factor that is used to calculate their payment to have it waived or add it into their vehicle's capitalized cost. In fact, the dealer that you are working with was being good by not trying to mark this charge up. Many dealers pad it by a few hundred dollars to add additional hidden profit to deals.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello ikmarco. 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. I would be more than happy to give you my opinion on this deal if you let me know what its selling price is.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on your new car, speedy19. The $350 charge that you mentioned is known in the industry as a lease disposition fee. Many banks charge their lessees some sort of lease-end fee like this. BMW FS will waive this fee for consumers who lease another vehicle through them.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • isamu66isamu66 Member Posts: 12
    Speedy, where is this dealership/name of salesperson you got this deal from? Thanks,

    Charles
  • Kirstie_HKirstie_H Administrator Posts: 11,146
    From just above the message box:
    You may include the dealership name, city and state in your post. Please do not post names of salespeople, telephone numbers, email addresses, or other contact information.

    Please don't ask for names of salespeople - Thanks!!

    kirstie_h
    Roving Host
    Host, Future Vehicles & Smart Shopper discussions

    MODERATOR /ADMINISTRATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • aussiem8aussiem8 Member Posts: 27
    Car_man,

    If you chose to waive the $625 acquisition fee with BMW, roughly what would be the incremental cash cost over the life of the lease if you either capitalized it into the cost or went with the higher money factor? In other words, what would you recommend, pay it up front or not?
  • kyfdxkyfdx Moderator Posts: 235,200
    If you capitalize it into the monthly payment, it is $625/term.. For example $625/36 = $17.36/mo.. It will actually be slightly higher than this, as the $625 in the cap cost will be subject to the money factor.. Maybe add another $1.00-$1.50 per month to account for that....

    I always recommend rolling it into the payment, for the same reason that you wouldn't want to make a cap cost reduction...

    Rolling it in is cheaper than having it waived...

    regards,
    kyfdx
    Host-Prices Paid Forums

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • wagon098wagon098 Member Posts: 4
    I was wondering if this was a fair quote on a 36month/10000 miles per year lease:
    325 xi wagon
    msrp 40520 (including metallic paint, premium package, automatic transmission, heated seats)
    dest. charge 695
    shipping freight for shipping car from out of state dealer 800
    tax here is 6.25
    0 down, rolling taxes into the monthly payment
    paying only a security deposit and first month payment at delivery
    $681 per month
    Thanks
  • wagon098wagon098 Member Posts: 4
    In case the wagon didn't work out (see above post), I also go a quote on a 325i 36mon/10000 mile lease. 30,900 msrp plus 1275 auto trans, 475 metallic paint, 75 sat. radio prep, 695 dest. charge for total 33420. Discounted to 32670. 0 down, rolling taxes and fees into the monthly payment.
    Paying only a security deposit and first month's payment at delivery.
    $572 per month.
    This seems a little high to me using a money factor of .0025 and a residual of 63%. Sales tax is 6.25%.
    Am I using the wrong numbers for mf and residual? Also, what would be a fair price?
  • bdr127bdr127 Member Posts: 950
    This seems a little high to me using a money factor of .0025 and a residual of 63%. Sales tax is 6.25%.

    .0025 is the base money factor for a 325i.... (i.e. dealer is making no extra money on you)
  • kyfdxkyfdx Moderator Posts: 235,200
    Did they say that they were using .0025 as the money factor? Because adding in the acquisition fee to the selling price of $32,670 gives you a cap cost of 33,295.. and a residual of 64%.. (63% is the residual for 12K/yr).. and using an MF of .0025, results in a payment of $468/mo. + tax...

    So, someone is making extra money somewhere.. I doubt tax could account for over $100/mo..

    If they are quoting 12K mi./yr, a residual of 63% and marking up the money factor the maximum to .0029, then the payment would be $498/mo.+ tax.. Still, far below your payment..

    I think you need to ask them what cap cost they are using to calculate the lease... and what is in it... There shouldn't be anything other than your selling price and acquisition fee ($625)... I'm guessing there is a lot more than that..

    regards,
    kyfdx
    Host-Prices Paid Forums

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • jon330cicjon330cic Member Posts: 20
    I'm scheduled to pick up a 2006 330i on 02-Jan-2006 in Munich. This would put the contract date at the middle of Dec-2005 (14 days ahead of pickup).

    Does the 60-day period for locking in lease terms count backwards from the Delivery date (Jan-06) or the Contract date (Dec-05)?

    I'm doing a 3-yr, 12K/yr lease. The October program was a big improvement over previous months. If I can lock in 60 days ahead of the Contract date, I can do the Oct program. If the lock in is from Delivery date, I will have to wait for the Nov program.

    Also, anyone hear rumors yet on what the Nov lease programs will look like?

    Thank you!
    Jon
  • kyfdxkyfdx Moderator Posts: 235,200
    Lock it now... the lease program in effect at the time you have to pay for it, will be the one they use (December)... or, of course, October's program if it is better and you lock this month...

    regards,
    kyfdx
    Host-Prices Paid Forums

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • wagon098wagon098 Member Posts: 4
    Thanks for the reply. They did not tell me mf .0025 and 64% residual. I went back to the dealer and asked for specifically for the base mf and 64% residual and I'm currently waiting for a reply.
  • isamu66isamu66 Member Posts: 12
    I love this forum...it has been extremely helpful in my negotiations...

    I am looking at a 325i, but only after I sell my 2003 Tahoe through private party. I did consider trading it in through the dealership, but I know they will try to nickel and dime me. I set up a little Excel worksheet to help me in the lease calculations.

    Originally the salesperson offered a money factor of 0.00265...but after reading this forum, I knew to ask for 0.0025

    The salesman offered a money factor of 0.00265 if I choose not to pay the security deposit of approx. $500. A lower money factor of 0.0025 is offered if I pay the security deposit.

    After playing with the numbers, my spreadsheet is telling me that the lower higher interest and no security deposit means the lower monthly payment.

    The salesperson is also trying to pass off an $825 bank fee, but after reading this forum I know to ask for $625. He is also passing off document fees and tire tax, which I will also ask to be removed.

    I am just basically looking right now for the best configuration, but I wanted to post how thankful I am to have found this forum!

    Charles
  • bdr127bdr127 Member Posts: 950
    The salesman offered a money factor of 0.00265 if I choose not to pay the security deposit of approx. $500. A lower money factor of 0.0025 is offered if I pay the security deposit.

    Just a note here... You do still pay the security deposit (which, btw, you get back at the end of the lease), but it is rolled into your cap cost at a charge of a .00015 MF increase. My point is that it doesn't just "disappear"....

    He is also passing off document fees and tire tax, which I will also ask to be removed.

    What state are you in? "Tire tax" is actually a legitimate state tax in some states. (FWIW, I'd think if a dealer claims it is a "tax" then it's a government thing and isn't just an additional fee.) I know, for instance, that PA, NJ, and OH have tire taxes.... Everyone has to pay them, unfortunately. It seems like a bogus way for the state to collect more revenue.... Leave it up to our politicians! :P
  • kyfdxkyfdx Moderator Posts: 235,200
    The payment may be lower, if you waive the deposit and take the higher money factor, but your total cash outlay over the life of the lease will be higher...

    What did you miss in your calculations? You get the $500 back at the end of the lease...

    regards,
    kyfdx
    Host-Prices Paid Forums

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • speedy19speedy19 Member Posts: 71
    Hello Charles,

    I bought it from Santa Monica BMW.
  • speedy19speedy19 Member Posts: 71
    Hello Carman,
    Once again, I cannot thank you and the rest of the forum for all of your help. I really appreciate it. The car buying experience is extremely tricky (and expensive) without people like you to clarify things for us.
    You are indeed right, my pretax monthly is $422, if I did not capitalize the acquisition fee and add tax. With tax and acquisition fee rolled into my monthly, it works out to $471 (DAMN THATS ALOT OF MONEY!) im just a student tryin to get by! haha.
    By the way, is the residual values negotiable. I got 15k miles / year on the 06 325i with a residual of 61% (could we have negotiated 62%??)... anyway I really appreciate your help.
    Thanks,

    Ajay

    PS for the other poster who asked where i got the deal, I got it in Santa Monica BMW in California.
  • isamu66isamu66 Member Posts: 12
    You are correct...thanks for the clarification!

    I think it sounds better to pay the security deposit upfront and take the lower MF.

    The tire tax was something I thought could be just waived off in a tight deal, but I guess its something I will have to pay as well.

    Just so I am clear, I can choosed whether or not to pay off or roll into the cap cost the Acquisition Fee, DMV Fee and/or Security Deposit, correct? Thanks,

    Charles
  • r3lr3l Member Posts: 1
    Car_Man or other host:

    I haven't made my final deal, but can you tell me what you think about my options just based on MSRP? This is the deal I can get if I want to pay MSRP (which I won't, of course):

    Lease: MSRP $34415, 10K down, 3 yr @ 30K mi/yr, $350/mo, $14200 residual
    I have no idea yeat about money factors, etc. or what any of that really means.

    Purch: MSRP $34415, 10K down, 5yrs, about $490/mo (@ 5.25%).

    Thank you,
    R3L

    I will put right at 30K mi/yr on the car. I can't see how the lease is a bad deal, but I know very little about leases. What do you think?
  • isamu66isamu66 Member Posts: 12
    Well, I am still learning as well, but I am pretty sure that if you plan on driving 30k miles per year, then you are not a good candidate for leasing a vehicle. The problem is that most leases only allow up to 15,000 miles per year on the lease and usually charge you a huge fee ($20 cents per mile) over your contracted rate.
  • silver17silver17 Member Posts: 6
    Anyone have them yet? If not, when do they come out? Thanks!
  • isamu66isamu66 Member Posts: 12
    Car Man,

    I have a question. I recently checked my credit score and noticed a negative account that is not mine. I am currently fighting with the 3 credit bureaus and the collection agency to get it off my record. Because of this, my estimated FICO score is now in the low to mid 600's.

    What does this do to the lease? How much of an increase will this do to the money factor? Thanks,

    Charles
  • bdr127bdr127 Member Posts: 950
    If you challenge the record and the other party does not fight it, I believe then it is automatically removed after 30 days.... (someone correct me if I'm wrong) If that's the case, then see if you can wait until then to buy a car.

    BMW's lease program is not tiered... What that means is that it is "pass/fail". You are either approved or not, and there is no increased rate for different levels of credit. You could see if you could get approved in your current situation.... Regardless, I would work to resolve your issue, whether you buy a car now or later.
  • 325i06325i06 Member Posts: 1
    I've ordered my 325i with the following config
    Titanium Silver exterior
    Black Leatherette
    Sport package
    Navigation system

    The MSRP is 36945 and my dealer is giving it to me for 35K
    The MF he is using for my lease is 0.0025 with 625 acquisition fee.

    From what I've read so far on this forum, this is a sweet deal. its about 1K more than the invoice and everything else seems to be set by BMW.

    However, starting November 1st, I noticed that the lease on the "basic" 325i has gone down from $407 to $398 (see the BMW website). Does anyone know the new terms (like MF). I believe that you can always get lower rates if the MF reduced. Any idea if dealers do this easily?
  • kyfdxkyfdx Moderator Posts: 235,200
    I don't have the new rates, but if your dealer has already agreed to use the base rates, then he likely won't have any problem using the "new" rates, if it is a better deal for you..

    regards,
    kyfdx
    Host-Prices Paid Forums

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • isamu66isamu66 Member Posts: 12
    Hey guys, another quick question here...

    Do you guys know the following under these two different scenarios? Thanks,

    1) Money factor
    2) Residual

    325i
    24 month lease/15,000 miles

    325i
    36 month lease/15,000 miles
  • kimberly0614kimberly0614 Member Posts: 1
    I am very new to leasing, so I am a little confused. I am currently shopping online and at dealerships in South Carolina. I can honestly say that I really don't know what to ask for...Can someone tell me what a good deal would look like?

    This is what I want:

    Jet Black
    4-door sedan
    standard features
    36mo/12,000 miles
    $0 down

    What type of residual, money factor, etc. should I look for? Thanks!!!
  • nvnicknvnick Member Posts: 50
    BMWFS Lease Programs – Effective 11/3//2005

    2006 MODELS

    Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms

    325Cic Conv

    24 mo/15k mi – 70% Residual Value – Money Factor .00260 Base Rate
    36 mo/15k mi – 60% Residual Value – Money Factor .00260 Base Rate
    48 mo/15k mi – 48% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 39% Residual Value – Money Factor .00285 Base Rate

    325Ci Coupe

    24 mo/15k mi – 64% Residual Value – Money Factor .00150 Base Rate
    36 mo/15k mi – 57% Residual Value – Money Factor .00150 Base Rate
    48 mo/15k mi – 43% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 35% Residual Value – Money Factor .00285 Base Rate

    325i Sedan

    24 mo/15k mi – 71% Residual Value – Money Factor .00250 Base Rate
    36 mo/15k mi – 62% Residual Value – Money Factor .00250 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00285 Base Rate

    325xi Sedan

    24 mo/15k mi – 70% Residual Value – Money Factor .00250 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00250 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00285 Base Rate

    325xiT Wagon

    24 mo/15k mi – 70% Residual Value – Money Factor .00200 Base Rate
    36 mo/15k mi – 60% Residual Value – Money Factor .00200 Base Rate
    48 mo/15k mi – 43% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 36% Residual Value – Money Factor .00285 Base Rate

    330Cic Convertible

    24 mo/15k mi – 69% Residual Value – Money Factor .00260 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00260 Base Rate
    48 mo/15k mi – 47% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 39% Residual Value – Money Factor .00285 Base Rate

    M3 Convertible

    24 mo/15k mi – 66% Residual Value – Money Factor .00285 Base Rate
    36 mo/15k mi – 58% Residual Value – Money Factor .00285 Base Rate
    48 mo/15k mi – 48% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 41% Residual Value – Money Factor .00285 Base Rate

    330Ci Coupe

    24 mo/15k mi – 67% Residual Value – Money Factor .00150 Base Rate
    36 mo/15k mi – 57% Residual Value – Money Factor .00150 Base Rate
    48 mo/15k mi – 42% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 34% Residual Value – Money Factor .00285 Base Rate

    M3 Coupe

    24 mo/15k mi – 70% Residual Value – Money Factor .00285 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00285 Base Rate
    48 mo/15k mi – 51% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 42% Residual Value – Money Factor .00285 Base Rate

    330i Sedan

    24 mo/15k mi – 69% Residual Value – Money Factor .00195 Base Rate
    36 mo/15k mi – 62% Residual Value – Money Factor .00195 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 36% Residual Value – Money Factor .00285 Base Rate

    330xi Sedan

    24 mo/15k mi – 69% Residual Value – Money Factor .00225 Base Rate
    36 mo/15k mi – 61% Residual Value – Money Factor .00225 Base Rate
    48 mo/15k mi – 45% Residual Value – Money Factor .00285 Base Rate
    60 mo/15k mi – 37% Residual Value – Money Factor .00285 Base Rate
  • ckm1515ckm1515 Member Posts: 52
    What do you think of this deal?

    2006 330xi
    SG
    Terra Int
    Alum Trim
    Automatic Tran
    Prem Pack
    Cold Weather
    Comfort Access
    MSRP $45,395
    Initial Cap Cost $43,295
    3 years/45K
    LRF .0024 (buy rate was .0022, dealer wanted .00265, split diff)
    $0 down monthly payment $647.36
  • vsaxenavsaxena Member Posts: 211
    Is there a board where we can discuss 3rd party lease companies? I have heard stories of people getting better deals with 3rd party lease companies. They typically have lower MF but lower residuals. Though the monthly payment might come out to be the same, you come out ahead since you have more equity in the car. That helps if you want to get out of the lease early, buy out at the end or sell the car at the end. However, there are not too many sources available. Even big banks like Wells Fargo do not have direct consumer leasing services. It is up to the dealer to contact them if they want to. Are folks aware of ways to get access to 3rd party lease numbers?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'm glad that you have found this discussion so informative, Charles.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome Ajay. Vehicles' residual values are not negotiable. Individual dealers do not have the authority to alter banks' published residuals.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings R3L. 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. I would be more than happy to give you my opinion on this deal if you let me know what this car's selling price is.

    Since you mentioned that you do not know what the terms lease money factor, residual value, etc... mean you definitely should do some research prior to leasing a new vehicle. the less you understand the leasing process, the more likely it is that you will be taken advantage of. 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.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi silver17. I have had an opportunity to take a look at BMW's November lease program and would be happy to answer any specific questions that you have about it.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I am sorry to hear about the errors on your credit report, Charles. They can be very frustrating. At least you were smart enough to check your report and do something about the errors. While some banks have different lease money factors for consumers depending upon what their credit score is, BMW Financial Services essentially uses a pass / fail system. Either you qualify for its lease program or you don't. I suspect that you will qualify to lease a vehicle through BMW FS, even with the problems with your credit report, but I cannot guarantee that will be the case.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi 325i06. It sounds like you are getting a great deal on this car. I noticed that BMW lowered its advertised lease payment on the 2006 325i as well. They must have cut the assumed dealer gross in the advertised lease because this car's lease money factors are the same in November as they were in October.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the information that you are looking for, isamu66. If you were to lease a 2006 BMW 325i through BMW Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 71%, respectively. the numbers for an otherwise identical 36 month lease should be .00250 and 62%.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome kimberly0614. 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.

    Take a look at my previous post to get an idea of what this car's lease program is like right now. In addition to getting the dealer that you are working with to use this lease program to calculate your car's lease payment, you need to make sure that you negotiate an attractive selling price. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You should be able to get an idea of what a good price is for the car that you are interested in right now by visiting the following discussion: "BMW 3-Series: Prices Paid & Buying Experience".

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi ckm1515. Let's take a look at the deal that you were quoted. You are being given a $2,100 discount on the 2006 BMW 330xi that you are interested in. This car has a difference of just over $3,600 between its full MSRP and invoice prices. The selling price that you were quoted looks reasonable to me. I personally would be annoyed with the lease money factor mark-up though. I prefer that dealers make money on the front end of my deal to keep everything as straightforward as possible. If a $1,500 profit on this car is what they want, why do they have to try to trick consumers to make more money on the back-end. Well, OK I probably would do the exact same thing if I was in their shoes, but that doesn't mean that you have to let them. Overall I'd say that this is a fair deal, but if there is a decent amount of competition for your business in your area you may be able to comparison shop and do a little better.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi vsaxena. While a lot of the posts that are made in the Lease Question discussions are about deals through manufacturers' captive finance companies, community members are absolutely free to discuss leases through independent banks. Just make sure that you are talking about the appropriate model in the discussion that you are in, i.e. post messages about leasing a BMW 3-Series through an independent bank in this area. Unfortunately, like captive finance companies most major banks that lease vehicles do no deal directly with the general public. If you want to lease a new vehicle through them, you usually have to go through a dealer.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • vish_dcvish_dc Member Posts: 16
    Hi,
    I have recently started looking into leasing a 325i sedan. I am aware that the sale price is negotiable, but I would like to know if the money factor is negotiable or is it something that is set by BMW? Also, are there any other elements of the lease that are negotiable?

    Thanks,
    Vish
  • analogkid1analogkid1 Member Posts: 10
    Hi Car Man,

    I'd like your opinion on this offer:
    325xi 2006, MSRP $39,020, selling price $37,695, 36 month lease 18K miles per year $617. Don't have the MF factors or residual numbers. Seems high compared to other numbers thrown around in various posts, but I think it may be due to the 18K miles. What do you think? What should the MF and residual numbers be? Thanks.
This discussion has been closed.