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BMW 3-Series Lease Questions



  • Hi. I'm considering a 2013 335xi. MSRP 57K. Discounts of 4k, Rebate of $1.5K. Fee $925.
    Lease 12k miles/yr. I'm being offered MF .00165 and residual of 57% 36 mths (60% for 30 mths).
    Are these correct? How does 2014 residual compare - is it high enough compared to the low 2013 residuals to neutralize the 2013 discounts?
  • konacougkonacoug Kailua-KonaPosts: 196
    Terrible deal!! You are getting hosed with several different items. First off, it is a 2013 model, you should start at invoice, then subtract incentives. I believe that there is $2000 incentive on 2013 3 series models. The money factor(the lease interest) is being marked up .00040. the Acquisition fee is marked up $200 from the base of $725.

    I don't know what area of the country you live in, but offhand, this is one of the worst deals I have seen on this site.

    I do not tell you this to belittle you, but trying to show you, the dealer is really doing a number on you.

    Information is money saved....figure out the invoice, subject incentives and rebates, offer that at base MF and base Acquisition fee.
  • konacougkonacoug Kailua-KonaPosts: 196
    It looks 0kay to me, but hard to know for sure, how good it is without knowing the selling price, vs Invoice. Good job with the MSD's and base MF.
  • konacougkonacoug Kailua-KonaPosts: 196
    This is a crappy deal!!

    First off...please educate yourself on BMW leases. I can't stress enough, DO NOT put money down to de cap your lease. Sure, it lowers your monthly payment, but if something happens to the car, your down payment is gone. Instead use Multiple Security Deposits, for each one, it lowers the money factor, by .0007. You can put down a max of 7 MSD's for a total reduction of .00049.

    There are several very reputable CA's in SoCal who will give a good deal without a bunch of nonsense. There is Greg at Pacific BMW, Justin at New Century and Jon at Santa Barbara. They can all be easily found on another Bimmer forum.

    Take the time to learn and then reach out, you will save thousands of dollars by being informed.
  • No offense taken at all - that's why I asked the question. The invoice amount is a little over $52K. Are you suggesting that I should tell them to subtract $2K, plus additional rebate items from that $52K dealer invoice amount to get to the actual selling price? I'm eligible for loyalty + ultimate drive ($1500 total). So if I understand what you're saying, I should tell them to discount invoice by $3500, thus actually discounting MSRP by close to $8500 (which is like 15% discount)? That seems quite high. I get what you're saying on the MF and Acq fee - they openly stated that they take advantage of the high end of the range on those amounts. I'd swallow that if I could get good terms on the rest of the lease. But is what you are saying realistic?
  • ct200hownerct200howner Posts: 15
    edited October 2013
    Selling price was about $32500.. after all rebates $2000.00 build out, incentives and coupon $1,000.00 ultimate drive/loyalty $500.00.
    ACQ fee was $725.00
    doc fee was $359.00
    MV fee was $300.00 for 5 years registration and inspection in NJ
    tire tax was $6.50
    and something else small I forget..

    Total out the door was $1747 plus $2450 in 7 MSD's.
    Money Factor .00076
    Residual was 59%
    MSRP was $40,250
    36 Months at $320.00 per month 10k per year.
    White 328XI with heated seats
    This was at Freehold BMW in NJ
    The sales person was Mike.
    Please let me know if this was a good deal or not. Thanks.
  • Thanks for your reply!! I walked into a dmv dealer today. I basically wanted to test drive, wasn't interested in cutting a deal as i wasn't prepared. as you said, .. and this is what i was offered...

    2014 BMW 328i with navigation. No premium options like leather.

    $3000 due at leasing

    He wasn't specific abt MF or RV. he mentioned its $500 over invoice. Do dealers expose these values that they take for calculations ?
  • Correction the msrp was $40,275
    invoice is $37,300
  • tag23tag23 Posts: 3
    edited October 2013
    2013 320xi 24 month lease 12,000 Miles, Residual Value ?, Money Factor ?
    2013 320xi 36 month lease 12,000 Miles, Residual Value ?, Money Factor ?

    2014 328xi 24 month lease 12,000 Miles, Residual Value ?, Money Factor ?
    2014 328xi 36 month lease 12,000 Miles, Residual Value ?, Money Factor ?

    Thank you for you help.
  • leased a 328I white with premium package and heated seat for $400 total drive off and $431 including LA county tax per month. 36 month lease, 12k mileage allowance per year.
  • kyfdxkyfdx Posts: 70,273
    All models have a money factor of .00125

    2013 320xi 24 month lease 12,000 Miles
    62% residual
    2013 320xi 36 month lease 12,000 Miles
    55% residual

    2014 328xi 24 month lease 12,000 Miles
    67% residua
    2014 328xi 36 month lease 12,000 Miles
    60% residual



    Prices Paid, Lease Questions, SUVs

  • konacougkonacoug Kailua-KonaPosts: 196
    Glad to help...okay, as far as your UDE and loyalty, that doesn't cost the dealer anything, plus the build out credit is a BMW incentive, again this money is not from the dealer. However, the dealer can attempt to keep it and if you are not aware of it, they sometimes won't even tell you about it. Don't look at this deal, as xx% discount. 2013 models are OLD, they want to move them. If you want to structure a deal go for, $500 over invoice, then subtract the build out credit and UDE. I believe you can use the loyalty as part of your drive off. If you give them anything else I would let them have the higher Aq fee, not higher MF rate.

    Again, depending on what area of the country you are in, can make a deal easier to get. If you are in So Cal, it probably is the best market for buyers.
  • konacougkonacoug Kailua-KonaPosts: 196
    I tried to run your numbers thru a lease calculator and I believe I am missing your state taxes. Did you pay them upfront? or are they rolled into your lease payment? I used $2500 in tax, along with your other listed fees, it comes to $315 per month. If this is about right for tax, then you have a good deal! Enjoy your car....
  • konacougkonacoug Kailua-KonaPosts: 196
    What a lot dealers try to do, is just sell you on the payment and then have you put down enough money to make it work. So, they can adjust the cap cost, money factor and fees to make it work in their favor.

    This why, it is important to know, what the incentives are, the current terms, MF base rate, invoice of car and the actual selling price. The dealer could sell you the car at $500 invoice, but make a lot of money on marking up the money factor, acquisition fee and doc fee. They will try to sell you lots of extra junk in finance. Decline it all.....

    I can point you in the right direction, for a dealership, if I know what state you live in...

    If you really liked a car on their lot, go look at the window sticker, take a pic with your phone, then go figure out the invoice, on KBB or Edmunds. The lease calculator is very easy to use on Edmunds, enter in the data, 61% residual, .00125 money factor, selling price use $500 above invoice.

    If you know the exact build of what you want, email to other deals internet depts. for quotes.

    If you are in So Cal, there are several reputable CA's I know about.
  • Thanks for your advice on the 2013 335xi., konacoug I offered dealer invoice minus all promotions (UDE + Buildout + Loyalty), and told them that I would only pay base Acq Fee (725) and base money factor. They accepted everything except for the money factor, which they continue to mark up to .00165. Also accepted 7 MSD's to lower the MF. So the price is now down from 56975 (MSRP) to 49435 (Actual), plus Acq and other small fees. It seems like a deal to accept, don't you think?
  • My state taxes are 7% and its included in the $320 per month. So I could of gotten an extra $5 off per month? Thanks for all your help.
  • vtnardvtnard Posts: 2
    edited October 2013
    Any one got the Oct Residuals for a 2013 335i sedan

    Got the dealer currently at 3k below invoice on a loaded car.

    Also if anyone is interested I created a lease spreadsheet base off of my previous leases with BMW.... its very accurate. Used it on 3 of my buddies leases and it was within a dollar of what they pay.
  • bman040bman040 Posts: 12
    Haven't seen this one yet for OCT. Please provide mf/resid for 36/39mo 15k. 2014 328xi GT and 335xi GT. Thanks!
  • konacougkonacoug Kailua-KonaPosts: 196
    What are the terms....price seems okay, funny that they are holding out for the high money factor. If I was you, I would check other dealers for similar built car and send offer via email. The higher mf is not insignificant... It is like paying another $1500 for the car, which then makes the deal not so attractive. I believe that you have the power in this deal, however, they are probably waiting for you to blink....
  • kyfdxkyfdx Posts: 70,273
    2014 328xi GT 36mo, 15K/yr lease
    .00125 MF and 59%

    335xi GT has the same numbers...



    Prices Paid, Lease Questions, SUVs

  • teckpro73teckpro73 Posts: 1
    edited October 2013
    Trying to close a deal in NJ. Numbers don't match. Same issue. How much is the tax paid.
  • Hello. I'm new to the BMW family. I'm looking to purchase a 2014 320xi

    Here are my questions: Am I paying too much? Here is the info... specs see edmunds link ( )

    cost $38,570 - deposit $2,495, 1st payment $299, taxes $1200, registration $200, Bank fee $725, document fee $339 - total due at signing $5288 - less $1,000 for test drive total due at signing - 4,288. For some reason, I thought I was going to get $1000 (dealer or factory incentive or build out - not sure which) The dealer did not agree, so it was not given. lease information 63% residual $24,299.10, 36months/10K miles per year. .16 for ever mile over (is this amount correct for overage) factor is .00125 (3%). I wanted to get a lower down payment. The dealer offered $2458.00 due at signing - Payments will be $350/month. I have a 2005 Altima which I am turning in. I owe $3000. The dealer offered to give me $2000. I was hoping it would be a wash and that the dealer would give me full $3000. If this is not possible, I will add in $1000 to the cost.

    I'm not sure what would be due when I turn the car in at the end of the lease period as this was not discussed with me at all. Can you please give me information so that I can feel confident in making this purchase. All is appreciated! Thank you.
  • Total taxes paid are $611.64 i think... 7% of $8,737.75
    The taxes are rolled into the $320.00 a month payment for 36 months/10k per yr.
  • konacougkonacoug Kailua-KonaPosts: 196
    why do you need a deposit of $2495? That is very unusual to put that down on an ordered car. Also, this is way too much money to put down on a lease. The point of a lease is to minimize out of pocket costs.

    First off, what is the msrp vs the actual invoice price? The build out credit is paid by BMW NA, but dealers will sometimes try to keep that money.

    If I was you....I would price out the car to invoice, add $500 to that price, then subtract out any incentives that are available, send it out to other dealers in your area(the internet depts.)

    I would not mention the trade at all, work just the lease side of the deal.

    I have no idea what your Altima is worth, you can always try car max and get a written quote.

    The residual, money factor .00125 and the part about buying extra miles is correct.

    There is a lease disposition fee, if you do not lease or purchase another BMW, at the end of your lease. You can be charged for damage to the car, tire replacement(not enough tread left) and excessive miles.

    Not to burden you with too much info, but you can consider putting down Multiple Security Deposits, which lowers the MF by .0009 per MSD. You are allowed to put in 7 MSD's for a total reduction of .00049. On a car in your lease range, would save you about 30-35 per month. The MSD's are totally refundable to you at the end of the lease. If by chance the car is stolen or destroyed, you still get all of your MSD's returned.
  • Question for you: if I can get a 2013 328xi with following terms (instead of that 335xi), would you say that it is a good deal (need to decide today):
    -Selling price is invoice - minus UDE, Loyalty, Buildout
    -MF is .000146 (minus 7 MSD's)
    -Acq fee is negotiated down to $599 (which neutralizes a bit of the MF markup, but not all)
    -36 mth 10K year residual 59%
    (MSRP is about $52, Selling Price is about 44.8)
    By the way, you are amazingly helpful for an anonymous stranger.
  • konacougkonacoug Kailua-KonaPosts: 196
    Thanks for the compliment, I just don't want to see BMW buyers getting taken to the cleaners...

    Ok, the acquisition fee is set by BMW FS at $725, so they are eating $126. I would guess that with the mark up on the MF, it is in the neighborhood of $20-25 more per month. That is not a good trade off. I would counter with the base MF, .00125 minus MSD's .00049, but offer them $925 Acquisition fee.
  • sherr1sherr1 Posts: 5
    I've had two BMWs and I'm tired of the hassle of trading in at low rates or trying to sell privately, so we're considering leasing. I found the car I want...2014 328i in Mohave metallic with premium pkg. That's other extras. MSRP on car is 41,675...doing the deal through USAA Auto buying program, and one dealer's price was around $38,700ish (stupid us, we didn't write down the price) and the other dealer is coming in at $39,051. Tax would be at 7.8% for the first and 8.3 for the second. First guy gave us a lease price of 601.80 with 0 down, 36 mo. which includes the 7.8% tax, or 547.48 if we pay $1658 in fees up front. 61% residual, MF .00125. I'm in the Phoenix, AZ area. Are these rates realistic, and am I getting hosed on the price of the car? I didn't even know about putting down security deposits to offset part of the payment...they give you no information at all, and being a leasing novice, I'm pretty clueless. Any help you can give would be beneficial. Am I better off buying than leasing? The car I'm getting rid of is a 2008, but only has 26,000 miles on dealer offered me $14,000. It's insulting.
  • So I am in the process of leasing a 428. I will be doing a one-pay lease for a number of reasons. The MF deduction for doing a one-pay is .00080. I thought I would be able to max out MSD's on top of this but found out that is not the case.

    One SA I spoke with said that MF deductions are not given on the MF of .00125 and that it is "special"....

    Another SA said he had no idea what the guy was talking about and if you qualify for a MF of .00125 and do either a one-pay OR max out MSD's, you get the corresponding MF deduction from .00125.

    Can anyone clarify? I'd like to have a real world experience, correct, answer prior to going back in.

    Thanks much!
  • kyfdxkyfdx Posts: 70,273
    I've heard the OnePay deduction is only good on standard money factors, and not on "special" money factors, like the .00125.. That's anecdotal, but I've seen it enough to believe it...

    However, the MSDs are generally good on any money factor, but with a floor... which I think is .0005..

    So, I'm positive you can do the .00049 deduction for the MSDs, from the .00125, but I'm guessing that you can't do the OnePay off of that amount, and I'm pretty sure you can't stack them..


    Prices Paid, Lease Questions, SUVs

  • konacougkonacoug Kailua-KonaPosts: 196
    First off, both are crappy deals! The dealers in Phoenix are tough to deal with, I know for a fact, as I got my first bimmer there about 8 years ago. I was in your position didn't know crap about leasing and got hosed. USAA, of which I am a member, does not prevent you from getting reamed with lease costs, if you don't know what's going on.

    I would highly recommend you email Greg at Pacific BMW in LA, with what you are looking for. He has a sterling rep and is a bimmer board sponsor on another forum.

    Lastly, there is a wealth of info about BMW leasing, money factors, MSD's and other stuff out there.

    Leasing is about the invoice price of the care, how much over or above they sell it to you, which results in the capitalized cost, the money factor(interest), term and miles.

    MSD's are great and I use them, I save about $40 per month in payments, I got my 328i about 1k below invoice, payment with tax $340 per month.

    Your trade is a whole different issue. Always try to work just one side the purchase/lease first, establish the numbers. then add the trade into the equation. Get a bid from CarMax, in writing.
This discussion has been closed.