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BMW 5-Series Lease Questions

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  • arizdudearizdude Member Posts: 3
    Ordering from factory
    MSRP - $51,660
    Cap Cost (claims $500 over invoice) - $49,625
    quoting 60% residual on 36 month lease 15k miles
    MF .0022 (5.28%)

    I am an existing BWM 3-Series lessee with BMWFS and I think the money factor quoted is way too high. Can anyone confirm that BMW is offering 3.9% (MF .001625) for existing customers on the 528i series 36 month lease in July. Am I getting hosed? Dealer is Chapman BMW in Phoenix Arizona.

    I did check out the site suggested at:
    http://forums.roadfly.com/forums/financing/
    but the rate there is higher than the dealer quoted me.
  • mrresearchmrresearch Member Posts: 8
    Car_man, or anyone, know the august residual and moneyfactor for 2007 525xi and 2007 530xi for 36 mos 15k?
  • tambaydrivertambaydriver Member Posts: 26
    Car Man,

    My wife's '06 535 is coming off lease in Oct (end of 2 yr lease). Current miles are approx 15,000 (contract was for 10m/year). Like the car fine but looking to minimize monthly pymts moving forward. In your experience is leasing a used car any different than a new car lease? What issues should I be concerned with? And lastly, are the residual and lease factor deals similar on new vs. used?

    Love this post for all the models we are interested in. What a great source of information.

    Thanks,
    TampaBayDriver
  • sfbimmersfbimmer Member Posts: 3
    I am looking to lease a 2008 535. I was quoted the following rate for a 36 month lease with zero down and 10K miles/yr

    $1337 due at signing
    35 remaining payments of $799 + sales tax

    The car has the following options:

    Premium Package
    Sport Package
    Sport Steptronic Transmission
    Park Distance Control
    Navigation System
    iPod/USB Adapter

    Is this a good rate?
  • david_v1234david_v1234 Member Posts: 4
    Hell all,

    Newbie here. Great forum.

    Can someone please list competive purchase price, residual, MF and miles for 528.

    Many thanks.
  • graycar1graycar1 Member Posts: 6
    Car Man and others,

    1) Does BMWFS still offer current owners a MF of .0018?
    2) For non-current owners is the MF.00225?
    3) Typically, are the above rates applicable to 10K in miles and a residual of 60%, 12K and 60% or other?
    4) Do the above rates assume a down payment of $2500, first payment and one months security deposit?
    5) Generally, what are residual percentages for annual miles of 10K, 12K and 15K?
    6) My trade-in is worth around $17,000 (not a BMW). When you are trading in a car and now you want to lease, what is the best way handle the cash value of your trade in? Generally, will dealers give you cash or do people sell sell their cars outright vs trying to trade them in?

    Thanks for you help!

    grayman01
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the info that you're looking for, mrresearch. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2008 525xi with 15,000 miles per year are .00260 and 60%, respectively. The numbers for an otherwise identical lease of an '08 535xi are exactly the same. BMW is no longer providing lease support on the 2007 5-Series.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi TampaBayDriver. Leasing a used vehicle is definitely different than leasing a new vehicle. Manufacturers provide support on new vehicle leases to help them sell more new vehicles and keep their factories humming. They usually don't provide much, if any support on used vehicle leases. Fortunately, BMW is the exception to the rule here. BMW often provides specials on Certified Pre-Owned vehicles. Unfortunately, I do not personally keep tabs on its used vehicle lease program. My advice is to compare the price of leasing your current car again to the cost of leasing a similar brand new model. If there is not much of a difference in the payments, you might as well lease a new one. If the used car costs substantially less, then you may want to consider going that route.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings sfbimmer. You never mentioned the selling price or MSRP of the 525i that you are interested in leasing. These are important numbers 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 this what car's selling price is in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'm glad that you enjoy this discussion so much, David. I would be happy to give you an idea of what this car's current lease program is like. Its program varies by term and mileage allowance. You never mentioned what either of these variables are, so for now I am going to assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 528i with 15,000 miles per year are .00225 and 60%, respectively.

    You should be able to get an idea of what a good selling price would be for this car right now by visiting the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey grayman01. BMW Financial Services' August buy rate lease money factor for the 2008 535i is .00225 for consumers who pay a security deposit at lease signing. I believe that it is providing a special .00045 money factor reduction for loyal customers. This would bring the money factor down to .00180. This car's residual value varies by term and mileage allowance. Its current residual for a 36 month, 15,000 miles per year lease is 60%. The residual value for a lease with 12,000 miles per year is 2% higher and the residual value for a lease with 10,000 miles per year is 3% higher.

    You do not have to pay any capitalized cost reduction to qualify for the aforementioned money factor, but you will have to pay a security deposit that's equivalent to your monthly payment rounded up to the nearest $50 increment and BMW FS' $625 acquisition fee. BMW FS will waive its security deposit requirement for free for returning lessees.

    If you want to trade in your current vehicle when leasing your new one, it would be in your best interest to have the dealer cut you a check for any equity that you have in it. This is better than using the proceeds as a capitalized cost reduction because consumers who make large down payments on leases risk losing part or all of their money if their vehicle is totaled in an accident or stolen and never recovered.

    Car_man
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  • katekikateki Member Posts: 3
    I was given the following price on a 528i with an MSRP of 52,250, 36 month/10k miles per year lease:
    Selling Price: 52,000
    Money Factor: .0018
    Residual: 63%
    Minimum drive off, which included a $825 acquisition fee, and monthly lease payment of $670, including tax.
    Isn't the acquisition fee supposed to be $200? Other than that, do the numbers look right? Does the dealer have any incentive to reduce the sellig price in lieu of reducing the acquisition fee? Thank you!
  • sfbimmersfbimmer Member Posts: 3
    Thanks Car_man. The selling price is $54950. Which I am told is $500 over invoice, plus a 2 other fees totaling $580. My lease is for 36 months, 10K miles/yr with 63% residual and money factor of .0028. Zero down payment. Drive off is $1316, one month plus registration and tax. The monthly payments are $785 + tax. I could not get the dealer to bargain anything other than the amount over invoice, which started at $1500. This seems to be the best deal that I could get in my area, San Francisco.
  • sfbimmersfbimmer Member Posts: 3
    By the way, Car_man, this was for a new 2008 535, not 525.
  • qpmicroqpmicro Member Posts: 6
    Looking for the money factor and residual of the '08 M5. Sticker is $97,050, sell price is $96 even - lease term is 2 years (possibly 3). 10K miles.

    Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kateki. I take it that you are a current BMW Financial Services lessee. I say this because the money factor that you were quoted for this car is right in line with BMW FS' current buy rate for it, .00225, minus the special reduction of .00045 for loyal customers.

    You certainly aren't being given much of a discount on this car. Not only is the dealer only giving you only $250 off, but they are marking up BMW FS' base acquisition fee by $200 so this deal is really only like $50 off :surprise: . If you are in an area that has any competition, you should be able to do better than this. Try stopping by the "BMW 5-Series: Prices Paid & Buying Experience" discussion to see how much other community members have paid for similar cars lately.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, sfbimmer. The money factor that you were quoted for this car is too high. The last time that I saw it, BMW Financial Services' current buy rate for a 36 month lease of a 2008 BMW 535i (nice car btw) was only .00225. It is even lower than this for returning BMW FS lessees.

    $500 over dealer invoice is a very good price for this car. If you can get the dealer to give you this price and then use BMW FS' buy rate lease money factor to calculate your monthly payment you would be getting a heck of a deal.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings qpmicro. You certainly are interested in a sweet car. As one might suspect, BMW is not currently providing any lease support on the 2008 M5. As a result, if you were to lease one through BMW Financial Services right now you would have to use its standard lease program. I believe that BMW FS' buy rate standard lease money factor may vary slightly by region, but it should be around .00320. BMW FS' current residual value for a 24 month lease of this car with 10,000 miles per year is 71%. The residual value for an otherwise identical 36 month lease is 59%.

    Car_man
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  • njdriver1njdriver1 Member Posts: 97
    Hi Car Man
    Last month I put down a deposit to order a vehicle that is scheduled for 9/30/07 delivery. Since then, I've started to think I didn't cut the best deal I could have (too much double talk at the dealer to follow all the fees, taxes and rates).
    Do I have any recourse when the car is delivered to re-negotiate, or am I stuck with the deal as it was cut when I put the deposit down? Doesn't BMW allow for the customer to get the better of the lease programs available when ordered or delivered? Can I negotiate with another dealer and ask them to swap for the car I ordered?
    Thanks
  • jabberjabber Member Posts: 64
    How much did you put down? Were you planning on paying cash or financing/leasing? I'm assuming that all you've signed is the sales order. Dealers won't get their money unless they have a signed finance or lease contract that they can execute. So that's your leverage. The deposit you gave them is their leverage. There's nothing stopping you from going back to the dealer and trying to renegotiate. Shady dealers do worse all the time and sell a car out from under you after you've put a deposit down just because a better deal came along. If you charged your deposit on a credit card (something I always do), then you could cry foul and dispute the charge. Also, you need to determine how bad a deal you really got and whether it's worth the effort.
  • tayl0rdtayl0rd Member Posts: 1,926
    Renegotiating is probably out of the question as well as having another dealership acquire the car. You can always walk away, though.
  • njdriver1njdriver1 Member Posts: 97
    I put $1,000 down for a lease. I signed a purchase order with the dealer, not the BMWFS agreement. The PO spelled out the basic terms - months, amt, $$ due at inception, purchase price of the car.
    I think I may be overpaying by about $35-$50 per month on a 36 mo lease (at most). But I thought if the lease programs improve between the PO date and delivery, you get the better terms?
  • skobolaskobola Member Posts: 207
    My friend just leased a 2008 535i and they told him that he could not do MSD as the car was under the owner loyalty program, and even if he could that they would allow him to do only 5 security deposits, where each would reduce the money factor for 0.00005. As much as I know, BMW FS used to allow up to 7 security deposits, where each would reduce the MF for 0.00007, bringing the maximum reduction to 0.00049 = 1.176%. Please let me know, because the car was ordered and he still has a chance to modify the deal when the car arrives. Thank you.
  • bajanjackbajanjack Member Posts: 15
    I was told you do get the better terms by the Sales mgr at Flemington BMW...I have been dealing with him for years and he's always been true to his word....
  • newdeleaseenewdeleasee Member Posts: 2
    I am new to leasing and have a few basic questions. I am looking at a new 2008 535xi MSRP 59K. I have managed to get the selling price down to 56,750, and with their current residual of 62%/12K miles they are telling me the MF is 0.0025. I am wondering if that is negotiable, I see previous posts with MF of 0.00225? Also what is MSD?
  • joelk01joelk01 Member Posts: 56
    what happens to the MSDs if the car gets totalled? Do you get that money back in full?
  • skobolaskobola Member Posts: 207
    My understanding is that you do get it back, because the insurance pays for the car and BMW FS covers the difference through the GAP. Of course, if you are rough with the car, i.e., scratching, dings, and such, you have to pay for the damage, as appraised by BMW, which you have to do anyway, except, this time they already have your money, so you would not really have an option of not paying for the damages.
  • skobolaskobola Member Posts: 207
    Not that I would not appreciate answers from others in this forum, but my question was primarily directed to the hosts, Car_man and kyfdx, as I believe they pull their data directly from BMW FS. Therefore, here it goes again, just in order to not let you search for my previous questions [as listed in #1403 above]:

    "My friend just leased a 2008 535i and they told him that he could not do MSD as the car was under the owner loyalty program, and even if he could that they would allow him to do only 5 security deposits, where each would reduce the money factor for 0.00005. As much as I know, BMW FS used to allow up to 7 security deposits, where each would reduce the MF for 0.00007, bringing the maximum reduction to 0.00049 = 1.176%. Please let me know, because the car was ordered and he still has a chance to modify the deal when the car arrives. Thank you."
  • carat12carat12 Member Posts: 4
    I recently received a quote for a 2008 528xi, premium pack, cold pack, and ipod/usb adapter.
    36 months
    15K
    $677 per month including NJ sales tax
    Is this a good deal? I was told theuy are using a cap cost of $800 over invoice.
  • joelk01joelk01 Member Posts: 56
    Which NJ dealer. thanks. jk_in_fl@yahoo.com
  • carat12carat12 Member Posts: 4
    JMK
  • joelk01joelk01 Member Posts: 56
    How do they work and do they make sense? Any help is appreciated.
  • kyfdxkyfdx Moderator Posts: 236,830
    Each MSD drops the money factor by .00007

    You can make a total of 7 MSDs, for a total reduction in money factor of .00049

    Each MSD is equal to the payment, rounded up to the next $50 increment.

    Example:

    No MSDs
    $40K CAP cost
    $25K Residual
    $500 payment
    Base MF .0015

    7 MSDs ($3500 upfront, returned at lease end)
    $40K CAP
    $25K Residual
    $468.15 payment
    Base MF .00101

    For your $3500 deposit, your payment is reduced by $31.85 per month.. Resulting in an after-tax return of 10.92% on your $3500.

    These are all just made up numbers, but will approximate the savings on most BMW leases.

    Hope that helps,
    kyfdx
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  • ocmamaocmama Member Posts: 4
    I am looking to lease a 2008 535i..pretty much loaded with all the goodies...

    MSRP 63,820
    Sales price $62,000
    MF 0.00180
    Resid value for 12k/36mo. 62%

    Payment would be $865 including tax with $2096.49 due at signing. I'm being told this is for the necessary tax, license, etc...but other quotes I've received had higher payments and lower out the door costs. They must be padding it here...they haven't itemized these costs, though I have asked... Is this a decent deal??? Thanks for any input.
  • brichard10brichard10 Member Posts: 7
    New to the forum. Looks very useful!

    Looking for MF and residual on '08 528i. 3yr 12k. Have excellent credit. We have leased before but never a BMW. How close to invoice price can I expect to get on a 528i, and is the security fee waiverable?

    Thank you.
  • joelk01joelk01 Member Posts: 56
    Couple of quick questions. This forum is a great resource. What are the pros/cons of paying taxes upfront as opposed to paying them monthly as part of the regular lease payment?

    If I pay the taxes upfront and the car is totaled shortly into the lease, will I lose all of the unamortized, so to speak, money? It seems like just another form of capital cost reduction - which is always at risk in a lease - which I never think is a good idea in a lease. Thoughts?

    Thanks!
  • ocmamaocmama Member Posts: 4
    I renegotiated for a lower sell price...does this deal look good?

    2008 535i lease 12k/36mo.
    MSRP $63,820
    Negotiated Sell price $61,000
    MF 0.00180

    Due on Delivery (from Lease Review sheet):
    Monthly payment $837.94
    CapRed 0
    Sls Tax upfrnt 48.44
    1st yr fees 458.75
    Sec Dep 0
    Other upfnt 625.00---marked "Acquisition fee" off to the side, but the "Lease Worksheet" has Acq fee $825.00

    Total Init payment $1970.13
  • bajanjackbajanjack Member Posts: 15
    I have a 535xi in "transport"....I'll probably take delivery in 3 weeks....any sense as to whether the recent Fed rate reduction could help reduce the money factor by then?
  • topspin628topspin628 Member Posts: 373
    Compared to what I've seen that monthly looks pretty low.
    Is your sales tax in the payment?
    By the way, how did you manage to get a 535i up to 63K? It's gotta have every option including night vision?
    Looks like a good deal from here.
  • ocmamaocmama Member Posts: 4
    It does have lots of options, except for Night Vision. I wanted night vision, but, apparently, there is only one available in California and is White on Beige, which wouldn't work for me.....I need a car sooner than it takes to order one.

    This one has Space gray exterior with Black dakota leather, premium, sport, cold weather, automatic, active steering, comfort access, park distance control, navigation, heads up display, satellite radio and premium hi-fi sound system. The MSRP on this vehicle is $63820.
    Night vision would have really rounded out this package. I may have to wait 3 yr.s on that one. :blush:
  • lambusserlambusser Member Posts: 46
    Hello Car_Man,

    I'm looking to close on a new 2008 550i. MSRP around $74k.

    Would you be able to provide some lease data for the 550i here in September?

    Thank you very much,
    Lam
  • sls1sls1 Member Posts: 45
    My 24 month lease on my 2006 530i expires in January. I'm currently paying $592.00 a month plus tax. I'm under the miles so that is not an issue. I'm very happy with the car but not sure what I should do when the lease expires.
    Should I lease a 2008 535i?
    Does it make more sense to extend my current lease?

    Does the 2008 still have Sirius? Does the 2008 have ipod integration?
    Thanks
  • njdriver1njdriver1 Member Posts: 97
    Is anyone aware of the current lease programs on the 535xi over 36 months at 12,000 per year? Any BMWFS support for existing BMW customers?
  • carnaughtcarnaught Member Posts: 3,497
    Does the 2008 still have Sirius? Does the 2008 have ipod integration?
    Thanks

    Yes. Yes, an option.
  • mmoreno1978mmoreno1978 Member Posts: 106
    MSRP 60,775
    Trading in a car worth $7K
    30 Months/$735 with 18K miles per year.
    I am hoping to get it down to $700.00

    I presently pay $700 for my Infiniti M35, so I want to stay at the same payment.

    (I am trading in my 2003 G35, its worth more, but the car is pretty banged up. MB offered me $7500. KBB has it at $11,500K, but I guess they are taking into consideration the repairs that need to be done.)

    Any suggestions how to get my salesman down $35.00 without putting down any money expect for the trade in and my first month. I know nothing about money factors or residual. I simply walk into the dealer and tell the salesman how much i want to pay.
  • mmoreno1978mmoreno1978 Member Posts: 106
    Which dealer would you recommend using?

    Currently working with JMK, but I almost bought from Open Road a few years ago and enjoyed the process. I hear Flemington beats everyone in price and service. I have never looked at Princeton, but may stop there as well.

    Would like to hear your thoughts.
  • topspin628topspin628 Member Posts: 373
    So here's the deal I got and I want to make sure the payments are correct:

    550i sport Pkg
    Sport auto
    Nav
    logic 7
    HUD
    HD radio
    Rear Airbags
    Sirius
    Ipod adapter
    Cold Weather package

    Selling price- 66,880 (deal was invoice plus 1K plus (480 macco and training fee)
    Money Factor is.00225 (I am not a current bmw customer so I couldn't get the lower promotional rate)
    36 mos
    15,000 miles per year
    Drive off of 1894 (First payment _1077
    DMV
    Security deposit)

    Payments include Tax of 8.625
    and bank fee is already in the payment.

    Monthly payment is 1077.66

    Does that all seem to add up correctly?
    Thanks!
  • mmoreno1978mmoreno1978 Member Posts: 106
    You can get a 7 Series for 24 months at $1100 a month
  • topspin628topspin628 Member Posts: 373
    When I compared the 7 series with the same parameters, tax in payment, 15k miles per year, no down payment etc., for a "basic" 750 the payment was 1150 vs the 1077 I was able to negotiate for the loaded 550i. Most importantly, I much preferred the ride of the 550i. It was a lot more fun to drive and the inside room was only marginally smaller. The 750 has the previous gen idrive which is less user friendly, no HD radio or Head Up display available.

    If one wants a 7 though, it is a good time to get one.
  • topspin628topspin628 Member Posts: 373
    Do we know the new lease rates, MF incentives for the 5 series? Better or worse? I have a deal in place but it the rates improve I can get the better rates.
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