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BMW 5-Series Lease Questions
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Are you saying that I should blame the salesman or dealership for leasing me a brand new car that manufacturer screwed up on? Or that I implied that he might not support me if I ran into further problems?
1. the salesman did not produce the car. the dealership handled the problem within their normal guidelines and quickly too. Certainly I was not happy that I was inconvenienced and would not have put up with improper service or lack of concern on their part.
2. if the car came back to me in an unsatisfactory condition, I would expect his support in handling my potential dissatisfaction. Some salesmen do get lazy and try to brush off tough issues after the sale and I made sure he understood that I wasn't going to accept that
3. I didn't get too pissed because I got a service rental 535i that I got to drive really hard for a day to see how it handled.
4. I only leased my car for 2 years, I didn't buy it for the long haul. If reliability was my primary concern, I would have gotten the cushy Lexus LS460 that I was also considering.
5. BMW's (the manufacturer) screwup cost them $900 since I got a nice dinner and a restful Saturday night stay at the Ritz Carlton near where my car broke down and have a nice $100 Sunday champagne brunch and a leisurely Sunday $200 hired car ride home courtesy of Travel Interruption Reimbursement program that comes with BMW Assist.
Or are you saying that you're astonished that I would improperly think that the salesman might think I'd be angry with him for a problem that you feel he is not personally responsible for? There are plenty of customers that do this and give their salesmen a bad rating in the follow up survey that can affect their financial compensation for months since many dealerships tie customer satisfaction ratings directly to the salesmen's compensation.
Heck, if I ever break down I'd hit a brothel or two, to hell with the Ritz.
sport package
comfort access
ipod
Sirius radio
sport steering wheel mounted paddle shifters
MSRP is 57,570 purchase price 55,185 in South Florida
36 month 12.000 miles residual value 62%
Money factor .00215 ( told this is a march special)
lease price 761.51 plus fl 7% tax
no upfront except ist month, 599 acqusition fee plus state tax and fee of about 250
Thanks!
Thanks for the reply. I was talking to a dealer and they told me that if you know someone that has had a lease or financed their car through BMW Finacial (with certain criteria) I can qualify for owner loyalty. (They obviousley need to co-sign) Based on that my quote would be 541 a month for 30 months and 3657 out of pocket. I should be able to get the out of pocket number down by getting them to eliminate the bank fee.
528xi Premium, GPS, Cold Weather and Sirius.
What do you think?
Car_man
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2008 535i
prem package
cold weather package
nav
sirius
MSRP: 55,520
Sale Price: 54,000
Claimed invoice price: 51,950
30 mos lease
12K
zero down
$689 before tax
assuming the invoice price is correct (i confirmed with edmunds at Edmunds Dealer Invoices )then its a +$2K over invoice deal.
Sounds high. Based on what I've read in here so far, am I out of line thinking the Sale Price should be closer to 52,000 than 54,000?
The security deposit is getting rolled over from current lease and the MF is .0018.
Deal or No Deal?
Discounted to $50,375. 1500 cash down which is $316 Cap Reduction. Adjusted Cap Cost is $50884. Monthly Payment is $688.32 per month with 12,000 miles for 24 months. He used 75% LEV and .00205 money factor. Thanks, Mike
MSRP 45475
1500 down
598w/tx for 24 months
WHAT DO YOU THINK? Are BMW dealers desperate? We went back in forth for a week with two dealers.
It is never a good idea to put money down on a lease. You would be better off using the $3500 for buying down the MF with multiple security deposits. The MF they are quoting is buy rate + .00015 for a new customer not paying the security deposit. Each additional security deposit will reduce the MF by .00007 and you get the money back at the end of the lease.
2008 528xi
premium
cold
nav
msrp = $52,300
$5000 down (includes 1st mo, security, dealer fee, down pymt)
30 months
10k miles
pymt: $495 + tax
seems like a pretty good deal....what do you think?
MSRP: $54,700
Dealer Invoice: $50,225
Purchase Price: $51,025 ($800 over invoice)
Net Cap Cost: $53,205 (destination charge, MACO, training / service fee & bank fee)
Money Factor: 0.0020 (4.80%)
Lease Term: 36 Months
Annual Miles: 12,000
Residual Value: 62%
Monthly Lease Payment: $697.71 (plus tax)
Total Drive-Off Cost: $2,023.51 (documentation fee, security deposit, license / registration & first month's lease payment)
Is this a good deal? Can I get a better money factor or purchase price? Please advise.
the net cap cost seems steep over and above the purchase price. Typically it is ACQ fee ($699?) plus dealer doc fee (ranges from $299 to $499 around here). My 528i had a msrp of around 52000. agreed upon price was 48821.04, gross cap cost of 49745.
In Dec they had a $1000 cash to be applied, which went straight to a reduced cap cost (thus new cap cost of 48745). My dealer actually took some of their fees away and reduced my cap cost by $475 more...so net cap cost was 48269.
I did 24 months, 10k miles, 75% residual, $600/month including 7% tax.
I paid $1800 upfront...$600 1st month, $600 security dep, $21 title/tag fees. $103 sales tax on cap cost reduction, 475 cap cost reduction (no dealer fees, so this was cap cost reduction).
Whew..is there still the $2500 cash reduction on new 5-series?
2-year leases on 528i are better residual than 3yr.
I got quoted 50100, for a 53900 car, which equated to just about 500 over invoice. This is a car that needs to be ordered.
Heres where I have questions. Quote was $729 per month with about 1,900 down including tags (NJ expenside), security of 750, and bank fee+ first month payment.
It's for 36 months 15K miles. If I used the factors I have found on the forum here, I come up with money factor of .0019 and resid of 60% and I'll use 58% as a buffer for the 15k miles. I come up with a payment of only $634 give or take.
Do they play games with residuals and money factors? What should the factors be considering the model and milage and term???
Thanks so much, this is why the Internet is great!!!
$1500 Down
$567w/tax X 24 months
10k miles
These are the numbers the dealer sent me in an email;
MSRP $45,475
Sales Price $42,522.
Money Factor .00205 without a Security Deposit
Residual 76% (10k miles) = $34561.
I also got him to throw in a Stereo with Sirius SAT, I think a $595 MSRP option/$540 Invoice.
Do you think I can do better? Anyone have insight in AZ?
Thanks, much appreciated.
The numbers the dealer gave you make sense based on a .0023 MF (60% residual) and NJ sales tax on the rental protion of the payment. They have marked up the MF to the max they are allowed. at .0019, you would be about $695. Also, with the lease inception fee, the base is $625 and they can try to mark that up to as much as $825.
Good luck.
OP: be careful about checking the numbers when you go to do the deal. I wasn't feeling well on the day I picked up my car and although the numbers were slightly off from what I had been figuring out, I signed anyway since the other key components were correct. Looks like they marked up the MF about .00033 from what I was originally quoted when I placed the order. You will notice that the MF doesn't show up on any of the paperwork you sign. I'm thinking about contacting my dealer to discuss although I realize I should just remember not to sign deals on days when you have the flu. It's a $850 lesson for me. Not sure if they were trying to rip me off or if it was an honest mistake on their part.
I have been dealing with two different dealerships in Massachusetts. Both have given me the residual and the money factor they purport to be using, but the monthly lease payments seem higher than they should be.
I am proposing to lease a 2008 535xi for 36 months, with a 15,000 mile allowance (12,000 would be fine, too). The car would have to be ordered.
With options, the MSRP is $58,770. Invoice is $54,070, and I offered $2,000 over invoice, or $56,070, with no money down and $400 to cover tags, title and everything else they want to charge me for (this is slightly more than what one of the dealers said it would charge). I think this is a fair deal. Massachusetts tax is 5%.
One dealership offered 63% residual (I thought the March rate was 60%) and MF of 0.0019. It calculated a monthly payment of $865.50. With the dealer's numbers, the imputed price they are offering would seem to be above MSRP.
The other dealership offered 67% residual (on a 30 or 36 month lease; its quote is not clear), a MF of 0.0019 and calculated a monthly payment of $855.66.
I calculate $741.20 based on my offer (monthly depreciation of $529.03, finance charges of $176.88 and tax of $35.30). I calculate the finance charge as = (negotiated price + residual value) * MF.
I used the same methodology with an Infiniti dealer, and our numbers matched almost exactly (within a few pennies).
Any advice or suggestions?
One question I have is how the mileage allowance (12,000 vs. 15,000) affects these calculations.
Thanks for any help!
I just got the following lease deal in CT (picking car up Tuesday!)
08 528xi (w/ Nav, cold, premium pkg.)
MSRP: $52,225
sales price: $49,245
MF: .00190
upfront payment: $5000 ($3560 cash cap reduction, 1st mo pymt, doc fee, reg, security)
30 mo. lease, 10k miles yr
monthly payment: $489 + tax
It looks like the sales price is very close to invoice. Does anyone think this is a good deal?
Your payment is low because you are making the down payment. :mad:
Location: San Francisco
MSRP: $54,950
Existing BMW Financial customer
Dealer gave me the first quote that looks like this:
24 month, $812.55/m (tax included) with $1,280.13 drive off (we pay $1,000 for you, your balance is $280.13).
24 month, $733.63/m (tax included) with $3,000 drive off (we pay $1,000 for you, your balance is $2,000).
Then I said I already have another quote (not quite yet) and told him not to waste time and just be upfront, then I got this:
24 month, 76% Residual, 10k mi/yr, $1177.36 drive off, $718.78/m (tax 8.5% included).
Should I go for this or should I continue shopping! Thanks again!
There is not enough information here - what is the negotiated selling price of the car, money factor that they are using? You also need to know the lease acquisition fee ($625 or $825). You can reduce the money factor by .00015 if you pay the security fee.
Car_rm
The BMW performs well, but the company is behind the curve with its I-Drive and antiquated navigation system. Still, I'm actually considering 535i, because it resolved some key 530i problems (somewhat better NAV w/integrated live traffic; memory buttons for radio and AM-FM-satellite band-switching; voice recognition that actually works--I'm told). Mileage worse than Lexus GS350 with more value, but lease terms not so great, and BMW has free maintenance (w/brakes!). Still prefer NAV and other user friendly items on Lexus, Infiniti and other alternatives I'm exploring.
As long as I can avoid my local dealer here in Calabasas (So Calif), I may give BMW another chance!
Questions--
(1) Given the slowness of the auto market, how close to invoice does 530i go?
(2) Does BMW offer financing deals, or just leasing deals?
(3) Other than premium, sports, comfort access, navigation, sirius satellite radio, does anyone reading this recommend any options ...especially if they are perosonally familiar with them? If I go beyond the above, I must special order:
(4) Are head-up display and night vision use mere toys or useful? (Seems odd that night vision visible only in NAV system.)
(5) Is rear door side impact airbag safe, or a threat to kids?
(6) power rear &manual side sunshades worth the money to keep the kids happy?
(7) any other options truly worthwhile and worth the money?
(8) Last time, I did 24 mo, cheaper per mo than 36. Now, 36 slightly higher. I still think 24 mo, to save buying 4 costly fun-flat tires.
(8a) FINALLY -- does anyone know what the Money Factor will be for 535i for APRIL for 12000, 24mo, 36 mo, and, possibly for 15000. If I go BMW, I could buy/lease Mon/3-31 or wait until Tues/4-1, if MF different.
(8b) IF I special order, due to other items, I'd use March MF or June MF, whichever is lower. My guess is June MF would be lower. Thoughts?
Car_man
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MF 190 reduced to 131 via maximum refundable deposit
2 yr, 73% residual.
I had this agreement, but dealership tried to add $360 (via addl lease payments).
You know -- it's not the amount of money, it's just the principle.
Very disheartening; eventually, it honored agreed-upon email price.
A friend wanted a BMW but he saw the devious number crunching and now leans toward a different brand, or a different dealer.
Too bad -- I wanted to do him a favor, and do the dealer a favor.
Often in years past, I've recommended a dealer to others
Car man: One argument for 2 yrs was to avoid likely replacement of four run flat tires at $1600-$1800. A 3 yr lease mileage would end up with that extra cost.
I went w/BMW for performance, despite dysfunctional I-Drive and substandard navigation system.
Also, while I avoided dealer in immediate area due to awful service, I went nearby, due to deplorable BMW policy of providing loaners for warranty service only at dealership where you bought/leased it-- unlike all prior luxury brands I bought.
In theory, I should have little service, due to only a 12000 mile a year, 2 yr lease.
But, with my 530i, I had various problems, including 2 separate ones where it was in the shop for 2+ weeks; so, I'm glad I returned to the original dealer and had the benefit of a loaner.
This is a superb transmission and the car takes the road well.
But I had a negative experience when I turned in my leased BMW 530i last week at dealership in my immediate area; so, when I settled on 535i over other choices like Lexus GS350, I knew I would go to an adjacent area.
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Also, 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 the vehicle that they want to lease is that it is necessary to calculate its lease payment. I am sure that either I or another community member will be happy to give you our opinion of this deal if you let us know what the selling price is.
Car_man
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The money factor that you mentioned is slightly higher than BMW FS' buy rate for this model. BMW FS' current buy rate lease money factor for a 36 month lease of a 2008 BMW 528i is .00190 for consumers who pay a security deposit at lease signing. This car's money factor is .00015 higher for non-returning BMW FS lessees who wish to have their security deposits waived.
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As far as the selling price goes, this car probably has a spread of around $3,500 between its full MSRP and its dealer invoice price. The $2,953 discount that you were given on this deal looks excellent to me.
The two main profit centers for dealers look good on this deal. It looks like you did well. Enjoy your new ride :shades: .
Car_man
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BMW does occasionally offer special financing rates on vehicles, but unfortunately it is not offering any on the 2008 5-Series at this time.
You will have a better chance finding answers to the specific questions that you had about this car's options over in the "BMW 5-Series Sedans" discussion.
Through April 30th, BMW Financial Services' buy rate lease money factor and residual value for a 24 month lease of a 2008 BMW 535i with 15,000 miles per year are .00190 and 71%, respectively. The numbers for an otherwise identical 36 month lease are .00190 and 60%. If you were to lease with only 12,000 miles per year, this car's residual values would be 2% higher. It is difficult to say what BMW's June lease program for this model will be like. Whether BMW enhances its offer on the 5-Series will likely depend upon what its March (due to be published today) and April sales results look like. If sales are weak, it is possible that BMW will enhance its programs.
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535i sport, nav, prem,
MSRP $58,875 demo with 2,000 miles
selling price $$57,000
term 36 months
miles 15,000 per year
MF .0022 (BMW loyal customer included)
residual .60
$ down - first month and security - about $1200
lease - $944
MSRP $56920 prem, nav, some small items - no sport
selling price $55700
term 36 months
miles 15,000 per year
MF .0022 (BMW loyal customer included)
residual .60
$ down - first month and security - about $1200
lease - $928
This seems very high considering what I see written here - but I've walked away and no budging from the Dealers - any advice??
thanks
Golfer 716
$1500 TOTAL DOWN
24MOS X $567 W/TAX
10K MILES/YEAR
+ SIRIUS SAT RADIO - OPTION 65
The residual values at 2 year is 73%
The MSRP is 51,025 on the 528xi and 53,025 on the 535i
BMW' National Lease Ad takes into consideration an $1100 discount on the
vehicle - we have shown you $1500 in savings.
Normally on the 24 month program, people have been putting money down on the
leases to buy the payments down
Our money factor is .00200
You can reduce the money factor by .0007 for each additional sec deposit up
to 7 additional.
The 3 year residual values are 62% accordingly for a 12K lease -
528xi a 2 year lease would run
785/mo with 0 cap cost reduction
We did talk to the salesperson about putting down additional security deposits to reduce the money factor, thanks to this thread...they were very receptive to this idea.
Hope this is helpful!