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BMW 5-Series Lease Questions

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Comments

  • fineman2fineman2 Member Posts: 25
    The cap cost is $51750 and residual is 58% ($33845). The price listed on dealers website is $54995 (the actual MSRP for this configuration is approx. 58.5k). I have always bought my previous cars and this is my first experience negotiating a lease. Thanks for pointing out to roll sales tax into monthly payments. Also, what happens to MSDs if he car is totalled.

    I am also visiting other dealers tomorrow to check the deals on leftover 08 535i (new) to compare.

    Thanks.
  • gardisgardis Member Posts: 185
    Let me understand this. Do you mean to tell me that with a lease, you put down $7950, and you don't OWN THE CAR at the end of the procedure??? Why would someone do that? Boy, there's some people out there with some serious money, is all I can say about that.
  • fineman2fineman2 Member Posts: 25
    $7950 includes 1st payment, upfront sales tax (which I plan to roll into monthly payment instead of paying upfront), acquisition fee, DMV fee and $4400 multiple security deposits which are refunded at the end of the lease. MSDs lower the money factor and in my case will reduce the monthly payment by $40. Thats a savings of $480 per year and $1440 in 3 years. That's more than 10% return on money.
  • x021627x021627 Member Posts: 152
    You get your MSD's back if car is unfortunately totaled.
  • croni003croni003 Member Posts: 14
    Greetings. I'm looking for some feedback regarding a lease opportunity I have. Comments are greatly appreciated as I am new to the lease world.

    2006 530i w/ 20k (employee lease return) Sport/premium/heated seats - great condition with 2 years left on warranty

    price 26500
    residual 16960 (64%)
    MF = .00315
    cap reduction $1000
    all fees 1000
    payment $569
    2 year/10k per year term

    This is through a friend of a friend at our local BMW dealer.

    Thanks for your input

    JC
  • craigm1841craigm1841 Member Posts: 4
    I just did my first lease on an "employee return", which i now know BMW calls "MSO", a factory employee from Spartainburg, SC or a BMW executive drives it and returns it with less than 15K miles. Usually it has to be leased after a return within the model year. I just got mine 2 weeks ago. If I am reading your post correctly, your initial payment will be 2569? is the 569/mo before taxes? I just leased an '08 535i premium/sport (htd seats, xenons, blue tooth, parking sensors) "employee return" for 12K/yr for 36 mos. I put $2500 down and I pay $599 a month. Plus the car was CPOed by BMW USA so it is worth more to me in the end if I chose to keep the car. I would keep look around a little more. there is a BIG difference between an '06 530 and an '08 535 (3.0 twin turbo) in terms of performance. I posted a question like this about a month ago on this website and never got a response or feedback. After extensive research I have learned a lot and I hope I can pass on some of the information I have learned.
  • croni003croni003 Member Posts: 14
    Thanks for the info on your lease. I feel like my lease offer is not the best but might be a better purchase if I could get it CPO'd.

    My total monthly payment with taxes would be 569 and my initial out of pocket would be 1431.

    Now for a total newbie question: the residual value I am quoted - will that be the price I have to pay at the end of the lease if I want to purchase? Is there a chance they would push that higher? They did mention that depending on BMW's assessment, the number could be lower but no higher.

    Thanks again for helping out
  • sdsualumssdsualums Member Posts: 11
    What are the money factors and residuals for December? 10k 36 month. 3rd post and I can't seem to get an answer on this. Please help. Thanks in advance.
  • abuckabuck Member Posts: 6
    I am leasing for the first time and got an offer on a 528i base with ipod added for $562 a month for 36 mos., 12k mi a year. $965 drive off. Can get xenon for a bit more (thought they were standard). Is this a good deal (supposedly expires tomorrow night)? and what other questions should I be asking before I jump in?
    thanks.
  • jayriderjayrider Member Posts: 3,602
    At the end of the lease you just walk away with no obligation to buy. If you want to buy then market conditions dictate the selling price which for you has a ceiling outlined in your lease. You could offer less or they may offer less. Put a sign on your window to let others know you are turning in your car. A bunch may follow you to the dealer to line up for your bmw. Then the dealer can sell it to them at a higher price if you decline the honor. What a nice gesture on your part that would be.
  • croni003croni003 Member Posts: 14
    Well, I ran the numbers every which way but loose and decided to lease this used 2007 530i for two years.

    2007 530i w/ sport, premium, cold, tint, chrome wheels at 20k miles
    Selling price 26,500
    residual 16,950
    MF 0.00315
    24 month term
    drive off $1000
    monthly $569 (with taxes)

    In the end, it would have been close to a wash for a purchase and like the last poster mentioned, I can see at the end of 2 years how I like the car and what will they sell it to me for....
  • yatzeyatze Member Posts: 33
    Thanks for all the sound advice I've received on this forum. It really works.

    So, I have found a dealer who will sell me my leased 2006 BMW 530xi wagon with 20K miles as a certified pre-owned for 29K.

    What do you think? What questions should I ask? I plan to finance it through BMW financial as I did the lease.

    Thanks for your help. The car comes off lease beginning of March.

    I live in northern NJ.
  • jayriderjayrider Member Posts: 3,602
    Sounds like a good starting point. There are lots of 06's coming off lease so there should be room for a better price. If your driving patterns remain the same, in three years you will only have 40k on the car. Low miles for a 6 year bmw and certainly an attractive used car. Do some research on asking prices nationally and see if the deal is decent. Ask what the price is without the CPO. If you have had good luck with the car so far, and maintained it well there is no reason to believe a major problem will occur in the next 20k miles. Put the difference in the bank and live on the edge a bit. BMW is betting you won't use the warranty and they should know.
  • yatzeyatze Member Posts: 33
    Thanks for your prompt response.

    Dealer said 26K without CPO, but finance rate goes up to 1.9 instead of 0.9. I have to finance it unfortunately.

    I have taken good care of this car.

    I will probably start to put on more miles because if I buy this I will sell the "backup" car I have and stick with just the one car.

    I don't mind living on the edge, but I know that this car is EXPENSIVE to maintain and fix.
  • jayriderjayrider Member Posts: 3,602
    The deal seems decent but the auto world will be different at the end of feb. Auction prices will change values as the economy tanks. Make no mistake -- things will get worse before they get better. What was the buyout number on your lease at it's inception? I guess I figured that someone with a moniker yatze would be prone to roll the dice. I would be willing to bet that your repairs for the next three years will never come close to 3k. And that would be just to break even. You should really look at 6k in repairs as the benchmark. But peace of mind is worth something too -- I get mine from chemistry. Get back to me at the end of Feb. and I'll see if I can get the current auction prices for you.
  • jayriderjayrider Member Posts: 3,602
    You didn't mention the first 2 payments are made by bmw -- on website. Also you need to check what's not covered by cpo. A big one is brakes- so make sure you know what's left when you buy.
  • yatzeyatze Member Posts: 33
    Thanks again for the prompt response. My original residual is $36,579. I put down multiple security deposits so would get back about $4000.

    Dealer suggested bringing in car for "pre -pre- inspection in early February while still under lease to see what needs to be done, if anything so I won't have to pay for it.

    He gave me the papers for what is covered CPO -- will re-examine then again. Also said I could get a "maintenance" contract for an additional 1895. Not sure I want to do that.

    I will take advantage of your offer to contact you end of February for latest auction #s.

    In the meantime, have looked for 06 wagons on the internet and $29k is the low end CPO, except for a car down in Miami for 27,595 but that car has 40K miles.
    NYC BMW has almost my identical car, close mileage for $28,900 so no much difference. Others are in the 30's.

    I will contact you in February before I go back to the dealer. My lease in up March 6.

    Thanks for all your help.
  • jayriderjayrider Member Posts: 3,602
    Sounds like you are doing the best you can to get a fair deal -- did see one like yours for 24500 with similar miles on ebay so you are pretty close already. You might offer $500 for the maintenence package and let them sit on it. The less likely they feel you are going to buy and the more likely they feel they are going to put your car on the lot -- the better your negotiating position. Later.
  • yatzeyatze Member Posts: 33
    Do you know if the CPO can be negotiated or is that set by BMW? I have gotten different quotes on this in the past. Thanks.
  • jayriderjayrider Member Posts: 3,602
    Your total price is very negotiable. If they negotiate a better price off the cpo/maintenance packs they could be negotiating off the selling price of the car. My guess is that auction price on your car could be in the low 20's now. If they are selling to you for 26k there may be up to 2k for them to give on a bottom line deal. The auction price in march will be lower so you may be able to get the car for a bit less than 26 or you can pay 29 for the cpo and try to weasel the maintenence pack. If it doesn't cover brakes, I would pass on that and go for a better deal. You have to project a predisposition to turn the car in unless they make the deal super. If they won't move the day you have to turn it in then you know you've don the best and can sign on theline. Also, if you feel comfortable with this dealer and have checked with others who are satisfied then that is worth something as well. Lots to consider but stay frosty with cold dead eyes --- tell them your wife is dead against it and you're going to buy a ford focus cause of economics --- make up your own bs. It can work.
  • yatzeyatze Member Posts: 33
    Thanks. I will touch base with you in February. I live in a pretty affluent area, and this was the only dealer out of 4 who would even consider doing this -- the others said they don't buy back cars. End of story. My dealer would only sell/lease a new car.

    I already told this dealer that I would walk away if the deal wasn't good as I have 2 other cars and either would keep them or get a honda. Didn't faze them. THey said check back with them in February. So I will and thank you.
  • gardisgardis Member Posts: 185
    Yatze, I just checked my local dealer here in Fairfield County, CT., they have a 2006 530XIT wagon, with 44,138 miles (!!) and asking $34,900 for the vehicle, CPO. I would say, I have no experience at all like Jayrider, but to me, that $29,000 seems like a deal for a car with only 20K miles? Wow that sounds even cheap to me.
  • gardisgardis Member Posts: 185
    Jayrider, what do you think of this deal:
    2007 530i with 28K miles, one owner. Warranty runs Aug. 2012. (Aug. 2010 on the service warranty).

    Vehicle has all pkgs (sports, premium, cold and 1more I can't remember), NAV,
    premium sound, many other things, dealer called it "loaded".
    They are asking $34,900 for it, and the sales girl said they would negotiate. Also has tinted windows (after-market) which they offered to remove no charge. Since the car is black/black, it's a little too dark.

    I'm reading what you are saying about the market, and thinking maybe I let them sit on the car and wait it out, but the car is beautiful, I hate to lose out. It's been on the lot for about 3 to 4 weeks now. I'm trading in a 1996 328i with 106K miles on it. Don't have a clue what they'd offer me for the car.

    Then there's another dealer with a 2007 530XI, 18K miles, white/beige, sports and premium pkgs only, he wants $36,900 firm. He calls that price "competitive." I don't know that they'll move on it, yet I'm attracted to the warranty on that vehicle which runs until Apr 2014 since the car didn't go into service until Apr 2008 for some reason. His position is that since his vehicle has AWD it's worth the extra. I couldn't care less about the AWD.

    What do you think, any advice.? I'm holding off and waiting. I figure who's looking for a new car in early January.

    thanks Jayrider.
    Gardis in CT
    gardis72@gmail.com
  • jayriderjayrider Member Posts: 3,602
    Since you are trading 1996, there is almost no way to calculate your deal. You need to sell it or wholesale it out because no dealer will give you $500 for it. Pay a $100-$150 to have it detailed and drive it another year.It will seem like a different car. Best advice you'll get.
  • gardisgardis Member Posts: 185
    Jayrider
    I don't get it. I am talking about purchasing the vehicle, not leasing.
    I'm planning to trade in the 1996.
    I don't follow you. You're saying don't buy anything, keep what I have and drive it another year? Please clarify. Sorry, and thanks.
  • jayriderjayrider Member Posts: 3,602
    Trading a car turns a clear deal into a muddy one. What the dealer gives you in trade varies from one dealer to another so unless you sell your car before you deal you really don't know where you stand. With a 8 year old car with 100k plus miles a dealer isn't going to be interested unless it is pristine and runs like new in which case you should sell it yourself. If the car is rough, no one will want it. Get it detailed and drive it til the wheels fall off. Every month bank the payments then when it finally dies donate it and start searching for a new one. The dealers you talked to don't see you as a serious buyer. From our discussions I don't see you as a serious buyer. Nothing wrong with that, just an impression. You haven't test drove any of the cars you seem interested in so that would be a good first step. You might decide your car compares well enough to keep it. If your present car is dependable you should be able to get another 50k out of it. Me personally, I would never spend 35k on a used car. No way no how. So many fine autos available foreign and domestic brand spanking new with great features safety and value. To each his own -- good luck.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi sdsualums. BMW just introduced its January lease program a few days ago. BMW Financial Services' new buy rate lease money factor and residual value for a 36 month lease of a 2008 528i with 10,000 miles per year are .00100 and 56%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome abuck. The most important numbers that you can find out when negotiating a lease are the MSRP and selling price of the car that you want. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without these two numbers A) it is impossible to calculate a lease payment on your own to double check the one that you were quoted and B) it is difficult to tell how much of a dealer discount you are being given. Find out what these numbers are and let us know. I am sure that either myself or another helpful community member will gladly give you their opinion on them.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • soupconsoupcon Member Posts: 25
    car_man!
    can you tell me the january 2009 residual and money factor for MY08 550i's (36mo/10k)? i heard the residuals went down on a lot or all of the MY08's.
  • eights38eights38 Member Posts: 145
    Hi soupcon,

    2008 BMW 550
    36 Months - 10,000 Miles per Year - 0.00120 Money Factor - 56% Residual

    Best,
    Matt
    eights38@gmail.com
  • abuckabuck Member Posts: 6
    Carman,

    Thanks so much for the response. I went ahead and leased the car on the 2nd of january, in Los Angeles, but i would really appreciate some feedback on my deal, so that in three years I might make a more informed decision and not get stuck in my newbie mistakes.
    Here are the numbers:
    08 528i adding ipod/usb and xenon headlights. 36 mos/12k

    MSRP $46,625
    Agreed upon price: $43,560
    Adjusted Cap (incl 985 driveoff): $44491
    residual: $26576
    Depreciation:$17915
    rent charge:$895
    monthly payment (incl tax): $565

    So, I guess I should have driven the agreed upon price lower, and then I might have gotten a better deal. classically, I was a bit smitten with the monthly payment, so I am sure I did this whole thing to the dealer's advantage.
    Would appreciate any feedback to offset the learning curve.
    Thanks!
  • regissa1regissa1 Member Posts: 5
    I just had an offer from my local BMW Dealership for a 528I
    Premium Package - Sport Package Power Seats.
    36 month/12000 miles
    2500.00 Down 697.00 + tax
    MSRP 52825.00
    Cap Cost 2500
    Adj Cap Cost 51250
    Money Factor .00190
    Residual ( Lease) 31695.
    I know I can get a better deal.
    Can somoeone help with a reasonable offer?
    Thanks much
  • regissa1regissa1 Member Posts: 5
    I also forgot to add that I am a repeat customer and have Excellent Credit.
  • romerromer Member Posts: 4
    Car_man-

    Please provide the money factor and residuals on a 2008 and 2009 535i, 12k mi/yr., 36 month lease.

    Thanks.
  • berrisj1berrisj1 Member Posts: 10
    Just was offered the following deal over-the-phone from the salesman I have purchased from in the past. Location West Bloomfield, Michigan.

    MSRP Invoice
    528i (Xdrive) 48,100 44,330
    Premium 2,400 2,185
    Cold Weather 750 685
    Xenon lights 900 820
    iPod adaptor 400 365
    _______________________
    53,375 49,310

    The deal is no money down, 12K miles, 36 months, $769 (including tax)

    I don't know the money factor, the residual or the selling price and I am not sure how to find out if they were good even if I knew them.

    Would appreciate all insights.
  • berrisj1berrisj1 Member Posts: 10
    Have more information on above deal.

    MSRP is $52,875. (different MSRP for same equipment)
    Sale price is $50,375
    Residual is 60% or $31,725
    Money factor is .00215
  • regissa1regissa1 Member Posts: 5
    Thanks for info.
    I was able to get them to go to 630 + tx for 2009 bmw 5 series premium and sport.
    I want it at 630.00 tax incuded. So far its a NO. I am not giving up.
    R
  • sellmyhome55sellmyhome55 Member Posts: 3
    Hi Carman and board,

    I am interested in leasing a 2009 535 XI with navigation and Satellite radio.

    Has anyone leased on and got a good deal? I am so confused when negotiating and got ripped off on my Mercedes E350 which luckily is coming up off lease.

    Any help, past dealings or pointers on fair deals would be great.

    Thanks

    :confuse:
    M
  • broedmundbroedmund Member Posts: 3
    Car man,

    I have 2007 530i and the lease ends Jan, 2010 however I already used up all my miles today and can't use it but stuck w/ the rest of monthly payments. Is it better just keeping it till it's due or should I trade it in?

    I'd appreciate your opinions, thanks!!
  • craigm1841craigm1841 Member Posts: 4
    just drive it and pay for the miles. i think its like 10 cents a mile if you buy them from bmw in advance. it'll cost you $1000 bucks for 10,000 miles. just dont drive around in circles all year and you will be fine. since you prob cant turn your car in and you need to drive something, it'll be cheaper than leasing another vehicle and still having to make payments on the 530, even if there was some way to turn the vehicle in early you would prob be heavily penalized and it would be cheaper to just pay for the overmilage
  • thunder10thunder10 Member Posts: 10
    Hi Guys trying to getout of my 08 535 lease.
    I still have 32 months left(out of 36)
    any suggestions please let me know at anujsharma10@yahoo.com ? I stay in New Jersey.

    08 535i Prem\Nav\Cold my payment is only 583 includes Tax....
  • rocky725rocky725 Member Posts: 30
  • jmcbmwjmcbmw Member Posts: 85
    I've had 3 successful transactions using http://swapalease.com/
  • jayriderjayrider Member Posts: 3,602
    Did you take over leases or sell them. Also how is sales tax computed on lease you buy?
  • thunder10thunder10 Member Posts: 10
    I thought people dont really use/trust these website's.......

    Its's a tough one for me... I have to get out of this lease but I know I'll never get a deal for a BMW 535 for $583.....
  • regissa1regissa1 Member Posts: 5
    Really... How did you get this deal? How much down you put? Options on 535?
    I just returned my 06 325I to my local dealer for 09 528 I, they paid for the remainer of the lease on the 3 series. ( 3 months, I paid one) - plus 2500.00 down. My payment 640.00 Tax included. .. Premium pack./.xenon light/ipod adapter/xm radio.
  • jayriderjayrider Member Posts: 3,602
    Just read $2500 bmw money til feb 2. Check it out.
  • jmcbmwjmcbmw Member Posts: 85
    I got out of 3 leases on swapalease. Just paid the $150 and posted the ad and pictures. Wait for responses, show the car and file the paperwork. The sales tax is paid montly based on the county of registration so will change if your county is different (at least in CA). I have had three seamless transactions (2 BMW and 1 Mercedes). The person interested actually has to have credit to qualify for the sames terms as your lease was aquired under.
  • thrawn1thrawn1 Member Posts: 2
    What do you think of this deal I just negotiated on a 535xi lease with cold weather, navi, satelite radio, ipod adapter?

    MSRP: $60,670
    Adjusted cap cost with $2,500 BMW rebate = $56,133.07
    3 year lease, 15,000 miles per year
    Money rate: .00175
    Residual: 58%
    No money down
    $798.33 per month

    Is this a good deal?
  • gardisgardis Member Posts: 185
    Wow, $28,800 total for a lease on a car, at the end of which you give the keys back and get nothing. That comes to exactly half the total value of the new vehicle. Am I nuts, or is this whole world off its rocker??
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