BMW 5-Series Lease Questions

mpdreamer · March 2009

Carman (or anybody that can help). I am trying to lease a 535i. Options include Premium Pkg, Sport Pkg, Sport auto with shift paddles, Comfort Access, heated front seats, Park Distance Control, Navigation, & ipod and usb adapter. Invoice (including destination charge) is 56750, and MSRP is 61725. Dealer is adding to invoice "MACO of 400 and "Training /Service Fee of $180, bringing Invoice to $57,330. I have a few questions:

1) Are the MACO and Training fees negotiable?

2) For a 10K 3 yr lease, I believe residual is 61% and MF is .00175; for 2 years, residual is 65% and MF is the same. Are these numbers correct?

3) How does the Conquest Bonus Cash of $2,500 work? I've been told it is essentially a cap cost reduction. Is that right?

4) How much of a bump to MF is it to include security deposit in MF? Approx. .00015?

5) What is a good 2 yr or 3 yr lease payment (including tax) on such a car? Many thanks!!!

bobby_j · March 2009

I just signed a lease for 3 years on a 535 with a similar invoice price. I got almost twice as many miles as you and was $4800 out of pocket, with 750 refundable at end of lease term. Monthly nut is $711. The key is to negotiate hard, and spend some time working with no less than 3 different dealers. Let them think that the inventory that they have is not "really" what you wanted, but for a good price you'll take it. I know I could have gotten a better deal, but only found out after I signed. I believe I could have saved another $1000 over the course of 3 years if I pushed harder. Don't let them "wear you out" by going to the manager for 20 minutes and making you wait by the salesperson's desk. If they go to the manager, you go with them. Once they quote you, say thank you - I will get back to you. Also NEVER tell them what you are being offered at another dealer! You lose your bargaining power that way. Lastly, always review the contract on your own time. Ask for a copy that you can look over. They will slip things in or remove your refundable deposit, and make it part of the overall costs, which you will never see again. Also look out for a fee to return the car. They will wait to the last minute to drop it on you, and count on the fact that it is 3 years away so it's not a big deal. Just tell them we never spoke about this and you will walk if they don't remove it - be prepared to walk. They will call you back within 4 to 5 days. Dealers are hungry for sales these days - don't let them BS you into thinking otherwise. Good luck!

gtli · March 2009

I've gotten rid of a lease on an H3 on Craigslist, and leased both a 335i and a GL450 from Swapalease.

Nothing but good experiences.

woodard1973 · March 2009

You can get a better selling price. I bought a similar model 528i '09 (MSRP of $53750) for $49,100 PLUS the $2500 off- final cap cost of $46,600.

Your MSRP is only $475 more than mine by you are paying $4250 more than I did. You should be able to get the cap cost down to about $47000.

sjd3 · March 2009

Carman.... i need quick help. As i was trying to work a lease deal for the 528i, the internet salesman offfers me this deal on the 535i as follows:

spoat automatic trans w/paddle shifters
premium
Sports
Nav
ipod and USB adapter
Dest charge is $825

MSRP $59,825
Selling Price $55,800

36 months
15,000 miles
Residual 58%

total out of pocket at signing is $2500

Monthly payment is $682.00 plus tax.

He then offers me the same package but with 12,000 (instead of 15,000) and with $2800 out of pocket for a monthly payment of $647 plus tax.

Are these good deals? If so which is the better one, if at all.? thanks, Im ready to lease but need to know your advice first. thanks

lutherrosa · March 2009

Thanks for your reply. Sorry for the delay in responding. I appreciate the advice and good tips. Did you get a sense for how the dealer was treating the Conquest Bonus Cash available as an allowance for this car? In theory, that bonus is supposed to reduce the cap cost, which given current residuals and money factors should bring payments below $700 (for a 10K lease), but it all depends on what price they are selling the car at. My sense is that they only want to talk payments and total drive off because if they gave you the actual numbers they are using, one sees that the dealer profit is still pretty high. Thanks again..

bobby_j · March 2009

They did treat the 2500 as cap cost reduction - You should absolutely pay much less than $700 per month based on the mileage you are driving. At the end of the day just be sure that they give you the contract to review at your leisure. There's no reason to feel pressured to review it and sign at the dealership.

lutherrosa · March 2009

Thanks again. BTW, for others out there, I have had dealers confirm for me that they bump up (from the residuals used for a 15K lease) the residual by 2 percentage points for a 12K lease, and 3 points on a 10K lease. For March, that means a 65% residual on a 2 year lease, and a 61% on a 3 year lease. Money factor is .00175. The dealer wants the exercise to be in a black box, with them throwing in drive off costs, security deposits, bonus cash, residuals, money factor, etc, and having a nice number come out at the other end that it thinks is acceptable to you whether or not it is a number that reflects what you should be paying..

CarMan@Edmunds · March 2009

You're welcome, cnj31. BMW is waiving all consumers' first two payments on finance contracts. The $2,500 is only available to "most customers" because it is for current BMW owners and the current owners of select competing luxury brands. If you do not currently own or you are not currently leasing any luxury vehicle, you do not qualify for the cash.

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CarMan@Edmunds · March 2009

Hi gti329. Unfortunately, it doesn't hurt to ask, but I doubt the fact that you had a BMW lease that ended a year ago makes you eligible for the loyalty offer.

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CarMan@Edmunds · March 2009

Hi sjd3. The dealer invoice price of the car that you described is $49,515. Plus, there is a $2,500 cash incentive available on it if you are a current BMW owner / lessee or the owner / lessee of a competing luxury vehicle. If you qualify for the cash incentive, I definitely think that you can do better than $50,625 on this car. Even if you don't, I would not be surprised if you were able to beat this deal by shopping around.

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cablue · March 2009

I took over a lease on an '06 550 from Leasetrader. It was great! Went very smoothly. It's not a scam. I was so pleased that I now have my '08 535 listed there now. They do the credit check on the buyer for you, so the purchaser is legit. It's a huge advantage for buyers, too, because they don't need to put down any money to get into a lease, there're often incentives to take over the leases, and you're not stuck in a long-term lease if you're looking to change cars more frequently. I took out a 2-yr. lease on my 535 but now am looking to get a mid-sized suv, which really is more practical for my life. Check out mine, #LT147734. Beautiful car! Any other questions, let me know.

robfloridagold · March 2009

I have a 650i which goes in June -- did European deliv which save $6K and $3k off dealer.

Msrp of 528i is $55320 -- inv $50,875 -- on US deliv what should I be paying for 12K per year on 24 or 36 mo with no monet down.

Cheers

Gordon

zcqq · March 2009

I have to terminate my leased 2008 BMW by buying from my dealer
the price now is around 44,000,
if this price negotiatable?
and is there any tips that i can use while negotiating with dealers?/

please help if you have such experience
many thanks !!

CarMan@Edmunds · March 2009

Hi mpdreamer. When I negotiate a deal on a new vehicle, I look at all of the fees that dealers try to pass a long to me as part of the vehicle's total selling price. If you feel as though the total price of the 5 that you are interested in, including the fees that you mentioned, is less than you would have to pay for this car elsewhere...it doesn't really matter how the selling price breaks down. Shop around with a few dealers for the lowest total price for the 535 that you're interested in and go with the dealer that offers you the best overall deal.

The money factor and residual value that you mentioned in your post are right on the money.

If you are eligible for the conquest cash, it indeed would act like a capitalized cost reduction. It would lower your car's selling price and in turn its monthly payment.

BMW FS will waive its security deposit requirement for non-returning lessees in exchange for a .00015 money factor increase.

Let's work up a sample lease payment on this car for you and see what we come up with. For now I will assume that you are interested in leasing an '09 535i that has an MSRP of $56,750 and a selling price of $55,330. According to my calculations, this car would have a 36 month, 10,000 mile per year, zero down, pre-tax monthly payment of around $733. The payment for an otherwise identical 24 month lease would be around $930.

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CarMan@Edmunds · March 2009

Hey sjd3. I definitely think that you can do better than the selling price that you were offered. The 535i that you are interested in probably has a spread of around $4,700 between its full MSRP and its dealer invoice price. Add to that the $2,500 owner loyalty / conquest cash that BMW is providing on this car and there's a total of around $7,200 to play with. You are only being given a dealer discount of $4,025 unless you don't qualify for the cash incentive or it is being taken into account elsewhere on which case this deal isn't bad.

Make sure that you're getting the $2,500 if you qualify for it and make sure that the dealer is using BMW Financial Services' current buy rate lease money factor of .00175 to calculate your monthly payment.

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CarMan@Edmunds · March 2009

Hi zcqq. You probably will be better off dealing directly with BMW Financial Services to try to purchase your leased vehicle rather than involving the dealer. Ultimately they are the ones who decide what you will have to pay to buy your leased vehicle. More often than not, banks will not negotiate the purchase prices of leased vehicles. Having said this, some occasionally will so it's always worth trying. The odds of you being able to negotiate a lower purchase price for your car than the one that is stated on your contract increase as you approach the scheduled end of your lease. If you are trying to buy your car well before its scheduled end date it is unlikely that BMW will cut you a deal on its purchase price.

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rrachapudi · April 2009

I was offered a '09 528xi with 4700 mi (executive demo) with many options. Can you please evaluate if this is a deal worth going for:
MSRP: $63205
Invoice: $59
Sale pr: $55600
BMW incentive: $2500
Allowed mileage: 15K/yr
Due@sign: 4421 (Taxes, inception, sec. dep, doc fee)
Monthly pmt: $643 for 36 months

rocky725 · April 2009

You must be getting every option under the sun for that MSRP on a 528xi! I think you'll find most people on this board will advise you to minimize your upfront payment as much as possible (first month and dmv fees). As a point of comparison, I have a few friends in the New York area that recently got a brand new 09 528xi with premium, cold weather, navigation, ipod adapter and satellite for $625 per month with first month, bank fee, and dmv due at signing (around $1,500). You should be able to do better on this vehicle.

rrachapudi · April 2009

Thanks for your reply. Yes, you are right about the options. (It does not have Active Cruise, Night Vision, LaneDeviation and M-Sport package.) It has all other options and that's why the MSRP is what it is. There is no down payment. The Due at signing includes taxes, 1 mo sec deposit and others you mentioned. So, it appears that I'm not too far apart from the deals being offered.

lookingforcars · April 2009

Hi -

Curious if you can share good lease deals for Prem/Nav/Sport packages on a 528XI in NJ? and from which dealers?

Thanks!

robfloridagold · April 2009

Carman

Does anyone know when the 2010 is being offered from -- slaesman says its too late to order an 09 for Euro delivery??

CarMan@Edmunds · April 2009

Hi robfloridagold. I think that BMW just introduced a lease program on the 2010 5-Series a few days ago, but I don't have it in front of me at the moment. I will make some calls and get the details for you. Post a reminder for me in this discussion tonight or tomorrow and I'll fill you in on the details. Talk to you soon.

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robfloridagold · April 2009

Car man

Thanks for that --look forward to hearing from you

CarMan@Edmunds · April 2009

You're welcome, robfloridagold. OK, here's what I was able to find out for you. BMW Financial Services' current buy rate lease money factor for a 36 month lease of any 2010 5-Series is .00175. The 36 month, 15,000 mile per year residual value for all '10 5-Series models other than the 550i is 58%. The 550's is only 57%.

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robfloridagold · April 2009

Car Man

Thanks for the quick service!!! Do you know what the factor is on 535i 36 mths 12,000??

Cheers

realhawker · April 2009

saw the rates posted, but when can we expect the 2010 to come out?

robfloridagold · April 2009

I am just waiting for BMW to advise -

eddie33081 · April 2009

Ok Just finished signing my lease. Im happy. Here it is

2009 BMW 535i Sedan
Alpine White
Black Dakota Leather
Sports Package
Premium Package
Sport Auto Trans w/ Paddle shifters
Navigation
Bamboo Anthracite Wood Trim

36mo 12K mi
$60,025 MSRP
$55,200.42 Selling Price
Residual 60%

Monthly Payment 682$ CA Tax Included (624$ with notax)

Total out of Pocket 2000$
Was 4500$ but BMW loyalty of 2500$ applied

What you guys think

kyfdx · April 2009

That's a good price..

robfloridagold · April 2009

great deal eddie!!

bmw530owner · April 2009

Help Help, I am not sure what to do.

My 2007 BMW 530i lease will end by June 2009. My dealer offer me to buyout the vehicle for $34,000 +Tax & Lic with CPO certified, and dealer will waive my last lease payment. Is this a good deal? Can the price be negotiated? If so, what is right price? Should I negotiate with one dealership or multiple dealerships?

The vehicle has Sport, Premium, and Nav with 30K miles.

jmcbmw · May 2009

My X3 is up next month and BMWFS called me directly to offer $7000 off of the residual and 5.9% for 60mos if I purchased the vehicle instead of turning it in. This does not include the certified warranty but I was shocked at the offer as I wasn't expecting anything. Maybe you should call BMWFS directly and see what they offer you as well.

x021627 · May 2009

Considering the price increase and swapping out the Satellite radio for the xenon i got, I got a simarlly equipped 2008 528xi for $649 mo with 12K for 36 months. You should be able to do much, much better, although I did good. I put no money down except basic inception fees and buy rate was higher...

Good Luck!

bmw530owner · May 2009

I am not as lucky. BMWFS say the buyout rate would be reduced 60 days before lease end

And my car does not show any reduction ;(

j1ggastyle · May 2009

2009 528i
30K 36months
3K Down
Premium
Ipod
Xenon
SAT

$518 Per Month Tax in

msonu · May 2009

National Base Price $45,800 Invoice $42,135

Optional Equipment $3,300 $3,005
ZPP Premium Package $2,400 $2,185
522 Xenon Adaptive Headlights $900 $820
205 6-Speed STEPTRONIC Automatic Transmission $0 $0

Destination Charge 825 825

Getting a quote from Dealer : Invoice +180(training fees)+500.00
45965+180+500 = 46645 - 2500(Conquest cash)= 44145 +TTL.

--------------------------------------------------------------------------------- -----------------------

Any more room for price negotiation?

Can I get away without paying Destination charge of 825.00.

This is the Cash Price. But I might go for a lease !!

Opinions and suggestions

--------------------------------------------------------------------------------- ------------

bmw530owner · May 2009

Can the conquest cash be used for Lease and Purchase? My dealership told me it can only be applied to lease, not purchase

From what I know, if purchasing a new BMW, they only have a 0.9% rate, and pay the first 2 months (upto 2 months).

Is my understanding correct? Or there are other perks that I am not aware?

outtolunch · May 2009

Sounds like a great deal. What did the 2K consist of and how much of that was cap reduction? Is the 2500K BMW loyalty come off the MSRP or the 55K sellimg price? I live in CA, what dealer did you buy from?

eddie33081 · May 2009

The 2k Contained first months payment, license/registration, bank fee, etc.

My negotiated sales price was 55,200. The BMW loyalty was almost all cap reduction which is what helped the payment be so low. Basically 4500 due at signing but with BMW loyalty credit of 2500 only 2000$ came out of pocket total.

Email me and I can give you more info eddie33081 at yahoo.com

msonu · May 2009

During the lease calculations, the delaer wants both the above.

Destination charge ; 825.00

Acquisition fees ; 825.00

Does one pay both?

What has been the case for some of the owners who leased lately?

x021627 · May 2009

Destination charge is a legal charge that you should see on the car sticker. The acquisition fee can be marked up to maximum of $825 and it appears that your dealer is charging you the max, if I remember correctly. It is a base of $625.

Yes, you can't get away from paying destination charge and how much you can negotiate acquisition fee from base of $625 is up to you.

karabass · May 2009

I'm being offered a 2009 BMW 528xi (a car was used as a loaner in a dealership). It has 5K miles on it.
Interior: deep blue sea metallic. Exterior: beige leatherette. Cold weather package.
36 months. 10K miles per year. $525/month (tax included). $1600 due at signing (first month included).

What do you think?

kyfdx · May 2009

Sounds like a good deal..

If it's a lease, then being a loaner is no issue... You'll be under warranty and maintenance for the entire term.

Leatherette in a 5-series? Must be a pretty low-option model. Any idea what the original MSRP is?

karabass · May 2009

$49,675.00

gardis · May 2009

Can I ask, what is the difference between leatherette and regular leather? I didn't even know that a luxury brand would offer a "fake" leather, if that is what it is?

gw265 · May 2009

I am being offered a "managers" car for lease. 2009 535xi with NAV, satellite, cold weather package, iPod adapter with 4K miles on the car. Lease is 36 months, 15K miles/year. Price is $683/month (includes NY taxes) with $2,600 down (including the $700 security deposit which is supposedly non-negotiable.

In your opinion, is this a good deal?

On a new 2009 car, I was offered a similarly equipped car for $770/month.

kyfdx · May 2009

Leatherette is vinyl...

It's been the standard interior on 3-series and 5-series for years..

Mercedes calls their vinyl, MB-Tex. Even an E-class doesn't come standard with leather.

kalacc · May 2009

Who was the dealer in Socal that you leased it from? Sounds like a fair deal.
It should be better now as they are trying to move the cars ASAP in May.

comer98 · May 2009

I wanted to share the deal I just put together on an 09 528i xDrive lease. I am currently an 06 X3 lessee and BMWFS is offering a pull-ahead program covering the last 3 payments on my lease plus an additional $1,500 loyalty cash on top of the lease cash for the 2009 528i xDrive. Here's the deal:

2009 528i xDrive; Alpine White/Cream Beige with Premium, Cold Weather, Xenons, Auto Trans
10k / 36 mos

MSRP: $52,975
Cap Cost: $45,890 (breakdown: Inv 48,765 - X3 loyalty 1,500 - lease cash 2,500 + acq fee 725 + dealer profit 400)
Residual: 61%
MF: .00175

Base Pmt = $515.54, no $ down, first payment due at signing

Let me know what you think! :shades:

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