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BMW 5-Series Lease Questions
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Comments
First I need either the invoice price of the car or give me the specs and I can tell you what the invoice price is. Based on that we can see how much over invoice you are paying. That will give you an idea if you are getting a "good deal". Most recommend not paying more than $500 over invoice from what I have seen.
Since your in CA, I am assuming you are looking at a 528i. The MF and residual you were quoted are correct.
Line item your drive offs for me. When I try to back out the #'s something seems off. How much was your acquisition fee? What’s the tax rate in CA?
The finance department is usually credited with any other profit on the deal.. BMWFS pays the dealer 70% of any extra money made on money factor or acquisition fee bumps over the base rate..
BMW dealers can usually see about 5% of invoice, after the sale, in CSI bonuses, etc... The sales/finance people don't see any of that money.. That said, very few BMW dealers will do a deal at invoice.. unless it is a hard to move car at the end of the year...
Sales/finance managers generally have an average margin and a sales goal that they need to hit, to generate a certain profitability for the dealership.. There may be some variation in deals... but, they want that number.. and that's what they are working towards.. I like to know what the numbers are... but, I tend to not worry about who is making what, other than knowing their motivation... What comes out of my pocket is the number that matters to me... I find it rather rude to bring up compensation matters during a negotiation... by either the buyer or seller..
regards,
kyfdx
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thoughts? i don't see it in any of the posts and i'm trying to understand the pros/cons
So applying what you are saying to my deal, which is:
2010 535ix with Premium Pkg, Access Control and NAV
It’s a demo car with 7k miles on it
$57,875 MSRP
$50,279 Sales Price
$32,930 Residual (56.9%)
.00217 MF
3yr lease, 12k miles
$599/mth
Due at signing, $599 1st mth, $600 security dep, $925 Acq. Fee, $2,400 MSD, $190 State/doc fees, $47 plate/title
Yes, the sales person gets the marked up acg. fee, but that is all they get? The sales person does not get a cut of the MF above BMWFS set rate? In my case, BMWFS requires a .00035 on top of the 00165 because it is being purchased by a tax exempt entity. And there is no money being made off the sales price of the car because it is priced below dealer invoice?
But, the only thing you really need to know.. is if this deal is cheaper than what you can negotiate on a new (non-demo) car? It is a 3-year lease... so... .cheaper is cheaper.. As long as you have warranty and maintenance for the full term, then the 7K miles mean nothing to you..
I have to say... for a $58K MSRP car... $630/mo. is a great deal (amortized the acq.fee), even if you did have to do 4 MSDs to get it.. Does that include tax, as well?
You can get lost in the money factors and acquisition fees, after awhile... Sometimes, you need to look at the real world finances. How much am I paying to rent this car, per month? This looks cheap to me...
regards,
kyfdx
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J
any thoughts?
Below is the offer I got from a Dealer in New Jersey. I am a returning customer
MSRP 49275
Sale Price 45500
MF - 0.00145
Residual - 58%
15000 miles a year
Due at signing - 2087
Monthly 627
Please let me know is this is a good deal or not.
thanks
2010 528xi 36 month 36,000 mile lease
2010 528xi 36 month 30,000 mile lease
Also, realize I can browse the "prices paid" forum, but wondering if there is becoming a standard "over invoice" price to be paid for this car to calculate a fair lease.
Thanks!
MSRP $47,375
SALE PRICE $44,250
$2,550 DOWN
$598 PER MONTH
36 MONTHS
15K
RESIDUAL 58%
MF .00145
MSRP: 54,500
Negotiated Price: 52,000
MF: 0.00180
Residual: 61%
1500 initial payment includes first month payment, acquisition fee, document, title etc.
Monthly payment of 725.
To me this sounds like a BAD deal. I have excellent credit. Any input will be appreciated.
They only gave you $2,500 below MSRP and they bumped the MF. The current MF for that car is .00165 but dealers are allowed to bump it up for extra profit. The residual is correct.
I was told of this program too and the site below has a good thread concerning the topic:
http://www.bimmerfest.com/forums/showthread.php?t=298834
It appears there are several questions to get answered before I can make a good value determination but the program seems to carry a hefty risk at the back end.
Carman, are you familiar with the BMW Select Program? :confuse:
wow what a great forum! I learned a bunch from you guys. Here's my deal 2010 528xi $49.4 msrp vp package split rear seat $589 month 36/12k $6790 driveoff with $4800 in msd's only 7 that count -00049 mf wow that helps 6.25% mass tax
I found that BMW stores in my market (Boston) inflate the MF 20-30 points that's $20 $25 a month more (shame shame) on them TIP ask for them to conferm the base MF rate aka lease loan rate they'll hide it if they can they keep 70cents on the dollor over the base rate (sneaky)
it's not much but hey it's my money just be upfront about it
Carman, or anyone else in the community - are there any other insights that you have on the select program? it does have a ballon payment on the backend. because i live in ohio, i'm guaranteed 2.9% interest if i choose to finance the ballon payment for another 1-2 years OR i can pay it off OR i can take the residual value and roll into a new vehicle at the time.
The drawback in comparison with a lease, is you don't have the option to turn it in at the end of the term.... You have to refinance the balloon, or sell the car, and repay the balance...
Generally, they created the program as an alternative to leases for full-tax states like Illinois and Texas. It preserves the trade-in tax credit for those states, by putting the car in the name of the buyer, rather than a leasing company.
It is rarely used outside of the states with those taxing policies..
There is nothing inherently wrong with it... Though, many people have the opinion that if you can't afford to pay for a car with a 60-month loan, then it is too expensive for your budget.
regards,
kyfdx
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2300 at sign in
4000 trade
36/ 15K/year /574 (inc. tax)
58% residual
In the past I have always bought my cars but I am considering leasing a car at this time. I am looking at leasing a 2009 or 2010 528i with Prem package, navigation, park distance control and split rear folding seats. I am looking at a 3yr lease with 15K miles. Can I ask for some advice on what is a reasonable purchase price, what is the MF and what would be reasonable monthly payments. Live in SoCal.
Any help would be much appreciated.
i have a vehicle allowance as part of my compensation package and i drive too many miles for a straight lease program. based on what the dealer told me, i can also roll the vehicle into a new vehicle and continue the lease type payments. i never plan nor need to purchase a vehicle given my situation so i'm going to go with it.
Car_man
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Car_man
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The money factor for a lease with only 10,000 miles per year is exactly the same, but the residual value would be 1% higher.
Car_man
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2010 - 530i (with Premium and Cold weather Pkg)
retails: $53,425 - ($3000 discount on the vehicle)
residual value: 61% at 10,000 miles per year (I don't drive much, so 10,000 is fine for me)
lease rate: .00113 with (6) six multiple security deposits ($700 x 6 = $4200)
$662.34/mo including tax – with $4937.34 due at singing ($4200 is refundable SD) (Sales tax in here is 6.75%)
Is this a good/bad deal?
Thanks in advance!
Best Wishes...... :mad:
Thanks for your reply. I have worked out the following "terms" with my dealer on a 2010 528XI, but we are not coming up with the same monthly payments. Here are the particulars:
MSRP of 52,895
Selling price of 49,500
Money Factor of .00155 and
Residual of 61% for 10K, 60% for 12K
No other cap reduction or cap increases are including, as I am paying all fees and taxes "at closing".
Also, I am turning in a leased car, and I am under the impression that in Illinois the Fair Market Value of the car can be used to reduce the taxes on the transaction.
So, I would greatly appreciate it if you would:
1) Advise me what you think the monthly payments should be for the 10K and 12K option given these numbers
2) Confirm that the taxes for this vehicle would be as I describe. Thanks!
Car_man
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According to my calculations, if you were to lease a 2010 BMW 528xi Sedan that has an MSRP of $52,895 and a selling price of $49,500 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $620. The payment for a lease with only 10,000 miles per year would drop slightly to around $606.
Car_man
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I need your help in determining whether this is a good deal on a 2010 BMW 528i:
MSRP: $49,400
Sale Price: $47,400
MF: .0016
Residual: 61%
Miles: 10,000 per year
Monthly Payment: $661 excluding tax
I am not paying anything out of pocket. The dealer is going to pay for first payment, aquisition fees, security deposit, etc.
Thanks for your help!!
If using the same numbers, what would the lease payment be for 15k miles per year?
regards,
kyfdx
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also and prices paid and experiences would be appreciated!
Thanks.
i was given a residual of 57% by the dealer for 10k and 36 months, but i saw somewhere else the residual listed at 57% for 15k miles per year and am wondering if the dealer gave me wrong information or i should blame it on the internets.
trying to get a deal done this week so any insight quickly would be great help!
also, has anyone been getting straight invoice or even below? a 550 with manual transmission is hard to come by without ordering.
1. I would prefer a car with the Logic 7 sound system. Since few dealers seem to have one in stock, will this make it more expensive for me to lease the car? For example, will the dealer be less willing to deal on the sales price (cap cost) if he has to obtain the car from another dealership? (I know I'll have to pay for the cost to truck the vehicle here.)
2. Based on what I have read on this forum and elsewhere, I was thinking I would offer to pay a cap cost of $1000 above invoice and a MF of .00156. Is that unrealistic?
Thank you.
2010 BMW 550i Sedan
24 Month – Residual 61% of MSRP – .00155 Base Rate
36 Month – Residual 57% of MSRP – .00155 Base Rate
for 15K miles per year, you should add 3% for 10K miles., MF does not change.
You can shoot for invoice and agree on $2-500 over with some dealers.
You will most probably have to order one. Not many 550 are in stock even with auto.
Thank you.
Once you arrive at a selling price that you are comfortable with, have the dealer calculate your car's monthly payment using its buy rate lease money factor of .00145 (.00160 for non-loyal customers who wish to have their security deposit waived).
Car_man
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Car_man
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Your response is greatly appreciated.
Thank you.
Car_man
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