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BMW 5-Series Lease Questions

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Comments

  • bmwagainmaybebmwagainmaybe Member Posts: 11
    I had no idea that the mf and rv might be different on the demo model of the same year. The salesman made a point of telling me that my mileage allowance starts with the miles on the odometer (as if zeroed out). I think he was asking if I would be interested if the monthly payment were the same. I like to analyze the deal, so knowing the underlying numbers, ie the selling price of the car for the lease helps me determine if it is a good deal.

    Why do you say save $200 per month to look at the deal on a lease of a car that's only got 4,000 miles on it. How much in terms of selling dollars do you think that would equal if I could get a new 2010 for about $500 over invoice (less options).
  • jayriderjayrider Member Posts: 3,602
    I am saying $200 less on the demo vs new from my personal perspective. Can't talk for anyone else but someone else put the first 4k miles on the car which detracts from it's desirability to me. Also bmw gives them money back on that car for loaner use. Can't dissect the deal but that is what I feel is appropriate based on a brief discussion with the local BMW dealer. He said that twice a year they put the loaners on sale/lease and it should save $200 a month vs new with all the perks and rebate cash. Don't know if it was true -- never went any further.
  • mobilejaemobilejae Member Posts: 15
    My sales guy is now putting fees on this lease deal. Or, at least I think he is. Here is the break down of the deal:

    2010 528xi with premium, value, and nav package

    MSRP $51,775

    Selling price: $49,720

    Dealer acquisition fee: $725
    Documentation fee: $369

    MF: .00195
    Residual: 62%

    Wants me to start the lease by paying:

    1702 Tax
    508 registration fee
    725 acquisition fee
    369 doc fee
    659 1st month

    $3,963 one time then $659/month for 36 months.

    He says that the dealer will make $800 off this deal.

    He also mentioned DAC fee (fee for BMW advertising on tv).

    I'm so tired of dealing with this. Is there any dealer out there that could really give me an honest decent deal?

    Damn.
  • jayriderjayrider Member Posts: 3,602
    edited February 2010
    comments; 1. the acq fee is kosher but the doc fee may be a bit high. Illinois caps those at $152. The bigger issue is the selling price. Every 1k you save off that saves you about $30 per month. According to truecar there is another 1k or so you should be getting. That is because the 5 will be replaced in a few months. On the other hand there probably aren't too many 528xi's around so maybe you could split the difference. If your lease payment is close to 1% of msrp before fees and taxes you are doing ok. Yours is 1.3% which not very good but not horrible in today's poor leasing climate. Just watch the fees. One site mandvleasing dot com has a zero down 535xi for 605 per but only 10k miles. Check them out or other leasing brokers. Check weleasebytel as well. Free quotes. I ran your numbers and came up with 648 per month before any fees.
  • hithit Member Posts: 36
    Where are you?? I can recommend the dealer I picked my car from in NJ if you need, pm me.

    I was pretty tired of shopping around and wasting time on trying to get the car as well, but it paid off at the end -- got a great deal on my 535xi.
  • mobilejaemobilejae Member Posts: 15
    Hit,

    I don't see a way to PM you from this forum. You can email me at jakekim1@gmail.com. I live in Teaneck, NJ. Your help will be much appreciated. Would you believe it, yesterday my right rear tire went flat. They are runflats and will cost $400 to replace before I send the car back in for the end of the lease...
  • bmwagainmaybebmwagainmaybe Member Posts: 11
    If anyone has this info, it would be greatly appreciated as my lease is up this month and I am hoping to see some improvement in the 535xi mf or incentives. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bmwagainmaybe. Here's the information that you're looking for. BMW Financial Services' new March buy rate lease money factor and residual value for a 36 month lease of a 2010 535xi with 15,000 miles per year are .00230 and 48%, respectively.

    Car_man
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  • jayriderjayrider Member Posts: 3,602
    5.52% mf and 48% rv = bad lease numbers. Probably a much better buy than lease.
  • bmwagainmaybebmwagainmaybe Member Posts: 11
    Salesman just called and advised March 2010 535xi with 15,000 miles program as follows:

    MF .0025
    Res. 48%
    Factory Cash $6,000

    So here's the question what should the price be for the car. He says MSRP is $57,470 and SP is $53,900 minus $6,000 = $47,900 plus I get $1,500 for loyalty as cap cost reduction.

    Edmunds shows Invoice as I equip. at $53,095 including $875 destination charge. Salesman says destination is $1,375. Thus he says he is selling car for $500 above invoice.

    Payment with 8.625% sales tax rolled in is $780/mos.

    Should price be lower??
  • speedynkspeedynk Member Posts: 5
    Hi
    Do you have the rates for 528i in S.Cal for 36 months 12 miles.I see a previous post mentions a $6000 discount plus loyalty - the rates last month were better for 528 v. 535 - hope they're still the same

    Thanks
  • jayriderjayrider Member Posts: 3,602
    I figured a lease on a 2011. Guessed at .00125 mf and 54% rv. $500 over invoice cap cost and rolled in the taxes and 1300 inception fees --came up with about $854. Just guessing on the numbers. Looks like $75 more for the brand new whiz banger. If you can afford it -- why not. For $2700 you get to ride for 3 years in the next best thing. :shades: If the lower lease is in the ballpark go for that. I am guessing so I could be wrong. :confuse:
  • bmwagainmaybebmwagainmaybe Member Posts: 11
    So I pulled the trigger tonight on the demo. I was told that it was actually the manager's car, not the loaner given to customers. Met the manager who confirmed it was his car, which makes sense because the loaners have less options. Car is mint.

    Trying to understand the numbers is no easy game on a lease, even when I ran them through a lease calculator on my iPhone and on the web. One reason the numbers get weird is because of the miles already on the "new" car and the effect on payment. I found that hidden item deep in the dealer's lease screen when we kept trying to see why my numbers were different.

    So here's what I leased: 2010 535xi, Saph. Black, Saddle Brown (not many of those around for sure) with 4,000 miles on the car. Options include Prem, Value, Nav, Sport, Comf. Access, Prem Audio, Sat, Rear Sunshade. MSRP is $61,645. Inv was around $56,895, SP is $53,900 less $6,000 factory cash plus $1,500 loyalty. MF .0025, Resid 48% on 15,000 miles/yr. Sales tax 8.625% in the lease.

    Mos. payment $785. I know the numbers seem off compared to a lease calculator, but I did shop around and was not seeing better numbers, never mind that I would not have wanted to pay a whole lot more for all the features.

    Had I leased a brand new 535xi with Prem, Value, Nav, Sat the payment would have been $780 on a $500 over invoice deal. Probably could have knocked a little more off that price.

    So, my feeling is that I got a lot of neat features on a sharp car for just a few dollars more per month. Since BMW provides free service, I can live with the 4,000 miles on the tires given the discount.

    I will pickup at the end of the month when I turn my 07 530i in. I'm looking forward to the bigger engine and creature comforts on the new BMW.

    Thanks for the help along the way. At least I don't have to do this again for 3 years.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the information that you're looking for, speedynk.

    BMW Financial Services' new March buy rate lease money factor and residual value for a 36 month lease of a 2010 528i with 12,000 miles per year are .00250 and 52%, respectively.

    I believe that BMW is currently providing $5,000 dealer cash plus the $1,500 loyalty cash on this car and that both of these cash incentives are compatible with the above lease program.

    Car_man
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  • jayriderjayrider Member Posts: 3,602
    Glad you are happy with your new ride. You should be. Just a comment that may clear up the numbers mystery. I've had several long discussions with the local bmw dealer about the loaners he puts up for sale -- usually in july and december 4-5k miles. He said when they are leased they do the numbers on that specific car with a formula from bmw. He said they are usually $100-150 less per month than new. Each one is a bit unique because of miles and equipment. Since you got 15k miles instead of 12k, you got a great deal.
  • bmwagainmaybebmwagainmaybe Member Posts: 11
    Jayrider,

    Thanks for the response. I was afraid to ask what you thought of the demo deal. The salesman did say that the car I leased were it not a demo would lease close to $900/mos on a $500 over invoice deal whether with Feb or March lease program. So in the words of James Brown: "I Feel Good".

    He said that since 2011 5 series will not have Xdrive until the fall, the 2010 inventory will still go fast and way before an Xdrive is available for anyone else coming off lease between now and the fall. Not to mention what the pricing will be on the new model the first few months.
  • jayriderjayrider Member Posts: 3,602
    Your deal confirms what my dealer said -- $115 saved per month --$4140 over 3 years. Now you can afford crown royal with those nachos instead of bud light. Ain't life grand. :)
  • speedynkspeedynk Member Posts: 5
    Thank-you for that prompt response - the leasing numbers are terrible- in comparison to the Feb rates and taking the $5000 dealer cash into consideration,my payments would go up $10!
    My current 528 lease ends end of April and I need my payment to go down - maybe its time to look at the Acura TL
  • mobilejaemobilejae Member Posts: 15
    I pulled the trigger this past weekend. I returned my 2008 328i convertible lease in and only had to pay $200. There was a scratch running all the way from my right front fender to the right rear fender. I had dings on the rims and other wear and tear. The salesguy at the dealer did not play any games. Gave me on 2010 528xi car that was MSRP $51,770 for $48,500 with 63% residual and .00195 MF. Included all the upfront fees in the lease and only paid $1K (doc fee and 1st month lease fee) and drove the car off the lot. I chose to pay more on the monthly then pay upfront. Cool sales guy. This site helped me tremendously!
  • m34lnchm34lnch Member Posts: 9
    Hi Car_man,
    According to Edmunds, there is build-out cash of $6000 on the 535i. But apparently it cannot be combined with leases, is that true? Is there any dealer cash (other than the Spring money) that we can combine with leases?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, speedynk.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi m34lnch. What you read is incorrect. The $6,000 "build-out" cash IS compatible with BMW Financial Services' lease program.

    Car_man
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  • djaystonedjaystone Member Posts: 2
    Hello Carman,

    I'm interested in leasing a 2010 M5 (36 months, 12k miles). Do you have current information on the MF and residual? Also, are there any current dealer or factory specials or programs that I should be aware of?

    Many thanks.
  • speedynkspeedynk Member Posts: 5
    Hi Car man
    Has the build out cash been increased from $5000 to $6000?
    I also have a general question- how can sales tax be charged (in CA) on a manufactures cap cost reduction which is marketing term for a discount?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Nice car. Here's the info that you're interested in, djaystone. BMW Financial Services' March buy rate lease money factor and residual value for a 36 month lease of a 2010 M5 with 12,000 miles per year are .00250 and 42%, respectively.

    While this car's lease program isn't great, BMW is providing a solid $7,500 dealer cash on it right now. Make sure to take this cash into account when negotiating the capitalized cost.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey speedynk. BMW is now providing $6,000 dealer cash on the 2010 535i. This cash is compatible with the special lease program.

    I am not personally familiar with how sales tax is calculated on leased vehicles in California, but you may be able to find out more information on this subject by visiting one of the following sites: California Franchise Tax Board or California Department of Motor Vehicles.

    Car_man
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  • sam911sam911 Member Posts: 13
    MF and RV 52% eating away the 5000 dealer incentive..
    NJ area
    asked my BMW dealer friend what i am looking at price of 528xi with value package finla price after taking 5000+ 1500 loyalty.
    the price is 45-46 otaly rediculous....the dealer want to keep the 5000K completly
    ( let them keep the car and they do not get the incentive unless they sell)
    sound gready

    might as well I wait for the new 2011 car (at least the RV will be 62 after 3 y)
  • bchipsbchips Member Posts: 3
    Hi Car_man-

    Any word on MF & Residuals for the following:

    2010 528i

    I was quoted .00250 and 52% for a 36mo/10K miles. Just wondering if that's legit and if anyone has found anything better out there.

    Thanks so much!
  • bmwagainmaybebmwagainmaybe Member Posts: 11
    Wow, what a nice step-up from my 07 530i. So much more power and new creature features. The 07 was non-nav and had Prem, Sat & heated seats. The new boy on the block has Nav, Sport Pack, Prem, Comfort Access, L7 & Rear sunshade, Saph. Black, Nat. Brown.

    The car is significantly quicker. The Nav is interesting and takes a bit of time to really get good at...and I am not challenged by tech, but the new iDrive is definitely different and has a learning curve. I have my phone paired but had double, triple entries and had to really clear out my contacts as it transferred ALL contacts. I have loaded parts of about 14 CDs into the music collection and still have 95% free space.

    Minor observations so far, the iPhone cable will not charge my iPhone 3gs. I am having salesman speak to service as I found a TSB about this. The other strange thing is that the USB port in the glovebox will not recognize my USB stick, thus no upload from USB stick. So I have been transferring in via CD drive.

    L7 sound is significantly improved over my std 07 audio.

    Rear sunshades which I never would have ordered do black out the car pretty nicely.

    I still have to get used to where all the buttons are around the controller and start programming the 1-6 buttons and set up my Sat Favorite stations.

    I'd say that's pretty good progress for one day...too bad I have to go to work soon.

    My deal was described back about two weeks ago on the board. Basically it was the manager's car with 4,000 miles on it and leased for 36 mos at $785 with no money down except 1st, title, bank, DMV fees. 15,000 miles, MF was .0025, Resid. was 48%, Factory discount $6,000, loyalty 1,500 and dealer price about $2,300 below invoice, NY sales tax for me is 8.625. Bottom line car was never titled; had I leased a never used with less features it would have been $780, to me it was a no-brainer.
  • cityboy2cityboy2 Member Posts: 27
    Sounds like a very nice deal, but what is your monthly payment? I'm looking for the similar model. In what area are you in?
  • rinku666rinku666 Member Posts: 3
    I recently bought a new space grey/ grey interior with dark poplar trim 2010 bmw 528i premium package, value package, navigation, and heated seats. mileage on car 152.... MSRP: $49625.... selling price $43000 3 year lease with 12000 miles a year....i paid 2000 at signing ( including taxes, registeration, 1st month payment, msc fees.), plus 779 for the leasing protection plan.... my monthly payment came out to be 765.78 per month including taxes and everything. ( I didnt give 5000 at signing, which makes my monthly payment higher, but i gave very little out of pocket).
    Also, im in california our sales tax is 9.75%

    I'm very happy with the car. What do you think of the deal? :):blush:
  • smithsongasmithsonga Member Posts: 123
    I am just amazed how different the lease deals are now.

    Back in Dec 2007, we leased a 2008 528i, $52k retail for $600/mth (24 mths, 10k miles/year) with $1800 total due at signing. 7% tax included.

    Now you have a $50k car, selling for $43k and the payment is still $765? Granted, 9.75% sales tax doesnt help.

    I think you got a great price, but the lease terms appear to stink.

    We purchased a CPO 550i with 35k miles a year ago for $35k. My monthly payment is $640 and i have a warranty until 2/2013 or 100k miles.
  • rinku666rinku666 Member Posts: 3
    edited March 2010
    yeah, the sales tax is pretty steep. The monthly payment before taxes is 690..
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, bchips. BMW Financial Services' March buy rate lease money factor and residual value for a 36 month lease of a 2010 528i with 10,000 miles per year are .00250 and 53%, respectively.

    When negotiating your lease on this car, make sure to take the $5,000 dealer cash that is currently available on it into account.

    Car_man
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  • snake_docsnake_doc Member Posts: 3
    edited April 2010
    for the last 10 days, so let me do the honors.

    I loved reading the forum threads and the price discussions. My first post here, so go easy on me folks.

    My current lease is due in early May and I'm wondering if the best rebates will be available in April or is it better to wait for May (in terms of manufacturer rebates, more low mileage demos) ? I'm the san fran bay area and very tempted to get a 5 series BMW (528 / 535xi).

    Thanks y'all!!
  • jayriderjayrider Member Posts: 3,602
    My local bmw dealer puts his demo's up for lease/sale twice a year. Spring and November. Ask yours when the loaners go on the block. Check the new lease payments and see if it's worth it. The new 5 series coming out makes evaluating the numbers more difficult.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome snake. BMW's current lease incentive program is scheduled to run through April 30th. It is difficult to say what its May program will be like at this point. Last year BMW enhanced its April programs for May, but it was not providing nearly as much support then as it is today. If I had to make an educated guess at this point, I would say that BMW's May programs will be about the same as its current one. However, that is only a guess...they could be better or they could be worse.

    If I had a lease that was scheduled to end in early May that I had to replace, I personally would probably play it safe and pull the trigger on a new BMW some time in April, but that's just me. The current program is attractive enough for me to justify getting a new BMW in April.

    Car_man
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  • popgrowl1popgrowl1 Member Posts: 3
    Real simple question (I hope) - In Miami and looking at a 535 with value pack and a few extras for $52k sticker price. With a 60 month lease and 15,000 annual miles, and with current April rebates, what should I be looking at for a good monthly lease payment with as little down as possible ($1000)? I am returning a leased 335 in excellent condition.

    Also, are least terms more favorable withth e 535s currently than with the 335s?

    Thank you
  • mmjonesmmjones Member Posts: 3
    In reading at the latest posts, I'm curious to know how the dealer incentives mentioned (5K / 6K) apply to a deal I was offered today on a 2010 550i GT:

    MSRP: $74,075
    Negotiated price: $67004
    Residual 60%
    $3000 due at signing (first month payment, 1K + fees)
    Monthly payment plus tax in CA: $962

    For the life of me I can't recall the Money Factor but if anyone can provide input as to if this is a good deal, or not, I would appreciate it!
  • popgrowl1popgrowl1 Member Posts: 3
    Sorry, this should read 36 month lease, not 60.
  • shyamyshyamy Member Posts: 23
    Doesnt seem to be a good month for leases...at least around here!

    My dealer quoted a mf of 0.0027 and the residual of 51% for 10,000 miles on a 2010 528i.
  • ardentaznardentazn Member Posts: 14
    Hello Car Man,
    I am interested in the 2010 535i. I was wondering if you can provide me with the MF and residuals. Are those numbers universal (across all dealers)? Thanks!
  • willfinewillfine Member Posts: 6
    edited May 2010
    To shyamy: Mine quoted those rates on 10,000 miles too, but there are signifcant incentives to make up for that. A $1500 loyalty rebate and $5000 in marketing support to the dealer.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello ardentazn. BMW Financial Services' May buy rate lease money factor and residual value for a 36 month lease of a 2010 535i with 15,000 miles per year are .00230 and 46%, respectively.

    When negotiating your lease on this car, make sure to take advantage of the $6,000 dealer cash that is currently available on it.

    These programs are national, so they should be the same at every dealer.

    Car_man
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  • ghstudioghstudio Member Posts: 972
    edited May 2010
    You have to really love the 2010 to buy a car that only has a 46% residual in 36 months...and at a rate of 5.52%. The discounts may look wonderful, but if you don't understand leasing, these rates are terrible.

    For example....let's take a 2010 msrp $55000, dealer gives you $1000 off plus the $6000 dealer cash.....no money down on the lease...your monthly payment will be about $830 plus tax (note: with money down which is how they always want to quote the deal, it will be less monthly, but pretty close to the same overall cost at the end of the lease which is what you really care about).

    Now take a 2011 with $55000 MSRP....same money factor/rate (ugly, but it is what is is), nothing off the car...buy at msrp. But residual after 36 months is 56%.(I'm guessing, of course...no way to guess what BMW will put on the car).....but the monthly lease payment will be about $900 a month.

    You might just want to wait for that 2011....and pass up the "wonderful deal" on the 2010.

    The key to this is the residual value. The 2011 should really hold it's value very well based on everything I've read.

    If you are going to compare leases, always compare based on no money down....just the first month's lease payment plus taxes title, registration....nothing else (bank fees, dealer fees, administrative fees all get rolled into the lease). Dealers hate to quote that way...it may take you three tries to get that number from your salesman...but get it. NO MONEY DOWN UP FRONT.....
  • twistedmetaltwistedmetal Member Posts: 15
    What do you mean they don't want to sell you a car? It sounds as if that is your choice.
  • ghstudioghstudio Member Posts: 972
    If you are considering leasing a BMW, make sure you understand multiple security deposits and why they are far far better than making a down payment. Don't rely on your dealer to explain....very few seem to even know they exist and most of those who do, don't understand why it's a good deal and try to talk you out of it.

    Yesterday, I visited my local BMW dealer....salesman never heard of MSD's and the finance manager said...oh that's a terrible way to use your money.

    It may be poor for him, but if you are comparing a $4000 down payment to using that same money on multiple security deposits, you would save over $1000 on your lease using multiple security deposits...with less risk, by the way. It's part of the BMW leasing program....just not understood.

    .
  • suznsaxsuznsax Member Posts: 13
    Hi Car_man - where can I find the June money factor/residual for 535GT?
    Many thanks
  • rich6rich6 Member Posts: 3
    need help - what is the best lease deal for the new 535 bmw.
  • mjopprumjoppru Member Posts: 18
    Carman, I could use a little help.

    Dealer is trying to get rid of the final '10 BMW 535 sedans.

    MSRP is $53,375. Residual is 49% on 10K mile lease for 36 months.

    $5995 total drive off with $548+tax/month. Tax is 8.75% in Orange County, CA so the payment would be $596 per month with $6K total down.

    I'm sure I can rework the payment to put less down and get to about $700/month with about $1800 down.

    I'd like to go with a 2010 model over the 2011 because the residual is much lower (about $8K) and the monthly payment is lower. I think I'd like to buy it at the end, so I like this option better.

    Do you have the money factors for June? I think I might be able to steal it.

    Thanks Mark
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