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BMW 5-Series Lease Questions
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BMW FS' July buy rate lease money factor and residual value for a 36 month lease of a 2011 535i with 10,000 miles per year are .00230 and 62%, respectively for consumers who qualify for its top credit tiers.
The 61% resid is for a lease with 12,000 miles per year.
Car_man
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According to my calculations, if you were to lease a 2011 BMW 528i that has an MSRP of $49,075 and a selling price of $46,185 through BMW Financial Services right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment would be around $627, assuming that you qualify for its top credit tiers and pay a security deposit and acquisition fee at lease signing.
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I don't believe that BMW is currently providing any cash incentives on this car.
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The acquisition fee that you were quoted is correct, which is a good sign because BMW dealers often try to mark it up.
You never mentioned this car's selling price though. This is a very important number to find out. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is much more difficult to figure out how much of a dealer discount you are being given and in turn whether there is any room left to negotiate. Let us know what the selling price is and I'm sure that either myself or another knowledgeable community member will gladly let you know what they think.
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Each extra security deposit that you make after the first would lower that factor by .00007.
Make sure the dealer uses BMW FS' buy rate to calculate your payment.
As far as the selling price that you were quoted goes, the car that you described probably has a spread of $4,800 or so between its full MSRP and its dealer invoice price. The $2,600 dealer discount that you were quoted likely puts you at more than $2,000 over invoice.
Between the selling price and the marked-up money factor, I would not be surprised if you were able to beat this deal by haggling some more or shopping around.
Car_man
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Also, what do you think money factors and residuals will be in July? Any chance of a slightly lower money factor?
Thanks!
Billyd6
Got the car today, it is amazing! By far best car i have ever owned (leased).
Interest rates are lower than more than 2 years ago when I leased my 2008 BMW 535i, yet their money factor (from discussion here) seems much higher. I think that's exploitation.
I am considering a 2011 528i, with premium, night vision, sport, driver assistance, convenience, ehad-up display, xenon. The $60K MSRP is a tad higher than the $59K+ MSRP on my 2008. That car was discounted to 55K (which hopefully the 528i can); had a much lower MF, and I gave a refundable deposit -- I think maximum 7 deposits brought MF from 144 to 90.
I've had performance/service problems with both prior BMWs, and BMW company was indifferent/unresponsive. Dealers did not consistently honor 'loaner' policy.
I can't do the 528I unless I get a decent price and MF.
Anyway, CARMAN, my main question -- is aren't they just doing MF for what they can get away with, rather than what interest rates are, nowadays?
Are BMW sales so much better than everyone else that they can charge a high MF. I go to the showrooms, and I don't see people looking or buying.
To avoid their exploitative MF and $625 acquisition fee, you're almost better off buying the car, if you have the money. I'm only earning 2% in bank. They can borrow at prime rate of perhaps 3.25%.
MSRP: $73000 (with all my options). Dealer will discount 3K off MSRP
Residual: 59%
MF: 0.00230
Monthly payment is $958 + tax for 15K/year for 36 mo lease
or
Monthly payment is $998 + tax for 18k/year for 36 mos.
Please advise if this is a fair payment for this particular vehicle. Thank you
Can you please provide the money factor and residuals for a 2011 550, assuming both 36 and 48 months. I would be driving either 10,000 or 12,000 miles. I'm in California if that matters.
Thank you.
36/12K
0 Down
$600 per month includes 6% MI Tax
Thought this was a great deal? Thoughts!!!
I want to do the same thing you did but I have no idea what it means to "split the premium package credit"! Would you please explain.
Thanks
Andy
This lease program is good through the end of August.
Car_man
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Car_man
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I wanted to run this by the crowd/host to see if this seemed reasonable (in Central Florida) :
36mos/15k
lots of options MSRP 71025
Purchase price 67800
RV 55%
MF decreased from .00230 to .00209 with MSD x3 (at 1100 apiece- seems high, no?)
Doc fee 799
Acquisition fee 725 (brought him down from 925, per your guidance)
$7213 due at signing (3300 refundable) including first month lease/ 7% FLtax/tag/fees
Dealer's calculations= $1116/month
I feel like there is still some room to go, any thoughts?
Thanks!
I have a 2008 535Xi leased in 2007 and yes the MF were lower then, but your starting 144 was likely 70 lower than standard as BMW was offering a reduction to returning custoners, and your post indicates you had a prior BMW. The standard on a 36/39 mo lease was .0250 reduced to .0180 for returning customers.
I suggest you hold your opinion about exploitation until you go to a bank and see if you can get a car loan at prime, which is what you want BMW to give you. You and I are lending the bank money at close to 0% through our Fed, and they are charging us a markup a lot higher than BMW is.
But, I just now read on Edmunds (see that discusssion group) of problems with 2011 5-series; one person litigating, returning car.*** When I had my prior 530I in shop for 3 weeks, twice, BMW nationally was unsympathetic--things just shifted to dealer -- unlike Cadillac, Lincoln, Audi -- which responded to problems and supported dealer.
My study indicates BMW adjusts MF, only partly for interest rates, but mainly for market conditions, along with residuals. If you were right, then why is it that BMW predictably will lower MF in Sept and/or Oct, regardlessof interest rate levels.
Your point is a good one about the Fed; but BMW benefits from that low interest rate environment; in the past, BMW has used low MF to subsidize leases.
(I think the returning customer deal is to waive initial security deposit.)
As for service, the main problem is inconsistent policy on loaner cars, and that dealer, not BMW, mkes loaner car policy.
Further, when I had a MAJOR problem (car losing power) and BMW natl called me to tell me my car was indicating need of immediate attention, I went right away to dealer (where I bought it!) and was refused loaner, because it was not regular service.
So, with these kinds of problems, I can't consider without getting the greatest discount off MSRP, lowest MF.
*****If I knew the current 2011 problems would be resolved soon by software, I might go for a 528i, with current MF or MF on delivery, if it's lower, and use all my refundable security deposits for a lower MF; but the discount off MSRP offered is only $3K.
No car brand or car is perfect, so it's a hard call. The AudiA4 is tempting, though a bit small, but preferable to the 3 series.
Thanks for your input.
Let's take a look at the selling price. The car that you described probably has a spread of a little over $5,500 between its full MSRP and its dealer invoice price. That puts the $3,225 dealer discount that you were quoted at right around $2,250 or so over invoice. That's not terrible, but if you are in an area that has a decent level of competition I would not be surprised if you were able to beat this offer. I personally would shoot for $1,000 over invoice or so and see what happens. You can look up the exact invoice price of the car that you want, as you want it equipped over in the New Vehicle Pricing section of Edmunds.com.
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Jeannine Fallon
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Thanks as always!
Tom
I am not sure how it impacts this car's lease program though. For now I can provide you with BMW's normal lease program for this car. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2010 550xi Sedan with 12,000 miles per year are .00230 and 57%, respectively for consumers who qualify for its top credit tiers.
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Thanks.
Thanks again
BMW does waive its security deposit requirement for returning lessees, but I don't believe that loyal customers are being given any additional incentives on top of that this month.
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Thanks.
The more you drive and get used to it. The performance iz really amazing and I never for one minute regret paying a tad more for the extra umph of the turbo. If u can afford a 528 then you can afford the turbo. Seriously , if 750 is a stretch, then get a 335 and sVe the cash.
I have noticed in 2k miles. However all bmws are so precise that the smallest slope in a road, the cars always follow.
I'll be picking up my new 335i over there and will turn in my much loved 535xi when it arrives over here.
I am considering ED for a BMW in March 2011. I have Connecticut state license now, but will move to NYC in January 2011. If I place an order with BMW in Nov-Dec, Do I have to register the car immediately or I register when the car comes to USA (sometime in April-may 2011). Thanks.
You register it when your car arrive here.. When you put in the order, you don't have the VIN number nor the builded date (that come later).. So there is no way you can register anything... All you have at that point is a promise to buy and nothing else...
BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2011 535i with 15,000 miles per year are .00230 and 59%, respectively for consumers who qualify for its top credit tiers.
Car_man
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BMW Financial Services' October buy rate lease money factor and residual value for a 24 month lease of a 2011 528i with 12,000 miles per year are .00230 and 67%, respectively for consumers who qualify for its top credit tiers.
The numbers for an otherwise identical 36 month lease are .00230 and 61%.
Interestingly, the numbers for the 2011 535i are exactly the same.
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