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BMW 5-Series Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    edited July 2012
    I can certainly understand, bmw_nepa, they can be pretty confusing sometimes :) . BMW Financial Services' buy rate lease money factor and residual value for a 36-month lease of a 2012 535i xDrive Sedan with 10,000 miles per year are .00145 and 55%, respectively.

    I believe that there is a $2,500 option allowance and $750 owner loyalty cash on leases of this car right now. If you are able to negotiate a selling price of $1,000 over invoice minus any available cash incentives then yes that's how your car's capitalized cost would be calculated.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    edited July 2012
    Hello Charles. BMW Financial Services' July buy rate lease money factor and residual value for a 24-month lease of a 2012 528i Sedan with 10,000 miles per year are .00145 and 64%, respectively for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical 36-month lease are .00145 and 58%.

    There is a $1,500 option allowance and $750 loyalty cash on leases of this car right now.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi pacdecimal. The incentives that you mentioned are correct.

    Car_man
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  • ckrelingckreling Member Posts: 23
    Car_Man - thanks so much :)

    Charles
  • pacdecimalpacdecimal Member Posts: 39
    Thanks again Car_Man. Now, if I can get some dealers to return my e-mail then I can start negotiating.
  • arizonabmwarizonabmw Member Posts: 1
    Hi Car man - if credit score is medium/mid tier, how much would I see an increase in the money factor? I have leased 3 BMWs via BMWFS for the past 5 years but I just checked my credit score and it's fallen a bit.
  • bmw535xdrivebmw535xdrive Member Posts: 2
    Hi Car Man,

    My current 528xi lease is going to end in 10/31 with $600/month. I would like to lease a 2012 535xi with Techology pkg, cold wether, premium pkg, BMW apps, Sat radio -MRSP $62,148 (invoice price$57,500)

    Dealer offered $700 (pretax-$740 after tax)m for 36 months and 10,000, and will end my current lease, is this a good offer and $4000 plus $1000 tax.

    Or should I wait to end of my lease and get better deal on 2013 models with higher residual.

    Thanks in advance.
  • kmf0405kmf0405 Member Posts: 1
    What is the current residual and money factor for a 2012 BMW 535i @ 12,000 and 15,000 miles ?
  • danimal77danimal77 Member Posts: 17
    I was offered 2012 528xi with 10,000 miles (former service loaner with MSRP 56,900) for 44,900. Lease is 595 per month (36 month/12k) with 4,000 down. Can someone comment on this deal? I think with no money down the monthly payment would raise about 120 dollars, so around $715. I am a bit concerned because I am told a brand new one would lease at 699 per month including tax (6.75 in Ohio) with no money down. Can someone comment please.
  • bltzkrgbltzkrg Member Posts: 1
    Danimal77, Do you have the residual value? and the $4,000 was not just cap cost reduction right? It was total out of pocket?

    Based on current lease rates promo deals.
    You should be in the $500~ because of the huge discount from 56.9k to 44.9k (11k difference~)

    Your lease payments should be very low with the down payment and 12k miles a year...

    $699 with tax and fees is still high, depending on the packages/options you get... in NJ (7% tax) we are able to get a 528xi premium for mid $650~ with total out of pocket of $4,000
  • insidecarbuyinsidecarbuy Member Posts: 95
    I just helped my friend get this deal on a new 2012 528xi.

    MSRP - $56,575
    Invoice - $52,614
    Loyalty - $750
    Option Allowance $1,500
    BMW USA Drive Event $1,000
    Behind Invoice - $,1500

    Selling price - $47,864

    Money Factor .00145
    Residual for 12,000 miles 58%

    Out of pocket total - $2,937.11
    Bank Fee - $725
    Transfer plates - $100
    Doc Fee - $75
    NYS Inspection $10
    NYS Tire Fee - $12.50
    Taxes - (7.375%) $1,479.56
    First Month $535.05

    Monthly payment for 36 month term $535.05
  • ckrelingckreling Member Posts: 23
    Could you tell us which dealer or at least PM me the dealer as I am trying to convince Concord BMW (California) to do a similar deal.
  • addictionsfaddictionsf Member Posts: 8
    Hey, go to Concord and ask for Danny, say Seva with white 528iM-sport sent you. See what he can do for you. Good Luck!
  • audi42audi42 Member Posts: 5
    Hi Car Man,

    I'm was just offered the following deal in Norther VA. 535ix with Premium Package, Technology Package, Cold Weather Package, Sports Package, Sirius, Sports Automatic Trans, and BMW Apps with a sticker of $66,245 and a sell price of $57,807. The lease price they gave me for 36mo and 12,000 miles was $795 for Tier 1 credit. But the number don't add up to me. The sales man told me he was using .00175 instead of .00145 for the money factor and the residual value is 59%. The monthly lease payment I come up with is much cheaper than what they have.

    Could you tell me what the correct lease payment should be along with the money factor and residual value. Also all taxes are paid up front.

    Thanks in advance Car Man
  • eagajanyaneagajanyan Member Posts: 12
    I was wondering if someone could double check the math presented here, I have used edmunds lease calculator and it shows payment which is much higher than stated by insidecarbuy. Is there anyone who could verify these numbers, if so what online lease calculator do you use. thank you.
  • bmw535xdrivebmw535xdrive Member Posts: 2
    Hi Audi,

    I just leased a similar car w/sports package and pull ahead of current 535xi for 3 months ($600x3), MRSP was $62,000 with total $5000 down that includes everything tax, and destination charge, and $800 damages to the last car, my monthly lease is $700 including tax, i also had a $500 credit by downloading app called ultimatedrive and request a test drive thru the app. Also this was my fourth BMW lease,2012 535xi black. Good luck.
  • awinecoolerawinecooler Member Posts: 2
    I just got this same car from VOB (sticker also of 66245) for 730/mo with 5k down (that's with BMW Loyalty, USAA Insurance and 500 dollars from ultimatebmwapp.) You can sub the USAA for the USA Drive 1k discount. I probably could have gotten to 715 but honestly the guys were great there and I was in and out in an hour. Michael Zheng is the guy if you go.)
  • alex_msu1alex_msu1 Member Posts: 81
    Car_Man could you please post August rates if they are available. For both 2012 and 2013 models.
    Thanks
  • eagajanyaneagajanyan Member Posts: 12
    Would you please post sale price of the car and residual number, number of months is the lease and miles/yr. thanks in advance.
  • eagajanyaneagajanyan Member Posts: 12
    Was offered 680/monthly payment with 3K drive off(out the pocket) on 535xi w/ Premium, Technology and Cold for 36 months lease with 15Kmiles/year. I still think its too much profit for the dealer. Can someone please explain how this lease posted here by someone would be possible.

    MSRP - $56,575
    Invoice - $52,614
    Loyalty - $750
    Option Allowance $1,500
    BMW USA Drive Event $1,000
    Behind Invoice - $,1500

    Selling price - $47,864

    Money Factor .00145
    Residual for 12,000 miles 58%

    Out of pocket total - $2,937.11
    Bank Fee - $725
    Transfer plates - $100
    Doc Fee - $75
    NYS Inspection $10
    NYS Tire Fee - $12.50
    Taxes - (7.375%) $1,479.56
    First Month $535.05

    Monthly payment for 36 month term $535.05

    Numbers do not add up assuming cap cost of the car $47,864.
  • htmymihtmymi Member Posts: 1
    edited August 2012
    Hi Carman,

    If 2012 535i with premium Package and Tech Package;MSRP is around 57500;but the sale price is around 52500, plus i have my old car trade in with value of 7500;. The lease will be 36 month, with 12k miles/year. I believe the residual is 0.58 and the Money Factor should be 0.0018;with down payment of 2500, according to your calculation, would you please kindly give me the suggestion what the monthly payment will be? Thanks in advance.
  • waid10waid10 Member Posts: 21
    Hi. I need some advice/tips from Car Man or anyone else that has gone through this. My 2010 535i lease is set to expire at the end of August. I really like the car and am thinking of purchasing it. From what I understand, you can either purchase the car through BMW Financial Services or through your dealer. In my conversations with BMW FS, they tell me that the price is the residual value and that there is no negotiating. Is this true?

    Also, from what I understand, if you buy through the dealer, you can get better financing options and the vehicle is purchased as a CPO.

    Has anyone been through this process? Can you negotiate the purchase price with BMW FS, the dealer, both?

    Any tips or advice is much appreciated. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi audi42. BMW Financial Services' current buy rate lease money factor and residual value for a 36-month lease of a 2012 535xi with 12,000 miles per year are .00145 and 56%, respectively.

    Using these numbers, an MSRP of $66,245 and a selling price of $57,807, I estimate that this car would have a zero down, pre-tax monthly payment of around $713.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Certainly alex_msu1. What trim level(s) are you interested in?

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi htmymi. I see that you are considering using $7,500 in equity from your trade as a down payment on your lease. There's nothing wrong with trading in your current car when leasing a new one, it certainly is convenient. However, you really should have you cut you a check for any equity that you have in your trade rather than using the proceeds from it as a capitalized cost reduction for your new lease. Consumers who make large down payments on leased vehicles risk losing part or all of the money that they put down if their vehicle is totaled in an accident or stolen and never recovered.

    Also, the money factor that you were quoted is too high. BMW FS' current buy rate for consumers who have decent credit is only .00145. If your credit is in good shape make sure to insist that the dealer use this factor to calculate your payment.

    According to my calculations, if you were to lease a 2012 535i that has an MSRP of $57,500 and a selling price of $52,500 through BMW Financial Services right now fort 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment would be around $687.

    Keep in mind that BMW is kicking back dealers a $3,500 cash incentive on this car. With help from that cash I have a feeling that you may be able to negotiate a lower selling price.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi waid10. Theoretically what you were told is correct. However I have seen banks that will negotiate the lease-end purchase prices of vehicles. Whether BMW is one of them I can't say because I've never personally dealt with them before.

    I personally would be hesitant to purchase a BMW at lease-end, just because BMW FS is notorious for overestimating vehicles' residual values. Essentially BMW artificially inflates vehicles' residuals to hide lease support. This is great for people who lease because it provides them with lower than normal monthly payments. However, inflated residual values would not be good for people who want to buy their vehicles at lease-end.

    Make sure to compare your car's purchase price to what you would have to pay for one on the open market right now. Your saving grace may be the fact that used vehicle values are still fairly high right now.

    You should be able to have the dealer certify your vehicle so that you can take advantage of the extended warranty and special financing offers. That's probably the way to go.

    Car_man
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  • eztzoneeztzone Member Posts: 2
    Hi car_man, I have a 2009 335i due to return in the next few weeks, I am looking to get a 2012 535i with premium, bmw app. msrp at $55645, and invoice of $51245. BMW have 3500 for option allowance, and 750 loyalty rebate. when I negotiate the price should I add $500 to the invoice then deduct 4250 for total rebate which bring me to a selling price of $47495.

    I also got quote from dealer and they told me the 3500 option allowance does not apply to every 535i.

    I calculated my monthly payment with 2500 down, first month pay and 725 aquisition fee 56% residual, 0.00145mf 12000k/yr to be about $538 include ca tax, do you think this is doable?
  • eagajanyaneagajanyan Member Posts: 12
    Have you used edmunds lease calculator, when i input your numbers i get different numbers. what lease calculator do you use. google edmunds lease calculator. have you received any numbers from dealers. thank you.
  • eztzoneeztzone Member Posts: 2
    im using this http://www.leaseguide.com/calc.htm as my calculator, the quote i got was in the high 600
  • sshenoysshenoy Member Posts: 3
    Hi, I have always purchased my cars and new to leasing. For a change, I am planning to lease a 2012 BMW 528 XI with 12K/36 mos. I live in Aurora, IL and was wondering if someone could tell me what would be a good deal.

    MSRP: 56,245 (prem/cold weather pkg, navigation)

    I would like to know what would be a good invoice price, money factor and residual value for this car. And of course, the lease payment per month. Appreciate your help.
  • dv5990dv5990 Member Posts: 2
    I'd appreciate someone letting me know if I'm getting a good deal. I'm currently looking at a 2012 535XI (Space Gray, Nav, Premium, Sport) that MSRP's at $65,725. Right now the dealer is at $690 a month (including NY sales tax) for 36 months 12k/year with 3,500 out of pocket including all taxes and fees. I appreciate your help
  • sshenoysshenoy Member Posts: 3
    Hi, I want your expert opinion on this as I am new to leasing. I am trying to get a breakdown of the quote, but here is what the dealer sent. Appreciate your help.

    BMW 528Xi - Black Sapp. Metallic with Black Leather
    Packages: Prem, Cold Weather and Tech
    MSRP - $56,795
    Term - 36 months
    Mileage - 12,000 per year
    Tax - state tax included in the monthly payment
    Down payment - $2000.00 cap cost reduction
    Due at signing - first payment, new plates $99 (transfer $25), doc. fee $161.39, title $95, electr. registration $25
    Monthly payment - $659.00*

    Thanks.
  • gja2gja2 Member Posts: 2
    I am a current BMW FS customer; my present lease expires in December. I asked BMW dealer for a quote on a 2013 535 xDrive; with navigation and sirius; 36 months at 12K miles/year. The numbers I got back were $820/mo (including 9% sales tax) with $2680 due at signing. Is this a good deal or should I negotiate more? I am not sure if this takes into account the loyalty discounts and/or the current free options offering.

    Also, how competitive will local BMW dealers be with one another? And, finally, the dealer mentioned potentially ending my present lease early --assuming no financial penalties on this, are there any other downsides?

    thanks!
  • gja2gja2 Member Posts: 2
    looks like a good deal to me --which dealer are you working with? I had a Philly dealer offer me $800/per month (including state taxes) for a similar case with about $2700 total out of pocket; 36 months/36,000 miles
  • dramadani10dramadani10 Member Posts: 1
    im looking at a 535xi sport package tech package winter pack bmw app prem pack MRSP is 65700. I told the dealer 5k down for it and he said. 36mnths/36k miles for $645 a month. is that a good deal?
  • bstncarbyrbstncarbyr Member Posts: 6
    Can any one provide me with details of recent lease deals including discount off of list, MF and Residual numbers that have been used recently?
  • apt62apt62 Member Posts: 2
    I just lease mine car today. 2012 bmw 535i, m sport package, tech package, prem, pretty much fully loaded. 3500g down $750 per month. in and out within an hr. i hope i got a good deal.
  • sshenoysshenoy Member Posts: 3
    I went ahead and picked up mine yesterday.

    BMW 528i Xdrive with prem., cold weather and tech package
    Black Sapphire with Black Leather
    Demo car with 400 miles

    MSRP: $56795
    Selling Price: 49,595
    MF: 0.00145
    Residual Value: 32,000
    Live in Illinois; so taxes apply on full price

    Lease terms: 649/month, 0 down, 10K/36 mos
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    That's exactly how I would calculate my offer, eztzone.

    What you were told is only somewhat correct. Theoretically there could be a few 535i models out there that a dealer didn't make eligible for the $3,500 cash incentive, but I doubt that there are many. Any smart dealer would have made sure that any remaining 2012 535i Sedans that they have in inventory are eligible for this cash.

    I think that $500 over invoice minus incentives plus the use of the buy rate lease money factor is indeed achievable.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi sshenoy. Since you are new to leasing, you definitely should check out the following informative articles on the subject that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In short, the easiest way to get a good deal on a leased vehicle is to shop around for the lowest possible selling price and then have the dealer that you decide to go with calculate your vehicle's monthly payment using its buy rate lease money factor.

    If I was in the market for this car right now, I personally would shoot for a selling price of around $500 over invoice minus the $2,500 dealer cash that is available on it. Of course, if you are in an area that doesn't have much competition you may have to pay a little more than this.

    BMW Financial Services' buy rate lease money factor and residual value for a 36-month lease of a 2012 528xi Sedan with 12,000 miles per year are .00145 and 58%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi gja2. It would be easier to evaluate this deal if you were to provide us with this car's MSRP and selling price. Lt us know and we'll tell you what we think.

    If BMW is running any official early lease termination program (and if it is I am not aware of it) then there's no down side to ending your current lease early. If not and the dealer has to buy out your lease then you may end up paying more than you should to get your new BMW.

    Car_man
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  • gjoagjoa Member Posts: 3
    Using the options the dealer listed and Edmunds, the MSRP is about $55.8K. Dealer indicated that he was extending me a $2K discount so I am assuming that the sale price would be $53.8K.

    thanks!
  • ckrelingckreling Member Posts: 23
    Well

    Local dealer in SF Bay Area (the general sales manager) offered me his cost less incentives and buy rate on bank fee and money factor so I am pulling the trigger unless someone tells me I should look for something better.

    2012 528i black/black premium, tech, cold weather, bmw apps. 36 Mos 10K miles.

    Any reason to hold out for a better deal. Not many 2012s left in Bay Area and this is my preferred colors.

    Incentives are:

    2500 option allowance
    750 loyalty
    500 ultimate drive app

    I did not go to the drive event - will do so in the future.

    Am I missing any incentives, holdbacks, etc ???

    Charles
  • romo_007romo_007 Member Posts: 17
    edited August 2012
    Charles

    What are the following for this deal
    1) MSRP
    2) Selling Price
    3) Residual
    4) Money Factor
    5) Drive Off
    6) Monthly Payment without sales tax
  • ckrelingckreling Member Posts: 23
    edited August 2012
    What are the following for this deal
    Black/Black - prem, tech, cold wx, bmw apps

    1) MSRP $53,595.00

    2) Selling Price $46,160.00 (Inv less 2500 opt allow, 750 loyalty, and 500 BMW Ult Drive App)

    3) Residual 58% ( $31,085.10 )

    4) Money Factor .00145
    5) Drive Off 1932.00 (bank fee 725, registration 400 ish, doc fee 80, first payment)
    6) Monthly Payment without sales tax $530.75

    Hope that helps - good deal ???
  • batragautambatragautam Member Posts: 1
    edited August 2012
    Just scored the best 535i xDrive deal ever...
    MSRP: $61925 (Space Gray with black interior, Premium, Navigation, Cold weather, Sat Radio, BMW Apps)
    Internet Selling Price: $52990
    Additional Discount: $500
    Loyalty: $750
    Graduation Credit: $1000 (Wife is graduating)
    Final Sale Price: $50740
    Too bad I missed out on Team USA event
    Monthly Payment = $618.56 (including 10% PA Tax)
    Drive Off: $1815.96 (Acq fees including taxes=878.90, Doc + Plate=318.50, First payment=618.56) - 500 BMW App Discount = $1315.96
    MF is 0.00155 instead of 0.00145...they did not negotiate on it after the deep discounts.

    This deal is from BMW Cleveland...they still have a few more 2012 535i's available with deeply discounted internet price.
  • vp1993vp1993 Member Posts: 1
    Car_man
    I am looking to buy or lease 2012 528I or 535I, not sure which option is better. Would you happen to know of any current good lease or buy deals in New York City / New Jersey area (or within 200 miles radius)?
    Thank you in advance
  • tybalt33tybalt33 Member Posts: 11
    Build for ordered MANUAL 535i with MSport, Convenience and Tech package with heated seats, premium sound and rear sunshade:

    MSRP $63695
    Cap Cost $58836
    Acq fee $725

    Lease terms:
    36 months 10K miles a year with $5000 cash down
    BMW MF is .00145 and residual 60% of MSRP= $38217
    Total at signing is 6,506.18 (includes tax on down payment, 1st payment and security $750)

    I have plugged these numbers into 3 different spreadsheets and calculators. My calcs put payment about $610 per month. Dealer just came back with $681

    I realize Im getting a good deal on the Cap Cost, but I dont understand where he is getting the monthly payment at $70 per month higher. All spreadsheets are from reputable sites.

    Any thoughts? They must be either marking up the MF or adding "training" or "document" fees.

    Thanks in advance
    TS
  • sjeedsjeed Member Posts: 120
    tybalt33: Is the Dealer providing you with the MF or are you just using the one that is provided through this forum? Same for the Acquisition Fee. Unless confirmed, Dealers will and can mark these numbers up to make an additional profit, especially when they are using an aggressive Cap Cost. Also good to confirm the exact components of the Drive Off as this can include Fees, but this wouldn't impact the monthly payment. Hope that helps.
  • tybalt33tybalt33 Member Posts: 11
    Thanks sjeed, it looks like they are marking up the MF. Frustrating as none of the dealers have been forthcoming when I tell them Im using the current posted rate of .00145

    I am now looking into a lease wholesaler who works with BMW FS and is using the quoted MF. I no longer wish to do business with the local group who owns the 3 local dealers, Crown Automotive. (BMW Richmond, BMW Midlothian, and BMW Charlottesville)
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