BMW 5-Series Lease Questions

milken · October 2005

Is the excess mileage charge negotiable before the lease is written? I.e., if the stated overage is $0.25 per mile, can you negotiate down? Does the dealership set the excess mileage or the financial institution?

dar63 · October 2005

Thanks for your respone-how does the deal on the 525ix sound???

drtravel · October 2005

For the 525i

MSRP is 44,470
Cap Cost is 41,950 (MSRP - 2500 down - 645 discount + 625 Acq Fee)
Money Factor is 0.0016
Residual is 63% (36 mo/30K)
Payment is $499

For the 530i

MSRP is 51,245
Cap Cost is 49,545 (MSRP - 2500 down + 175 premium + 625 Acq Fee)
Money Factor is 0.0014
Residual is 63% (36 mo/30K)
Payment is $594

dbcafy · October 2005

Hi,

Has anyone leased a 2002 / 2003 BMW 540 with the Sports Package. What
was the residual value of the car when you return the car?

Thanks,
Dave

cpanag · October 2005

All:
Bit long winded but first post:

What's the general feeling on lease transfers? Clearly there are a couple major sites that specialize in facilitating this service. I am curious as to Car Man's and everyone else's opinion on this. Specifically, there is a 2005 545i offered with 4200 current miles and just under 32k left on the lease, which expires in early April 2008. Original monthly payment was 909/month for lessee and he is offering 859 a month now. Lease transfer fee is $450.

So again, what does everyone think of the concept in general? Then, what about this specific car? Worth pursuing or better off going to the dealer directly? From some of the reading I've done here almost seems like a ripoff. Any other info you need?

More specs on car:
Like New Condition 545i V8 with Sport Package. Silver Gray Metallic (car pictured). Auto Trans, Premium Logic7 Sound with Sirius Satellite Radio, Active Stearing, Active Suspension, Cold Weather Package, Split Folding Rear Seats.

bimmerdude · October 2005

Hi folks,
I am new to this forum, but I love what I read here. So many knowledgable and nice people around here.
I am in the market for a new 06' 530i with sound/nav in Nor-California.
Here are my questions:
1. Is $1000 over invioce a good deal or I can do better? What is the invoice for above config?
2. 0 down or not?
3. What is the best money factor?
4. I am the 1st time lease customer, do you need to call/cut a deal with BMWFS or bank before you go to the BMW dealer? or it all can be done in the dealer?
5. What are the other normal amount for other fees?
6. Please share any other advice you want me to know.

Thanks in advance,
Harry

CarMan@Edmunds · October 2005

Greetings drtravel. According to the latest information that I have seen, if you were to lease a 2006 BMW 530i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 60%, respectively. This car's 12,000 miles per year residual value is 2% higher.

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CarMan@Edmunds · October 2005

Hi dar63. Right off the bat I can tell you that this is not the "deal of a liftetime" because it appears as though the dealer that you are working with is marking-up BMW Financial Services' buy rate lease money factor for this car to add additional back-end profit to your deal. BMW FS' current buy rate money factor for leases of the 2006 525ix Sedan is .00160 for up to 42 months. I would be happy to give you my opinion on this deal if you tell me what this car's full MSRP (with the destination charge added in) is. This is an important number because it enables me to see how much of a discount you are being given and will allow me to calculate a lease payment on the car that you are interested in using BMW Financial Services' actual lease program.

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CarMan@Edmunds · October 2005

Hello rockymtn_e36. Vehicles' lease money factors are only negotiable in that it is important for you as a consumer to make sure that the dealer is not marking-up the buy rate money factor for your vehicle. However, dealers are not allowed to give lease vehicles with lower money factors than the buy rates that banks dictate. The money factor that you were quoted to lease the 2006 530xi that you are interested in is right in line with BMW Financial Services' buy rate money factor for it with a waived security deposit. As a result, your car's factor won't get any lower than that. One aspect of your deal that you should try to negotiate is the acquisition fee that you were quoted. BMW FS' current base lease acquisition fee is only $625. I just calculated a lease payment on the car that you are interested in using the prices that you mentioned in your post, an MSRP of $54,940 and a selling price of $53,300 and came up with a 36 month, 12,000 miles per year, zero down, pre-tax monthly payment of around $666. If you are able to negotiate a lower selling price than this, your car's monthly payment would drop.

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CarMan@Edmunds · October 2005

Welcome Harry. I'm glad that you enjoy this discussion so much. $1,000 over invoice sounds like a reasonable selling price for a 2006 BMW 530i to me, but for additional feedback on the price that you were quoted you should stop by the following discussion: "BMW 5-Series: Prices Paid & Buying Experience".

As far as making a down payment when leasing goes, I always advise consumers against making any sort of capitalized cost reduction when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your 530i would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

BMW Financial Services' current buy rate lease money factor for leases of the 2006 530i up to 42 months in length is .00140 with the payment of a security deposit. BMW FS does not deal directly with the general public, so you will have to go through a BMW dealer to lease your car. At lease signing, consumers who lease BMWs normally have to pay their vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $50 increment, BMW FS' acquisition fee of $625, and any required state taxes or fees.

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bimmerdude · October 2005

Thanks very much, Car man!
One more question: What is the best time to buy from now? Around Christmas? End of October or November, if I can't wait until New Year

Is that true that you usually got a better deal for the car on their lot rather than ordering? Thanks!

tcoz · October 2005

As far as lease transfers, I just transferred my X3 lease using swapalease.com. Entire process went smoothly and took about 4 weeks with BMWFS. The lease transfer fee is usually paid by the person assuming the lease as BMWFS requires a check to accompany the lease transfer documents at the beginning of the process, BUT you can negotiate this with the person "selling" the lease and possibly get them to split it with you or even pay it all.

As for this specific car, you'll have to do all the math and compare it with deals available on an equivalent new car at this time. Just be sure the remaining miles fits with your needs.

cpanag · October 2005

euxapisto T Coz. That's helpful. I'm checking out the same site and process. Hope you don't mind if I have a few more questions.

bimmerdude · October 2005

Hi Car Man (or any other gurus), The dealer does not have the car I am looking for. My question is that if I order a car now and have it delivered in 8 weeks, does this car count as a sale for this month or as a sale at the time of delivery? I understand the best time to buy a car is around Xmas, so should I order the car now or wait until Xmas to order? What is the best time to order a new car? Please help, Thanks very much!

dasbmw · October 2005

I am in the market for a new BMW. I am interested in the 525i. I have some flexibility on the purchase date. From now until the end of December is fine. Is there a pattern to the residuals, price increases and money factors? Right now I can lease a 525i with a money factor of .0016. What is it likely to be in December or November? The money factor plays a huge role in the lease price. If I can get a pre price increase car now for the $1000 over invoice plus the .0016 money factor should I do that or wait until December, take the $800 hit on the price increase (that already happened) and hope for a better selection and lower money factor?

Thanks,

David

rockymtn_e36 · October 2005

Thanks so much Car_man. I did actually go back into the dealership and negotiate the price down a bit, got the dealer to drop the acq. fee to $625 and they also dropped the lease MF to .0014. ( I took notes with me and actually wrote what I wanted to get from them on their original quote...my sales guy took that sheet "into the manager's office", and came back with a lease price that was right on the money with what you have said).

Thanks for all the advice! Looks like I'll be driving a new 530xi come December 14th...

grnfish · October 2005

I am ready to lease a 06 530i with premium, cold weather package, satellite and Septronic.
MSRP $51,915
quoted price $48,867
I am looking at a 36 month lease with 20,000 miles. What is the Money Factor and the Residual Value through BMW Finance for this lease. I currently have an 325xi that the lease ends the first week in November so they have my security deposit from my current lease. Is there anything else that I need to consider or am forgetting? My tax rate is 6%. What should I expect my monthly payment to be?
Thank you. I have thoroughly enjoyed this forum.

bdr127 · October 2005

That's a great discount on that car... almost 6% off the price.

papazhenyaaa · October 2005

hi guys, quick question,

i went to this place called AutoStarLeasing, they don't carry any cars, they are just a leasing place. They lease/sell any car and they deliver quickly. They told me
$589/month for 36 months 12k miles, 2006 BMW 530xi + Premium + Cold Weather, no money down, is this possible? thanks

dar63 · October 2005

Thanks for your help--

The MSRP is $48,720 (includes a $700 destination charge).

The dealer that I am speaking with has a number of 525xi's on his lot--but I am really interested in the 530xi--but he persistently telling me "why pay more" when the car is not really much different. Is the car worth the additional cash??

What is the MF and how much of discount is being given on the 530xi's??

bdr127 · October 2005

The differences between the 525xi and 530xi:

1) 530xi has more powerful engine (255hp vs 215hp), although they are actually the same displacement (3.0L)

2) Standard features on the 530xi that are options (or included in a package) on the 525xi: Lumbar support and xenon headlights

3) Available 18" wheels on 530xi; 17" are largest wheels available for 525xi

4) 530xi base price is $4300 more than 525xi

So you need to evaluate what is most important to you.... When you break it all down, probably the biggest thing between the two is the engine... Drive both and compare -- is the 530xi worth the price to you?

papazhenyaaa · October 2005

Hi,

anyone know if i should lease a car this month or wait for next month, maybe it will be cheaper closer to years end? 530xi by the way.

Lemmie Know
Thanks

qingqingdao · October 2005

HI Car_man:
I am planning to lease a 2005 BMW 530i for 4 years with 12K/yr. What is the money factor the BMW's finance service uses? What is the residual value after 4 years?

Thank you very much.

hpowders · October 2005

Residual is only 43%.
Base money factor is 0.0028(6.72% interest).

bdr127 · October 2005

I am planning to lease a 2005 BMW 530i for 4 years with 12K/yr. What is the money factor the BMW's finance service uses? What is the residual value after 4 years?

Any specific reason you are looking for a 4 year lease? If it's to reduce your payments, then you'll be surprised to know that almost all of BMW's vehicles have their cheapest lease payments at 36 months, including the 5-series.

bimmerdude · October 2005

Hi,
I just got a quote for a new 06 530i, Steptronic, Premium Package, Premium Sound and Navigation. Out of the door for $54640.00, MF 0.0018. (7.5%, tax?, North Califonia)
1. Is this a good deal? What is the monthly payment 36/12, 0 down?
2. Should I ask them to break down the numbers?
3. I want to lease, was it done at the dealer or I should contact BMWFS myslef?

Thanks very much!

Bimmerdude

bimmerdude · October 2005

Thanks, kyfdx,
MSRP with the options is $54,170.
Please tell me more about how to get the lease program going :confuse:

Thanks again!

kyfdx · October 2005

Do you have a selling price? Before they add the tax, title and license fees? The tax is figured differently on a lease, than a purchase..

You will definitely have to lease through the dealer... You can't go to BMWFS directly...

regards,
kyfdx
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bimmerdude · October 2005

Thanks, kyfdx.
I was told for that price ($54640) is out of the door price and MF is 0.0018, he also told me the selling price is $50, 830. Should I ask him to break down the price before going there and see some hidden fees? What do you suggest me to do, please? Dose the deal still sounds good :confuse:

Thanks

kyfdx · October 2005

With an MSRP of $54,640 and a selling price of $50,830, your pre-tax payment for 3yr/36K should be around $590/mo...

A few things..

1) The base money factor is .0014 with a security deposit... If they use .0018, then they are marking it up the maximum allowed for extra profit..

2) You will also have to pay an acquisition fee of $625 (they will most likely try to mark this up as well).

If you add the acquisition fee into the cap cost (selling price + acquisition fee), then the payment would be $608/mo.+ tax.... or about $654/mo. with tax included.. At signing, your upfront payment should include 1st payment, security deposit, and title/licensing fees.. The total upfront should be somewhere in the $1700-$1800 area...

Your selling price looks very good... If you can get it translated into the lease deal I've described, then you've done very well..

regards,
kyfdx
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papazhenyaaa · October 2005

kydfx,

i am being offered $591 a month for 36 months 10k miles a year 530xi MSRP 52,520 their selling price 49,500 (not exact)....like 4k discount. so it's gonna be $626 with tax. I am just wondering, is it going to be cheaper in novemeber or december should i wait? Any ideas?

Thanks Alot

CarMan@Edmunds · October 2005

You're welcome bimmerdude. What you heard is true. Dealers usually prefer to sell a vehicle that they already have in inventory and are paying floorplan interest on rather than ordering a vehicle. BMW's lease program on this car is already fairly attractive, so you don't have much reason to wait to lease one. The best time to do so is usually the end of the month when dealers are trying to squeeze a few more sales in. Try negotiating an attractive deal for the car that you want at the very end of this month or the end of November.

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CarMan@Edmunds · October 2005

Thanks for sharing your experience with transferring a lease with everyone, tcoz. I have never personally transferred one, so it is interesting to see that the process is so easy with a BMW Financial Services lease.

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CarMan@Edmunds · October 2005

Hey bimmerdude. I don't believe that an ordered vehicle counts as a sale for a dealer until a consumer physically takes delivery of it, but I am not positive that this is the case. I don't think that it matters much when you plan on ordering your car. Are there a number of BMW dealers in your area? I ask because you may want to shop around a little bit to see if any of them have the vehicle that you want, or at least a fairly similar one, in inventory. Buying one off of the lot will probably help you to get a little better deal than ordering will, assuming that the dealer that you are working with doesn't know that they have the only vehicle as you want it equipped that exists in your area.

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CarMan@Edmunds · October 2005

Greetings David. Now is actually a pretty good time to lease the car that you are interested in. BMW's lease program on the 2006 525i is much more attractive today than it was a couple of months ago. It is difficult to say whether BMW will lower its money factors for this car when its current lease program expires at the end of the month, but if I had to make an educated guess I would say that its November lease program for this model will be fairly similar to its current program. As far as your specific timing goes, consumers seem to be able to get better deals on vehicles during the last couple of days of the money as dealers try to squeeze a few last sales in under the gun. If I was in your situation, I would try to lease this car at the end of October unless I was in a lease that still had a payment or two left in which case there is not that much of a hurry.

Car_man
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CarMan@Edmunds · October 2005

No problem rockymtn_e36. Good job in your negotiations!

Car_man
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CarMan@Edmunds · October 2005

I am glad to hear that you enjoy this discussion so much, grnfish. If you were to lease a 2006 BMW 530i through BMW Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 60%, respectively. 15,000 miles per year is the highest mileage allowance that BMW FS publishes residual value percentages for. If you need to drive more than this, you will need to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty. I believe that BMW FS drops its charge per mile to $0.15 for miles purchased at the beginning of a lease. Using the prices that you mentioned in your post, I estimate that this car should have a 36 month, 15,000 miles per year, zero down, pre-tax monthly payment of around $605.

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grnfish · October 2005

Thanks Car man
If I go with 18,000 miles per year for 3 years and buy that up front at $0.15 for miles, do I add that cost to the sell price to calculate the lease payment?

ssi · October 2005

Sorry about the multiple posts. Here is a quote I received from a dealer on a 525i with premium package, Satellite Radio, Xenon, auto transmission:

MSRP $47,865
Selling $45995

..00185 money factor
4.4% interest (very good!)
36 Months/ 12,000 miles
Monthly payment $654
Money down at conception $1700.00
or
Monthly payment $666.00
Money down at conception $1000.00

Seems like a should get more of a discount of price and a lower money factor. Any thoughts? Thanks

hpowders · October 2005

More of a discount? I'll say!! Welcome to rip-off city!
I am paying $673 per month with no capitalized cost reduction (no money down) on a 3 year, 36,000 mile 2005 545i lease-a $60,000 vehicle!
Something is seriously out of whack here.
Walk away!
Also, unless this car has a mommy and a daddy, I do believe you mean inception rather than conception.

ssi · October 2005

Thanks for reply. Dealer actually quoted amount due at "conception" which I found humerous. Anyway, I am familiar enough with lease calculations to figure out a fair deal. Really need to know best money factor on 525 (.00155??) and the amount of discount I should expect on a $47,900 MSRP. Thanks.

kyfdx · October 2005

The base money factor for the '06 525i for 36 months is .0016...

regards,
kyfdx
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bimmerdude · October 2005

Thanks very much, kyfdx!
I also got another dealer quote me, however, they are asking for fees like Maaco fees, BMW training fees, color charges. Are these made up fees? If not, please tell me what is the reasonable amount for these fees?

Thanks again!

kyfdx · October 2005

If you are negotiating from "invoice up" then some of those charges are legitimate.. they are on the dealer's invoice..

However, if they are just quoting you a selling price, then trying to add these charges on... that is just hooey.. those are their costs, not yours...

Color charges? Unless it is the $475 charge that is on the new car sticker for metallic paint, I'm not sure what that could be...

I'd rather stick with a dealer that is more upfront about pricing..

regards,
kyfdx
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omegagen · October 2005

Carman,

I notice you've posted more recently in this forum as opposed to the Z4 lease forums. Could you briefly look at my lease question under Z4 lease?

Thanks for your help!!!

richardk2 · October 2005

Is the money factor on the 525xi the same as the 525i? The local dealer is quoting me .0020 on the AWD model, while I'm reading all of these posts about .0014-.0016 factors. The dealer says that BMW is trying to unload the RWD models and that the same rate is not available for AWD.

Any thoughts?

kyfdx · October 2005

The money factor is the same for both the 525i and 525xi this month.. (assuming a 36 month lease).. .0016

BMWFS allows dealers to mark up the money factor for extra profit... The maximum markup is .0004... .0016 + .0004 = .0020.....

Hmmmm......

regards,
kyfdx
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doug_999 · October 2005

Carman,
Can you tell me what the current money factor and residual is on the 550? I'm looking at a 36Month/12K per year lease (but I am curious about the residuals for 10K and 15K as well).

Also, do you think the money factor will go down at all in December?

Thanks in advance!

hpowders · October 2005

If the dealer used the phrase "amount due at conception" with me, I know what I would do:
RUN!!!

CarMan@Edmunds · October 2005

No problem dar63. In an earlier post you stated that this car's selling price is $48,720. Now you are saying that its full MSRP is $48,720 as well. I am not personally all that familiar with what the market is like for this car right now, but I highly doubt that it dictates that you would have to pay full MSRP for one. Take a look in the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience".

BMW Financial Services' current buy rate lease money factor and residual value for a 36 month, 12,000 miles per year lease of a 2006 530xi are .00140 and 62%, respectively. For me personally, the minimal differences between the 525 and 530 would not be enough to justify the higher cost of the 530.

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