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BMW 5-Series Lease Questions



  • dhanleydhanley Posts: 1,531
    We'd need the MSRP to crunch all the numbers.
  • Hello, a few things have changed since I posted this email. The MSRP is 50,865.00 and the gross capital is 49675.00. My residual is 62% with 12,000 miles a year for 36 months. My money factor is 0.00155 and I have a 1.5% usage tax instead of sales tax. My Payment is $571.21. Zero security deposit. $350.00 disposition fee at the end of the lease. Fee is waived if I lease another vehicle. Financial service fee is $625.00. Please advise
  • skobolaskobola Miami, FLPosts: 207
    Well, it is difficult to predict the future! I would suggest that if you are happy with the rates now, then wait until the end of this month and order the car. This will lock the rate. If the rate will be better in January, than they should let you lease under those terms then, and if they will not be better than now, then you should be able to lease under the current terms, which appear to be to your liking. I have leased my last car, 2006 BMW 325i at the end of January, and I got the best rate that was since the E90 325i has been in production, namely 2 year lease with 77% residual and 0.0025 rate.
  • dhanleydhanley Posts: 1,531
    Sounds pretty good--is your car a 525? Have you considered putting down multiple security deposits?
  • Yes, my car is a 525i. Please excuse me but what is multiple security deposits? I only know what I do from reading messages in your forum.
    Thank you
  • dhanleydhanley Posts: 1,531
    Ok. The money factor for a 525 is .00100. They are marking up your money factor to the max for extra profit.

    You can make up to six extra security deposits, each of which lowers your money factor by .00007. So if you get a non-marked up money factor, and make six more deposits, your money factor would be .00058 -- almost no interest. By my calculation, that would get you down to 559/mo.
  • skobolaskobola Miami, FLPosts: 207
    As much as I know, one can make up to seven security deposits, each of which lowers the MF by 0.00007; which makes the max. reduction to be at 0.00049.
  • dhanleydhanley Posts: 1,531
    True. But most of the published lease rates assume one security deposit has been made.
  • tayl0rdtayl0rd Posts: 1,926
    You guys are so lucky. My dealer is jacking the money factor way up on a 550i lease AND they won't accept multiple security deposits. Must be nice to have multiple BMW dealers nearby that will actually compete for your business. :sad:
  • dhanleydhanley Posts: 1,531
    Can't you buy a car from another more distant dealer? If you save thousands over the course of the lease ( and it sounds as if you would ) even the flight and drive would be a a big savings. Even better if you can combine it with a vacation.
  • dhanley and car guy, on an '07 530 I'm being told the money factor here in CA is .00140. This is with a $800 security deposit.

    Also, with a price/cap cost of 53,640 and 2626.85 drive off, the payment is 743.66 for a 36 mo./15yr lease.

    This seems higher than the numbers I'm seeing on this site.
  • dhanleydhanley Posts: 1,531
    The lease program does not vary state to state. They are allowed to mark up the money facor by .0004 for dealer profit, which is what they are doing.

    I really don't like when they fib.

    That being said, if your deal is very very good otherwise, it's ok. They have to make a few bucks somewhere. But i suspect the deal is _not_ terribly good...
  • I owned a Lexus and an Infiniti before my current 06 530i.
    Payments are obviously important but consider this. I got my car in Santa Barbara because at the time there was no car with the options that I wanted in Southern Cal. I live in OC and I had a problem just a month after getting my car. I had to spend hours sending e-mail, calling different dealers and complaining to BMW corporate to get, not a loaner, just a rental car. The problem is that BMW dealers will not give you a rental nor a loaner if you have not purchased from that dealership. If BMWs' were reliable I would not worry too much but guess what, these are my NEW problems:

    1. Received a recall letter for suspension
    2. Breaks squeaking at just 8K miles
    3. Transmission issue.

    I called 6 different dealers within 50 miles from my house and the first thing they ask is "did you get the car from us?" But they will gladly give me a ride to my home or office. Well I have to drive around, my job is not to stay in the office from 9-5 and plus when I am going to get my car back, there are no assurances.
    Being a luxury car maker I thought they would have similar services like Lexus or Infiniti where no matter which dealer you go, they will offer you either a loaner, or a rental. WRONG! BMW wants me to pay for a rental car while they fix my BMW that is under warranty.
    I got a BMW already expecting the car to go wrong sometime but not this many things in 6 months (isolated incident?)and if I would have known that I had to pay for my rental car every time my car breaks down..NO WAY I would have got a BMW!
  • So what money factor do you think I should get on a 36 month lease/15K a year and what is a reasonable cap cost for a car with an MSRP of 56,950?
  • lklein1lklein1 Posts: 24
    Hello, I read thru the forums and went today to negotiate on a 530i lease. 36 months/10,000 miles. The msrp is $52,020, sales guy did not move off of this. Used a money factor of .0014 and 63% residual. I told him about the .0010 and he said he wasn't seeing that # and it didn't matter if I ordered or bought from the lot that # was the same. He gave me a monthly of $740 including tax (6%) w/ 1st and security up front. I am new to leasing and don't seem to be getting a good deal. Can someone let me know where they think i should go from here. Also, the trade in on my Range Rover was very, very low, which is to be expected, but I didn't expect to get screwed on both ends.

    Thanks in advance
  • dhanleydhanley Posts: 1,531
    He's lying about the money factor, and there's no way you should be paying sticker.

    It's just like anything else. You have to let them know you aren't married to the car and want a good deal. You can call other BMW dealers in the area and let them know you are price shopping. You can tell your salesman that you are considering an acura/mercedes/lexis/audi/infiniti.

    I've always just gone to the dealer and said, "Ok, i'll pay this (fair price) or i'll go to your competitor." You have to be willing to walk out. I've always gotten my price in the end.

    The person with the checkbook has all the power.

    Plus, the end of the month draws close...

  • lklein1lklein1 Posts: 24
    Thanks for your reply. Unfortuneatly they are the only BMW dealership in my whole state, but I did email dealers in Chicagoland but haven't heard back yet. They know there is no competition. I don't like being lied to.
  • dhanleydhanley Posts: 1,531
    E-mail me if you want some feedback for the chicago area dealers. That's where i live. :)

    I *hate* being lied to, i'd probably pay more to someone else who was honest...

    Were are you with only one dealer?
  • lklein1lklein1 Posts: 24
    I am Indianapolis and I just realized there are 2 other dealers in the state (one in Lafayette and one in Fort Wayne -- they didn't pop up on my first search since I had the miles away to short), but I probably will try to buy in Chicago. I've received one offer so far from Chicago. First pass was 4% off MSRP and .0012 MF so we are getting closer, but certainly not a deal with that. Also they gave me an acqusition fee of $825, so that is a no go.
  • kyfdxkyfdx Posts: 70,262
    Cincinnati and Louisville are closer than Chicago... Dayton, as well...

    A lot of choices..


    Prices Paid, Lease Questions, SUVs

  • tayl0rdtayl0rd Posts: 1,926
    Leasing out of state is probably my only course of action. The only problem is, as someone above said, if I don't buy the car from them, I get no loaners. If they won't even give me a loaner for not buying from them, I can only imagine the horrible service I will receive from them. I suspect they'd try to rabbit-ear my pockets every time I went in. Good thing about that free maintenance, huh? Maybe they'd make me pay for the snacks in the waiting room. :sick:
  • lklein1lklein1 Posts: 24
    Thanks for all the feedback everyone. I have verbally accepted an offer from my local dealer after dealing w/ other dealers in Chicago and Kentucky. Most importantly the local dealer matched the verbal trade I was given in Kentucky for my Range Rover. I'll post transaction details for others once I take delivery and know I'm not being jacked around.
  • dhanleydhanley Posts: 1,531
    I imagine that if you show them the lease offer from another distant dealer, they will be more prone to play ball. And, as i said, you can always pull the "what shouldn't i just get a lexus?" line as well."

    Just use some of the good quotes that have already been posted on this list...

    Whenever i've been car shopping being noncomittal and clearly shopping around has always worked for me.

    Even talking to another salesman or the sales manager could help.
  • tayl0rdtayl0rd Posts: 1,926
    How reliable are those money factor numbers you got from Bimmerfest? Did it come from BMW? Is it actually for the month of Oct. 2006? I'm just flabbergasted that my dealer is marking up the MF so much. I mean, over the course of the lease, it would be upwards of $3,000! :mad:
  • dhanleydhanley Posts: 1,531
    They are reliable and for october--many people on the forums have gotten great leases by just using the numbers.
  • I went back to another dealer and got the .00100 rate, with a monthly lease payment of 691 on a 15k/year, 36 month lease with 2625 drive off.

    dhanley was right. The dealer's buy rate is the above and just a little pressure was all it took, so my payment went down over 50 dollars a month.
  • wth3wth3 Posts: 2
    I just received two quotes on a 530i today from a request from the internet. The dealers are both located in suburbs of Chicago. I have not been into the showroom to look at the cars yet I just researched them on the internet. So if anyone knows if these quotes are a good deal please let me know. I am waiting for two more quotes tomorrow and hope to complete the deal over the weekend.

    Westmont, IL

    530i with premium & cold weather package.

    $50,020 vehicle price
    $625 acq. fee
    $57.33 doc fee
    $3,755.80 7.75% full tax is paid in Illinois
    = $54,458 net adjusted cap cost
    $31,212 is the residual 60%
    .0014 is the money factor
    36 months
    15,000 miles
    $765.66 is the monthly payment

    Down Payment includes
    80.00 Plates
    25.00 Electronic plate transfer
    800.00 security deposit
    765.66 1st payment
    = $1,670.66 down payment

    One thing I am not sure of is the taxes are rolled in up top. If you calculate them last you save around $5.00 per month. I do not know what is standard.

    Orland Park

    530i with premium & cold weather package.

    $50,020 vehicle price
    $825 acq. fee
    $57.33 doc fee
    = $50,902 net adjusted cap cost
    $31,212 is the residual 60%
    .0014 is the money factor
    36 months
    15,000 miles
    $771.50 is the monthly payment

    Down Payment includes
    80.00 Plates
    350.00 Disposition fee
    800.00 security deposit
    $771.50 1st payment
    = $2,001.50 down payment

    Hope this helps, if anyone has any comments they would help.
  • dhanleydhanley Posts: 1,531
    Both are bad deals.

    1) Paying sticker

    2) They marked up the money factor.

    3) Disposition fee is at the end of the lease, and it is often waived, if you buy/lease another BMW. Do _not_ pay it up front.


    1) Make them lower the factor to .0010

    2) Haggle to between invoice & sticker

    3) Make six extra secutity deposits. This will lower your MF to .00058, and you get them back at the end of the lase. Good investment.

    Based on that, i get $651/mo if you roll illinois tax into the cap cost.

    You might want to buy down the cap cost by a few dollars to get your payment under 650 so your security deposits will be $650 instead of $700.

    Really, you guys are making me jealous, i'm wondering if i should stand by my decision to get a 335i coupe. :)
  • Car Man:

    Does BMW have a 39 month 36,000 mile option (with money factor and residual) or a 48 month 48,000 mile option (with money factor and residual) that I can evaluate? Monthly payments too high on 36 month leases.

    Also, any update on the November numbers (money factors and residuals) for all 5 series cars for 36 month 12,000 miles, and longer lease term leases! Thanks!. Getting numbers from Dealers is like pulling teeth - on an elephant!


    Armitage Mike
  • That is a very good question, shap1. Normally I do not advocate terminating existing leases early to get a new vehicle. However, BMW has a very attractive lease program on the 2006 X5 right now. It is difficult to say how long BMW will continue to offer lease support on this truck. It's current lease program is scheduled to run through October 31st. I would not be surprised if BMW continued to offer an attractive lease program on the '06 X6 in November and December. Your best option would be to lease a leftover 2006 X5 at an attractive rate in December, but there is no guarantee that this lease program will be available then. I can guarantee that the 2007 X5 will be a lot more expensive to lease when it finally arrives at dealers than the 2006 X5 is now.

    Given the attractive money factors that BMW is providing on the 2006 X5 right now, there's nothing wrong with rolling your current truck's existing payments into the cap cost of your new lease, other than the fact that you are wasting the last two months of your current lease.

    Prices Paid Forum
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