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BMW X3 Lease Questions

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  • justwntd2knowjustwntd2know Member Posts: 3
    Thank you. Where can I find a benchmark for the money factor?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, afinner. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 X3 with 12,000 miles per year are .00240 and 64%, respectively. The money factor for an otherwise identical 36 month lease with 10,000 miles per year is the same, but its residual value is 65%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi justwntd2know. The following Edmunds.com article shows how monthly payments for leased vehicles are calculated: Calculate Your Own Lease Payment.

    The two most important numbers to focus on when negotiating a lease are your vehicle's selling price and its money factor. These are the two main profit centers for dealers. Shop around and negotiate the lowest possible selling price on the X3 that you want. I would not be surprised if you were able to negotiate a price that's fairly close to dealer invoice in the ultra-competitive Southern California market.

    Once you have a price that you are comfortable with, have the dealer calculate your truck's monthly payment using BMW FS' buy rate lease money factor of .00240 (with the payment of a security deposit at lease signing).

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey justwntd2know. BMW FS' buy rate lease money factor for the '08 X3 is currently .00240 for first time customers who pay a security deposit at lease signing. BMW will waive its security deposit requirement in exchange for a .00015 money factor increase.

    Car_man
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  • lfm3lfm3 Member Posts: 3
    I'm looking for the BMWFS MF and residual on a 24 month 10,000 mile/yr X3 lease. Has the MF been reduced from .00250 in May to .00240 in June on the 24 month term as well?
    Has the Owner Loyalty Program MF reduction of .00090 in May also changed for June?
    Have they added an option credit or other dealer cash to the X3 for June?
    I'm in San Francisco - any regional credits/incentives etc?
    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi lfm3. BMW Financial Services' June buy rate lease money factor and residual value for a 24 month lease of a 2008 BMW X3 with 10,000 miles per year are .00240 and 75%, respectively. I believe that the owner loyalty money factor reduction is still .00090 on this model. BMW is still not providing any option credits on the X3.

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  • suznsaxsuznsax Member Posts: 13
    Hi Car_man
    Do you happen to know what BMW FS July money factors and residual value for a 36 month lease of a 2008 BMW X3 with 10,000 is? Thanks!
  • userlauserla Member Posts: 10
    suznsax -

    Leasecompare.com just posted them recently:

    http://www.leasecompare.com/auto_leasing_forum/viewtopic.php?f=18&t=3212
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the information that you're looking for, suznsax. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 BMW X3 with 10,000 miles per year are .00200 and 62%, respectively.

    Car_man
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  • mlassitmlassit Member Posts: 5
    I'm trying to make end-of-lease (3 yr/12K mi) decision on my BMW X-3. X-3 I'm returning in excellent condition and only 33k mi so 3k below. Offer from local BMW dealer is below. Is this good or bad or somewhere in between?

    MSRP$ 43,000
    Floor mats $145
    Discount -$1850
    Sales price $41,295
    Trade allowance $19500
    Difference $21795
    Tax $1292
    Tag/title $59.50
    Processing fee $399
    Total $235454.73
    Trade payoff $19480
    Balance Forward $43025.73

    Cash down $2683
    36 mos payment $532
  • kyfdxkyfdx Moderator Posts: 235,188
    If you are returning your leased BMW, why is there a trade involved, at all?

    Is it a lease, or a balloon payment? Are you in Illinois or Texas?

    regards,
    kyfdx

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  • mlassitmlassit Member Posts: 5
    Virginia

    Lease -- No clue why the trade. It was their creative way of getting payments close to current lease payment.
  • kyfdxkyfdx Moderator Posts: 235,188
    Yeah.. I'm not sure how it helps, if the trade allowance is shown as the same as the payoff... I thought maybe it was a tax issue... but, isn't tax in VA, 3% on the selling price? So, it doesn't look like that saved you anything there, either..

    That payment looks pretty close to others that I've seen.. Assuming 3yr/36K like the old one?

    Most people in the know at BMW expect the lease deals to get worse next month, so there is some urgency... There are also special money factors for returning customers this month..

    Without the specifics on what MF they are using, it's hard to tell how good your deal is... It certainly isn't terrible..

    regards,
    kyfdx

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  • billmvbillmv Member Posts: 148
    kyfdx......Any idea what the "special money factors" are for returning customers in July? I've got an X5 lease that's up in early October, but would like to get an X3 next. I had planned on waiting a month or so to sort things out, but it sounds like maybe I should try to do it July 31 if things are about to hit the fan in the leasing world.

    What else do you hear about BMW's attitude toward leasing? I read in the paper today that Chase will no longer provide lease financing for Chrysler, and that does not bode well for the world of leasing in general.

    Any inside info might be VERY timely for many of us. Thanks!
  • kyfdxkyfdx Moderator Posts: 235,188
    I'm pretty sure that the OLP MF on the X3 is .0016 for July... Not great, but not bad.. Plus, the X3 is the last BMW model that still has an unrealistically high residual (64% for 3yr/36mo.?)

    I wouldn't worry about leasing issues at BMW... We are seeing a correction to those residuals, but BMWs still have great resale..

    Strangely enough, I just leased a Subaru this week.. and the financing was through Chase...

    Also.. none of this is "inside info".. I just read a lot.. :)

    regards,
    kyfdx
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  • sshhermansshherman Member Posts: 2
    Hoping to lease a 2008 X3; Does anyone know what the money factors and residuals are on 36 and 24 months from BMW financial this month?

    I received the following deal from one dealer.

    New 2008 X3, White/Black, Premium, Cold Weather, Heated steering Wheel,
    Navigation, and Privacy Glass. MSRP is 45525. Sell price $43600. The 36
    month lease with 20000 miles per year is $635, taxes included, $2500
    required at signing.

    I know NJ has a 7% sales tax, not sure what the 2500 goes towards; but does this seem like an OK deal?

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, sshherman. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2008 X3 with 15,000 miles per year are .00200 and 72%, respectively. The money factor would be the same for an otherwise identical 36 month lease, but the residual value would be 62%. Keep in mind that BMW is providing a .00040 money factor reduction on this model for current lessees.

    I am not personally all that familiar with what the market is like for the 7-Series right now, but you may be able to get an idea of the selling price that you were quoted is attractive or not by hopping on over to the "BMW 7-Series Prices Paid and Buying Experience" discussion.

    Car_man
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  • abm2abm2 Member Posts: 4
    Just leased 08 new X3, base model from Braman in Miami. Wasn't even looking at this vehicle but saw an ad and went to see if it was a bait. It wasn't. MSRP 39125, 24 MONTHS, 10000 per year, 359+tax. At signing only first month and taxes, total 723.
    I usually go thru the whole inquiry process of cap cost, mfactor etc, but it was clear that this was a great price. You need the owner incentive. The residual was 75% and I can't positively quote the Mfactor, but I think the incentive was for .0004 (.96% interest rate). This was after returning an 05 volvo s60 and was looking at an S40, but was quoted best price for a base S40 at $385 per month. Not much of a chance anyone goes for that-maybe that is why no one was there on a Saturday while the BMW dealer was loaded with customers.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on getting a great deal on your new X3, abm2. Thanks for taking the time to share the details with everyone. It sounds like you had a positive dealer experience as well. If you are interested in sharing more information about it with everyone, hop on over to the Dealer Ratings & Reviews section of Edmunds.com. Enjoy your new ride :shades: .

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  • j1ggastylej1ggastyle Member Posts: 6
    Wow!!! That's the type of deal that I'm looking for!! Who did you speak with? I've been watching the papers for that same deal!
  • kpjkpj Member Posts: 6
    I have a current BMW lease that will end next month. Can you let me know the current BMW customer loyalty residual and MF for a 2008 X3 and X5?

    Thanks,
  • jeannemayjeannemay Member Posts: 3
    Can you tell me a good negotiated lease price per month
    MSRP 40975
    10,000 miles
    36months
    taxes and all fees plus 1st month paid and 3500.00 down, no security deposit.
    money factor is .00255
    Residual value being used is 65%
    Northern New Jersey Dealer
    NY Tax of 8.13 paying up front
    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kpj. BMW's lease program varies by term and mileage allowance. You never mentioned what either of these variables are, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different.

    BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 BMW X3 with 15,000 miles per year are .00240 and 62%, respectively.

    The numbers for an otherwise identical lease of an '08 X5 3.0si are .00200 and 53%, respectively on models that have the free Premium Package. The money factor is reduced by .00080 for non-Premium Package models.

    BMW was providing a money factor reduction on select models for returning BMW FS lessees, but I have not seen anything about it lately so it might not still be available.

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  • jeannemayjeannemay Member Posts: 3
    The x3 I am seeing is money factor .00255 they say that is because we will have no security deposit. I am a first time buyer so the .00240 is only offered if you put a security deposit.
    36 months 10,000 miles. is what I am looking at. I am still having a hard time coming up with the payment per month that is good!
    There is no premium package. My residual value is definitely 65% I think that looks better then what is being offered out there. Is that right? or is the mileage
    a factor?
    thanks again
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey jeannemay. The dealer that you spoke with is correct. The .00240 money factor is only available for returning lessees or those who pay a security deposit equivalent to their vehicle's monthly payment rounded up to the nearest $50 increment at lease signing. BMW FS will waive its security deposit requirement for non-returning lessees in exchange for a .00015 money factor increase. This truck's 10,000 mile per year residual value is 3% higher than its 15k residual, so the 65% number is also correct.

    Car_man
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  • jeannemayjeannemay Member Posts: 3
    thanks sooo one more question those numbers are correct but what is the bargaining tool?? the msrp is 40975 they were offering 511.00 a month came down to 505.00
    all included in the 3500 down taxes, paperwork , 1st month is that an ok deal??
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, jeannemay. Since the lease program is good, the only way to get a lower monthly payment is to negotiate a lower selling price. the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You definitely should find this number out and compare it to the prices that other community members have paid for similar trucks lately by visiting the "BMW X3 Prices Paid and Buying Experience" discussion.

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  • leaser310leaser310 Member Posts: 7
    I've been leasing a 2006 x-3 on a two year lease. The lease is up in December, and I'd like to release the car. I called my dealership and they've quoted me a leasing price of almost $230/ month more on a 24 month lease and $170/month more on a 36 month lease. They are also charging an initial payment of more than $6000 -- this after the original initial payment of $5000 I paid in 2006.

    Remember this is now a used car. These lease charges are more than the advertised leases on the new X-3 I see in the newspaper.

    Any idea why these charges should be so much higher than my original lease?

    Do I have to release through the original dealership?

    Any idea where I can get a lease my used car that is the same or less than what I am currently paying for it?

    Thanks. RG
  • billmvbillmv Member Posts: 148
    RG...... Essentially you have to drill down into the math they used to calculate these payments to understand where you're getting hosed. Ask them for the following:

    1) the capitalized cost. This should be no more than the residual value on the first lease. You paid it down to that amount, so you should not have to "buy" the car for more the second time around.

    2) How much of the $6,000 initial payment is for a "cap cost reduction" (down payment) and how much goes to other fees. Get a complete breakdown of those fees. Is there another "bank fee"? Is the lessor BMW Financial Services or a local bank? If it's BMWFS, then you may be able to re-lease through them directly. Call them and find out.

    3) What is the new residual value?

    4) What is the new money factor? Compare it to MFs for new leases.

    With these figures you can calculate your new payment. Do you know how to do that? It should match theirs. I'll bet in your case they are jacking up the MF and bank fee substantially to make more money.

    Often in a lease on a brand new car the manufacturer will use a residual that is a bit high in order to lower the payment. But in a re-lease, they know that they have to look at what the vehicle will be worth at the end of the second lease, and that can be quite low. All that depreciation jacks up your payment. Plus, they probably won't be able to give you as good a MF as they can the first time around.

    Good luck!
  • leaser310leaser310 Member Posts: 7
    Thanks for the good info. I was working with my local dealership. I'll call BMWFS first thing in the morning.
  • kpjkpj Member Posts: 6
    Thank you Car_man for your response. It was the 36 month 15,000 mile leases that I was referring to.

    Are these the same numbers for the month of October on 2008 models? Also, are they still offering the premium package reductions or any other incentives to help move the '08's?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, kpj. BMW actually just enhanced its October lease program for 2008 models on Friday. BMW Financial Services' new buy rate lease money factor and residual value for a 36 month lease of a 2008 X3 with 15,000 miles per year are .00125 and 62%, respectively. Some '08 models still have free options available on them, but I don't think that the X3 is one of them.

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  • kpjkpj Member Posts: 6
    thanks again. can you give me the lease rates on the X5? 36 months. 15,000 miles.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem kpj. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 X5 3.0si with 15,000 miles per year are .00125 and 53%, respectively.

    Car_man
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  • kev6873kev6873 Member Posts: 11
    Can someone please explain to me why I shouldnt do an Owners Choice versus a lease? I live in Illinois and if I do plan on possibly buying the car, I would have to pay 7.5% sales tax...TWICE. The owners choice is like a balloon of some sorts if I understand it correctly. What are the drawbacks to it? Can someone please help me decide?

    I am looking at a 2008 X3. My payments would be 393 (after trade in of an owners choice that weve had for 2 months but dont like the car) with a lease with the .00125 program, 10k miles or 422 a month with the owners choice at 12k miles. Residual is 60.5%. The car has 9900 miles on it.
  • m3ser2005m3ser2005 Member Posts: 3
    Here is the lease deal from my BMW dealer.

    Good / OK / Not the best / Don't do it / RUN

    New X3 (Premium, Sport and Cold weather packages)
    3-years/10k
    $5000 down
    $377 month

    Dealer price on X3: $44,450
  • kyfdxkyfdx Moderator Posts: 235,188
    1) What is the MSRP?

    2) I'd say its a good deal, assuming MSRP is around $47K+

    3) Roll that $5K into the lease payment.. Sure, that makes the payment about $525/mo., but the money is cheap (3%).

    4) Is 10K mi/yr enough? Going to a 12K/yr lease only adds $15/mo. and another $30/mo. to go from 12K to 15K/yr..

    Good luck!
    kyfdx

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  • m3ser2005m3ser2005 Member Posts: 3
    Thanks. Was worried no one would respond in time. The dealership had no 08 left with the features I wanted. So their bring one in by truck from another dealership in another city. They brought it in under their dime. I saw the listing for the car I pick before the arrangement took place.

    1) The MSRP was $47,500. But they came down to $44,700. I went in thinking I wanted to buy, but remembered I need a lease for business write off. So I switch to a 3 year lease.

    2) Did you mean to not roll the money into the lease?

    3) They are offering me a deal in the last year of the lease, if I think I'm going to be over mile, I can switch my mileage to 12K no problem, just $540. They will put that in writing. I'd rather go for low payment now and worry about mileage closer to the end.

    With there zero cost of ownership, and some weariables (hat, jacket and plate holder) it really sounds like a pretty good deal.

    How does this logic sound?
  • kyfdxkyfdx Moderator Posts: 235,188
    I'm not a tax expert, so take this with a grain of salt...

    I don't think you can take that $5K as an expense upfront, you'll have to write it off over the life of the lease, just as you would if you rolled it into the payment... I strongly encourage you to do that, as that money is at risk, if the car is totaled or stolen in the first few months of the lease.

    The mileage thing is a little iffy.. Yes, you can buy mileage from BMWFS for $0.16 ea., before the lease is up... so, 6000 extra miles will be $900... No matter what they put in writing, I don't think BMWFS will go for the $540 thing... which is exactly what it will cost you to sign up for the miles in advance... I suggest you do so, if you are fairly certain you will need them.

    Overall, your deal looks great.. Is $5K the total amount due at signing? Or, do you have to come up with acquisition fee, 1st payment, etc, etc, in addition to that?

    regards,
    kyfdx

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  • m3ser2005m3ser2005 Member Posts: 3
    yeah, I hear you. Taxes are a lovely thing. This is the third car I've leased. My accountant has cleared it in my past leases and has told me why, I just can't remember. I'll take the deduction this year because I need it.

    Interesting on the mileage thing. I'm going to double check this.

    5K due at signing and drive. Come on, the hat and jacket are worth $5000 alone. At lease the parts for my 95 LWT M3 are right up there.
  • kyfdxkyfdx Moderator Posts: 235,188
    Really...that's a good deal..

    Dealership, city and state?

    I've been shopping for an X3 myself..

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  • hhgolfhhgolf Member Posts: 3
    :confuse: The residual will be about $29K in Feb2010. I will not have fully used all 45K miles, I only have 21K now. The real Q is should I buy and could I deal below residual. Or is it worth dumping it sooner? Just may be tiring of the truck.
  • bzeebzee Member Posts: 1
    Carman,

    Please post 2008 Nov MF/Residual for :

    2008 X3 36mth / 12K
    2008 X3 24mth / 12K

    Thanks..
  • gnochmangnochman Member Posts: 4
    Hello
    Could someone run through the numbers for me here? I've used various online calculators and did my own equations and the numbers aren't consistent.
    '08 x3
    $45,300MSRP
    Negotiated price = 42,900
    MF = .00125
    Res = .64
    36 months at 12K miles
    tax is roughly 5.5%
  • billmvbillmv Member Posts: 148
    $502.39 if tax is exactly 5.5%.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi hhgolf. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now.

    Given the precipitous fall in used vehicle values over the past year, particularly for trucks, you likely find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, bzee. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2008 X3 with 12,000 miles per year are .00125 and 72%, respectively. The numbers for an otherwise identical 36 month lease are .00125 and 64%.

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  • billmvbillmv Member Posts: 148
    hhgolf......I'd try to get someone to assume the lease. Go to www.swapalease.com and post your vehicle there. It's a pretty good spot to get out of a lease you no longer want. I've picked up two vehicles there.
  • bernsjbernsj Member Posts: 2
    Can someone let me know how much a lease is going for in Newyork on a 2008 BMW X3?
  • soonercatsoonercat Member Posts: 48
    Hi carman, do you know the 2009 figures
    X3/36 month/12k and 15k thanks!
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