2014 BMW 5-Series Lease Questions

fdezarra · April 2014

Hello. I am looking for the current residual on a 2014 BMW 528i with an MSRP of $54,225.00. If you can please provide the residual on both a 10K/36 month lease as well as a 12K/36 month lease. Also, the money factor for this vehicle.

Thank you very much.

kyfdx · April 2014

@fdezarra said:
Hello. I am looking for the current residual on a 2014 BMW 528i with an MSRP of $54,225.00. If you can please provide the residual on both a 10K/36 month lease as well as a 12K/36 month lease. Also, the money factor for this vehicle.

Thank you very much.

.00130 MF and 61% residual for 12K/yr. 62% for 10K/yr. $1500 option credit cash.

dannys1 · April 2014

Thanks. I appreciate that. Although, I do not know I could being doing better on the selling price. Is the $637.51 in the ballpark for this configuration?

Michaell · April 2014

@dannys1 said:
Thanks. I appreciate that. Although, I do not know I could being doing better on the selling price. Is the $637.51 in the ballpark for this configuration?

Yes, since you are getting the base rate (minus MSD) for the money factor, the only way to reduce the payment is to negotiate a better selling price.

fdezarra · April 2014

Sorry. When you say option credit cash of $1500.00, this is a credit? To be further applied to negotiated price? What else can you do with it? Also, in the Audi forum, 6% was a reasonable amount to negotiate down to off MSRP. Does this apply to BMW as well?

Michaell · April 2014

@fdezarra said:
Sorry. When you say option credit cash of $1500.00, this is a credit? To be further applied to negotiated price? What else can you do with it? Also, in the Audi forum, 6% was a reasonable amount to negotiate down to off MSRP. Does this apply to BMW as well?

Yes, the $1500 option credit can be deducted from your best negotiated selling price.

I'm not in the market for a BMW (though my daughter just bought a MINI last week), so I can't tell you what an acceptable discount would be. For Audi, my company is also a partner, so I can confirm the 6% discount from MSRP.

dannys1 · April 2014

Do you think the $637.51 is a fair or high monthly payment with these options- cold weather, premium and driver assist? (residual 59% and 7MSDs).

Michaell · April 2014

@dannys1 said:
Do you think the $637.51 is a fair or high monthly payment with these options- cold weather, premium and driver assist? (residual 59% and 7MSDs).

I think my co-host has answered that question a few posts back. The only wiggle room you have is in the selling price, but the dealer may have gone as low as they can. All you can do is ask.

stunyccpa · April 2014

To those who have test driven or are currently in a 528i, how do you feel about the 4 cylinder engine?

86Barn · April 2014

Mf and residual for 12k on a 535d xdrive

36mo 24 and 48

kyfdx · April 2014

@nourdmrolnmt1 said:
Mf and residual for 12k on a 535d xdrive

36mo 24 and 48

.00130 MF and 60% residual on 36mo, 12K/yr. 66% residual on 24mo/12K.

BMW doesn't subsidize 48 month leases.

$1500 option credit cash. $500 eco credit.

fdezarra · April 2014

So, I jumped to BMW for consideration and found the following vehicle.
BMW 528i 2.0L 4 cylinder engine
MSRP of $56,910.00
Total due at Inception $1564.00
Monthly payment of $584.00 tax included.

What I don't have is the residual or the money factor so I don't know how to calculate the purchase price. Can anyone help me reverse engineer this deal?

It would be for a 10K/36 month lease. I'm in FL so tax rate is 7%.

Is this a good deal?

hypnotics · April 2014

Is it possible to confirm MF and residuals for 528xi and 535xi? For 528xi I have 61% 0.00130 for 36m 12k/yr and for 535xi 62% 0.00125 36m 12k/yr?

Thanks in advance

Michaell · April 2014

@fdezarra said:
So, I jumped to BMW for consideration and found the following vehicle.
BMW 528i 2.0L 4 cylinder engine
MSRP of $56,910.00
Total due at Inception $1564.00
Monthly payment of $584.00 tax included.

What I don't have is the residual or the money factor so I don't know how to calculate the purchase price. Can anyone help me reverse engineer this deal?

It would be for a 10K/36 month lease. I'm in FL so tax rate is 7%.

Is this a good deal?

.00130 is the base MF and 62% is the residual for 36/10K

delnole · April 2014

Could you post the April MF and residual for a 535i? 12K/36 months. Thanks.

kyfdx · April 2014

@delnole said:
Could you post the April MF and residual for a 535i? 12K/36 months. Thanks.

.00130 MF and 61% residual. $1500 option credit cash.

bayo2 · April 2014

Think I did OK on a 2014 535D 36 month 10K lease today..
10% off MSRP ($56K) - 7 MSD - 0 Down - Maybe a little heavy on the junk fees:)
$4,550 Deposit / $90. Reg / $371 Lisc / $72 Sales/Use Tax / $725 Acq / $80 Doc prep / $7 Title / .00091 money MF / 61% resid - $643. Payment…
SF Bay Area 9% tax rate.

billt18 · April 2014

Hi, I tried to use .00130 MF and 62% residual on BMW advertised 10k/36month lease deal, which is based on $58,400 MSRP, $1500 cash and $3000 downpayment. A sales price of $54600 gives advertised $539/month. And Edmunds' true market value is $54100, which gives $521/month. Is advertised special really so close to "best" deal? Thanks!

kyfdx · April 2014

It's often possible to beat the advertised deals. Of course, there are plenty of dealers that will still try to mark up every number, and offer worse deals, as well.

sm102 · April 2014

Hi,
Can you post MF and residual value for a 550i, 10k miles/year, 3 yr term, as well as MSD credit info?
Also, how much above/below invoice should I typically expect for a 550i?

kyfdx · April 2014

@sm102 said:
Hi,
Can you post MF and residual value for a 550i, 10k miles/year, 3 yr term, as well as MSD credit info?
Also, how much above/below invoice should I typically expect for a 550i?

.00130 MF and 62% residual. $1500 option credit cash.

Each MSD lowers the money factor by .00007, with a maximum of 7 allowed, for a total money factor reduction of .00049

mcfischer · April 2014

Hi Kirstie,

Can you supply the May base MF and residual for a 535i 36 month lease with both 10,000 and 12,000 miles? Any info on option rebates or other incentives would be welcomed as well. Thanks.

ajcohen · April 2014

Any word on the 2015's?

kyfdx · May 2014

We don't have the May information, yet.... It will be a few days.

fdezarra · May 2014

@kyfdx@Edmunds said:
Each MSD lowers the money factor by .00007, with a maximum of 7 allowed, for a total money factor reduction of .00049

Dumb question but can you explain MSD? What does it mean that more than 1 can be applied?

kyfdx · May 2014

MSD is short for Multiple Security Deposits. Each security deposit is your payment, rounded up to the next $50 increment. (payment is $422/mo, each deposit is $450).

By making additional deposits, BMW will lower your money factor by .00007 for each deposit. You may make a total of 7 deposits, for a total money factor reduction of .00049. (in the example above, 7 deposits would = $3150)

fdezarra · May 2014

null

And this security deposit is returned in full at the end of the lease?

What's the gain for BMW? Why would this reduce the MF?

Michaell · May 2014

@fdezarra said:

And this security deposit is returned in full at the end of the lease?

Yes.

What's the gain for BMW? Why would this reduce the MF?

They get to hold the money for the lease term and, presumably, earn interest on it. In return, you get a lower MF.

mcfischer · May 2014

I have three questions on acquisition fees and drive offs that I'd be interested to hear what other people's experience has been (and what our moderators can share).

(1) When I sit down and run through all of the lease calculations with dealers, I'm finding that some dealers do not include the acquisition fee in the basic calculation and instead list the acquisition fee as part of drive-offs. Others seem to include it as part of the underlying capitalized cost (although you have to push them to disclose it). It doesn't seem to make a difference mathematically where they put it since it's either a higher finance charge or more cash up front either way. If anyone can comment on whether it does, I'd appreciate it.

(2) Is there a mark up of acquisition fees? Every dealer I've seen here in Southern California seems to list an acquisition fee of $925, but I see above some our forum members listing acquisition (aka bank fee) of $725. Your comments and observations on this would be appreciated as well.

(3) Finally, in light of the continuous stream of pull-ahead programs that BMW has offered, if you love BMW, you are going to have an opportunity to end your lease early and get into a new BMW. Since I fall into this category, this suggests to me that I should be putting as much of (or even all of) the drive-off costs into the lease and putting zero down. For example, on a 36 month lease, if I pay those costs up front, I've reduced the finance charge portion of my lease, but I'm out the cash. If I put them into the lease, and end 6 months early, I pay interest on the drive-offs I've financed for 30 months, but I've effectively "saved" 1/6 of them by ending the lease early (30 months into a 36 month lease). The "savings" seems to far outweigh the finance charges on 30 months of the drive-offs. Can someone better at math than me opine on whether this logic holds?

Thanks.

Michaell · May 2014

@mcfischer said:
I have three questions on acquisition fees and drive offs that I'd be interested to hear what other people's experience has been (and what our moderators can share).

(1) When I sit down and run through all of the lease calculations with dealers, I'm finding that some dealers do not include the acquisition fee in the basic calculation and instead list the acquisition fee as part of drive-offs. Others seem to include it as part of the underlying capitalized cost (although you have to push them to disclose it). It doesn't seem to make a difference mathematically where they put it since it's either a higher finance charge or more cash up front either way. If anyone can comment on whether it does, I'd appreciate it.

(2) Is there a mark up of acquisition fees? Every dealer I've seen here in Southern California seems to list an acquisition fee of $925, but I see above some our forum members listing acquisition (aka bank fee) of $725. Your comments and observations on this would be appreciated as well.

(3) Finally, in light of the continuous stream of pull-ahead programs that BMW has offered, if you love BMW, you are going to have an opportunity to end your lease early and get into a new BMW. Since I fall into this category, this suggests to me that I should be putting as much of (or even all of) the drive-off costs into the lease and putting zero down. For example, on a 36 month lease, if I pay those costs up front, I've reduced the finance charge portion of my lease, but I'm out the cash. If I put them into the lease, and end 6 months early, I pay interest on the drive-offs I've financed for 30 months, but I've effectively "saved" 1/6 of them by ending the lease early (30 months into a 36 month lease). The "savings" seems to far outweigh the finance charges on 30 months of the drive-offs. Can someone better at math than me opine on whether this logic holds?

Thanks.

I'll let my co-host weigh in as well, but here is my take on your excellent questions.

1) it's all about how much out of pocket you want to have. You can do it both ways, but rolling the acq fee into the lease does not increase the MF.

2) the base acq fee is $725 - any dealer marking it up to $925 is doing so for extra profit.

3) it's the weekend and too much math will make my head hurt. But, I do agree with your premise. Again, it comes down to how much money you want to invest up front. Me, I'm comfortable with nothing more than the first payment only.

fdezarra · May 2014

Are the May numbers out yet? 10K/36months 2014 BMW 528i? MF and residual?

kyfdx · May 2014

@fdezarra said:
Are the May numbers out yet? 10K/36months 2014 BMW 528i? MF and residual?

.00130 MF and 62% residual. $1500 option credit cash.

fdezarra · May 2014

Thank you. Was hoping for a change. Guess not.

rob1ejs · May 2014

what are the may numbers for a 2014 535xi, 12,000 miles/yr; 3 year lease? thanks!

kyfdx · May 2014

@rob1ejs said:
what are the may numbers for a 2014 535xi, 12,000 miles/yr; 3 year lease? thanks!

.00130 MF and 61% residual. $1500 option credit.

911rat · May 2014

just got AMAZING deal----- 2014 535 x-drive w/ M-sport, premium, rear view, cold weather, park distance, black kidney grills, glacier silver for 13 percent off! 57,700 price on 66,340.00 MSRP
bought down money factor with 7 MSD TO 1.944 percent from base of .00130 or 3.12. payment 643 total which included 6 percent payment tax ifor Michigan with 59 percent residual 15k miles ---- just paid 1st month, 7MSDs and 725 aq. fee up front.

stunyccpa · May 2014

@911rat said:
just got AMAZING deal----- 2014 535 x-drive w/ M-sport, premium, rear view, cold weather, park distance, black kidney grills, glacier silver for 13 percent off! 57,700 price on 66,340.00 MSRP
bought down money factor with 7 MSD TO 1.944 percent from base of .00130 or 3.12. payment 643 total which included 6 percent payment tax ifor Michigan with 59 percent residual 15k miles ---- just paid 1st month, 7MSDs and 725 aq. fee up front.

Like that deal. I'm thinking about a 535xi with M Package for my next lease in 2 months.

911rat · May 2014

good luck-----car came from BMW OF LINCOLN----I checked with 7 dealers and nobody came close to that deal----they ship.

rob1ejs · May 2014

Thanks! what is the residual % for 2014 535xi, 15,000 miles/yr; 3 year lease?

@kyfdx@Edmunds said: .00130 MF and 61% residual. $1500 option credit

kyfdx · May 2014

@rob1ejs said:
Thanks! what is the residual % for 2014 535xi, 15,000 miles/yr; 3 year lease?

.00130 MF and 59% residual. $1500 option credit

jks24 · May 2014

MSD- is there any risk? What if you "total"--crash , your car-do you still receive your security deposits back????

kyfdx · May 2014

@jks24 said:
MSD- is there any risk? What if you "total"--crash , your car-do you still receive your security deposits back????

Well... any time someone else has some of your money, there has to be some risk.

But, anecdotal evidence is that the MSD system is perfectly secure. I've used it three times, myself, with no issues.

jks24 · May 2014

thank you, just left the dealership, did not ask for quotes yet, bc I wanted to research here. I like the GT 535i, priced at 60-68 depending on options.

jks24 · May 2014

Does anyone have any information on the 535 GT? I want to lease 12k/36 mos.
Premium package with Luxury seating. Any help would be great!! Im in Fla, 6% tx

jks24 · May 2014

MF and residual on a 535i GT??? anyone

kyfdx · May 2014

@jks24 said:
MF and residual on a 535i GT??? anyone

.00130 MF and 61% residual for 36mo, 12K/yr. $1500 option credit

jks24 · May 2014

Thank you sooooo much, guess it is not a popular car! I loved it , not an SUV, but not "low" like the regular 5.

arich1 · May 2014

Looking for MF and Residual for 535D, 10K miles, 36 month. Thank you so much for doing this!

kyfdx · May 2014

@arich1 said:
Looking for MF and Residual for 535D, 10K miles, 36 month. Thank you so much for doing this!

.00130 MF and 61% residual. $1500 option credit and $1000 eco credit.

av1011 · May 2014

I am looking to lease a 535d. I am looking for the MF and Residual value for a 36/42/48 months with 12k/year lease. Are there any additional incentives available other than what is on BMW website?

2014 BMW 5-Series Lease Questions

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