2014 BMW X3 Lease Questions

rockville2 · May 2014

@rockville2 said:
Thank you for informative and practical information. May I ask you what residual value and money factor in May 2014 for BMW X3 drive 28i? I am looking at either 10K or 12K miles per year for 36 month lease. Do you also know the base bank fee and what dealers charge for advertisement and/or training fee?

Thank you.

So sorry. I meant to write 2015 x3 not 2014.

rockville2 · May 2014

@kyfdx said:

This is a newbie question. So if the dealer agrees on the invoice+$500 for example, would they try to charge training and maco on the top of invoice+$500? Thank you.

okie33 · May 2014

3.25 is Oklahoma. I will copy and paste dealers counter and maybe you can let me know what you think. I think he's blowing smoke.

Thank you for your interest. We are very interested in your business. I am very agreeable to selling a new X3 close to cost and structuring the lease however you like – within the parameters that BMW allows of course. The items below are not an issue and make sense.

36 months

15k / yr. - 54% - $27,014

Money factor at buy rate - .0012

$50,025 MSRP

The items that I am struggling with are below.

The tag and tax in Oklahoma are an upfront tax figured off the sale price at 3.25% plus $119 for the fees. They are paid upfront or can be rolled in. They are not a percentage of the payment like in some other states. So the TT&L would be $1,533 if we sold the X3 for the sale price you are requesting.

The Challenge with the price I am having is that the X3 has a cost with the dealer incentive removed of $44,850. So I was attempting to sell it to you for $1,000 over cost and then adjust the lease to buy rate so we wouldn’t make any money on the lease rate or acquisition fee. I need to make a little something of course. If I adjust that down to the price you are requesting we would be selling it for a $1,326 loss. I will go ahead and sell it at cost to make a deal with you so the best price would be $44,850. Below is how that makes the payment lay out with the tag and tax figured like I mentioned above.

36mo. 15k/yr 54% $27,014 Residual

$50,025 msrp $44,850 sale price $2,000 down cap cost $42,850

$544 / mo. – with your total due at signing being $4,320

Which includes $2,000 down, $544 pmt, $199 proc fee, and $1,577 tag and tax

This is literally buying the car with the dealer making nothing on the sale or the lease rate – so a great deal for you.

Will this work and can we put this together? We love to have your business.

okie33 · May 2014

Based on his numbers I come up with a payment of $537.65/mo.... Is he still playing games with me or did I make a mistake?

Michaell · May 2014

@okie33 said:
Based on his numbers I come up with a payment of $537.65/mo.... Is he still playing games with me or did I make a mistake?

$6/mo difference is not all that much.

okie33 · May 2014

I agree $6/mo is not all that much but my original offer had me at $501.08 so $43/mo is quite a bit of difference actually. That's $1548 more over 36 months. My question was, is his offer a good deal?

kyfdx · May 2014

@rockville2 said:
This is a newbie question. So if the dealer agrees on the invoice+$500 for example, would they try to charge training and maco on the top of invoice+$500? Thank you.

It's a great question....and, it's why I never deal in "invoice + $XXX" offers. Because, you don't know what you are offering. Figure out the invoice of the exact car you want.. decide what amount you want to offer, relative to that number.. and, make that offer.

Because, the dealer is going to decide all variables and assumptions in their favor. Don't leave any wiggle room.

rockville2 · May 2014

Sorry about the repost. May I ask you what residual value and money factor in May 2014 for 2015 BMW X3 drive 28i? I am looking at either 10K or 12K miles per year for 36 month lease. Do you also know the base bank fee and what dealers charge for advertisement and/or training fee?

kyfdx · May 2014

@rockville2 said:
Sorry about the repost. May I ask you what residual value and money factor in May 2014 for 2015 BMW X3 drive 28i? I am looking at either 10K or 12K miles per year for 36 month lease. Do you also know the base bank fee and what dealers charge for advertisement and/or training fee?

AWD? .00133 MF and 56%/55% residual. The base acquisition fee is $725.

Dealers don't charge advertising and training fees... they pay them. The only way you should see that fee is if you ask the dealer for $XXX above his invoice or cost.

rockville2 · May 2014

yes, AWD. Does BMW offer 30 month lease? If so, RV for this? Thank so much!

kyfdx · May 2014

@rockville2 said:
yes, AWD. Does BMW offer 30 month lease? If so, RV for this? Thank so much!

30 month residuals are 4% higher than the 36 month residuals, on this model.

okie33 · May 2014

Sorry to ask again but I am hoping to finalize a deal today on the x3. The dealer responded with the numbers below, do they make sense? Is the $4320 due at signing to much in your opinion?

okie33 · May 2014

36mo. 15k/yr 54% $27,014 Residual

$50,025 msrp $44,850 sale price $2,000 down cap cost $42,850

$544 / mo. – with your total due at signing being $4,320

Which includes $2,000 down, $544 pmt, $199 proc fee, and $1,577 tag and tax

This is literally buying the car with the dealer making nothing on the sale or the lease rate – so a great deal for you.

kyfdx · May 2014

You don't really have to put the $2000 down.. you can roll that into the CAP cost. It will add about $58/mo to the lease payment. Also, your actual CAP cost is $725 higher, to account for the acquisition fee.

The numbers work out, with the base rate.. It's a good deal, given the lease program.

okie33 · May 2014

Thank you for the advice. This has been a huge help in making my decision. I will definitely use this site before leasing in the future.

captnred · May 2014

It looks like some of the sales are going for less than invoice - Are there any Factory to Dealer incentives that are in play?? I'm trying to buy an X3 at 500025 MSRP and the dealer will credit the current buildout of $2,000 plus another $2,000 and is insisting that he absolutely can't go below invoice.

kyfdx · May 2014

@captnred said:
It looks like some of the sales are going for less than invoice - Are there any Factory to Dealer incentives that are in play?? I'm trying to buy an X3 at 500025 MSRP and the dealer will credit the current buildout of $2,000 plus another $2,000 and is insisting that he absolutely can't go below invoice.

Invoice minus the $2000 should be about the bottom dollar deal.. If that dealer only wants to discount by $2000, then find another dealer.

driversedge · May 2014

For what it's worth, I've come across several dealers discounting 2014 X3s anywhere from $5000 to $7500 off of MSRP.

fllc · May 2014

I am looking to lease a 2015 X3 s drive in the next few months. I am located in Florida. Can you help me with how to negotiate the best lease deal possible. The msrp with the options that I want (Xline, Prem, Driver Assist, Nav) is $47,645.00, with an Edmunds invoice of $43,850.00. If someone could walk me through the details of an offer, I would greatly appreciate it. I get a little confused when dealing with sales price versus cap cost. Thanks and let me know should you need additional information.

This is my 4th BMW, so I should have some kind of loyalty?!?!

My salesperson is also trying to sell me on the lighting package and upgraded sound. Are these things necessary?

chicago2003 · May 2014

Similar question to the above. I live in Chicago. I received the following information on 2015 X3:
MSRP: $49,125
Sale Price: $47,160
Residual: 56%
Financing: 3.25%
36 month payment at 10k/year: $828.21

Seems higher than what others have discussed. If anyone has any insight it would be appreciated. Thank you!

kyfdx · May 2014

@chicago2003 said:
Similar question to the above. I live in Chicago. I received the following information on 2015 X3:
MSRP: $49,125
Sale Price: $47,160
Residual: 56%
Financing: 3.25%
36 month payment at 10k/year: $828.21

Seems higher than what others have discussed. If anyone has any insight it would be appreciated. Thank you!

3.25%? Is it a balloon note?

kyfdx · May 2014

@fllc said:
I am looking to lease a 2015 X3 s drive in the next few months. I am located in Florida. Can you help me with how to negotiate the best lease deal possible. The msrp with the options that I want (Xline, Prem, Driver Assist, Nav) is $47,645.00, with an Edmunds invoice of $43,850.00. If someone could walk me through the details of an offer, I would greatly appreciate it. I get a little confused when dealing with sales price versus cap cost. Thanks and let me know should you need additional information.

This is my 4th BMW, so I should have some kind of loyalty?!?!

My salesperson is also trying to sell me on the lighting package and upgraded sound. Are these things necessary?

$47,645 MSRP

$45,000 Selling price (just a guess)

$45,725 CAP cost (selling price + $725 acq.fee)

.00133 MF

54% residual (36mo, 15K/yr.)

$650/mo.+tax ($689/mo. with 6% tax)

Due at signing = 1st payment, title/license fees.

Beware of massive doc fees at Florida dealers... Deduct whatever the doc fee is from your offer, before you make it..

Lighting package and upgraded sound? You are leasing the car... don't pay for anything you don't see a need for. That's wasted money.

chicago2003 · May 2014

@kyfdx said:
3.25%? Is it a balloon note?

Yes, apparently it is a balloon loan with the option to walk away after 36 months which according to them is a mechanism to offset some of Chicago's high taxes.

kyfdx · May 2014

@chicago2003 said:
Yes, apparently it is a balloon loan with the option to walk away after 36 months which according to them is a mechanism to offset some of Chicago's high taxes.

I don't really follow the balloon programs, but I will say... it only helps on taxes, if you intend to buy the vehicle at lease end.... or, you use it as a trade-in credit on the next vehicle.. In other words, any tax savings will come later. It looks like they use the same residuals, and 3.25% is nearly equivalent to the current money factor..

So, most of the difference is probably tax... Compare it to our friend from Florida, just above... who is paying $39/mo. in tax... while, in Chicago, you are probably paying 13% on the full selling price? That's more like $169/mo. in tax... and, that's most of your difference.

fllc · May 2014

Thank you very much. Any idea when some incentives will be available on the 2015 x3? Debating whether to do pull ahead now or wait for August when my lease ends to see if the deals will be better. Any thoughts?

ccambre · May 2014

I am interested in the $419 advertised lease special. I can arrive at the calculations using a MF and RV that you provided, including the 2000 build out cash PLUS a $1750 dealer incentive that I read about on another site. Is it reasonable to assume that I negotiate several thousand off the MSRP and receive the 3750 in incentives? In other words, are those two variables independent? Thanks. Clay

kyfdx · May 2014

@fllc said:
Thank you very much. Any idea when some incentives will be available on the 2015 x3? Debating whether to do pull ahead now or wait for August when my lease ends to see if the deals will be better. Any thoughts?

If you are looking for a 2015, there is no harm in waiting.. I can't imagine the deals will get worse.. June numbers aren't changing, according to what we've heard.

kyfdx · May 2014

@ccambre said:
I am interested in the $419 advertised lease special. I can arrive at the calculations using a MF and RV that you provided, including the 2000 build out cash PLUS a $1750 dealer incentive that I read about on another site. Is it reasonable to assume that I negotiate several thousand off the MSRP and receive the 3750 in incentives? In other words, are those two variables independent? Thanks. Clay

It's not really an incentive... the $1750 is the dealer's discount from MSRP to achieve that lease payment.. That's only about 4% of the MSRP, so there is likely to be some more room to work on the price, but there aren't $3750 of incentives from BMW, only $2000. The advertised lease also assumes a $3000 cap cost reduction and the $725 acquisition fee, upfront.. so, the true monthly cost of that lease is closer to $555/mo., once all those upfront costs are rolled back in.

jupiterorlando · June 2014

Is there any update to the MF / residual values for June?

I'm looking at a 2014 X3 x28i in Florida with the tech package. Does it make sense to wait for a deal on the 2015s instead?

Thanks!

Michaell · June 2014

@jupiterorlando said:
Is there any update to the MF / residual values for June?

I'm looking at a 2014 X3 x28i in Florida with the tech package. Does it make sense to wait for a deal on the 2015s instead?

Thanks!

The June numbers should be available to us as early as tomorrow.

As far as 2014 vs 2015, the '15's will probably have a stronger residual but may have a higher MF to offset. And, the deals may not be quite so good.

kidneygrills · June 2014

2015 X3 28xdrive Residual value on 36 months is 53% with no current Option Credit available, versus 54% with the 2k credit on 14's. 14 MF is 120 vs 133 on 15's. Good thru end June unless there's a mid-month ammendment (which i doubt). Hope this helps.

jupiterorlando · June 2014

Thanks Michaell, kidneygrills. Could you help clarify the 120 vs 133 MF? Should I read it as 0.00120 vs 0.00133?

jupiterorlando · June 2014

I got it in the previous comment in this thread, thanks.

skoot1027 · June 2014

I'm looking to get a 2014 x3 this month. A couple questions for those of you who have been through this before:

Do dealerships only have what they show in stock on their website? Or do they have access to more if I call and tell them the color combo I'm looking for?
Any tips for reaching out to multiple dealers to both get access to a broader inventory and ideally get a better price?
Any recommendations for dealers in the CT/NY(/NJ?) area? I'm leaning toward BMW of Greenwich just for convenience. I also like that CT (and I guess NJ) allow for MSDs, unlike NY.
Does it really matter where I lease from, or do I just go for the best price? I'll likely have service done at another dealer because I'll be moving anyway.

Thanks

Michaell · June 2014

@skoot1027 said:
I'm looking to get a 2014 x3 this month. A couple questions for those of you who have been through this before:

I'll answer what I can and let others chime in as well.

Do dealerships only have what they show in stock on their website? Or do they have access to more if I call and tell them the color combo I'm looking for?

Dealers can trade with one another, or you can place a special order and get exactly what you want. Generally, what they show on the web is what they have.

Any tips for reaching out to multiple dealers to both get access to a broader inventory and ideally get a better price?

Let your fingers do the walking. Use the pricing tools at the top of the page to get a sense of what your configuration will cost, and negotiate with multiple dealers to ensure you are getting the best price.

Any recommendations for dealers in the CT/NY(/NJ?) area? I'm leaning toward BMW of Greenwich just for convenience. I also like that CT (and I guess NJ) allow for MSDs, unlike NY.

I live in Colorado, so I can't help you there, but I do agree that the cap on MSDs hurts the NY dealers. MSDs are a great way to reduce your monthly payment.

Does it really matter where I lease from, or do I just go for the best price? I'll likely have service done at another dealer because I'll be moving anyway.

For warranty work, any BMW dealer will do, but there is something to be said about cultivating a relationship with a specific dealer.

Thanks

khuzbuz · June 2014

I'm in the MD/DC area and looking to lease either a 2014 or 2015 X3 xdrive28i. Assuming a 36month lease term with 15k miles/year, please provide the residual value and money factor for top tier borrower for both '14/'15.

Thanks!

kidneygrills · June 2014

Agree with all of the above..some addl. to add maybe -

Dealers also have vehicles in active Loaner service. These aren't on the websites, and occasionally they can be a good source for finding a gem.
Keep in mind dealers are not generally fans of doing DX's or dealer exchanges...it's a pain in the rear for them and sometimes they'll incur fees, or have to give up something they want to keep for it. Point being they'll generally be more motivated to 'deal' on something on their lot.
Can't help much there i'm afraid...i'm in MD.
Nope...go with best price/deal.

Good luck!

kidneygrills · June 2014

Khuzbuz - answer below for you -

14 X328i is 0.00120 MF with an RV of 54% on that basis. 15 same model is 0.00133 and 53% RV. Hope this helps.

khuzbuz · June 2014

Thanks for the info. So how does the residual value get calculated on a loaner/demo car? Is it still based on the MSRP or a lower number based on the miles already on the car? Is it usually better, financially, to lease brand new or a loaner car?

kidneygrills · June 2014

It's complicated...but suffice to say that the residuals deteriorate as you get further away from brand new/current model year. In other words for leasing, rates are at their best when your talking about brand new, and current model year...so yes if you're going lease, you need to go new.

kyfdx · June 2014

@khuzbuz said:
I'm in the MD/DC area and looking to lease either a 2014 or 2015 X3 xdrive28i. Assuming a 36month lease term with 15k miles/year, please provide the residual value and money factor for top tier borrower for both '14/'15.

Thanks!

2014: .00120 MF and 54% residual

2015: .00133 MF and 53% residual

kyfdx · June 2014

@kidneygrills said:
It's complicated...but suffice to say that the residuals deteriorate as you get further away from brand new/current model year. In other words for leasing, rates are at their best when your talking about brand new, and current model year...so yes if you're going lease, you need to go new.

I think that depends... I've gotten killer lease deals on service loaners and/or executive cars.. Just have to get the stars to align... ($335/mo. on a Z4 service loaner for 24 months with only 1st payment and MSDs upfront. Original MSRP of $55K).

skoot1027 · June 2014

Thanks Michaell and kidneygrill!

jla76 · June 2014

Can you please confirm the MF and residual for '14 X3 28i for 12k/36m. Offer below: MSRP: 49750
$6800 off= 42950
Believe MF 0.0012 w 55% residual
Base payment $520
NYS tax, 1st month, $725 bank fee = $3020 upfront.
Don't think I can get much better deal?

kyfdx · June 2014

@jla76 said:
Can you please confirm the MF and residual for '14 X3 28i for 12k/36m. Offer below: MSRP: 49750
$6800 off= 42950
Believe MF 0.0012 w 55% residual
Base payment $520
NYS tax, 1st month, $725 bank fee = $3020 upfront.
Don't think I can get much better deal?

It's .00120 MF and 56% for the 2014 model.

jla76 · June 2014

Then shouldn't above base month payment be $505?

kyfdx · June 2014

@jla76 said:
Then shouldn't above base month payment be $505?

Or the dealer made a typo on the residual?

jla76 · June 2014

Is the $925 destination fee part of MSRP and included in residual value?

Michaell · June 2014

@jla76 said:
Is the $925 destination fee part of MSRP and included in residual value?

Destination is part of MSRP and included in the residual value.

jla76 · June 2014

The residual is 54% for '14 w 12k miles? That's what my dealer said.

2014 BMW X3 Lease Questions

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