Last post on Nov 25, 2013 at 11:14 AM
You are in the Prices Paid - Buying & Leasing Experiences
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BMW X3, SUV
#1323 of 1854 Does this 2007 X3 lease sound to good to be true??
Apr 18, 2007 (8:48 pm)
I'm interested in leasing a bmw x3. I shopped around the Chicago area, and asked my brother to stop by bimmer dealerships in a few neighboring states.
One particular dealer showed him a 2007 X3, which was VERY nicely equipped with a msrp around $44,xxx. The lease details are as follows:
$3,000 total out of pocket cash (clearly stated not interested in hidden fees, just want to write one check).
12,000 miles a year
24 month lease
$425 a month
I've seen a few people on this site with $500+ lease rates. Does this monthly rate ($425) seem about right, a bit sketchy, or simply a great deal?
Very much value your input...
#1324 of 1854 Re: Does this 2007 X3 lease sound to good to be true?? [phatjoe]
by kyfdx@Edmunds HOST
Apr 19, 2007 (3:16 am)
With $3000 out of pocket on a 24 month lease, this quote is basically a $500/mo. lease, if you didn't have the big amount down upfront..
Still.. not a bad deal on a $44K vehicle...
But, I'm sure that quote from an out-of-state dealer doesn't account for Illinois taxes.. Illinois taxes the full selling price on a lease.. Over 24 months, that will likely add more than $100/mo. to the payment. Which is why short-term leases aren't usually cost effective in Illinois.
Apr 27, 2007 (10:19 pm)
I just picked up my 07 x3 today. I got the premium package, heated front seats, privacy glass, rear and front sensing system. I am paying $475 a month for a 36 month lease with 12,000 miles (no money down and I paid the taxes upfont).
I think this was a pretty good deal. What do you think?
#1326 of 1854 What should I try for? (Texas)
May 11, 2007 (8:17 am)
I just sent an email to a local BMW dealer (Dallas, TX area). Here is the deal I sent them:
Terms: 36 months / 15k miles
Sale Price: $41,685.75
Down Payment: $2,000
Residual: 65% ($27,933.75)
Money Factor: .002
Tax Rate: 8.25%
Monthly Payment: $563.04
They sent me an email back saying that they can't control the money factor, but that everything else with the offer is fine. They also said that they are running a special for this month with no sales tax. That is a big deal in Texas since sales tax is based on the total sale price instead of the used value.
I have a couple questions:
1. My equifax credit score is 710. What kind of money factor should I expect to be getting?
2. In Texas, to calculate the total lease payment, the tax is based on the sale price only or is it sale price + fees?
3. What kind of fees should I be seeing? I'm guessing just an acquisition fee.
By my calculations, with the no sales tax offer, I should be looking at $461.88/month for this without any fees being accounted for yet.
#1327 of 1854 Re: What should I try for? (Texas) [ejsmith]
by kyfdx@Edmunds HOST
May 11, 2007 (12:28 pm)
1) BMWFS is pass/fail.. if you qualify, the rate is the same... base MF is .00215 this month. Dealers can mark it up, but you want the base rate.
2) Tax is most likely on selling price plus any non-governmental fees (acq.fee, doc fee, etc.) No tax would be a big, big savings. I've heard of TX dealers having tax credits available.
3) Acquisition fee of $625 (dealer can mark this up to $825), most TX dealers charge an inventory tax (it is under $100, I think, registration.. Watch out for document fees, prep fees, dealer fees.. these are all just profit padding.
With the .00215 MF, I get around $471/mo. with a $2000 CAP cost reduction..
If you use the $2000 to pay the upfront costs (1st payment, security deposit, acquisition fee, title), then the payment would be approximately $532/mo.+ tax..
No tax is a huge savings... Tax would be around $70/mo in Texas..
PS: $2000 upfront and $532/mo. is a very achievable deal.. don't let them bump you up any higher.. They are only providing a $1300 discount from MSRP.. They shouldn't have to make any more from the financing..
#1328 of 1854 07 BMW X3 lease and residual
May 21, 2007 (2:10 pm)
I've just ordered a new X3 loaded to the gills. Found an accomidating dealer and have placed an order. Now I'm figuring out leasing terms. This is my first potential BMW lease - but I've leased before and I am familiar with how leasing works.
I only lease for tax purposes. It can help accelerate tax write off of a business luxury car. The alternative is paying cash.
So, here is my question. Right now I'm being told that for a 24 month lease with 50,000 miles per year the money factor is .00215. This translates into 5.16%. Here on this site I've also seen money rates being discussed at .00200 and even someone talking about .000700 or an ultra-low 1.68%. My credit scores are north of 800 (perfect). Lastly the residual buy the car at lease end value that I'm being quoted is about 54% of the negotiated cash price,(remember 24 month at 50K miles per year).
Is this residual in line or should it be different?
Is .00215 the deepest discount money rate BMW offers right now?
Is the $625 "acquisition fee" standard or is it negotiable? BTW does the dealer get part of this?
Do you have any idea how the money rate and or the residual value may change over the next 6 to 8 weeks (the time needed to build and deliver the car)?
#1329 of 1854 Re: 07 BMW X3 lease and residual [newq7]
May 22, 2007 (1:36 pm)
A couple of questions / comments
- Do you really mean 50k miles per year? That's alot.
- Residuals are typically stated as a percentage of MSRP, not the selling price.
#1330 of 1854 Re: 07 BMW X3 lease and residual [joechicago7]
May 22, 2007 (1:55 pm)
Thanks for the correction on Residuals. OK, then as a percentage of the MSRP (Sticker + Dealer installed options) the residual works out to 52.07%.
As for the 50,000 miles per year - yes that is what I mean. I'd buy more if BMW would let me (and have bought more from other manufacturers). Unlike most who lease I'm not concerned about the payments. I'm concerned about total out of pocket cost to "buy" the car. I intend to buy the car at lease end - and want it to have as low a buy out value at lease end as possible. My only reason to lease is that it works better for taxes than does buying for cash and depreciating.
Are my money factor numbers correct? .00215?
BTW - following my having cut a tight deal for as cash purchase, the dealer is trying to recoup profit by bumping the lease money rate. I'm not going for it.
#1332 of 1854 X3 Lease Sf Bay Area
May 26, 2007 (5:49 am)
Just picked up My X3 on a 2 yr lease,
Cap Cost 42710 ( 500 over invoice)
Sale Price ( including Acq fee) 43335
Residual 78% ( 24 months/10000 miles)
Monthly 499.24 ( Money factor 0.00166 with 7 security deposits)
Happy Memorial Day weekend everyone!