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Prices Paid: Buying & Leasing Experiences BMW 3-Series Lease Questions
3218 messages, Last post on Dec 03, 2009 at 7:31 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Hi atfryar. BMW Financial Services' money factors for leases with 12,000 miles per year are the same as its 15,000 miles per year factors, but its residuals for a 12K lease are 2% higher. Car_man Host Smart Shopper / Prices Paid Forums |
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I am glad that you find this discussion so helpful, Lady A. BMW Financial Services' Owner's Choice program is what is known in the industry as a balloon note program. There is nothing wrong with balloon notes, but they are much much less popular than leases. As a result, I do not personally keep tabs on manufacturers' balloon note programs. Sorry. I can tell you what this car's lease payment would be though if you want. Car_man Host Smart Shopper / Prices Paid Forums |
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Hello zman9. Let's take a look at your deal. The first think that I notice about it is that you are using the proceeds from your trade as a capitalized cost reduction for your lease. There's nothing wrong with trading a vehicle in when leasing, but you would be much better off having the dealer that you are working with cut you a check for your car than using the proceeds from it as a cap cost reduction. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for 330xu would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all. You mentioned that you are being given a $1,200 discount on this car. That's not bad, but given the fact that there is over a $3,200 gap between the full MSRP and dealer invoice price of a base 2006 BMW 330xi I would not be surprised if you were able to negotiate a bigger discount by shopping around. You may want to stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 3-Series: Prices Paid & Buying Experience". Let's calculate a lease payment on this car using BMW's actual base lease program assuming a $2,000 discount and no cap cost reduction from your trade and see what sort of payment we come up with. According to my calculations, if you were to lease a 2006 BMW 330xi with an MSRP of $44,020 and a selling price of $42,020 through BMW Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $577. Car_man Host Smart Shopper / Prices Paid Forums |
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Hi igoose. One of the most important things to remember when leasing is that the selling prices of leased vehicles are negotiable, just as if you were paying cash or financing. I would be happy to give you an idea of what sort of lease payment to expect on this car, but in order for me to do so it would be a big help if you provided me with its full MSRP and an approximate selling price. You can get a good idea of how much you should pay for this car in your area right now by visiting the following discussion: "BMW 3-Series: Prices Paid & Buying Experience". Once you have these numbers, let me know and I will use them to calculate a lease payment using BMW Financial Services' current base lease program for you. Car_man Host Smart Shopper / Prices Paid Forums |
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Hi sj233. You are getting $1,500 off of this car's MSRP, which is a reasonable deal. Another good sign is that the dealer that you are working with is using BMW Financial Services' current buy rate lease money factor for this car, .00250, to calculate your lease payment rather than trying to mark your car's factor up to add additional back-end profit to your deal. I just estimated what your car's lease payment should be like using the prices that you gave me and I came up with a 36 month, 15,000 miles per year, zero down, pre-tax monthly payment of $529. As you can see, this is a little lower than the payment that you were quoted for a similar lease. One possible explanation for this would be if you were having your car's security deposit waived or were rolling BMW FS' $625 acquisition fee rolled into your car's capitalized cost instead of paying it at lease signing. If you are paying both of these items at signing, you need to find out why the payment that you were quoted is higher. Car_man Host Smart Shopper / Prices Paid Forums |
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Greetings luv2run. The selling price that you were quoted for this car is good, but the money factor and acquisition fee are not. BMW Financial Services' buy rate lease money factor for consumers who pay a security deposit at lease signing is currently only .00250. It appears to me as though the dealer that you are working with is marking BMW's base factor up to add additional back-end profit to your deal. This sort of practice is perfectly legal and happens all the time with luxury brand dealers, but it can usually be avoided by confronting the dealer that you are working with with the buy rate or by shopping around. The dealer that gave you this quote is also marking-up BMW FS' normal acquisition fee of $625 by $200. Make sure to negotiate this mark-up out as well. Car_man Host Smart Shopper / Prices Paid Forums |
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Hi speedy19. While dealers can add options or something called ADM (Additional Dealer Mark-up) they cannot pad vehicles' actual MSRPs. The full MSRP, including destination charges, of a 2006 BMW 325i is indeed currently the $31,595 that you were quoted. The selling price that you were quoted looks good to me. It is around $1,000 over invoice. The money factor that you were quoted looks good to me as well. It is in line with BMW Financial Services' buy rate factor for this car. I don't understand how the lease payment that you were quoted is so high though. Using the prices that you were quoted, I come up with a zero down, pre-tax monthly payment of around $422, assuming you pay an acquisition fee and security deposit at lease signing. The dealer that you were speaking with told you the truth, BMW Financial Services charges an acquisition fee of $625 on all of its leases. All consumers must pay this charge at lease signing, unless they agree to an increase in the money factor that is used to calculate their payment to have it waived or add it into their vehicle's capitalized cost. In fact, the dealer that you are working with was being good by not trying to mark this charge up. Many dealers pad it by a few hundred dollars to add additional hidden profit to deals. Car_man Host Smart Shopper / Prices Paid Forums
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Hello ikmarco. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what its selling price is. Car_man Host Smart Shopper / Prices Paid Forums |
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Congratulations on your new car, speedy19. The $350 charge that you mentioned is known in the industry as a lease disposition fee. Many banks charge their lessees some sort of lease-end fee like this. BMW FS will waive this fee for consumers who lease another vehicle through them. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: speedy19 (Oct 21, 2005 9:52 pm) Charles
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