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Prices Paid: Buying & Leasing Experiences BMW 3-Series Lease Questions
3220 messages, Last post on Dec 06, 2009 at 8:11 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Greetings LadyA. A base 2006 BMW 325i has about a $2,500 spread between its full MSRP and dealer invoice. You are being given a discount of $880 on the car that you are interested in. I am not intimately familiar with what the market is like for this car in your area right now, but if there is a decent level of competition for your business, there is a good chance that you can get this car for less than the price that you were quoted. For more feedback on '06 BMW 325i pricing, make sure to stop by the following discussion: "BMW 3-Series: Prices Paid & Buying Experience". Another problem that I have with this deal is the length of this lease. Sixty months is way too long to lease any car for. A lot can happen during the course of five years, your family situation could change causing you to need a bigger vehicle, your commute could get longer causing you to exceed your mileage limit, etc... Furthermore, BMW's special lease programs are only available for leases up to 42 months in length. If you lease for any longer than that, you have to use BMW Financial Services' standard lease money factor. Let's calculate a 42 month lease payment on the exact car that you are interested in using BMW's actual October lease program and see what we come up with. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $36,680 and a selling price of $35,800 through BMW Financial Services right now for 42 months with 12,000 miles per year, its zero down, pre-tax monthly lease payment should only be around $512. As you can see, the lease payment that you were quoted for this car is too high. I definitely would shop around if I was in your situation. Car_man Host Smart Shopper / Prices Paid Forums
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Hi flagatorfan. The salesperson who you spoke with was correct. They were talking about BMW Financial Services' multiple security deposit program. BMW FS will lower its lease money factors for consumers who pay additional security deposits. Specifically, it allows consumers to make up to 5 additional deposits, providing a .00005 money factor reduction for each one, for a total possible reduction of .00025. This is a much better way to lower your lease payment than making a down payment if you have the money. In most areas, you should be able to do better than only $500 off of MSRP on the car that you are interested in. Stop by the following discussion to find out how much other community members have paid for similar vehicles lately: "BMW 3-Series: Prices Paid & Buying Experience". For now, I will estimate this car's lease payment for you using the price that you were quoted and BMW's actual October lease program. According to my calculations, if you were to lease a 2006 BMW 325i with an MSRP of $34,495 and a selling price of $33,995 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 $480. With a $1,000 discount, the payment for an otherwise identical lease would drop to around $465 and with a $1,500 discount it would drop to around $450. Car_man Host Smart Shopper / Prices Paid Forums
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Hello cece3. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. It is very important for you and your husband to find out the exact selling price of the car that you are interested in. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without the selling price, not only is it difficult to tell how much of a discount you are being given but it is next to impossible to calculate what your car's lease payment should be. In fact, in October BMW is providing $1,500 dealer cash on the 2005 325 Convertible. This money will help you to negotiate a very attractive selling price for the car that you want. Make sure to take it into account during your negotiations. If you let me know what this car's selling price is, I would be happy to give you my opinion on the deal that you were quoted and estimate a lease payment on this car using BMW's October lease program for you. Car_man Host Smart Shopper / Prices Paid Forums |
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| Does anyone have october lease #s for the 330i? Looking for residual and mf for 2006 330i, 12k/year. September base #s were 62%, 0.0025 | |
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I got an offer from a dealer where I live for a brand new 05 330ci MSRP 43,545 Offered it for 38,900 24 Month Lease 59% residual .0031 Money Factor 12,000 Miles/year It looks like he tried to pass off a good looking price while trying to get his money back on high lease rates. Is 59% good for a new car at 24 months?
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Replying to: passntime (Oct 04, 2005 10:44 am) To answer your question about 59%, that's a pretty middle of the road residual for 24 months, considering it is the very end of the model year. You might also want to look at a 36 month lease on that car since the 12k miles/year residual is 54%. Your payment will probably be $125+ less on a 36 mo. BTW, residual values are not negotiable. They are set by the bank and represent the lease-end value. |
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Replying to: passntime (Oct 04, 2005 10:44 am) In September, the BMWFS buy rates were: 330Ci Coupe Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms 24 mo/15k mi – 57% Residual Value – Money Factor .00260 Base Rate 36 mo/15k mi – 52% Residual Value – Money Factor .00260 Base Rate So your residual was right but the MF was being jacked up. The October rates may be higher. From a value perpective, a 3yr lease looks better than a 2yr lease on this car. |
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I am looking at a lease on an '06 325i, premium package with xenon headlights. MSRP: $37,120 -- can buy the vehicle for $36,715 (only giving $800 off list price). After dealing with several dealers this is about the going price in Tennessee. My lease is as follows: 36 months; 15,000 miles down payment of $1112.33 Residual value of $22,643.20 Money Factor: 0.0325; residual of 61% (I'm not sure what that means). The salesperson has quoted my payments as $597.80 = tax of $41.85 for a total monthly payment of $639.65. Is this in line with BMW's October lease program? Please contact me as soon as possible as I am probably buying this week. Thanks.
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Hi petesamprs. You don't by any chance play tennis do you  > If you were to lease a 2006 BMW 330i through BMW FS in October for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 63%, respectively. Car_man Host Smart Shopper / Prices Paid Forums
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Hello passntime. 59% is not a very attractive 24 month, 12,000 miles per year residual value, but the dealer that you are working with does not have the authority to alter BMW Financial Services' published residual value for this car. It can however mark up its money factor. BMW FS' buy rate lease money factor for a 2 year lease of a 2005 330Ci is currently only .00260 with the payment of a security deposit and acquisition fee. It definitely looks as though the factor that you were quoted is being marked up. BMW's lease program on the 2006 330Ci is actually much more attractive right now at .00150 and 69%. If you can negotiate a reasonable selling price on an '06 model that would be the way to go if you want to lease. Car_man Host Smart Shopper / Prices Paid Forums |
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