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Prices Paid: Buying & Leasing Experiences BMW 5-Series Lease Questions
2606 messages, Last post on Dec 07, 2009 at 2:19 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Hello all, does anyone know what the current money factor for December on a 2008 535i is for a first time BMW owner? Also, can someone tell me if I am getting a good deal on this car? The MSRP is 58,470, includes premium pkg, sport pkg, sport automatic transmission, navigation, satellite radio and ipod & usb adaptor. They said that they would cut me back a check for $3591 to cover my remaining payments on my previous car and that I will also have no sales tax (sales tax credit). And they said that there is $1000 back on the 5 series right now. How should the deal be structured? I was quoted a payment of $915 per month with $0 down. 36 months/12,000K miles per year. Is this a good deal?
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Replying to: loveandlight (Dec 14, 2007 9:21 am) 24 Month – Residual 71% of MSRP – .00225 Base Rate 36 Month – Residual 60% of MSRP – .00225 Base Rate 48 Month – Residual 42% of MSRP – .00295 Base Rate 60 Month – Residual 34% of MSRP – .00295 Base Rate Residuals are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms. Now tell us the Capitalized Cost. That is the negotiated price of the car. It is basically the Invoice Price plus Dealer Markup. It sounds to me like the implication is the dealer is selling you the car at MSRP and then taking $3591 off in the form of a check to you for your remaining lease payments. Check Edmunds for the Invoice price including all your options. I get $53,775 invoice including all the options you listed. The spread between the invoice price and your Capitalized Cost is the most important indicator of how good your deal is. Assuming the $3591 is coming off MSRP, I think that's a pretty good deal even with the $1000 BMW incentive. That being said, the actual lease payment sound very high. And for that reason, I'm inclined to believe that the check for $3591 is being rolled into your payments. Now it's not a good deal at all. Try and get the dealer to give you the numbers without the check to you--that makes it more straightforward. Also, I'm confused by the dealer claiming that a lease involves no sales tax. So far as I know, every state that has sales tax charges sales tax on some aspect of the lease--be it the depreciation or a percentage of the monthly payment. If they didn't charge sales tax, nobody would ever buy a car, they'd only lease. Finally, if you are getting satellite radio and ipod adaptor, I would strongly recommend the Logic7 Sound System (option 677). It's one of the best sounding factory systems available when tweaked right.
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Replying to: dark_katana (Dec 14, 2007 11:17 am)
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Replying to: loveandlight (Dec 14, 2007 11:51 am) Are you in Texas?
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Replying to: kyfdx (Dec 14, 2007 12:28 pm)
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Replying to: loveandlight (Dec 14, 2007 12:38 pm) Not paying sales tax is a huge savings in Texas, as they charge tax on the entire selling price of the vehicle... the savings on a $60K car could be as much as $100/mo. on a lease.
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Replying to: kyfdx (Dec 14, 2007 12:48 pm)
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I am being quoted at .26 money factor on a 2008 535i for 36 months 12K per year and I am a first time BMW owner. Is this a good rate? I asked for .00225 and he said since I am paying $0 down and no security deposit, I have to pay a higher money factor of at least .24. Is this correct?
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Replying to: dark_katana (Dec 12, 2007 9:16 am) MSRP: $60,320 (prem, nav, logic, satellite, ipod, comfort, cold weather) Invoice: $55,475 Selling price: $56,584 (2% over invoice - thanks dark katana) Money factor: 0.00235 (down from .00245. Base rate is .00225) Final money factor: 0.00186 (used 7 multiple security deposits which reduced the rate by .00049 (7 x .00007)). I get the deposits back at end of lease = 10% ROI per year and no taxes on the deposits - again, thanks dark katana. Residual: $37,398 (62%) Acq fee: $825 (could not get them to come down to $625) Terms: 36 months / 12K miles Cash due upon signing: $6917 (msd x 8 = $6000, + title fees = $111, + doc fee = $58, + 1st month payment = $748.74). I get the $6000 back at the end of the lease. Monthly payments = $748.74 Thanks to smithsonga and dark katana for getting me to walk away, arm myself with knowledge, and play the dealers against each other. They saved me thousands. This deal is a far cry from where I started. A little work and persistence paid off, and the deal still only took 1 week. Once I get the $6000 back at the end of the lease, the total out-of -pocket for a 3-year lease = $27,124 ($748.74 x 36 + $111 + $58, the acq fee is rolled into the monthly payments). Pretty damn good for a 535xi with those options. The original deal I negotiated, which I though was pretty good, had a 3-year out-of-pocket of $30,680 + title and doc fees. So the difference comes out to $3725 that I would have lost if I did not walk away from that original negotiated offer. |
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Replying to: loveandlight (Dec 14, 2007 12:53 pm) On top of that, he's adding back some (but not all) of the cost of the $3500 you're getting back on to the Cap Cost which means you are essentially leasing a car that invoices for $53,775 for $59,300. It's nice that you get $3500 back, but you could have easily gotten more than $3500 off of MSRP when combined with BMW's $1000 cash incentive. Also, the money factor is very high, equivalent to 6.24% per annum when the standard money factor on a 36 month 535i lease is 5.4% per annum. The dealer ends up giving alot of money back to you in cash, but he would take the same amount off of MSRP (probably more) and then there would be no finance charge on the money you get back. The bottom line is that you are paying more than MSRP for this car combined with a higher money factor.
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