BMW 5-Series Lease Questions

Replying to: tuacmxa (Dec 30, 2007 7:36 am)

Hello all, does anyone know what the money factor would be for a first time BMW owner on a 2008 BMW 535i, 36/12K mile lease? I know the base rate is .00225.
How much should it go up if you DO NOT pay a security deposit? I'm supposed to sign the paperwork tomorrow and I need to make sure they are not charging me to much, any help greatly appreciated, thanks in advance!!!

Replies to this message:
• Car_man (Jan 10, 2008 3:25 am)
  • loveandlight (Jan 10, 2008 4:26 pm)
    • sls1 (Jan 10, 2008 5:05 pm) and 3 more...
    • dark_katana (Jan 10, 2008 5:16 pm)
    • Car_man (Jan 11, 2008 2:20 am)

Hello all. As most of you know, I've been active on this forum over the last couple of months providing target numbers and advising on how to get the best deal on a BMW E60. Since I held myself out as a knowledgeable source, I thought it only fair to show everyone how I did with my own new 535xi lease.
 
Ready? Here goes:
 
2008 535xi Space Gray, Black Leather, Dark Poplar Trim
 
Options
ZCW Cold Weather Package
ZPP Premium Package
ZSP Sport Package
205 6-Speed STEPTRONIC Automatic Transmission
322 Comfort Access
496 Heated Rear Seats
591 18” wheels w/performance tires (style 124)
609 Navigation System
610 Head-Up Display
655 Sirius Satellite Radio
677 Logic7 Sound System
6FL iPod and USB Adapter
 
Priority 1 Options
U6SW Black Nasca Leather
453 Front Ventilated Seats
775 Anthracite Headliner
 
Invoice $61,610
MSRP $67,145
Negotiated Price $62,842 (invoice plus 2%)
 
24 month lease/10K per year
Monthly payment $845
 
Nothing down but tax, tag, first month payment and refundable security deposit of $749.
 
Happy New Year to all!
 
Oh, and to the little elves at the BMW Dingolfing Plant--start building my car schnell!

Replies to this message:
• pagelmunda (Dec 30, 2007 3:01 pm)
  • dark_katana (Dec 30, 2007 4:43 pm)
    • pagelmunda (Dec 31, 2007 3:42 am) and 12 more...
• carnaught (Dec 30, 2007 3:07 pm)

Replying to: dark_katana (Dec 30, 2007 2:28 pm)

Replies to this message:
• dark_katana (Dec 30, 2007 4:43 pm)
  • pagelmunda (Dec 31, 2007 3:42 am)
    • dark_katana (Dec 31, 2007 7:39 am) and 11 more...

Replying to: dark_katana (Dec 30, 2007 2:28 pm)

Replying to: pagelmunda (Dec 30, 2007 3:01 pm)

Replies to this message:
• pagelmunda (Dec 31, 2007 3:42 am)
  • dark_katana (Dec 31, 2007 7:39 am)
    • kyfdx (Dec 31, 2007 9:19 am) and 10 more...

Replies to this message:
• dark_katana (Dec 30, 2007 6:15 pm)
  • claire_m (Dec 31, 2007 8:40 am)
    • dark_katana (Dec 31, 2007 8:52 am)

Replying to: claire_m (Dec 30, 2007 5:36 pm)

Hi yourself
 
I'll do a quick back of the envelope for you and show you how this works. Let's leave taxes, tag, bank fee and security deposit out of if for simplicity
    
528i Base Model Invoice--$40,755, MSRP--$44,300
Premium Package Invoice-- $2,095 MSRP-- $2,300
Destination and Handling $775
Total Invoice--$43,600
Total MSRP--$47,375
$5,000 down (Subtract from MSRP)
December lease rate for 528i--24 months/12000k-- Residual 75% of MSRP – .00225 Base Rate Money Factor
 
Buying the car at MSRP gets you a monthly payment calculated as depreciation fee of ($42,375 - $35,531)/24=$285.16 plus
Finance fee of ($42,375 + $35,531) x .00225 = $175.29
 
Total payment of $460.45
 
Unless you live in a very high sales tax state (like me) even factoring in the bank fee and the tax, it sounds like you're getting the car pretty close to MSRP if you only have the premium package as an option. In addition, there is a $1000 cash incentive from BMW to the dealer on the 5 series right now that seems to have gone straight into the dealer's pocket with no credit to you.
 
Try negotiating the purchase price from invoice not MSRP and then apply the lease rate. My target is to get the dealer down to invoice plus 2%--you may not get there, but that's the target to shoot for.
 
It's also always easier to calculate your deal if you pay the tax, tag and bank fee upfront. You shouldn't be rolling the tax into the lease payment anyway since it doesn't make much sense to finance a tax payment.
 
Not to pressure you, but the BMW December lease rate I quoted above is only good through 01/02/2008, so you need to lock in this week.

Replies to this message:
• claire_m (Dec 31, 2007 8:40 am)
  • dark_katana (Dec 31, 2007 8:52 am)