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Prices Paid: Buying & Leasing Experiences BMW 5-Series Lease Questions
2604 messages, Last post on Dec 04, 2009 at 7:18 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Hi bimmerbuyer. The lease money factor that you were quoted to lease this car is a little high. BMW Financial Services' current buy rate lease money factor for the 2005 545i is only .00100 for leases up to 42 months in length with the payment of a security deposit. BMW FS' base lease acquisition fee is currently only $625, so it looks as though this dealer is trying to mark that up on you as well. I believe that BMW FS charges a $350 disposition fee, but it will waive it for returning lessees. On the car that you are interested in, a 2005 BMW 545i with an MSRP of $59,520 and a capitalized cost of $54,390, using a money factor of .00100 and a residual value of 59%, I come up with a zero down, pre-tax monthly payment of around $625. Adding a $625 acquisition fee to this cap cost would increase the payment to around $643. Car_man Host Smart Shopper / Prices Paid Forums |
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Hello kevhollywood. The first thing that I noticed about your lease is the large down payment that you plan on making. 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 your 530i would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all. Another problem that I have with this deal is that the money factor that you are being charged on this car is way too high. BMW Financial Services' current buy rate lease money factor on the 2006 530i is only .00175. This means that the dealer that you are working with is marking-up your car's money factor to add additional back-end profit to your deal. This sort of practice is fairly common amongst BMW dealers, but usually can be avoided by comparison shopping or confronting the dealer that you are working with with your vehicle's actual buy rate. Using BMW's actual base lease program for this car and the prices that you provided in your post, an MSRP of $57,990 and selling price of $54,495, I come up with a 36 month, 15,000 miles per year zero down, pre-tax monthly payment of around $704. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: Car_man (Sep 19, 2005 3:30 am) |
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I am looking at a lease on a black on black 545 with... Sport Pkg Premium Sound Cold Weather Pkg Auto trans. Sat Radio Heated Rear Seats Sun shades The dealer is telling me that although the 545 is an outgoing model... that demand is still very high... also the supply is now very limited. With that in mind, what type of amount off of MSRP (around 65k) should I try and negotiate? Based on above messages... I will definitely be sure to get the .0010 money factor. What monthly payment should I be looking at if I can negotiate down to something like 62k)? I am in So.Cal. Thanks! |
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Replying to: alzadol (Sep 20, 2005 9:15 am) Also, you do not need to go into the dealership to negotiate the deal. I have done all of the negotiations and paperwork via phone and email. Being inside the dealership gives them the advantage over it and the negotiations then occur in more of a pressure cooker environment. The phone and email keep things fairer and at arms length.
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Replying to: Car_man (Sep 19, 2005 3:30 am) Thanks.
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Replying to: kevhollywood (Sep 21, 2005 3:03 am) However, if you make a security deposit (your payment rounded up to the next $50 increment), then you can get the same base rate... If you don't make a security deposit, then the base rate is indeed .00190 regards, kyfdx Host-Prices Paid Forums |
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Replying to: 540dude (Sep 21, 2005 2:57 am)
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Replying to: alzadol (Sep 21, 2005 9:29 am) |
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Replying to: alzadol (Sep 21, 2005 9:29 am) It's certainly possible, but dealer exchanges happen all the time. And it's no big deal...someone from Dealer A gets in the car and drives it to Dealer B, trades for the desired car (with a check for any price differential), and then drives back to the original dealership. I did a few for extra $$$ when I was in college (what fun to drive brand new Audis!), but trust me, the expenses are negligible. |
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