- #611 of 2604
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lease 101
by mark1234
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May 01, 2006 (5:53 am)
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Hello,
I am new to leasing but I have been following these posts for a while now. I am looking to lease a 530 xi in the next few months and I do have a few questions for the group:
1) Every post encourages getting the "base money factor", but how can I be sure that's what I'm getting?, i.e. is there any independent verification?
2)The money factor for the 2006 (~.140) is much less than what I have seen for 2007 (~.225). Do those change as the months go on, i.e. is it based on interest rates alone, is is there some supply and demand factor thrown in?
3)Exactly what is negototiable and what is set in stone during the lease process? My understanding is that residual is set by someone else, but what aspects are available for "discussion" with the dealer?
Am looking to lease probably some time in the summer.
Thanks,
mark1234
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- #612 of 2604
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550 leasing
by lopz
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May 01, 2006 (9:18 am)
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Can someone tell me the money factor and residual for bmw 550i on a 24 and 36 month, 15k miles/yr lease?
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- #613 of 2604
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Re: 550 leasing [lopz]
by vsaxena
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May 05, 2006 (5:44 pm)
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Replying to: lopz (May 01, 2006 9:18 am)
Courtsey Tarry at leasecompare.com via bimmerfest
24 mo/15k mi – Residual Value 70% of MSRP – .00225 Base Money Factor Rate
36 mo/15k mi – Residual Value 59% of MSRP – .00225 Base Money Factor Rate
48 mo/15k mi – Residual Value 42% of MSRP – .00310 Base Money Factor Rate
60 mo/15k mi – Residual Value 33% of MSRP – .00310 Base Money Factor Rate
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- #614 of 2604
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Re: BMW 5-Series: Lease Questions [bat20001]
by Car_man HOST
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May 07, 2006 (7:26 am)
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Replying to: bat20001 (Apr 20, 2006 1:41 pm)
Hi bat20001. BMW's actually are often more attractive to lease than they are to finance or pay cash for. This is because BMW often provides lease support but no other alternative incentive like cash or special financing rates on models. This is one of the reasons why nearly half of the consumers who lease certain BMW models lease. Having said this, BMW's lease program on the 2007 5-Series is not very attractive yet. Its current buy rate lease money factor for them, .00225, is equivalent to an interest rate of around 5.4%.
Since you are new to the world of leasing, may want to check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Take a look at them and let me know if you have any specific questions.
Car_man
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- #615 of 2604
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Re: 525i lease 36 month and 15K [poet715]
by Car_man HOST
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May 07, 2006 (7:33 am)
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Replying to: poet715 (Apr 20, 2006 3:46 pm)
Hello poet715. I am not personally all that familiar with what the market is like for the '06 5-Series right now, so you will have to stop by the following discussion for feedback on the selling price that you were quoted: "BMW 5-Series: Prices Paid & Buying Experience". I can tell you if the payment that you were quoted looks right though. According to my calculations, if you were to lease a 2006 BMW 525i with an MSRP of $44,710 and a selling price of $46,470 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 $607. As you can see, the lease payment that you were quoted is quite a bit higher than the one that I came up with. I suspect that the dealer that you are working with is marking up BMW FS' buy rate lease money factor for this car to add additional hidden back-end profit to your deal. BMW dealers are notorious for marking up vehicles' money factors, but you can usually avoid this by telling them that you know what your car's buy rate money factor is and that you want them to use it to calculate your car's lease payment. BMW FS' current buy rate lease money factor for a 36 month lease of an '06 525i is .00175.
Car_man
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- #616 of 2604
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Re: April Lease rates? [ejv]
by Car_man HOST
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May 07, 2006 (7:36 am)
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Replying to: ejv (Apr 24, 2006 7:38 am)
Hello ejv. Your lease payment for this car will depend upon the selling price that you are able to negotiate. Stop by the following discussion to see how much other community members have paid for similar cars lately: "BMW 5-Series: Prices Paid & Buying Experience". If you want to trade your current vehicle in, you are better off having the dealer that you are working with cut you a check for it rather than using the proceeds as a capitalized cost reduction for your lease. If your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears.
Car_man
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- #617 of 2604
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Re: Help Car_Man... [bmw5seriessf]
by Car_man HOST
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May 07, 2006 (7:43 am)
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Replying to: bmw5seriessf (Apr 25, 2006 3:45 pm)
Hi bmw5seriessf. If by 2.6000 you mean that your car's money factor is .00260, it is way too high. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2006 530xi is only .00175. Make sure that this is the factor that is being used to calculate your car's lease payment. In fact, if you were to make additional security deposits, your car's money factor would be even lower than .00175. BMW Financial Services lowers lessees' money factors by .00007 for every additional security deposit that they make after the first.
Car_man
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- #618 of 2604
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Re: Leasing 2007 BMW 530XI [fishbone1]
by Car_man HOST
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May 07, 2006 (7:49 am)
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Replying to: fishbone1 (Apr 30, 2006 4:33 pm)
Hello fishbone1. If you were to lease a 2006 BMW 525i through BMW Financial Services right now for 36 months with 15,000 miles per year, its current buy rate lease money factor and residual value should be .00175 and 59%, respectively. The numbers for an otherwise identical lease of an '06 530i should be .00175 and 59%. For the '07 525i they are .00225 and 60%. For the '07 530i they are .00225 and 60%. Lastly, for the '06 330i the numbers are .00225 and 62%.
Car_man
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- #619 of 2604
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Re: lease 101 [mark1234]
by Car_man HOST
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May 07, 2006 (8:09 am)
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Replying to: mark1234 (May 01, 2006 5:53 am)
Welcome mark1234. You can find out what the buy rate lease money factor aka the base money factor for the model that you are interested in is by asking in this discussion. Either myself, or a knowledgeable community member should be able to help you out. BMW Financial Services' current buy rate lease money factor for the 2006 530xi is .00175, while its factor for the '07 530xi is .00225. There absolutely is a supply and demand factor baked into vehicles' money factors. BMW artificially lowers the money factors of vehicles that it needs to stimulate demand for. That is why the factors for '06 5-Series models are lower than the factors for '07 5-Series models. BMW is trying to help dealers unload their remaining 2006 models. BMW's current lease program is scheduled to run through June 30th. It will publish a brans new lease program for the month of July which may not be the same as its current one. The only factors that are negotiable when leasing are your vehicle's selling price and its money factor (you never can go below the base money factor though).
Car_man
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- #620 of 2604
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Re: 550 leasing [lopz]
by Car_man HOST
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May 07, 2006 (8:13 am)
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Replying to: lopz (May 01, 2006 9:18 am)
Hi lopz. This car's lease program varies depending upon if you want a 2006 or a 2007 model. If you were to lease an '07 BMW 550i through BMW FS right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 70%. The numbers for a 36 month lease of this car should be .00225 and 59%. If you were to lease an '06 550i through BMW FS right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00225 and 68%. The numbers for an otherwise identical 36 month lease of this car should be .00200 and 58%.
Car_man
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