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BMW 7-Series Lease Questions

599 messages,  Last post on Apr 17, 2013 at 3:13 PM

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What is this discussion about? BMW 7 Series, Car Leasing, Sedan

Messages Page 2 of 61

#5 of 599 Re: End of Lease 745Li by Car_man HOST

Nov 06, 2005 (11:38 am)

This certainly is an interesting situation, Steve. Even though I am sure having so many problems with your 2002 7-Series was really annoying, you are making out now by being able to buy your '04 model for the price of an '02. I'm surprised that BMW Financial Services would let this happen. I guess that's the price that BMW has to pay for selling you a messed up car in the first place. It sounds to me as though your dealer is willing to do a pass through so to speak and help you avoid paying sales tax on your 7-Series twice if you decide to sell it on your own for a $500 fee. While this technically really is not legal, this sort of thing happens all the time. If you can find a buyer who is willing to pay you substantially more for your current car than the dealer is willing to give you for it as a trade, this sort of deal might be worth your while.
 
Car_man
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#6 of 599 Re: End of Lease 745Li ... Sltools .. by rroyce10

Nov 07, 2005 (4:22 pm)

Replying to: sltools (Nov 02, 2005 4:18 am)
.. **The lease remained in place and the residual value on the lease was left as that established based on the 2002 745Li 48 month (residual $45K). The 2004 has a much higher trade-in value than the residual -- They have offered $52,750 as the trade-in value**
 
        Your right .. this is a very interesting and "rare" situation ...... keep in mind the dealer has nothing to do with the lease .. it's between you and the lease company ... just make sure BMWF agree's with all of the figures and the residual is in play from the 02, etc etc ....
 
        As far as the trade figure (depending on the miles, color and the condition) $52,750 is a little on the low side ....
 
       Me personally.? .. I would run this dude down Retail Rd .. get with the detail gods, finish any service and run a big fat Ad, the Milwaukee area does big $$ on the big imports ..... $59,900 *asking* and wave bye bye at the first $57,9/$58,9 ... it's a rare situation you're in, you might as well take advantage of it ...
 
                                      
 
                                     Terry

#7 of 599 750Li confusion/ lease questions by enemeneminemo

Nov 17, 2005 (5:51 pm)

hello car_man
I have several questions if you dont mind...
  
First, I am looking to lease a 750Li BMW with the luxury seating and entertainment packages; with the 19 inch tires. I was curious to know if you could work up a sample lease payment for me. I am interested in leasing for approximately 36 months 12000 miles a year. I am not sure exactly what the buy rate lease money factor is or what the residual value percentage would be. To be honest I am not sure how I would go about finding out what these values are.
  
Secondly, are there any significant benefits to getting the sports package - if you buy the 19 inch wheels and are looking for a vehicle with a smooth ride. I am not sure exactly sure what the sports package adds-does it give the car more horsepower? Maybe this option isnt for me.
  
It sounds like negotiating approximately 3000 dollars off the msrp is about as good as i am going to get on this vehicle?
  
I am assuming tax on the car is not included in the msrp price and will factor in when the lease payment is determined--therefore i am wondering if it is better to lease a car in another state with lower sales tax rates.
  
Are there other tricks I should look out for when negotiating the vehicle's price? ie will the dealer try to decrease the residual value in the calcualations or add other unnecessary charges? Does it cost more if they have to order the car for you?
  
sincerely appreciated....

#8 of 599 Re: 750Li confusion/ lease questions [enemeneminemo] by Car_man HOST

Nov 21, 2005 (5:01 am)

Replying to: enemeneminemo (Nov 17, 2005 5:51 pm)
Hi enemeneminemo. I'd be happy to answer your questions for you. I can give you an idea of what this car's lease program is like right now, but I cannot estimate what its lease payment should be without knowing what its full MSRP and selling price are. If you were to lease a 2006 BMW 750Li through BMW Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 60%, respectively.
 
The following discussion would be a better place for you to discuss the merits of various options for this car: "BMW 7-Series".
 
$3,000 below MSRP is probably around $1,000 to $1,500 over dealer invoice, which is a reasonable price for this car. You're right, sales tax is not included in vehicles MSRPs. Unfortunately, you will not benefit from leasing your vehicle in a state that has a lower sales tax rate than your home state does. States prevent this sort of thing from happening by forcing consumers who purchase out of state to pay their home state's sales tax rate when they go to register their vehicle.
 
Dealers do not have the authority to alter vehicles' residual values. They do however often have the authority to mark-up vehicle's money factors to add additional back-end profit to deals. Make sure that the base money factor that I mentioned earlier is being used to calculate your car's lease payment.
 
While vehicles that are ordered do not cost any more, dealers prefer to sell vehicles that they already have in stock and are usually willing to discount vehicles that they already have more than one that they will have to order.
 
Car_man
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#9 of 599 thanks car_man by enemeneminemo

Nov 21, 2005 (12:26 pm)

thanks so much for all your helpful advice--
 
i think your advice about making sure the dealership is using a fair lease money factor is an important point that many people who are leasing cars probably dont even know or think about.
 
thanks again

#10 of 599 Any advice car_man? by enemeneminemo

Nov 25, 2005 (12:03 pm)

I recently spoke with a BMW dealer here in the Los Angeles area and was very specific with him about the type of packages I wanted with my BMW--(luxury seating, 19 inch wheels, and premium sound package). He stated he could call around to see if there were any cars with my exact specification, but went on to mention that he had a car on the lot with all of my specifications plus a few more additions that would bring the price up a couple of thousand -- from the approximate 81 000 msrp that i calculated to about 83 000.
 
The best he could do was offer me a car 2000 dollars below the msrp and he offered a money factor of 0.00265 with a car residual value of 61% on a 36 month 12000 miles a year lease.
 
Is this a fair deal? Is the dealership able to compromise on the money factor to the 0.0025 rate that you quoted earlier? Do you think it is unreasonable to ask for 3000 below msrp on a 81 000 -83000 car?
 
Lastly, does it make more sense to put more money down or the least amount of money down when leasing? Is this down payment also negotiable? I do not plan on purchasing the car at the end of the lease.
 
Thanks again for your help car_man

#11 of 599 HELP ME AVOID THE DEALER TRICKS by enemeneminemo

Nov 28, 2005 (3:59 am)

Other than making sure the dealer uses the .0025 money factor and the 60% residual value on a 3 yr 12000 mile a year lease, are there any other tricks or add on prices I should be aware of?
 
Is this time of year a good time to negotiate or might there be a better time?
 
What is a reasonable negotiable price over invoice i should ask for?
 
thanks alot
any help would be appreciated

#12 of 599 Re: thanks car_man [enemeneminemo] by Car_man HOST

Dec 07, 2005 (4:41 am)

Replying to: enemeneminemo (Nov 21, 2005 12:26 pm)
You're very welcome, enemeneminemo. I'm glad that I was able to help you out.
 
Car_man
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#13 of 599 Re: Any advice car_man? [enemeneminemo] by Car_man HOST

Dec 07, 2005 (4:49 am)

Replying to: enemeneminemo (Nov 25, 2005 12:03 pm)
Hey enemeneminemo. I am not personally all that familiar with what the market is like for the BMW 7-Series right now. I can tell you that a base 2006 BMW 750i has a spread of over $6,000 between its MSRP and sealer invoice prices. As you can see, there is a lot of room to negotiate the deal that you were quoted. The fact that you are in near Los Angeles definitely works to your advantage. There is a lot of competition between dealers in your area. I would comparison shop with a few dealers to make sure that I was getting the best possible price if I was in your situation. You may also want to stop by the following discussion to see how much other community members have paid for similar cars: lee_w, "BMW 7-Series: Prices Paid & Buying Experience" #, 10 Aug 2004 5:46 am.
 
As far as the money factor goes, you need to pay a security deposit equivalent to your car's monthly payment rounded up to the nearest $50 increment to get the factor that I mentioned earlier. Your car's factor will be slightly higher if you opt to have your security deposit waived.
 
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 7-Series would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.
 
Car_man
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#14 of 599 Re: BMW 7-Series: Lease Questions [Car_man] by 9284life

Feb 04, 2006 (10:06 pm)

Replying to: Car_man (Aug 31, 2005 3:13 am)
Hello Car_man!
 
I have a couple of questions regarding a 2005 745Li that I am in the process of trying to lease. The asking price for the car is $66,989 and car is Orient Blue Metallic with Beige Leather and has the convenience package, luxury seating package, premium sound package, heated steering wheel, rear & sid sunshades, satellite radio, and 19 inch wheels. What price should I negoiate as the lease price?
 
What would be a good lease money factor for this car and what should the residual preentage be?
 
Thanks in advance for our assistance.

Messages Page 2 of 61

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