Last post on May 22, 2013 at 5:18 PM
You are in the BMW 5-Series
What is this discussion about?
BMW 5 Series, Car Leasing, Sedan, Wagon
#21 of 3911 Re: 545i leases
by Car_man HOST
Sep 19, 2005 (4:21 am)
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.
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#22 of 3911 Re: 2006 530i lease
by Car_man HOST
Sep 19, 2005 (4:30 am)
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.
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#23 of 3911 Re: 2006 530i lease [Car_man]
Sep 19, 2005 (8:59 am)
Thank you so much Car Man. This information is EXTREMELY helpful. I nearly got ripped off!
#24 of 3911 2005 545 Lease Question...
Sep 20, 2005 (10:15 am)
I am looking at a lease on a black on black 545 with...
Cold Weather Pkg
Heated Rear Seats
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!
#25 of 3911 Re: 2005 545 Lease Question... [alzadol]
Sep 21, 2005 (3:57 am)
I know people who have recently gotten the 545 for about $1500 over invoice. Your dealer is full of crap and is trying to bamboozle you into overpaying. If I were in your shoes, I would call sales manangers at all area dealerships and offer something in the vicinity of $1500 over invoice. I guarantee you, they will sell it to you at that price. The key is to talk to multiple dealers. If you somewhat cannot get into that price range, try dealers who is not in So. Cal. I live in the NYC area and, to save $$, I have sometimes leased cars from dealers outside of the NYC metro area, such as in Central Pennsylvania. Well worth the extra drive if you can save big $$.
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.
#26 of 3911 Re: 2006 530i lease [Car_man]
Sep 21, 2005 (4:03 am)
Car_man, my dealer is alleging that .00175 base rate is only available to returning BMW lessees and that the buy rate for my lease will actually be .00190. Do you know if this true?
#27 of 3911 Re: 2006 530i lease [kevhollywood]
by kyfdx HOST
Sep 21, 2005 (4:20 am)
It seems as though your dealer is bumping up your money factor the required .00015, in lieu of you making a security deposit.. Some returning lessees aren't required to make a security deposit, so he is somewhat correct in the way he worded it....
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
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#28 of 3911 Re: 2005 545 Lease Question... [540dude]
Sep 21, 2005 (10:29 am)
Thanks for the info 540dude. The dealer has come down to $2500 over invoice... for now. Additionally, the .0010 money factor is only for returning customers... unless you put down a security deposit. The thing is... they are telling me that they have to actually trade for this car from another dealier in central Cali... and that they will incur shipping expenses. Is it feasible to think that a loaded 545 black on black is no longer available in LA? Seems strange to me that there are not at least a few left. I have called a few dealers though... have only found one... and it did not have the sport package I definitely want.
#29 of 3911 Re: 2005 545 Lease Question... [alzadol]
Sep 21, 2005 (5:52 pm)
Well you have made some progress but $1500 over invoice is the target. If I were you, I would call Sales Managers at dealers all over the state. You'll get your price. Try dealers outside of car-crazy So. Cal., where demand for the 545 is highest.
#30 of 3911 Re: 2005 545 Lease Question... [alzadol]
Sep 21, 2005 (8:24 pm)
"they are telling me that they have to actually trade for this car from another dealier in central Cali... and that they will incur shipping expenses. Is it feasible to think that a loaded 545 black on black is no longer available in LA?"
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.