Last post on Dec 11, 2013 at 4:42 PM
You are in the Prices Paid - Buying & Leasing Experiences
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BMW X3, Car Leasing, SUV
#1117 of 1204 Dishonest BMW Corporate Policy
Jun 22, 2013 (7:27 pm)
Recently I saw an internet advertisement for a 2013 x3 28i that was new but had been used as a loaner and therefore had over 8000 miles on it. The Price for the vehicle had been reduced $4855 below the MSRP of $47845 for a sale price of $42,990. This seemed like a great vehicle to lease if I could keep the residual at 57% by returning it with less than a total of 45,000 miles (8,000 existing + 36,000 driven by me). I understood that the price had been reduced because of the miles,but what I cannot understand is if I returned this vehicle at the end of a 36 month lease with less 45,000 miles ( 8000 existing +36000 driven) the dealer stated the residual is not 57%, as it would be with a new car with 0 miles that was driven 45000 miles by the purchaser. Instead through some complex penalty per mile driven prior to purchase the residual would end up being 53%. I confirmed this is a written policy of BMW with a call to BMW Financial. So with one hand the car is discounted and with the other hand the discount is taken away with a higher than "normal" lease end residual value. ????? So dishonest! I expect this from a dealership,but not the written policy of BMW Corporate.
#1118 of 1204 Re: Dishonest BMW Corporate Policy [grok]
Jun 23, 2013 (7:16 am)
Everybody wants something for nothing, first off any car can be leased, and this X3 can be also, however, it will not get the same MF as a new X3 as the one you looking at is not new. So BMW is not being dishonest, its just that you want BMW to treat this X3 as a new one and still give you the deep discount.
#1119 of 1204 Re: Dishonest BMW Corporate Policy [grok]
by kyfdx@Edmunds HOST
Jun 23, 2013 (8:47 am)
There is another variable that you didn't account for.... the loaner vehicle will be more than three years old when you return it... The warranty clock starts ticking when it is put into service... so, it will be worth less than a brand-new vehicle when you return it.... which is why you can't just use the 3yr/45k lease program.
The actual residual isn't really a lower percentage... It's the same percentage as a new one, minus $0.30/mile... (first 500 miles are free)..
So, the residual is reduced by (8000 - 500 ) X $0.30 or $2400 less..
I wouldn't say it's dishonest.. Sounds like it's something that you weren't aware of. 4 or 5 years ago, the residual reduction was only $0.15/mile, and that made the loaners a better deal to lease..
If you are still interested in that vehicle, you might mention to the dealer that he needs to lower the price to make the lease deal competitive...
If it's a current model loaner, then it usually qualifies for most of the current rates and incentives, including money factors and residuals, but you do have to reduce the residual to account for the mileage... no way around that..
#1120 of 1204 What's the latest RV and MF?
Jun 25, 2013 (8:39 am)
What's the latest RV and MF for X3?
would you please let me know for both 2yr and 3yr lease?
#1121 of 1204 Re: What's the latest RV and MF? [braketoolate]
Jun 25, 2013 (2:29 pm)
Hi braketoolate. BMW Financial Services' June buy rate lease money factor and residual value for a 24-month lease of a 2013 X3 28i with 15,000 miles per year are .00127 and 63%.
The numbers for an otherwise identical 36-month lease are .00127 and 57%.
Prices Paid: Buying & Leasing Experiences Forum
#1122 of 1204 2013 x3 28i payment question
Jun 27, 2013 (5:45 am)
My wife and I are looking at leasing a 2013 x3. We have been to one dealer and was quoted on 36month 12k mile lease a payment of 750 a month with 3000 down. This seems extremely high to us. A family member recently leased an x3 for 460 a month same lease terms. Is it unreasonable to lease an x3 with price of 39995 for a payment of 450-475 a month?
#1124 of 1204 Re: 2013 x3 28i payment question [tarusse1]
Jun 27, 2013 (9:17 am)
There are many factors related to lease payments, the biggest factor is credit score, if you do not have top tier credit this will be an issue. Second, put the least amount of money out of pocket, 3K is a lot of money. People shop for price in a lease this can't not be done. Go back and a page or two and see what people have paid for a X3.
If you never leased a car before Edmunds has a wonderful article on how to lease a car, read it.. Get the current money factor (% rate) and residual that BMW financial service is offering by asking on this forum. Having this info will help out a lot when going to the dealer. Also are you negotiating a sale price of the X3? Do not pay MSRP for a lease...
#1125 of 1204 Re: Dishonest BMW Corporate Policy [kyfdx@Edmunds]
Jun 27, 2013 (12:19 pm)
KYFDX:Thank you for your response and effort to explain. It is my understanding the vehicle is being sold as new and under a full 4 year warranty. It is discounted for the miles,but not the warranty. Whoever purchases it or leases it is the first owner and we are still in the 6 month of 2013, so in June of 2016 it would have 45,000 miles and 1 owner and should still have a 1 year warranty remaining ,but that of course is up to BMW as to whether they think the vehicle is able to be warrantied for another year to a new purchaser. It is my opinion that the practice of charging the excessively high penalty rate of .30 per mile is dishonest and the residual is already adjusted if 57% is used rather than 59% for the 12,000/yr I would be adding. In any case,I think this is a bad and unnecessaryily petty policy for BMW that does not create confidence, trust or even meaningful profit for the company.
#1126 of 1204 Re: Dishonest BMW Corporate Policy [flightnurse]
Jun 27, 2013 (12:40 pm)
Flightnurse:Thank you for your response. The vehicle is being sold as new. It is listed under "new" inventory. It is a 2013 vehicle being sold in June of 2013. It is discounted for the miles on it,but not the warranty. It still has a 4 year warranty to any purchaser. I was wiling to have returned it in 3 years putting only 36,000 miles( 59% residual) and to instead use the actual 45,000 mile residual of 57%. I am not ok with paying a .30/mile penalty rate on their miles. It is a vote of no confidence by BMW to be willing to advertize it and sell it as new,but not lease it as such. In June of 2016 it would have 1 owner and 45,000 miles and 1 year warranty remaining, therefore the residual should be 57%.