Last post on Dec 05, 2013 at 8:34 AM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
BMW X3, Car Leasing, SUV
#508 of 1195 RE: Lease X3 2007 [ipip316]
Jul 10, 2007 (2:14 am)
Hi ipip316. The money factor and residual value that you were quoted for the X3 that you are interested in are right in line with BMW Financial Services' current program for it. This is a good thing because it means that the dealer that you are working with is not trying to mark-up BMW FS' buy rate like BMW dealers are notorious for doing.
Now let's take a look at the selling price that you were quoted. The dealer invoice price for the model that you described is $38,535. That puts the selling price that you were quoted at just over $1,000 over invoice. That isn't a bad price for a lease of this model using the buy rate lease money factor. Still, it wouldn't hurt to stop by the following discussion to see how much other community members have paid for similar models lately: "BMW X3: Prices Paid & Buying Experience".
In your post you mentioned that you didn't know what the acquisition fee is. All banks that lease vehicles charge an acquisition fee and individual dealers do not have the authority to waive it. BMW Financial Services' base acquisition for is $625, which is right in line with the fee that you were quoted. This means that the dealer you are working with is being very straightforward with you because BMW dealers are notorious for marking up acquisition fees by a couple hundred dollars.
Prices Paid Forum
#509 of 1195 Out-Of-State Lease
Jun 25, 2007 (2:10 pm)
Does anyone know how I can figure out how the taxes get paid on an out-of-state lease? Like, if I'm in Tennessee, and I lease a vehicle in Texas and bring it back to Tennessee, how does it all work out? Does the dealer handle this? Or do I need to ask Tennessee government officials what the procedures are? Seems like it would be an easy thing for dealerships to handle, but I want to know so there aren't any surprises.
#510 of 1195 Re: Out-Of-State Lease [timmboj]
Jun 28, 2007 (10:01 am)
With neighboring states, the dealder is typically knowledgeable and can handle it all. Otherwise, I think its handled (paid) when you go to get your plates.
I am curious why you'd go to Texas to leave a vehicle if you live in Tennessee.
#511 of 1195 July X3 Lease Rates (Money Factor) and Promotions
Jul 01, 2007 (8:46 am)
Our factory ordered X3 has arrived at the dealership. We were approved for a lease at time of order. I've been told that if lease rates drop by closing, we will be entitled to the lower rate. When will rates be available(or what are) the rates for July 2007?
#512 of 1195 Re: July X3 Lease Rates (Money Factor) and Promotions [newq7]
Jul 05, 2007 (6:35 pm)
BMWFS was offering a reduced rate for returning BMWFS customers for June. I was quoted .0025 at signing in May when I ordered, and the money factor dropped to .0019 in June when I received delivery. They indeed did honor the reduced MF rate. The base rate is .0015, however dealers are allowed to mark it up another .0004. This rate is without a security deposit and saved me over $40 per month on my paymment. Ask your Customer Advisor about it and see if they will be offering this in July as well.
#513 of 1195 Re: July X3 Lease Rates (Money Factor) and Promotions [duaneman]
Jul 06, 2007 (5:31 am)
I'm not a returning BMW customer... do you know what the July money factor is for first time BMW purchasers?
#514 of 1195 My 2007 BMW X3 3.0si SAV lease deal
Jul 07, 2007 (1:00 pm)
I was thrown off by the Acquisition Fee of $625. Dealer told me that this figure was non-negotiable from BMW Financial Services and couldn't be removed. Can anyone shed further light on this? I can still back out of this deal.
36 months/15K mi/yr
2007 X3 3.0si SAV
205 Steptronic auto trans.
A35 Monaco Blue Metallic Paint
LUAD Gray Nevada Leather
ZPP Premium Pkg
761 Privacy Glass
MSRP + Dest. Chg. = 42150
Invoice + Dest. Chg. = 38805
My Price + Dest. Chg. = 39599 ($794 over invoice)
Acq. Fee = 625
Adj. Cap Cost = 40224
Residual = 65%
Base Money Factor =.00215
Discounted MF* =.00166
*Discount MF applies when you make 7 add'l security deposits, which you get back at the end of lease term, for a total of 8 security deposits.
Sec. Dep. ($500 x 8) = 4000
FL Title/License Fees = 369
Base Monthly Payment = 468
with FL 6% tax = $499/month total payment
36 months 15K miles/year
#515 of 1195 Re: My 2007 BMW X3 3.0si SAV lease deal [boetsch1]
Jul 07, 2007 (2:00 pm)
The acquisition fee is standard -- the money goes to BMWFS, I believe. $625 is the base fee, but dealerships are allowed to mark it up to $825. You've got it as low as it can get.
Also... I was curious about the discounted MF with security deposits (and if it's really a good deal or not). For those who are interested, I went ahead and calculated the NPV of the two lease options:
With Security Deposits:
1. Monthly Payment: $499
2. NPV (r=0%): $18,333
3. NPV (r=12%): $16,611
4. NPV (r=20%): $15,592
Without Security Deposits:
1. Monthly Payment: $534
2. NPV (r=0%): $19,603
3. NPV (r=12%): $16,616
4. NPV (r=20%): $14,985
What do those numbers mean? It means... if your money would otherwise sit in a 0% checking account, you're saving almost $1200. If it would be making 12% in the S&P500, you're breaking even. If it would be making 20% in the Russell2000, you'd be losing about $600.
Interesting. Probably a solid deal. Essentially, a zero-risk return of 12%. That's a good deal.
#516 of 1195 Re: My 2007 BMW X3 3.0si SAV lease deal [aepheme]
Jul 07, 2007 (4:11 pm)
Thanks, aepheme! Interesting analysis. I never thought of it that way. My hunch is that the S&P won't return 12% per year over the next 36 months, so making 7 extra security deposit payments seems to be the way to go. I understand if you are a returning BMW customer, you may qualify for an even lower discounted MF of .00151, based on a base MF currently offered at .00251.
I also learned that finance guys use a "magic number" to determine the interest rate of the MF. Basically, take the MF number and multiply by 2400. So the base MF of .00251 x 2400 = 6.02%. The discounted MF for 7 extra sec deps is .00161 x 2400 = 3.8%. On .00151 it's 3.62%.
#517 of 1195 Re: My 2007 BMW X3 3.0si SAV lease deal [aepheme]
by kyfdx@Edmunds HOST
Jul 08, 2007 (10:14 am)
Also.. that zero-risk 12% return is "after-tax", as it directly reduces your lease payment... If you make 12% in a taxable account, your return is likely closer to 8%..