Last post on May 07, 2013 at 11:17 AM
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BMW X3, Car Leasing, SUV
#516 of 1097 Re: My 2007 BMW X3 3.0si SAV lease deal [aepheme]
Jul 07, 2007 (5:11 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 1097 Re: My 2007 BMW X3 3.0si SAV lease deal [aepheme]
by kyfdx HOST
Jul 08, 2007 (11:14 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%..
#518 of 1097 It pays to buy in volume
Jul 14, 2007 (9:11 pm)
So my search to replace my wife's 2000 Mazda Protege ES (88,000 miles) began about a few weeks ago. We've outgrown the car as we now have a happy, healthy, & beautiful, 9 1/2 month old baby boy. She hit a pothole (must have been a landmine) and blew out 2 tires (OK, it happens).
The next day she goes to go to work and the car is dead (OK, maybe they left the door open while they were working on the car at the tire place). AAA comes and gives her a jump. The AAA guy says the battery is deader than dead and she shouldn't turn on the AC or radio, just go and get that battery replaced right now (Its possible, the battery is 4 years old.
She goes to sears to get an new battery and they guy tells her that the Alternartor isn't charging and the car is running on pure battery power.
She goes from sears to a trusted mechanic who tells her the alternator is shot. Not a problem as she has an extended warranty that covered the car until 7/13/07. A new alternator set me back only $50 (hey, at 7 years the alternator should be replaced.
A few weeks go by without a hiccup and my wife calls me at work and tells me her car isn't feeling good. I drive it and it keeps hesitating on the highway between 3rd & 4th gears.
We bring it to the Mazda dealer. He tells me they can't road test the car to see if there is a transmission problem because the timing belt tensioner is loose and must be replaced. The extended warranty company won't pay for a new tensioner unless a compression test is performed. They want me to pay for everything in advance and then IF the car passes a compression test, they'll pay for the tensioner (well over $500).
That's when I decide they are going to drag their feet and fight me until the warranty is up so I decide to throw the towel in and get my wife a new car.
First I looked at an '07 Accord EX-L V6. I liked it, she didn't. She said there are too many of them on the road and too many old people in our condo complex drive and Accord. The 3 year lease on an '07 (with a new body style coming out soon) were almost too good to pass up.
Then we checked out the CR-V EX-L NAVI. She liked it because of the amount of interior space, I didn't because I felt like I was sitting on a toilet and with the AC running there was a distinct lack of power.
I saw an ad on the VW website for a cheap lease on a Passat Wagon. OK, this thing really isn't bad looking and leasing a VW means I don't have to worry about it. We emailed a close dealer who gave me all pricing in her reply including residual, sticker price, selling price, & .00006 money factor (yes that is 4 ZEROS). It was Saturday and she told me the rates were changing on Monday. Well, the lease rate changed from .42% to 2.4% which is still cheap but made the payment jump $44 per month due to VWs crummy residual value. Suddenly the Passat Wagon that we drove and both loved was too expensive (at $400 per month it was a decent deal, at $445 it was expensive). We leave the dealership almost heartbroken.
While all this is going on, I'm negotiating a lease for my Dad on a new '07 X5 3.0si as the lease on his current '04 X5 3.0iA is set to expire. I made a great deal for $1000 over invoice with base mf and acq rates on a 30 month, 50,000 mile lease.
After he faxed all the paperwork in, the salesman at Wide World of Cars in Spring Vally, NY calls my Dad at work to get a deposit so he can go ahead an order a truck for him.
My Dad tells the guy: "Listen, I'm buying this X5 from you for August delivery and the lease is up on my wife's '05 530i at the end of December. My son is interested in an X3, call him here at work tomorrow and make him an offer he can't refuse.
So we found a lightly optioned (Metallic Paint, Heated Seats, Privacy Glass, & 18" wheels) 2007 X3 3.0si. $471 per month with a $0 Cap Cost reduction including tax for a 36 month/15,000 mile per year lease with only first month, security, DMV fee, & bank fee due at signing.
Sorry for the long post, but after being a HUGE BMW fan for many years, I'm finally going to have one to call my own (as long as my wife isn't using it)!
#519 of 1097 Re: It pays to buy in volume [nyccarguy]
Jul 15, 2007 (6:06 am)
What a saga! Glad your wife is finally in a good car. How much over invoice did you pay for the X3 (and you Dad pay for the X5)?
#520 of 1097 Re: It pays to buy in volume [aepheme]
Jul 22, 2007 (7:29 pm)
We got the X5 for $1000 over invoice which is a very good price considering the car has been out for less than a year and is selling pretty well.
I'm not entirely sure how much over invoice the X3 is (I'll let you know when I pick the truck up).
#521 of 1097 07 X3 lease
Jul 30, 2007 (11:06 am)
Please give me your thoughts, thanks!
I sent an email to my local dealership re: 07 X3 with metallic exterior, premium package, xenon adaptive headlights, privacy glass, steptronic engine and lojack (don't want it but that's the package) for $42,950 MSRP.
Here's my numbers:
$39,735 Cap cost
65% residual ($27,917.50)
Money factor .00215 (base rate)
Payment = $473.72/mo. + CA sales tax (approx. $510/mo. total) with BMWFS
Due at inception: 1st payment ($510), security deposit ($550), title/license/registration fees (approx. $200)
Total due at signing approx. $1260.00
Here's the reply from the dealership:
The invoice of the X3 that you inquired on is actually $40,015 (I am happy to show you the invoice when you come in) and your selling price is $40,500. If we roll the bank fee to lower your drive offs your payment goes up. So here is what I have:
36 month 15k miles per year $535.15 + tax $576.62 with $576.62 drive offs.
I said the numbers are too far apart with my numbers and was hoping she would respond with numbers closer to mine. But she didn't want to get my business.
Is my numbers too low for the car with all the options I wanted? I was hoping to make a lease by end of July, but looks like it won't happen.
#522 of 1097 Re: 07 X3 lease [minote]
by Car_man HOST
Aug 24, 2007 (2:34 am)
Hi minote. There is probably around a $3,400 spread between the full MSRP and the dealer invoice price of the X3 that you are interested in. The $3,215 discount that you are shooting for would be an excellent price. The price that the dealer countered with is probably around $1,000 over invoice, which isn't terrible but can probably be beaten in areas that have a lot of competition. Make sure to stop by the "BMW X3: Prices Paid & Buying Experience" discussion to see how much other community members have paid for similar vehicles lately.
Prices Paid: Buying & Leasing Experiences Forum
#523 of 1097 Next month deals?
Jul 30, 2007 (4:08 pm)
A local dealer in LA told a friend that they were going to be having great deals on X3s next month. Is that all BMW dealers, or does this sound like a special that the dealer is doing on their own?
#524 of 1097 Re: Next month deals? [pjo1966]
Jul 30, 2007 (6:09 pm)
Hi pjo1966, would you let me know which dealer in LA that will be having a great deals on X3s? Thanks, minote.
#525 of 1097 Re: Next month deals? [minote]
Jul 31, 2007 (12:31 pm)
It was Nick Alexander. Personally I've had nothing but bad experiences with them. I might give them another chance as they fired the last salesman I dealt with.