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F10 / F11 (2011 - Current)
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  #1  
Old 06-14-2010, 07:00 AM
NashDawg NashDawg is offline
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535i lease pricing

I am looking at either the 535i or the 535GT for a lease. I have a small window of time to get an order in to get the car produced prior to what is apparently a month off at the plant (sorry folks, I am relatively new to all things BMW).

I am looking for what any of you might have as a fair range of pricing for a lease in the southeastern US, specifically Tampa, FL. I get the distinct feeling that the sales guy I am dealing with is not telling me the truth or is being intentionally vaque, trying to string along the sales process in order to run me up against a deadline to make a final decision.

Simply put, just how much are BMW sales folks allowed to negotiate on the leases? I am being told that BMWFS dictates a 60% residual, which magically is down from 62% when I leased my first BMW 3 years ago. If I wanted to put minimal down and just write as much as possible into the lease, how much should I realistically expect here?

This is what I was quoted -

$56,000 Base Price
875 Destination Chg
550 Paint
1950 Ventilated Seat Pkg
2200 Sport Pkg
1400 Premium Sound Pkg
1900 Navigation

$64,875 MSRP


Then all the leasing calcs take over which they obviously don't have to share with me. Bottom line though is that he is telling me that this equates to a $1044/mo lease pmt which includes tax. He went on to tell me that at a base price of 58k+ my payment would be $945/mo. However, when I go to the BMWNA website and see the following as a lease offer -

Vehicle Registered outside N.Y.
$619 First months payment
$3,500 Down payment
$650 Security Deposit
$725 Acquisition fee
$5,494 Cash due at signing

Even if I were to write the full $3500 down payment back into the lease, rounding up to $100 per month gets me a monthly payment of $719. Yes, there are a couple minor option differences, but why such a big difference in payment?

Is there a dealer or someone who knows leasing enough to give me an idea of what is fair for both sides here?

Many thanks in advance.....sorry for the long post.

Last edited by NashDawg; 06-14-2010 at 08:15 AM.
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  #2  
Old 06-14-2010, 09:31 AM
Newmanium Newmanium is offline
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Sounds like you're new to leasing - there's lots of good posts on this forum explaining the details, might take a bit of work to find them.

Residual - set in stone by BMW each month, not negotiable, is percentage of MSRP
Money Factor (MF) - set by BMW each month, can be marked up by dealer up to 0.0040 (optional, negotiated)
MSRP - set by BMW, non-negotiatble
Sale/capital price - primary negotiable. Find out invoice (probably 4-5k less than MSRP), then make your offer accordingly.
Downpayment - never make a downpayment on a lease, many reasons why, virtually never in your financial interest ("MSD" is a typical replacement, lots of info on forums)


It sounds like your guy is trying to get you to pay MSRP - the lease offers on BMW's website normally have a hidden "dealer contribution" component that lowers the cost accordingly. For best deals, contact a forum sponsor - they generally play very fair and have excellent reputations around here (which is saying something, most of us are picky).

Best thing is to get a lease calculator spreadsheet and play around with the numbers, should be one in this thread:

http://www.bimmerfest.com/forums/showthread.php?t=60089
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Last edited by Newmanium; 06-14-2010 at 09:33 AM.
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  #3  
Old 06-14-2010, 10:49 AM
pwhite52 pwhite52 is offline
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Looks like you are mixing apples and oranges. The base price differential between the 535 and the 535GT is around $7K. The "teaser" rates for the two cars listed on the BMWUSA site are for a pretty minimally optioned vehicle. A minor rule of thumb is that for every $1,000 of option, the monthly payment increases $25. That is only a ballpark figure but its helpful when doing quick estimates. To really zero in on the number use Leaseguide or a similar product. But the best advice is do the homework first.
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  #4  
Old 06-14-2010, 11:04 AM
NashDawg NashDawg is offline
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Yes....

Many thanks to both of you. I forgot to include the fact that I simply am not sure which way I want to go, but I do know that there is a difference in prices between the two.
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  #5  
Old 06-14-2010, 11:16 AM
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TXPearl TXPearl is offline
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Quote:
Originally Posted by Newmanium View Post
...Downpayment - never make a downpayment on a lease, many reasons why, virtually never in your financial interest
Other than the "total loss" situation (very small risk to assume), what are the other reasons?

The upside is interest savings. Given the current lease money factors (i.e. interest rates), it's material, especially compared to what you might otherwise earn by investing the money.
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  #6  
Old 06-14-2010, 11:23 AM
rmichae9 rmichae9 is offline
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Review the dealer feedback section of this forum. I think you will come to the conclusion that you should get out of central Florida to purchase your vehicle, and that purchasing through a board sponsor is very simple and cost effective.
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  #7  
Old 06-14-2010, 11:15 PM
Newmanium Newmanium is offline
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Quote:
Originally Posted by TXPearl View Post
Other than the "total loss" situation (very small risk to assume), what are the other reasons?

The upside is interest savings. Given the current lease money factors (i.e. interest rates), it's material, especially compared to what you might otherwise earn by investing the money.
You save more by doing MSDs that lower the interest, without the total loss risk.

The risk is significant, your down payment essentially disappears should you total the car. 7 security deposits is a much safer place to put your money that also nets you some interest savings.

I suppose you could do both if you're desperate to save some interest money... not worth it for me, MSD is enough.
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  #8  
Old 06-15-2010, 06:01 AM
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TXPearl TXPearl is offline
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Agree on the MSDs. Do that first. Beyond that, assuming you have the disposable Funds, seems like you have to do the math on additional down payments. Current 5 series lease rates make it a compelling option. I don't think there are any absolute rules on this issue.
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  #9  
Old 06-16-2010, 08:26 AM
NashDawg NashDawg is offline
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Does it sound legit that the dealer is trying to charge me a Money Factor of .00245 assuming I have excellent credit? Is money still that expensive in leased vehicles? That is just short of 6% interest, correct?
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  #10  
Old 06-16-2010, 09:14 AM
Nh32010 Nh32010 is offline
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However, when I go to the BMWNA website and see the following as a lease offer -

Vehicle Registered outside N.Y.
$619 First months payment
$3,500 Down payment
$650 Security Deposit
$725 Acquisition fee
$5,494 Cash due at signing


WHAT IS THE MSRP FOR THE ABOVE ADVERTISED CAR? THEN WE CAN COMPARE OFFERS.
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  #11  
Old 06-16-2010, 10:11 AM
NashDawg NashDawg is offline
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The offer I have right now....

He is telling me that the Base Price is $56k for a 535GT.

$56,000 Base Price
875 Destination Chg
1950 Ventilated Seat Pkg
2200 Sport Pkg
1400 Premium Sound Pkg
1900 Navigation
350 Satellite Radio

$64,675 MSRP
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  #12  
Old 06-16-2010, 01:19 PM
Newmanium Newmanium is offline
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Quote:
Originally Posted by NashDawg View Post
Does it sound legit that the dealer is trying to charge me a Money Factor of .00245 assuming I have excellent credit? Is money still that expensive in leased vehicles? That is just short of 6% interest, correct?
Find the base MF in the current lease numbers (look in the "Ask a Dealer" section). This is set by BMW. Your dealer can mark it up by up to 0.004, which is pure profit for him (i.e. negotiable for you).

I just figure out how much the markup is worth in dollar terms to me (approx. 1400 for max markup on a 3-year lease on a $65k lease), and figure accordingly.

Really recommend reading more about leases, all this stuff has been answered many times on here (plus lots of other great tips) if you search. Markup has nothing to do with credit score (although the base MF can supposedly sometimes be higher for sub-standard credit, but that's a recent development).
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Last edited by Newmanium; 06-16-2010 at 01:26 PM.
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  #13  
Old 06-16-2010, 09:34 PM
pharding pharding is offline
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Quote:
Originally Posted by NashDawg View Post
I am looking at either the 535i or the 535GT for a lease. I have a small window of time to get an order in to get the car produced prior to what is apparently a month off at the plant (sorry folks, I am relatively new to all things BMW).

I am looking for what any of you might have as a fair range of pricing for a lease in the southeastern US, specifically Tampa, FL. I get the distinct feeling that the sales guy I am dealing with is not telling me the truth or is being intentionally vaque, trying to string along the sales process in order to run me up against a deadline to make a final decision.

Simply put, just how much are BMW sales folks allowed to negotiate on the leases? I am being told that BMWFS dictates a 60% residual, which magically is down from 62% when I leased my first BMW 3 years ago. If I wanted to put minimal down and just write as much as possible into the lease, how much should I realistically expect here?

This is what I was quoted -

$56,000 Base Price
875 Destination Chg
550 Paint
1950 Ventilated Seat Pkg
2200 Sport Pkg
1400 Premium Sound Pkg
1900 Navigation

$64,875 MSRP


Then all the leasing calcs take over which they obviously don't have to share with me. Bottom line though is that he is telling me that this equates to a $1044/mo lease pmt which includes tax. He went on to tell me that at a base price of 58k+ my payment would be $945/mo. However, when I go to the BMWNA website and see the following as a lease offer -

Vehicle Registered outside N.Y.
$619 First months payment
$3,500 Down payment
$650 Security Deposit
$725 Acquisition fee
$5,494 Cash due at signing

Even if I were to write the full $3500 down payment back into the lease, rounding up to $100 per month gets me a monthly payment of $719. Yes, there are a couple minor option differences, but why such a big difference in payment?

Is there a dealer or someone who knows leasing enough to give me an idea of what is fair for both sides here?

Many thanks in advance.....sorry for the long post.
You are going about this wrong. Negotiate the price first in dollars over US Wholesale Pricing. Then negotiate for the BMW Buy Rate. Do your homework. If you muddle it all together, you will be paying thousands extra. Smart ambitious people pay less. Trusting naive people always pay more.
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04 Successfully lobbied BMW NA and BMW FS to prohibit dealers from using residual values based upon Euro Delivery MSRP and to use US MSRP saving BMW Enthusiasts several thousand dollars on each lease

14 550i Euro Del
14 X3 2.8i
11 550i Euro Del, Retired
08 550i Euro Del, Retired
06 330i Euro Del, Retired
04 545i Euro Del, Retired
01 530i Euro Del, Retired
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  #14  
Old 06-17-2010, 05:06 AM
NashDawg NashDawg is offline
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Location: Tampa
 
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THanks.....

Quote:
Originally Posted by pharding View Post
You are going about this wrong. Negotiate the price first in dollars over US Wholesale Pricing. Then negotiate for the BMW Buy Rate. Do your homework. If you muddle it all together, you will be paying thousands extra. Smart ambitious people pay less. Trusting naive people always pay more.
Believe me folks, I am doing some investigation on this site to bring myself up to speed. Quesiton on this last post though - a reference was made to "US Wholesale Pricing". I know Rase Rate from the Dealer page on the gentleman who posts those monthly along with the MFs, but I have never heard of this "US Wholesale Pricing" spoken of seperately. Is that in fact one and the same as Base Price or is that something I can find out?

Am searching through this site for another spoecific reference to that term. Thanks in advance.
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  #15  
Old 06-17-2010, 07:24 AM
Newmanium Newmanium is offline
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Just another term for invoice.
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  #16  
Old 06-17-2010, 08:08 AM
NashDawg NashDawg is offline
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In other words....

AKA Base Price? I found a thread that had the document removed that listed this info, so I am not sure I have access to it at all.
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  #17  
Old 06-17-2010, 05:10 PM
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TXPearl TXPearl is offline
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Sounds like you're confusing the price of the car (US wholesale -or- invoice) with the lease money factor (base rate).
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  #18  
Old 06-17-2010, 06:45 PM
pharding pharding is offline
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Wholesale Pricing http://f10.5post.com/forums/showthre...=378219&page=2
For the BMW Buy Rate search for LeaseCompare. Tarry Shebasta posts those rates.
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04 Successfully lobbied BMW NA and BMW FS to prohibit dealers from using residual values based upon Euro Delivery MSRP and to use US MSRP saving BMW Enthusiasts several thousand dollars on each lease

14 550i Euro Del
14 X3 2.8i
11 550i Euro Del, Retired
08 550i Euro Del, Retired
06 330i Euro Del, Retired
04 545i Euro Del, Retired
01 530i Euro Del, Retired
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  #19  
Old 06-17-2010, 07:17 PM
NashDawg NashDawg is offline
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Gt

Great info.....thanks ph. Question - do you have that same number for the 2010 GT? I guess it has to slot somewhere in between the 535 and the 550 I would guess, more skewed towards the 550?
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  #20  
Old 06-18-2010, 03:17 AM
pharding pharding is offline
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No I don't.
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04 Successfully lobbied BMW NA and BMW FS to prohibit dealers from using residual values based upon Euro Delivery MSRP and to use US MSRP saving BMW Enthusiasts several thousand dollars on each lease

14 550i Euro Del
14 X3 2.8i
11 550i Euro Del, Retired
08 550i Euro Del, Retired
06 330i Euro Del, Retired
04 545i Euro Del, Retired
01 530i Euro Del, Retired
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  #21  
Old 06-20-2010, 05:48 PM
rich6 rich6 is offline
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my dealer is telling me about 800 with 3000 total out of pocket on a 54000 msrp. Does this sound good
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  #22  
Old 06-21-2010, 02:48 AM
mujjuman mujjuman is offline
tappa tappa toit
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Quote:
Originally Posted by rich6 View Post
my dealer is telling me about 800 with 3000 total out of pocket on a 54000 msrp. Does this sound good
sounds ok to me... but i'm not lease expert. i'm guessing its a base vehicle?
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