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What's your best Money Factor (MF) on a 2011 35d?

4K views 7 replies 5 participants last post by  arjuno 
#1 · (Edited)
I have a 35d on order and I had planned on financing it. After reading a little about MSDs on this forum and other places, I'm considering leasing. I've never leased a car and I'm trying to get more educated about them before I broach the subject with my CA.

What I'm looking for right now is what is the best money factor (before any MSD) that anyone has received from a dealer on a 2011 X5 35d?

BTW, here is a really good article that clearly explains MSDs (and the awesome advantages ED which doesn't apply to the X5 of course):
http://www.fatwallet.com/forums/finance/810458

Thanks!

Edit: I see that the same question was posed in another thread, http://www.bimmerfest.com/forums/showthread.php?t=442657&page=2 , while I was writing up mine. Hopefully we'll get more visibility here.
 
#3 ·
Current X5 Base Rates

Barb,

These were posted last Friday (April, 09): http://www.bimmerfest.com/forums/showthread.php?t=446467

2011 BMW X5 xDrive35d Diesel
24 Month - Residual 61% of MSRP - .00240 Base Rate
36 Month - Residual 54% of MSRP - .00240 Base Rate
48 Month - Residual 43% of MSRP - .00240 Base Rate
60 Month - Residual 34% of MSRP - .00240 Base Rate
 
#4 ·
Barb,

These were posted last Friday (April, 09): http://www.bimmerfest.com/forums/showthread.php?t=446467

2011 BMW X5 xDrive35d Diesel
24 Month - Residual 61% of MSRP - .00240 Base Rate
36 Month - Residual 54% of MSRP - .00240 Base Rate
48 Month - Residual 43% of MSRP - .00240 Base Rate
60 Month - Residual 34% of MSRP - .00240 Base Rate
Is that the buy rate, or the 'MSRP' for MF that you'd get from a dealer that you should 'work down from' (in other words, .0004 over the buy rate)? I want to know what MFs people are actually being offered by dealers.

Why? I've negotiated a cash price for a car I've ordered and I'm considering changing to a lease. I want to do as much as I can to make sure that they don't make one extra penny off of the deal, so what I really need to know is the buy rate.
 
#7 ·
Barbja, one more thing, Texas tax laws are very unfavorable to leasing. Google specifically the tax issues when it comes to leasing cars in Texas. You have to pay the -full- sales tax of the car up front, unlike a leased car in other states. Now if you plan on buying the car at lease-end then there is a specific clause in the tax law that exempts you from paying tax on the car again as long as you can prove you paid full taxes on that specific car.

I agree with the above poster, lease rates for diesels aren't the best. Best to buy the car, especially in Texas when you couple the tax laws into the mix.
 
#8 · (Edited)
Barbja, as far as the residual/buyrate, LeaseCompare figures on these forums for the 2011 35d are incorrect. They have 54%/.0024 as the buy rate for BOTH 2010 and 2011 36/15k mile lease. My CA is extremely reliable and transparent when it comes to this. For 2011 which is what you ordered, the residual/buyrate is 54/.0025 respectively (you can search the forums under 2011 35d lease rates). Almost everyone back then was verifying (in various 35d related threads) the .0025 as the best rate buyrate they could get before the 2011 rates were published recently. There is something else I need to add, if you fall into the Super Elite Credit tier (FICO>740), the buyrate drops to .00235 ONLY for the X5 35d (vs the 35i and 50i) which is more favorable than the incentivized or captive rate (published).

My CA (Will Shaw, and I believe you already spoke to him some time ago) explained the reasoning behind this, but it all went over my head at the time. BMW has a standard rate, and also the captive or incentivized rates (published). The incentivized or captive lease rates are the rates established for anyone with a FICO>620. Sometime for certain models these rates fall below the BMWFS standard base rate (good example is the X5 35i and 50i). He said that for my 50i, the SEC tier or standard was actually a little bit higher than the incentivized .00195 buyrate that I am getting, so I obviously locked in with the lower rate and then lowered it further to .00146 with max MSDs. I'm hoping that the captive lease programs adjust lower in Q2, so that I can lock into those rates before my pick-up in June. The incentivized or captive rate for the X5 35d (anyone with a FICO>620) is .0025, but the better rate is the standard rate for people with a FICO>740 which is .00235.

Now as far as negotiating, if you decide to go ahead with the lease, you want the buyrate (.0025 or .00235 if your FICO>740 on your 35d). Your dealer can give you that or he may add all the way up to .0029/.00275 (max), usually most deals fall somewhere in the middle between buyrate and the max dealer MF. Dealer can also mark-up the acquisition fee from the standard of 725 a few hundred more, and there is also the junk "doc" fee. Usually a reasonable one is somewhere between 50-80, but I've seen doc fees in the hundreds (300-400). Most dealers WILL be looking to making a little extra on a lease (through the various things I mentioned) vs the negotiated price for a car you are going to finance where are you just worry about negotiating their profit over "true" invoice.
 
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