# June 2016 Residuals, Incentives and Money Factor



## Michael @ BMW Seattle (Mar 5, 2016)

As I mentioned, it's not dealer specific , it's not public.


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## gators05209 (Jun 2, 2016)

New to the forum. Thank you to all those that contribute. Site has been a huge help toward my journey as a first timer. 

Does anyone know the current MF/residual for 36mo/15k on a 2016 428i gran coupe? 

Also, is the lease acquisition fee locked at $925, or is this negotiable? Thank you!


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## Michael @ BMW Seattle (Mar 5, 2016)

gators05209 said:


> New to the forum. Thank you to all those that contribute. Site has been a huge help toward my journey as a first timer.
> 
> Does anyone know the current MF/residual for 36mo/15k on a 2016 428i gran coupe?
> 
> Also, is the lease acquisition fee locked at $925, or is this negotiable? Thank you!


59% for the residual, MF from 0.00138 to 0.00178 as posted by other 'Fest members, and the acq fee is non negotiable, by can be waived with a 0.00050 adder to the rate.

Michael


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## bagspacked (Jan 11, 2016)

gators05209 said:


> Also, is the lease acquisition fee locked at $925, or is this negotiable? Thank you!


If you do the math, waiving acquisition fee for higher MF is usually not in your favor...


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## Ninong (May 20, 2014)

bagspacked said:


> If you do the math, waiving acquisition fee for higher MF is usually not in your favor...


That's correct. It is never in your favor unless you intended to pay cash for the car but found out you could get $500 (or $750) credit against each of the first two lease payments on a BMWFS lease but not on a cash deal. You take the lease, waive the $925 lease acquisition fee and have them mark up the money factor instead. Then you pay it off as soon as BMWFS gives you that credit against your account. Sweet.


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## gators05209 (Jun 2, 2016)

Thank you. How about residual on 428i GC for 30mo/15k, 24mo/15k?

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## Ninong (May 20, 2014)

gators05209 said:


> Thank you. How about residual on 428i GC for 30mo/15k, 24mo/15k?


30/15k=62%, 24/15k=65%. I assume you found one you like in stock somewhere? Unless you're in a hurry to do this soon, you might want to wait a week to see what you could do on a 2017 430i GC.


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## gators05209 (Jun 2, 2016)

Just got back from a different dealer after deciding on the 2016 428i GC and finding a specific vehicle of my liking in their online inventory. I got a final offer after negotiating, and plan to sign it tomorrow. From my calculations, I thought it was a good deal. Please let me know what you think. Thank you. Here is the quote:

2016 428i GC lease for 36mo/15k
Base MSRP: $41,650
Options: $3,870
D+H fee: $995
Total MSRP: $46,515

Self-calculated Dealer Invoice: $43,242
Dealer Incentives: $0 (or so they say?)
Negotiated Selling price: $42,187
Admin Fee: $699
Lease Acquisition Fee: $925
Tax: 6%
Residual: 59% ($27,440)
MF: 0.00089 (After 7 MSDs)
Monthly Payment after tax: $498.90
$0 down
Total Cash Out: $20,035

Due at Signing
1st Monthly Payment: $498.90
Security Deposit: $3500
Fees and Insurance: $318.50
Upfront Taxes: $101.43
Cap Reduction (Cash): $1624 ($925 acq fee + $699 doc fee)
TOTAL Drive Off: $6044


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## gators05209 (Jun 2, 2016)

Ninong said:


> Unless you're in a hurry to do this soon, you might want to wait a week to see what you could do on a 2017 430i GC.


Thank you for the numbers. Thought about waiting for the 430i, but decided to pursue 2016 modeel for the better maintenance package. Any major changes expected?


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## bagspacked (Jan 11, 2016)

gators05209 said:


> Thank you for the numbers. Thought about waiting for the 430i, but decided to pursue 2016 modeel for the better maintenance package. Any major changes expected?


New engine...


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## Ninong (May 20, 2014)

gators05209 said:


> Just got back from a different dealer after deciding on the 2016 428i GC and finding a specific vehicle of my liking in their online inventory. I got a final offer after negotiating, and plan to sign it tomorrow. From my calculations, I thought it was a good deal. Please let me know what you think. Thank you. Here is the quote:
> 
> 2016 428i GC lease for 36mo/15k
> Base MSRP: $41,650
> ...


Looks like a good deal. They're giving you the base money factor. It's correct that there are no direct incentives on this model other than the residuals, which are generous. BMW has a fondness lately for pushing volume bonuses rather that incentives on a particular model.



gators05209 said:


> Thank you for the numbers. Thought about waiting for the 430i, but decided to pursue 2016 modeel for the better maintenance package. Any major changes expected?


There is a very significant improvement in the engine. The new 430i is more powerful and more fuel efficient. There are other changes and I believe those have already been discussed on some of the usual hobby blogs.

There is no question that the monthly payment you can get now on a 428i will be significantly lower than the monthly payment on a new 430i. That's something more important to leasing customers. Customers who are paying cash are the ones who might be more inclined to wait to see what they can do on a 2017. By the way, you can still get better and longer maintenance coverage on a 2017, you just have to pay extra for it. Full maintenance for 48/50,000 miles will run about $1,349 (MSRP). You can even get 60/75,000 and even longer than that.


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## Ninong (May 20, 2014)

bagspacked said:


> New engine...


:thumbup:


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## malenky77 (Apr 24, 2013)

gators05209 said:


> Just got back from a different dealer after deciding on the 2016 428i GC and finding a specific vehicle of my liking in their online inventory. I got a final offer after negotiating, and plan to sign it tomorrow. From my calculations, I thought it was a good deal. Please let me know what you think. Thank you. Here is the quote:
> 
> 2016 428i GC lease for 36mo/15k
> Base MSRP: $41,650
> ...


admin fee = profit. When you add it to the selling price, you are about $500 under invoice. June being end of quarter / half a year, I would push for more discount. I know in NY / NJ 3 -series get sold at least $2K under invoice and 5-series get sold at least $3K under. End of month always gets you better deals.


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## Michael @ BMW Seattle (Mar 5, 2016)

malenky77 said:


> admin fee = profit. When you add it to the selling price, you are about $500 under invoice. June being end of quarter / half a year, I would push for more discount. I know in NY / NJ 3 -series get sold at least $2K under invoice and 5-series get sold at least $3K under. End of month always gets you better deals.


Both 3's and 5's are in excess inventory across the country, so pricing is more aggressive than on the 4-series, likely due in part to regional unpublished incentives.

OP ... you can always hold out for one of those deals, but if the is the car that fits your needs and wants, you are getting a good deal and can be driving it!

Michael


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## jjrandorin (May 8, 2013)

gators05209 said:


> Just got back from a different dealer after deciding on the 2016 428i GC and finding a specific vehicle of my liking in their online inventory. I got a final offer after negotiating, and plan to sign it tomorrow. From my calculations, I thought it was a good deal. Please let me know what you think. Thank you. Here is the quote:
> 
> 2016 428i GC lease for 36mo/15k
> Base MSRP: $41,650
> ...


I replied to your PM but I also think this is a good deal. The only thing is, you might be able to get a better deal on a car like this after the new ones are announced and on the way to dealers... but if you like this car and want to get the 2016 maintenance, this looks very solid.


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## sdt33cs (Jun 7, 2016)

Hey can anyone help me with a lease residual for a 2017 x4 M40i?

I was quoted 53% for 36/10k, which seems super low but matches the residual in BMW's stock leasing specials. 

Not sure if it matters or not, but would be looking for
- Technology
- Driver Assistance
- Lighting 
- Heated seats 
as main options.

If 53% is right, any guesstimates if it is likely to go up in July (likely with the $3500 incentive going away though).


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## Ninong (May 20, 2014)

sdt33cs said:


> If 53% is right, any guesstimates if it is likely to go up in July...


Yes, 53% is correct for 2017 X4 M40i 36/10k but for 30/10k it's 59%, which is more than the usual separation. So you might want to run the numbers on that as well.

There is no way to predict what they might do in July. They don't even know yet what they might do in July.


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## beashonda (Feb 17, 2008)

Residual for 535xi and 535 24 mos. 12k mi please?


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## Michael @ BMW Seattle (Mar 5, 2016)

beashonda said:


> residual for 535xi and 535 24 mos. 12k mi please?


69%

~m~


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## beashonda (Feb 17, 2008)

Michael @ BMW Seattle said:


> 69%
> 
> ~m~


Wow. Thank!!!


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## jamkor (Apr 24, 2015)

Is a lease credit the same as a "build out" credit? 

How are they factored into the lease deal?


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## jjrandorin (May 8, 2013)

jamkor said:


> Is a lease credit the same as a "build out" credit?
> 
> How are they factored into the lease deal?


A lease credit applies when you lease a vehicle (in this case through BMW FS). Build out credit normally applies to the car itself, and does not usually differentiate between lease and purchase.

"Build out" credits normally come on outgoing models, or models where the year is about to change over (for example, 2016s when there is about to be a 2017 ( on models BMW wants to push).

Those are general descriptions.. but basically build out is on models BMW wants to push and comes and goes as they wish.


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## jamkor (Apr 24, 2015)

Are they both just taken off the negotiated price?


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## jtat (Jun 2, 2013)

When will July incentives/residuals information be available? Is it usually before the first day of the new month or on that day? 

Thanks!


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## jamkor (Apr 24, 2015)

Must be quite a push happening right now. Getting lots of calls and emails.

What are the numbers (MF, RES, INC.) for 

2016/2017 435i/428i xDrive GC (are they always the same within the series?) 10/36 and 12/36
2016/2017 340i 10/36 12/36

for used, do they still take the "new" car residual and then subtract $250 for each 500 (above the first 500) miles on the car? are the MF's the same? IN this case would that be the 2017 number to work from?

You guys are awesome!


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## Ninong (May 20, 2014)

*I wonder how much* of this has already been covered in previous responses? If it's okay with you, I'm going to take a look and see. Let's start... 



jamkor said:


> Must be quite a push happening right now. Getting lots of calls and emails.


Michael @ Seattle BMW answered this in post #15 and post #21:

http://www.bimmerfest.com/forums/showpost.php?p=9699222&postcount=15

http://www.bimmerfest.com/forums/showpost.php?p=9699999&postcount=21



> What are the numbers (MF...


Michael @ Seattle BMW answered this in post #23:

http://www.bimmerfest.com/forums/showpost.php?p=9701146&postcount=23



> RES... for...


I answered this in post #27:

http://www.bimmerfest.com/forums/showpost.php?p=9702382&postcount=27



> 2016/2017 435i/428i xDrive GC (are they always the same within the series?) 10/36 and 12/36


In my post #27, linked previously, I gave the numbers for 30 months and 24 months for those models. I assume you know how to adjust that to get 36 months but just in case you forgot, 36 months would be 3 percentage points less than 30 months for the same annual mileage.

In case anyone reading this forgot how to adjust the residuals already published on the BMWUSA.com website in their special offers for 36/10k, the 12k is 1 percentage point less than the 10k and the 15k is 3 percentage points less than the 10k. To go from 36 months to 30 months all you have to do is add 3 percentage points to the 36 months residual to get the comparable 30 months residual. And to go from 30 months to 24 months, just add 3 percentage points to the 30 months number. This is not always true but it is true for almost all current models.

Obviously the answer to your question about residuals for the 2017 428 and 435 models is that there are no 2017 428 and 435 models.

Don't forget to read the bottom two paragraphs of post #31: http://www.bimmerfest.com/forums/showpost.php?p=9702731&postcount=31



> 2016/2017 340i 10/36 12/36


Believe it or not, this was answered in post #1 of this thread: http://www.bimmerfest.com/forums/showpost.php?p=9697331&postcount=1



> for *used*, do they still take the "new" car residual and then subtract $250 for each 500 (above the first 500) miles on the car? are the MF's the same? IN this case would that be the 2017 number to work from?


I believe there may be some confusion since you didn't say what year *"used"* car you are interested in? If you are asking about a dealer demo, service loaner, factory exec car or any other 2015 or 2016 model that is considered to be a "new" car and gets registered on a *new car report of sale*, as required by federal regulations, then it gets the current 2016 or 2015 new car rates and residuals with miles above the first 500 on the odometer adjusted in the residual amount. The adjustment has never been "$250.00 for each 500 (above the first 500) miles on the car" because that would amount to 50 cents per mile. You will have to verify this with your client advisor, or someone else currently working at a dealership, but I believe it is currently 25 cents per mile over the first 500 miles on the odometer but I'm not sure if it might be 30 cents for 7-series and 6-series, so please ask your client advisor about that.

If you're asking about a CPO BMW, then the answer depends on the model year you're interested in. I wouldn't even begin to answer that question because I might get it wrong. The whole point of this friendly post, which I hope you took in good nature, is to point out how often Bimmerfesters ask a question that has already been covered. Don't forget that I retired ages ago, so I won't answer some specific question unless I'm sure of the answer, but at least I know how to read previous posts. 

The 2017 3-series and 4-series price and ordering guidelines were just published in this forum a few days ago by *tim330i* -- not all of them, but most of them, have been released. You may not like the residuals on the 2017's compared to the 2016's. As usual, they are 6-7 percentage points lower than comparable 2016 models. That's pretty much par for the course. BMW is supporting the new 2015 and 2016 cars in dealer stock right now, not the new 2017's just coming out, or coming out soon. Those will get realistic residuals, not pie-in-the-sky residuals.



> You guys are awesome!


Never forget that your best source of information is your client advisor, and the friendly client advisors who are Bimmerfest sponsors. Just remember that it's always best to contact a Bimmerfest sponsor directly by email or PM on Bimmerfest. They can get in trouble for posting too much information publicly. Just an explanation in case some of you wonder why they don't jump up and answer all of your questions. They can be very easy to work with and will tell you honestly what they can do, assuming you're ready to do business.

Good luck!


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## MJBrown62 (Jun 15, 2016)

Ninong said:


> You will have to verify this with your client advisor, or someone else currently working at a dealership, but I believe it is currently 25 cents per mile over the first 500 miles on the odometer but I'm not sure if it might be 30 cents for 7-series and 6-series, so please ask your client advisor about that.


Those ¢'s are correct.



Ninong said:


> If you're asking about a CPO BMW, then the answer depends on the model year you're interested in. I wouldn't even begin to answer that question because I might get it wrong


True "used" and CPO leases use what's called a "dollar-based residual." It's a dollar amount based on the year and model, adjusted based on an average adjustment, and then the lease contract miles needed and the miles on the car at inception.

Yup, Ninong was wise to let that one go. It's just math, but really needs to be on a case-by-case basis.

BMWFS introduced a better CPO Lease program in May and June for select model 3's and 5 series. It's a similar residual adjustment, but more beneficial to the client and it has a set lease money factor.

For payment sensitive buyers this can be a good alternative, especially a 24 or 30 month lease that matches the CPO warranty period. But that should be discussed in another thread.

Michael in Seattle


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## jamkor (Apr 24, 2015)

Thank you. Apologies for the redundancy. 


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## BMW Spawn (Jul 9, 2013)

Ninong said:


> 2015 X5M/X6M = 36/10k is 52% (already received $2,000 build-out allowance)
> 2016 X5M/X6M = 36/10k is 60%
> 2017 X5M/X6M = to be announced next month (July is EOP on the 2016 and August is SOP on the 2017).
> 
> June is probably the last month to get anything close to a decent lease deal on a 2015 X5M/X6M. After that you should probably either pay cash or finance up to 72 months.


Hi Ninong

I'm curious to know how the EOP affects the mf and residuals? What I mean is that when a model reaches EOP does BMW give better incentives/motivation to clear up inventory? I have a 2013 X5 with the lease coming up in Oct. on which I got a great deal because the F15s came out a month or 2 later but since this isn't a model re-do I don't know what to expect. Should I wait til sept/oct or pull ahead(at least that's what my CA told me the other day I could do).

Regarding 2017s: if SOP on the 2017 X5s start in Aug, when do those hit the show rooms? And how do the incentives/motivation at the start of a model year go? Does BMW usually push to get them out quick or is the emphasis on getting previous year out.

thanks for any help and sorry for the length of the question :thumbup:


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## Ninong (May 20, 2014)

In general, BMW likes to put support on the models they want the dealer to move out to make room for the new ones. They have various ways to do that so there's no one way that applies to all models all the time.

Any X-series cars that are made in Spartanburg can make it all the way to New York in a couple of days. It takes a few days longer to make it to California. It's not like they have to cross any oceans to get to us.


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## jamkor (Apr 24, 2015)

Michael @ BMW Seattle said:


> The only thing that "changed" is the $3,500 lease credit on 2017 X3's and X4's that started on May 18th is continued/added to the official Sales Support Program Sheet.
> 
> * No new pull-aheads
> * No Loyalty
> ...


If the CA doesn't mention this (or any other similar incentive), does it make sense to not mention it until the price is determined and then expect that the $3500 will be taken off of that price?


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## jjrandorin (May 8, 2013)

jamkor said:


> If the CA doesn't mention this (or any other similar incentive), does it make sense to not mention it until the price is determined and then expect that the $3500 will be taken off of that price?


You can handle it how you want, but its likely that any price you are quoted would already have this build out credit built into it. For example, they might tell you they are running a special right now and giving 4k off the MSRP.

If its your expectation that they are offering 4K off the MSRP and then you are going to get an additional build out credit of $3500, you and them are going to be in for a pretty big "misunderstanding" conversation. You still might be able to get it though...

It all depends on if you want the process to be somewhat cordial or adversarial (this is my opinion anyway... others might think differently).


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## MJBrown62 (Jun 15, 2016)

jamkor said:


> If the CA doesn't mention this (or any other similar incentive), does it make sense to not mention it until the price is determined and then expect that the $3500 will be taken off of that price?


jj is right, they will likely bury it in the initial discount. But remember, in leasing it isn't technically a discount, it's a cash rebate to you that is being applied to the capitalized cost. It's not their money, that's why you're (depending on the state) are being taxed on the rebate.

Are you "entitled" to it? Well, no, not entitled. Should you get it? Sure. But like jj said you just need to ask. You will hope to get that $4k off and then the $3500; they may be thinking it's $500 and $3500 of BMWFS money.

Michael


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## Ninong (May 20, 2014)

MJBrown62 said:


> jj is right, they will likely bury it in the initial discount. But remember, in leasing it isn't technically a discount, it's a cash rebate to you that is being applied to the capitalized cost. It's not their money, that's why you're (depending on the state) are being taxed on the rebate.
> 
> Are you "entitled" to it? Well, no, not entitled. Should you get it? Sure. But like jj said you just need to ask. You will hope to get that $4k off and then the $3500; they may be thinking it's $500 and $3500 of BMWFS money.
> 
> Michael


That's very interesting. So they do have to classify it as a "rebate" and not some new form of early, early build-out allowance. That will definitely have to be shown as a taxable rebate in California or the Board of Equalization could hit the dealership with a violation and make them pay the sales taxes, plus penalties, on all that "rebate" money they failed to tax. We went through all of that mess with them back in the early 1980's. GM tried to use a third-party contractor to send out rebates to customers after the customer mailed in a voucher filled out by the dealership with the VIN and the date of the transaction but the Bd. of Eq. stopped that in a hurry and we had to start showing it as a taxable rebate on the contract or lease.


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## jamkor (Apr 24, 2015)

nevermind - sorry.


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## gbarros (Apr 19, 2007)

Are there res/mf numbers for the 2017 440i GC yet? Thx!


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## m3m3m3 (Feb 23, 2006)

Anyone know the residuals on the m5 for 24 and 36 mths at 10k mi? Thanks


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