# BMW Captive Lease Rates - December 2005



## arnolds (Dec 21, 2001)

Zona330 said:


> Thanks for the information!
> 
> So, from your post qouted above, one has to add .0003 to the MF for ED?


Yes, the .0003 is mandatory for ED leases.


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## Zona330 (Dec 8, 2005)

Thanks, Arnolds!

A few more questions :angel: 

For the above lease terms does an acquisition fee apply?

How much is the security deposit?

I am assuming there is no downpayment unless you want to make one to lower your capitalized cost? 

If the dealer balks at giving me the buy rate on the money factor, what is a good approach to convince him to do otherwise?

You guys are saving me a wad of cash :thumbup:


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## bmw325 (Dec 19, 2001)

Zona330 said:


> Thanks, Arnolds!
> 
> A few more questions :angel:
> 
> ...


Yes, you'd have to pay an acuisition fee-- and that's also subject ot dealer marketup. I believe the base fee is $650.

The security deposit is equal to the payment rounded to the nearest $50. BUt you can put down up to 5 security deposits to buy down the money factory by .00005 each. In my example, I assume this in order to almsot cancel out the .0003 ED rate adder. If you do the math, you'll see that you get a decent rate of return out of teh money you "invest" in the extra security deposits. I believe I got a rate of return of 14%/year when playing w/ my sample lease numbers. Keep in mind that a security deposit is not liike a downpaymentl; you get it back when the lease is over (or if the car is totalled or stolen). A few years ago you used to be able to pay up the 9 extra security deposits for .0001 each (pretty incredible deal)- but in this era of low interest rates BMWFS decided that it wasn't in their best interest. 

If the dealer balks at giving you the buy rate, its just like any other negotiation. Whether its the capitalized cost, "documentaiton fees", or the markup on the acq fee and money factor its all dealer profit in the end; and that's what you're negotiating. Both you and the dealer can "take it or leave it"; the idea is to come to a compromise. Hopefully (for you), the european delivery aspect will amke a lower profit deal more enticing to the dealer since they're not losing a car; its a "free" deal for them. But, some dealers may still balk at terms they think are too low. Some people have had success by faxing their "terms" to a number of different dealerships, and then seeing which one will bite. I don't think $1k over invoice plus getting the buy rates for the money factor and aqu fee is too unrealistic on a euro delivery car with a deal made at the end of the year.

Keep us posted; I'm curious to see if anyone actually does a 525i leae for the mid 200s.


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## jw (Dec 21, 2001)

Just did a quick run through on some numbers for a fairly loaded 530i for the 2 year lease (I'd bet $5 my math is wrong) but it seems like given the following hypothetical, you'd be saving only a few hundred dollars doing ED. Am I missing something? (other than the ED experience... I've been to .de, .at, .etc)

24mo/15k, 72% residual, .0017/.0014 ED/US MF. $1000 over invoice for ED, $2000 over invoice of US. (Plus 1000 deducted for CCA discount)

US Est Pymt $632.73, total of $15,185
ED Est Pymt $575.10, total of $13,802

That's a savings of $1,383 but you also have to account for the loss of at least 1 lease payment while your ED is in transit. Maybe save $800 alogether to do ED. One could easily spend that in Duty Free shopping alone. ;-)

```
Inv	          MSRP
ED base	 $39,610.00 	 $43,525.00 
Step	     $1,210.00 	      $1,275.00 
comfort	    $1,090.00 	    $1,200.00 
pdc	        $635.00           $700.00 
nav	      $1,640.00       $1,900.00 
sirius  	 $540.00 	 $595.00 
ZPP     	 $1,640.00 	 $1,900.00 
ZPS	      $1,640.00 	 $1,900.00 
ZCW	       $685.00 	         $750.00 
Destination	 $695.00 	$695.00 
           	 $49,385.00 	 $54,440.00
```


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## arnolds (Dec 21, 2001)

jw said:


> Just did a quick run through on some numbers for a fairly loaded 530i for the 2 year lease (I'd bet $5 my math is wrong) but it seems like given the following hypothetical, you'd be saving only a few hundred dollars doing ED. Am I missing something? (other than the ED experience... I've been to .de, .at, .etc)
> 
> 24mo/15k, 72% residual, .0017/.0014 ED/US MF. $1000 over invoice for ED, $2000 over invoice of US. (Plus 1000 deducted for CCA discount)
> 
> ...


Is your residual for the ED lease based on the US MSRP?


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## brian545 (Apr 8, 2005)

CORRECT Your math is WRONG Base US MSRP 46,800 plus options and destination.

CORRECT MSRP $57,675x 72% = $41,526R

49,385-41,526= 7,859./24=327.46dep
49,385+625+41,526=91,536x.0017ED=155.61Int

155.61+327.46=483.07 Base Payment On ED :angel:


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## jw (Dec 21, 2001)

I believe I was basing it on ED MSRP of 54,440. That's where it was wrong. Looks much more attractive now.  Thx.


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## Boraxo (Sep 6, 2005)

What are the money factor rates for buying rather than leasing? Is that posted on another thread?


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## Zona330 (Dec 8, 2005)

Thanks again to everybody for the advice.

The dealer in North Scottsdale has agreed to $1000 over ED invoice and a MF of .0017 on the 530i 15K/24 month lease. I asked for the MF buy rate of .0014, but I had forgotten that you had to add the .0003 for ED. So it looks like he is offering a great deal. My calculation comes to $353 per month with tax included and $1000 downpayment on the base 530i (BMW CCA rebate :thumbup: ). Is this what you guys get???

The only thing we haven't discussed is the acquisition fee. 

With tax the lease deal ballons to almost $600 without ED, so maybe I'll just take a little vacation.

The only problem that I have is that the buyer for my 2004 330Ci wants in NOW, and I need something for the next few months until the car arrives. What do you guys suggest for a long-term rental? I spose I could buy a beater, but that is a hassle.


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## bmw325 (Dec 19, 2001)

Zona330 said:


> Thanks again to everybody for the advice.
> 
> The dealer in North Scottsdale has agreed to $1000 over ED invoice and a MF of .0017 on the 530i 15K/24 month lease. I asked for the MF buy rate of .0014, but I had forgotten that you had to add the .0003 for ED. So it looks like he is offering a great deal. My calculation comes to $353 per month with tax included and $1000 downpayment on the base 530i (BMW CCA rebate :thumbup: ). Is this what you guys get???
> 
> ...


Great news! One other thing to consider is putting down 5 security deposits to get buy down the money factory by .00025 (which will almost cancel out the ED rate adder).


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## tangietown (Dec 14, 2005)

This is all fantastic information, looks like this lease is just too great a deal to pass up. I have a few questions:

- Is the acquisition fee in addition to the destination charge?

- Is anyone familiar with a dealer in the Los Angeles area who will agree to the terms being suggested here ($1000 over ED wholesale, MF buy rate, and the resid values being discussed here).

Thanks again.


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## BayAreaBMWFan (Aug 8, 2004)

robg: Try swapalease.com to get a short term lease. There are other lease transfer boards also.


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## bmw325 (Dec 19, 2001)

BayAreaBMWFan said:


> robg: Try swapalease.com to get a short term lease. There are other lease transfer boards also.


Did you mean to address this to someone else?


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## BayAreaBMWFan (Aug 8, 2004)

robg said:


> Did you mean to address this to someone else?


Oops. Zona 330 was my target.


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## brian545 (Apr 8, 2005)

NO Acq. Fee $625 (Can be marked up by dealer up to $825 For An additional $200 profit) is a BMWFS fee that is included on all BMWFS leases. It also includes gap insurance. Residual Value are non negotiable. :angel:


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## tangietown (Dec 14, 2005)

brian545 said:


> NO Acq. Fee $625 (Can be marked up by dealer up to $825 For An additional $200 profit) is a BMWFS fee that is included on all BMWFS leases. It also includes gap insurance. Residual Value are non negotiable. :angel:


So then I can expect to pay up to $825 for the Acquisition Fee, but I will not also have to pay the $695 destination charge?


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## brian545 (Apr 8, 2005)

yes all cars have $695.00 even ED


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## lilskel (Jun 10, 2005)

Am I correct in saying that MF's continue to go down as the year goes on? I'm trying to figure out when the first month a .0010 MF would be available on most cars, I had thought April?

If MF's keep going down, do residuals also change? For example right now a 525i 24/mo is 74%..will the residual hold even as the MF goes down over the next few months?


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## BayAreaBMWFan (Aug 8, 2004)

Typically residuals go down. MF are determined by the prevailing interest rates.
In some cases, BMW might run specials and the MF will be less. In general the best lease deals in Jan-March.


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## bugmenot (Sep 26, 2004)

*330i lease question*

Thank you all for the information. It really helps out. I hope it not too late for me. I went to a dealer about a 2 months ago and put $1000.00 down on a 330i lease. Worked out some crazy numbers before informing myself (Like MSRP for car, and didn't look at one number that goes into monthly payment, I just wanted a ballpark number for a lease). Stupid I know. The next day I had to go away on business, I called the dealer and said I did not want the car but that I would be back at a later date to select a car. Am I screwed and stuck with these terms $650 month for 3yrs, 12k mi/yr? If dealer says no dice, would better off going somewhere else and startting over?

I didn't sign a lease contract, just a "MOTOR VEHICLE CASH PURCHASE AGREEMENT" that listed my $1000 deposit. The terms I mentioned above were hand written on the agreement. I was told that when I came back I wouls sign the real lease papers. Any help?

Thanks again for all the info.


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## BMWer (Jan 10, 2004)

robg said:


> Well, you're not obligated until you actually sign the lease contact. On an ED car, that typically happens 2 weeks before you pick up the car in Munich. But, you can request a "rate lock" for up to 60 days to lock in the current lease rates; that's what people typically do for ED leases. I think he's bsing about "BMWFS has not published...".


If the MF is better later on, can you use the better rate? Will the dealer just pocket the extra profits?


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## sunnyd13 (Dec 16, 2005)

> If the MF is better later on, can you use the better rate? Will the dealer just pocket the extra profits?


My dealer said that they would give us the better MF if it changes....


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## bmw325 (Dec 19, 2001)

lamchop9 said:


> I've been working with a dealer in CA, and so far, I've talked it down to...
> 
> 325i Sedan 2006
> 24 month lease
> ...


Did you run the lease numbers yourself using the published money factor, and residual? do you know the "cap cost (aka selling price)" that the dealer is using? Its really not a good idea to just negotiate based on monthly payment; you need to know and calculate the montly based on all the inputs. Its a "good deal" if the selling price is roughly 1k over invoice and the dealer is using the base rates for the acquisition fee and money factor. Anything over that becomes less of a good deal. Look at the first post in this thread; it gives the lease formulas and all the current published BMW lease rates. If this is not a euro delivery car, you're probably better off doing a 36 month lease in terms of payments (unless you have an exceptionally short attention span and can only deal with having a car for 2 years).

One thing I can tell you right off the bat is don't put anything down on a lease other than what's rquired (security deposit and acq fee). Don't agree to a "cap cost reduction"-- if the car is totalled or stolen you won't get that money back. That number does sound too high.


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## sunnyd13 (Dec 16, 2005)

robg said:


> If this is not a euro delivery car, you're probably better off doing a 36 month lease in terms of payments (unless you have an exceptionally short attention span and can only deal with having a car for 2 years).


Rob, we're considering ED for our 325, and we're going to lease. I was wondering if you thought the 2 year lease is a bad idea for an ED car. If so, why?


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## bmw325 (Dec 19, 2001)

sunnyd13 said:


> Rob, we're considering ED for our 325, and we're going to lease. I was wondering if you thought the 2 year lease is a bad idea for an ED car. If so, why?


Nope- I think its perfect for ED leases; that's why I said "unless you're doing an ED lease". If you're doing regular US delivery, a 36 month term seems to be the "sweet spot".


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## sunnyd13 (Dec 16, 2005)

robg said:


> Nope- I think its perfect for ED leases; that's why I said "unless you're doing an ED lease". If you're doing regular US delivery, a 36 month term seems to be the "sweet spot".


Cool. Thanks for the info. I think I just read it wrong...


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## bmw4u (Dec 27, 2005)

*Lease rates in SO CAl*

What are the rates for a 06 760 Li for a 36 month 18K/year miles ?


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## arnolds (Dec 21, 2001)

bmw4u said:


> What are the rates for a 06 760 Li for a 36 month 18K/year miles ?


Here are the rates as posted in the first post of this thread.

760Li Sedan

24 mo/15k mi - Residual Value 56% of MSRP - .00285 Base Money Factor Rate
36 mo/15k mi - Residual Value 47% of MSRP - .00285 Base Money Factor Rate
48 mo/15k mi - Residual Value 37% of MSRP - .00285 Base Money Factor Rate
60 mo/15k mi - Residual Value 30% of MSRP - .00285 Base Money Factor Rate

As for the extra 3k miles a year, you can buy those. Just let your dealer know.


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## chuck92103 (Oct 9, 2005)

arnolds said:


> Here are the rates as posted in the first post of this thread.
> 
> 760Li Sedan
> 
> ...


These look like aweful rediduals compared to the 5 series. The 7 loses half it's value in 2 years? :dunno:


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## lilskel (Jun 10, 2005)

robg said:


> ED or regular delivery? From the way your post is worded, I'm guessing it was regular delivery because you say "I went". If it was an ED order you would've chosen your pickup date when you ordered the car.
> 
> As far as I know, BMW's "official" lead time for ED orders is 3 months from order to pickup. That doesn't mean that you might not be able to get it sooner in some cases, but BMW's official stance is 3 months.


ED..only contacted 1 dealer..got the deal I wanted, ordered it within a week and picked up in munich 5 weeks from the date I first contacted the dealer.


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## lilskel (Jun 10, 2005)

robg said:


> Nope- I think its perfect for ED leases; that's why I said "unless you're doing an ED lease". If you're doing regular US delivery, a 36 month term seems to be the "sweet spot".


I did ED and I got a 39/mo lease with 36/mo residual and MF..I think thats the best deal, but if not available then I would say the 24 month is if you extend it 6 months at the end


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## BayAreaBMWFan (Aug 8, 2004)

You end up paying another year of registration ($300 here in California) just for the extra 3 months on a 39 month lease!


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## lilskel (Jun 10, 2005)

Ouch, on my last car that I owned it was only $36 a year renewal..lease hopefully will be the same but also I heard that BMWFS pays for registration? Don't they just send you the new stickers?


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## ianbjor (Dec 31, 2005)

robg said:


> ... (assuming you also put down 5 secutrity deposits to essentially "cancel out" the .0003 ED rate adder)...


Is this valid? I just had a dealer tell me that Multiple Security Deposits can't be used with the current "special program" lease rates -- they can only be used with a "normal program".

Thanks,


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## BayAreaBMWFan (Aug 8, 2004)

You can not do prepaid with the special lease programs. I have never heard of MSD being a problem.


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## dima123 (Jul 7, 2005)

What would a lease be on a 530 12k per year and a 330i 12k per year! With euro delivery and regular delivery... 

thanks


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## bmw325 (Dec 19, 2001)

dima123 said:


> What would a lease be on a 530 12k per year and a 330i 12k per year! With euro delivery and regular delivery...
> 
> thanks


Do a bit of research--with about 20 mins of research you'll have all the answers and will be able to calculate any lease on any car you want.


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## tangietown (Dec 14, 2005)

*Getting screwed?*

I am working a deal with a BMW dealership in LA for$1,000 over ED invoice for an ED 525i. He says he is giving me the current buy rate, which I told him I thought was .0019 (equalling .0016 plus .0003 rate adder). His response was:

"Honestly, I don't what to tell you other than the numbers you have obtained are incorrect. .0019?? That is not a proper money factor to calculate. You mean .00190? Also, with European deliveries you must have a .00035 rate adder." I am still waiting to hear back from him as to what MF he is proposing.

Also, with only options being Steptronic and Sirius satellite radio, he is giving me an MSRP of $42,090. I don't know where he's getting this number from, I see the MSRP as $45,065, based on numbers from the bmwusa.com website, and also the 5 Series pricing sticky on bimmerfest. I suspect he is using the ED retail price...

So my two questions are:

1. Is he bsing me about the money factor when he says .00190 is incorrect?
2. For ED, isn't the residual based on full retail MSRP? And not on ED retail?

Thanks all for your insight and help, as always it is very much appreciated.


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## chrischeung (Sep 1, 2002)

*Need more information*

You don't provide enough information. You also need to provide lease term (eg. 39 months), and mileage per year. If you scroll to the first part of the post, you will see the buy rates.

ED adder is 0.0003.

Residual is based on US MSRP.


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## alexthe1 (Jan 11, 2003)

1. You are correct buy rate is 0.0016 + 0.0003 for Euro delivery. 
2. You are right again, residual based on full retail US MSRP.

He is trying to mark up the buy rate. He may not have experience in doing ED lease, that's why he might have used ED retail price. I would make sure that salesperson has experience doing ED.


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