I'd really like to lease a 545i or 550i but...(ANY CANADIANS OUT THERE, HELP!)

Here's my dilemma (as a Canadian)...

I recently leased an '05 745i for a sweet deal. Basically, they were blowing them out the door to make way for the 06 redesign, wound up doing the deal at $1390/mnth taxes in with about $5K due on delivery (Canadian $$, Interest Rate: 2.0% residual 52% and a wack off the MSRP, can't remember exactly how much, standard 24,000KM/YR 36MNTH). Drove the car for a few months, couldn't stand it. Too big, not sporty enough, just not for me. Wound up transferring the lease to a colleague in the office.

I'm more of a 5series kind of guy, but I'm having a real hard time wrapping my head around the idea of paying considerably more for a 550i than a [reduced priced] 745i. 550i rates haven't been set here yet, but they are believed to be 6.45% (for existing BMW customers) with a 55% residuals (what the 530 entered at). With a slight increase over pricing from the 545i, but very little discounting off of MSRP. All that said, I'd be in around $1600/mnth taxes in with $5K due on signing. Even if I can get it down to the $1500/mnth taxes in range (equipped with sports pack, sports seats and Logic7 sound), that seems much more than I'm hearing out of some of this US deals? Read a post suggesting with $5K down the deal was more like $730/month which is <$1000 CDN after currency exchange. Could that really be the variance?

A 330i with sport pack, premium pack, A/T will do me in for around $920/mnth taxes in. I'd be willing to do something in the range of $1250/month taxes is, but not $1600!! There's too much on the market in that range.

Any suggestions? Canadians maybe that have experienced the sticker shock I'm seeing here?

Alex.

Reply » I'd really like to lease a 545i or 550i but...(ANY CANADIANS OUT THERE, HELP!)

I say that you should try to lease one of the remaining 545's. The lease deals are really good (at least in the US) and it will still be a load of fun to drive with more HP than most people would ever need..... just my .02 though! Good luck with your decision!

Reply » I'd really like to lease a 545i or 550i but...(ANY CANADIANS OUT THERE, HELP!)

There's very little left from the '05 545's. The only real incentive would be the intrest rate is 2points lower, which helps, but doesn't warrant me taking a totally different colour than what I normally would to save $50/month.

Any Canadians that have ordered 550's out there?

Alex.

Reply » I'd really like to lease a 545i or 550i but...(ANY CANADIANS OUT THERE, HELP!)

Even considering a US Exchange rate of 0.83 the numbers you quoted seem waaaaay too high. (are you considering a 24 month or 36 month lease?).

Let's assume the 550 loaded is 64,500. You said you are getting a 55% residual (which is good). And you are going to put $5K down with a rate of 2%. Here's how it should work.

The depreciation part of your payment would be: (64,500 - 5,000 down) - 35,475 residual = 24,025/36 months = $667.36

The interest portion would be: (64,500 - 5,000 down + 35,475 residual) x 0.00083 money factor = $78.83. The money factor comes from taking 2% / 2400.

$667.36 + $78.83 = $746.19 USD. (or about $899 CD)

Reply » I'd really like to lease a 545i or 550i but...(ANY CANADIANS OUT THERE, HELP!)

Quote:

The $5K isn't a downpayment, it's upfront fees/costs (first, security, deposit, f/pdi and admin - which would go down if the payment was to go down), my numbers are based on $0 down, 36mnth term. The offered interest rate on 550's is speculated to be 6.49% (not 2%). The MSRP would be $83,900 on the 550 as I would order it (sport pack, sport seats, lumber, logic7sound, sunshade). Assuming my dealer would take $80,000 the lease after taxes works out to aprox $1500/mnth CDN (aprox $1200 USD) - and I haven't found a dealer who thinks that it's even worth to submit an offer at $80,00.

Suggestions?

Reply » I'd really like to lease a 545i or 550i but...(ANY CANADIANS OUT THERE, HELP!)

In short, the problem is the high speculated money factor combined with a speculated lower residual (as compared to the 330i at 61% on a 36mnth for example). Combine that with dealers who aren't moving much off MSRP and a 550i is totally overpriced. To make sence, either BMW Canada Financial has to introduce this vehicle with 59% residual or higher, 4.5% intrest or the dealers need to bring the cap. cost down on negotiations to less than $1K over invoice. Given that I need a car and there's still no info. on what the residuals or rates will be, I have to assume the 55% residual and 6.9% intrest will be in play with a cap. cost of >$80K which equates to a monthly of $1500 - Hey BMW Canada! WAKE UP! I'm your customer but your forcing me to move on!

Alex.

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