BMW lease on 2005 545i help???

Well I have really done it. I've put so many miles on my car and now my wife and I are expecting our first child and she wants me to get an automatic. I had originally gotten my lease from Jon and Franco at Cutter a few years ago with only 10000 miles per year and 10 security deposits for a loaded 530i 5 speed sport at a monthly payment of $500 +tax.

I called up the Santa Barbara BMW and asked for anything on a 545i and they found the following:

2005 545i
cold weather package
premium sound
auto tranny
navigation
sat radio prep
MSRP $60920

My 2003 530i
41700 miles
5 speed manual
sports pacakge
premium package
Nav
rear shades
Park distance control
lovingly taken care of and looks brand new (changed oil and everything every 7500 miles)

They are telling me that since my lease is due in May 2006 the best way to get into 545i is to pay remaining lease payments ($538 x 8) and an additional $1300 for excess mileage that would go into my down payment for my new lease. So basically give them my security deposit of $5000 from original lease purchase and tack on $1300.

Lease for 2005 545i

MSRP $60920
initail cap cost $59825
bank fee $625
36/10000 miles
money factor 0.00135
residual 60%
cash cap reduction $3251

base payment $700 + tax

I was hoping you guys can look this over and tell me what you think. I know I was going to be neg. on my 530i but it seems an aweful lot to get into a 545i. They have been nothing but professional, very forthcoming and a pleasure to work with, but I need to do my comparisons and get some feedback from you guys that helped me out so much with my first BMW. Thanks in advance!

Reply » BMW lease on 2005 545i help???

Quote:

They R ripping u off BIG TIME. Cars Direct has that car for 56,890. I would tell them only way deal gets done is 56k they waive mileage and remaining lease payments. You are taking a left over outdated car off their hands. If you have to pay the lease payments AND mileage overcharges, you might as well either: (1) wait until the end and drive the car; (2) pay that to walk away from the car completely and buy whatever you want from whomever you want; or (3) buy the 530, the last year of a desireable design.

But personally, I would tell them to shove that deal up their a$$es.

Reply » BMW lease on 2005 545i help???

Quote:

Dude, I would suggest you run.. not walk away from this deal.

This is what I would do...

1. Make the next 8 payments as a single payment to BMW FS. Pay any mileage fees due and return your car (and get your 5 grand back). BTW, BMW FS allows you to buy additional miles on your lease at a discounted rate as long as you have at least 9 months left... next time, you need to plan a little better.

Now, go and shop and get the car of your dreams.. oh, one more thing.. I think you are completely crazy for getting a 10k miles per year lease. Your current condition is a prime example of that. You should consider getting at least a 12k/yr lease.

The deal you are currently being offered SUCKS!!!

Reply » BMW lease on 2005 545i help???

The rule is whenever you put a dealership in a position to help you, you will be screwed.
When bargaining for a car, you never want to be put into a position of weakness.
Normally you should be getting a money factor of 0.001 on a 2005 545i. The money factor you were quoted is higher(0.84% more in interest) because the dealer knows he can get away with it due to your situation. This higher money factor would cost you $1000-1500 more over the 36 months than you should be paying.
Also, I would try for a 45,000 mile lease instead of 30,000.
Walk away!

Reply » BMW lease on 2005 545i help???

As others said, that's a terrible deal.

You should be able to get a 545i for no more than $1,000 over invoice ($4,000+ discount) and lease money factor of 0.001.

Reply » BMW lease on 2005 545i help???

I just did a lease on an '05 545i last week. Here's what I worked out:

Turn in my leased 2003 330xi 7 months early
- I had 28k miles on the car
- lease was due to end April '06
- lease included 12k mi/year, so I was under
- 330xi needed new tires ($xxx?), plus some dings & scratches ($xxx to be taken from security deposit)
- no disposition fee ($350) since they bought it out
- walked away for no cost to me
- full security deposit returned to me, no questions asked (make sure they give this to you, sometimes they'll take it themselves as part of the deal)

Leased the '05 545i
Prem Sound, Cold Weather, Heated Rears, Fold Down Rears. Sat Prep
.001 MF
59% residual
$1500 over invoice
No cap cost reduction
$672 + tax

I probably could have done a little better on the price, but all in all it was a good deal. Especially since it allowed me to walk away from my current lease 7 mos early. They didn't even inspect my car, just walked around it for 20 seconds (it was filthy), checked the odometer, the tires, and called BMW for the payoff price. When comparing this deal with the alternative (finishing my 330xi lease, buying tires, disposition, higher lease rates/lower resid of a 2006 530i in the spring), this seemed like a good deal for a better car.

Edited to Add: When I first started talking with this dealer, their price was about $810 + tax, because they started at a higher price, marked up the MF to .0014, boosted the bank fee to $825, plus they planned on keeping my 330xi security deposit, etc. Remember - almost every line in the deal is negotiable (MF, cap cost, deposit, bank fee, buy-out, etc.) - they're getting the best of you on every line!

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