Lease Rate Question, and Lease Alternatives

Hi All -

This board is GREAT. I've learned a ton!! I was going to get a 545, but decided to wait and thanks to bimmerfest I'm about to order a loaded 550 for european delivery. I've found a (somewhat) local dealer that's offering a strong deal ($1000 over ED invoice).

However, I'm interested in leasing. I know the current money factor on the 550 is pretty awful (.0026) - I'm hoping it comes down by the time I take delivery (early Feb). However, I wanted to lock down the terms with the dealer now so there are no surprises. They're telling me that the lease money factor would have the following adders on top of the base buy rate:
- .00015 add - waiver for security deposit
- .0003 add for european delivery surcharge
- .0003 add for dealer margin

This brings the overall money factor to a whopping .00335. A few questions:
- Are the adds that the dealer mentioned reasonable (seems the only one that may be negotiable is the .0003 for dealer margin)
- Has anyone used leasecompare to get alternative lease sources? Their money factor is better (.00218), but they seem to have adders too ($2949 for 'facilitation fee').
- My credit union used to offer what was effectively a balloon loan (they called it 'payment shaver'). This worked great - they residualized the loan, so there was a balloon payment at the end of the term, or you turn the car back in - effectively brought the payments down to the lease range - but they no longer offer this loan. Anyone know of any lenders in Southern Cal that are offering something similar?

Thanks for the help!!

Ira

Reply » Lease Rate Question, and Lease Alternatives

Most CUs have gotten out of that business since they lost money on the residuals. The facilitator fee with leasecompare is something you should talk to them about. They might be able to something about it.

In general BMWFS leases will have high residuals and high MF.
Third party leases will have lower residuals and lower MF.

However, I doubt if any 3rd party will do an ED lease. Very few loan companies do ED loans.

You could also consider putting multiple security deposits. It not only get rid of the 0.0015 SD markup but each extra SD shaves the MF by 0.00005 (up to a max of 5 SDs).

A prepaid lease also shaves off 0.008 of the MF but you will have to pony up the cash up-front.

Also consider doing a 24 month lease instead of 36 months. The ED savings often lead to lower payments for 24 month leases. As an added bonus you will not have to change tires within the 24 months unless you drive a lot and you can save a couple of hundred in the process.

And finally the dealer markup is negotiable like anything else in a deal. BMWFS allows a markup of 0.0004 (your dealer is doing 0.0003) and markup the acquisition fee of $625 by $200. You can also sign the contract now and renegotiate the rate with the dealer if the Nov or Dec program is better. You have about 14 days before your ED pickup date to do that.

Reply » Lease Rate Question, and Lease Alternatives

Just signed a deal to order my '06 530i black sapphire/black leather, Anthracite, SMG, Sport, Premium, NAV. 3yr Lease, 12K mi/yr, $4500 total driveoff for $559/mo. + local sales tax. 8 wks delivery time. Good deal or not? Help me out guys please!

Reply » Lease Rate Question, and Lease Alternatives

BayArea - thanks! Interestingly, the LeaseCompare residual on a 24 mo lease (15K miles) is the same as the BMWFS residual (68%!). BMWFS is at 57% residual for a 3 yr lease, so the 2 year actually winds up with lower payments. Wy wouldn't LeaseCompare (for example) do an ED lease? Aren't they, effectively, just providing financing just like they would in a normal auto loan? They just send a check to the dealer to pay for the car - why's ED any different than standard deliv?

Elvis - it's tough to answer whether you've gotten a good deal without some more data: what's the MSRP, what's your purchase price, etc. You can find (I believe in the 'ask a dealer' forum) the current money factors/residuals for BMWFS leases - this can give you an idea if your dealer is using these rates or increasing their rates.

Reply » Lease Rate Question, and Lease Alternatives

In the case of ED the car is not titled in the US for more than two months after the bank has to pay the money to BMW. Most banks are not comfortable with that though some will do that.

You should send a PM to Tarry who posts the lease numbers on the Ask A Dealer thread. He is the head honcho at leasecompare and can help you with this stuff. You can also talk to him about the facilitator fee.

I do feel that the 550 lease prices will go down in the next few months. Sign a deal in early November and you should have Nov/Dec/Jan numbers to play with.

Reply » Lease Rate Question, and Lease Alternatives

Hard to tell without more details. Can you provide MSRP, selling price, MF, downpayment, etc...?

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