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2010 2011 BMW 5 Series Forum F10 BMW 5-Series (F10) Forums F10 Pricing, Ordering, and Tracking (and European Delivery) F10 Lease and Finance Rates
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      03-25-2010, 02:03 PM   #1
pharding
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F10 Lease and Finance Rates

Current rates as of 3.25.10

2011 535i Sedan
BMW Buy Rate: .00250
36 Month Residual: 58%
60 Month Retail Finance Rate: 4.9%

2011 550i Sedan
BMW Buy Rate: .00230
36 Month Residual: 54%
60 Month Retail Finance Rate: 4.9%

Lease loyalty incentives have not announced yet.
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      03-25-2010, 02:31 PM   #2
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UGh..That residual is horrible..What mileage is that based on?
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      03-25-2010, 03:26 PM   #3
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The residual values reflects current market conditions. They are similar to 3 Series residual values. The current market has been tough on the residual values of luxury cars. When my son's lease on his 330 was up in December 2009. BMW FS reduced the residual value by $5,000 when he bought it. That was a great deal for my son.
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      03-25-2010, 07:24 PM   #4
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Loan vs Lease Calculation

Overall if this is the program they are starting out with its not a great deal, and certainly makes up for the lower sticker on the 2011's

I calculated the lease vs. buy numbers, and using an amortization table for the loan calculated that you would come out 2k better after 36 months on a loan than a lease. Assuming you sold the car at a close value to that 58%

I'm not the least bit surprised its almost a negligible difference in overall TCO between the 2 deals over 36 months. the .0025 MF is somewhat high considering the lower residual value.

BMW is making up for the lower MSRP by keeping the Money Factor (interest rate) high at 6% (.0025 * 2400).

When I was pricing a 2010 535 in Dec 09 the MF was .0025 but the residual was 0.6, which made a little more sense.

Even the 4.9% through BMW Financial is a little high. The latest rate from Chase on 60 months new car is 4.52 and you can take .25% off by auto debit. That along will cut your interest over 60 months by $1k.

Play with the attached spreadsheet with the numbers relevant to your deal to see where you end up.
Attached Files
File Type: zip Lease Vs Loan.zip (40.5 KB, 513 views)
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      03-25-2010, 07:31 PM   #5
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Quote:
Originally Posted by pharding View Post
Current rates as of 3.25.10

2011 535i Sedan
BMW Buy Rate: .00250
36 Month Residual: 58%
60 Month Retail Finance Rate: 4.9%

2011 550i Sedan
BMW Buy Rate: .00230
36 Month Residual: 54%
60 Month Retail Finance Rate: 4.9%

Lease loyalty incentives have not announced yet.
What lease loyalty incentives might be put out there? Is this if you're turning in an old lease or is for anyone? thx
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      03-25-2010, 09:41 PM   #6
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Do you have any numbers for the 24 month programs? When I did my ED on my 08 E60, the 24 month program was a bit better than the 36 month deal. I'm not optimistic, but would still like to compare the numbers. TIA.
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      03-25-2010, 09:52 PM   #7
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Quote:
Originally Posted by Hueydumps View Post
What lease loyalty incentives might be put out there? Is this if you're turning in an old lease or is for anyone? thx
This incentive is geared toward those leasing a BMW whose lease is ending. There is a strong likelihood that incentive will happen shortly according to informed sources. The goal for BMW is to retain those existing customers so that they don't wander off to Audi or MB. Once they are gone they are more difficult to get back. Lease customers are desirable because they lease cars every 3 years. This much greater frequency than those who purchase or finance their cars.
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      03-26-2010, 06:29 AM   #8
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Quote:
Originally Posted by pharding View Post
This incentive is geared toward those leasing a BMW whose lease is ending. There is a strong likelihood that incentive will happen shortly according to informed sources. The goal for BMW is to retain those existing customers so that they don't wander off to Audi or MB. Once they are gone they are more difficult to get back. Lease customers are desirable because they lease cars every 3 years. This much greater frequency than those who purchase or finance their cars.
Thanks for the insight. This is my situation exactly - so what might the incentive be, lower the price of options or MSRP a bit or better MF? I know there's no use planning on it now until we see the deal, but I'm just curious as to what they've done in the past...
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      03-26-2010, 06:36 AM   #9
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Typically they would reduce the money factor. If you lease that is the best incentive. This is in addition to the reduction in fees that you get anyway when do your second lease and beyond.
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      03-29-2010, 10:25 AM   #10
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Quote:
Originally Posted by pharding View Post
Current rates as of 3.25.10

2011 535i Sedan
BMW Buy Rate: .00250
36 Month Residual: 58%
60 Month Retail Finance Rate: 4.9%

2011 550i Sedan
BMW Buy Rate: .00230
36 Month Residual: 54%
60 Month Retail Finance Rate: 4.9%

Lease loyalty incentives have not announced yet.
Is there a customary dealer markup on the buy rate? I got one dealer quote where they are using a money rate on the 535i of .0029 AND selling at exactly MSRP. I am working on another dealer as the one above seems very proud!
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      03-30-2010, 04:04 PM   #11
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The mark up is whatever the market will bear. I typically do the BMW Buy Rate and let them mark up the Lease Acquisition Fee by $200.
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      03-30-2010, 08:32 PM   #12
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Quote:
Originally Posted by pharding View Post
Current rates as of 3.25.10

2011 535i Sedan
BMW Buy Rate: .00250
36 Month Residual: 58%
60 Month Retail Finance Rate: 4.9%

2011 550i Sedan
BMW Buy Rate: .00230
36 Month Residual: 54%
60 Month Retail Finance Rate: 4.9%

Lease loyalty incentives have not announced yet.
I call up few dealers & they mention that current rates are not announced from BMW... i am not sure what is the source for above rates...
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      04-04-2010, 07:26 PM   #13
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Quote:
Originally Posted by pharding View Post
Current rates as of 3.25.10

2011 535i Sedan
BMW Buy Rate: .00250
36 Month Residual: 58%
60 Month Retail Finance Rate: 4.9%

2011 550i Sedan
BMW Buy Rate: .00230
36 Month Residual: 54%
60 Month Retail Finance Rate: 4.9%

Lease loyalty incentives have not announced yet.
hey there.. i am in the same market.. are these residual figures the amount you pay back at the end of the lease if u want to buy it, or the amount you pay over the lease.. depending on how you look at it, it could be really good or really bad.. thanks in advance..
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      04-04-2010, 08:03 PM   #14
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Quote:
Originally Posted by stevenross View Post
hey there.. i am in the same market.. are these residual figures the amount you pay back at the end of the lease if u want to buy it, or the amount you pay over the lease.. depending on how you look at it, it could be really good or really bad.. thanks in advance..
The difference between the residual and the MSRP is the amount of the car's value the lessee is paying for over the life of the lease. That plus interest (money factor) divided by the number of months in the lease term gives you your monthly lease payment.

The higher the residual, the less value you are paying for over the life lease and thus, the lower your monthly lease payment.
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      04-04-2010, 10:25 PM   #15
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Plus taxes and fees.
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      04-04-2010, 10:26 PM   #16
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Quote:
Originally Posted by dilsere2 View Post
I call up few dealers & they mention that current rates are not announced from BMW... i am not sure what is the source for above rates...
Those are the current BMW FS rates.
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      04-06-2010, 12:32 AM   #17
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Quote:
Originally Posted by SleepTight View Post
The difference between the residual and the MSRP is the amount of the car's value the lessee is paying for over the life of the lease. That plus interest (money factor) divided by the number of months in the lease term gives you your monthly lease payment.

The higher the residual, the less value you are paying for over the life lease and thus, the lower your monthly lease payment.
thanks sleep tight.. so these residuals are great on the new 5.. on the 535.. you are only paying 42% over the life of ur lease...

are u ordering or did u order one of these babies?
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      04-20-2010, 08:42 PM   #18
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Where does one get the most up-to-date lease/finance rates and residuals?
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      04-21-2010, 05:53 PM   #19
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Where does one get the most up-to-date lease/finance rates and residuals?
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      04-22-2010, 10:27 PM   #20
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Originally Posted by SleepTight View Post
I mean, come June or July, when the rates listed above may be different.
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      04-28-2010, 10:37 PM   #21
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has anyone ordered in the east coast? What is your MF rate for lease?
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      05-01-2011, 11:17 AM   #22
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Those interest rates are a scam. We get our customer's 2.29% for up to 63 months as a STANDARD rate with no manufacturer buydown what so ever. Any credit score over 740 with a financed amount under MSRP automatically qualifies for it. Even stretching to a 72 month term only raises it to about 2.79-2.99%.
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