Topic: BMW 328I XDrive Lease payments

[Hammy]

I am looking at leasing a 2011 BMW 328i XDrive, I am being quoted a $658 a month all in for 4 years which does not seem bad.  I test drove this car and it is  a sweet ride.  Anyone else have any info on what they paid to lease one of these babies?  Current offer is $4,000 discount and 1.9% lease rate.

Also, if anyone has any info to offer on leasing a bmw in general I would be grateful to hear about it.

Thanks.

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[sailor723]

Hard to comment without knowing how the car is optioned but that sounds relatively decent. Our 328iX  is an Executive edition package plus it has Dakota leather,automatic tranny and metallic paint. The discount was $4500 off MSRP plus N/C Sirius Sat radio with a one year subscription installed by the dealer. I can't really comment on the lease payment  as we bought and I don't remember what was offered at the time in terms of leasing deals.

I would point out that the 2012 3 series is a completely new model and that the closer we get to them being on showroom floors the better the deals on '11's should be.

[Ex-airbalancer]

$31,500 in lease payments over 4 years, what is the price of the car, and what is the buy back

[Hammy]

Sorry I should have provided more details, here is the scoop:

2011 BWM 328i X-Drive Sedan with Premium Package

Msrp: 44050
Options: 3604 (includes dealer fee, freight and pdi and premium package)
Less Delivery Credit ($4,000)

Total Financed: 43654
Residual: 18060 (48 mths) 21584 (36 mths)
Int Rate: 1.9%
pmt: $657 for 48 months or $750 for 36 months

More than likely would end up buying the vehicle out ($399 lease end purchase fee), hard to find a four year old BMW for $18,000, could probably sell it and make a few of my lease bucks back at that point, what do you think?

Thanks

[Ex-airbalancer]

31,536 in lease payments, + 18,060(+ tax) in residual = 49,600
SO you want to spend 6gs just to lease, I guess it is OK, it is your money

[tpl]

Looked at another way AirB      $43654 + tax at say 14%   is $49765  ( I assume that "total financed" is before tax from the calculations )   So it works out the same as leasing and buyout...near enough anyway.   

[Ex-airbalancer]

Looked at another way AirB      $43654 + tax at say 14%   is $49765  ( I assume that "total financed" is before tax from the calculations )   So it works out the same as leasing and buyout...near enough anyway.   

I guess that right, if his lease payments include taxes

[sailor723]

He said "all in" so I would assume that's HST included...doesn't sound like that bad of a deal to me.

[tpl]

Yes, I also assumed that those lease payments were all in including taxes on each payment...Airb did as well I think. Hence it works out close at the low interest rates involved.     Although there would be interest added in in the financing I suspect there would be a deposit as well which would make it all come out close.

Too frigging complicated.  I definitely prefer the trade-in plus a thick wad of $100 bills and walk away clear.

[sailor723]

Yes, I also assumed that those lease payments were all in including taxes on each payment...Airb did as well I think. Hence it works out close at the low interest rates involved.     Although there would be interest added in in the financing I suspect there would be a deposit as well which would make it all come out close.

Too frigging complicated.  I definitely prefer the trade-in plus a thick wad of $100 bills and walk away clear.

I know what you mean....although a very low rate combined with a sensibly sized balloon payment can make sense somethimes too. (Why pull money out of a REIT or something like that paying 5 or 6% if you can get 2 or 3% money from the manufacturer?)

[Julie]

31,536 in lease payments, + 18,060(+ tax) in residual = 49,600
SO you want to spend 6gs just to lease, I guess it is OK, it is your money

If you buy out the car "cash" (meaning you don't finance any portion of the buy-out price), you are not losing any money by leasing, rather than financing.

[Hammy]

Yes the $658 payment does include tax so it seems not that bad to me. 

I never keep a car over four years generally although I do have my pilot for 4 1/2 now.

Thanks for the feedback so far.

[Julie]

EDIT:  Put it another way.  With leasing, you are just paying for the "depreciation" amount during the term of your lease.  At the end of the term, you can decide to:

- return it - which is the same thing if you are trading in a car (you've bought cash or financed) after 3 or 4 years

or

- buy it out - which is the same thing if you are buying a 3 or 4 year old car.

If the lease rate is more attractive than the finance rate, you could end up with a better deal (assuming you buy out the car at the end without further financing).  Also, if the car is involved in an accident during the lease term, the depreciated value of the car is the leasing company's headache, not yours.  You can return the car and walk away without losing the money you would have lost (had you financed the car and tried to trade it in after 3 or 4 years).

[Gardiner Westbound]

Current offer is $4,000 discount and 1.9% lease rate.

A $4,000 discount off a bogus list price at the end of the model year for a car that is about to be superseded by a new and improved version wouldn't make my heart sing or open my checkbook.

Shop for the car then the lease. Roll the down payment into the low lease interest rate. Reject phony acquisition fees. Negotiate the excess mileage amount and rate. Remove administration and transfer fees. Limit the end of lease damage shakedown by excluding fair wear and tear, damage that can be reasonably expected to affect a vehicle in normal use for several years.

There appears to be one only BMW dealer in your area. Feign interest in other makes, Audi, Mercedes, Infiniti, whatever. Make the dealer compete for your business, or engage a reputable buying service.

[Julie]

Yes the $658 payment does include tax so it seems not that bad to me. 

I never keep a car over four years generally although I do have my pilot for 4 1/2 now.

Thanks for the feedback so far.

The payment isn't really the amount you should be concerned about.  But rather, how much over invoice of the car you can get it for.

[Julie]

A $4,000 discount off a bogus list price at the end of the model year for a car that is about to be superseded by a new and improved version wouldn't make my heart sing or open my checkbook.

Try to negotiate "up" from invoice rather than "down" from MRSP.  I use the invoice.  *However*, invoice does not include *additional* manufacturer to dealer rebates.  Which could be up to thousands of dollars.  IF the manufacturer really wants to move the vehicle.

In addition, there is the context of the vehicle itself.  And where they are being sold (how much competition nearby?)

The new 3 series is not slated to arrive in Canada until the summer of 2012.  BMW had increased their production of the current 3 series to account for the gap and for the fact that this model is still very popular (most popular in its class). 

EDIT:  A new model will also come with higher financing/ lease rates and lower discounts.  BMW has traditionally not had to make much concession to move their 3-series models.

[JSCC]

A $4,000 discount off a bogus list price at the end of the model year for a car that is about to be superseded by a new and improved version wouldn't make my heart sing or open my checkbook.

Try to negotiate "up" from invoice rather than "down" from MRSP.  I use the invoice.  *However*, invoice does not include *additional* manufacturer to dealer rebates.  Which could be up to thousands of dollars.  IF the manufacturer really wants to move the vehicle.

In addition, there is the context of the vehicle itself.  And where they are being sold (how much competition nearby?)

The new 3 series is not slated to arrive in Canada until the summer of 2012.  BMW had increased their production of the current 3 series to account for the gap and for the fact that this model is still very popular (most popular in its class). 

EDIT:  A new model will also come with higher financing/ lease rates and lower discounts.  BMW has traditionally not had to make much concession to move their 3-series models.

Judging from what the OP is stating, the $4000 seems to be a factory rebate, which means not even a penny has been taken off their full markup (which is typically 8%-10% of the listed MSRP = $3600-$4400).

I have heard but cannot confirm $10000 discounts ($4000 rebate + $4000 markup + $2000 frieght and PDI) on 2011 328i DEMO models for "cash deals".

[Gardiner Westbound]

This item from today's Globe and Mail says there is an $1,800 dealer discount and a $4,000 factory discount on the 2011 BMW 328i. Nor has the dealer adjusted the humungous freight and PDI charges or reduced his markup. Upsells, mystery charges and stealth fees should also be ruled out.

http://goo.gl/8fx91

[Cord]

This item from today's Globe and Mail says there is an $1,800 dealer discount and a $4,000 factory discount on the 2011 BMW 328i. Nor has the dealer adjusted the humungous freight and PDI charges or reduced his markup. Upsells, mystery charges and stealth fees should also be ruled out.

http://goo.gl/8fx91

I believe the "estimated" indicates that is the amount that Car Cost Canada believes that a dealer will discount (i.e. reduce his markup). They show the exact same estimated dealer discount for the Mercedes in that article.

[Gardiner Westbound]

This item from today's Globe and Mail says there is an $1,800 dealer discount and a $4,000 factory discount on the 2011 BMW 328i. Nor has the dealer adjusted the humungous freight and PDI charges or reduced his markup. Upsells, mystery charges and stealth fees should also be ruled out.

http://goo.gl/8fx91

I believe the "estimated" indicates that is the amount that Car Cost Canada believes that a dealer will discount (i.e. reduce his markup). They show the exact same estimated dealer discount for the Mercedes in that article.

The knowledge buyer attends showrooms armed with solid pricing information and a fair target price. He plays dealers off against each other. A typical salesman sells two to five cars a week. He does his schtick a dozen times a day, you not so much.

The Consumer Reports' New Car Price Report provides the buyer with true Canadian dealer cost, holdback, rebate and incentive information at US$30 a report, less for multiple reports. Apply a reasonable mark-up and let the games begin. Fax it to several dealers. Invite them to reply with their best delivered price. Tell them you will buy from the least costly dealer.

http://crcanadacars.org/