My Take: Rounding off the BMW lease rates, the Z4, 6-series and 7-series all have pretty decent leases rates in my opinion. Nothing that would want me to add them to the list, though. These cars have high enough residuals (except for the 7-series, which has low money factors) that putting down some MSDs should help lower the over monthly payment on the lease. If you don’t know what MSDs are, please raise your hand. Now here’s an email I got from Jake some weeks ago explaining why MSDs are a good thing:
“Hi G
I just to let you know I turned on my brother to your site. He was going to put $3k plus fees down to help with cap cost (lower) payment, but after seeing your site he put 8 MSDs to buy down the money factor. Fast forward 3 months, his X5 is gone (crash); he’s fine; INS. Gap, etc. takes care of it all. He saved a few grand just by reading your site. From the whole “M” famly THANKS for the info.”
There you have it folks, go with MSDs if the money factor is too high. Surprisingly enough, most people opt for cap reduction, which is just plain silly. So before you decide to put money down, ask your dealer if the bank allows you to buy down the money factor. You just might be glad you did.
Check out the new LIST for the recommended leases of the month.
2009 BMW Z4
2009 BMW Z4 sDrive30i
24-month | 15k miles | residual 63% | .00125 base money factor
36-month | 15k miles | residual 56% | .00125 base money factor
48-month | 15k miles | residual 36% | .00265 base money factor
60-month | 15k miles | residual 30% | .00265 base money factor
2009 BMW Z4 sDrive35i
24-month | 15k miles | residual 63% | .00145 base money factor
36-month | 15k miles | residual 56% | .00145 base money factor
48-month | 15k miles | residual 34% | .00265 base money factor
60-month | 15k miles | residual 28% | .00265 base money factor
2009 BMW 6-Series
2010 BMW 650i Coupe
24-month | 15k miles | residual 58% | .00200 base money factor
36-month | 15k miles | residual 54% | .00200 base money factor
48-month | 15k miles | residual 32% | .00265 base money factor
60-month | 15k miles | residual 26% | .00265 base money factor
2010 BMW 650i Convertible
24-month | 15k miles | residual 62% | .00200 base money factor
36-month | 15k miles | residual 57% | .00200 base money factor
48-month | 15k miles | residual 33% | .00265 base money factor
60-month | 15k miles | residual 27% | .00265 base money factor
2010 BMW M6 Coupe
24-month | 15k miles | residual 62% | .00200 base money factor
36-month | 15k miles | residual 57% | .00200 base money factor
48-month | 15k miles | residual 33% | .00265 base money factor
60-month | 15k miles | residual 26% | .00265 base money factor
2010 BMW M6 Convertible
24-month | 15k miles | residual 62% | .00200 base money factor
36-month | 15k miles | residual 57% | .00200 base money factor
48-month | 15k miles | residual 35% | .00265 base money factor
60-month | 15k miles | residual 28% | .00265 base money factor
2009 BMW 7-series
2009 BMW 750i
24-month | 15k miles | residual 49% | .00090 base money factor
36-month | 15k miles | residual 44% | .00090 base money factor
48-month | 15k miles | residual 33% | .00265 base money factor
60-month | 15k miles | residual 27% | .00265 base money factor
2009 BMW 750Li
24-month | 15k miles | residual 50% | .00090 base money factor
36-month | 15k miles | residual 45% | .00090 base money factor
48-month | 15k miles | residual 33% | .00265 base money factor
60-month | 15k miles | residual 28% | .00265 base money factor
@all
There is absolutely no doubt that MSDs give you a return, through saving on the lease payment, that can’t be beat or equaled by any investment that does not involve substantial risk. Also, the money you save is not taxed and you save sales tax on the lease payment in most states. I’m thinking of you OR. 9% tax, Calli 7% tax and new Hampshire 0% sales tax (lucky basterds) lol.
(((save)))
$30 $40 dollors maybe more per month with max msd’s
I wish I knew about this years ago.
Is this commonly offered by all lease companies? Never really heard of the practice until I read it here.
Also, I suppose the savings depends on the discount you’ll get on the MF. People shouldn’t just do MSD’s blindly. Do the math to calculate the savings and weight the benefits of parking that cash for 3 years versus higher monthly payments.
@spicymikey. most dealer’s i’ve spoken to, offer MSDs. However, it is usually only offered on leases that have high money factors. If a lease has a sub- 0.00100 MF, chances are, they won’t allow it. But you are correct, people should not do MSDs blindly, definitely do the math.
Raising my Hand**
I’m guessing…Monthly Security Deposit? (ie Paying x amount of months upfront)
@mikeo. Multiple Security Deposits or MSDs is money you pay upfront to effectively “buy down” the interest rate of your money factor. For example, if each $500 security deposit lowers your money factor by 0.00007 and you are allowed up to 8. You can basically lower your money factor by 0.00056 if you give BMWFS $4000. In the event of a total-loss accident, theft or at lease-end, you will get the $4000 back. You will lose your deposit if you try selling the car before the end of your lease though, so be careful with that. I learned the hard way with my security deposit when I leased my 325i. To put things in perspective for you guys, I paid $553 per month for 36 months with 12k miles per year on my very first lease, which was my 325i. MSRP was around $32k. I also put down about $3000 in the form of a trade-in. Yeah, I got majorly screwed. But i was a lease virgin at the time and I didn’t have online resources to help me out. Now I know better. 😀
@all
I know it’s a hard sell to put $3 4$k to a car company, but can you do better? If you can get more than 10% more a year from your cash go for it, it’s like a cd with a rate of 10% + not to bad
Try it your self (175 mf reg) (125 mf with max MSD) see how much you could save on your deal each msd is your payment rounded to next $50 like a payment of $526 is a $550 sec dep (BMW) (((I’m not sure))
the sweet spot is a $40k + ride with a middle MF rate like a x5 645 etc. I know it’s not for all but it’s a another way to lease.
@g
I got hosed back in 2002 with a 330xi we learn from are mis haps I payed near sticker omg i was so crazy BMW virgin at the time.
@jake. haha i paid $500 under sticker. haha but i’m sure i got hosed on the fees.
@supercharged. Refer to comment 34 I posted. That’ll all I know about MACO/training. Also. if you go back to june rates , you will see a comment from Paul that states he was able to get the dealer to waive the training (comment 64). If it were me, I would walk away from a deal if it had those fees, no matter how good it was. It’s about the principal. I can’t stand people trying to nickle and dime me. Specially since its not just one nickel or dime, try thousands of them.
For MSD, are you allowed to pay for it with a credit card. Some credit cards have a cash back feature that may sweeten the deal.
@supercharger. yes, but some dealers have a cap on how much you can put on a credit card. I’ve heard anywhere from $2000 to about $4000. It seems to vary from dealer to dealer. Definitely not a bad idea if you have one of those cashback cards.
Which fees are negotiable? And can anyone tell me why the bank fee is $900??? That’s just ridiculous
@gene. doc fee is generally negotiable and anything else that is not government related or the bank acq fee. the bank acq fee seems to vary from state to state. Those are imposed by the bank, therefore, the dealer can’t just waive it without taking a hit. If you don’t pay it, they have to. BTW. I will get to your email later today. I’ve had a pretty busy weekend so far and still got more last minute bdays to attend to. not to mention being on call for work! sucks.
what are the current lease deals for a new 750i or iL these days?
@dave. seems like the only thing going on right now is $3000 lease cash and 1.9% financing for up to 60 months.
I am getting a Z4 35i at invoice with 66% residual at 30months and a 0.0005 mf…..I dont think anyone can beat this deal!!!! G you should have told everyone about this one…
@shaq. thanks for sharing the info. in all honesty, i didn’t really know about a 30month lease program. Regardless, I am glad you got an offer like that because that’s very attractive. Maybe other Z4 shoppers should inquire about that deal as well.
True.
BMW is running a special promotion now on the Z4.
66% residual on a 30 month lease (10k per year)
.0005 Money factor.
I was debating whether to get the Z4 or the 335 but after test-driving the Z4, I knew it was not for me 🙂
Otherwise, a good deal in my opinion