2011 BMW Lease Rates – January 2011

Published 2011/01/192011/03/29 by G

UPDATE: 1-series and 3-series lease rates have been added! Enjoy!

LeaseCompare didn’t post any info on the 1-series and 3-series on their Facebook page, so that’s what’s missing here. Nevertheless, there have been major changes to BMW lease rates (residuals AND money factors), so you should reconfirm these numbers with your dealer. The M3 convertible’s MF is so low (0.0009), it almost looks like a typo. While the M3 sedan’s 36-month residual jumped like 6% (but it’s MF went out as well). This is a bit unusual to see, but definitely not uncommon. BMWFS has been known to adjust residuals from time to time. Anyway, the M3 convertible looks like the winner in my eyes this month, so if you have been waiting for one, this seems like your lucky month.

Here is a sample calculation based on TrueCar’s Southern California sale price and do not include local taxes. Please note that your dealer calculations may vary due to local fees/taxes.

2011 BMW M3 Convertible
MSRP – $69,625
Sale Price – $66,010
Monthly – $751+ tax
RWG Rating – 91.52

For Dealer Quotes, Click Here.

This month’s lease rates have been brought to you by LeaseCompare.

20 thoughts on “2011 BMW Lease Rates – January 2011”

ksoze on 2011/01/10

Actually the Nov & Dec deals on the M3 convertible were better overall as they included the $1,500 Holiday cash and the car was $500 cheaper. These January lease terms are indeed phenomenal, but are still a few bucks more a month than last moth overall since the cash is gone and the car is priced higher.

Log in to Reply
G on 2011/01/10

Good point. I had forgotten about the holiday cash.

Log in to Reply
Jeff on 2011/01/19

What is the deal with the 1500.00 dealer contribution on the 3 series. I am trying to get the dealer to include it as a cap cost reduction for my lease and they are saying that because they reduced the selling price from MSRP of 54,065.00 to 51,361.75 which is 2,703.25 that their reduction is greater than the 1500 BMW is making them contribute. Is the dealer contribution like dealer cash where the dealer buys the car from BMW at invoice then sells the car for slightly higher, they get the selling price less invoice plus the dealer contribution? Just curious. Looking at 2011 328i Convertible MSRP 54,065.00, selling price 51,361.75, MF .00105, residual 57% for 36/45k with taxes at 7.25% rolled into the lease, payment being 786.00. What do you think.

Log in to Reply
G on 2011/01/19

Jeff, dealer contribution is basically whatever they want to discount you off the MSRP. So if your dealer is already giving you $2.7k off, then that’s your discount. Dealer contribution is not a rebate, so its not in addition to their discounted sale price.
With that in mind, your payments are insane. $786? what’s your drive-off? $0?
Even then it seems kind of high.
Assuming you are paying all of your drive-off costs up front, which I highly suggest you have the dealer itemize, I’m getting a monthly payment of $704.6 per month WITH your taxes included.
Double check your fees. I think they are really nailing you there.

Log in to Reply
Jeff on 2011/01/19

My drive off is zero, payment includes tax (7.25% in IL) with nothing due and signing except first and plates. How are you getting 704

Here’s my Calc:

Car Lease Calculator

MSRP $54,065.00
Base Cap Cost $51,351.75
Additional Lease Costs
Dealer Acquisition Fee $725.00
Title Fee $95.00
Plates $99.00
Dealer Documentary Fee $156.08
Electronic Filing $25.00
Gross Capitalized Cost $52,451.83

Capitalized Cost Reductions
Down Payments $-
Trade In Allowances $-
Trade In Pay Off $-
Lease Cash $-
Marketing Support Cash to Dealer $-
Net Capitalized Cost $52,451.83

Lease Terms and Taxes
Residual Percentage 57%
Residual Value $30,817.05
Money Factor 0.00105
APR 2.5200%
Term of Lease 36
Sales Tax 7.25%

Calculation of Lease Cost
Depreciation $21,634.78
Finance or Rent Charge $3,147.56
Sales Tax on Lease $3,723.00
Total of All Payments $28,505.35

Total Lease Payment $23,921.48

Calculation of Monthly Lease Payment
Monthly Lease Payment $688.40
Sales Tax on Lease Payment $103.42
Total Monthly Lease Payment $791.82

Log in to Reply
G on 2011/01/19

Ooooh you live in IL!!! No wonder! In IL, you pay sales tax on 100% of the car’s sale price. That would explain the $103 sales tax. Okay, now that makes sense. I don’t see anything strange on the fees, so that’s good. Looks pretty straight forward. Makes sure to cross shop the sale price a little just to make sure that’s the lowest price you can get. Other than that, It looks good since it’s a $0 drive-off deal.

Log in to Reply
Jeff on 2011/01/19

ok, I thought I was going crazy when I saw your 704 figure, I calc out my leases in excel so I was afraid I had a problem with my sheet. Yeah, Illinois sucks. What do you think of that BMW Owners Choice plan for people who live in Illinois where the taxes suck on leases. Ever heard of it or know anything about it.

Log in to Reply
- G on 2011/01/20
  
  @jeff. Yup I don’t like that program. Its like a lease in a sense, but it requires that you either purchase the car from them OR sell it back to them at the end. That means you have to assume the risk of depreciation, instead of the bank. That could come back to haunt you 3 years down the road should your car be worth far less than anticipated. If i wanted to do Owners Choice, I’d just buy the car. It makes more sense that way.
  
  Log in to Reply
Mike on 2011/01/19

G great site. I got a question, whats with the bigger markup on the 1 & 3 series for 2011? In 2007 I had a brand new 335i $42,000 sticker, 0 down just paid the fees that I had to pay in NJ for $521.89/month. Yesterday go to dealer & for a 2011 135 with 0 down they wanted $579 for a lease. Both the 2007 & 2011 were 12,000 miles for 36 months. At the price he was giving me its not worth to pay over half of the cars sticker price in a 3 year lease. Whats changed that a cheaper sticker on a 135 could cost more monthly than a more expensive 335 did cost 4 hours ago (back when the 335 just came out).

Log in to Reply
- G on 2011/01/20
  
  Mike, residual values and money factors are key in leasing. Different cars have different residuals, therefore, different payments. Its not all about down payments and monthly payments when you lease, so comparing a 335i 3 yrs ago with a 135i thats brand new may not be a fair. Remember that leases are based on projected resale value, therefore, that can change over time as well. Not to mention the interest rates. There’s a right time to lease a 1-series and a wrong time, the key is hoping that you can time it right and get the best deal you can get. I believe last month was a better time to lease a BMW.
  
  Log in to Reply
Mike on 2011/01/19

Actually to confirm I did pay $2500 on the 2007i originally that included my first payment & all the titles & everything else before receiving the car.

Log in to Reply
Jeff on 2011/01/20

G, thanks for your help. I think I just locked down my deal, he broke out the tax credits. Doing 728 for 36mo/36,000 miles with only 1st due at signing and IL taxes rolled into the lease. Residual 59%, MF .00125. I had to throw him a bone going .0002 over the BMWFS MF but he is throwing in a 1812 tax credit. Here are the details:

Car Lease Calculator

MSRP $54,065.00
Base Cap Cost $51,315.00
Additional Lease Costs
Dealer Acquisition Fee $725.00
Title Fee $99.00
Plates $95.00
Dealer Documentary Fee $156.08
Electronic Filing $25.00
Gross Capitalized Cost $52,415.08

Capitalized Cost Reductions
Down Payments $-
Trade In Allowances $-
Trade In Pay Off $-
Lease Cash $-
Marketing Support Cash to Dealer $-
Net Capitalized Cost $52,415.08

Lease Terms and Taxes
Residual Percentage 59%
Residual Value $31,898.35
Money Factor 0.00125
APR 3.0000%
Term of Lease 36
Sales Tax 7.25%

Calculation of Lease Cost
Depreciation $20,516.73
Finance or Rent Charge $3,794.10
Sales Tax on Lease $1,908.34 <——S/B $3,720.34 reduced by tax credit
Total of All Payments $26,219.17

Total Lease Payment $26,170.91

Calculation of Monthly Lease Payment
Monthly Lease Payment $675.30
Sales Tax on Lease Payment $53.01
Total Monthly Lease Payment $728.31

Log in to Reply
Mike on 2011/01/21

G thanks for the info above. I get that residual & money factors are the important factor in leasing. Is it that overall BMW 1 series & 3 series are better to buy currently (at least in this month) than to lease? You mentioned about that comparing a 2007 335i (was brand new when I got the lease) vs a 2011 135 (would be new) is not necessarily a fair comparision. But if the 335 sticker was approximately 3,000+ more, but the payments are $60 less per month, would that show anything? Thanks again for the help, as I am just trying to grasp the full concept for ultimately deciding what to do.

Log in to Reply
- G on 2011/01/25
  
  @mike. Your monthly payments is made up for the difference between the sale price and the residual value plus the financing (MF) and the sales tax. Therefore, cars that lose value quicker over the course of the lease generally cost more to lease. Here’s an example using the following assumptions:
  
  -Sales taxes are same on both cars.
  -Money Factor is the same on both cars.
  
  Car A: MSRP of $40,000 and a projected residual of 50% over 3 years ($20,000). Sold for $36,000. Amount of lease loan is $16,000.
  Car B: MSRP of $35,000 and a project residual of 40% over 3 years ($14,000). Sold for $33,000. Amount of lease loan is $19,000.
  
  This mean that car B, even with a lower MSRP, will cost more to lease because the loan is bigger. Your comparison of a 2011 135i and a 2007 335i falls somewhere in this example. Since I don’t have numbers for the 07 335i, I can’t exactly dissect the deal and compare it to the 2011 135i. However, you can see how your sale price and residual value affects your payments. This is why you can lease a G37 for far less than you would on a 328i, even though the G37 probably has a higher price tag.
  
  Log in to Reply
Mike on 2011/01/26

G awesome info, thanks so much for that.

Log in to Reply
Paul on 2011/01/27

G I came across this at http://autos.aol.com/cars-BMW-X5-2011/incentives/

is this correct is the MF 1.9 or 4.9

Do you know about the $3,500 Cash back is that off the invoice?

Log in to Reply
- G on 2011/01/28
  
  Paul, 1.9% and 4.9% is not the money factor, that’s the interest for financing a purchase. BMWFS doesn’t publish their money factors in percentages. That’s something GM and Ford usually do.
  As for the rebate, there is no rule that says its off invoice. From what I understand, BMW dealers will rarely sell you a car at invoice PLUS rebate. Maybe $500 over invoice + the rebate. A common practice is to ask the dealer for a discount then apply the rebate. I would recommend referencing TrueCar to see what your local prices look like.
  
  Log in to Reply
Brian Gibson on 2011/02/05

G, any comment on BMW’s multiple security deposit program? Seems much better than a cap coat reduction. Any stories of big deposits gone bad? I have a 3 series going off lease in 3 months and thinking about the 5. The multiple MSD program might make the payments more livable.

Thanks.

Log in to Reply
- G on 2011/02/09
  
  @brian. I think Jake (one of my blog readers) has had some experience with MSD and swears by them. I personally think that MSDs are always a better option than cap reduction. However, if you somewhere else you can put your money (like an investment with guaranteed higher returns), that wouldn’t hurt either. The whole point is trying to save yourself some money and keeping your cash safe in the event of theft or total-loss accident.
  
  Log in to Reply
Brian Gibson on 2011/02/05

Make that “cost”.

Log in to Reply

RIDE with G

For those who lease cars

2011 BMW Lease Rates – January 2011

20 thoughts on “2011 BMW Lease Rates – January 2011”

Leave a Reply Cancel reply