Surprisingly enough, not a lot of big changes. Most numbers carry over from February with only a few exceptions. Remaining 2011 models have a 30-month sweet spot (it was 33-months in Feb) and a reduced MF to help with the lack of months to spread the payments over. Below, you will see a sample calculation of the 2012 328i sedan. The discount off MSRP is a measly 1% according TrueCar and the MF is a bit high. I guess that’s the price you pay to roll in a redesigned 3-series. Those who can hold out, should. Those who won’t settle for anything but a BMW, I’d love sell you one right about now! 🙂
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.
2012 BMW 328i Sedan
MSRP – $35,795
Sale Price – $35,405
Monthly – $479+ tax
RWG Rating – 78.9
Support my site by getting your “no obligation” quotes from:
TrueCar
Edmunds.com
CarsDirect.com
2011 BMW 328i Sedan
36 Month – Residual 53% of MSRP – .00185 Base Rate
2011 BMW 328xi Sedan
36 Month – Residual 58% of MSRP – .00180 Base Rate
30 Month – Residual 64% of MSRP – .00180 Base Rate
2011 BMW 335i Sedan
36 Month – Residual 53% of MSRP – .00195 Base Rate
2011 BMW 335xi Sedan
36 Month – Residual 53% of MSRP – .00180 Base Rate
30 Month – Residual 61% of MSRP – .00180 Base Rate
2011 BMW 335d Diesel Sedan
36 Month – Residual 53% of MSRP – .00195 Base Rate
2012 BMW 128i Coupe
36 Month – Residual 61% of MSRP – .00195 Base Rate
2012 BMW 128i Convertible
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 135i Coupe
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 135i Convertible
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 328i Coupe
36 Month – Residual 61% of MSRP – .00195 Base Rate
2012 BMW 328xi Coupe
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 328i Wagon
36 Month – Residual 61% of MSRP – .00180 Base Rate
2012 BMW 328xi Wagon
36 Month – Residual 60% of MSRP – .00190 Base Rate
2012 BMW 328i Convertible
36 Month – Residual 63% of MSRP – .00195 Base Rate
2012 BMW 335i Coupe
36 Month – Residual 61% of MSRP – .00195 Base Rate
2012 BMW 335is Coupe
36 Month – Residual 60% of MSRP – .00195 Base Rate
2012 BMW 335xi Coupe
36 Month – Residual 61% of MSRP – .00195 Base Rate
2012 BMW 335i Convertible
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 335is Convertible
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 328i Sedan – ALL LINES
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 335i Sedan – ALL LINES
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW M3 Coupe
36 Month – Residual 59% of MSRP – .00195 Base Rate
2012 BMW M3 Convertible
36 Month – Residual 60% of MSRP – .00195 Base Rate
2012 BMW 528i Sedan
36 Month – Residual 58% of MSRP – .00190 Base Rate
2012 BMW 528i xDrive Sedan
36 Month – Residual 59% of MSRP – .00190 Base Rate
2012 BMW 535i Sedan
36 Month – Residual 56% of MSRP – .00185 Base Rate
2012 BMW 535i xDrive Sedan
36 Month – Residual 56% of MSRP – .00185 Base Rate
2012 BMW 550i Sedan
36 Month – Residual 56% of MSRP – .00190 Base Rate
2012 BMW 550i xDrive Sedan
36 Month – Residual 56% of MSRP – .00190 Base Rate
2012 BMW 550i GT xDrive Sedan
36 Month – Residual 60% of MSRP – .00195 Base Rate
2012 BMW 650i Coupe
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 650i Convertible
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 740i Sedan
36 Month – Residual 63% of MSRP – .00190 Base Rate
2012 BMW 740Li Sedan
36 Month – Residual 63% of MSRP – .00190 Base Rate
2012 BMW 750i Sedan
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 750i xDrive Sedan
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 750li Sedan
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW 750li xDrive Sedan
36 Month – Residual 62% of MSRP – .00195 Base Rate
2012 BMW X3 xDrive28i SUV
36 Month – Residual 55% of MSRP – .00195 Base Rate
2012 BMW X3 xDrive35i SUV
36 Month – Residual 55% of MSRP – .00195 Base Rate
2012 BMW X5 xDrive35i Premium SUV
36 Month – Residual 59% of MSRP – .00195 Base Rate
2012 BMW X5 xDrive35d Diesel SUV
36 Month – Residual 56% of MSRP – .00185 Base Rate
2012 BMW X5 xDrive35i Sport Activity SUV
36 Month – Residual 58% of MSRP – .00195 Base Rate
2012 BMW X5 xDrive50i SUV
36 Month – Residual 61% of MSRP – .00195 Base Rate
2012 BMW X5 M SUV
36 Month – Residual 54% of MSRP – .00195 Base Rate
2012 BMW X6 xDrive35i Crossover
36 Month – Residual 60% of MSRP – .00195 Base Rate
2012 BMW X6 xDrive50i Crossover
36 Month – Residual 61% of MSRP – .00195 Base Rate
2012 BMW X6 M Crossover
36 Month – Residual 53% of MSRP – .00195 Base Rate
2012 BMW Z4 sDrive28i
36 Month – Residual 65% of MSRP – .00195 Base Rate
2012 BMW Z4 sDrive35i
36 Month – Residual 65% of MSRP – .00195 Base Rate
2012 BMW Z4 sDrive35is
36 Month – Residual 65% of MSRP – .00195 Base Rate
First, this is hugely valuable information G, so thank you!
I am reverse engineering the March 328xi 30-month lease offer advertised on BMW’s website so I can negotiate a lease on the same car w/ slightly different installed options. While doing that I ran into an interesting question. Is there a hidden factory to dealer incentive on these cars right now (beyond the advertised $2500 cash allowance)?
The reason I ask is this. In order to get the advertised $328 pre-tax monthly payment for a 30 month, 10k mile lease given the MSRP listed in the deal, the $2000 down payment in the deal terms, and the residual and money factor listed above (.0018 and 67% for 10k miles), the net capitalized cost has to be $33,475. That means the cost before down payment (selling price) is $35,475. If I assume that BMW is not going to advertise a deal that provides its dealers less than a 5% profit margin, the implied dealer invoice is about $33,785 (this equals the $35,475 selling price divided by 1.05). However, when I take the factory invoice from Edmunds ($37,650), add $300 for advertising, and subtract the $2500 cash allowance, I arrive at an estimated dealer invoice of $35,450, which is $1665 above the invoice that would provide a 5% margin and almost exactly in line with the $35,475 selling price, implying zero margin. This implies there might be an additional hidden factory to dealer incentive to allow the dealer to make a margin under the advertised lease terms. If this incentive doesn’t exist, then it looks like dealers make no margin on this offer. Is that possible?
The only other possibilities I see are that BMW is using this promotion as a traffic draw and dealers really won’t have any direct profit from it, or that BMW is leaving it up to the dealers to scratch out their margin on doc fees and F&I shenannigans, or that simply dumping the old 3-series inventory and associated financing costs is good enough for dealers to not mind BMW offering a zero profit promotion.
Any thoughts anyone?
@GL. You aren’t taking into consideration the dealer’s discount/contribution. It takes three players in order to make this lease work. $2500 from the manufacturer, $2000 from the customer and about another $2000 from the dealer. I was able to replicate the deal by doing the following…
I assumed the dealer would sell the call at around $500 over factory invoice (most BMW dealers do sell the 3-series at $500 over factory invoice), which is about $2k off MSRP. Then I applied the customers $2000 cap reduction. Then another $2500 from the factory. That gave me a sale price of about $33,500 based on a $40145 MSRP. Using the lease rates above (30-months, 67% residual, 10k miles, .0018 MF), I got $328.81 before taxes and inceptions.
The dealer still makes a nice chunk of change since the dealer cost is around $1000 lower than the factory invoice.
@G. I was taking into account the $2000 discount off MSRP from the dealer but I did not know that dealer cost is $1000 lower than factory invoice. I’m not sure why that would be since BMW has no holdback, unless there is an additional factory to dealer incentive or the factory invoice is totally bogus. That $1000 is analogous to the $1665 I referenced in my first message, so I guess that answers my question. If dealer cost is $1000-1500 lower than factory invoice and I pay $500 over invoice, the dealer nets $1500-2000 and comes out with a margin of 4-6%, so totally satisfactory for them especially considering all the new 2012s rolling in the door.
I am targeting the same car but with nav and metallic paint, so about $2500 higher MSRP. My goal is a selling price that provides the dealer a 3% margin, and it looks like that price is right at factory invoice or perhaps a little below. And of course this assumes no doc fee, and every dollar of doc fee they add has to come off the selling price.
Does that sound right? Just want to make sure I understood your message correctly.
Thanks again G!
@GL. Lets use your situation as an example then…Here’s what we know.
MSRP – $42,775
Factory Invoice – $39,865
Dealer Cost – $38,900 (est.)
RES – 67%
MF – .00180
You want to start at about $500 over factory invoice at most ($40365), which would be a dealer’s discount of $2410 off MSRP. Then you want to take the $2500 allowance, thus lowering the cap cost from $40365 to $37865. Then, if you want, you can contribute $2000 towards lowering the cap cost, so it lowers the cap cost further to $35865.
Target Cap Cost: $35865
This will net you a monthly payment of $356 per month BEFORE tax. With 1st month, acquisition, dmv, marketing/state fees AND $2000 cap contribution due at signing. That’s probably going to be about $3500 to $4000 in total for inception fees. If you skip the $2000 cap contribution, then your payments go up to $426.60, but you will pay about $1500-$2000 at drive-off instead.
The dealer’s profit margin, assuming they sold the car at factory invoice is about 2.5%. So if you planned to have the dealer pay about 3%, you’d have to get a sale price of a few hundred over factory invoice, then apply the $2500 allowance from BMW to bring the cap cost down further.
Rates back in NL are way higher due to taxes
first time writing. great site! Help me out here G.
What are you thoughts on BMW offering 2500 allowance + 1840 options credit available (335xi, 2011) + paying first two payment up to $500?
Seems like a REALLY good deal? Do you see it getting any better?
Where’s the 640 coupe and convertible? They weren’t on the list last month either.
Also, are there 640 grand coupe numbers yet?
@bmw? The remaining 2011 deals are very good. Specially the 30-month term. The downside is that 2.5 yrs isn’t a long time, but the residual is at it’s best during that term. Plus all the cash really make the deal exceptional. Just make sure there’s some dealer contribution in all of this. Manufacturing cash/allowances are from BMW, not the dealer, so you probably want a little extra from the dealer to make the deal sweeter. Does it get better? I don’t think it will because it will come at a cost of selection. 2012 production is in effect so the deal is more like a “clearance”.
@lee. sorry, i don’t get the full list of lease rates like I did when LeaseCompare was sharing it. What I post is pretty much up to what my contact is willing to give me.
Whoa, never do cap cost reduction. Never.
With all BMWs if you’re putting cash into leasing you gotta do Multiple Security Deposits. Each security deposit removes 0.00007 from the MF. You can do a max of 7 extras. So that’s a MF reduction of 0.0049.
Never do cap reduction. MSDs if the car gets munched, you get it all back and if you turn it in, you get them all back. Cap cost reductions = money lost.
Hi G, I’m thinking of leasing a 2012 328i coupe this month and wanted to know what this $1000 cash incentive is all about? Also, do you expect the MF to lower in April? Are there any dealers in SoCal that are offering invoice or are they all $500 over invoice? Lastly, would a dealership give me more $$ for a trade in VS. carmax or less? thanks in advance.
@bryan. I expect BMW lease rates to remain the same in April. Most BMW dealers want $500 over invoice AND some will charge MACO and Training on top of that. That puts you at about $1000 over invoice, maybe more. The $1000 is just cash you get if you finance your lease or purchase through BMWFS. For trade ins, you really have to go and get the car appraised. Typically, Carmax does give a little more, BUT dealers are more flexible with their offers. This basically means that Carmax’s offers are final, whereas dealer offers can go up and down depending on how bad they want to sell you a car.
Hi G- great site, was referred here by a friend and hope you can help me out as well.
Got a question for you as I’m in the position of leasing a 2012 328i sports line with premium package.
MSRP – 41,895 (based on truecar.com/dealership)
Sales price – 40,374 (based on truecar.com)
Below amounts/%’s were obtained from my local dealer (Alhambra, CA)
Money Factor – 4.9%
Residual Value – 62%
Acquisition/Bank Fee – $925
Dealer Doc Fee – $45
Other Fees – DMW fee of $600
Disposition – $350
Taxes 8.75%
Security deposit – $4,500
The lease calculator spit out a monthly payment of $535 and $582 (incl. tax).
So based on what I have, it will be down deposit of $1,920 ($925+45+600+350) with $582 per month.
Do you think this is a good deal or if it can be done better? I was also reading through your site and it is recommended that down deposit should always be $0. However, when I asked the dealer the salesman said that was not possible. Would it only be higher end cars that would require a down?
Thanks for your time and look forward to your reply!
@vince. You aren’t really getting a good deal when you are paying 4.9% in interest and getting barely $1500 off sticker on a $42k car. The MSDs certainly help, but I still think this is too steep of a price to pay so early into the model year. I recommend waiting until Summer or Holidays. Those two seasons usually have decent deals floating around. As for the $0 down…that’s not a deposit. That’s cap cost reduction. BMW usually requires one security deposit. Then if you want to “buy down” your MF, you can put multiple ones, which will reduce your interest rate further. That money will be refundable one the lease matures. Not sure what your salesman is smoking, but Cap Reduction (AKA money down) is not required. You have to pay your fees, but you can roll that into your lease payments should you choose too. I wouldn’t do that since the MF is kind of high.
My honest opinion on the new 3-series is that it’s not worth the lease right now. Too much of a premium to pay, there are other cheaper alternatives out there. Of course, if nothing but a newly redesign 3-series will do, be aware that you are paying a premium for that privilege.
Not sure if anyone knows this, but BMW is doing a loyalty special on the 5series. Trade your 5 for another 5 and you get an amazing MF 0.00135. This is the deal I just did. I don’t believe in “down payments” on a lease, just baseline drive off, and I honestly didn’t look into MSD’s yet. 2012 528i, space gray on black, premium, sport, split rear seat, bmw apps, nav, keyless, $1500 “down” $693/mth 36mths, 12k. I didn’t mean to get such a loaded car, i was mainly wanting between two specific color combos and had to have nav, and this was the only one that was available without ordering from the factory. Otherwise the other available was a white on black with leatherette and nav (no other package) for $598/mth 12k. I haven’t been a huge fan of leatherette.
I thought the loyalty discount was only for vehicles for which delivery was taken by 12/31. I had also understood that there was a .00060 discount on the money factor. Are we talking about the same thing? on the 535i, for example, the buy rate is .00185. Anybody have clarity here? Any word on April rates? Many thanks, I enjoy the site.
@All
This month BMW is giving a $3500 credit to 2012×5 D. 1k more than last month, I drove one a few weeks ago (plenty of power) more than I thought, $599 with $3800 36/10k I’m sure you could hammer that down with G’s help.
@jake
Is that for the diesel?
@Wayne
Yes
my dealer told me the X5 V8 Teck Sport leases well too compared to a Range Sport… I’m looking @ both, @ G my dealer really droped the ball, he’s aware I hate my 5 series and want to exit asap he forgot to email me in march when BMW had the pull ahead program, now I need to wait summer…
@jake. wow that’s horrible. he should have notified you way in advance. When is your lease up again? June?
@G
No, last payment July…
If i kept the MSDS i would not had this problem, i never knew BMW bmw only offered the (pull ahead) program 1 maybe 2 times a year and only a few models @ a time.
That’s terrible, but you got 3 more months. Hang in there. The nightmare is almost over. What are you getting next? X5?
@G
Ya X5 D. or V8 Teck/Sport.
The diesel has the $3.5k rebate but the V8 is simply (WICKED) all that power particularly the torque is I think 2nd to none, hard to choose, value or the demon…
If gas prices doesn’t have a much of an impact in your life, I say go for the V8. If you are going to have it for 3 years, you might as well enjoy it.
thanks G- i might just have to wait until they have a promotion for the 3 then.. prices way too high right now for me =(
I hear ya vince. I think leasing is all about timing. Let the hype die down a bit and you should see numbers improve.