[metrathon]

Seems to me BMW has the best leasing conditions, from ALL manufacturers. For example, a 328xi is $369 / month while Audi A4 Quattro is $391. Goes without saying, performance wise the A4 cannot hold a candle to 328i.
A 528i is $439 vs an A6 2.0T FWD at $519. Again, no comparison.
And MBenz rates are even more expensive.

So what's up with this? Why can BMW have such good lease offers that other manufacturers cannot match?

[Cyberdemon]

Promotional rates are deceiving and crappy. I could sell you a 7 series for $199 a month!

You need to look at:
-Residual values
-MSRP of the car they ACTUALLY plan on selling you (keep in mind it's virtually always a base model with the most basic packages)
-Cash due at signing - this is the main way they get you down to $xxx per month, because you're dumping a bunch of cash in in the fine print.
-Months and mileage of the term

At the end of the day when you do all the math you'll likely find out the delta is much smaller than you think.

Only way to get a true price is to go to the dealer, equip the car, negotiate the price ("Special" lease offers are all shit that assume you're basically paying MSRP plus a loyalty bonus you may not qualify for) and see what the total out of pocket is going to be.

If anyone trys to sell you on anything different, they're full of it.

[ArchJR]

Beyond the high sales prices for the cars that BMW can CPO in three years, I assume it is BMW's options structure. BMW makes it "easier" to add thousands in options over the base price compared to others, thus making it more likely that the transaction prices are on par with or above the competition. Audi and M-B don't have "lines" per se, which are pure profit for BMW. So, the advertised lease (base car w/ premium usually) is a great deal, but few ever lease that configuration.

The real kicker is the $299/month 320i lease. I cannot imagine leasing a FWD family sedan with that offer available.

[F32]

Where BMW kills Audi in their leases is in the residual value. Audis (bedsides the base A4) are leased at horrible residuals compared to an equivalent BMW. What that means is at the end of the lease, the car is often worth more than the agreed upon price, so you have some room to play, whereas you're often slightly upside down in the BMW. Puts you in a bind if you want to trade the car several months early to a different dealership.

[Michael Schott]

Originally Posted by JesseSRQ

Beyond the high sales prices for the cars that BMW can CPO in three years, I assume it is BMW's options structure. BMW makes it "easier" to add thousands in options over the base price compared to others, thus making it more likely that the transaction prices are on par with or above the competition. Audi and M-B don't have "lines" per se, which are pure profit for BMW. So, the advertised lease (base car w/ premium usually) is a great deal, but few ever lease that configuration.

The real kicker is the $299/month 320i lease. I cannot imagine leasing a FWD family sedan with that offer available.

Keep in mind that is for a 2013 model (not a big issue) and is only good if you are a current BMW owner. Plus there's a $2750.00 downpayment required and if you divide this by 36 (lease term) that's another $76.38/month. Add taxes on top of this and you are looking at a real monthly payment of about $400.00. That's a good, not great deal. No leather, sunroof, metallic paint, sport package.

[nicknaz]

Originally Posted by F32

Where BMW kills Audi in their leases is in the residual value. Audis (bedsides the base A4) are leased at horrible residuals compared to an equivalent BMW. .

+1

I checked out the S4 vs. 335 and the S4 was almost 50% more costly per month because of this

@Michael a colleague recently custom ordered a 2013 328 with the HK stereo and the top, side and backup parking cameras as only options. His lease including CA tax is $398/mo with no cap cost reduction and no MSDs.

Dealer gave a price close to invoice and residuals were 65%.

Killer deals to be had for sure, but you have to know to ask for them.

IMHO 328 is the car to get for low cost because it is the most common 3er with lots of allocation, lots of inventory and consequently, lots of room to negotiate

[Michael Schott]

Originally Posted by nicknaz

+1

I checked out the S4 vs. 335 and the S4 was almost 50% more costly per month because of this

@Michael a colleague recently custom ordered a 2013 328 with the HK stereo and the top, side and backup parking cameras as only options. His lease including CA tax is $398/mo with no cap cost reduction and no MSDs.

Dealer gave a price close to invoice and residuals were 65%.

Killer deals to be had for sure, but you have to know to ask for them.

IMHO 328 is the car to get for low cost because it is the most common 3er with lots of allocation, lots of inventory and consequently, lots of room to negotiate

Thanks. This is all true when discussing on the lot 2013 models. 2014 residuals are much different (.60 on 36 month lease, 12K/year) and in my case, I want a car with RWD (can't find these in Detroit) and MT so I had to order a car.

[vitriol]

In my experience, BMW, Toyota and Honda are terrific cars to lease, because the residuals are high and the money factors (i.e., interest rates), tend to be very competitive.

Obviously the 2014 MY numbers aren't as good as they were for the 2013 MY, but those numbers will improve with time. And really, 60% is pretty good (Audi models are low 50's consistently).

I'm always cautious about "$299 per month" lease specials, since this gives no information about the deal. That could be a good deal, or it could be a bad deal with an articially low monthly payment offset by a huge "down payment." Down payments don't actually exist in the world of leasing, as they do with purchasing a house or a car. Instead, these up-front payments are technically "capitalized cost reductions," which lower the total amount being financed and therefore lower your monthly payment. I don't like to do cap cost reductions since you could loose the money if the car is stolen or totalled; and really, whether you pay it up front or amortize it over 36 months, you have to pay the money. You don't really save any money.

When leasing, you have to focus on found things:

MSRP based on actual options and packages
Sales price, which you negotiate to be as low as possible
Residual value (which is set by the financing company, based on term in months and milage allowance)
Money factor, which is essentially the interest rate you're paying divided by 2400.

Focus on these numbers, do your research, and you will get a good lease deal.

BTW, www.ridewithg.com is an outstanding resource for lease advice and information.

[metrathon]

Originally Posted by vitriol

In my experience, BMW, Toyota and Honda are terrific cars to lease, because the residuals are high and the money factors (i.e., interest rates), tend to be very competitive.

Obviously the 2014 MY numbers aren't as good as they were for the 2013 MY, but those numbers will improve with time. And really, 60% is pretty good (Audi models are low 50's consistently).

I'm always cautious about "$299 per month" lease specials, since this gives no information about the deal. That could be a good deal, or it could be a bad deal with an articially low monthly payment offset by a huge "down payment." Down payments don't actually exist in the world of leasing, as they do with purchasing a house or a car. Instead, these up-front payments are technically "capitalized cost reductions," which lower the total amount being financed and therefore lower your monthly payment. I don't like to do cap cost reductions since you could loose the money if the car is stolen or totalled; and really, whether you pay it up front or amortize it over 36 months, you have to pay the money. You don't really save any money.

When leasing, you have to focus on found things:

MSRP based on actual options and packages
Sales price, which you negotiate to be as low as possible
Residual value (which is set by the financing company, based on term in months and milage allowance)
Money factor, which is essentially the interest rate you're paying divided by 2400.

Focus on these numbers, do your research, and you will get a good lease deal.

BTW, www.ridewithg.com is an outstanding resource for lease advice and information.

Great resource. For BMW, where do you get the residual value and money factor from?

[ArchJR]

Originally Posted by Michael Schott

Keep in mind that is for a 2013 model (not a big issue) and is only good if you are a current BMW owner. Plus there's a $2750.00 downpayment required and if you divide this by 36 (lease term) that's another $76.38/month. Add taxes on top of this and you are looking at a real monthly payment of about $400.00. That's a good, not great deal. No leather, sunroof, metallic paint, sport package.

Right, I totally forgot that you don't pay sales taxes or down payments on other cars.

[ArchJR]

Two other points I found with BMW leases:

1) BMW sometimes has a USAA rebate. I just had to enroll in USAA by referencing my father's Navy discharge information to qualify. They also stacked this with the loyalty rebate for the M3 we have.

2) The money factor and residual values for BMW leases stay the same regardless of equipment. (They do vary my model, with the 335i having a slightly lower residual last I checked.) So, if the lease deal is on a $38k 328i and you want a loaded version, the increase in payment is directly proportional. If you want to pay less up front, then the payment rises proportionately. Some brands - ahem, Audi - will have a lease special, but if you deviate at all from that advertised car, the factors change significantly. You either get the $349 special, or you use "non-special" factors and see the lease price jump. Even getting a manual does not affect the calculated residual with BMW. With an Honda and Acura, for example, each trim level can have a different residual value so that leasing a car with a Tech Package is disproportionately more expensive than a higher volume base model.

[vitriol]

Originally Posted by metrathon

Great resource. For BMW, where do you get the residual value and money factor from?

http://www.ridewithg.com/index.php/c...ase-rates/bmw/

Sometimes sales associates will try to use a less attractive MF in order to make more money on the deal. If they do, tell them you want the more favorable rate, or go to another dealer. This assumes you have very good credit (720+ FICO).

[vitriol]

Originally Posted by JesseSRQ

Two other points I found with BMW leases:

1) BMW sometimes has a USAA rebate. I just had to enroll in USAA by referencing my father's Navy discharge information to qualify. They also stacked this with the loyalty rebate for the M3 we have.

2) The money factor and residual values for BMW leases stay the same regardless of equipment. (They do vary my model, with the 335i having a slightly lower residual last I checked.) So, if the lease deal is on a $38k 328i and you want a loaded version, the increase in payment is directly proportional. If you want to pay less up front, then the payment rises proportionately. Some brands - ahem, Audi - will have a lease special, but if you deviate at all from that advertised car, the factors change significantly. You either get the $349 special, or you use "non-special" factors and see the lease price jump. Even getting a manual does not affect the calculated residual with BMW. With an Honda and Acura, for example, each trim level can have a different residual value so that leasing a car with a Tech Package is disproportionately more expensive than a higher volume base model.

Great points.

Re USAA, you have to be careful though, since the rebate USAA quotes is for *financing* and is usually lower for leasing (e.g., $1500 rebate if you finance through USAA, $500 rebate if you lease through BMWFS). These policies are set by USAA and BMWFS so not a lot of wiggle room.

[Yobyot]

Originally Posted by JesseSRQ

...The real kicker is the $299/month 320i lease. I cannot imagine leasing a FWD family sedan with that offer available.

Until you actually drive a base 320i xDrive, like I did with my colleague who has just arrived in the US and wants an F30 because where he's from, he could never afford one.

At speed, it feels like a BMW. Getting to speed...well, not so much.

[Michael Schott]

Originally Posted by JesseSRQ

Right, I totally forgot that you don't pay sales taxes or down payments on other cars.

You missed the point. Sorry if I was not clear. First of all, why put a downpayment on a lease? No need to limit your cash flow on an item with a short life like a lease. Also, if you are in an accident, that money is gone. The point is, lease offers like these are like sucker bets. Not as attractive as they seem.

I'm about to lease a 2014 Sport Line with leather, metallic paint and heated seats. Retail is over $43K. No money out of my pocket except transfer fees, acquisition fee and first months payment. My payment is a bit over 10% more than the $400.00 I mentioned.

[vitriol]

When considering a lease deal -- particularly a "$299/month" special -- don't forget to factor in sales tax and acq fee.

The advertised lease specials never include these not insignificant numbers.

And when you're calculating your own lease deal (use one of many lease calculators available online), don't forget to factor in local sales tax and manufacturer acq fee (the latter can be folded in to your payment or paid upfront).

[metrathon]

My point was that with all the down payment, sales tax and other fees, BMW rates are better. Audi and MBenz they also have down payment, taxes and sh$t, and still, BMW comes ahead as having cheaper rates. Dunno why.

[The J-Man]

BMW rates are usually better, but not so great right now on 2014's.

Lexus just came out with 62% BASE residual on the IS350 with a low MF. BMW cannot touch that right now. That type of lease is very unusual for Lexus. Seems that with the good reviews of the new IS, Lexus is going for the jugular with these lease rates.

[nicknaz]

Originally Posted by Yobyot

At speed, it feels like a BMW. Getting to speed...well, not so much.

+1

but if he is from overseas where they have 316 maybe he is ok

[Pauleebe]

Originally Posted by vitriol

When considering a lease deal -- particularly a "$299/month" special -- don't forget to factor in sales tax and acq fee.

The advertised lease specials never include these not insignificant numbers.

And when you're calculating your own lease deal (use one of many lease calculators available online), don't forget to factor in local sales tax and manufacturer acq fee (the latter can be folded in to your payment or paid upfront).

This is very true.

Although these "quoted" amounts also don't take into account the fact you can negotiate the selling price of the leased vehicle down a bit though.

[Pauleebe]

Originally Posted by The J-Man

BMW rates are usually better, but not so great right now on 2014's.

Lexus just came out with 62% BASE residual on the IS350 with a low MF. BMW cannot touch that right now. That type of lease is very unusual for Lexus. Seems that with the good reviews of the new IS, Lexus is going for the jugular with these lease rates.

BMW FS artificially lowered the RV to make the payment higher for a 2014 lease, so they can drive the 2013's off the lot. The $1,000 build out credit incentive for 2013's just wasn't enough, so they turned to screwing with the RV to drive the point home, that they want the 2013's gone ASAP.

2014's RV will recover to 2013 levels by the fall.

[carzaddict]

Originally Posted by dwalls90

BMW FS artificially lowered the RV to make the payment higher for a 2014 lease, so they can drive the 2013's off the lot. The $1,000 build out credit incentive for 2013's just wasn't enough, so they turned to screwing with the RV to drive the point home, that they want the 2013's gone ASAP.

2014's RV will recover to 2013 levels by the fall.

this is true, if everything works out, ill be one of those lucky few who will take advantage of the left over 2013 models