2015 bmw 328i lease

Your site is wonderful. I have learned so much about leasing a car.
Please advice me if the following is a good deal. It is on a demo that has 8300 miles on it.

To me, it honestly looks like a crummy deal. Dealers around me are advertising $309 a month with $0 down for 36 months. The best they are offering you seems to be $345 a month with $2000+ down. The car thats $309 a month also has a higher MSRP.

Thanks. Could you please send me the info on that dealership and if possible the name of a honest salesperson?

I am in NJ, and have not personally leased from this dealer, but here is a link to the car with the offer details:
http://www.bmwoffreehold.com/new-bmws/2015/BMW/3%20Series/WBA3B5G59FNS20011/BF52123

The discount of $11,670, if true, is substantial, but residuals are lower on the 2015 model than on the 2016. I wouldn’t be surprised if you could get a similar deal on a new non-demo car.

Also check with the dealer concerning the warranty. At 15,000 miles per year, that’s 53,300 miles at the end of the lease. BMW’s warranty ends at 50,000.

Thanks Michael.
I did check on the warranty and it would expire at 50k but I don’t plan to keep the car so I wasn’t concerned. Could you please let me know the residuals are on both the 2015 and 2016 models?
I am in west Texas and I don’t have a dealer that’s willing to negotiate. I would appreciate any information on a dealership that could get me a similar deal on on a 2016.
Also when I put the figures in the lease calculator I got a payment of 309. What am I doing wrong?

Hi Emrgdoc,

I played with the numbers, and I think I know what’s going on. I got exactly the same numbers as the dealer when I used .00171 as the MF rate.

BMWFS’s base MF rate is .00131, but dealers are allowed to mark it up by .00040. Perhaps try negotiating for the base rate, though it might be difficult without any dealer competition. The base MF rate would have resulted in payments of $325.27/mo with $2,095.90 due at signing.

Alternatively, you can place 7 security deposits, which lowers the MF from .00171 to .00122. This results in payments of $320.78/mo with $4,541.40 due at signing ($2,450 refundable). Ideally, you’d negotiate for the base rate AND use security deposits (~$300/month).

As for the residual, turns out the difference isn’t too great: 57% for the 2015 and 59% for the 2016. My understanding is that BMW lowers the residuals on demo cars by $.20 for every mile over 500. You might want to double-check with the dealer on that; it appears they’re adjusting it by $.30/mile.

All things considered, the deal as-is is pretty good for TX. Try getting the base rate and then it’ll be comparable to what you’d get in Southern California.

Best of luck!

Thanks Michael. Does the lowering of the residual on demo cars by BMW effect my lease payments or is it just something I have to worry about if I plan to buy car after the lease?

It makes your payment per month higher. That is why choosing the 15k mile per year package is more expensive than the 12k mile per year package. The residual is lower. For a low lease payment, you want a high residual value.

Yes sir, I understand that the payments are higher for more using more miles per year, but in this particular car, since it’s a demo, it already has 8300 miles. I am wondering if the 8300 miles on it will effect my payments negatively because the residual value goes down or would the payments be the same whether it had 0 miles or 8300 miles.

Yes, the 8,300 miles on the car will lower the residual. However, the huge discount on the selling price of the car will likely make up for it.

Hi @michael , when a dealer quotes you a selling price, does it usually include all the bonuses that are advertised on the website (like the holiday adder and build-out cash, or whatever they call it from different manufacturer)?

When you are trying negotiate for a good price do you usually ask the dealer to match an advertised sale price (i.e. truecar or edmunds) price, then Add on all the bonuses from the manufacturer? Or is the sale price from truecar or edmunds already included such bonuses?

Thanks for the help!

A BMW dealer’s selling price quote will likely include all incentives already (e.g., Holiday Adder and Build-Out Cash).

The only exception I can think of is the i3, which has a $7,500 incentive specifically for leases. They will not include this incentive if you’re asking solely for a selling price and do not specify that you’re leasing.

On TrueCar, you can select whether or not you want certain incentives applied. It usually includes incentives by default.