Excellent 2015 BMW X1 February Lease Program
Thread DetailsLast Edited by muniala March 6, 2015 at 11:07 PM
Update : Lease Rates for March 2015
For March the lease on the X1 got a bit worse. The residual is knocked down by 2 percentage pints so the 36 month 10K/12K/15K residuals are 66%/65%/63% respectively. The Money Factor is 0.00129.
Still a good deal but not as great as last month. For reference, the example car below with the new program, the monthly payments would be higher by $20
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BMW has a really great lease program on the 2015 X1 SAV this month i.e. February 2015. All trims (sDrive28, xDrive28 and xDrive35) are included. xDrive is the all wheel drive version and sDrive is the rear wheel drive version. 28 represents the 240 horsepower 2.0-liter, TwinPower Turbo, inline 4-cylinder engine. 35 represents the 300 horsepower 3.0-liter, TwinPower Turbo, inline 6-cylinder engine.
This leasing program is valid until Mar 2. The next month program starts on Mar 3 and I will update this post to indicate if the lease program was extended. With BMW you also have the option of locking in the lease programs for 60 to 90 days by filling in a credit application online with BMW FS. The link is on bmwusa.com. When you fill in the credit app, you have to select a dealer and you have to subsequently buy/lease from that dealer to avail the locked program. You have the option of choosing the locked program or the current month's program which ever is better.
The X1 is a fantastic car with excellent driving and handling dynamics (equivalent to the acclaimed 3 series), yet incredibly practical.
The key to this great lease program is that BMW is offering a heavily subsidized 68% residual on a 36 month,10K miles/year lease (67% residual for 12K miles/yr and 65% residual for 15K miles/year)
Money factor on the lease is a competitive 0.00130. As with BMW leases, the money factor can be bought down by putting down up to 7 refundable security deposits. Each security deposit is equal to your monthly payment rounded up to the nearest $50 and each deposit reduces the money factor by 0.00007. So the money factor can be reduced to 0.00081 by putting down 7 refundable security deposits.
To sweeten the deal for current BMW lessees, BMW has a 6 month pull-ahead program available. A pull-ahead program allows BMW lessees who have leases terminating in the next 6 months to return their vehicle early without incurring the additional payments as long as they lease another BMW.
Here are some payment examples on actual cars
2015 BMW X1 xDrive28i MSRP 38,300 (includes Premium Package $3,950, Cold Weather Package $700)
Selling Price : $34,000
Monthly Payment (Zero cap cost reduction, bank fee of $795 is capitalized into the payment)
$292 + tax for 10K miles/yr
$302 + tax for 12K miles/yr
$323 + tax for 15K miles/yr
Drive Off: First Months Payment + Registration/DMV Fees + $80 doc Fee = around $700 in CA
Refundable Security Deposit = $2450
If you qualify for BMWs recent college graduate rebate ($1000), the lease payments will decrease by another $25.
I will add additional examples lease examples on actual cars here
Please read my earlier threads which have valuable information that will help you to understand leasing including calculating your own lease payments.
A note about using TRUECAR pricing.
In these earlier threads crica 2011/2012, I used to recommend using Truecar pricing to get an idea of the selling price to use as a baseline to negotiate below.. I no longer recommend using Truecar. They have become very "dealer friendly" and their pricing is now way inflated. So do not use them as a reference at all.
For example the car example in the OP, the MSRP 38,300 , I know for a fact I can get it at 34000, the True car price is 36,565 which is ridiculously high.. I have been seeing this kind of inflation across the board.
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Several people repeatedly bring up the advertised lease deals from the BMW website and say that the deal posted here does not apply. The deals on the website are just like MSRP deals. They use the promotional leasing program i.e. the residual and the money factor but with the Selling Price = MSRP. and with a huge down payment. Just like you will negotiate the selling price when you buy a car, you need to do the same when you lease.. Also you have the option of putting down any amount you desire and I advise to put zero down and instead put up multiple security deposits to lower the interest rate. Since I replied to an SDer about advertised deals, I'm pposting my reply here so that it is available in the wiki
The advertised deal on the web site is based on a selling price = MSRP. If you work the numbers backwards you will see that.
You need to negotiate the selling price lower just as you would when buying a car. And then ensure that you do not pay more than the buy rate on the money factor and bank fee.
Here is the small print to that lease on the BMW site
Monthly lease payments of $289.00 for 36 months based on MSRP of $35,550.00. $3,834.00 cash due at signing is based on $2,750.00 down payment, $289.00 first month payment, $795.00 acquisition fee, and $.00 security deposit (not all customers will qualify for security deposit waiver). Tax, title, license, registration and dealer fees are additional fees due at signing. Program available from participating BMW dealers to eligible, qualified customers with excellent credit history who meet BMW Financial Services credit requirements. Payments do not include applicable taxes. All figures presented are examples only. Actual MSRP may vary. Lessee responsible for insurance during the lease term and any excess wear and tear as defined in the lease contract, $0.20/mile over 10,000 miles per year and a disposition fee of $350 at lease end. Purchase option at lease end (excluding tax, title, and other government fees) is $24,174.00.
So that payment of $289 is arrived as follows
MSRP = 35,550
Selling Price = 35,550
Down Payment = $2,750
Money Factor = 0.00130
Bank Fee = $795
Net Cap Cost = 35,550 - 2750 - 795 = $32,005
Term = 36 month /12K /yr
Residual = 68% of 35,550 = $24,174
Monthly Payment = $289 + tax
Drive off = $3834 (Down Payment of 2750 + Bank Fee of $795 + 289 First Month Payment)
If you read my earlier threads where I explain how to lease, I advise on how to negotiate the selling price and why it is a bad idea to make a down payment and instead put up multiple security deposits that lower the interest rate with the benefit that you get the deposit back at the end of the lease.
So for that car in the ad, I would look at negotiating the selling price to 33,000 (I think I can do even better than that but lets go with 33,000) and I will not make any down payment, i will capitalize the 795 bank fee so that my driveoff be just the first month payment and dmv fees. I will also put down multile security deposits to lower the money factor to 0.00081
MSRP = 35,550
Selling Price = 33,000
Down Payment = 0
Money Factor = 0.00130 - 0.00049 = 0.00081 (After 7 MSDs)
Bank Fee = $795 ( I will to roll this into my payment, i.e. I'm not going to pay it in my drive off))
Net Cap Cost = 33,000 + 795 = $33,795 (This is the total amount I am financing i.e. what my lease payment is based on)
Term = 36 month /12K /yr
Residual = 68% of 35,550 = $24,174
Monthly Payment = $262.89 + tax
Drive off = $2100 Refundable Security Deposit + DMV fees + First Month Payment = 2100 + 320 + 286 = $2,706. Keep in mind this driveoff includes 2100 security deposit which I will get back at the end of the lease.
So you can see that if you are informed and know what you are doing you can do much better than the advertised deals
Again all this is explained and discussed in the earlier threads linked in the OP. Several SDers have informed themselves using these threads and leased vehicles at good prices.