fuenfer

I'm about to take the plunge back into the 5-series, and am about to lease a 550i (picking up in Munich). I was hoping to get the forums thoughts on both the options list and the following figures:

550i
Black Sapphire Metallic
Venetian Leather interior
Convenience Package
Dynamic Handling Package
Premium Package 2
Sport Package
Sport Automatic Transmission

U.S. MSRP is $70,975, with an ED selling price of $61,930. 7 Multiple Security Deposits + $2200 (including 1st month, DMV fees, acquisition fee) at inception. With 15k miles/year, residual is at 53%, with an adjusted money factor (MSD, loyalty, ED, etc.) of .001369.

$890/mo. for this lease (including tax).

I haven't signed this deal yet, and wanted to get the forums collective wisdom before moving forward. I would be grateful for any advice.

turboawd

what is the "7 multiple security deposits"?

Petes550i

Yeah, that's an awful lot of deposits just for a lease. What is the total amount down? Something doesn't sound right.

luigi524td

Multiple security deposits are a technique for lowering the money factor on a lease - thus reducing the "cost of money". They are refunded at the end of lease.

OP - Good strategy / technique. Not a bad deal - So the residual is about $33K? You didn't note the term of the lease... but the residual looks like it's 36 months?

fuenfer

Thanks for clarifying the multiple security deposits - and yes, it's a 36 month lease.

luigi524td

I have Heads-up Display and like it even though I think BMWs $1300 price seems a bit high. Other than that I think you've suited this up nicely!

Diamond

Multiple security deposits are probably the worst return on your money you can actually get. The return is whatever money is saved by lowering your MF which is much much much smaller than taking that same amount of money and sticking it into a conservative investment for 3 years. Probably 3 or 4 times less.

It is basically a way to sucker people who do not know any better into giving bmw your money to use for 3 years and make a big profit on it, just like a bank. Any savvy finance minded person should know better and take your money elsewhere. The drop on the MF is minascule compared to returns elsewhere

fuenfer

Thank you for your response. Seeming as you are a "finance minded" person, could you kindly advise on where I could park this money for 3 years and make a big profit? Safe investments (money market, savings, etc.) seem to be making much less than the return I'd get from making the MSD. For a number of reasons, I'd be absolutely thrilled if I could have this money safely invested elsewhere, with a guaranteed return of principle after three years, making 3-4 times what I'd be saving on my lease, and seek your savvy financial wisdom.

raleedy

MSD has always seemed like a good deal, especially on an after-tax basis. But 53% residual on a 36 month 15K lease seems rudely low, even if it is applied to the MSRP and not the actual sales price. Will you get one free month as well?

fuenfer

Yes I will get the one-month free. I think the residual is the one thing the dealer can't adjust so, I'm not sure I have much negotiating power there.