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How To Lease A BMW 5-series For $360/Month, $0 Down

2015 BMW 528i Luxury Line (Source: bmwusa.com)

2015 BMW 528i Luxury Line (Source: bmwusa.com)

Prompted by interest in our “How I Managed To Get A $60K Mercedes for $289/Month” article, we’ve decided to revisit the subject and find out if similar deals for midsize executive sedans can be had. Here’s what we found.

BMW 5-series

With a completely new 5-series (MY 2017) around the corner, deals on the current venerable 5-series have never been hotter. Here’s what the lease situation looks like for August 2015:

2015 BMW 528i Lease Program

36-month residual: 64% for 10,000 miles per year (-1% for 12,000 miles per year, -3% for 15,000 miles per year)
Money factor: .00130
Money factor with multiple security deposits (MSD): .00081

Incentives:
$1,500 build-out cash (available to all)
$1,000 drive event credit (conditional)
$1,000 college grad cash (conditional)

Target price: 
$1,000-$1,500 below invoice before incentives

Commentary: At 64%, its residual is very competitive, as good as it’s ever been. BMW’s money factor of .00130 (3.12% APR) is high as usual, but put down seven security deposits and it drops to a reasonable .00081 (1.94% APR). We’ve been carefully tracking recent transaction data for the 5-series, and sales prices are going down. The Internet sales departments of most BMW dealers in Southern California will offer a sales price of about $1,500 below invoice before incentives.

And about incentives -- there are many. There’s $1,500 in Build Out Cash available for all in-stock (no special order) 5ers. And there’s the $1,000 Drive Event credit we talked about here. If you’re a recent college grad, you get an extra $1,000.

What does it all mean? Here’s a hypothetical example, a 2015 528i with Park Distance Control and Rearview Camera.

MSRP: $52,095
Sales Price: $47,600 ($1,500 below invoice)
Incentives: $3,500
Cap Cost: $44,100 (with $925 acquisition fee)
Residual: $33,341
MF: .00081

$388/MONTH (before sales tax) with $0 DOWN PAYMENT
Due at signing: First month’s payment, license and reg, dealer doc fee, MSD

If you’re a BMW CCA member, you get a $1,000 rebate mailed to you… factor that in, and it’s effectively $360 per month.

Our hypothetical deal compares quite favorably with deals that many Southern California BMW dealers are advertising:

Deal 1: $52,755 - $448/mo - $0 due at signing 

From reverse calculating this deal, we find out this deal assumes a net cap cost of about $44,800. The fine print says “includes all applicable credits”, which we assume includes the same ones we included (totaling $3,500). That’s a sales price of $48,300 before incentives, or about $1,400 below invoice, which is consistent with our sales price assumption.

Also check out these exec demo deals from the same dealer:
$328/mo - 2015 535i - $4,888 due at signing
$358/mo - 2015 535i - $4,888 due at signing
$288/mo - 2015 528i - $3,888 due at signing 

Deal 2: $52,435 - $359/mo - $4,995 due at signing

From reverse calculating this deal, we find out this deal assumes a sales price of about $48,100 before the $1,500 Build Out Cash is applied. Or about$1,200 below invoice. That’s consistent with our assumptions.

At potentially $388/month, why would anyone take on the burden of depreciation and a $48,000 car loan to purchase the car instead?? With a car like the 5-series, it seems like leasing is the way to go.

Mercedes-Benz E-Class

MBFS NOW ALLOWS MULTIPLE SECURITY DEPOSITS ON THEIR SPECIAL SUBVENTED LEASES!!

Here’s what the lease situation looks like for August 2015:

2016 Mercedes-Benz E350 Sedan Lease Program
24 month residual: 68% for 10,000 miles per year (-1% for 12,000 miles per year, -3% for 15,000 miles per year)
MF: .00077
MF with max MSD: .00007

Target price: 17% off MSRP

Here’s a hypothetical example, a 2016 E350 Sedan with Premium 1 package.

MSRP: $58,205
Sales Price: $48,310
Cap Cost: $49,105 (with $795 acquisition fee)
Residual: $39,579
MF: .00007

$403/MONTH (before sales tax) with $0 DOWN
Due at signing: First month, license and reg, dealer doc fee, MSD

Mercedes-Benz dealers are not allowed to advertise lease details better than the national offer publicized by MBFS. Nonetheless we have sufficient evidence that sales price of 15-18% off MSRP is feasible.

Both the 528i and E350 examples we’ve provided have a Leasehackr score greater than 12.