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2013 and earlier BMW X5 Lease Questions

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  • Greetings Andrew. BMW is currently providing $3,000 dealer cash on the 2006 X5 4.4i. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2006 X5 4.4i with 15,000 miles per year are .00150 ands 67%. This truck's 36 month money factor is the same, but its residual value for that term is 56%.

    Car_man
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  • Hi dpeck1. The money factor that you were quoted for this truck is right in line with BMW Financial Services' current buy rate for it. This is always a good thing. Now let's take a look at the selling price that you were quoted. BMW is currently providing $3,000 dealer cash on the 2006 X5 4.4i. When this dealer cash is added back into the price that you were quoted for this truck, we arrive at $55,477. This amounts to a dealer discount of $2,978. A base 2007 X4 4.4i has a spread of just under $4,700 between its full MSRP and dealer invoice price. The price that you were quoted isn't bad, but if you are in an area of the country that has a decent level of competition, this late in the model year I would not be surprised if you were able to beat this deal by another couple hundred dollars. You may want to stop by the following discussion to see how much other community members have paid for similar trucks lately: "BMW X5: Prices Paid & Buying Experience".

    Car_man
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  • Why are similarly equipped and priced 07 Audi Q7's being leased at, it looks, approx $700/month nothing down and it looks like the 07 X5's will be in the $800's 3yr/36k? I hope not.
  • In addition to the previous questions I asked, I was also wondering if we should expect any discount at all on the 2007 X5's?
  • nyinlanyinla Posts: 3
    in the LA area, just leased an '06 x5 3.0 with premium pkg & navigation. MSRP $49,670, selling price $44,350. 24 month lease residual 69% money factor .00185 (returning BMW customer special rate), zero cap reduction. Drive off around $1700, monthly pmt of $613. Got two other dealers to $43,500, but needed the car asap. LA seems to have 2006 X5 3.0s with lots of options (ie., many had sport pkg & xenon).
  • Welcome sussan. It sounds like you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    In answer to your specific question a vehicle's money factor is used to calculate the interest portion of its monthly lease payment. One can convert a money factor into an approximate interest rate equivalent by multiplying it by 2400. The "buy rate" is the lowest possible money factor that is a available for a particular vehicle. It is important to know what your vehicle's buy rate is because dealers are allowed to mark-up banks' money factors to add additional hidden back-end profit to deals. Consumers who know what the buy rate is for the vehicle that they want can usually convince dealers not to mark it up.

    Car_man
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  • Hi 8eight. You never mentioned the selling price of the X5 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal, but it would be a big help if you let me know what its selling price is first.

    Car_man
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  • Yes, h2fan, the dealer cash that BMW is providing on the 2006 X5 is available on purchases and leases. Specifically, it currently has $2,500 dealer cash on the '06 X5 3.0i, $3,000 on the 4.4i, and $4,000 on the 4.8is.

    I do not personally follow CPO incentives very closely. In general, manufacturers sometimes offer special leases on CPO vehicles, but they rarely have cash incentives available on them.

    Car_man
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  • Hi tenet1. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2006 X5 3.0 with 15,000 miles per year are .00185 and 67%, respectively. When negotiating your lease on this truck, keep in mind that BMW is providing $2,500 dealer cash on it. This cash will help you to negotiate an attractive capitalized cost for your lease.

    Car_man
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  • Hi fergie3. I don't believe that BMW has published a lease program for the 2007 X5 yet. When it does, it probably will not provide any lease support on it. If this is the case and you were to lease one through BMW Financial Services, you would have to use its standard lease money factor. The money factors that you were quoted are in line with what BMW FS' standard money factor is right now, the first one with the payment of a security deposit and the second one with the deposit waived.

    I just crunched some numbers for you and according to my calculations, if you were to lease a truck with an MSRP of $54,340 and no discount, a money factor of .00310, and a residual value of 61% for 36 months, your zero down, pre-tax monthly payment should be around $860. I believe that the 56% residual value that the other dealer mentioned is probably too low. Of course, only time will tell what BMW's lease program for this model is actually like.

    Car_man
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  • 8eight8eight Posts: 3
    Oops...the selling price of the car is 51,600. MSRP is 56,120.
  • tenet1tenet1 Posts: 354
    CarMan do you have the new new lease numbers for the 2006 X5 for November, especially for the 3.0?

    Any additional incentive on these vehicles?
  • billmvbillmv Posts: 146
    hi nyinla. I'd like to know the names of the two other dealers that were willing to sell the car for $43,500, and the dealer you bought from too. $6,170 off list seems pretty strong. What cities are they in?

    Thanks!
  • Thanks Car Man. Is that about the best money factor that BMW offers on X5's? My daughter just got 3.9% on a new 2007 Hummer.
  • Wondering if someone can tell me if this lease rate is a good deal.

    MSRP $54270
    Price $48700
    lease rate .00225

    15K 3 yr. lease
    Residual 30391.20
    Monthly rate $797 $2200 in security depoosit title taxes.
  • I calculated based of your numbers and got a payment of $687 before taxes, with zero down. $110 is a pretty big difference. They are hiding some more money in the lease. Is there anything else added to that purchase price in the Cap Cost?
  • Your lease rate (aka Money Factor) is too high. FOr the same car they should be able to get to at least .00205.
  • Just saw a MF of less than .0020 Offered on same car!
  • billmvbillmv Posts: 146
    auburn87.....I got $705.30 pretax when I ran the numbers, assuming they included the bank fee at $625. Something is fishy. They're using 56% for their residual, but I don't know if that's correct. Don't have time to go back and see if that's a good number for November. If it is, then $705 is correct.
  • reeffreeff Posts: 5
    I'd like to get some feedback as to what to do on my X5 3.0 as the warranty will be ending in april of 2007.

    I have two options:

    - Purchase extended warranty : Who would you recommend I go through and what would it cost?

    - Trade in/sell vehicle and obtain a lease on a X5.

    It is my wife's vehicle and she would like a new X5 however I'm not sure what it would cost me. I reside in Naperville, Illinois.

    Any thoughts or recommendations?
  • Thanks for all of your help on this board. I not only got a better (MF 00185) I was able to upgrade to the X5 4.4 at payments less than the 3.0!
  • I have a 2007 3.0si on order and have been told to expect a January delivery. As of Wednesday 11/22, two days before the vehicle actually went on sale, BMW financial was, according to my salesperson, only offering a 53% residual on a 36 month 15k mile lease with a money factor of .00330. My salesperson indicated he expected those terms to improve next month but I am interested to know what others have obtained from their dealerships. This does not sound like a very attractive deal at present.
  • I just drove the 2007 X5 yesterday. Salesman quoted me 58% residual and money factor of .00429 on 36 month lease. I hope terms improve, as the new X5 really has a nice ride, but not on those terms. I will not waste money on the third row seating as it is a joke imo.
  • Don't worry about it, 8eight. Community members forget to mention the selling price of the vehicle that they want to lease all the time. OK, so you are interested in leasing a 2006 X5 3.0 that has an MSRP of $56,120 and a selling price of $51,600. The 2006 BMW X5 has a spread of over $4,500 between its full MSRP and dealer invoice price. On top of that, BMW is providing $2,500 dealer cash on '06 X5 3.0 models to help dealers unload leftover models. That gives you a total of $7,000 to play with. You are being given a $4,500 discount on this truck. I personally would want a larger discount than that if I was in the market for one. Try stopping by the following discussion to see how much other community members have paid for similar vehicles lately: "BMW X5: Prices Paid & Buying Experience". Once you arrive at an attractive price for this truck, make sure that the dealer you are working with uses BMW Financial Services' buy rate lease money factor of .00185 to calculate your monthly payment.

    Car_man
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  • Hello tenet1. This truck's lease program varies depending upon how long you lease it for and its mileage allowance. You never mentioned either of these items in your post, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2006 X5 3.0 with 15,000 miles per year are .00185 and 56%, respectively. BMW is currently providing $2,500 dealer cash on this model. Make sure to take this cash into account when negotiating your truck's capitalized cost.

    Car_man
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  • You're welcome, fergie3. To the best of my knowledge, BMW still has not published a lease program for the 2007 X5. I'll do some digging again in a week or two to see if it has published one. Please feel free to check back with me then and I will be happy to fill you in on what I have been able to find out.

    Car_man
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  • Hi auburn87. The money factor that you were quoted is too high. BMW Financial Services' current buy rate lease money factor for a 36 month lease of a 2006 X5 3.0 is .00185. With the waiver of your vehicle's security deposit it increases by .00015, but returning BMW FS customers receive a security deposit waiver at no additional charge. Make sure that the dealer that you are working with uses this truck's buy rate to calculate its lease payment.

    I wouldn't be surprised if you were able to beat the selling price that you were quoted either. You were quoted a discount of $5,500 on a truck that including the dealer cash that is available on it probably has a spread of around $7,000 between its MSRP and invoice price. If you are in an area that has a decent level of competition, I would not be surprised if you were able to beat $1,500 over invoice on a leftover model. Make sure to stop by the following discussion to see how much other community members have paid for similar trucks lately: "BMW X5: Prices Paid & Buying Experience".

    Car_man
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  • Ahhh, I see that you were quoted some actual numbers for a lease of a 2007 X5. Thanks for the info, gatorfan3. The last time that I checked, BMW had not published any numbers for the 2007 X5 yet. Not surprisingly, it appears as though BMW is not providing any lease support on this truck. This is fairly common with brand new or redesigned models. If one wants to be the first on their block to have a new vehicle, they have to pay to play :). As time passes, the lease program for the '07 X5 will likely become more attractive. It is difficult to say how long it will be before BMW introduced money factor support on this model though. A lot will depend upon how well it is received by the public and how strong auto sales are in general.

    Car_man
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  • Hi fergie3. Even without any lease support the money factor that you were quoted is WAY too high. BMW Financial Services' standard money factor varies by region, but its standard buy rate is currently around only .00330. It appears as though the dealer that you spoke with is going to make customers who want to be the first to have a redesigned X5 pay through the nose to get one.

    Car_man
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  • bu96bu96 Posts: 19
    Does anyone have any lease rates and residuals for the 2007. My salesman is currently working on an offer right now. Thanks.
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