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2013 and earlier BMW X5 Lease Questions

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  • sussansussan Posts: 17
    I am new to this board. What is BMW FS' buy rate lease money factor of .00185?
  • 8eight8eight Posts: 3
    I have negotiated a deal for a 2006 X5 3.0 with an MSRP of $56,720 for a 36 month lease with a money factor of 205 and a residual of 32.897 with 15,000 miles per year. Options include:
    Premium Pkg
    Sports Pkg
    Cold Weather
    Rear Climate
    Comfort
    Nav
    Premium Sound

    They are offering $713 per month with nothing down (price to drive off is about $2000; 1st payment, tax, lic., etc)

    I have a feeling this is no a great deal? What do you think is a fair monthly to shoot for?

    Thx.
  • h2fanh2fan Posts: 27
    Hello Car_man,

    In one of the previous posts you mentioned "When negotiating your lease on this truck, keep in mind that BMW is currently providing a solid $4,000 dealer cash on it." Is this also offered if I were to purchase the vehicle? Also, are there any incentives on CPO purchases?

    Thanks
  • billmvbillmv Posts: 142
    Sussan.....the "buy rate money factor" is the "price" of the financing that a manufacturer provides to a dealer. The dealer can either use that same number to calculate your lease payment or they can mark it up, which allows them to make money off the financing. Obviously you want them to use the lower number....the (wholesale) rate at which the dealer "buys" the financing. If they mark it up then you pay retail for the product. Just like buying a shirt at Macys. They buy it at wholesale and sell it to you at retail.

    This is one of the two main areas where a dealer will often try to make money on a deal. The other is the negotiated selling price, which becomes the basis for calculating your payment. Also, they often try to add a couple hundred dollars to the acquisition fee.
  • tenet1tenet1 Posts: 354
    I am looking for current lease residuals and money factors for a 24 month lease on a 2006 X5 3.0. Also, what are the current incentives on these vehicles to dealers from BMW?

    Thanks
  • Please help Car Man. I have talked to 2 dealers about leasing a new 2007 X5. They don't have the information yet, but here is what each salesman is speculating. #1, 61% residual and money factor of .00310. #2, 56% residual and money factor of .00325. One of the vehicles that I am considering has a MSRP of $54,340.00 and the other one lists for $52,745.00. I want a 36 month lease with 12,000 miles a year. What would be your best bet on which salesman is more likely to be right, and what would you think my monthly payment should be on the 2 vehicles I am considering. Thanks in advance for your help.
  • bu96bu96 Posts: 19
    Lease Man -- please help too. I am same situation as fergie3 but my MSRP is 59K. Dealer is supposed to split the profit for the dealership w/ me 50%. Using figures above, what range is reasonable. Thanks!!
  • bu96 Has your dealer given you any guess on the residual and money factor?
  • bu96bu96 Posts: 19
    Fergie: my salesguy won't speculate b/c he is afraid he will be completely off. i had to contract 6 months ago b/c of my ending lease of my BMW 540 (BMW wouldn't extend my lease otherwise). the most he would say was he thought my payments would likely fall in the high $800s for 3 yrs 36K miles and about 3K drive off.
  • Thanks for the additional information, bodotcom. BMW Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2006 BMW X5 3.0 with 10,000 miles per year are .00185 and 70%, respectively. The numbers for an otherwise identical lease of an '06 X5 4.4i are .00150 and 70%. Lastly, the numbers for an identical lease of an '06 X5 4.8is are .00150 and 65%, respectively. When negotiating a lease on any of these trucks, make sure to take the dealer cash that BMW is currently providing on them into account. Specifically, BMW has $2,500 on the '06 X5 3.0i, $3,000 on the 4.4i, and $4,000 on the 4.8is. This cash will help you to negotiate an attractive capitalized cost.

    Car_man
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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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