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2013 and earlier BMW X5 Lease Questions

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  • Hi hefner. Vehicles' buy rate lease money factors are set by banks, not dealers. Having said this, dealers often have the authority to mark-up banks' buy rates to add additional hidden, back-end profit to deals. BMW dealers are notorious for doing this. The .00310 lease money factor that you were quoted for the 2008 X5 that you are interested in is too high. BMW Financial Services' current buy rate for a 36 month lease of an '08 X5 is only .00275 for consumers who pay a security deposit at lease signing. Make sure that the dealer that you are working with uses this factor to calculate your truck's monthly payment.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Greetings rootbeer1. BMW Financial Services' uses a pass / fail system to determine whether consumers can lease vehicles through it. This means that the only benefit that you will derive from your solid credit score is the ability to lease through BMW FS.

    BMW is running a loyalty program that provides enhanced special lease money factors to current lessees on certain models right now. Unfortunately, the X5 is not one of them.

    Vehicles' residual values are basically set in stone and individual dealers do not have the ability to alter them. However, dealers can mark-up vehicles' money factors to add hidden profit to deals. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 X5 4.8 with 15,000 miles per year are .00230 and 58%, respectively. Make sure that the dealer you are working with uses these numbers to calculate your truck's monthly payment.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • miltimilti Posts: 14
    Car_man,

    Thank you for all the information you provide.

    I leased a 2006 X5 in June of 2006. It is a three year lease. I am thinking about getting a newer X5 (2007 or 2008) before my lease is up.

    The reason for this is to get more options such as a trailor hitch and naviagtion without having to spend $2000 or so to acquire these options, only to lose this money when I turn the vehicle in.

    My questions are:

    What should I be concerned with (and know about) canceling a lease early even though I want to re-lease from the same dealer?

    Does it affect my credit rating?

    If I were to go ahead and pay to have the options installed and thereby raise the value of the car, how can this benefit me. Would it only benefit me if I were to buy the car at the lease's end or are there other benefits?

    Thanks in advance
  • I have multiple SDs on 530 and lease is almost up. Does anyone know how long it takes after turn-in to get back the security deposits?
    Thanks
  • Quoted to me on a 2008 X5 3.0

    Monthly payment - $788 (including 7% nj tax)
    Initial Payment - $2212
    MSRP - $51,625
    Selling Price - $49,125 ($2500 off MSRP)
    Money factor - 00275
    Resdiual Value - $30,975

    When I calculated the payment with the above numbers I come up with bet 771-778. I know its not a big difference but hey...

    Also there's a $825 BMW bank fee, is this negotiable? I saw the same number from someone else.
  • kyfdxkyfdx Posts: 28,598
    The base acquisition fee is $625. They are marking it up the maximum allowable amount.

    Where is the acquisition fee accounted for? In the upfront payment? If not, it would be added to the CAP cost, which could account for your discrepancy.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Acquisition is lumped into my upfront costs. This $2212 initial payment includes the first month's payment ($788), 3 year NJ motor vehicle ($350), BMW's bank fee ($825), and our dealer document fee ($249).
  • kyfdxkyfdx Posts: 28,598
    Then... unless you are a returning lessee, there is a .00015 waiver bump in the MF, for not making a security deposit... Which moves the money factor up to .00290

    If that isn't it, then I give up.. ;)

    Keep in mind.. I haven't run your numbers..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • miltimilti Posts: 14
    Sorry, but I'm posting this message again to see if anybody may have some information/ideas for me.


    I leased a 2006 X5 in June of 2006. It is a three year lease. I am thinking about getting a newer X5 (2007 or 2008) before my lease is up.

    The reason for this is to get more options such as a trailor hitch and naviagtion without having to spend $2000 or so to pay for these options now, only to lose this money when I turn the vehicle in.

    My questions are:

    What should I be concerned with (and know about) canceling a lease early even though I want to re-lease from the same dealer? Do they give you a break on any early termination fees?

    Does it affect my credit rating?

    If I were to go ahead and pay to have these options installed and thereby raise the value of the car, how can this benefit me. Would it only benefit me if I were to buy the car at the lease's end or are there other benefits?

    Thanks in advance
  • billmvbillmv Posts: 145
    milti.....you should get rid of your current lease by having someone assume it. then you don't have to worry about early termination fees, credit, etc. Go to www.swapalease.com and sign up for their service.

    I just picked up a great deal on a 2005 X5 about a month ago through them. You can have someone officially assume your lease through BMW FS (back in Hilliard, Ohio) and you're off the hook. The paperwork takes a couple weeks, but it's the answer. Then you can go get the new vehicle you want. BMW told me they do hundreds of these deals. As we used to say back in Montana when I was a kid...."It's slicker than snot on a doorknob."

    Good luck!
  • kyfdxkyfdx Posts: 28,598
    Hi, milti..

    Since your question is more general in nature, rather than BMW specific, you might get a wider readership, and more answers by posting here:

    General Questions about Leasing Vehicles

    Good luck!
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • isinghisingh Posts: 13
    Hello - does anybody know the money factors and residuals for a 12K / 15K 12/24/36 month X5 CPO lease?
  • vat69vat69 Posts: 10
    BMW has dropped the lease rates by .001 for returning/existing BMW owners. The revised lease rate for Dec. is 0.0017. This is about a $90 per month reduction on a 3 yr 36m lease for a $50k car.
  • billmvbillmv Posts: 145
    vat69......do you happen to know the lease rates and residuals for returning owners of X5s? I have one where the lease expires in Oct 2008, and I'd like to start figuring out some tactics very early about how to deal with BMW.
  • vat69vat69 Posts: 10
    The current lease rate for returning owners is .0017, however who knows what it will be next October! Residuals are 60% for 3yr/36k miles and 61% for 3yr/30k miles. This is on the 3.0's. Not sure on the 4.8's - probably the same.
  • billmvbillmv Posts: 145
    Thanks! I have a 2005 4.4, by the way. I'm also wondering what the numbers might be if I wanted to extend my current lease for another 9-12 months. I like the car, and wouldn't mind keeping it for another year. Got any knowledge of what might happen in that case? Do you think BMW would use the residual value they would have used for a 48 month lease back when they did my current lease (which was a 39 month lease rather than a 36, in July 2005)? It seems like the residuals usually drop off pretty drastically when you go from a 36 month deal to a 48 month deal, and the money factors go up quite a bit too, so the numbers maybe pretty bad. I'd probably be better off to just go to a new one.
  • vat69vat69 Posts: 10
    I am not familiar with lease extensions (probably rarely done) but I would suspect that your monthly payment may not be significantly different if you just went with a new lease with minimum down payment. As the car ages, the depreciation increases exponentially, causing the residuals to drop-off sharply.
  • In my experience BMWFS does not have a problem if you want to keep your vehicle two months longer, or more that that if you are waiting for a new BMW and have a VIN or order number. Anything else and you would have to negotiate a new lease on your old vehicle, and as vat69 says you will probably be better off with a new vehicle.
  • 2007 X5 4.8 - MSRP $62,320
    Lease 3yr./36 mo.; no money down
    $910/mo.
    Although, it is not necessary for purposes of my question, but just FYI - I was told this includes dealer payment of TT&L (approx. $4K) and $3000 dealer cash toward my lease.

    Any comments are much appreciated.
  • vat69vat69 Posts: 10
    Just this week I was offered a 2007 4.8 with MSRP of $62,925 for $815 inclusive of CA tax of 8.75% with $1,200 at drive off....so not a very good deal.
  • Thanks. I assume your lease was a 36 month / 36K mi. lease as well. I know my lease payment was calculated on a .0027 MF, so I wonder how you got your payment so low with no down payment or security deposit. Lower cap costs? Lower MF? Just curious to know where I am loosing on my battle.
  • vat69vat69 Posts: 10
    Hi, I wasn't interested in the 4.8 so did not dig into the details. I do know that the lease rates for 2007's were .0023 and probably even less now with the owner loyalty in place. Also they are knocking off a good chunk on the MSRP. The only reason you should go for a 2007 is if your monthly payment would be less than for the 2008's. With the lease rate reduction in the 2008's the gap has narrowed significantly.
  • 36 month Lease w 15K miles
    MSRP: 46,675 ( Base model, nothing else)

    $2000 drive off , $735 inc. 8.25% tax.
    Los Angeles County.
    mf of .000285
  • slojoslojo Posts: 6
    I would like to lease an X5 3.0 with:
    Premium package, Tech package, rear climate package, comfort access, auto trunk gate, and satellite radio
    MSRP 55,020

    What is the current MF and residual for 36/12,000? Are we eligible for the past owner discounts if we sold a 3 series in August?

    A local dealer offered me $841+tax based on:
    selling price of $52,800 with 2600 upfront (says includes 1st, security, and $850 inception), based on MF .00310 and 60 residual

    Is this a good deal and if not where should I be around?
  • vat69vat69 Posts: 10
    Your getting ripped off. The MF is .0027 and for returning customers it is .0017. W/ the higher MF the monthly s/b around $780 plus tax. With the reduced MF around 700 plus tax
  • slojoslojo Posts: 6
    Thanks, I figured as this was their initial offer. Do I qualify for the returning customer rate if I don't currently own a BMW (sold it in August)?
  • vat69vat69 Posts: 10
    I was told by the Dealer that as long as you owned one within six months you would qualify.
  • Hey guys,

    So MF for 08 x5 is .0027 and if you qualify for loyalty program it goes down to .0017. How about 07 X5s? I've read that it's .0023 and does the loyalty program work for 07s as well? So would it go down to .0013? Is .0023 right? Can somebody help me out. I'm planning to lease one this wednesday. :confuse:
  • No, the OLP only applies to 2008 models, not 2007. Regardless of the situation, the money factor is never going to go down to .0013. If you're going for an '07, the only way to lower your payment is to negotiate down your net cap cost.
  • Thanks a lot chrisjur. Do you happen to know the residuals for 07 models?
This discussion has been closed.