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2013 and earlier BMW X5 Lease Questions



  • I have verbally accepted an offer from Concours BMW, for 3.0 with an MSRP of 49720 for 598 per month with Sec. Dep. 1st Month and title due at signing. Can I push these guys a little more? Essentially it is 5K rebate + 2.5K off sticker.


  • Hi Larry,

    Since you replied to my post, I'll give this a shot.

    I'm still trying to get that much off sticker, so that looks good to me, although I've seen $8k mentioned as a target off MSRP.

    MSRP 49720, selling price 42220
    If it is a 10k miles/yr lease, I come up with $583/mo before TTL.
    On a 12k/yr lease I come up with $595, so the lease number looks reasonable.
    Those numbers include no additional fees at all.

    Good Luck
  • tekiteki Posts: 5

    I'm in Chapel Hill, NC and the dealer is offering $ 45,920 as purchase price. What lease number would be reasonable for 24 months, 15,000 miles and with 2,500 down?

    Thanks for any help.

  • bdr127bdr127 Posts: 950
    Please give us some details..... MSRP, options, etc.
  • tekiteki Posts: 5
    oki doki. Here is the info;

    '05 X5 3.0, CW pkg., premium pkg., rear climate pkg., auto, heated front seats, self dimming mirrors, xenon, premium h-fi system. MSRP 50,920. Selling price 44,920 + tax, tags & doc. fee. Hope this helps.

    Looking to lease for 24 months, 15 K miles/yr. Would a 39 month, 15 K miles/yr lease work put better?

  • Thanks for the response. So I bought the X5 on Friday, and I truly love it. Although the gas mileage isn't as good as the RX330, I think the interior is much nicer, and besides the lease was more attractive. I had to pay an additional $10 month to waive the security deposit (money factor increase to .00265 vs. .00250), since I'm a first time BMW customer, so the final numbers were 608 + tax ($639) and the upfrom on $710 (1st month, title and registration).
  • I can get an '05 BMW X5 4.4 with extras MSRP 59,445 for 50,445. 9,000 bucks off sounds a lot, but the lease deal I have been quoted is $890 a month (this makes it zero down, no trade in so taxes are around $4k). Looking at the posts it seems the discount is good, just wondered if I would be better waiting for Money Factors to drop back down. Does anyone think this will happen?, and am I right thinking that I could pay an extra $5k if the MF was 0.0012 rather than 0.0028. Also what would be a good estimate of what the dealer would take off a $60k '06 if I waited until November? Will the $5k incentive be replaced with something else, or is this simply to get rid of '05s.

    Thanks for the help.
  • The cash incentive is to get rid of the vehicles.. I doubt you'll see the lease numbers get any better, as all of the incentives are in the upfront money..

    The '05 is probably a better vehicle to buy than lease, right now...

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  • Thanks kyfdx, so are you saying when the incentives disappear you don't think the MF and residuals will be adjusted to make the deal more attractive?

    What I am wondering is whether I can get the car for a little more money in November but end up paying the same on a lease once the MF and residuals are adjusted. August MF was far more favourable, right?

  • Sorry kyfdx - to be clear I am talking about the option of getting an '06 vehicle in November, obviously all the '05s will be gone. What I'm not clear about is whether the incentives will have gone with them!
  • I don't think that cash incentive will disappear... If BMW ends the incentive, the dealers will mark any units they have left over as "sold", and collect the incentive..

    Usually, once BMW puts the big cash incentives on a car, they are there to stay.. Lease incentives however, come and go.. but, you won't see any more lease incentives on this '05 model...

    And, yes.. the leases in August were fantastic... but, now they are gone...

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  • I'm not very good at telling the future... I'm sure as we go from Fall into Winter, lease deals on the '06 X5 will improve... but, how much? No idea...

    Moderator - Prices Paid, Lease Questions, SUVs

  • Hello thetaxman. You would be much better off going with a 2005 BMW X5 than a 2006 model at this point. BMW is providing absolutely no support on '06 models, but it has $5,000 dealer cash and a better money factor on '05 models right now. If you decide that you still want to go with the 2006 model, make sure that your dealer uses a .00180 money factor to calculate your truck's lease payment instead of the .00200 that you were quoted. Unless you are having your vehicle's security deposit waived, it looks as though the dealer that you are working with is trying to mark-up BMW FS' buy rate money factor for your vehicle to add additional back-end profit to your deal.

    Also, definitely should pay less than $4,000 at lease signing. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your X5 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

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  • Hi Larry. You did a good job in finding out about the dealer cash that is currently available on this truck and making sure that it was taken into account on your deal. I don't know the exact dealer invoice price for the truck that you are considering, but if I had to make an educated guess I would say that you are probably paying around $1,000 over invoice after the dealer cash is taken into account. This sounds like a reasonable deal to me, but you may want to stop by the following discussion to compare your price with the prices that other community members have paid for similar trucks recently: "BMW X5: Prices Paid & Buying Experience".

    Let's calculate a sample lease payment on the truck that you are interested in and see what we come up with. You never mentioned how long you are leasing your vehicle for or how many miles per year you are allowed to drive it, so for now I will assume that we are talking about a 3 year, 15,000 mile per deal. According to my calculations, if you were to lease a 2005 BMW X5 3.0 with an MSRP of $49,720 and a selling price of around $42,220 through BMW FS right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $600. This is right around what you were quoted, so your deal looks good to me.

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  • Hi Jay. I would be happy to calculate a lease payment on the truck that you are interested in for you. According to my calculations, if you were to lease a 2005 BMW X5 3.0 with an MSRP of $50,920 and a selling price of $44,920 through BMW Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $808. BMW FS is not currently offering 39 month leases on this truck, but a 36 month lease would definitely provide you with a more attractive monthly payment. If you were to do an otherwise identical lease for 36 months, your payment would drop to around $665. I think that you still have a little room to negotiate on your truck's selling price. After the $5,000 dealer cash that BMW is currently providing on this model is taken into account, you are only receiving a $1,000 discount on a leftover model that dealers will be likely anxious to sell. If there is a decent level of competition for your business in your area, you should be able to negotiate at least another $1,000 to $2,000 off of this truck's selling price.

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  • Thanks Car_Man. I appreciate your filling me in on the appropriate money factor since I had read elsewhere (probably you...) where it was indicated that BMW dealers would jack up the money factor over what was available to them. Also, re the security deposit, I should be able to get it waived since I previously leased three vehicles with a dealership under the same ownership umbrella. Note the $4,000 also included upfront sales tax and an $800 bank fee. I agree with you and totally understand not to pay any cash upfront and won't - other than title, license and the bank fee if I cannot get them to waive it (any chance on this?).

    Note I would love to find an appropriately equipped '05 but what is left isn't appealing to the spouse (who will be mostly driving it...). So it looks like I will need to wait them out for a program on a 2006.
  • I need some help desperately. Thanks in advance for reading this. Here is my situation. I am going to buy a 2005 X5 3.0 and received 7k off the msrp. Here are the figures:

    Length of lease=36 months
    Cost of car: $46,500 (Premium, Sport, Cold Weather, Privacy, Auto, Nav, Xenons)
    Money factor (.0029)
    Total out of pocket ($1,187.64+$800(deposit)=$1,987.64)
    Residual value is $29,971
    Monthly payment=$757.41

    Purchase scenario:
    Cost of car $50,296 (Out the door)
    Interest rate: 5.48%
    Payment: $821.26/month for 72 months

    I was at the dealership for 4 hours struggling over the lease vs. buy decision. The money factor is high because the dealership marks up the rate by .0004. I understand the BMW buy rate is .0025. He would not budge on the money factor. My question is, is it better for me to lease vs buy? I do like having new cars every 3-4 years and have had 4-5 new cars in the past 15 years. Each time I have lost money when trading it in. Mileage wont be a factor on the lease btw. This is my thinking...

    After 3 years of leasing, I would have paid a grand total of $27,655.
    If I purchase, I would have paid a total of $29,565 for 3 years

    The residual is $29,971. Do you think my X5 would be worth $29,971 in 3 years? If so, I can buy it out. If not, I can leave it. If I purchase it, would I be able to sell it for $26,508 (what I would owe)? If I'm not clear, please let me know. Thanks so much.
  • I'm sorry for asking this again, but I am in a real bind here. I appreciate all answers. Thanks so much.
  • You're very welcome, thetaxman. If you are a current BMW FS lessee then you should be able to get your truck's security deposit waived. BMW FS charges an acquisition fee on every vehicle that it leases and individual dealers do not have the authority to waive it.

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  • Hello maximus330i. The lease money factor that you are being charged on this truck is too high. BMW Financial Services' buy rate lease money factor for a lease of a 2005 BMW X5 is currently only .00250. Even if you were to have your truck's security deposit waived, it would only increase the factor to .00265. It appears as though the dealer that you are working with is marking-up BMW FS' buy rate to add additional back-end profit to your deal. This sort of thing is perfectly legal and happens all the time with BMW dealers, but can usually be avoided if you know what the base factor is.

    If you are forced to use the higher .00290 lease money factor, which is equivalent to an interest rate of nearly 7%, you probably would be better off financing this truck with a conventional loan at a lower rate. It is difficult to say whether BMW FS' residual value of 54% for a 3 year lease of an '05 X5 is inflated. It probably is a little higher than this truck will be worth at the end of three years, but it is difficult to say for certain at this point.

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This discussion has been closed.