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2013 and earlier BMW X5 Lease Questions

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  • kyfdxkyfdx Posts: 29,094
    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...

    regards,
    kyfdx
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  • kyfdxkyfdx Posts: 29,094
    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...

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  • 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.

    Car_man
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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.

    Car_man
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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.

    Car_man
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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
    Miles=12k/year
    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=54%
    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.

    Car_man
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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.

    Car_man
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  • Thanks Car_Man. I ended up purchasing the X5 with a 5.48% apr through USAA. The lease was a bit high and I wouldn't save a lot of money over 3 years versus buying it. I appreciate the response.
  • suv800suv800 Posts: 40
    Okay,

    The BMW X5 lease problem is back for the 2006 models. Just around $700.
    Here's the details,
    X5 4.4 with Navigation, CD Changer, Cold Weather Pkg, Premium Pkg, 36months.
    15000 miles/year, no money down. only the first month and security deposit of $650.00.
    Total out of packet $760 + $650+$110 mv fees = $1520.00.
    I think this is good for most of us, just like I told every one in the begining of September.
    Good luck every one.
  • What are the numbers you are using for that $760 pmt, with $0 down and 15k?

    Looking at the web site it is showing a $57595 X5 4.4 w/ spt pkg, cw, and 19" wheels with $2500 down at $688/mo, 10k lease.

    If I use August rates, add 3% to the residual for a 10k lease, which is 62%. Use a lease factor of .00075 and the same MSRP I get a $624 pmt.

    If I plug in your MSRP of $59940, I do come up with $771 w/o tax. I am assuming you came up with $760 judging by your out of pocket listing.

    Just trying to understand so that I can negotiate my own X5.

    Thanks
  • suv800suv800 Posts: 40
    2006 X5 4.4, msrp $59895.00
    The sales rep uses this figure to calculate the price for 36 months, 15000 mile/yr.
    Remember, that's BMW's leasing program. In August, they had 39 months program, but now has 36 months. I asked for $700.00 per month, then we negotiated to $760.00 no upfronts, only 1st plus security fee.
    Remember, that's tax included.
    We are in New York. I can only write the name of the dealer.
    BMW of Bayside. If you want, go to BMW's website then location their phone number and details.
  • Do you know what money factor and residual were used? Are you getting the car at full MSRP or is there a discount by the dealer? What are your taxes in NY?
  • needneed Posts: 1
    Today I was quoted 0.0015 money factor for 2006 X5 lease as a new BMW customer. I was looking for a 3.0i with options about $49920 MSRP, dealer offers 47110. 2500 down, 500 security deposit, 36 months, 12000/yr (60% residual), payment ends up around $577 + tax around $624. It was a little higher than what I wanted. I think I would have gotten a better deal last month with the $5000 cash on the 2005.
  • suv800suv800 Posts: 40
    The BMW Dealer in Bayside uses full msrp plus all the options to calculate the price. I didn't ask what the m/f they use. My target price was $700.00 per month, tax included. They quoted me $760.00, that's the lowerest price he (regular sales rep) said.
    I think they can go much lower then $760, if you can get a price from the manager.
    Maybe around $720 - $730.
    36months/15000miles/Zero Down/First Month and Security Deposit only.

    Hope this will help you.
  • You're very welcome maximus330i. Thanks for taking the time to stop back and let us all know how everything turned out. USAA is a great bank and the X5 is a great truck. Enjoy!

    Car_man
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  • Hi tpjcourtney. As the others have already said, BMW introduced lease support on the 2006 X5 for the first time this month. BMW Financial Services' current buy rate lease money factor for a lease of an '06 X5 3.0 or 4.4 should currently be .00100 with the payment of a security deposit. Anyone who is being charged a higher factor than that should try to renegotiate with their current dealer or shop around. I would not be surprised if you were able to negotiate a lower selling price than full MSRP either, especially in an area like New York where BMW has tons of dealers competing for your business. For additional feedback on how much X5s are selling for now, make sure to stop by the following discussion: "BMW X5: Prices Paid & Buying Experience".

    Car_man
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  • Hello Car_man. I can confirm the .00100 money factor for the October program on the 2006 X-5 (not that you needed me to...), but I am trying to determine the appropriate residual for a 15K lease. They cited me 57%, but I have seen 62% for 10k and 60% for 12k - so by extrapolation I surmise 57% is correct. Of more concern - why are they trying to charge me $250 for the title and $149 more for the plates? Shouldn't this be more like $110 in total? I am not trusting them here...
    In any case, for additional info for others, with $2,500 due on signing they want $660 per month (NJ Taxes included) for a 3.0 with a list price of $51,970. I compute that the dealer is still making over $2,500 on the vehicle so the monthly payment can still come down a bit...
  • drtraveldrtravel Posts: 395
    MSRP of $44,470
    Cap cost of $41,970 (Full MSRP less $2,500 down)
    MF of 0.0010
    Residual $26,682 (60%)

    Payment comes out to $493.32 + tax

    To get their $499 number you have to use a Cap cost of $42,170 which means they are charging you $200 over MSRP!
  • kyfdxkyfdx Posts: 29,094
    Don't forget the $625 acquisition fee.... that is usually included in the cap cost on BMW's advertised leases...

    regards,
    kyfdx
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  • bdr127bdr127 Posts: 950
    And does BMW's advertisements use the MF buy rates? I would think ads from any manufacturer would have some finance profit built in....
  • kyfdxkyfdx Posts: 29,094
    Just in my personal experience.. the national ads, like the one on the website, use the buy rate..

    My local dealer changes the numbers, even when they use a copy of the national ad in the local paper.... with the money factors marked up..

    Of course, they don't advertise the money factor in either of the ads, but the ads in the local paper have monthly payments about $20-$30/mo. higher than the example on the website, for the exact same model..

    Additionally, most of the BMW national lease ads assume about a $1000 discount from MSRP, taking into account any dealer incentives... That leaves plenty of profit for the dealer at the advertised deal.

    regards,
    kyfdx
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  • What is a good target price for 2006 3.0 X5, automatic, prem. pkg, and rear climate? If I am a current BMW FS customer, purchased 2 years ago, what money factor should I be getting? I was told by a dealer that it is .0012 and that only current "lease" customers can get the .0010 Is this true? I have good credit. I'm assuming I should get the security deposit waived as well. Lease is 10K/yr and residual 60%. Thanks.
  • Hello thetaxman. The 57% residual value that you were quoted for a 36 month, 15,000 miles per year lease of a 2006 BMW X5 is correct. I am not sure how much your state charges for title and plates so I cannot help you out with that aspect of this deal.

    Car_man
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  • Hello bmwshopper1. I would be happy to give you an idea of how much it should cost to lease the truck that you are interested in. However, in order for me to do so I need you to provide me with its full MSRP (with the destination charge added in). It would be helpful if you were able to provide me with an approximate selling price for this truck as well, but not completely necessary because we can always just assume $500 or $1,000 off of MSRP for the purpose of calculating a lease payment. If you were to lease a 2006 BMW X5 through BMW FS right now for 3 years, its buy rate lease money factor should be .00100 with the payment of a security deposit and BMW FS' acquisition fee.

    Car_man
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  • Buyer beware...while using all the intelligence I have gained and can remember from this site, I have tried to talk to BMW dealers. Before I started asking questions and or quoting information about MSRP and Money Factors, actual leases etc, the dealers talked with me freely. Once I started using this information I can't get anyone to talk to me. It is like they were looking for people that had more money than brains........just food for thought is all....I will let you know when and if I buy my X5 4.4i.........
  • Is there one, consistent place to go (web site) to find "current" lease residuals and MF's. It seems that finding the current rates(from manufacturers and/or their financial subsidiaries) on forums like this is "hit and miss" which is OK, but it would be a lot more expedient if we could go to one place to view the latest rates. Since they are regularly posted on different forums, obviously the secret is out, so what's the big deal to just having them posted somewhere? That would be a significant service to shoppers like myself.
  • I had an opposite reaction from my local salesperson. He went through the numbers extensively. He understood where I was coming from but also said that there was no reason for them to use the base numbers or give any more off than their set offer because they were not having trouble selling X5's. He simply said if I could get a better deal locally, I should take it. They basically were giving just enough to meet the advertised lease price on bmwusa.com and nothing more in Sept.

    In the end I left and he has not called me back after our last face to face. I think it helped me to be informed, but I do realize that not every dealership is willing to sell at a deep discount. Due to lack of BMW competition in this area and being in a mountain state, I am never going to get the discounts on X5's that some other areas will be able to. However, due to the info I have, I will get the best deal possible here, I hope. My biggest problem is my wife wants a specific color, interior and options, currently there is no match locally. It is very hard to get someone to deal on a car you can't drive off their lot today.
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