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2013 and earlier BMW X5 Lease Questions



  • dpeck1dpeck1 Posts: 51

    I have been holding off ordering an X5 for lease. The MF is .0018, (4.32%). Do you think BMW will lower that rate come August? Thanks.

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're welcome, yz1281. I am not personally intimately familiar with what the market is like for the X5 right now, but if I was interested in getting one I would shop around and aim for $500 to $750 over dealer invoice. You can look up the invoice price of the exact truck that you want over in the New Vehicle Pricing section of this site.

    Make sure to stop by the "BMW X5 Prices Paid and Buying Experience" discussion for additional feedback on how much you should pay for this truck right now.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hey dpeck1. BMW's current lease program is scheduled to run through July 31st. Normally I would say that there isn't much harm in waiting to see if the program gets better because incentives traditionally improve as the model year progresses. However, many potential Honda buyers were recently burned by doing just that. Honda had all sorts of dealer cash and lease incentives on trucks in June that it completely pulled the plug on in July.

    Apparently, the recession caused Honda to slow its production dramatically. As a result, its inventory situation is low enough that it didn't feel the need to provide support on trucks right now.

    If I had to make an educated guess, I would say that BMW's August lease program will be at least as good as its current one...but in this environment it is difficult to say what will happen for certain.

    Prices Paid: Buying & Leasing Experiences Forum
  • anon3anon3 Posts: 147
    The other factor that can influence X5 purchase/lease decision is the $1,800 tax credit for the X5 diesel (in addition to the $4,500 cash assistance from BMW through August 31).

    BMW will tell you that leased X5 diesels are NOT eligible for the $1,800 tax credit. I asked my sales person to research this with BMW North America and they provided paperwork that confirms BMW's statement. BMW's web site also says that a leased X5 3.5d is not eligible for the tax credit.

    However, the IRS says different: "For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale." This statement is from the IRS bulletin for Qualified Advanced Lean-Burn Technology Vehicles that identifies the X5 diesel as being eligible for the tax credit. has similar language and refers to the IRS bulletin.

    So if this IRS statement can be taken at face value, BMW is point blank wrong that a taxpayer can't claim the tax credit after leasing a diesel X5. However, BMW will also tell you that claiming the tax credit is up to the tax payer, so they're not stopping you from claiming it.
  • misterepmisterep Posts: 52
    What if I Lease a Car That Qualifies for This Credit?

    Lessees are not eligible to claim a tax credit. The leasing party — say, a dealership — can claim the credit. You might be able to finagle an extra discount because of the money they save, but that's up to them.

    Documentation includes a Bill of Sale from the dealership.

    BMWFS uses the tax credit to support their residuals and MF on these vehicles.
  • anon3anon3 Posts: 147
    The information in your response contradicts itself.

    You state that BMWFS uses the tax credit to support the residual on a lease. In that case, the value of the tax credit is already built into the price of the lease through higher residual. You will not be able to "finagle an extra discount because of the money they save" as you put it. That money would come from BMW (not the dealer) and they aren't going to give it to you on top of the residual consideration. I tried that when I first started researching this issue.

    You state that "Leasees do NOT qualify", but the IRS says they do. The IRS and the tax code are the authority on this subject, not BMW. The confusion comes from language in the original bulletin for Alternative Motor Vehicle Credit for Hybrid Vehicles stating "If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit." The key word is "may". It doesn't say "only" or "will" or "must" or "exclusively" or "the consumer is not eligible". It only says the leasing company can claim it if they choose to. The rest of the bulletin clearly states that taxpayers/consumers who lease are eligible.

    To avoid a duplicate claim, the question remains whether BMW does claim the credit. Unless you are citing an authoritative source that BMW does claim the credit for a lease, I'm going to follow the IRS bulletin.
  • Hi - I was checking to see what the MF was for August 2009 for the X5 35d, 4.8, and 3.0. I am getting conflicting rates from dealers, and wanted to make sure I am getting the correct rate. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi usctrojan99. Here's the information that you're looking for. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2009 X5 3.0 with 15,000 miles per year are .00180 and 55%, respectively. The numbers for an otherwise identical lease of an X5 4.8 are .00155 and 56%. The numbers for an '09 X5 35d are .00250 and 55%.

    You never mentioned how long you want to lease for or what mileage allowance you need, so I had to make some assumptions. Let me know if you want something different.

    When negotiating your lease on the X5, make sure to take the $4,500 cash incentive that is available on the 35d or the $1,750 loyalty cash that is available on the 3.0 and 4.8 into account.

    Prices Paid: Buying & Leasing Experiences Forum
  • Car_man,
    Thanks for the reply. I was looking 36 months/10K miles for the lease. For the diesel, one dealer said .0025 and and another quoted .0021.
  • lmil42lmil42 Posts: 1
    You are correct that the tax code is the authority on the subject, but an IRS press release is not if worded in conflict with the tax code. If you read in the regulations and the instructions to form 8910, the IRS clearly states that a lessee is not eligible to claim the credit. Only the purchaser or lessor is eligible for the credit.
  • eonickseonicks Posts: 3
    Hi Carman, you've provided some useful information in this post. Can you tell me the MF and residual for a 2009 X5 diesel.....12000 miles per year/ 36 months?

    Also, when calculating the residual amount....its the residual percentage multiplied by the MSRP or the negotiated selling price.


    Eric :)
  • The residual percentage is always multiplied by the MSRP.

    Moderator - Prices Paid, Lease Questions, SUVs

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    No problem usctrojan99. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 X5 diesel are .00250 and 58%, respectively.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Thanks Eric. My partner in crime already told you about how residual values are calculated, so here's the information on the lease program that you wanted.

    BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 X5 diesel with 12,000 miles per year are .00250 and 57%, respectively.

    Don't forget about the dealer cash when negotiating your lease.

    Prices Paid: Buying & Leasing Experiences Forum
  • elanspelansp Posts: 36
    A BMW dealership near me is offering up a 2009 4.8 with an MSRP of around $62k for a lease price of $560 per month for 36 months. They want $3900 cap cost reduction to get to this per month price. Anyone have any idea if this is a good price? I'm trying to figure out the ultimate sales price as it seems as thought here is a $5k spread between invoice and MSRP and I'm wondering if there is dealer wiggle room. They have a handful of 2009's left on the lot....

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi elansp. You really should have the dealer tell you the selling price that they are charging you for this truck. As you know, the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without the selling price, it is difficult to tell how large a dealer discount you are being given, and in turn if there is any room left to negotiate. Let us know what this truck's selling price is and I;m sure that either myself or another knowledgeable community member will gladly tell you what they think.

    Prices Paid: Buying & Leasing Experiences Forum
  • elanspelansp Posts: 36
    Hi CarMan-

    Understood - as it was closing time for the dealership, I asked the salesman and he said he'd get back to me. The ad on the dealer's website doesn't indicate selling price and 10k/year. I noticed that the invoice to MSRP spread is almost $5k. For a 2009, should I be able to get it close to invoice plus any additional cash back to net my monthly payment down?

    Thanks ina advance.
  • that dealership wouldnt be in southern california would it?

    I would lease that / want to lease that
  • elanspelansp Posts: 36
    Nope, not in CA.....I think here in NY/NJ/CT X5s have fallen out of favor - gas guzzlers, economy stinks, etc. I know BMW is kicking back $1750 to lower lease payments but I think for leftover 2009s based on what others have posted, I should be able to get it close to invoice which should yield attractive monthly lease payments given that 2010s are starting to pop up....
  • so190so190 Posts: 3
    Dear forum members,

    I'm in the market trying to lease a BMW X5 3.0i. I have just received a quote from one dealer and was just wondering if I could get comments from you.

    10k miles / 36 month
    MF: 0.00235
    Residual: 58%

    The drive off cost is
    Fees & Ins: $758 (the dealer said this is a bank fee)
    Cap Reduction: $4,990
    plus 1st mo. payment
    plus upfront taxes
    minus the customer rebate of $1,750

    There is also a Documentation fee of $55 and flat add/county fee of $26 to the total sales price.

    Am I getting an okay deal or a bad deal? First time leasing a BMW X5 so any comment / help will be appreciated.

    Thank you.

This discussion has been closed.