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2013 and earlier BMW X5 Lease Questions



  • Thank you so much for taking the time to respond to my message!!! Great information! I wasn't aware about being a car club member?!? I will have to look into this, assuming I can find that information on the BMW USA site??? Definitely worth it! So basically, I shouldn't go by the advertised numbers/deals so much? In the end, it's the higher the residual points, the better the deal? This is so new to me. This will be the 2nd car I will have ever leased. Went into the first one without knowing a thing (Cayenne). This time, I feel like I want a little more knowledge on my side. Can you tell me if ALL BMW dealers all have the same residual chart or does it vary?
  • abmwfanabmwfan Posts: 47
    edited January 2012
    No matter what terms are advertised, my recommendation is to always negotiate the deal. The advertised lease terms are only an example and include a lot of assumptions for things like how much the dealer will discount the car off MSRP. You can almost always do better. If you ask for the advertised terms, the dealer will gladly give you that deal because they'll make more money than if you negotiate the lease.

    The December posts in this forum offer a lot of tips on how to negotiate a lease. The residual is important, but other things are important too: discount off MSRP, money factor, options, etc.

    Residuals are set by BMW. All the dealers in your area should be using the same residuals if you're financing through BMW Finance. The terms would be different if you lease through a different bank.

    Note that the BMW Car Club membership must be active for at least one year before you buy your car. They changed it back in the late 1990s because people were signing up for a membership on the same day they bought their car, taking the rebate, and then letting their membership lapse. So it won't help you today if you're not already a member, but it's something that every BMW owner should be aware of if they ever plan to buy/lease another BMW.
  • My dealer told me that $2000 is the most they are going off MSRP because the car is completely sold out and needs to be ordered? Do I have any leverage anywhere else in the cost of the vehicle, to negotiate a lower price? This is for a lease with 15,000 mi. per year.

    PS. Thanks again for that BMW Car Club information. I was able to find out how to sign up and contacted their customer service who told me I would have to be a member for 1 year before purchasing a new vehicle. Too bad for now, but GREAT to know for future leases.
  • abmwfanabmwfan Posts: 47
    edited January 2012
    Was that your dealer's opening price in the negotiation or their "final" price?

    I custom order all my BMWs and my dealer does not offer me less discount off MSRP because an order has to be placed. Roughly 80% of X5 and X3 orders are placed by the customer. BMW's sales process and the plant in Spartanburg, SC are built around custom ordering. It's how they operate and it's not a valid justification to charge you more (if that's what is happening.) I'm sure your dealer would prefer that you buy something off the lot, but that line about being "completely sold out" is just a sales tactic. He wants you to think that the car is so hot that you should pay more.

    To know if you are getting an acceptable price, ask the dealer to tell you how much above invoice they want to charge. Don't judge the deal by how much they are discounting off MSRP. There are different opinions on how much above invoice is reasonable to pay for a BMW, but a common range to my experience is $750 - $1,250 above dealer invoice (and then subtract incentives from that number.)

    In general, BMW dealers will not sell at or below invoice when you are placing an order, so don't expect that unless you're a really good negotiator. And it is winter, so X5s are in demand.

    There are some very detailed posts here in December that describe how to negotiate a lease.

    But keep it all in perspective. Don't let worry about a couple hundred dollars of purchase price ruin the excitement or convince you to take a car that's not your first choice. $250 difference in price is about $7/month on a 36 month lease payment. It's not the end of the world if you didn't fine tune the last penny out of the deal.

    You always have leverage because you can shop their deal around and buy from another dealer. Or, consider a buying service (USAA, Costco, credit union, American Express, etc. etc.) that can help you with the negotiation. When I asked my dealer last month about the Costco buying price, he said it was about $1,250 above invoice minus incentives. That might serve as a benchmark for what's reasonable. If the price is too high and the dealer won't budge, tell him you're not happy with the price and you plan to use a buying service and shop around at other dealers. Ask him to beat the buying service price to keep you from ending up at another dealer. Hopefully it won't come to that.

    Carman might be able to give you some better tips.
  • shortyrock302shortyrock302 Posts: 7
    edited January 2012
    This was the opening. Met him Saturday, but didn't have an actual car to test drive, showed me one that was going out to a new owner. These numbers were all via email communication this evening. We never really started any talk until today. For example, quoted me on a 35i premium, MSRP $60,695, dealer cost 56,895. Looking at about $871.58, taxes and fees included. Taxes 3.75%, plus rolling in some tax credit (approx $1219) from trading in my lease there. Have an appointment to go in Thursday.
  • Hey there Car guy. Just got a quote from BH BMW in Los Angeles and wanted to pass it buy you. MSRP 61,625
    Residual 58.00%
    Lease end value,35742.50
    Initial cap coast 56,008.32
    cash cap reduction 408.81
    sales tax 2,402.13 (ouch)
    adds to cap 45.00
    adjusted cap cost 45,644.51
    money factor 0.00195
    term 36
    miles 12,000/year
    base monthly 731.03
    total with everything 795.00
    Drive off 2,500
    Annual fees 465.00

    what's up with the adjusted cap cost? and should I get the dealer invoice #
  • Just out interest what package/options was this?
    And does anyone know if we can still apply for Government Tax rebate on X5 Diesel and if so what is that?

  • chad39chad39 Posts: 4
    Just got offered the following after alot of negotiations. Is it a fair deal?
    2012 x5d

    Msrp $69,375
    Selling Price $63,245
    Money factor .00195 :)
    Residual $38,500
    36 months
    15,000 miles
    5,000 down
    Monthly payment $786

    Please advice!
  • This was with a premier package. I'd also like to know the answer to the Government Tax rebate. Thanks
  • chad39chad39 Posts: 4
    Car man - does this appear to be a fair deal?

    MSRP $69,375
    Residual $38,850
    Money Factor .00195
    Money due at signing including all fees, first month payment, etc $5,000
    Received $2,500 ECO Credit
    Selling Price $63,245
    Monthly Payment $786

  • cybopalcybopal Posts: 4
    edited January 2012
    I hired a auto consultant and they gave me these numbers for a new 2012 bmw x5 sport activity lease (these numbers are before any negotiation , so all based on MSRP). I tried running these with my own calculations I have or online calculators and many things don't match, such as Cap cost (this should be based on MSRP, and Interest Rate is 1.95??? So is really the money factor is 1.95 /2400 = 0.0008125? That seems really low and good?!

    If anyone can please direct me to any online site that can generate these same cap cost, monthly payments, or how to do it manually it would help:

    Here are the numbers:

    MSRP: 67745

    CAP COST 64928.00

    CAP RED 0.00

    M.S.R.P. 67745.00

    Residual VAlue $ 36292.10

    WARRANTY 0.00

    TERM 36

    TRADE ACV: 0.00

    PAY OFF: 0.00

    CASH DOWN: 0.00

    INT RATE: 1.95

    TAX RATE: 8.25

    BASE PYMT : 1016.46

    1ST PYMT: 1100.32

    SEC DEPOSIT: 0.00

    LIC. FEE: 598.00

    PRORATA: 55.00

    BANK FEE:795.00

    DRIVEOFF: 1757.86
  • chad39chad39 Posts: 4
    I am in the process of leasing an X5d and I believe the money factor is .00195 and the residual is 56%. The way to calculate the interest rate is to take the money factor and multiply it by 2,400. See with a money factor of .00195 you get an interest rate of 4.68%.
  • Thanks, I got it now. One last help is greatly appreciated. Is is possible to see how they got this cap cost of 64,928 and residual of 36,292.10? I tried punching in the numbers and I know the sport activity model residual % is 49%. But that doesn't add up the residual number here! I thought the residual should be based directly on the MSRP here (with all required optoins included) which is $67,745 . Once I get the numbers right, I've to work on what to negotiate and how much below from the MSRP. Any advise on that? Does any of these fees look sketchy?
  • Ok. I got an explanation for that too from the lease agent. He said usually the residual is set at 58% and he had to deduct $3000 because I asked for 20k miles instead of 15K. That's 58% of MSRP minus $3000 (at 20 cents a mile for 5000 miles addtional a year for 3 years)
  • abmwfanabmwfan Posts: 47
    edited January 2012
    That is an expensive way to buy 5000 extra miles per year. All BMW finance leases allow you to buy extra miles at 16 cents per mile up to three months before the end of the lease. This deal is costing you about $90 per month ($30 per month per extra $1k) extra and you are locked into that expense even if you don't drive the extra miles. Your first 15k miles don't cost you 20 cents per mile. Consider the option to lease at 15k miles and buy the extra miles at a discount if/when you need them.
  • abmwfanabmwfan Posts: 47
    edited January 2012
    Also, don't negotiate off or down from MSRP. Negotiate a price above dealer invoice. It's the best way to know if you're getting a fair deal. Get as close to invoice as possible, but $750 to $1,250 above invoice is common. don't let them charge you more than that because buying club prices are usually $1k to $1250 over invoice.
  • Not positive, but I think the more expensive models now have a higher price per extra mile....

    That's a recent change, and probably why the OP was quoted a higher per-mile rate...

    Moderator - Prices Paid, Lease Questions, SUVs

  • abmwfanabmwfan Posts: 47
    edited January 2012
    Purchase of lease miles during the lease period is still discounted at 20% off the contract rate. From a finance perspective, the question is whether it is cost effective to lock in the extra miles and pay finance charges in an extra $90 per month payment if there's a chance that they might not use all those miles and they can pay for the actual excess miles in month 32. Keeping your money and making a payment in 3 years at a discount is cheaper than financing the payments for 3 years. The individual would have to weigh that tradeoff.
  • Agreed... no point in paying for miles that might not be used...

    But, miles that are added upfront only reduce the residual.... they aren't added to the CAP.... So, the amount subject to finance charges is actually reduced by adding more miles, not increased..


    Moderator - Prices Paid, Lease Questions, SUVs

  • cybopalcybopal Posts: 4
    edited January 2012

    Pl. let me know if this is good to go through FOR 2012 x5 50 36 month, 20000 miles/year

    MSRP - $69195 (options: Tech package, running boards, bmw app). The model comes with the premium pkg (which is standard that includes navigation etc., )
    Cap cost - $64775. The dealer said it's just $500 above invoice and I was send to the manager through some recommendation.
    money factor - 0.00195 (or) 4.68 (current APR)
    Residual (39208) - Additional 5000 miles per year added here in residual at 20 cents per mile . which reduces the residual by $3000. After reading some recommendation here from my previous post, I'm thinking of making it 15K miles and then if it's only 16 cents/mile over for additional miles, then that might be a good choice.
    Down payment: $4000. Due at signing : $1757

    Comes around to : $877/month
This discussion has been closed.