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2013 and earlier BMW X5 Lease Questions

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Comments

  • habsonehabsone Posts: 37
    Always go with Zero down. Do not pay any upfront money when leasing. You will not get your money back if your vehicle get totaled. Yes you will reduce your monthly payment but it is not wise thing to do.Do this instead, There is a program run by BMW I forgot the name or term for it ( may be abmwfan or Host or members can help ) where you put your $ 4000 toward that program and you will earn interest on it, at the end of the lease you will get your $ 4000 back with interest. Good Luck.
    Regards,
  • It's called MSD (Multiple Security Deposits). One can out a maximum of 7 MSDs to reduce the lease rate. So assuming you payment was coming to $700 without the sales tax per month, if you put in $4900 in terms of MSD, you lease rate will go down by 7*.07 = .49 which is significant.
  • Hi duncansmom3. The money factor that you were quoted looks great. So let's take a look at the selling price.

    After the diesel credit is taken into account, it looks as though you are being given a $3,100 dealer discount on this truck. There's probably a spread of around $5,000 between this truck's dealer invoice price and its MSRP. So you're looking at right around $2,000 or so over invoice. That's not bad, but there's still some room there. If you're in an area that has a decent level of competition, I wouldn't be surprised if you were able to negotiate another grand give or take off of this price, assuming that there is a decent supply.

    Car_man
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  • Hi chad39. The money factor looks good. Is the selling price that you mentioned before or after the deduction of the $2,500 credit. If it's before the credit is taken into account, this is an excellent deal. If not, it's still not bad...probably $1,500 or so over invoice.

    Car_man
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  • chad39chad39 Posts: 4
    This was after the $2,500 credit so probably around $1,500 over invoice. I ended up doing the deal because I was not sure how much more I could push as the car had to be located in Utah and shipped to Portland as there were no models around this area with all the options I wanted.

    Thanks for the feedback.
  • abmwfanabmwfan Posts: 47
    Why go through all that trouble when you can order the exact X5 that you want with your choice of options? The order and delivery process can take as little as 3 weeks and you get a completely fresh vehicle.
  • Thanks so much Car Guy. Ill give a go.
  • I have wondered about ordering one as well (as opposed to settling for one with features I don't want). Big question is, do you approach the negotiation of price the same as you would for a unit that is sitting on someones lot? $1,000 or so over dealer cost? To me it seems almost easier for the dealer this way, they don't have to worry about moving the unit, but I wonder. Thoughts?
  • abmwfanabmwfan Posts: 47
    edited January 2012
    You're right that ordering can be better for a dealer in several ways. All BMWs are made to order and BMW's production process is completely built around custom ordering (roughly 80% by the end customer and about 20% by dealers.) It's pretty much the norm for them. A dealer doesn't mind placing an order because it's a guaranteed sale and they know you'll be anxious to pick up your new car as soon as it arrives. The car doesn't sit on the lot with all the expenses that entails. And they also want you to be happy. If a custom order will make you happy, then most dealers won't give you grief about it.

    The price negotiation for placing an order is exactly the same as buying off the lot. You sit down with your sales rep and select the model, trim level, color, options, etc. You negotiate your price as if you were taking the car that day and you lock in your finance terms. Your finance application is submitted and approved that day. Sometimes they want you to place a small refundable deposit. The sales rep will assign your vehicle to the dealership's next available production slot at the Spartanburg SC factory.

    As an added benefit of ordering, you have the option of taking advantage of incentives and financing programs on the day of delivery if they're better than the programs available when you placed the order. You can also make other changes on delivery day like switching to a 24 month lease instead 36.

    Now, some less-than-honest sales reps will tell you that you can get a better deal if you take something off the lot. If so, call their bluff or find another sales person. You should not be forced to accept a smaller discount on an order unless they're trying to sell you a heavily discounted left-over. I always place a custom order. Most recently, I ordered a 2012 X5 5.0 and took delivery in December. The negotiated price was $800 over dealer invoice less incentives.

    A new vehicle can be delivered in as little as 3 weeks. My experience has been an average of a little over 4 weeks from placing an X5 order to driving it off the lot. Delivery time depends on a number of factors such as factory schedule, availability of dealer slots, transition to a new model year, your location, etc. (My previous X5 was delayed by the March/April 2010 volcano in Iceland because transmissions from Europe were delayed.) If the next available open slot is too far in the future, usually the dealer will re-assign an earlier dealer order to you. They would rather have that vehicle go to a guaranteed sale than for it to sit on the lot waiting for the right person to buy it.

    The other thing that I think is cool is that the dealer (and you) can track your new vehicle at every step of the process from the exact second that production begins until it shows up at your dealer. That's true of vehicles produced here and in Europe.
  • Missed Dec window for X5; Jan - high money factor, and no BMW promotions.
    For 12,000, 15000 mile lease, what is MF, residual for X5?
    Any promotions? What about X5?
    ...promotoins, in general, such as year-end, or for existing BMW owners, or recent Lexus owners?
    Thanks.
    Last question -- for Feb, do any quality SUVs or crossovers have good promotions or good MF?
    We consider Mercedes -- attractive deals ,but no xenon lights available...
  • 2012 BMW X5

    Vehicle Price - $ 59,895.00
    Discount - $4,000
    Total Selling Price - $55,895

    Tax + Title + $ 55,895 = $ 59,781.45

    Special Offer Lease X5
    Cash Due - $ 7,400
    10,000 miles = 36 months

    Monthly payment - $ 679

    Is this a good price to take ?

    Thanks
  • 7,500 is a lot of cash upfront for a leased car. I learned many years ago not to put any down payment for a lease as you can lose it if you total the car.
  • This is the special lease offer they are running on BMW. I am planning to put an extra $1,000, since I will be getting off from BMW Club USA.
  • Still too much money to put down on a lease. If there is an accident and the car is totaled that money is gone and you will not get it back from insurance. Car guy can explain it better and there are some posts recently that detail the specifics of this situation.
  • ab10000ab10000 Posts: 127
    This is the worst deal I have seen, you broke the record.
    So if they put the 7K down, back into the lease your payment will be about $800.
    For what? Are you buying the 5.0 X5? They are play a nice game with you.
  • mbtexmbtex Posts: 9
    edited February 2012
    Dear bmwvica,
    as someone who recently leased a BMW, I can tell you that this is not a good deal at all; rather than putting money down in order to finance less, I would use the Multiple Security Deposit program from BMWFS: you can put up to 7 payments in an escrow account and they will reduce your money factor by 0.00007 times the number of security deposits (up to 0.00049); this lowers your interest and will make your payment lower. This money is yours at the end of the lease (you can either take it back minus the disposition fee, excess miles, etc. or use it to buy the car if you choose to do so). This program also protects you in case you total the car (others on this forum explained this already).
    If you live in a state that charges sales tax upfront on lease (like Texas), ask if they don't have sales tax credits: those don't always exist with BMW but you can ask.
    Good luck!
  • Is there any BMW officail website ? I am searching for one inside bmwusa.com, but can;t find.
  • Down Payment of $1000 comes to $878/per month.
  • You're very welcome duncansmom3.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hey asteinberg. According to the latest information that I have seen, BMW Financial Services' February buy rate lease money factor and residual value for a 36-month lease of a base 2012 X5 35i with 15,000 miles per year are .00195 and 57%, respectively for consumers who qualify for its top credit tiers.

    The residual value for a lease with only 12,000 miles per year would be 2% higher.

    BMW is not currently providing any cash incentives on the 2012 X5 that I am aware of, not loyalty nor conquest.

    The attractive deals that were available in December just aren't there right now. The fact that January sales ended up actually being fairly strong probably won't encourage manufacturers to pour on the enhancements either.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.