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2013 and earlier BMW X5 Prices Paid and Buying Experience

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Comments

  • sirmansirman Posts: 10
    What is a good figure to get to for a 3.0 or a 4.4. I would prefer to get the number as a percentage above invoice. Also how much above invoice should I pay for any options. I was thinking about negotiating to 5% above for the basic vehicle, 0% above for destination, title etc, and 1% above for optional extras. How does that sound? Even though this isn't the X3 forum, can someone add the same numbers for an X3 3.0? I am in the Danbury, CT area with multiple dealers in the surrounding area.

    Thanks
  • sirmansirman Posts: 10
    If you have the cash available, you are going to be better off investing it than spending it. eloan etc. have rates about 5.5% for 60 months. You will surely do better than that by investing.
  • gnailuhgnailuh Posts: 13
    Is it? I do a lot of investing... 5.5% rate, let's say I take the lot and invest it, and let's say I make money on my investment... after taxes, 33% (let's say) of that goes away, for me to make back my 5.5% I'll need to earn about 9%. 9% average return for 5 years is not easy with mutual funds... if you hit a good year, yes. Stocks, sure, but high possible lose too... And then the management overhead and trouble you have to take, especially stocks.

    ING Direct offers 2.8% on savings, if I get 2.9% for a car loan, then I'd do it for sure... but @ 5.5%... I'm not sure. Home equity lines are always good (tax deduction).. but with interest going up, month-to-month adjustables will creep up.
  • gnailuhgnailuh Posts: 13
    5%? on a 45K car? That's REALLY high! I just ordered a 05 3.0 for $500 over invoice... always go absolute #, not %. Destination will never be more for retail. $$$ over is for entire car... Find the car with ALL options, at invoice price and negotiate $XXX over that price. The only thing is MACO (maybe I got tricked) is an advertising fee, which all dealers in the bay area will charge if you go X over invoice. So I got $500 + MACO (1% of base invoice) for a pretty loaded X5. With MACO, that's $880 over invoice.
  • sirmansirman Posts: 10
    Depends on how you look at it. My assumption is that he has the cash and doesn't need to use a portion of it each month (anyone who can save $50k should be able to afford monthly payments). A 60 month loan at 5.25% results in a total interest payment of $6958 over the 5 years. Earning 5% in a mutual fund over the same time period earns you $13814 (less $4500 tax at 33%) leaving you a little over $2000 better off. The down side is that you have $950 less disposable income each month - but I said, presumably he can cope with it to have saved $50k to begin with.
  • sirmansirman Posts: 10
    OK. I must be missing something here. At $500 over invoice the dealer makes a loss. Let's say you car is invoiced at $45k. Is that the true cost that the dealer has BMW to obtain the car? Does he pay BMW when he gets the car or when he sells the car. If the latter, then let's assume the average time a dealer has a car in inventory is 2 months. At a modest 10% cost of capital that equates to an opportunity cost of $750. He then has to pay a lease/rent/interest payment for his property. I'll guess a $10,000 a month payment and a 100 car inventory. That's another $100/car/month. Utilities probably run another $10/month/carand his overhead for non commission staff another $20 or $30/month/car. We are already at about $900 per car and we haven't paid the salesperson yet. He probably gets somewhere in the region of 1.5% per car (on average) which adds another $675. In otherwords the dealer franchise has just lost $1000 in selling you the car. I am sure some of this is made up in the service charges that go hand in hand with "free customer maintenence, but it seems like a bad deal to me.
  • kyfdxkyfdx Posts: 29,785
    I don't really care how much the car cost the dealer, or how much he makes..

    I do know the invoice amount, and even though that might be an artificial number, I know what other people are paying relative to that amount.. and, a lot of them are paying $1000 or less over invoice..

    Is the dealer losing money at that price? Might be... but, I doubt it.

    Should it matter to me? I don't think so.. My job is to buy the car as cheaply as possible..

    But, I do agree with one point... The higher the MSRP, the bigger the profit number will likely be.. While $500 over might be possible on a 325i, it isn't likely on an X5 4.4, or a 545i.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • gnailuhgnailuh Posts: 13
    Dealers now have two sales departments... floor sales and internet sales... floor sales are your traditional guys... work from msrp. internet guys are purely on volume. If dealer gets $1000 rebate for each car up to 500 sold per month, but $1500 for each car if they sale over 500 (including the first 500) then that makes more sense. So, go direclty to the internet guys, what's what I did and I got $500 over, traded 4 emails and the order process took 30min.

    Even if the dealer sale at invoice, they still make money. BMW has no dealer hold back, even then, they still pay less than invoice. All depends on how many BMW dealers you have in yoru area. Bay Area, we got 10+, so they willing to deal. I bought my first BMW in LA, they deal even better.
  • gnailuhgnailuh Posts: 13
    sirman, you are certainly right about your calculation, however, you missed one important point. the opportunity cost of the monthly payment. sure, $950 might not be a big deal as disposable income, but if I dish out the $50k, then I would save that $950 per month right? And if I take that $950 per month and put it in that account... that's another $6000+ I would get in that 5 years. So... if I do the loan, I would be up $2000 as you said vs. lump sum payment, but I would then lose the $6000+ in interest that I could have earned with my monthly savings.
  • maf1maf1 Posts: 15
    Does anyone out there have any experience with BMW’s PrePay, paying the three year lease up front? If so, what do we have to look out for. Does it actually save you any money?

    Thank you,
    MAF1
  • mannydommannydom Posts: 32
    what should one's expectations be at day of lease signing?
  • hpowdershpowders Posts: 4,269
    I requested a monthly lease quote by e-mail on an X5 4.4 for 36 months, 36,000 miles. Instead of giving me a quote, the salesman e-mailed me that he will try and beat any quote I get in writing from another dealership.
    What is the best way to respond?
    My instinct tells me to never contact this dealership again. I don't like playing games.
    Should I just move on?
    Thanks.
    hpowders
  • kyfdxkyfdx Posts: 29,785
    I might try one more e-mail... saying: I asked for a quote from you..

    See what kind of response you get.. If it is more of the same, then I would definitely move on...

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • hpowdershpowders Posts: 4,269
    I was on leasecompare(a fine place to look if you want bloated money factors and very low residuals) and they had a link to a dealer lease quote. I figured I would get a quote. Nope.
    I will wait for the end of June when dealers will be much more willing to deal.
    Thanks for the advice.
    Regards,
    hpowders
  • I currently lease a 2002 X5 w/ Premium Package, Rear Climate, Cold weather package, and automatic transmission. I have 42 month lease @ $521 month (15,000 miles per year), I put down an additional $1000 cap reduction at the time of purchase. I think this was a real good deal. I am currently over my miles by 300 miles and the lease is up at the end of July. I figure I will owe about $1000 at the end of the lease in over charges.

    I am currently negotiating for a new X5. 2005 with Cold Weather Package, Leather, Moonroof, automatic. No premium package or rear climate. The car will be ready in early June - 36 month lease @ $590 per month (15,000 per year) with a $1000 cap reduction. The dealership will cover $500 of the over mile charges, and tint the back windows for free (since I'm not getting the rear climate package).

    Do you think this is a good deal? I think it is great the dealer is willing to help with the miles & tint, I am just not trilled to pay $70 extra per month for a vehicle that has less features (no premium or rear climate). Any advice would be appreciated.

    thanks.
  • kyfdxkyfdx Posts: 29,785
    The dealer isn't really "helping" with your overage and the tint.. I'm sure he is factoring that cost into the deal. IOW, no such thing as a free lunch.

    But, a 36 month lease is usually more expensive than a 42 month lease.. Factor in higher interest rates and a higher MSRP for '05 vs. '02 and it doens't look like much of an increase to me....

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • mdkappymdkappy Posts: 5
    Would you please advise on a reasonable 36 month, 15K/yr lease (including 6% sales tax) with just inceptions down (acq fee $625, doc fee $98, DMV $278 and 1st month's payment)? Credit score is >800. Last leased with BMW in 1995. I live in Northern NJ.
    Premium package
    Navigation
    Automatic
    Xenon Adaptive Headlights
    Cold Weather Package
    Rear Door Airbags
    Preference color: Kalahari Beige Metallic with Truffle Brown interior

    I don't know what the latest residual is or what the money factor is here in the Northeast. I really appreciate your help.
  • kyfdxkyfdx Posts: 29,785
    Figure out the MSRP, and I'll run some numbers..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • bobby4bobby4 Posts: 3
    On the BMW website, this is a special lease offer they have

    "Lease financing available on 2005 BMW X5 3.0i vehicles, registered outside of NY, only at participating BMW centers on leases assigned to BMW Financial Services NA, LLC/Financial Services Vehicle Trust through April 30, 2005. Monthly lease payments of $479.00 for 36 months based on MSRP of $43,670.00 (includes automatic). (Total lease payments including acquisition fee is $17,244.00).

    Excludes tax, title, license, and registration fees.(could someone tell me how much I should expect to pay for these?)

    10,000 miles per year, 20 cents for every additional mile

    395$ disposition fee

    Vehicles registered outside of N.Y.
    $479 First month’s payment
    $2,500 Down payment
    $500 Security Deposit
    $3,479 Cash due at signing
  • This sounds like a great deal. Could you please tell me in which state or city you are. If you are around LA, please tell the dealership's name. I am thinking about leasing a 2005 X5. I went to one dealership and they gave me estimated deal. 36 month lease. $2000 due at signing with 694/month for 36 months with 10,000 miles per year. I don't think that sounds like a good deal. This car has sports package, premium package and couple more things for a total of around $51,000.

    Let me know your feedback please

    Thanks
  • murmalmurmal Posts: 25
    I have received a quote for 2005 - X5 - 3.0i with the following Packages.
    Cold Weather Pkg, Premium Pkg, Rear Climate Pkg, Automatic, Leather, Self Dimming Interior Mirror, Xenon Lights:
    MSRP - $49,920/-
    Invoice - $45,725/-
    Selling Price: $46,998/- + Tax + Title + (Processing Fee ($389.70). :cry: )

    With Navigation:
    MSRP - $51,170
    SP - $50,170/-

    On X3 same options as above without Navigation
    MSRP - $44,295
    SP - $38251

    Is this quote a good one? Any feedback would be greatly appreciated. I am not
    comfortable with this quote. How much can I negotiate. They have above 7 X5's
    in their lot and require suggestions and expertise of this group, so that I could
    get my first luxury vehicle.

    Thanks in advance,

    Murmal.
  • nevisnevis Posts: 9
    Went to a bay area dealer and was told that the money factor is 0.00165, quite high compared to the 0.00125 not so long ago. Is this from the recent interest rate hike or the dealer's mark up?
  • kyfdxkyfdx Posts: 29,785
    That is the dealer mark-up.. the MF is still .00125

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • nevisnevis Posts: 9
    Thank you for the info. kyfdx, I'll contact the other dealers to see what they offer. Is it still possible to get the $500 over invoice kind of deal these days?
  • bmwcccbmwccc Posts: 234
    Does anyone know if BMW leases a CPO?

    Thanks
  • jimincajiminca Posts: 1
    Hi Gurus,
    Never leased a vehicle before so apologize for my ignorance. Need to find out if this is a good deal:
    2004 X5 4.4I lease at $711/month. The seller has a lease till Aug 2007 and wants to transfer the lease as-is. His current odometer is pretty low and hence the lease is left with about 30K miles in the next 27 months.
    The purchase price at end of lease is $35K.
    Not sure how lease payments are calculated - any advice is appreciated.

    Thanks, Jim.
  • nevisnevis Posts: 9
    If you have a few thousand $$ lying around, would it be a bad idea to put it as down payment? less finance charge isn't it?
  • kyfdxkyfdx Posts: 29,785
    The finance savings would be minimal...

    For instance... assume the money factor is .00125.... Each $1000 you put down will only save $1.25/mo. in finance charges... The effective interest rate is only 3%.. You can earn that on a bank CD..

    Not worth putting your money at risk for that amount..

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • nevisnevis Posts: 9
    Is it worth getting the lease protection? $599 covering $5000 cost of wear and tear. But each item has to be under $500. So it sort of falls in between small scratches that are "normal wear and tear" and major ones that should be covered by your auto insurance.
  • kyfdxkyfdx Posts: 29,785
    For $599, I'll take my chances.. Other than over-mileage charges, I've never been hit with more than $125 at lease end.. I think the most I've heard anyone else being charged was still under $2K, and that was because of unrepaired collision damage... that can be covered under your auto policy..

    This sounds like a dealer "profit-center"...

    What does your car you drive now look like after three years?

    MODERATOR
    Prices Paid, Lease Questions, SUVs

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