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2013 and earlier BMW X5 Lease Questions

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Comments

  • topgun7topgun7 Posts: 409
    I think you should look at the price and the money factor separately to see if you have a good enough deal.. The saleprice is local and you can use this site to see if you can do better through them (they seems legit. they raised about 37 million in one of the venture funding a few months agao. but never use them before).

    http://www.zag.com/

    Then you should check the money factor for this month from BMW.. Looks like for X5, it is 0.0018 for 36 months.. So the dealer is marking up the money factor by 0.0002.

    http://www.leasecompare.com/auto_leasing_forum/viewtopic.php?f=18&t=3929&sid=472- b8378420a7e22302be097745a58f3

    2011 BMW X5 xDrive50i
    24 Month – Residual 66% of MSRP – .00180 Base Rate
    36 Month – Residual 60% of MSRP – .00180 Base Rate
    48 Month – Residual 40% of MSRP – .00230 Base Rate
    60 Month – Residual 34% of MSRP – .00230 Base Rate

    You can use this formular to figure out the lease payment if the dealer does not mark up the money factor (or find a lease calculator on the net.. their are plenty of them around)..

    Lease Payment Calculation Formula:
    (Cap Cost – Residual Value) / Term = Depreciation
    (Cap Cost + Residual Value) X Base Rate = Interest
    Depreciation + Interest = Base Monthly Payment

    My 2 cents is that unless you are in California (especially S. Cal), this is a reasonable but not spectacular deal.. If you are willing to spend more time search, you may be able to find better.. But if you are already tire of all the hunting, just enjoy the car...

    also with BMW, I think you can put down multiple security deposit and reduce the money factor... You get all your security deposit back at the end of the lease.. And typically, the reduction of the lease payment for BMW is equivalent to about 8-9% annual return on your mulitple security deposit (Inifiniti is the best in this regard..they are in the range of 13-14% annual return).

    http://forums.bimmerforums.com/forum/showthread.php?t=1009292
  • topgun7topgun7 Posts: 409
    You should be able to get a better deal. I just got mine $800 above invoice (MSRP 60,025 and I paid $56,600). I saw another person on the board got the 35i Premium just $500 over invoice.

    Not necessary.. Location is mighty important to price negotiation. If you are in California, you tend to be able to get much better deal than anywhere else in the country. If there is only one BMW dealer in town and they are selling every X5 in their inventory, you won't see any discount at all...
  • Hi Everyone,
    I am hoping to get feedback on a lease quote I have negotiated on a 2011 x5 35i Premium. I would very much appreciate any comments/thoughts anyone could offer!

    (To qualify this a bit: i am not sure if I am out-of-touch with reality here, but I would like lease payment to be as close to 400-500/mo if possible)

    AWD 4dr 35i Premium
    Options:
    3-STAGE HEATED FRONT SEATS (494)
    BMW ASSIST W/BLUETOOTH (639)
    BMW ON-BOARD NAVIGATION SYSTEM (609)
    COLD WEATHER PKG (ZCW)
    CONVENIENCE PKG (ZCV)
    MULTI-CONTOUR SEATS (456)
    PARK DISTANCE CONTROL (508)
    PREMIUM HI-FI SYSTEM (677)
    RUNNING BOARDS (328)
    TECHNOLOGY PKG (ZTP)

    Dealer gave me:

    Monthly Lease: $400/mo (x 35 remaining payments)
    TOTAL out-of-pocket: $19,000 down (absolutely insane)

    MSRP as built = $61,875
    Sale Price = 58,200
    BMW Financial's Acquisition Fee = 925
    Residual = $37,125 (60%)
    Money Factor = .00225
    Term = 36 months
    Mileage Allowance = 15,000 per year
    ------

    After some negotiation, I am now at:

    Monthly Lease = $665.18 (x 35 remaining payments)
    TOTAL out-of-pocket = 10,000 (includes 665.18 1st payment and 275 MVA fees and 9,059.82 Cap Cost Reduction)

    MSRP as built = $61,875
    Sale Price = 58,200
    BMW Financial's Acquisition Fee = 925
    Residual = $37,125 (60%)
    Money Factor = .00225
    Term = 36 months
    Mileage Allowance = 15,000 per year

    What is most important to me in this deal: 1) A lower monthly payment followed by 2) reducing the amount of down payment, and 3) any idea if I can ask for part of the down payment/deposit back at the end of the lease?

    Any thoughts/suggestions on this deal is much appreciated!

    Thanks,
    John
  • delta737hdelta737h Posts: 603
    edited August 2010
    John,

    Excuse me, but I'm a little confused by your statement...

    "What is most important to me in this deal: 1) A lower monthly payment followed by 2) reducing the amount of down payment "

    Given that everything else remains unchanged, how does a lower cap reduction produce a lower monthly payment? How is $665.18 lower than $400 per month?

    Naturally, the payment (665.18) is higher than (400) because the higher payment is paired with a lower cap reduction. There is no difference between the two deals except for the size of the cap reduction which changes the monthly payment. So, really, what have you gained other than lowering your exposure (i.e., risk) with a lower down payment?

    For whatever it's worth, here is my view on cap reductions...

    A NOTE ON CAP REDUCTIONS...

    I do not advise making a cash down payment (i.e., cash cap reduction). A car is a depreciating asset and is purchased for consumption; and so, it's an expense and not an investment. No savvy investor would ever invest in stock that they know will depreciate or lose value over time. Also, if the vehicle is lost or stolen and never recovered, the insurance carrier will only pay ACV (actual cash value or est. market value). If your lease balance exceeds the ACV (called the GAP), your GAP protection will cover the difference. This GAP narrows the larger the down payment. Large down payments can cause the ACV to exceed the lease balance (negative GAP). In such cases, you necessarily risk losing part or all of your cap reduction if your car is totaled or stolen but never recovered.

    Will your lease agreement provide for GAP coverage at no additional charge? If not, never buy GAP coverage from a dealer if the fund provider doesn't offer it in their lease contract, or provides it at additional charge, because the cost is grossly inflated. Check with your insurance carrier and, whether you buy or lease, your carrier can attach a GAP rider to your existing insurance policy. The annual cost, as a rule of thumb, is roughly 0.10% of the vehicle's MSRP. So, if the MSRP is $49,590, then your annual GAP premium is roughly 0.10% x $49,590 or about $50 annually.

    The two driving forces of any lease deal are the selling price and money factor. Both remain the same in your two scenarios.You need to investigate both. Negotiate a lower selling price by checking Edmund's invoice pricing as well as cash incentives, if any. Check overstock at zag.com for competitive low pricing in your area. Be sure that the money factor is the buy rate which is the lowest money factor the fund provider offers for those with excellent credit.

    As for,

    "any idea if I can ask for part of the down payment/deposit back at the end of the lease?"

    The only thing you're entitled to at lease end is your refundable security deposit. You can kiss everything else, including your cap reduction, good-bye.

    John
  • John,
    Thanks for the reply. Really appreciate the information.

    I understand 665 is obviously not lower than 400, but I did not think 665/mo for a $61k car was completely unreasonable. (With little down, i believe the monthly's were around $850-900/mo...by throwing out 400/mo to the sales guy, i was playing hard-ball...however, when they came at me with $19k down, i was thrown out of my seat)

    Info on the Cash Cap Reduction was very helpful...thx
    Any idea on how else, besides the Cash Cap Reduction, do reduce these monthly's to soething manageable (550+/-) ?...or am I just out of my league?

    The total info given, including the fees,etc was:

    MSRP as built = $61,875
    Sale Price = 58,200
    Processing Fee = 95 (Our charge to do your tax, title, registration, etc.)
    6% MD Sales Tax = 3,553.20
    MVA Fees = 275 (MVA charge for title, registration, lienholder fee, tags, etc.)
    BMW Financial's Acquisition Fee = 925
    Residual = $37,125 (60%)
    Money Factor = .00225
    Term = 36 months
    Mileage Allowance = 15,000 per year
    TOTAL out-of-pocket = 10,000 (includes 665.18 1st payment and 275 MVA fees and 9,059.82 Cap Cost Reduction)
    Monthly Lease = $665.18 (x 35 remaining payments)
  • delta737hdelta737h Posts: 603
    edited August 2010
    john r33,

    The only other way, besides a cap reduction, to lower the monthly payment is to lower the selling price and/or money factor. Have you looked into MSD's to lower the money factor? Also, I would double check the BMW acq fee. I don't know what it is but $925 seems steep.

    Apparently, you're capitalizing $1,020 which is the $925 acq fee and $95 processing fee (dealer doc fee) plus the $3,553.20 sales tax.

    So, your deal looks like this...

    MSRP............................................. 61,875.00

    Sell Price........................................ 58,200.00

    Amounts Financed
    Processing (Doc) Fee..................... 95.00
    BMW Acq Fee.............................. 925.00 (seems steep... better check this)
    MD Sales Tax @6.00%................ 3,553.20 (0.06 x 59,220.00 Tax Base)

    Gross Cap................................... 62,773.20
    Cap Reduction............................ 9,059.82
    Adjusted Cap............................. 53,713.38

    Residual Factor......................... 60%
    Residual Value.......................... 37,125.00

    Money Factor........................... 0.00225 (buy rate?)
    Term....................................... 36

    Monthly Payment.................... 665.18

    John
  • delta737hdelta737h Posts: 603
    John,

    BMWUSA's acq fee is $725. To wit...

    http://www.bmwusa.com/standard/content/financialservices/LeaseOfferDetail.aspx?e- nc=pBCPorl3nAgFp/m0PolEAw==

    Apparently, the dealer has a $200 mark-up. You need to negotiate the dealer's $925 down to something much more reasonable (like $725).

    John
  • Hello All. Im analyzing the current deal offered on the X5 Sport Activity "trim".

    BMW is offering $569/mo, 36, 10,000.

    The deal comes with the SA options (20", shadowline, etc) plus heated front seats, bringing the MSRP to 55,475 as advertised (and building it will get you the same result).

    All pre-tax but is quoted with the 725 & $4k down (cap reduction).

    Considering the going rate of 60% and .0018, I look at this deal as the equivelent of a sale price of about $52,499.

    If you run the numbers on this price w/ the current rates you come back to $569/mo.

    MSRP 55,475.00
    Sale Price 52,499.00
    Tax Rate -
    Tax Base 52,499.00
    After Tax Price (gross cap) 52,499.00
    Fees in Finance -
    Cap Adjustments (4,000.00)
    Adjusted Cap: 48,499.00
    Residual Factor: 0.60
    Residual Value: 33,285.00
    Term: 36.00
    Base Rate: 0.00180
    Interest: 147.21
    Depreciation: 422.61
    monthly Payment 569.82

    So I'm assuming a $52,499 sale price for this lease is another way of looking at this "curent lease special" advertised by BMW, all else constant?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Alex. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2010 X5 35i with 15,000 miles per year are .00210 and 56%, respectively for consumers who qualify for its top credit tiers.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dk_bmw. Is the $60,575 number that you mentioned this car's MSRP or its selling price? I ask because it is important to know both numbers when negotiating a lease. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without these two numbers, it is difficult to tell how large a dealer discount you are being given and difficult to work up a sample lease payment on your own.

    Let us know what the numbers are and I'm sure that either myself or another knowledgeable community member will gladly let you know what they think.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings sunnyvali. Here's the information that you're looking for.

    BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2011 X5 35d with 15,000 miles per year are .00210 and 56%, respectively for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical 42 month lease are .00210 and 52%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey kerb. Here you go.

    BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 X5 35i with 10,000 miles per year are .00210 and 59%, respectively for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical lease of a 2010 30i are .00180 and 50%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi JJ. According to the latest information that I have seen, BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 X5 Diesel is .00210 for consumers who pay a security deposit at lease signing.

    If you are not a returning BMW FS lessee and you wish to have your vehicle's security deposit waived, BMW will do so in exchange for a .00015 bump in your money factor.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome always_buying. I'm glad that you like this site so much.

    Let's take a look at the deal that you were offered. First off, it appears as though the dealer is attempting to mark up BMW Financial Services' buy rate lease money factor on you. BMW FS' current buy rate for a 36 month lease of a 2011 X5 5.0 is only 00180 for consumers who qualify for its top credit tiers and pay a security deposit at lease signing.

    BMW will waive its security deposit requirement for free for returning lessees and in exchange for a .00015 money factor bump for non-returning lessees.

    As far as the selling price that you were quoted goes, you are being given a $3,690 discount on this truck by the dealer. This truck probably has a spread of around $5,500 between its full MSRP and its dealer invoice price. That probably puts your selling price at just under $2,000 over invoice.

    If you are in an area that has a decent level of competition and you have the time to comparison shop, you may be able to beat this deal by a little. I personally would shoot for $1,000 over invoice and the use of the buy rate to calculate your payment.

    Car_man
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  • I need to lease a 3 row BMW X5 (2010 or 2011). if I just pay drive off and need a 36 month, 12,000 miles per year lease how much should my payment be?
  • Thanks for the info, Car_man. I have an X5 Diesel on order, which should arrive in the next 4 to 6 weeks. I currently have a money factor of .00225 locked. In the event September's money factor ends up being less, the dealer has agreed to give me the better of the two. Any idea what the money factor looks like for September? Thanks in advance!
  • Car_man and the fellow enthusiasts

    Does it make more financial sense to lease a 2010 X5 or 2011 model year? I don't have visibility to the incentives or MFs that they offer on older models. Please advise.

    :blush:
  • Kirstie_HKirstie_H Posts: 10,907
    A reporter seeks to interview someone who is planning to lease a car in the near future, or recently got into a lease. Please respond to pr@edmunds.com by Sept 16, 2010 with your daytime phone number and some words about your experience.
    Thanks,
    Jeannine Fallon
    Corporate Communications
    Edmunds.com

    MODERATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • ndxndx Posts: 2
    Hello...I am in market for BMW X5D lease w/ premium package in Phoenix, AZ market.

    Invoice Price for car w/ options: $51895 minus $4500 eco credit = $47395
    Dealer is offering ~$700 over invoice but asking additional $600 for marketing.

    Are folks paying for marketing fee? Also does anybody have money factory and residual value for September '10 of X5 Diesel (Carman???)

    Is this consider good deal? Appreciate any comments. Thanks..
  • Hi klklklklk. This vehicle's payment will vary depending upon what its MSRP is and what sort of selling price you are able to negotiate on it. I would be happy to use BMW Financial Services' current lease program to work up a sample payment on the exact truck that you want for you if you provide me with these numbers, or at least its full MSRP and dealer invoice price. You can find that data over in the New Vehicle Pricing section of Edmunds.com.

    Car_man
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  • No problem jj_x5. You're in luck, BMW's money factor for this model looks a little better in September.

    BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2011 X5 Diesel with 15,000 miles per year are .00210 and 56%, respectively.

    Car_man
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  • Hi izmirian. BMW's lease program is definitely more attractive on the 2011 X5 than it is on the 2010 X5 right now.

    Car_man
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  • Hi ndx. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2010 X5 Diesel with 15,000 miles per year are .00230 and 47%, respectively for consumers who qualify for its top credit tiers.

    Car_man
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  • I am negotiating for 2011 X5 diesel, 36month lease, 20,000 miles per year. What is the money factor for this lease, for top tier credit and the residual value %? I don't know if it's the same as the 15k per year lease rate you quoted above. Thank you.
  • Car Man,

    Thanks for all the great info. You're always a great help. I'm on my third beemer.

    I'm looking to get an 2011 X5 50i with the following options:
    Cold Weather Package
    M Sport Package
    Premium Package
    Rear Climate Package
    Technology Package
    3rd row seat
    Comfort Access keyless entry
    All Weather Rubber Floor Mats
    Carpeted Floor Mats with BMW Lettering Heel Pad

    The best price I have is $70,526. What do you think? It's roughly 500 above invoice. I'm looking to lease this for 36 months 10K/year. What are the money factor and residual value numbers for September? Are the numbers better in October? I have pretty excellent credit.

    Thanks.

    d9o9c
  • kerbkerb Posts: 88
    Hi CarMan:

    Could you provide the current rate factor and residual for a 2011 X5 35i ( base model and premium model) based on a 36 month/10k lease and 36 month 12K lease.

    Thanks!
  • Hi Car_Man
    A Chicago dealer has offered selling price of 57,500 for lease/buy on a 2011 X5 35i Premium (MSRP $60,425). Is this a decent offer? Typically, is there room to negotiate further. I will need only 10,000 miles per year.
    Thanks
    Suresh
  • Hello bmwgal3. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2010 X5 Diesel with 15,000 miles per year are .00210 and 56%, respectively for consumers who qualify for its top credit tiers.

    15,000 miles per year is the highest mileage allowance that BMW FS publishes residual values for. If you need to drive more than that, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease-signing than it is to wait until lease-end and have to pay an excess mileage penalty.

    Car_man
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  • You're very welcome, d9o9c. $500 over dealer invoice is a great price for a 2011 X5 50i.

    BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2011 X5 50i with 10,000 miles per year are .00180 and 63%, respectively for consumers who qualify for its top credit tiers.

    This program is scheduled to run through September 30th. It is difficult to say what BMW's October program will be like at this point.

    Car_man
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  • Hey kerb. I sure can. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2011 X5 35i with 10,000 miles per year are .00210 and 59%, respectively for consumers who qualify for its top credit tiers.

    The residual value for a lease with only 12,000 miles per year is 1% lower.

    Car_man
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