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2013 and earlier BMW X5 Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go, drewmisha. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2008 X5 4.8 with 12,000 miles per year are .00175 and 57%, respectively. This money factor is reduced by .00080 on models that are not equipped with the free Premium Package.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • mehra1mehra1 Member Posts: 3
    Considering a 2008 X5 with the following, is this a good deal?
    Premium package, cold weather package, rear climate package, and iPod adapter…. msrp $52,075

    With a CAP cost of $48,575 the lease would be $651.96** plus $32,59 tax… $684.56 per month.


    Residual $29,162.00 money factor is .00145

    Up front costs:…………..1st month $ 684.56

    Refundable sec deposit…….700.00** **Requires BMWFS approval to waive**

    Bank acquisition fee…..……925.00

    Tax……………….……………46.25

    Registration/doc fee/plates..379.00



    TOTAL UP FRONT……….. $2,734.81
  • byumbyum Member Posts: 13
    I think you can do better as I was offered this lease yesterday.

    2008 X5 3.0, Premium, Navigation, Ipod

    MSRP $51350
    Selling Price. $45695

    $2500-Total Drive Off
    36 months
    12k/Year
    $564 + tax (8.25%) = $610.53
  • copperskiercopperskier Member Posts: 7
    thx byum. couple of questions - what state do you live in, and can you break down the $2500 drive off? i am considering an X5 vs a Q7 and this seems considerably cheaper than the Q7 w/Premium Plus package. At least before negotiating.
  • jayriderjayrider Member Posts: 3,602
    BMW is advertising a lease for an 08 X3 with an msrp of 50375. The deal is 4k down and 559 for 36 months. If you negotiate 4k off msrp and come in at a purchase price of 46000 then what happens to the 4000 down and the 2990 due in Illinois sales tax? If you want a zero down lease does BMW pay those for you or do you fold the 7000 back into the lease and figure your payments on a $53000 car? Thanks
  • jayriderjayrider Member Posts: 3,602
    That was the X5 3.0 not the X3.
  • cdepaolacdepaola Member Posts: 11
    Thoughts on this deal would be appreciated.

    2008 x5 3.0, premium, cold weather, iPod, Pan Sunroof... MSRP 53,000.00ish.

    36 months, 15000 miles

    This vehicle was also a service loaner, has 8300 miles on it.

    1300.00 drive off

    $675.00 per month and they are picking up the last payment of 629.00 on my old Acura MDX lease.
  • kinjachriskinjachris Member Posts: 10
    I've been going back and forth with a dealer in LA. Seems the residual is low on the 2008 X5 3.0 and the money factor is so so right now. I have some time but would prefer not to wait. Was hoping you would rub your magic ball and give a prediction on what you expect MF and residual to be for November and December. Really wanted to wait and buy the diesel x5 but I'm being quoted MSRP, low residual and high MF so its coming in over $1100 a month for a 36 month lease so if its going to be a "popular" item, can't see how its going to make sense for a lease until the novelty wears off. You future predictions on those all important variables please!
  • kinjachriskinjachris Member Posts: 10
    nyinla... tell us what dealer gave you a 56% residual please! great.
    rules in orange say you can tell us the dealership names good and bad but no salespeople. please post. lets get business to the good ones and away from the bad ones. thanks. your rates are pretty good, did you get a returning customer discount?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kinjachris. As you may already be aware, BMW made a significant enhancement, probably the biggest one that I have ever seen it make, to its lease program for 2008 models on October 9th. This enhanced lease program is currently only scheduled to run through the end of the month. It is difficult to say whether BMW will extend it into November, let alone December. If I was in the market for an '08 X5, I would pull the trigger right now. If you would rather go with an '09 model you probably won't lose much by waiting.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • jayriderjayrider Member Posts: 3,602
    Here you go Car Man. Still trying to figure out the deal with no money down leases for future reference. The BMW website has a deal for an X5 3.0i msrp $50375 [base model --none on the lot for sure] and a 36 month lease of $559. For this price they require $4009 cash down and you pay the taxes. If you negotiate $4009 off the msrp you still have $83 a month tax in Illinois so your payment would be $559 approx.[somewhat less based on lower selling price] plus $83 per month tax for a total of $642. So based on this, could I expect to walk into the dealership with $642 [1st month] in my pocket and an 850 credit rating and and drive away with a new BMW.Of course the lease is for 10k per year and I would need 12k.[always something] And would that seem like a good deal?
  • eskaymarshaeskaymarsha Member Posts: 2
    Hey everyone I'm new to this and I have a question...

    Not sure if the November lease programs are out yet, but as far as an '08 X5, what were the rates in October and what are they in November? Did they get better, stay the same, or get higher??

    I don't know if you need more specific information, but I'm in New York, interested in a 36 month lease with 10,000 miles a year, and I have BMW loyalty.

    I hope someone can help!
  • kinjachriskinjachris Member Posts: 10
    Not sure if this helps for NY or not...
    In CA i was just quoted 2 days ago.
    bmw loyalty money factor of .00150 (.0020 is standard)
    residual 53%
    They were pressing me to purchase before end of Oct but I'm not in a terrible hurry.
    I'll take my chances on Nov and Dec. BMW can not be immune to the crashing US economy, seems to me it can only get better for an suv purchase...
    good luck.
  • eskaymarshaeskaymarsha Member Posts: 2
    Unfortunately I don't know much about money factors and residuals.. When I asked the dealer what % it was in October for the '08 X5, he said 3%. What does that mean? And is it lower or higher in November??

    If you don't mind, please explain it to me like you would to a 5th grader!
  • kinjachriskinjachris Member Posts: 10
    money factor is a fancy way of disguising interest rates to confuse consumers for leases. If it is a purchase they will normally quote you an interest rate like you got etc.
    You need money factor if you are going to use a lease calculator off the web to figure payments, etc.
    Simply multiple the money factor rate by 2400 and you get an interest rate you will recognize for approximation.
    .0015 * 2400 = 3.6% ---- .0020 * 2400 = 4.8%
    Once you know money factor, residual and the price you pay for the car you can calculate an APPROXIMATE lease payment using the lease calculator on this website which you can find at:
    http://www.edmunds.com/apps/calc/CalculatorController?pmtcalAction=lease_calc&ti- d=edmunds..calculators.basic_loan_tab.basic_lease.tab_link..*

    Can't tell you on November yet, no one has posted those numbers if they went up or down.
  • jmcbmwjmcbmw Member Posts: 85
    I also posted this in the "prices paid" section. I'm in So CAL helping a friend find a lease on a 2008 or 2009 X5. He finds a 2007 X5 3.0i with only 135miles on it that the dealer is claiming is new. Is it possible this vehicle had some sort or problem or accident that they do not have to disclose because it was never registered? It's in the color he wants (Monaco Blue) and has almost all the options we have been looking for. MSRP is $56740 and it has premium, sports, comfort access, sat radio, running boards and rear climate. They are offering $10K off sticker. The only info I can find is for a 2007 certified used X5 in outstanding condition listed on edmunds at $44700. We are also very concerned on lease numbers (money factor/residual) for an 07. They haven't given us this info yet but will post later.
    Otherwise we are looking at an 09 because have not been able to find an 08 with color and options. Another dealer is offering $1600 over invoice and buy rate MF on an 09 lease and $1600 below invoice w/ buy rate if we can find an 08.

    Any thoughts on this 07 would be appreciated. As of now I am telling my friend not to jump on it as it seems wierd.
    Thanks!
  • kinjachriskinjachris Member Posts: 10
    that does sound wierd. like an indiana jones relic.
    well please post the info you get from the dealer, I can't wait to see the residual on an 07 that is essentially two years old before it gets on the street. I can't imagine that car is going to pencil for a lease at all. If you figured a new one will depreciate 47% in three years (based on 53% residual), lets be super kind and say it depreciates 1/3 of that each year (which can't be true, it would be more heavily weighted on the first year and a half). In that super generous example, it depreciates 15.6% a year. So in a petri dish, 10k off seems reasonable. Facts are it is 2 model years old so technically it has depreciated 2 years already right? Thats 16,500 of value already gone, poof. My guess is that car was off the road for several months in a body shop on a bad test drive!!!

    What dealer still has an 07! Tell us! Sales must really be down there!
  • kinjachriskinjachris Member Posts: 10
  • jmcbmwjmcbmw Member Posts: 85
    2009 BMW X5 Wagon xDrive 3.0i
    24 Month – Residual 63% of MSRP – .00175 Base Rate
    36 Month – Residual 57% of MSRP – .00175 Base Rate
    48 Month – Residual 39% of MSRP – .00285 Base Rate
    60 Month – Residual 33% of MSRP – .00285 Base Rate

    2009 BMW X5 Wagon xDrive 4.8i
    24 Month – Residual 63% of MSRP – .00150 Base Rate
    36 Month – Residual 57% of MSRP – .00150 Base Rate
    48 Month – Residual 32% of MSRP – .00285 Base Rate
    60 Month – Residual 26% of MSRP – .00285 Base Rate

    Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms
    Info taken from Roadfly.com
  • kinjachriskinjachris Member Posts: 10
    Thank you. Good to see the residual go up.
    So it brings about a question. For purposes of using online lease calculators to get a ballpark lease payment, should I be using the residual of MSRP or of the purchase price.

    For example. 09 X5 3.0 36 mo. lease @15k miles per year. MSRP of what I'm selecting is in the 57-58k range. Invoice is around 52-53k. Lets just say for argument sake to help me understand this I paid invoice. So I would put the price paid as my cap cost, the above money factor and from what I'm hearing I should put 57% of MSRP into the calculator instead of 57% of 53k.

    Is this correct?
  • billmvbillmv Member Posts: 148
    Yes. Always use MSRP to calculate the residual dollar amount by multiplying the MSRP by the percentage number.

    In three years, say, the vehicle will be worth X, regardless of how good or bad a deal you cut when you "bought" it. If two people buy identical vehicles, and one just pays full MSRP and the other negotiates the pants off the dealer and gets it for $3,000 less, both vehicles will be worth exactly the same at any given future point in time. Assuming of course, that the mileage driven is identical, etc.

    The payment will be less for the person who did the best job negotiating the "selling" price, though. If both vehicles have residual values of $35,000 36 months from now, and Buyer A "paid" $57,000 and Buyer B paid $53,000, then those amounts are used to determine the amount of depreciation which goes into each lease payment. Buyer A's monthly depreciation is $611.11. Buyer B's monthly depreciation is $500.00. ($57,000 - $35,000 = $22,000 / 36 = $611.11)

    To get the "interest" portion of your payment, just add the cap cost to the residual value and multiply that total by the money factor. ($57,000 + $35,000 = $92,000 x .00150 = $138.00)

    Add the depreciation component of $611.11 to the interest component of $138.00 and you come up with your pre-tax payment of $749.11. Add sales tax to $749.11 each month and you have your monthly payment. To the penny.

    Hope that helps!
  • jmcbmwjmcbmw Member Posts: 85
    The dealer (in Long Beach CA) would not give my friend any clear info on leasing the 2007 X5 they have. Only said it has to be 48 months and were then all over the map with numbers. He walked and quickly. I was working on a 2009 deal that he walked from as well. They woudn't do better than $1600 over invoice which was fine. All they had to do to make the sale was include dealer install Sat radio and they said no. Guess business is booming at BMW!
  • ddianaddiana Member Posts: 1
    i was just quoted on an '08 X5 3.0 (gray w/ black interior) cold weather, premium, ipod, rear climate, premium tech package = $48.6k + taxes. it has 4k miles on it - they say it was driven by the mgr.

    lease - 12k miles --> $623/mth with $3,410 down.
    claims this car is priced at invoice but i havent seen the paperwork yet to confirm.
    should there be more room in this price considering that it has 4k miles and given the economy is essentially crumbling around us??? if so, what is a fair price where both the dealer and I can walk away satisfied?

    thanks for any help .
  • kinjachriskinjachris Member Posts: 10
    ddiana, they must have a creative version of the word invoice then as a car with 4k miles on it is USED no matter how you look at it. However if you only pay the drive off which is probably around 1400 or so that monthly price rises about $60 and isn't bad for the equipment you are getting as long as your lease doesnt include their mileage as you benefit from less depreciation versus a new one. so in that regard doesnt seem that bad.

    As for the guy talking about the Long Beach, CA dealership above, I had the same experience there. Was pulling teeth to get info, very salesy, not at all helpful. Frankly I will be happy if I never step foot on that lot again, just a complete waste, might as well be a ford dealership. Try Irvine. They have an internet dept that I found to be exactly as you would expect to find it. Worth the extra drive from LA.

    Maybe we consumers are just missing something. Maybe BMW isn't having any issues at all in the economy and they can keep trying to charge msrp. ha!

    As for an earlier post on November money factor. The numbers i quoted are for returning bmw customers. for new customers the money factor was .00190. The rise in the residual number helps tremendously on the lease payment.
  • smilsomsmilsom Member Posts: 11
    I have an 06 X5 3.0 and my lease expires in 2 months. Currently my lease payment is $630/month. Can anyone give me any info on how a release works with BMW Financial Services? I have no problems with the car would just like to drop my payments below $400/month.

    How does this work?

    Thanks!
  • billmvbillmv Member Posts: 148
    Just call them and talk to a customer service rep. I recently went through the same process. She told me that a re-lease would be quite expensive, and instead offered to sell me my X5 for a discount from the residual value. Then they would finance that amount 100% at a decent interest rate (I think it was 3.9%) for 60 months. I opted not to do that, and gave the vehicle back, but that's how it works.

    Make them give you a number to re-lease it, and the assumptions that go into that payment amount. You have to understand how they're getting to their number. If they figure that the new residual value will be quite low, X years out, and they apply a higher money factor to the new lease, then your payment may go up from $630, not down.

    It's all in the math.

    Good luck.
  • idrumidrum Member Posts: 2
    Looking at '09 X5 3.0. Premium, Cold Weather, Rear Climate, Tech Pkg, Comfort Access, Heads Up, IPOD.

    MSRP of $58,475. Quoted sell price of $56,720.75. Edmunds has invoice at $53,675. What do y'all think would be a reasonable sell price?

    Also, I plan on leasing - 36 mo/15K miles - was quoted residual of 57% which seems in line, but MF of .00215, which seems high - the forum says it should be .00175.

    Lastly, they dont have the car I want. They do have one in dealer search but it doesnt have the Heads Up which I REALLY want. Does ordering give me less negotiating power?

    Based on the numbers above, where do you think my final sell price should land and should I expect a lower MF?
  • idrumidrum Member Posts: 2
    I cant seem to locate the car I want with the options - specifically, no one has Heads Up, which I GOTTA have. Since I'll have this car for 3 years on the lease, makes sense to wait the short time to get exactly what I want. The dealer is telling me that, assuming we wrap up the order next week, that I can expect the car in the 4 week time period - so basically around Christmas.

    Has anyone ordered one? Any thoughts on experiences/timeline? I dont want that 4 weeks to turn into 3 months of 'where is my car?'

    Also, does ordering the vehicle versus purchasing from the lot diminish my negotiating power?
  • b4zb4z Member Posts: 3,372
    I talked briefly with my BMW salesperson and it seems that taking the .9%
    for 5 years and doing the balloon seems a better deal and a lower monthly payment than leasing. I'm in the $550 mo. range with $6K down on a 3.0si.
    I think you guys are coming up with higher lease payments?
  • eights38eights38 Member Posts: 145
    Hi b4z,

    The balloon payment financing alternative that you are referencing is quite attractive thanks to the reasonable balloon (residual) and 0.9% interest rate. However, comparing a lease to this balloon payment financing alternative could prove to be a costly mistake, especially in the long-term. In a lease, BMW Financial is carrying the residual risk and is responsible for assuming the lease at lease-end and re-marketing the vehicle in the used car market. With the balloon payment financing alternative, you are responsible for the residual and can either keep the car by paying the balloon or attempt to re-sell the vehicle in the open market with no guarantees.

    Depending on your economic and driving situation, I would think twice about balloon payment financing.

    Best,
    Matt
    eights38@gmail.com
  • faye94faye94 Member Posts: 9
    I am trying to negotiate a deal from internest sales department of BMW dealers to purchase a 2008 X5 3.0 with premium, real climate control. They insist that is in my advantage to buy it than lease it.
    I have a MB E350 which I need to return by 12/30/08. I only have few more weeks to figure this out.
    If I buy it calculating around 50,000.00 by 0.9 financing for 60 months my payments including tax would be around $900 for 5 yrs!!! for a car with no warranty for the last year of ownership!
    what is the best deal this month for leasing the same car for 10,000 m/y for 36 months? what would be the residual value at the end of the lease? What should I be looking for.
    Would you please advise. Thanks
  • jayriderjayrider Member Posts: 3,602
    6-700 per month plus-minus on most of the posts.
    expensive tastes usually require deep pockets. Wish they didn't.
  • scouv1scouv1 Member Posts: 3
    I am trying to Lease a USED 2008 X5 3.0 Premium, Tech, 3rd row seating and 11k miles with an asking price of 49k. My company requires that I lease. Does anyone know the residual value or the money factor for a used X5. The car is in So Cal

    I am told that the rates are less favorable than those for a new 2008. I assume this is because of lower Residual and Money factor. Are these set by BMW financial or by my sales team. Are they negoitiable?
  • scouv1scouv1 Member Posts: 3
    I understand BMW financial will allow you to add extra miles to a lease at .16$ per mile up to the last 4 months of the term of the lease. Will they recalculate your monthly lease payment as the actual residual value of the car changes. For example if you add 20k extra miles for $3,200 to a 10k/yr 3 year lease and return a BMW with 50k miles its actual value is less. Will your monthly payment change?
  • kyfdxkyfdx Moderator Posts: 236,681
    When you add extra miles during the term, I don't think the residual changes. It is just a straight purchase of the extra miles. They will pro-rate the charges over the remaining term of the lease, if you wish, though.

    If you have the miles added to the contract, upfront, then the residual is reduced by $0.15/mile.

    regards,
    kyfdx

    Edmunds Price Checker
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  • scouv1scouv1 Member Posts: 3
    Thanks kyfdx

    So if you need 25k miles per year it seems better to lease at 10k miles /yr with a residual around 62% and add the miles than to recalculate the lease based on a 3 yr old car with 75k miles.

    This assumes the you have to lease a car.
  • bmanpcbmanpc Member Posts: 6
    Please help me on a 2008 X5 3.0 lease in upstate NY. It is a holdover DEMO with 2,500 miles. MSRP $55,325, Selling price $49,700 Lease: 36 mo./12k miles
    Includes: Premium Pkg, Cold Weather Pkg, 3rd Row, Rear Climate, Rear DVD & Park Distance
    Residual is (56%)? & Money X = .00125 (3%)
    Monthly payment $699.66; included taxes and zero $ down payment

    Question 1: is this a good deal or could they come down? they wouldn't budge when I asked for accessories or lower payment. should i just take it at $699 or what is the REAL monthly # I can get this down to? dealer said "No X5 goes below $700 with zero down". Any truth to this?
    $2,405 due at signing (inception fees)
    $699.66 1st month
    $625 bank fee
    $225 office fee
    $155 plates
    $700 security deposit

    Question 2: can i negotiate any of the fees (bank & office)?
    Since the car is a demo I lose my BMW CCA loyalty rebate, and the dealer will still not budge. Dealer in NY said if I don't pull the trigger by Tuesday, he will not honor the offer and has other buyers wanting the car.
    Questiion 3: What can I get him to throw in or work with me on? Possible tire waranty since they are run flats?
    Please help me, I need to decide in next 48 hours.
  • jayriderjayrider Member Posts: 3,602
    It's a buyers market. Relax -- you probably didn't notice the other buyers lined up at the back door of the dealership hoping that you will let the deal of all deals slip through your fingers. You didn't notice them because they weren't there. You need to get over to the 5 series discussion and touch base with jvost. You can read his last few postings in the lease discussion. Tell him jayrider sent you.
  • bmanpcbmanpc Member Posts: 6
    Many thank jayrider...it think you are right to take a step back and relax. however, all i need to hear from someone in the forum is if this is a solid deal or just run of the mill. according to the salesman, this is a real bargain. i can't say that i see it that clearly. i lookup jvost and get opinion.
  • billmvbillmv Member Posts: 148
    bmanpc.........a couple of thoughts.

    First, the $225 "office fee" is just extra profit for the dealer. Negotiate that. You cannot negotiate the bank fee below what BMW Financial Services charges. The dealer can mark that up, but it appears they're not doing that here, so it's non-negotiable.

    Is .00125 the 'buy rate' MF for this model for a 36 month lease? I think it might be .00115. If so, then the dealer is making about $8 per month extra by slightly increasing the money factor on you. So there's $300 or so over 3 years.

    You have a question mark after the 56% residual figure. You need to get either the exact % or $ amount of the residual value from the dealer before you can calculate your payment. The dealer cannot arbitrarily change the residual value. That's set by BMWFS.

    It's my understanding that in the state of New York the taxes are all paid up front, so it becomes hard to figure out how your $699.66 payment "including taxes" is calculated. Given the MSRP and the $49,700 price you are getting, and using that as your cap cost, and 56% as the residual %, then the pre-tax payment would be $650.15. How you add tax to that is another story.

    Can you compare the $49,700 price to a new vehicle? What kind of a price could you get on a vehicle without 2500 miles on it? Maybe they've already given you a deeper discount than they would since it does have 2500 miles on it. The selling price is the only place it looks like you have any negotiating room, since it's a demo. You're getting a bit over 10% off, so it appears to me you do not have a lot of room there. I just boils down to how the dealer accounts for their "cost" on demos, and thus what kind of a deal they're willing to cut. I wouldn't look for much more than you've already got. They are running a business, and they DO need to make a little profit now and then, so you have to be realistic in your expectations. You're not going to get them to price the vehicle at $39,995..

    The rest of the fees look normal.

    Good luck.
  • bmanpcbmanpc Member Posts: 6
    billmv...WOW...you know your stuff, thank heavens for experts like you!!!!
    I did look up the residual and it is 56%, but the actual # the dealer gave me is lower than the 56%. Based on his #'s he have me a 54.4% residual of #30,144, at 56% it should be #30,982. However, I have in writing a 56% #. Does this mean he is making the .015 on me or a difference of $868 total. Can the dealer play with these #'s?

    I'm not looking to get the car for a dealer loss, just a fair price, so my expectations are inline.

    As for taxes, my tax rate is 7.375% in NY or $1,860 over 36 months or $51.65/mo. So that computes with your $650/mo. calculation without taxes up front.

    Basically, the question is where can I deal? Is it on the selling price, maybe have them "throw in" an iPod adapter, maybe a wheel/tire warranty, etc...I'm not looking to get over, but want to be assured my deal is a solid one....any more advice?
    I really appreciate your input!
  • jh87jh87 Member Posts: 14
    It seems people are paying more than bmw's current X5 4.0 lease offer. From bmw usa's website, for X5 4.0, monthly lease payments of $669.00 for 36 months based on MSRP of $60,525.00 (includes Premium Sound Package, Premium Package, Third Row Seating and Destination).
    Is this a good deal?
  • faye94faye94 Member Posts: 9
    Why can't any of the sales rep. give us the straight answer. The MSRP is 53575, final agreed price of 50,875. At first the monthly payment without tax was $808.00 p/m for a lease.After questioning the numbers, and going back and forth finally he quoted :
    Residual of 60%
    MF of .00175
    700 refundable deposit
    Payments of 768?
    and then I questioned the numbers again , and finally he agreed to 699.89 a month without sales tax for
    36 months and 10,000 month. and is not giving me any of the other numbers!!
    I do not know how to deal with them any more. I might as well buy the dam thing instead of leasing it.

    Any Idea any one!!!

    does anyone know how he is coming out to all these figures. I cannot trust any of them any more. What is the residual for 36 months on a 2008 and 2009? I think he wants to cover his discount?
  • kyfdxkyfdx Moderator Posts: 236,681
    The dealer can't change the residual... It is set by BMWFS for each model, term and mileage..

    60% and .00175 are the correct numbers for 3yr/30K for an '09 X5 3.0

    The last numbers I saw for an '08 were .00125 and 56%... but, that was October... I think they stayed the same for November.

    regards,
    kyfdx

    Edmunds Price Checker
    Edmunds Lease Calculator
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  • jh87jh87 Member Posts: 14
    based on your number, the monthly payment for a X5 3.0 with MSRP of $50,375 should be $683. How come the BMW usa website has an offer for $599. see this
    http://www.bmwusa.com/Standard/Content/FinancialServices/LeaseOfferDetail.aspx?e- nc=YzdojlNoJgtAAlV9XOcZbg==
    Please enlighten me.
  • kyfdxkyfdx Moderator Posts: 236,681
    Not sure what you mean by, "based on your number"..

    You can't calculate a lease payment without knowing the selling price or CAP cost.

    In the BMW website example:

    $559*/month for 36 monthsVehicle Registered outside N.Y.
    • $559 First months payment
    • $2,850 Down payment
    • $600 Security Deposit
    • $4,009 Cash due at signing

    Note the downpayment.. and yet, still no mention of the selling price.

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  • jh87jh87 Member Posts: 14
    I mean using the money factor and residual number to calculate the monthly payment. I am using the MSRP as the selling price. In the BMW website the quote for the $559 lease offer is based on the MSRP of $50,375. X5 3.0. If I am able to negotiate the selling price lower than the MSRP, I supposedly should get better deal than the $559 offer, right? My question is why every one got a dealer quote much more than BMW's current lease offer. Please help me understand this!
  • kyfdxkyfdx Moderator Posts: 236,681
    I'm sure that the example given on the website already assumes a discount from MSRP. Not certain how much, but at least $1000, I would think.

    Why do dealers quote a higher price? More miles, more options, less of a discount, taxes, registration fees, markups to the money factor and acquisition fee..

    Any or all of the above..

    regards,
    kyfdx

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  • billmvbillmv Member Posts: 148
    jh87.....the reason others are getting higher quotes is because they are not making a down payment, as you are. The down payment of $2,850 divided by 36 = $79.17. Add that to $599 and you come up close to the $683 number. Not exact due to interest. (No tax in any of these, BTW)

    When you put money "down" you lower your payment. It's a bad idea to do that, so most people calculate their payments at zero "down" and only plan on paying the DMV fees, deposits, first month, etc. You can either roll the bank fee into the lease payment or pay it up front with the DMV fees, etc. If you do not pay it up front, and roll it into the lease, it will add about $100 to it due to the interest paid on it.

    You ALWAYS want to negotiate as low a selling price as you can, even on a lease. That price becomes your capitalized cost, which is used in the lease payment calculations.

    Assume you can negotiate, say, $3,000 off MSRP, and then redo your numbers using that as your cap cost. Calc them with and without the advertised $2,850 "down" and you'll see how that changes things too.

    Happy turkey day!
  • jh87jh87 Member Posts: 14
    Thank you very much for the reply!
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