2016 BMW X5 Lease

selh_03

selh_03 said:

danmgy11 said:

Don't use it as a down payment you should apply it to multi security deposits instead. 

Please explain.

This is  the current BMW lease incentives:

• $629 First month's payment

• $3500 Down payment

• $0 Security deposit

• $925 Acquisition fee

• $5054 Cash due at signing

danmgy11

So putting money down on a lease helps reduce the cap cost which in turns lowers your monthly payment, but you lose all the money you put down at tthe end of the leas.  

The multiple security deposit (MSD) is just what it says. Each payment is the monthly lease amount rounded up to either $50 or $100 (i.e. $635 is $650 and $685 would be $700) each one you make lowers the money factor, I think you can only make up to 8 of them. So you lower your monthly payment and then at the end of lease you get all the money back you put into the MSD.  

You can Google it and find out the specifics on how much each payment lowers the money factor and some more details and specifics.   When I have done it I've lowered the monthly payment by about $50 (people have done the math and works out to be a great ininvestment with a lease). 

Hope that helps. 

Michaell

danmgy11 said:

So putting money down on a lease helps reduce the cap cost which in turns lowers your monthly payment, but you lose all the money you put down at tthe end of the leas.  

The multiple security deposit (MSD) is just what it says. Each payment is the monthly lease amount rounded up to either $50 or $100 (i.e. $635 is $650 and $685 would be $700) each one you make lowers the money factor, I think you can only make up to 8 of them. So you lower your monthly payment and then at the end of lease you get all the money back you put into the MSD.  

You can Google it and find out the specifics on how much each payment lowers the money factor and some more details and specifics.   When I have done it I've lowered the monthly payment by about $50 (people have done the math and works out to be a great ininvestment with a lease). 

Hope that helps. 

BMW allows 7, each of which reduce the MF .00007 - total reduction of .00049. Will save you $40-50/mo and you get that money back at the end of the lease.

selh_03

Can a vehicle trade in be used as a multiple security deposit?

selh_03

selh_03 said:

I have the following offer on the table.
  I would appreciate your opinion as to whether this is a fair or strong deal.
2016 x35i MSRP $67,470.  
Negotiated total purchase $60,723.  
Tax 1821.59
Balance is $62,611.59.
 North Carolina doesn't have a sales tax but is has a Highway use tax and then Each year I will pay Porperty tax on this vehicle.  I am using my current vehicle for the down payment which comes in at:
$5000 down (trade in)
36 months/12,000 miles per year (doubtful I will go over 10,000)
$659.77/ month

or
30 months/12,000 miles
$691.76

This is all of the information I currently have.

thank you for your help!

I'm not sure a trade in can be used for multiple security deposit.  
With the above numbers, does this sound like a fair deal?

Michaell

selh_03 said:

selh_03 said:

I have the following offer on the table.
  I would appreciate your opinion as to whether this is a fair or strong deal.
2016 x35i MSRP $67,470.  
Negotiated total purchase $60,723.  
Tax 1821.59
Balance is $62,611.59.
 North Carolina doesn't have a sales tax but is has a Highway use tax and then Each year I will pay Porperty tax on this vehicle.  I am using my current vehicle for the down payment which comes in at:
$5000 down (trade in)
36 months/12,000 miles per year (doubtful I will go over 10,000)
$659.77/ month

or
30 months/12,000 miles
$691.76

This is all of the information I currently have.

thank you for your help!

I'm not sure a trade in can be used for multiple security deposit.  
With the above numbers, does this sound like a fair deal?

Equity in a trade works the same as cash, and can be used to cover the MSD obligation.

selh_03

Thank you for your response!

selh_03

This is he comparison I have been given:
MF=4%
$5000 down
36 months/12,000 miles
MSRP $67470
negotiated amount $60,720
+ tax = $62,611

total monthly payment= $659.77

With $3750 down and 0 MSD's =$ 698.98

with 0 down payment and 4 MSD's= Payment was way over $700

danmgy11

You're going at this all wrong, you should read a few articles about negotiating to buy/lease a car.  I would start off asking the dealership for the money factor they are using. That tells a lot about what they are doing. For some reason every time I've done MSD the dealership pushes back on me.  You want to make sure they are using the same base/starting point with the money factor on both deals.  There is no reason they shouldn't be starting from the same place on both deals. 

Get that and you'll know what the true deal is and if those numbers actually line up. You really need ALL the numbers to understand what the best deal is (what figure are they using for the 4 MSD?). 

Also, if it were me I wouldn't roll the initial fees into the loan/lease amount. As a rough guideline every $1000 adds about $30 to $40 a month. 

danmgy11

I just saw that you say they are using a 4% money factor but that seems crazy high!  That equates to 0.00167.

I'd ask they amazing mods here to verify that and what it should be for this month. 

What you want to tell them is you want the "buy rate". 

Good luck! 

selh_03

Rate factor .00147

yes, I was hoping to get an expert opinion on this forum.

kyfdx

selh_03 said:

I have the following offer on the table.
  I would appreciate your opinion as to whether this is a fair or strong deal.
2016 x35i MSRP $67,470.  
Negotiated total purchase $60,723.  
Tax 1821.59
Balance is $62,611.59.
 North Carolina doesn't have a sales tax but is has a Highway use tax and then Each year I will pay Porperty tax on this vehicle.  I am using my current vehicle for the down payment which comes in at:
$5000 down (trade in)
36 months/12,000 miles per year (doubtful I will go over 10,000)
$659.77/ month

or
30 months/12,000 miles
$691.76

This is all of the information I currently have.

thank you for your help!

.00135 MF and 60% residual for 36 mo, 12K/yr.

You need some more information.

1) Adjusted CAP cost: This will be your balance, minus however much of that $5K is going toward CAP cost reduction.

2) A breakdown of the $5000 (1st payment, $925 acq.fee, title/registration, dealer doc fee? watch out for that one, down payment).

3) Money factor. BMW leases use money factors, not APRs. The fact they didn't disclose that number tells me it's probably marked up for extra profit.

Once you know the amounts above, we can check the calculations.

selh_03

selh_03

The above is the offer I have been presented.  The dealer has not provided me with their calculations for MF but said it is based on Residual %.  I have explained this number is too high.  I would appreciate your thoughts/calculations.

selh_03

kyfdx said:

I have the following offer on the table.
  I would appreciate your opinion as to whether this is a fair or strong deal.
2016 x35i MSRP $67,470.  
Negotiated total purchase $60,723.  
Tax 1821.59
Balance is $62,611.59.
 North Carolina doesn't have a sales tax but is has a Highway use tax and then Each year I will pay Porperty tax on this vehicle.  I am using my current vehicle for the down payment which comes in at:
$5000 down (trade in)
36 months/12,000 miles per year (doubtful I will go over 10,000)
$659.77/ month

or
30 months/12,000 miles
$691.76

This is all of the information I currently have.

thank you for your help!

.00135 MF and 60% residual for 36 mo, 12K/yr. You need some more information. 1) Adjusted CAP cost: This will be your balance, minus however much of that $5K is going toward CAP cost reduction. 2) A breakdown of the $5000 (1st payment, $925 acq.fee, title/registration, dealer doc fee? watch out for that one, down payment). 3) Money factor. BMW leases use money factors, not APRs. The fact they didn't disclose that number tells me it's probably marked up for extra profit. Once you know the amounts above, we can check the calculations.

The $5000 trade in covers the first months payment, $69 upfront, and $3200 in MSD's the rest is a check back to me.

danmgy11

It looks like they have jacked up the money factor up on you quite a bit.  I just looked briefly but it looks like the base rate is even lower than your discount rate, but the mods should be able to confirm that.  

Since you're getting $5k for your trade in why aren't you asking for an additional MSD to lower that monthly payment?   It looks like your only putting just over $4K down for the MSD and initial fees and stuff. 

I would also start reaching out to aanother dealership, perhaps a distance away, just so you can have another option. You don't want to get pigeonholed and feel like you need to go with these guys.  Get what you want and above all, make sure you are prepared to walk away!  They need you way more than you need them. 

kyfdx

selh_03 said:

The above is the offer I have been presented.  The dealer has not provided me with their calculations for MF but said it is based on Residual %.  I have explained this number is too high.  I would appreciate your thoughts/calculations.

They marked up the MF the maximum to .00175, before reducing it by .00028 for the four MSDs. (which is how they got .00147).

Other than the MF markup, it's not a bad deal. You are only putting first payment upfront, plus the MSDs.

You could argue for a lower money factor (.00107 with the 4 MSDs), but given the hefty $7000 discount from MSRP, would they agree? I agree with @danmgy11 . Rather than get a check back, make another $800 MSD, and lower the MF by another .00007. I will say this... no extras on this deal, other than the MF markup. No silly dealer fees or add-ons. (which is good).

As it sits, if they agreed to the base rate (.00107 MF with 4 MSDs), the post-tax payment would drop to $718/mo.

With the current deal and one more MSD, (.00140 with 5 MSDs), post tax payment is $753/mo.

Base rate with one more MSD. (.00100 with 5 MSDs), post tax payment is $711/mo.

If the payment gets under $750 with tax included, the MSDs would only be $750 each, instead of $800 each.

I'd ask for the base MF.. Given the lack of other extras in this deal and the big discount, I'm not sure you'll get it, but you never know, maybe they'll cut the markup in half?

selh_03

I explained that I was aware of the base rate MF.  They responded with this is the same as employee pricing.   So, time to see what another dealer has to offer.

kyfdx

selh_03 said:

I explained that I was aware of the base rate MF.  They responded with this is the same as employee pricing.   So, time to see what another dealer has to offer.

Just don't shut the door on this one, yet.. About a $1450 difference with no MF markup... So, you'll need a $5500 discount on a clean deal with no extras, to match this one.

danmgy11

I would really go after that buy rate and also don't be afraid to mention that you are getting your information from Edmunds (since they are pretty much the premier auto website online).  

But I agree with what was said, seems like the gave you a lower price and are mmaking it up with the higher MF.  

Keep at it, it make take some time but you'll get the deal you want. Plus now you have the print out from that dealer.  Worst case if you can't find a better deal is you come back to these guys and get it later in the month (at which time they just might be more inclined to move a bit more). 

CitznFish

Hello, first time poster here as well. We just got some lease details but it seems fishy to me.

Is this a good deal? I do not think we want to put the requested security deposit down. the MF and Residuals he sent me were:
MF .00086 Residual 60% $35,667.

VEHICLE
Vehicle: 2016 BMW X5 SERIES 16XO 4dr Wgn sDrive35i
Stock #: G0R72202
VIN: 5UXKR2C51G0R72202
Miles: 27
PURCHASE OPTION
Vehicle Price: $59,445.00
AutoNation Savings: - $4,530.00
AutoNation Price: $54,915.00

Sales Tax (estimate): + $4,991.59
Tag/Registration Fees (estimate): + $428.00
Flat Add/County Fee: + $10.00
Electronic Filing: + $29.00
Smog Abatement Fee: + $20.00
Documentation Fee: + $80.00
Balance Due (estimate): $60,473.59
No Trade-In
LEASE OPTIONS
Cash Due 36 months
12,000 Miles
$8,000 $633
Note : 4550 refundable max sercurity dep

Ask how you can protect your vehicle tomorrow with a Vehicle Service Contract today!

kyfdx

CitznFish said:

Hello, first time poster here as well. We just got some lease details but it seems fishy to me.

Is this a good deal? I do not think we want to put the requested security deposit down. the MF and Residuals he sent me were:
MF .00086 Residual 60% $35,667.

VEHICLE
Vehicle: 2016 BMW X5 SERIES 16XO 4dr Wgn sDrive35i
Stock #: G0R72202
VIN: 5UXKR2C51G0R72202
Miles: 27
PURCHASE OPTION
Vehicle Price: $59,445.00
AutoNation Savings: - $4,530.00
AutoNation Price: $54,915.00

Sales Tax (estimate): + $4,991.59
Tag/Registration Fees (estimate): + $428.00
Flat Add/County Fee: + $10.00
Electronic Filing: + $29.00
Smog Abatement Fee: + $20.00
Documentation Fee: + $80.00
Balance Due (estimate): $60,473.59
No Trade-In
LEASE OPTIONS
Cash Due 36 months
12,000 Miles
$8,000 $633
Note : 4550 refundable max sercurity dep

Ask how you can protect your vehicle tomorrow with a Vehicle Service Contract today!

If I only had a nickel for every Autonation lease "quote" I see posted here...

As a resident of California, you probably know that the sales tax and balance due are irrelevant to a lease. California taxes the monthly payment, and only taxes upfront payments, upfront.
Also, no mention of the $925 acquisition fee that's collected on every BMW lease.

No way I'd want to put $3500 more upfront, in addition to the security deposit, but I have to say, those numbers look better than they should. Does the $633/mo. include sales tax?

joiedevivre

Would you guys be so kind as to post the x5 50i mf and residuals for may please.
Test drove one today and looking to pull the trigger.
Dealer quoted MF of .00138 and 57% residual.
MSRP $82,845 sale price $78,455. 5.3% Claims no room to budge on this and MF is their rate.
Apparently no incentives for May.

Thank you,

Michaell

joiedevivre said:

Would you guys be so kind as to post the x5 50i mf and residuals for may please. Test drove one today and looking to pull the trigger. Dealer quoted MF of .00138 and 57% residual. MSRP $82,845 sale price $78,455. 5.3% Claims no room to budge on this and MF is their rate. Apparently no incentives for May. Thank you,

 I confirmed the numbers that the dealer gave you. 

joiedevivre

ok thanks for helping us uninformed members of society out

scgirl1

Hi, Looking at a 36 mo/10,000 mile lease for 2016 X5 FWD with sport, 20 in wheels, back up camera, surround view, premium package, with MSRP of $64,795. Negotiated price $60289.35. $1,000 loyalty cash. Residual 60% MF .00137. Sales tax 8%. Drive off $1,376.41 and payments $790.01. Do you think I can get more off MSRP? I'm trying to get 12% off. Is that too aggressive? Thank you!

kyfdx

scgirl1 said:

Hi, Looking at a 36 mo/10,000 mile lease for 2016 X5 FWD with sport, 20 in wheels, back up camera, surround view, premium package, with MSRP of $64,795. Negotiated price $60289.35. $1,000 loyalty cash. Residual 60% MF .00137. Sales tax 8%. Drive off $1,376.41 and payments $790.01. Do you think I can get more off MSRP? I'm trying to get 12% off. Is that too aggressive? Thank you!

.00137 MF and 60% residual is correct. Need the adjusted CAP cost to calculate the lease, but those figures look close.

No idea what you might be able to negotiate, but looks like 8%-9% is what we see from members, lately.

bajsum4

Whats the current rebate on 2016 X5 40e hybrid?? One dealer told me its $6500 whereas other is insisting on $5500

kyfdx

bajsum4 said:

Whats the current rebate on 2016 X5 40e hybrid?? One dealer told me its $6500 whereas other is insisting on $5500

Sorry.. we don't have the September programs.