# 2013 and earlier BMW X5 Lease Questions

CarMan@Edmunds
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Hi everyone. Please use the following discussion to post any questions that you have about leasing a BMW X5. Thanks.

*Car_man*

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343.0 X5

Money factor: .0012

Residual: 54%

I calculated this against the lease special of $459/mo on a $43670 X5 listed on bmwusa.com and came within $10 per month. None of these numbers reflect the $5000 dealer cash I've seen mentioned.

My question is, with the $5000 dealer cash from BMW, how much off MSRP should I be shooting for now? We are looking at an X5 3.0 Auto with Prem, CW, Rear Climate, Xenons and Nav., MSRP $52020.

Also, should I expect to get better discounts if I want to get the X5 and an 06 330i at the same time?

Thanks in advance for the help.

182Looking for money factor and Residual for X5s, both 3.0 and 4.4.

24 and 30 months

15K/year

Also, want to know if current marketing support can be used with leases.

Thanks in advance.

395MSRP = $43,670

Sales price = $39,770 (you pay $2,500 upfront plus they discount the car $1,400)

Residual = 57% ($43,670 X 0.57 = $24,892)

Money factor = 0.0012

Payment is $459.08 plus tax

The residual value is given in the ad (36 mos 10K miles) - I don't know what the money factor is for September but it was 0.00075 in August. Of course BMW dealers are known for bumping up their money factors so I would wait until I know what the officila money factor is.

34I think if you recompute, you'll find that it is both $2500 down and a $2500 discount off MSRP. Using those numbers with 57% res. and .0012 MF I hit $459 to the penny. No other fees included.

At least I know what I'm dealing with now. Thanks drtravel for your insight.

Still, the big question is, what kind of discount should I be looking for overall with the $5000 dealer cash. Looks like edmunds TMV is about $6k off MSRP. If BMW is giving up $5k of that then the dealer is still making 3k over invoice on an end of year car. That seems like a lot since people aren't paying that for 06 330i's.

395Think about it this way the dealer is getting $5,000 from BMW but is only discounting the car $2,500 - looks sweet to the dealer. I say you should be able to get the lease deal without putting down any money - that way BMW is actually subsidizing the money factor instead of making the customer pay more upfront to cover their lost interest.

34They get the $459/mo figures the following way.

MSRP $43670

Selling price $37870 ($5000 bmw cash + $800 dealer)

Down pmt. $2500

Residual 57% or $24892 (for 10k/yr, 54% for 15k)

Money Factor .0028 (same as 6.72% interest!!!)

The .0012 lease rate was last month and is now more than double. The dealer I talked with was only willing to add another 475 off to to the numbers above for a total of $6275 off MSRP. A total lease price before TTL of $439/mo. on a X5 3.0 w/auto.

The car we wanted with premium, cw, climate, nav, xenon & sd mirrors with an MSRP of $51370 gives a pmt of $673 w/o TTL using the above numbers. Much different than the $500/mo. the last senario brought me to.

Hope this helps someone, I doubt we'll be buying one at that lease rate.

395Thanks for the numbers. I agree it doesn't make sense to lease this vehicle.

1Thanks! -Jay

3952005 X5 3.0 - lease for $396 + tax 36mo/30K

MSRP of $45,020, selling price of $37,532 ($7,488 of MSRP), cap reduction of $3,000 so total cap cost is $34,532

Using 57% residual and 0.0028 money factor I come up with a payment of $414.95. Not sure how they calculated the $396. Total drive off is $5,168 whcih includes $3,000 cap reduction, $450 security deposit, $625 acquistion, $396 first month payment and $697 of something else - maybe additional cap reduction?

34With the additional $697 it comes to $394/mo according to my calculations. I got the same $415 as you did without that. Strange they would mention the selling cost and the 3000 down pmt, but not put the 697 anywhere in the ad. If they are expecting the purchaser to put the additional money down they have to call out what it is, don't they? Other wise it looks like the same 36mo, 10k/yr lease that I was talking about.

Even with $7488 off, the money factor of .0028 (or 6.7% interest) is killing any chance of me leasing an X5. But since the local dealers have an average of about 5-7 05's on the lot right now, they are not worried about it.

249,232I think that is the correct money factor...

regards,

kyfdx

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Edmunds Moderator41The new rate for October is came from internal memo of BMW Usa. Hopefully every one will have what they want.

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182395Cap cost is 35940 ($2,500 down + $5,000 incentive + $230 off)

57% residual

money factor of 0.0025

payment is $458.97 + tax

dealer is still making $3,410 on the car - seems high

249,232I haven't reverse-engineered the payment from the ad, but I do notice that the cap cost

includesthe acquisition fee of $625, so the discount you calculated would be at least $625 more.regards,

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41Thanks,

Larry

34Since you replied to my post, I'll give this a shot.

I'm still trying to get that much off sticker, so that looks good to me, although I've seen $8k mentioned as a target off MSRP.

MSRP 49720, selling price 42220

If it is a 10k miles/yr lease, I come up with $583/mo before TTL.

On a 12k/yr lease I come up with $595, so the lease number looks reasonable.

Those numbers include no additional fees at all.

Good Luck

5I'm in Chapel Hill, NC and the dealer is offering $ 45,920 as purchase price. What lease number would be reasonable for 24 months, 15,000 miles and with 2,500 down?

Thanks for any help.

Jay

9505'05 X5 3.0, CW pkg., premium pkg., rear climate pkg., auto, heated front seats, self dimming mirrors, xenon, premium h-fi system. MSRP 50,920. Selling price 44,920 + tax, tags & doc. fee. Hope this helps.

Looking to lease for 24 months, 15 K miles/yr. Would a 39 month, 15 K miles/yr lease work put better?

Jay

95:confuse:

Thanks for the help.

249,232The '05 is probably a better vehicle to buy than lease, right now...

regards,

kyfdx

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Edmunds Moderator5What I am wondering is whether I can get the car for a little more money in November but end up paying the same on a lease once the MF and residuals are adjusted. August MF was far more favourable, right?

Thanks.

5249,232Usually, once BMW puts the big cash incentives on a car, they are there to stay.. Lease incentives however, come and go.. but, you won't see any more lease incentives on this '05 model...

And, yes.. the leases in August were fantastic... but, now they are gone...

regards,

kyfdx

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Edmunds Moderator38,514Also, definitely should pay less than $4,000 at lease signing. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your X5 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

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38,514Let's calculate a sample lease payment on the truck that you are interested in and see what we come up with. You never mentioned how long you are leasing your vehicle for or how many miles per year you are allowed to drive it, so for now I will assume that we are talking about a 3 year, 15,000 mile per deal. According to my calculations, if you were to lease a 2005 BMW X5 3.0 with an MSRP of $49,720 and a selling price of around $42,220 through BMW FS right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $600. This is right around what you were quoted, so your deal looks good to me.

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4Note I would love to find an appropriately equipped '05 but what is left isn't appealing to the spouse (who will be mostly driving it...). So it looks like I will need to wait them out for a program on a 2006.

6Length of lease=36 months

Miles=12k/year

Cost of car: $46,500 (Premium, Sport, Cold Weather, Privacy, Auto, Nav, Xenons)

Money factor (.0029)

Total out of pocket ($1,187.64+$800(deposit)=$1,987.64)

Residual=54%

Residual value is $29,971

Monthly payment=$757.41

Purchase scenario:

Cost of car $50,296 (Out the door)

Interest rate: 5.48%

Payment: $821.26/month for 72 months

I was at the dealership for 4 hours struggling over the lease vs. buy decision. The money factor is high because the dealership marks up the rate by .0004. I understand the BMW buy rate is .0025. He would not budge on the money factor. My question is, is it better for me to lease vs buy? I do like having new cars every 3-4 years and have had 4-5 new cars in the past 15 years. Each time I have lost money when trading it in. Mileage wont be a factor on the lease btw. This is my thinking...

After 3 years of leasing, I would have paid a grand total of $27,655.

If I purchase, I would have paid a total of $29,565 for 3 years

The residual is $29,971. Do you think my X5 would be worth $29,971 in 3 years? If so, I can buy it out. If not, I can leave it. If I purchase it, would I be able to sell it for $26,508 (what I would owe)? If I'm not clear, please let me know. Thanks so much.

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38,514If you are forced to use the higher .00290 lease money factor, which is equivalent to an interest rate of nearly 7%, you probably would be better off financing this truck with a conventional loan at a lower rate. It is difficult to say whether BMW FS' residual value of 54% for a 3 year lease of an '05 X5 is inflated. It probably is a little higher than this truck will be worth at the end of three years, but it is difficult to say for certain at this point.

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641The BMW X5 lease problem is back for the 2006 models. Just around $700.

Here's the details,

X5 4.4 with Navigation, CD Changer, Cold Weather Pkg, Premium Pkg, 36months.

15000 miles/year, no money down. only the first month and security deposit of $650.00.

Total out of packet $760 + $650+$110 mv fees = $1520.00.

I think this is good for most of us, just like I told every one in the begining of September.

Good luck every one.

34Looking at the web site it is showing a $57595 X5 4.4 w/ spt pkg, cw, and 19" wheels with $2500 down at $688/mo, 10k lease.

If I use August rates, add 3% to the residual for a 10k lease, which is 62%. Use a lease factor of .00075 and the same MSRP I get a $624 pmt.

If I plug in your MSRP of $59940, I do come up with $771 w/o tax. I am assuming you came up with $760 judging by your out of pocket listing.

Just trying to understand so that I can negotiate my own X5.

Thanks

41The sales rep uses this figure to calculate the price for 36 months, 15000 mile/yr.

Remember, that's BMW's leasing program. In August, they had 39 months program, but now has 36 months. I asked for $700.00 per month, then we negotiated to $760.00 no upfronts, only 1st plus security fee.

Remember, that's tax included.

We are in New York. I can only write the name of the dealer.

BMW of Bayside. If you want, go to BMW's website then location their phone number and details.

34141I think they can go much lower then $760, if you can get a price from the manager.

Maybe around $720 - $730.

36months/15000miles/Zero Down/First Month and Security Deposit only.

Hope this will help you.

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4In any case, for additional info for others, with $2,500 due on signing they want $660 per month (NJ Taxes included) for a 3.0 with a list price of $51,970. I compute that the dealer is still making over $2,500 on the vehicle so the monthly payment can still come down a bit...