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2013 and earlier BMW X5 Lease Questions



  • chaddy75chaddy75 Posts: 48
    Thanks CarMan. Two dealers concurred that the auto tailgate option has been delayed until the 2008 models. Also, the lease payments still seem pricey for an X5 with MSRP of approx. $65k... montly lease payments were quoted between $1,050 and $1,075 not incuding tax. Dealerships still seem to agree that they are still too expensive resulting in minimal X5 leases.
  • infinitimninfinitimn Posts: 144
    Car_man. Thanks for your $$$saving help in the past. I'm thinking of an '07 X5 3.0 with 10K per year x 3 years and am a returning BMW lessee. Can you give me the MF and residuals, and does it differ if I get the NAV system? Can I get a lower MF with some upfront deposits?
  • twilly3twilly3 Posts: 1
    I am being offered the following. It seems high based on the factors... any guidance would be great

    MSRP $71,000
    Discount $70,000
    Down $5,000
    36 months 12k/year
    61% residual
  • Hey all,

    Can you tell me if this is a good deal that I got. It's my first BMW.

    I just leased a X5 3.0 with Technology, Premium, Cold weather Rear climate packages MSRP 54,925

    3 yr lease
    15K miles
    $2,500 down (includes first month payment)
    Monthly payments $868
  • mikeoc1mikeoc1 Posts: 46
    I just leased a 2007 Audi Q7 3.6 Premium with an MSRP of 55,600 with no money down for 3 years 15,000 miles for $734. Enjoy your BMW. Great car, I was going to get one, until I saw the lease deals.
  • thanks. actually i went in to pick it up and got him to lower money factor a little more, thanks to some research i saw. had to put down a security deposit, and my payments went up $3 to $871, but now i get $900 back at end of lease. which equals out to $846 month... i guess it's not good as i'd like to have paid, consider my last car was a Lexus GX470 at $760 but i wanted to try something new. the ride is spectacular..
  • anon3anon3 Posts: 147
    Just one clarification in case anyone cares: the X5 is not a truck. BMW does not build passenger trucks. It does not mass produce SUVs on truck platforms like Toyota/Lexus, GM, Ford, etc.

    We'll have to wait for the "new" to wear off the new X5 before BMW will offer significant lease incentives. I got a great lease deal on an X3 two years ago (great residual, great money factor, payment of $230/month for 24 months.) It will be a while before we see a deal like that on the new X5.
  • lugoesqlugoesq Posts: 4
    Strange but I was just told that the MF for the 2007 X5 3.0 was .00330. I pretty much was quoted the same deal as BKriete, but was told payments would be $890. What does a 00330 MF translate to fomulaeically (sp?) in interest rate? 9% about?
  • mikeoc1mikeoc1 Posts: 46
    Multiply the Money factor by 2400 to arrive at the corresponding interest rate. 0.00330 * 2400 = 7.92%
  • billmvbillmv Posts: 148, great deal. Remember what month was that in? It seems like BMW runs great deals about six months after model introduction. And what dealer in what city?
  • Hi Carman-

    One dealer is telling me the residual on a 30 month 10k lease is 71% the other is saying its 63-64%. Can you confirm the correct numbers for me with the BMW Program? I am looking to lease in Maryland area. Thanks
  • infinitimninfinitimn Posts: 144
    Car Man,
    Can you list the MF and residual for a 36 month 10K X5 3.0 lease with no deposit for a returning BMW lessee. Will paying security deposits reduce the MF?
  • soc_fanssoc_fans Posts: 5
    Hello everyone,

    This is my first time leasing a car. I'm about to lease a loaded X5 4.8. The MSRP of this car is $70690. The selling price is $68,000.

    My salesman did not give me the money factor, etc. But with $3000 down, the monthly payment is $1015 before tax.

    What should i do to get a lower monthly payment? Please help!
  • mikeoc1mikeoc1 Posts: 46
    Best advice to get a lower payment is to drive down the street to the Hyundai dealer and lease yourself a new Santa Fe.

    It is going to cost over $36000 to lease a $70,000 car for 36 months when you include depreciation, interest and taxes. That's $1,000/month. If you have to put a lot of money down to "afford" the payment, you can't afford the payment.
  • omegagenomegagen Posts: 67
    Yeah, I have to agree with mikeoc1. If you can't afford the $1015 then you can't afford the X5! You could put down $10K, $20K, but that would be crazy on a lease! To really afford a $70K vehicle it would take a salary of $200K/yr.

    Hey, I'm not trying to be negative, but it's pure economics...either the money is there or it's not. I want one to, why do you think I visit this forum...dreaming! I simply cannot afford a $70K vehicle, hence, I bought a Sequoia...who said life was fair :(
  • soc_fanssoc_fans Posts: 5
    I'm not asking you to tell me if i'm able to afford one or not. I'm asking for advice on how to lower the monthly payment since this is my first time leasing a car. I have always bought cars with full cash in the past.
  • soc_fanssoc_fans Posts: 5
    I have no problem at all using cash to pay this 70k vehicle in full. Just that considering i have just spent 90k on a porsche and bought a new home, it should be the time for me to lease an SUV and sell my 04 530i.

    You should definitely put other factors such as standard of living, location and family into consideration too. I live in the city of San Francisco, and it's one of the highest standard of living in the States.
  • billmvbillmv Posts: 148
    soc fans....To answer your question directly, you must negotiate the lowest possible selling price, just like you would if you were paying all cash. You must also insist that the dealer use the manufacturer's "buy rate" money factor when calculating your payment, and also not mark up the acquisition fee. A dealer cannot control the MSRP, or the residual value, but they can control (and make money from) the selling price, the money factor, and the acquisition fee.

    A lower selling price means a lower monthly payment. Making a down payment at the start of a lease means a lower monthly payment too. The more you put down, the lower your payment goes. But, the more money you put down, the more your lease starts to look like a purchase, and defeats the reason you wanted to lease in the first place.

    The monthly payment on a lease is pure math, so you have to understand how the math works to make sure you're getting a proper deal.

    Good luck!
  • gteach26gteach26 Posts: 576
    ...then WAIT!!!!

    I applaud BMW for selling/leasing the X5 at such a high price. That's what should happen when you have a good product, good marketing and good buzz on your product.

    Still, in my mind, this SUV is TOO expensive. I can't base this on anything other than a hunch, but I think lease prices for 36 months will settle down to the 700-800 range over the next 12 months with little $$ to start the lease.

    Once the newness wears off -- fewer and fewer people will pay the price of admission and BMW will adjust their sales tactics accordingly.

    I certainly understand wanting to get into a fantastic car at a cheap price, but the reality is that now, for this suv, you've gotta pay what they are asking.

    I don't think that'll be the case for long....
  • soc_fanssoc_fans Posts: 5
    Thanks for the info Bill! I appreciate your help!
  • omegagenomegagen Posts: 67
    soc_fans, go to Build the vehicle and then go to the financing link. From there you can play with different scenerios. I used the site's financing section to apply and purchase my 2005 Z4, it's pretty simple.
  • lugoesqlugoesq Posts: 4
    Hey Car Man, know if BMW has come out with any new lease programs for the X% 3.0? My lease is up on my 2003 X5 and I am weary of getting into another one with prices pushing 900MO. If not, I'll have to find an alternative pronto
  • british_roverbritish_rover Posts: 8,458
    A nearly 70,000 dollar car should not lease for less then 1,000 dollars a month unless there are heavy incentives behind the lease.

    A 60,000 dollar car that I sell leases for $1,200 plus a month because there are no incentives on the lease at all.
  • gteach26gteach26 Posts: 576
    You make a lot of sense.

    I'll just add that from my car buying experiences, it's all about the right car, at the right time, at the right dealership. X5's are new and hot. Lease prices and incentives currently reflect that.

    I got lucky with my current car -- a 65K LS430 -- leasing it for $690 plus tax; 36 months; with under 2K to start... Cap cost was pretty close to invoice. Again, a hungry dealership with a mid-cycle model run -- just timing and luck, I guess.

    It's all a matter of timing, an incentive-minded company, and a hungry dealership....

    I'm sure BMW has people that are A LOT smarter than me figuring out what the market will bear, but asking 70K ($1000 per month lease)for the X5 seems a bit out of whack.

    Even people with money to burn don't like to overspend....

    Here in South Florida there seems to be a BMW in every driveway and the dealer to dealer competition is pretty intense. As the X5 matures a bit, I still think lease prices will edge down quite a bit.
  • lugoesqlugoesq Posts: 4
    There is an advertisement offering 36 mo lease/ 629 mo; MSRP 52,145 - Cold Wthr pack, Prem Pkg, Climate Pkg, total due $4889 (includes2995 down payment, 1st month payment, 650 ref. deposit, 625 bank fee) 10,000 mi/yr; Residual 31,808. Sign things will be better sooner rather than later?
  • mmoreno1978mmoreno1978 Posts: 106
    Agreed. I told the local dealer to give me a call when the lease gets down to $700 a month/18K Miles a year. Similar to the 530xi lease.
  • gteach26gteach26 Posts: 576
    Soon I'll bet the "at start" cost will drop in half half (1st month, misc. dealer fees, etc..) and THEN the fun will begin.

    7 or 8 X5's sitting on the lot with lots of lookers but no takers will work wonders on the price!! I'm sure in some secret executive lair deep in the bowels of BMW headquarters there is a list of incentives ready to start as soon as the market conditions call for them...

    It's still a bit soon though... a few more months for the newness to wear off should do the trick.... hang on!
  • anon3anon3 Posts: 147
    There are only a few ways to lower the payment on a BMW lease. Some you can control and others you can't influence. Your options to reduce the monthly payment are: 1) make a bigger cash down payment, 2) negotiate a bigger discount off the MSRP, 3) take 10k miles per year instead of 12k or 15k, 4) pick a longer lease period, 5) try to get BMW to waive the security deposit if you have really good credit, 6) wait until BMW issues an incentive program with either a higher residual or a lower money factor/interest rate (and no one knows if or when that will happen until it happens), and 7) pick a car with fewer options or lower MSRP. If you're leasing through BMW Finance, the dealer does not control the residual value or the money factor/interest rate, so you cannot negotiate those. Sometimes taking a longer lease period doesn't lower the price because there are depreciation inflection points built into the lease programs where the residual will drop dramatically at a longer lease period and that will neutralize the reduction in price for the longer lease period. For example, I found the difference in monthly payment between a 24 month lease and a 36 month lease to be only $100 per month with the same down payment. And, of course, total cost of the 24 month lease was over $12,000 less than 36 months. Also, recognize that in most leases, taking $1,000 off the purchase price (or putting $1,000 more towards the down payment) will only change the monthly payment by around $20, depending on the length of the lease and the money factor. The best thing to do is ask your sales person which lease duration has the best residuals and money factor, and have him/her quote you payments under different programs. Also, you can use the payment calculator on BMW's website to estimate lease payments for different cars and lease durations, but beware! BMW's payment estimator does not include title, tax, etc. so the actual payments quoted by a dealer will be higher than the payments quoted by the website calculator. Finally, I'm sure you recognize that using longer lease periods, lower annual miles, etc. introduces long term costs and risk into the lease. Always look at the total cost of the lease and not just the monthly payment.
  • gteach26gteach26 Posts: 576
    Good info!

    A much lower cap cost (with the dealers willing to take less profit on the deal) with good residuals and lease rates is where I think the X5 is headed... I can't see this SUV supporting this current price structure forever.

    Who knows.. maybe it will.
  • xwoogiexxwoogiex Posts: 8
    I've don't have much experience in car leasing/buying. I read all you Guy's comments.
    I don't know about various Dealer margins... So I just gave the dealers a final number...

    I want to buy X5(3.0) with Premium Pkg & Tech. pkg at $48600 whereas the MSRP with these accessories is about $3900 more @ $52,500

    So my questions are:
    1.You think asking for $3900 discount is bit too much or you think its Doable??? Should I ask for more?
    2. You think I should wait for some more time for prices/discounts to come down or its gonna stay like this only?

  • mmoreno1978mmoreno1978 Posts: 106
    You could never ask for too much of a discount. The worse thing they can say is "NO".

    I would wait. I am sure X5 sales are way under what they expected. I doubt the dealers are making by having the cars just sitting in their lots. They know there are better trucks for the prices they are asking, so it only makes sense to bring down the price and become more competitive.

    Hope this helps.
  • xwoogiexxwoogiex Posts: 8
    Thanks Mmoreno..
    Also, I was checking this forum for old dates & I could see in early 2006 people discussing the X5 lease to be around $469.. But now its almost $750 for same thing..
    But I have rarely seen MSRP coming down.. Do you think they might offer more discount later??? I don't have too much knowledge in this.. so don't have much idea
  • sheikh37sheikh37 Posts: 7
    I am a bit confused and need a little help..on the current special through BMW Financial

    1.Is the money factor on a 2007 3.0 X5 .0022 or .002(36 mo 15k/yr)

    2.What is the aquisition fee for the above mentioned car $625 or $825?

    3.Should I even pay an aquisition fee?

    4.Is it true BMW FS allows 7 MSD on the lease and knocks off .0007 per Security Deposit from the money factor which would come to a grand total of .00049

    5.Is the residual on a 36 month 15k/yrlease 58%

    6.Is it worth it to put down 7 MSD

    Basically I have ordered a 3.0 with premium, cold weather, rear climate, technology, heated rear seats and running boards, 3rd row seats...MSRP APROX 57275..Negotiated price 54285....I was quoted a monthly payment of 855...Total Tax rate on leases here is 10%...due at signing 1691 including first month's deposit waived as I am a returning BMWFS customer...

    Is this a good deal??
    PLease help
    Thank you
  • mmoreno1978mmoreno1978 Posts: 106
    Those were 2006 Models. Any 2007 will always start out overpriced.

    I cant see them not offering more incentives. You may just need to wait.
  • anon3anon3 Posts: 147
    Here's another tip on leasing that I've learned through experience. BMW frequently markets limited-time offer lease programs that can generate lower monthly payments. Those programs are often for 39 months. They usually include a slightly higher residual value and slightly lower money factor that reduces payments. Those programs also usually require a mandatory security deposit, acquisition fee and/or disposition fee, and they assume a standardized discount (capital cost reduction) off MSRP by the dealer.

    Although those programs sometimes generate a lower monthly payment than non-program leases, I usually find that the total cost of a program lease can be more than a standard lease. The reason is that the mandatory acquisition fee, security deposit, disposition fee, and extra 3 months of payments add more to the total cost of the lease than the few dollars you save per month on the payment. A standard 24 or 36 month lease often doesn't require an acquisition fee (pure profit) and you can negotiate away the security deposit if you have good credit. You save thousands with fewer payments and you also may be able to negotiate a better discount from the dealer than the standard program offers.

    So always look at the total cost of different lease programs. Unless the vehicle is a really slow seller and BMW has applied substantial incentives, you may find the total cost of a standard lease to be lower than a program lease on popular models.

    The other marketing "gotcha" is that that you probably will never walk out of the door with the advertised payment. The advertised payment will exclude title, tax, etc., it assumes 10k miles per year which few of us would want, and it usually assumes a basic level of options that you won't find very often on a dealer lot. You probably would have to custom order the car with the program's options and you will have to put down more cash to cover cost of tax and title.

    I am willing to bet that the average customer's actual monthly payment on a program lease is at least $100 higher than the advertised price. Keep that in mind when you go to a dealer thinking you'll walk out with a $499/month lease payment on an X5.
  • mikeoc1mikeoc1 Posts: 46
    Your logic makes absolutely no sense at all.

    First of all, a security deposit you get back. So that cannot count as a cost.

    Second, you say that 3 extra payments make it cost more than a 36 month lease. Of course it costs more, you have the car for 3 additional months. You would have another payment for those three months if you took a 36 month lease.

    If the monthly payment is lower for a 39 month lease vs. a 36 month lease, as long as there is no additional monies due at lease signing, there is little reason not to do it.

    Just make sure that the car is under factory warranty the entire duration of the lease.
  • xwoogiexxwoogiex Posts: 8
    HEY Lugoesq..
    Where did you see this deal?? It looks like a GREAT deal... Could you pls give more details..
  • mikeoc1mikeoc1 Posts: 46
    How is that a great deal? I guarantee that it doesn't include taxes, first of all. Secondly, if you take out the $3000 cap cost reduction, it adds $83/month to the payment. Third, it's for only $10,000 miles per year. Residual value looks like 61%. Seems low for only 10k/year.

    So you are looking at the mid 700s for a modestly equipped X5 for only 10,000 miles per year.

    Those "specials" are gimmicks to get people into the store. It's not about the monthly payment, it's about the total cost of the lease divided by the months. That's how you compare lease options.
  • mikeoc1mikeoc1 Posts: 46
    You can have a Ferrari for $629/month if you put down enough money at the beginning of the lease. It's not just about the monthly payment.

    Just ask all of those people that can't afford their Option-ARM mortgages that were advertised as $60/month for a $300,000 loan.
  • cioccabmwcioccabmw Posts: 10
    Mike is part correct about his assumptions on BMW's lease tactics. Yes the lease program is mildly misleading but what BMW is really advertising is that they have placed incentive on the table. Before they had these programs our money factor was about .00325 now it is like .0025. The residual stays the same. The X5 has always been in the 58 to 62% range depending on purchased miles. I would recommend getting an X5 sooner than later we have exausted our allocation and while we have 5 on the lot you can not order one for deliery and expect to get it is six to eight weeks.

    John Ciocca
  • sheikh37sheikh37 Posts: 7
    Seems like noone wants to answer my previous for the money factor being .0025(per Jon)...I belive that would include a dealer mark up as the BMWFS Money factor is either .002 or .0022...Also I just ordered mine end march and was told Ill have it by end april so I dont know about about jons statement about not getting one even in 2 months.....will someone please respond to my earlier questions.....
  • cioccabmwcioccabmw Posts: 10
    :) BMW's FS rate for the X5 for the month of April is .00220 they just went down for this month again. You can track your car online to see where it is too. Let me know if you need instructions on how to do that.

    John Ciocca
  • cioccabmwcioccabmw Posts: 10
    Oh yeah I almost forgot depending on when the dealer placed your order it all depends on what they had for allocation or if they matched you up with something inbound :)
  • carnut12carnut12 Posts: 65
    2007 BMW X5 3.0si 4WD SUV
    24 Month – Residual 68% of MSRP – .00220 Base Rate
    36 Month – Residual 58% of MSRP – .00220 Base Rate
    48 Month – Residual 40% of MSRP – .00320 Base Rate
    60 Month – Residual 33% of MSRP – .00320 Base Rate

    2007 BMW X5 4.8i 4WD SUV
    24 Month – Residual 68% of MSRP – .00210 Base Rate
    36 Month – Residual 58% of MSRP – .00210 Base Rate
    48 Month – Residual 36% of MSRP – .00320 Base Rate
    60 Month – Residual 29% of MSRP – .00320 Base Rate
  • alli310alli310 Posts: 1
    Hi Car Man,
    Can you please tell me if you think this is a good deal?
    This is for a fully loaded X5 (Premium Pkg, Sport Pkg, Tech. Pkg., 3rd Row....etc.)

    I was offered:
    2226.26 down (includes 1st month payment)
    871.26/per month payments

    Thank you,
  • anon3anon3 Posts: 147
    Mikeoc1 your statement makes no sense because you didn't read my post. I did cite additional fees due on a program lease that often aren't required on a standard lease. Money that could go toward reducing monthly payments is used for fees that are pure profit for BMW. (Like the acquisition fee. I have never paid an acquisition fee on any vehicle that I've leased, and I've leased a lot of vehicles personally and for my employees.) Those extra fees increase the total cost of the lease. I also cited the fact that you can often negotiate a bigger discount off MSRP on a standard finance plan than BMW offers in the terms of the program lease. Then factor in the effects of a longer lease term. And so forth.

    People too often take a slightly lower monthly payment even when it comes at the price of a higher total cost of the deal. You should have the numbers run under different finance options and not just assume that advertised lease program is the best deal. That was the point. I stand behind my post.

    And by the way, mikeoc1, anyone with even basic knowledge of finance knows that there is indeed a financial cost associated with paying a security deposit and getting that money back without interest years later. So you can count that.
  • mikeoc1mikeoc1 Posts: 46
    The main point that you have tried to make a couple of times is that in a 39 month lease, they get 3 extra payments out of you therefore it doesn't make the lease worth it. The point is just not true.

    If there are additional program fees, of course that makes the lease more expensive. Typically, special lease deals are advertisements to get you in the store. If you want the car equipped the way you want, you have to negotiate the deal yourself.

    We all now have these boards to provide us with the actual residual values and money factors to allow us to negotiate a true deal. Most people don't understand what makes up a lease deal.

    Bottom line, a 39 month lease, with all things being equal, is the way to go if it means a lower monthly payment. It's not the total cost of the lease that you measure, it's the total cost / months.

    I am very sure that I do have a basic knowledge of finance. The security deposit is not a cost of the lease. You can only count the opportunity cost of not having the money. You will get your principal back at the end of the lease.
  • anon3anon3 Posts: 147
    That was not my "main point". Nevertheless...

    What you're saying is, to use a similar example, that a 30-year mortgage is always better than a 15-year mortgage because the payments on the 30 year mortgage are lower. I'd like to have you write my next mortgage because you ignore the additional finance charges associated with the longer loan period. The total cost of the longer period is higher even though the monthly payments are lower.

    Same thing happens with longer leases. You're paying off the depreciation and amortized costs more slowly and financing those amounts for a longer period of time, so the accumulated finance charge (i.e. rent charge) of the longer lease period adds to the total cost of the lease. That doesn't even account for the effects of lower residuals for longer lease periods.

    A buyer likely will never find "all things being equal" between a 36 month lease and a 39 month lease. Your model only works if a person is willing to buy into the idea that higher costs are just fine if they're spread over more months.
  • anon3anon3 Posts: 147
    Mikeoc1's (bad) advice is to judge the finance contract by the monthly payments. People who do that open themselves up to some of the oldest car financing tricks in the book. The first question a shady car dealer will ask you is, "how much do you want your monthly payment to be?" That's because there are lots of ways to lower a monthly payment and still screw a customer out of thousands of dollars.

    Comparing the total cost of one lease program vs another is a better indicator of the efficiency of the financing than just comparing the monthly payments. Focusing on the monthly payment alone is foolish. Since most people don't understand the intricacies of a lease and its unique terms (as mikeoc1 stated), I always advise my clients to look at the total cost of the lease and not just focus on the monthly payments.

    And THAT was my original point.
  • chaddy75chaddy75 Posts: 48
    Would you two (mikeoc1 & anon3) just please SHUT UP with this nonsense! Go take your egos somewhere else where somebody cares. Do private emails, phone calls.. anything else to spare the rest of us!
This discussion has been closed.