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2013 and earlier BMW X5 Lease Questions

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  • dpeck1dpeck1 Member Posts: 51
    Carman:

    I have been holding off ordering an X5 for lease. The MF is .0018, (4.32%). Do you think BMW will lower that rate come August? Thanks.

    DP
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, yz1281. I am not personally intimately familiar with what the market is like for the X5 right now, but if I was interested in getting one I would shop around and aim for $500 to $750 over dealer invoice. You can look up the invoice price of the exact truck that you want over in the New Vehicle Pricing section of this site.

    Make sure to stop by the "BMW X5 Prices Paid and Buying Experience" discussion for additional feedback on how much you should pay for this truck right now.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey dpeck1. BMW's current lease program is scheduled to run through July 31st. Normally I would say that there isn't much harm in waiting to see if the program gets better because incentives traditionally improve as the model year progresses. However, many potential Honda buyers were recently burned by doing just that. Honda had all sorts of dealer cash and lease incentives on trucks in June that it completely pulled the plug on in July.

    Apparently, the recession caused Honda to slow its production dramatically. As a result, its inventory situation is low enough that it didn't feel the need to provide support on trucks right now.

    If I had to make an educated guess, I would say that BMW's August lease program will be at least as good as its current one...but in this environment it is difficult to say what will happen for certain.

    Car_man
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  • anon3anon3 Member Posts: 147
    The other factor that can influence X5 purchase/lease decision is the $1,800 tax credit for the X5 diesel (in addition to the $4,500 cash assistance from BMW through August 31).

    BMW will tell you that leased X5 diesels are NOT eligible for the $1,800 tax credit. I asked my sales person to research this with BMW North America and they provided paperwork that confirms BMW's statement. BMW's web site also says that a leased X5 3.5d is not eligible for the tax credit.

    However, the IRS says different: "For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale." This statement is from the IRS bulletin for Qualified Advanced Lean-Burn Technology Vehicles that identifies the X5 diesel as being eligible for the tax credit. Fueleconomy.gov has similar language and refers to the IRS bulletin.

    So if this IRS statement can be taken at face value, BMW is point blank wrong that a taxpayer can't claim the tax credit after leasing a diesel X5. However, BMW will also tell you that claiming the tax credit is up to the tax payer, so they're not stopping you from claiming it.
  • misterepmisterep Member Posts: 52
    What if I Lease a Car That Qualifies for This Credit?

    Lessees are not eligible to claim a tax credit. The leasing party — say, a dealership — can claim the credit. You might be able to finagle an extra discount because of the money they save, but that's up to them.

    Documentation includes a Bill of Sale from the dealership.

    BMWFS uses the tax credit to support their residuals and MF on these vehicles.
  • anon3anon3 Member Posts: 147
    The information in your response contradicts itself.

    You state that BMWFS uses the tax credit to support the residual on a lease. In that case, the value of the tax credit is already built into the price of the lease through higher residual. You will not be able to "finagle an extra discount because of the money they save" as you put it. That money would come from BMW (not the dealer) and they aren't going to give it to you on top of the residual consideration. I tried that when I first started researching this issue.

    You state that "Leasees do NOT qualify", but the IRS says they do. The IRS and the tax code are the authority on this subject, not BMW. The confusion comes from language in the original bulletin for Alternative Motor Vehicle Credit for Hybrid Vehicles stating "If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit." The key word is "may". It doesn't say "only" or "will" or "must" or "exclusively" or "the consumer is not eligible". It only says the leasing company can claim it if they choose to. The rest of the bulletin clearly states that taxpayers/consumers who lease are eligible.

    To avoid a duplicate claim, the question remains whether BMW does claim the credit. Unless you are citing an authoritative source that BMW does claim the credit for a lease, I'm going to follow the IRS bulletin.
  • usctrojan99usctrojan99 Member Posts: 7
    Hi - I was checking to see what the MF was for August 2009 for the X5 35d, 4.8, and 3.0. I am getting conflicting rates from dealers, and wanted to make sure I am getting the correct rate. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi usctrojan99. Here's the information that you're looking for. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2009 X5 3.0 with 15,000 miles per year are .00180 and 55%, respectively. The numbers for an otherwise identical lease of an X5 4.8 are .00155 and 56%. The numbers for an '09 X5 35d are .00250 and 55%.

    You never mentioned how long you want to lease for or what mileage allowance you need, so I had to make some assumptions. Let me know if you want something different.

    When negotiating your lease on the X5, make sure to take the $4,500 cash incentive that is available on the 35d or the $1,750 loyalty cash that is available on the 3.0 and 4.8 into account.

    Car_man
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  • usctrojan99usctrojan99 Member Posts: 7
    Car_man,
    Thanks for the reply. I was looking 36 months/10K miles for the lease. For the diesel, one dealer said .0025 and and another quoted .0021.
  • lmil42lmil42 Member Posts: 1
    You are correct that the tax code is the authority on the subject, but an IRS press release is not if worded in conflict with the tax code. If you read in the regulations and the instructions to form 8910, the IRS clearly states that a lessee is not eligible to claim the credit. Only the purchaser or lessor is eligible for the credit.
  • eonickseonicks Member Posts: 10
    Hi Carman, you've provided some useful information in this post. Can you tell me the MF and residual for a 2009 X5 diesel.....12000 miles per year/ 36 months?

    Also, when calculating the residual amount....its the residual percentage multiplied by the MSRP or the negotiated selling price.

    Thanks

    Eric :)
  • kyfdxkyfdx Moderator Posts: 236,760
    The residual percentage is always multiplied by the MSRP.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem usctrojan99. BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 X5 diesel are .00250 and 58%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks Eric. My partner in crime already told you about how residual values are calculated, so here's the information on the lease program that you wanted.

    BMW Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 X5 diesel with 12,000 miles per year are .00250 and 57%, respectively.

    Don't forget about the dealer cash when negotiating your lease.

    Car_man
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  • elanspelansp Member Posts: 39
    A BMW dealership near me is offering up a 2009 4.8 with an MSRP of around $62k for a lease price of $560 per month for 36 months. They want $3900 cap cost reduction to get to this per month price. Anyone have any idea if this is a good price? I'm trying to figure out the ultimate sales price as it seems as thought here is a $5k spread between invoice and MSRP and I'm wondering if there is dealer wiggle room. They have a handful of 2009's left on the lot....

    Thanks.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi elansp. You really should have the dealer tell you the selling price that they are charging you for this truck. As you know, the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without the selling price, it is difficult to tell how large a dealer discount you are being given, and in turn if there is any room left to negotiate. Let us know what this truck's selling price is and I;m sure that either myself or another knowledgeable community member will gladly tell you what they think.

    Car_man
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  • elanspelansp Member Posts: 39
    Hi CarMan-

    Understood - as it was closing time for the dealership, I asked the salesman and he said he'd get back to me. The ad on the dealer's website doesn't indicate selling price and 10k/year. I noticed that the invoice to MSRP spread is almost $5k. For a 2009, should I be able to get it close to invoice plus any additional cash back to net my monthly payment down?

    Thanks ina advance.
  • jason_jm2005jason_jm2005 Member Posts: 8
    that dealership wouldnt be in southern california would it?

    I would lease that / want to lease that
  • elanspelansp Member Posts: 39
    Nope, not in CA.....I think here in NY/NJ/CT X5s have fallen out of favor - gas guzzlers, economy stinks, etc. I know BMW is kicking back $1750 to lower lease payments but I think for leftover 2009s based on what others have posted, I should be able to get it close to invoice which should yield attractive monthly lease payments given that 2010s are starting to pop up....
  • so190so190 Member Posts: 3
    Dear forum members,

    I'm in the market trying to lease a BMW X5 3.0i. I have just received a quote from one dealer and was just wondering if I could get comments from you.

    10k miles / 36 month
    MF: 0.00235
    Residual: 58%

    The drive off cost is
    Fees & Ins: $758 (the dealer said this is a bank fee)
    Cap Reduction: $4,990
    plus 1st mo. payment
    plus upfront taxes
    minus the customer rebate of $1,750

    There is also a Documentation fee of $55 and flat add/county fee of $26 to the total sales price.

    Am I getting an okay deal or a bad deal? First time leasing a BMW X5 so any comment / help will be appreciated.

    Thank you.

    ;)
  • kyfdxkyfdx Moderator Posts: 236,760
    Payment?

    Selling price?

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  • elanspelansp Member Posts: 39
    Car_man-

    Here are the details as received from dealer on a 2009 x5 4.8i:
    MSRP 61,970
    PRICE : 57,196

    He said BMW money factor - .00155 with 59% residual

    $8,379.56 out of pocket for 1st mo, security, DMV fees, NJ and luxury taxes, etc etc etc. This is for 10k/year 3 year term.

    Anyone - thoughts???
  • elanspelansp Member Posts: 39
    BTW above numbers included the $1750 credit...
  • so190so190 Member Posts: 3
    Kyfdx, thanks for your reply and sorry for my not including the complete info.

    The payment is $577+tax
    MSRP is $65,770
    Demo vehicle with 12,993 miles
    The dealer said they would subtract $0.2 * the current odom of 12,993 from the MSRP to calculate the lease price.

    Purchase option is $34,398..

    Thanks once again.
  • so190so190 Member Posts: 3
    And the selling price is $53,993.. Thanks.
  • jayriderjayrider Member Posts: 3,602
    $560 + $232 = $79x.xx per month zero down. $9500 a year for the priviledge of bimmering. If it's small change re your income -- why not.
  • dpeck1dpeck1 Member Posts: 51
    Have a deal in lease 3.0 Brass Hat purchased at BMW auction. Car has 14,000 miles. dealer claims he bought car for 50,000 and has to buy the additional miles.

    MSRP 57,700
    The worksheet says inital cap cost 51,000
    Total add cap costs 925

    cash cap reduction 2500
    adjusted cap cost - 49,424

    MF is .0018
    resideual is 53.93 % because of miles

    Amount due at start is 4,741 on worksheet. Dealer then applies 1750 and I owe about 3,000 upon signing with a payment of $692 oer month including taxes.
    15K miles per year, 36 months.

    It seems that they are charging me for the miles? Good deal? Please advise if you need more info.

    Thanks
  • jayriderjayrider Member Posts: 3,602
    Don't know about the lease but bmw dealer in springfield, il is advertising new x5's for 49k -- 10k off msrp. Try them for a lease.
  • ccarrillccarrill Member Posts: 6
    How much is your monthly payement? Maybe I missed it.
  • ccarrillccarrill Member Posts: 6
    Hey Car_man,

    Do you know what were the monthly pymts for the X5 tec2 posted. I am interested in picking one up as well. What is the selling price I should be looking for? Thanks.
  • dpeck1dpeck1 Member Posts: 51
    I didn't do the deal. No help from the board or CARMAN. Where are you?

    What are the September MFs and REsids on a 36 mo lease 15k for a 3.0 vs. a 35d?

    Thanks
  • jayriderjayrider Member Posts: 3,602
    Check ridewithg.com for leasing info.
  • thelipthelip Member Posts: 2
    I just checked with the IRS (actually spoke with one of their experts), and he directed me to the instructions for form 8910 which states that in order to claim the $1,800 federal tax credit for a 2009 or 2010 BMW X5 diesel "You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit". There have been several posts here suggesting that the lessee can claim the tax credit for a clean burn diesel. They cannot.
  • jdrothjdroth Member Posts: 1
    Hi. I'm looking to lease a BMW x5 3.0i. I'm located in Los Angeles. What can I expect to pay for a 36 month lease with 0 down?

    Thanks,
    JD
  • jayriderjayrider Member Posts: 3,602
    Depends on the msrp and actual selling price of the truck. The range between a base vehicle and a loaded one is huge. Then you need to figure the depreciation and the money factor. Read earlier posts to get an idea of monthly payments. $800 per month with super credit should be attainable rolling in everything.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey elansp. If I was in the market for a 2009 X5 right now, I personally would shoot for a selling price of around $500 over dealer invoice minus all of the available cash incentives. It is difficult to say whether a dealer in your area will be willing to accept this offer, but that's what I personally would aim for.

    You should be able to get some good feedback on how much you will have to pay for this truck right now by visiting the "BMW X5 Prices Paid and Buying Experience" discussion.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi elansp. The money factor and residual value that you were quoted for this truck are perfect. They're right in line with BMW Financial Services' current program. That's always a good thing.

    Now let's look at this vehicle's selling price. There is probably a gap of a little over $4,800 between this truck's full MSRP and its selling price. Add to this the $1,750 cash incentive that is available on leases of it right now and you have a total of around $6,650 to play with during your negotiations. You were quoted a discount of $4,774. That is probably right around $1,875 over dealer invoice. If I was in the market for this truck, I personally would want a larger dealer discount than that...particularly if I lived in an area that has a high level of competition like you do You may want to try comparison shopping with another dealer or two to see if you can beat this offer.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi ccarrill. If I was in the market for an X5 right now, I personally would shoot for a selling price of around $500 over dealer invoice minus the available $1,750 cash incentive that is currently available on leases of it. It is difficult to say whether you would be able to attain this price in your area, but it's worth a shot.

    Make sure to stop by the "BMW X5 Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar trucks right now before entering into any serious negotiations with dealers.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello jdroth. Jayrider is right. This truck's lease payment will depend upon its MSRP and selling price. If you let us know what these numbers are, I'm sure that either myself or another helpful community member will be happy to work up an approximate lease payment on it for you.

    Car_man
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  • dpeck1dpeck1 Member Posts: 51
    They dont have the current numbers
  • dpeck1dpeck1 Member Posts: 51
    2009 3.0 tech, premium, cold, rear climate, ipod

    MSRP 56250
    selling to me 47500

    lease 15K milles and 36 months

    Cap cost reduction 1750 (from BMW)

    tx 7.375 %

    Car has 9,000 miles and was bought at auction. Car is CPO 6 yr 100,000 miles

    Monthy payment including tax is $678 per month with 2900 out of pocket (ist month, 700 security, 925 bank feek, 499 conveyance/dealer fee, 170 docs)

    IS this correct? IS it good?

    Thanks.
  • barnes88barnes88 Member Posts: 1
    does anyone know bmw lease rates money factor and residual for2010 35d 3yr/12000mi
    thanks
    barnes88
  • thelipthelip Member Posts: 2
    I was seriously considering leasing a 2010 X5 diesel, but now that BMW has signed a contract with Bridgestone to have their run flat Dueler tires (which apparently do not work very well in the wet or any other slippery condition) put on all X vehicles, I think I may have to think of going with a non BMW vehicle. One would think that after all of trouble that owners have had with previous Bridgestone run flats, that the suits at BMW would have gone in another direction. Really stupid to put a tire that is poorly rated for slippery conditions on an all wheel drive vehicle that many people purchase to be able to navigate in less than ideal road conditions.
  • chrisch70chrisch70 Member Posts: 46
    Hi all,

    I am currently in the market to purchase a new 2009BMW X5 and have a question to the current incentives posted on Edmunds for the X53.0 model. It says for the $539 monthly payment among other things, a dealer contribution of $1625 is required.

    In an unrelated article in the autonews, I read that BMW offers I think it was $2000 in dealer incentives.

    Is the dealer contribution a seperate item or is the dealer contribution part of the regular negotiation to reduce the MSRP? Or in other words, the dealer currently offers me a price $750 offer invoice, which seems decent offer, but can I go back and ask for an official dealer contribution or dealer incentive? Don't want to be too greedy, but don't want to left anything on the plate either...

    Maybe somebody can help and point me in the right direction

    Thanks and thanks to all forum participants in general. Obtained very good and valuable info's by reading through the discussions.

    Cheers
  • cdahlcdahl Member Posts: 5
    Working on lease of a X5-35d . Do both $1750 and $4500 (eco) discounts apply?
    Thanks in advance.
  • cdahlcdahl Member Posts: 5
    Was interested in 2010 X5d3.5
    Dealer says $4500 discount applies but wants 0.0028 money factor and 0.55 residual (15k)

    Alternately 2010 X53.0 no $1750 discount (only applies to 2009 model year) but will drop money factor to 0.0019 and increase residual to 0.57 (15k)

    On the X5d3.5 without negotiating MSRP 65075 dealer applied $4500 discount then another $2500 off MSRP to $58075. Lease was $973 including taxes (primarily due to higher money factor).

    Does this sound correct?
  • lulay13lulay13 Member Posts: 1
    MSRP 59,375
    3 yr lease 12,000 miles/yr
    dealer quoted for 1.8 money factor
    I turned in my current lease of 335i which will be up in Dec 2009 with secuity deposit of $650. They charged me $400 for 2 tires and applied $250 to the new lease.
    They claimed appling $1,750 to my down payment. My out of pocket was $3,400.
    My monthly payment is $689 plus tax.

    Is it a good deal? Am I getting 1.8 money factor as they claim because I cannot see it in the contract?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi barnes88. 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 2010 X5 35d with 12,000 miles per year are .00280 and 57%, respectively.

    When negotiating your lease on this truck, make sure to take advantage of the $4,500 cash incentive that is currently available on it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello chrisch70. BMW is currently providing a $1,750 cash incentive on leases of the 2009 X5 3.0. This cash incentive is paid for by BMW. You should be able to negotiate an additional dealer discount with the dealer on top of this cash.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi cdahl. I believe that the X5 diesel is only eligible for the $4,500, not the $1,750.

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