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2013 and earlier BMW X5 Lease Questions

CarMan@Edmunds[email protected] Posts: 38,515
edited January 2014 in BMW
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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Comments

  • Just got back from the dealer. They told me the following info.

    3.0 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.
  • Morning Car Man,

    Looking 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.
  • Here's how I derived the $459 figure:

    MSRP = $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.
  • Don't know what I was on but when I re-looked at the ad I saw the residual you were looking at. My dealer was knocking 3% off the residual.

    I 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.
  • Right you are about the second $2,500 off. I also came up with exactly $459. Too much Mountain Dew but at least together we have the math figured out. The invoice for the 43,670 MSRP is 40,030 less 5,000 equals 35,030 - so the dealer is still making $3,640 on the deal.

    Think 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.
  • Here is the real numbers. I was wrong the 2nd time too.

    They 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.
  • I just wish the manufacturers would actually put this info in their ads instead of just touting the the monthly payment. Everything else that is financed has to state their APR, why not leases?

    Thanks for the numbers. I agree it doesn't make sense to lease this vehicle.
  • Can anyone let me know what a good lease rate on an X5 3.0 with premium/auto for 24months and 15k/y would be?. And is it better to wait till years end? Also I was told last month was a much better deal and they no longer lease 05's. Any help would be appreciated. If anyone knows of any good 24m/15k leases on a nice car if you can let me know.
    Thanks! -Jay
  • Here's a deal advertised in the LA Times (Century West BMW)

    2005 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?
  • It has to be additional cap reduction.

    With 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.
  • kyfdxkyfdx Posts: 130,860
    Try it again using the money factor of .0025

    I think that is the correct money factor...

    regards,
    kyfdx
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  • Yes, the price will come down back to the August price in October for 2006 BWM X5 4.4, And, the prices will be under $600 if tax upfront, 15k per yr.
    The new rate for October is came from internal memo of BMW Usa. Hopefully every one will have what they want.

    :D
  • Hi tpjcourtney. When BMW introduced the dealer cash that is is now providing on the 2005 X5 it cut way back on its lease money factor support. Its September buy rate lease money factor for a 36 month lease of any '05 X5 model through BMW FS should be .00250. Make sure to take the $5,000 dealer cash that BMW is providing on the '05 X5 3.0i and $6,500 that it has on the '05 X5 4.4i this month into account when you are negotiating your vehicle's capitalized cost. If you are good at negotiating you will get a dealer's rock bottom price for the vehicle that you want, regardless of whether you buy one or two at a time. If their selling prices are already as low as they are going to do, there's no reason for a dealer to sell you a vehicle at a loss or at least for less than they could get by selling it to another individual just because you are buying two.

    Car_man
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  • Here's the information that you are looking for, peachtree103. If you were to lease a 2005 BMW X5 3.0 or 4.4 (their lease programs are the same) through BMW Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 59%, respectively. The numbers for an otherwise identical 30 month lease should be .00250 and 55%. Yes, the aforementioned dealer cash can be used to reduce the capitalized costs of vehicles leased through BMW FS.

    Car_man
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  • Hi Jay. We are already at the end of the 2005 model year. You will have to wait until at least October for the 2006 X5 to be as cheap to lease as the 2005 model currently is. Of course, it is difficult to tell what manufacturers will do with their future incentives with 100% accuracy. You should be able to get a good idea of what BMW's current lease program and dealer cash are on the truck that you are interested in by reading my previous two posts. If you provide me with a full MSRP (with the destination charge added in) and selling price for the exact truck that you are interested in, I would be happy to calculate a sample lease payment on it for you.

    Car_man
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  • Thanks Car_Man. I like the new format.
  • MSRP of $43,670 (Invoice is $35,030)
    Cap 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
  • kyfdxkyfdx Posts: 130,860
    Usually, the BMW advertised lease specials assume a $1000 discount from MSRP, in addition to any dealer incentives..

    I haven't reverse-engineered the payment from the ad, but I do notice that the cap cost includes the acquisition fee of $625, so the discount you calculated would be at least $625 more.

    regards,
    kyfdx
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  • You're very welcome peachtree103. I'm glad that you like the new lease questions layout.

    Car_man
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  • Hello Car man, some current info for you quoted to me today on a 2006 3.0 X-5 with options bringing the MSRP to $51,970. Money Factor of .00200, residual of 54% on a 36 month. They wany $4000 upfront (Taxes, title etc...) and the lease still came out to $770 per mo.!! Sounds a bit high to me, but didn't get to run it thru my model yet - any thoughts?
  • I have verbally accepted an offer from Concours BMW, for 3.0 with an MSRP of 49720 for 598 per month with Sec. Dep. 1st Month and title due at signing. Can I push these guys a little more? Essentially it is 5K rebate + 2.5K off sticker.

    Thanks,

    Larry
  • Hi Larry,

    Since 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
  • tekiteki Posts: 5
    Hi:

    I'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
  • bdr127bdr127 Posts: 950
    Please give us some details..... MSRP, options, etc.
  • tekiteki Posts: 5
    oki doki. Here is the info;

    '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
  • Thanks for the response. So I bought the X5 on Friday, and I truly love it. Although the gas mileage isn't as good as the RX330, I think the interior is much nicer, and besides the lease was more attractive. I had to pay an additional $10 month to waive the security deposit (money factor increase to .00265 vs. .00250), since I'm a first time BMW customer, so the final numbers were 608 + tax ($639) and the upfrom on $710 (1st month, title and registration).
  • I can get an '05 BMW X5 4.4 with extras MSRP 59,445 for 50,445. 9,000 bucks off sounds a lot, but the lease deal I have been quoted is $890 a month (this makes it zero down, no trade in so taxes are around $4k). Looking at the posts it seems the discount is good, just wondered if I would be better waiting for Money Factors to drop back down. Does anyone think this will happen?, and am I right thinking that I could pay an extra $5k if the MF was 0.0012 rather than 0.0028. Also what would be a good estimate of what the dealer would take off a $60k '06 if I waited until November? Will the $5k incentive be replaced with something else, or is this simply to get rid of '05s.

    :confuse:
    Thanks for the help.
  • kyfdxkyfdx Posts: 130,860
    The cash incentive is to get rid of the vehicles.. I doubt you'll see the lease numbers get any better, as all of the incentives are in the upfront money..

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

    regards,
    kyfdx
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  • Thanks kyfdx, so are you saying when the incentives disappear you don't think the MF and residuals will be adjusted to make the deal more attractive?

    What 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.
  • Sorry kyfdx - to be clear I am talking about the option of getting an '06 vehicle in November, obviously all the '05s will be gone. What I'm not clear about is whether the incentives will have gone with them!
  • kyfdxkyfdx Posts: 130,860
    I don't think that cash incentive will disappear... If BMW ends the incentive, the dealers will mark any units they have left over as "sold", and collect the incentive..

    Usually, 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 Moderator

  • kyfdxkyfdx Posts: 130,860
    I'm not very good at telling the future... I'm sure as we go from Fall into Winter, lease deals on the '06 X5 will improve... but, how much? No idea...

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Hello thetaxman. You would be much better off going with a 2005 BMW X5 than a 2006 model at this point. BMW is providing absolutely no support on '06 models, but it has $5,000 dealer cash and a better money factor on '05 models right now. If you decide that you still want to go with the 2006 model, make sure that your dealer uses a .00180 money factor to calculate your truck's lease payment instead of the .00200 that you were quoted. Unless you are having your vehicle's security deposit waived, it looks as though the dealer that you are working with is trying to mark-up BMW FS' buy rate money factor for your vehicle to add additional back-end profit to your deal.

    Also, 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.

    Car_man
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  • Hi Larry. You did a good job in finding out about the dealer cash that is currently available on this truck and making sure that it was taken into account on your deal. I don't know the exact dealer invoice price for the truck that you are considering, but if I had to make an educated guess I would say that you are probably paying around $1,000 over invoice after the dealer cash is taken into account. This sounds like a reasonable deal to me, but you may want to stop by the following discussion to compare your price with the prices that other community members have paid for similar trucks recently: "BMW X5: Prices Paid & Buying Experience".

    Let'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.

    Car_man
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  • Hi Jay. I would be happy to calculate a lease payment on the truck that you are interested in for you. According to my calculations, if you were to lease a 2005 BMW X5 3.0 with an MSRP of $50,920 and a selling price of $44,920 through BMW Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $808. BMW FS is not currently offering 39 month leases on this truck, but a 36 month lease would definitely provide you with a more attractive monthly payment. If you were to do an otherwise identical lease for 36 months, your payment would drop to around $665. I think that you still have a little room to negotiate on your truck's selling price. After the $5,000 dealer cash that BMW is currently providing on this model is taken into account, you are only receiving a $1,000 discount on a leftover model that dealers will be likely anxious to sell. If there is a decent level of competition for your business in your area, you should be able to negotiate at least another $1,000 to $2,000 off of this truck's selling price.

    Car_man
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  • Thanks Car_Man. I appreciate your filling me in on the appropriate money factor since I had read elsewhere (probably you...) where it was indicated that BMW dealers would jack up the money factor over what was available to them. Also, re the security deposit, I should be able to get it waived since I previously leased three vehicles with a dealership under the same ownership umbrella. Note the $4,000 also included upfront sales tax and an $800 bank fee. I agree with you and totally understand not to pay any cash upfront and won't - other than title, license and the bank fee if I cannot get them to waive it (any chance on this?).

    Note 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.
  • I need some help desperately. Thanks in advance for reading this. Here is my situation. I am going to buy a 2005 X5 3.0 and received 7k off the msrp. Here are the figures:

    Length 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.
  • I'm sorry for asking this again, but I am in a real bind here. I appreciate all answers. Thanks so much.
  • You're very welcome, thetaxman. If you are a current BMW FS lessee then you should be able to get your truck's security deposit waived. BMW FS charges an acquisition fee on every vehicle that it leases and individual dealers do not have the authority to waive it.

    Car_man
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  • Hello maximus330i. The lease money factor that you are being charged on this truck is too high. BMW Financial Services' buy rate lease money factor for a lease of a 2005 BMW X5 is currently only .00250. Even if you were to have your truck's security deposit waived, it would only increase the factor to .00265. It appears as though the dealer that you are working with is marking-up BMW FS' buy rate to add additional back-end profit to your deal. This sort of thing is perfectly legal and happens all the time with BMW dealers, but can usually be avoided if you know what the base factor is.

    If 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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  • Thanks Car_Man. I ended up purchasing the X5 with a 5.48% apr through USAA. The lease was a bit high and I wouldn't save a lot of money over 3 years versus buying it. I appreciate the response.
  • suv800suv800 Posts: 41
    Okay,

    The 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.
  • What are the numbers you are using for that $760 pmt, with $0 down and 15k?

    Looking 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
  • suv800suv800 Posts: 41
    2006 X5 4.4, msrp $59895.00
    The 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.
  • Do you know what money factor and residual were used? Are you getting the car at full MSRP or is there a discount by the dealer? What are your taxes in NY?
  • needneed Posts: 1
    Today I was quoted 0.0015 money factor for 2006 X5 lease as a new BMW customer. I was looking for a 3.0i with options about $49920 MSRP, dealer offers 47110. 2500 down, 500 security deposit, 36 months, 12000/yr (60% residual), payment ends up around $577 + tax around $624. It was a little higher than what I wanted. I think I would have gotten a better deal last month with the $5000 cash on the 2005.
  • suv800suv800 Posts: 41
    The BMW Dealer in Bayside uses full msrp plus all the options to calculate the price. I didn't ask what the m/f they use. My target price was $700.00 per month, tax included. They quoted me $760.00, that's the lowerest price he (regular sales rep) said.
    I 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.
  • You're very welcome maximus330i. Thanks for taking the time to stop back and let us all know how everything turned out. USAA is a great bank and the X5 is a great truck. Enjoy!

    Car_man
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  • Hi tpjcourtney. As the others have already said, BMW introduced lease support on the 2006 X5 for the first time this month. BMW Financial Services' current buy rate lease money factor for a lease of an '06 X5 3.0 or 4.4 should currently be .00100 with the payment of a security deposit. Anyone who is being charged a higher factor than that should try to renegotiate with their current dealer or shop around. I would not be surprised if you were able to negotiate a lower selling price than full MSRP either, especially in an area like New York where BMW has tons of dealers competing for your business. For additional feedback on how much X5s are selling for now, make sure to stop by the following discussion: "BMW X5: Prices Paid & Buying Experience".

    Car_man
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  • Hello Car_man. I can confirm the .00100 money factor for the October program on the 2006 X-5 (not that you needed me to...), but I am trying to determine the appropriate residual for a 15K lease. They cited me 57%, but I have seen 62% for 10k and 60% for 12k - so by extrapolation I surmise 57% is correct. Of more concern - why are they trying to charge me $250 for the title and $149 more for the plates? Shouldn't this be more like $110 in total? I am not trusting them here...
    In 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...
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