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2013 and earlier BMW X5 Lease Questions
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Car_man
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BMW is scheduled to announce its May sales results today. Even though its current lease program is not scheduled to end until the end of June it sometimes introduces program enhancements to dealers when it discusses the prior month's sales with them. Please feel free to check back with me in a day or two and I'll gladly let you know if anything has changed.
I see that you are considering making a huge $10,000 down payment on your lease. I always advise consumers against making large down payments on leased vehicles. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered. It is much safer to go with a zero down lease.
If you have money burning a hole in your pocket and you really want to lower your X5's monthly payment, you should consider using the cash to make multiple security deposits. BMW provides a .00007 money factor reduction for every extra deposit that lessees make.
Car_man
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Any new info on the June lease rates or enhancements,specifically for premium X5 35i, 36 months and 12k/15k miles per year? TIA
Very good reduction from the previous 4.9% they were offering on 2011 x5's.
2011 X5 35d ($51,300)
Black Sapphire Metallic
Black Nappa Leather ($1,450)
Dark Bamboo Wood trim
Sport Activity Package ($2,200)
Sat Radio ($300)
Dest and Handling ($875)
= $56,175 (- eco credit $4500) = MSRP $51,675
36 months/12k miles a year
$650 a month without tax
$650 (first month)+$725 (bank Fee) + $150 (registration)= $1525 total
out of pocket
I am not aware of any recent changes to this system.
Car_man
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The residual value for a lease with only 12,000 miles per year would be 2% higher.
Car_man
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Let us know what this truck's selling price is and I'm sure that either myself or another knowledgeable community member will gladly share their opinion on this deal with you.
Car_man
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thanks in advance
I am not intimately familiar with what the market is like for this truck in your area, but that's a lot of room to play with. It probably wouldn't hurt to do a little comparison shopping to see if you can find a dealer that's willing to shave another grand or so off of this truck's price.
Car_man
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Residual is 62% and money rate is .00230. Residual on 15k per year is 60%.
Had 2 dealers in NJ that offered the same deal, just came down to color.
The other color, Silver Metalic, was in stock at another dealer.
We are interested primarily in a diesel but if you could provide us with the June money factor and residual on the X5 models for a 24 month 15 K mile lease it would be much appreciated.
Thanks!
The numbers for an otherwise identical lease of a 2011 X5 35i are .00230 and 62%. The residual value increases to 66% for the Premium and 67% for the Sports Activity.
The numbers for the '11 X5 50i are .00230 and 67%.
Car_man
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Do folks here get leases at the advertised price or these are just eye candy?
Thanks!
Thanks
MSRP 59450
Payment: 740 /month for 2011 X5 3.5 Premium for 36/12k with Rear Ent, Nav, Assist (required with Nav), 3d row, convenience.
This is with tax, just 740 TOTAL upfront, uses 1500 BMW X3 incentive(I returned my X3 lease) and 1000 Ultimate driving event incentive.
Bank fee, registration and 349.00 Doc fee are included in monthly payment.
1. Purchase a new 2010 X5M for $80,000 (99 miles sticker price of $97k)
2. Purchase a new 2011 X5 5.0 with Sport and Premium packages; or
3. Purchase a new 2011 X5 3.5 Turbo.
I drove the 5.0 and it seemed very nice. I will drive both the X5M and the 3.5 today.
From a value standpoint, which do you recommend?
I am expecting an offer later today. What should I expect to pay for a lease (money factor) and what will the residual percentage be?
Thanks, Curtis
Thanks
Thanks!
Yesterday BMW announced that BMW FS is introducing a tiered system for its lease program. Its rates now vary by credit tier, with the people who have the best credit scores getting slightly better rates than what was available last month and much higher money factors for people with low credit scores.
I should be able to get the full details of this new program some time today. Please feel free to post your questions about it here and I'll gladly fill you in on what I am able to find out.
Car_man
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Thanks.
Car_man
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BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 X5d with 15,000 miles per year are .00210 and 56%, respectively.
The residual value for a lease with only 12,000 miles per year is 2% higher. The 10k resid is 3% higher.
Car_man
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Do you have the current lease rates (July). Looking for the 10k and 12k for 36 months for the X5 35i Premium?
Thanks.
Any chance you could also provide the residual for a 24 month lease for 15,000 miles per year for a 2011 X5d?
Thanks.
The residual value for a lease with only 10,000 mies per year is 1% higher.
Car_man
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Car_man
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I am confused on the lease payment calculations.
I am using the advertised BMW leasing price and trying to reverse engineer it.
http://www.bmwusa.com/Standard/Content/FinancialServices/LeaseOfferDetail.aspx?e- nc=gxNfrckxtzfGpEIyRuxhfQ==
I am trying to calculate the Money Factor from the published BMW Lease rates and the numbers do not match.
Can you tell me what I am doing wrong here ?
I am using one of your old post here to calculate the Monthly payment
http://townhall-talk.edmunds.com/direct/view/.ef01891/0
Selling Price 52100
Down Payment 4000
Cap Cost 48100
Residual 32823
Depreciation = Cap Cost - Residual = 48100 - 32823 = 15277
Monthly Depreciation = 15277 / 36 = 424.3611
Interest Charges = Cap Cost + Residual = 48100 + 32823 = 80923 * Money Factor = 80923 * 0.0020 = 161.846
However, the interest charge from the advertised price = Monthly Payment - Monthly Depreciation = 539 - 424.36 = 114.64
Can you tell me what is wrong in my calculations ?
Thanks
http://www.edmunds.com/calculators/auto_lease_calculator_index.html
I entered the following values (exactly) in the calculator as per BMW website offer as given below:
Vehicle Sales Price: 52,100
Cash Down Payment: 4,000
Lease Residual Value: 32,823
Lease Term (months): 36
Miles Driven per Year: 10,000
Acquisition Fee (estimated): 725
Money Factor: 0.0021 My Monthly Payment (tax included): $615.96
Note: I calculated the payment without tax for exact comparison with advertised price.
My local dealer told me that in order to decrease the payment by $30, you have to reduce the MSRP by $1000.
I am currently finding an offset of $615.96 (Edmunds Calculator) - $539(bmwusa.com Offer) = 76.96
This tells me that there was a discount of about $2500 possibly added by BMW.
Is that true or I am missing something here ?
Thanks for your suggestions and help in calculations.
Although I'm obviously not car_man, please allow me to contribute my 2 cents for whatever it's worth. Unfortunately, there is no way to determine the money factor given the information in the promo ad that you referenced. The reason is twofold...
(1) the money factor isn't disclosed which is not unusual and,
(2) the net (adjusted) capitalized cost is not dislosed
This presents a problem because you have one equation with two unknowns...
P = F x (C + R) + (C - R) / N
P = payment
F = money factor
C = net (adjusted) cap cost
R = residual value
N = term
Given your data, you're trying to force the $539 payment to "fit" your $48,100 cap cost which, apparently, is not the cap cost used in the ad assuming that your 0.00200 money factor is correct.
Given the info you provided, your base payment is...
P = 0.00200 x (48,100 + 32,823) + (48,100 - 32,823) / 36
= 586.21
Solving the above formula for F, we get...
F = [P - (C - R)/N]/(C + R)
Now, we can test the likelihood that the promo ad uses an adjusted cap is 48,100 by finding the money factor. Substituting the variables with their assigned values, we get...
F = [539 - (48,100 - 32,823)/36] / (48,100 + 32,823)
= 0.00141664
Because the digits beyond the 5th to the right of the decimal point are non-zero, it's highly unlikely that 48,100 is the net cap used in the promo ad. Furthermore, you used the MSRP of 52,100 as the sell price. Usually, promo ads discount the MSRP. And so, it's extremely unlikely that a promo ad used the MSRP as the sell price for competitive reasons.
Now, let's examine the money factor. IF the money factor is, indeed, 0.00200, then we can solve for the net cap, used in the ad, using the following formula...
C = [PN +R(1 - FN)] / (1 + FN)
C = [539(36) + 32,823(1 - 0.00200(36)] / (1 + 0.00200(36))
= 46,514.69
And, because the ad assumes a down payment (i.e., cap reduction) of 4,000, the gross cap is 50,514.69. Moreover, the ad assumes that the 1st payment, sec deposit, and acq fee are paid at lease signing. This suggests that there are no items being capitalized (i.e., financed) in the lease. And so, the sell price equates to the gross cap of 50,514.69 reflecting a discount of 1,585.31 off the 52,100 MSRP. Again, we're assuming that the 0.00200 money factor is the one used in the ad to compute the 539 payment.
Hope this helps.
John
It seems that you're doing a lot of guessing. Let me share with you, for whatever it's worth, what I do when leasing...
1st. I do research regarding residual factors, money factor (I always use the buy rate), learn applicable incentives, examine promo ads, and establish a competitive selling price using edmunds, KBB (Kelly Blue Book), and overstock at zag.com.
2nd. I create a one-page lease proposal with all pertinent data including a description of the vehicle, MSRP, sell price, amounts capitalized (e.g., taxes, acq. fee, etc), cap reductions (e.g., trade, cash down, etc), money factor, residual factor, residual value, term, taxable payment, lease payment, amounts due up front (itemized), contract provisions (gap insurance, excess mileage charge, applicable disposition/purchase option fees). All dollar amounts are calculate, not by the dealer, but by me using a program that I created.
3rd. I Fax/email the proposal to the dealer and negotiate via phone/email from the comfort of my home/office with my laptop excel spreadsheet (actually Mathematica) lease program fired up and ready to rumble! The only thing I'm likely to negotiate is the sell price and that only requires a few keystrokes on my laptop. And, bing-bang- boom I'm done!
The key is that you must control the deal. Never allow a dealer to control the deal by allowing them to "run the numbers". Trying to figure out the dealer's numbers is often a pointless exercise and, frankly, a waste of time unless, of course, you have a copy of their LEASE WORKSHEET. This is a computer generated document that eliminates confusion and guess work and will tell you everything you need to know and then some. The beauty of this document is that it always tells the truth. Allowing the dealer to control will only end up costing you more money in most instances.
A one-page lease proposal speaks volumes about you... it sends the message that you know and understand leasing. That quickly serves notice to the dealer, and so; they're not as inclined to play games. This suggests that the biggest advantage of a lease proposal is that it saves time, money, and aggravation.
However, if you agree to allow the dealer to "run the numbers", ALWAYS ask them for their LEASE WORKSHEET. If they refuse to give you a copy, RUN; DON'T WALK!
You stated the following...
"My local dealer told me that in order to decrease the payment by $30, you have to reduce the MSRP by $1000."
Nothing couldn't be further from the truth unless the MSRP is the sell price. This vehicle does not command an MSRP selling price in this market. The selling price is determined independently of the MSRP and is dependent primarily on local demand/supply in your area. The only thing the MSRP impacts is the residual value. Lowering the MSRP, lowers the residual value which, in turn, increases the payment.
Residual Value = Residual Factor x MSRP. In your posted BMW lease promo ad, the residual factor is 63%.
John
I am in process of creating this spreadsheet as per your suggestion.
I went to two dealership in my areas so far and they scared me with the deals they quoted.
One dealer told me that he is ready to give the 2011 X5 35i Premium with the few options (Technology, Convenience, 3rd Row, Cold Weather) at Invoice price if I complete the deal at the same instant.
Another dealer told me that he would give me the vehicle at $300 over invoice.
Now, I didn't had all the calculations and spreadsheet in front of me to even argue or quote my number or negotiate. It was very evident that I wasn't prepared at that time but I do want to do a good homework this time before I approach them again.
I want to start the negotiation with my numbers and quote rather than the dealer prices.
I will share my numbers shortly for your confirmation that I am on right track.
Thanks again so much.