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2013 and earlier BMW X5 Lease Questions
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Comments
MSRP $71,000
Discount $70,000
Down $5,000
36 months 12k/year
61% residual
$962/mo
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
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.
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
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?
Thanks
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!
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.
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
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.
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!
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....
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.
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.
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!
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.
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?
PLEASE ADVISE..
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.
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
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 payment..security deposit waived as I am a returning BMWFS customer...
Is this a good deal??
PLease help
Thank you
I cant see them not offering more incentives. You may just need to wait.
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.
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.
Where did you see this deal?? It looks like a GREAT deal... Could you pls give more details..
Thanks!!
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.
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.
John Ciocca
John Ciocca
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
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,
Allison
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.
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.
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.
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.