2013 and earlier BMW X5 Lease Questions

drtravel · October 2005

MSRP of $44,470
Cap cost of $41,970 (Full MSRP less $2,500 down)
MF of 0.0010
Residual $26,682 (60%)

Payment comes out to $493.32 + tax

To get their $499 number you have to use a Cap cost of $42,170 which means they are charging you $200 over MSRP!

kyfdx · October 2005

Don't forget the $625 acquisition fee.... that is usually included in the cap cost on BMW's advertised leases...

regards,
kyfdx
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bdr127 · October 2005

And does BMW's advertisements use the MF buy rates? I would think ads from any manufacturer would have some finance profit built in....

kyfdx · October 2005

Just in my personal experience.. the national ads, like the one on the website, use the buy rate..

My local dealer changes the numbers, even when they use a copy of the national ad in the local paper.... with the money factors marked up..

Of course, they don't advertise the money factor in either of the ads, but the ads in the local paper have monthly payments about $20-$30/mo. higher than the example on the website, for the exact same model..

Additionally, most of the BMW national lease ads assume about a $1000 discount from MSRP, taking into account any dealer incentives... That leaves plenty of profit for the dealer at the advertised deal.

regards,
kyfdx
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bmwshopper1 · October 2005

What is a good target price for 2006 3.0 X5, automatic, prem. pkg, and rear climate? If I am a current BMW FS customer, purchased 2 years ago, what money factor should I be getting? I was told by a dealer that it is .0012 and that only current "lease" customers can get the .0010 Is this true? I have good credit. I'm assuming I should get the security deposit waived as well. Lease is 10K/yr and residual 60%. Thanks.

CarMan@Edmunds · October 2005

Hello thetaxman. The 57% residual value that you were quoted for a 36 month, 15,000 miles per year lease of a 2006 BMW X5 is correct. I am not sure how much your state charges for title and plates so I cannot help you out with that aspect of this deal.

Car_man
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CarMan@Edmunds · October 2005

Hello bmwshopper1. I would be happy to give you an idea of how much it should cost to lease the truck that you are interested in. However, in order for me to do so I need you to provide me with its full MSRP (with the destination charge added in). It would be helpful if you were able to provide me with an approximate selling price for this truck as well, but not completely necessary because we can always just assume $500 or $1,000 off of MSRP for the purpose of calculating a lease payment. If you were to lease a 2006 BMW X5 through BMW FS right now for 3 years, its buy rate lease money factor should be .00100 with the payment of a security deposit and BMW FS' acquisition fee.

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schutzhund1 · October 2005

Buyer beware...while using all the intelligence I have gained and can remember from this site, I have tried to talk to BMW dealers. Before I started asking questions and or quoting information about MSRP and Money Factors, actual leases etc, the dealers talked with me freely. Once I started using this information I can't get anyone to talk to me. It is like they were looking for people that had more money than brains........just food for thought is all....I will let you know when and if I buy my X5 4.4i.........

cartalk1 · October 2005

Is there one, consistent place to go (web site) to find "current" lease residuals and MF's. It seems that finding the current rates(from manufacturers and/or their financial subsidiaries) on forums like this is "hit and miss" which is OK, but it would be a lot more expedient if we could go to one place to view the latest rates. Since they are regularly posted on different forums, obviously the secret is out, so what's the big deal to just having them posted somewhere? That would be a significant service to shoppers like myself.

tpjcourtney · October 2005

I had an opposite reaction from my local salesperson. He went through the numbers extensively. He understood where I was coming from but also said that there was no reason for them to use the base numbers or give any more off than their set offer because they were not having trouble selling X5's. He simply said if I could get a better deal locally, I should take it. They basically were giving just enough to meet the advertised lease price on bmwusa.com and nothing more in Sept.

In the end I left and he has not called me back after our last face to face. I think it helped me to be informed, but I do realize that not every dealership is willing to sell at a deep discount. Due to lack of BMW competition in this area and being in a mountain state, I am never going to get the discounts on X5's that some other areas will be able to. However, due to the info I have, I will get the best deal possible here, I hope. My biggest problem is my wife wants a specific color, interior and options, currently there is no match locally. It is very hard to get someone to deal on a car you can't drive off their lot today.

thetaxman · October 2005

Thanks Car_man. With the information on this site, I was able to negotiate what I consider to be a "good deal" with a NJ BMW dealership. They are one of the larger BMW dealers nationwide and typically try to beat the other area dealers on price since they do volume. Nevertheless, they would clearly have "taken me" had I not used the information available here, i.e. money factor, residual and insight into the typical discounts being offered off MSRP. At the end of the day, however, everyone must remember that it comes down to supply and demand - and they're not going to give them away if they don't have to... In that regard, I would bet that prices will continue to edge lower since gas prices don't seem to be headed lower anytime soon and there are signs the economy is cooling.

bmwshopper1 · October 2005

With a full MSRP of $48,470, on a 2006 3.0 X5, including options (automatic, premium pkg, and rear climate) and destination charge included, what would be a good target price? You state that I should be able to get buy rate lease money factor of .00100 if I pay security deposit...can I not get that waived if I'm currently a BMW FS loan customer currently? Thanks for your help!

suv800 · October 2005

Hello, I got a deal for $760.00 a month. and they dont want to go any lower. so I took it, and I will have it in 2 weeks from BMW USA.
Here's the info.
15K per year, 36month lease BMW F/S at 0.0010 mf, msrp at $59895.00
Navigation + Cold Weather Pkg + CD Changer + Premium Pkg + Heated Steering Wheel.
Remember, tax is included. I only pay the first month and MV fee which is only like $125.00
The dealer uses the selling price at $56750.00 to calculate the leasing number.
I dont know if it's a good deal to you, but I think is okay with me.
By the way, I'm in New York City, sales tax is 8.375%.
Good luck,

tpjcourtney · October 2005

That seems like a good deal to me. I come to $780 using your numbers, but I'm not sure how NY does their sales tax on leases. Over $3k off MSRP is more than I was hoping to get, so I guess I'll have to reevaluate. Thanks for the info.

linodis · October 2005

i've been shopping around for an suv and we've, narrowed it down to the an X5 3.0 and ML350... the wife really loved the ML350, she's away on vacation and i'd love to surprise her when she gets back and have the car in the drive way...here are the numbers i've gotten so far on both X5 and ML...

(BMW dealer left out the msrp and selling price of the car )
'06 X5 3.0
$1,700 drive off
$650.00 a month inc tax 36months 12k per year.
options; Navigation, premium package, rear climate package, xenons, cold weather, auto trans

ML350
MSRP. $45K
Neg price $43K

39 months/ 12K
$600 tax included
$1,500 drive off.

what do you guys think ?
thanks in advance

kyfdx · October 2005

Thanks...!!

kyfdx,
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kyfdx · October 2005

If you need money factors or residuals.... Just ask right here..

Car_man has all of the good information!!

limey5 · October 2005

Hey SUV800, that looks like a great deal - I am looking for an identical config and I can't find better than like $880, do you mind sharing the name of the dealer?

limey5 · October 2005

hey car_man - I'm getting quoted 0.0014 mf for an '06 X5 - is the dealer obliged to offer the 0.001 or is it up to them?

Also what do you think I should be looking at getting off MSRP for an 59895 vehicle 36 mths 10k miles.
thanks!

suv800 · October 2005

Here's the info.
Life Quality BMW in Brooklyn, NY 11209. Ask the salesman speaks Chinese.
(I tried to post the website and tel number, this forum wont let me do it.)

15K per year, 36month lease BMW F/S at 0.0010 mf, msrp at $59895.00
Navigation + Cold Weather Pkg + CD Changer + Premium Pkg + Heated Steering Wheel.
Remember, tax is included. I only pay the first month and MV fee which is only like $125.00
The dealer uses the selling price at $56750.00 to calculate the leasing number.
I dont know if it's a good deal to you, but I think is okay with me.
By the way, I'm in New York City, sales tax is 8.375%.
Good luck,

tpjcourtney · October 2005

Here is the deal I asked for. MSRP $50520, Sale price 48520, mf .001, res 57% 15k/yr, lease acq 625, trade-in allowance 500 (2004 MDX-Touring-Nav-Ent, 29500-owe 29000), tax 6.5%, 1st-sec upfront, pmt 670/mo.

Their offer, 48720, mf .001, lease acq 725, trade-in 400, all other the same and came to 702 pmt. It doesn't seem that far off until you put in the numbers and come up with 685 pmt instead of the 702 they quoted, so they were adding approx. 700 of other charges as well. :mad: :confuse:

All this and the MDX retails at over 35k according to NADA. They want 6-8k out of the deal, that just seems absurd to me.

doug_999 · October 2005

Does anyone know if that special money factor applies to the 4.8 as well? If so, what are the residuals like on the 4.8? (36 months).

CarMan@Edmunds · October 2005

You're very welcome thetaxman. Congratulations on your new truck!

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CarMan@Edmunds · October 2005

Hey bmwshopper1. BMW Financial Services probably will waive its security deposit requirement without an increase in money factor for returning lessees. OK, let's say that you were to get a $1,000 discount on a 2006 BMW X5 3.0 that has a full MSRP $48,470. According to my calculations, if you were to lease this truck through BMW FS right now for for 36 months with 10,000 miles per year, its zero down, pre-tax monthly payment should be around $588. If you are able to negotiate a larger discount than this, your truck's lease payment will be lower. You may want to stop by the following discussion to see how much other community members have paid for similar trucks lately: "BMW X5: Prices Paid & Buying Experience".

Car_man
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CarMan@Edmunds · October 2005

Hello limey5. Dealers are not obligated to lease consumers new vehicles using banks' buy rate lease money factors. BMW dealers are notorious for marking-up vehicles' base money factors to add additional back-end profit to deals. Take the fact that you know what this truck's buy rate is to negotiations and see if you can get the dealer that you are working with to use it to calculate your lease payment. If not, you can always shop around to see if you can get a better deal elsewhere.

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CarMan@Edmunds · October 2005

Hi doug_999. BMW is only providing lease support on 2006 X5 3.0 and 4.4 models right now. Unfortunately, that means if you were to lease a 4.8 you would have to use its standard lease program. Its buy rate standard lease money factor is currently .00280. BMW FS' 36 month, 15,000 miles per year residual value for a lease of an '06 X5 4.8 is currently 57%.

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smith18 · October 2005

Can someone tell me if this is in the ballpark or to high.

BMW X5 list price $50,420. Cap cost $49,220 residual 57%. Money factor is .00115 waving the security dep, .00100 if you pay sec.
Payment is 717 including tax with 1558 due at signing. 36 months 15k

Dont you think the cap cost could come down more? Let me know your thought

bdr127 · October 2005

You're getting the base money factor of .001.... really good there.

kyfdx · October 2005

What is included in your "due at signing"?

Is it the payment plus the acquisition fee?

If it is, then getting the base numbers is good, but $1200 isn't a big discount.. I'm not sure what the new X5s are going for... You could ask here:

BMW X5: Prices Paid & Buying Experience

regards,
kyfdx
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rameter · October 2005

Anyone know what the going rates are on remaining 2005 X5's? I'm being quoted .0029 mf and 56% residual.

kyfdx · October 2005

56% is the correct residual for 3yr/36K lease on the 3.0 model..

The base money factor is .0025.. so, they are marking it up..

You do know about the dealer cash incentives, right?

regards,
kyfdx
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flgirl1 · October 2005

hey car man....how did you get that number...i would like to try to get my payments around 575...is this possible?

flgirl1 · October 2005

Hi all, I am new to this buying\leasing a car thing. I went to the BMW dealer here yesterday just to check things out. The salesman was offering me the x5 3.0, msrp around 48,000, basically just the x5 with no prem. pkg, but with a sunroof. The lease was going to be for 36 months, 10 k/yr, 2200 DOD and payments of 618. I dont know anything about these numbers that are discussed on here such as residual and money factor. Can someone help to educate me on how to get a better deal?? Thanks in advance!!

taketheoffer · October 2005

I have to ask where you got that deal $600Mo w/ tax? It sounds very good.

rezultz · October 2005

Hi Car_Man. I see that the money factor for the X5 4.4i is the same for both 24 month and 36 month lease (0.0010). I got an offer to lease the 4.4 with Nav + Cold Weather Pkg + CD Changer + Premium Pkg + Heated Steering Wheel for $750, 12k miles/year, zero down. MSRP of $60k, dealer price of $56, 500.

I'm wondering how much more it would be to assume a 24 month lease instead of the 36. (the new x5 will be coming out and would want the newer body sooner than later) Any ideas how much my lease would be for 24 months? Thanks!

kyfdx · October 2005

The 24 month residual is only 4% higher than the 36 month residual... (61% vs. 57%).. So, even though the money factor is the same, your payment would be nearly 30% higher to lease for just two years..

regards,
kyfdx
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breterst · October 2005

I made a deal to lease an X5 (in NY tax rate 8.625%), I think it is a fair deal. But when I figure out the payment I come out with diffrent payment then the dealer by $7 please take a look here are the details
X5 3.0i 36 months , 10000 miles , 60% res , MF .001
premium,sport,cold,auto,xenon,rear climate
MSRP $ 52670
purchase price $ 49425 (1200 over invoice)
ZERO down, no deposit
Due on signing First month $ 632.44, acq fee $625, acq fee tax $53.91,tire fee $12.50, Inspection fee $10, doc fee $45 total due about $ 1378.85

Here is my issue I come up with a lease payment with tax of $625.80 and the dealer is coming up with a lease payment of $632.44. I have gone over it mant times am I missing something, which # is right please help

Thanks

kyfdx · October 2005

Well.. I can see where you got your number, and it is more or less correct.. I see a couple of things.... but nothing explains it exactly..

1) Unless you are returning BMWFS lessee, you usually get a bump in the money factor by not making a security deposit.. This would raise the factor to .00115... However, that would add about $12/mo. to the payment, not $7/mo.

2) I think they calculate the tax a little differently in NY, than you have.. You've multiplied the payment by the tax rate, then added that on to the monthly payment... In NY, all of the tax is due upfront.. So, they multiply the payment by the term, then multiply by the tax rate, and add it to the CAP Cost.. However, this would only raise the payment by about $2/mo., not $7/mo...

I'm pretty sure the difference is in the amount of tax, and even I may not be calculating it correctly...

Ask your dealer for the CAP cost... and a breakdown of it... How much is selling price, how much is tax... and if there is anything else... I calculated $1788.82 as the sales tax, but maybe there is something I'm missing.. or it is calculated even differently than I've described.. Even with the difference in sales tax calculation, there is about $200 extra in there somewhere...

regards,
kyfdx
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breterst · October 2005

Kyfdx thanks for the help so far. When I asked the manager he said it was the way tax is calculated in NY but he gave me no details. Where can we find out how the tax in NY on a lease is calculated? I figured the same as you that there is an extra $200 somewhere, I looked over the deal sheet and can not find it. I will send you the cap cost info later so you can take another look.

breterst · October 2005

Your right the tax is done diff in NY, so I ran the #'s and came up with a payment of $627.59 with tax but still not $632.44 the dealer is showing. So there is a missing $175 somewhere

breterst · October 2005

kyfdx , still can not figure out how BMW came up with the capped tax amount on my deal sheet. Remember I live in NY (8.625%).
MSRP $52,670
Res Value $ 31,602
36 month lease , mf .001
on the dealer disclosure it shows a capped tax $ 1,957.69
acq fee and all other small fees are being payed upfront and not going into the payments.
I think the tax should be $ 1,788.82
Any ideas

kyfdx · October 2005

1) I know for sure, that I'm positive.... that I don't know how to calculate tax in NY state... lol..

2) If the dealer says that tax is $1957.69, and they are adding that number to the cap cost, then they are probably correct.. we just don't know the calculation..

3) If the tax number is wrong, BMWFS in Dublin, OH will kick back the contract to them, and it will have to be fixed... and you will get to sign a new contract with the correct sales tax numbers..

4) I'd feel really good that I had an explanation that made sense for the extra $5/mo...

You could ask them to show you how they calculate the tax.. unless they just enter it into a computer program...

Worst case... you are out an extra $180 that you shouldn't be... but, I'd bet on their tax numbers, rather than ours...

regards,
kyfdx
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CarMan@Edmunds · October 2005

Hi smith18. The lease money factor that you were quoted for this truck is right in line with BMW Financial Services' base factor for it. This is a good sign because it means that your dealer is being straightforward with you about that aspect of your deal. The dealer is making a decent profit on the sale of this truck though. You are getting around a $1,200 discount on a truck that has over a $3,500 spread between its full MSRP and invoice price. If you are in an area where there is a lot of competition for your business, you may be able to beat this price. Stop by the following discussion to see how much other community members have paid for similar trucks recently: "BMW X5: Prices Paid & Buying Experience".

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CarMan@Edmunds · October 2005

Hey flgirl1. I arrived at the lease payment that I quoted you by assuming a $1,000 discount from the 2006 X5 3.0's full MSRP, which you should be able to beat without too much trouble, and BMW Financial Services' 36 month, 10,000 miles per year buy rate money factor and residual value of .00100 and 60%, respectively.

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CarMan@Edmunds · October 2005

Flgirl1, since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

One of the most important things to remember when negotiating a lease is that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing the car or truck that you want. Negotiate as attractive a selling price as possible on the X5 that you are interested in leasing and then have the dealer that you are working with calculate its lease payment using BMW Financial Services' buy rate lease money factor. If you let me know what this truck's selling price is, I would be happy to calculate a lease payment on it for you using BMW's actual lease program.

Car_man
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CarMan@Edmunds · October 2005

Hi rezultz. A 2 year lease of this model is definitely going to be more expensive than a 3 year lease. New vehicles experience their most rapid depreciation during the first 12 months of ownership. By leasing for 36 months instead of 24 months, you have an additional 12 payments to spread out this initial depreciation hit out over. According to my calculations, if you were to lease a 2006 BMW X5 4.4 with an MSRP of $60,000 and a selling price of $56,500 through BMW Financial Services right now for 24 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $874. An otherwise identical 36 month lease would have a payment of around $678.

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jub · October 2005

sorry - not to answer your questions, but they were running the lease promos a few months back to get rid of the last x5's with the totally redesigned ones coming out next year. granted it's not bad for no money down, but have you seen the 530xi wagon? IMO a better and more current car to get if youre looking for an all wheel drive roomy/family car.... but if you want an suv, (maybe i'm in the wrong forum then...)

carnut12 · October 2005

Hi,

The 2006 X5 4.4 has a .0010 money factor with a residual of 59% (for 36/12K). Do you know will it change in November?

Thanks

chester01 · November 2005

Dealer giving me a 2006 x5 4.4 with everything but DVD entertainment msrp 63280 with 1800 down 36 month lease 740 a month and also taking my 2003 540 w/ sport package with 6 payments left with no penalty. Wondering if anyone could comment?

drtravel · November 2005

Money factor is 0.00100 for 3-year lease with security deposit for the 3.0i and 4.4i.
Money factor is 0.00285 for 3-year lease with security deposit for the 4.8i.

Residuals for all models
10K = 60%
12K = 59%
15K = 57%

Happy renting

2013 and earlier BMW X5 Lease Questions

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