Last post on Dec 08, 2013 at 2:50 PM
You are in the Prices Paid - Buying & Leasing Experiences
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BMW X5, SUV
#2445 of 2559 Over Invoice Pricing 2013 BMW X5
May 28, 2013 (11:49 am)
Hi, I am in Maryland and am negotiating the purchase of a 2013 BMW X5, premium with the Cold Weather and Convenience package. The MSRP is $61,370.00. Based on this forum, I have made a few offers, the closest I have come to even having the dealer begin negotiations is with the KBB fair purchase price of $57,534 plus tax. Yet this is $1,000 over invoice. Is the "West Coast" average of $500 over invoice different then the East Coast average, or is it just a matter of tenacity? Inventory is very high. Thanks!
#2446 of 2559 Re: Over Invoice Pricing 2013 BMW X5 [tresmac1]
May 31, 2013 (9:59 am)
I don't know about the West Coast, but on the East Coast the tri-state area of NY-NJ-CT (or NY-NJ-PA) is very competitive. While I've personally been looking at CPO X5's, I would hazard a guess that invoice should be achievable on a car that is just on the cusp of being replaced by the all-new 2014 X5 in August.
Even if you can't wait til 2014s are flooding the lots, if you can wait til 6/30 you can benefit from in 3 possible ways:
1. Presumably more pressure to sell 2013s
2. Month and quarter-end (incentive to meet volume targets)
3. BMW Ultimate Drive event in June (upon which you can get a $1,000 voucher for the purchase/lease of any new 2013 BMW, with a couple exceptions).
#2447 of 2559 Re: Feedback on offer [mrygal]
Jun 05, 2013 (7:47 am)
Dealer lose money? An insider at my dealership informed me that they pay zero money for their cars, so what is there to lose? Their BMWs remain the property of BMW, it never becomes that of the dealer. You pay BMW Financial for the car, and they own it throughout the process
#2448 of 2559 Is this a good deal? Lease or Purchase?
Jun 11, 2013 (1:13 pm)
I am looking at leasing (or purchasing) an X5 3.5i SAV with Convenience pkg, luxury seating pkg, premium sound pkg, cold weather pkg, bmw apps, and lane departure warning.
15K miles 39 months
Dealer Discount -3991
Ultimate Drive -1000
Capitalized cost 62129
Residual prectange 54%
Money Factor .00167 (I asked about this being higher and the dealer told me they make the best deals because of the money they take off up front and this being set at .00167 instead of .00127 allows them to recoup on the back end) Can someone put this in layman's terms for me?
Acquisition Fee 725 (dealer said this gets rolled into the lease charge so not due up front)
Disposition Fee 350
Documentation fee 325
Taxes 300 flat fee for SC
So my total due at signing would be 1151.54 and payments would be 847.54 for the lease
Am I just better off purchasing? Based on what he said about the money factor and the acquisition fee should I be concerned?
#2449 of 2559 Re: Is this a good deal? Lease or Purchase? [gurlzlkcars2]
Jun 11, 2013 (1:47 pm)
If you had the option shop another dealer. This guy is giving you the run around. There are some junk fees, discount is not that great and not offering you the buy rate money factor. If you can hold out longer, there will better leave rates, since the all new 2014 X5 will be out in August. I hear dealers have large inventories of X5's on their lots now, which is good for buyers that can hold off a bit on their purchase.
#2450 of 2559 Re: Is this a good deal? Lease or Purchase? [gurlzlkcars2]
by kyfdx@Edmunds HOST
Jun 11, 2013 (3:02 pm)
I don't really see that selling price as so outstanding that they have to make it up on the other end...
But, in real terms, the .0004 bump in the MF adds $39.35/mo. to your lease price... That's $1535 more over the life of the lease..
Also, if they are rolling the $725 into the lease, then that is going to change the CAP cost.... I only mention this, because they might mark up that fee as well.... and, if they don't disclose the actual CAP cost, you might not know it..
I usually won't buy with a marked-up money factor..
#2451 of 2559 Re: Is this a good deal? Lease or Purchase? [gurlzlkcars2]
Jun 11, 2013 (4:45 pm)
>>00167 (I asked about this being higher and the dealer told me they make the best deals because of the money they take off up front and this being set at .00167 instead of .00127 allows them to recoup on the back end) Can someone put this in layman's terms for me?
"we're screwing you."
They are marking up the money factor 31%.
#2452 of 2559 Re: Is this a good deal? Lease or Purchase? [kyfdx]
Jun 12, 2013 (4:24 pm)
Thanks kyfdx. I priced the car using the Edmund's True Market Value pricing tool. The MSRP was 67150, the invoice was 61770, and the true market value was 63800. If I can get them to use the .00127 MF and the 57% residual, does it seem like a better deal?
#2453 of 2559 Re: Is this a good deal? Lease or Purchase? [gurlzlkcars2]
by kyfdx@Edmunds HOST
Jun 12, 2013 (4:56 pm)
The base rate on the MF will obviously be a better deal than the marked up one.. but, residuals are fixed.. You can't negotiate that..
#2454 of 2559 Re: Is this a good deal? Lease or Purchase? [ponytrekker]
Jun 13, 2013 (2:43 am)
lol, thanks ponytrekker. the more I learn about leasing, that seems to be exactly what's going on.