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Prices Paid: Buying & Leasing Experiences BMW X5 Lease Questions
1108 messages, Last post on Nov 22, 2009 at 6:35 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: yz1281 (Jul 02, 2009 3:39 pm) Dealers do not usually tack on an explicit charge for swapping for a vehicle, but don't expect to get the best possible deal on one that the dealer has to go out and get. Dealers would much rather sell you something that they have in stock. Unfortunately, lessees do not get any credit for unused mileage. Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: rahulskh (Jul 05, 2009 8:01 am) Dealers are often allowed to mark vehicles' money factors up, and BMW dealers are notorious for doing so. Savvy customers who are in an area that has a decent level of competition can usually convince dealers to use the buy rate to calculate their monthly payment. Typically 36 month leases provide much lower monthly payments than 24 month leases. This is because new vehicles experience their most rapid depreciation hit during the first year of ownership. Thirty-six month leases have an extra twelve payments to spread out this large initial depreciation hit out over. I don't know exactly when the 2010 X5 is scheduled to arrive at dealers. When the 2010s do begin to arrive, I suspect that you will be able to negotiate a selling price that's fairly close to dealer invoice, perhaps a couple hundred dollars over, minus any available cash incentives on a leftover '09 model. Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: yz1281 (Jul 02, 2009 3:39 pm) So what is a good negotiated sales price on an x5 that has a Msrp of approx, 58K ?
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Just started lease search for x5 diesel. first try: Premium Pkg., Cold Weather Pkg., Rear Climate Pkg. & Ipod Adapter.36 Months, 12,000 miles. $0 down as cap cost. The payment is $729.99 including tax with $2799.00 due at inception this includes the First Month, Motor Vehicle Charges, The Bank Acquisition fee,.dealer conveyance & $799 Security Deposit. what i can figure is MSRP is $57975 and Invoice is $53,350. This initial quote is pretty awful i think. any comments? ps. sales tax here is ~6% Thanks |
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Carman: I have been holding off ordering an X5 for lease. The MF is .0018, (4.32%). Do you think BMW will lower that rate come August? Thanks. DP
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Replying to: yz1281 (Jul 06, 2009 3:07 am) Make sure to stop by the "BMW X5 Prices Paid and Buying Experience" discussion for additional feedback on how much you should pay for this truck right now. Car_man Host Prices Paid: Buying & Leasing Experiences Forum
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Replying to: dpeck1 (Jul 13, 2009 9:16 am) Apparently, the recession caused Honda to slow its production dramatically. As a result, its inventory situation is low enough that it didn't feel the need to provide support on trucks right now. If I had to make an educated guess, I would say that BMW's August lease program will be at least as good as its current one...but in this environment it is difficult to say what will happen for certain. Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: Car_man (Jul 15, 2009 2:45 am) BMW will tell you that leased X5 diesels are NOT eligible for the $1,800 tax credit. I asked my sales person to research this with BMW North America and they provided paperwork that confirms BMW's statement. BMW's web site also says that a leased X5 3.5d is not eligible for the tax credit. However, the IRS says different: "For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale." This statement is from the IRS bulletin for Qualified Advanced Lean-Burn Technology Vehicles that identifies the X5 diesel as being eligible for the tax credit. Fueleconomy.gov has similar language and refers to the IRS bulletin. So if this IRS statement can be taken at face value, BMW is point blank wrong that a taxpayer can't claim the tax credit after leasing a diesel X5. However, BMW will also tell you that claiming the tax credit is up to the tax payer, so they're not stopping you from claiming it.
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Replying to: anon3 (Jul 31, 2009 9:17 am) Lessees are not eligible to claim a tax credit. The leasing party — say, a dealership — can claim the credit. You might be able to finagle an extra discount because of the money they save, but that's up to them. Documentation includes a Bill of Sale from the dealership. BMWFS uses the tax credit to support their residuals and MF on these vehicles.
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Replying to: misterep (Jul 31, 2009 11:20 am) You state that BMWFS uses the tax credit to support the residual on a lease. In that case, the value of the tax credit is already built into the price of the lease through higher residual. You will not be able to "finagle an extra discount because of the money they save" as you put it. That money would come from BMW (not the dealer) and they aren't going to give it to you on top of the residual consideration. I tried that when I first started researching this issue. You state that "Leasees do NOT qualify", but the IRS says they do. The IRS and the tax code are the authority on this subject, not BMW. The confusion comes from language in the original bulletin for Alternative Motor Vehicle Credit for Hybrid Vehicles stating "If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit." The key word is "may". It doesn't say "only" or "will" or "must" or "exclusively" or "the consumer is not eligible". It only says the leasing company can claim it if they choose to. The rest of the bulletin clearly states that taxpayers/consumers who lease are eligible. To avoid a duplicate claim, the question remains whether BMW does claim the credit. Unless you are citing an authoritative source that BMW does claim the credit for a lease, I'm going to follow the IRS bulletin.
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