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BMW X5, Car Leasing, SUV
#1756 of 2262 BMW X5 2012 Diesel lease question
Dec 09, 2011 (7:09 pm)
I hope someone can help. We are new to leasing in the US. Trying to work out whether this is a good deal or what we should be looking out for? What deals other are getting with similar config.
All advise greatly appreciated. BTW we are in LA.
We are looking at
2012 BMW X5 Diesel
Ext: Alpine white
Int: Black Nevada lether
Dart Bamboo trim
Sport Activity Package
Total as built: $64,775
Selling Price : $58,915
10,000 miles per/year
Money factor 1.95 (what is the APR?)
Residual Factor 54%
Residual value $34,978.50
Total depreciation $18,708.74
Capital reduction $5,227.76 (what is this?)
Monthly Depreciation $516.69
Monthly rent $172.90
Month payment $692.59 + 8.75 tax = $753.19
Drive off $8,000 less rebate $1,000
Total due at signing $7,000
Thank you in advance !
#1757 of 2262 Re: BMW X5 2012 Diesel lease question [oznew2usa]
Dec 09, 2011 (10:44 pm)
This NOT a good deal.
YOu should be getting a better price because there are promotions.
You should not do any cap reduction -- that is your putting money into the deal.
What dealership are you with.
I was offered a much better deal.
#1758 of 2262 Re: BMW X5 2012 Diesel lease question [asteinberg]
Dec 10, 2011 (11:04 am)
Hey thanks for the reply
We re using a broker but I believe it is thru Center BMW, LA - what was you deal and where was it from. What sort of many factor or APR should we be looking at we have an excellent credit score.
#1759 of 2262 Purchase on Thursday
Dec 10, 2011 (1:25 pm)
My lease was ending on my 535i in Feb. and salesman said he could get me out early. My payoff was 36k and BMW lowered it to 29k and the dealer purchased it for that price. I didn't know that could happen. Anyway, with my credit score dealership gave me a .00090 MF. with 56% residual on 36 month 12k a year lease.
#1760 of 2262 Re: BMW X5 2012 Diesel lease question [oznew2usa]
Dec 10, 2011 (3:27 pm)
CenterBMW is a solid dealership.
But when I was looking at deals, the ywre far better.
Make sure you get the net money factor that is on this website, with no markup.
Make sure your price is invoice MINUS any BMW promotions. For example, if BMW has a $2500 promotion, then deduct that from invoice.
After that is all done, then ask to re-do the deal with maximum refundable security deposits to produce a lower money factor and lower monthly payment. Let me know what happens.
If you're still not there, I can tell you that there is a salesman at Bob Smith wh will give a good deal. I don't know if I'm allowed to mention salesmen on this site.
Also, there is a guy at Center I can recommend, but I don't know if I can menttion ames on this site.
#1761 of 2262 Re: BMW X5 2012 Diesel lease question [oznew2usa]
Dec 10, 2011 (8:51 pm)
$7k cash down payment on a lease is excessive. Each $1,000 of cash down payment typically reduces your payment by about $30/month. This deal requires you to put $7,000 down, reducing your payment by about $210/month. But, for a lease, you will want to put as little money down as possible. If the vehicle is in an accident and totaled, the gap insurance will only pay the minimum contract balance needed to close your contract. The more money you put down, the less money the insurance company pays and you get nothing back.
Three different incentives/rebates are currently available on the diesel X5: $2,500 eco credit, $1,000 "ghost protocol" rebate for the X5, and $1,000 (or an interest rate discount) for returning BMW owners. (I assume you're not a member of the BMW Car Club, but if you were, you'd also get an additional $1,000 rebate check in the mail.)
A better way to evaluate this deal and negotiate a lease is to arrive at the actual purchase price (same as you would if you were paying cash) and THEN negotiate the lease terms.
In my experience buying/leasing BMWs, you typically should expect to pay NO MORE than $1,000 ($1,500 in some regions) above dealer invoice on a vehicle like the X5 using a broker (like Costco, USAA, etc.) Some dealers will sell for closer to invoice if you compete them against each other or the car has been on the lot for a while. (They won't deal on a new/hot/limited availability model, but the X5 is not new/hot/limited.)
Dealer invoice + $1,000 profit - $2,500 (eco credit) - $1,000 (ghost protocol rebate) - $1,000 (owner loyalty if you're eligible) = gross capitalized cost. Then add tax, tags, acquisition fee, processing fee, etc. to arrive at your cost of the vehicle.
Your deal does not look good. The invoice on that vehicle is around $59,500 (ask your dealer/broker to show you the actual invoice.) That means your price before tax/tags/title/etc should be around $57,000. (You should get the invoice and do the math). Then add local tax, tags, title, etc to get your purchase price.
You stated the money factor is"1.95". That probably means .00195, which is the typical way of showing it. The equivalent interest rate is .00195 x 2400 = 4.68%.
The other question to ask your dealer is how much they marked up your lease money factor. Dealers will add as much as 50 basis points to the "interest rate" of your lease to pad their profits. Sometimes they'll sell closer to invoice and then pad the money factor. If they marked up your money factor, ask them to split the mark up with you.
If you're paying a security deposit and have good credit, they often will waive the security deposit. But, be careful. Sometimes they'll increase your money factor if they waive the security deposit. Don't let them do that.
Next, think about which X5 model you want. If your heart is set on a diesel, go for it. I've had 2 X5 diesels and was very happy with them. But pay attention to the residuals across the different X5 models. November/December residuals for 2012 X5 diesels are VERY low. Your residual of 53% is correct for that lease term. But the residuals for the 3.5i and 5.0i are much higher. For comparison purposes, the residual for a 5.0 using the same lease terms is 62%. That means you are paying 9% (about $5,400) more depreciation out of pocket for the diesel. The $2,500 eco credit doesn't begin to offset that lousy residual. And it would take you a very long time to recoup that $5,400 from the diesel's higher mpg. In fact, you can never recoup that extra depreciation cost from fuel savings in 36 months 10k/miles/year.
For comparison purposes, I just leased (yesterday) an X5 5.0 with a $74k sticker for 36 months and 10k miles/year with ZERO money out of pocket for $960/month. That's about the same that your deal would cost if you put no money down. But I leased a vehicle that was $10k more expensive than your diesel. I don't think you're getting a very good deal.
I hope this helps.
#1762 of 2262 Re: TIRE change before lease expires?? [x5fan10]
Dec 10, 2011 (9:02 pm)
I'm not Carman, but I did stay at a Holiday Inn last week and I have experience with this question. You do NOT have to replace the tires on your vehicle before lease turn in if the tires meet the minimum tread depth in your lease turn in guide or the inspection form. It's very explicit:
minimum 4/32" (1/8") tread depth measured from thinnest tread not on the wear bar. Tires must also be free of additional damage such as but not limited to cuts, bulges or severe curb rash. (Including spare if applicable.) Tires must be run-flat if that's what shipped on the car when it was new.
The charge is $300 per tire that does not meet this standard.
#1764 of 2262 BMW X5 lease...too late to turn back now
Dec 13, 2011 (9:59 am)
Hi, just took delivery on a new 2012 BMW X5 diesel. Alpine white with sand beige leather with premium pkg w/ navigation. MSRP 61075.00. Invoice 56,425.00 Negotiated price 53426. Total with tax tag and acq fee, 56152.
Details are as follows:
Offered 14,000.00 on trade of a 2004 BMW X5 3.0 with 80K miles in good condition.
Provided 3000.00 in additonal cash out of pocket
The rest was incentives, eco, nav, customer loyalty.
Total credits from cash net equity and discounts, 6750.00
Worked out to be 53% residual of 32369.00, money factor of .00025
Monthly payment 651.00 for 3 years and 36000 miles. Thanks in advance for your review.
#1765 of 2262 Re: BMW X5 lease...too late to turn back now [pmen]
Dec 13, 2011 (5:44 pm)
My personal opinion (in case it matters because I'm not Carman) is that your deal looks kosher and your negotiated price was reasonable. It appears that the dealer started at $1,500 over the invoice, then subtracted current incentives of $4,500 ($2500 eco credit + $1,000 owner loyalty + $1,000 ghost protocol/December promotion). You got a deal that is as good or better than using a buying service. (If you did NOT get the $1,000 owner loyalty or used the lease money factor credit instead, then your deal is even better because your negotiated deal would have been $500 over invoice.)
My advice (again, in case anyone cares what some guy on the internet thinks) is to enjoy the new car (including the excellent high-torque diesel engine and 600+ miles per tank on the highway). Don't let worry about whether you could have fine-tuned the deal to save a few more dollars spoil the fun of a new BMW. You traded out of the first generation X5 into the current generation. You'll enjoy a huge improvement between the two vehicles.