Last post on Dec 05, 2013 at 10:43 AM
You are in the Prices Paid - Buying & Leasing Experiences
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BMW X5, Car Leasing, SUV
#1779 of 2374 Re: Lease first and Buy After the lease [realgeni]
Dec 21, 2011 (5:39 am)
The option to buy a new model doesn't have anything to do with maintenance issues after 3 years, which was your original statement.
If you want to know if a new X5 model will come out, just track the current generation's production cycle. BMW production cycles run 7 years (except for the new 3 series that goes on sale in the U.S. next spring. That production cycle could be much longer than 7 years).
This current second generation X5 was released as a 2007 model in late 2006. That means that the third generation probably will be released as a 2014 model two years from now. So there WILL be a new model before the end of your 36 month lease if you lease now.
#1780 of 2374 Re: Help with my Lease for a X35d [abmwfan]
Dec 22, 2011 (1:54 am)
I would try for invoice because there is a hold back and marketing fee on the car
#1781 of 2374 Re: Help with my Lease for a X35d [ab10000]
Dec 22, 2011 (4:38 am)
ab10000, how many BMWs have you purchased for Invoice minus all incentives? There's nothing wrong with trying, but you're not likely to get it for that price. This is a new 2012 BMW being sold in 2011, not a left-over Kia or Chevy. Even buying clubs (like Costco, USAA, etc.) don't get you a new, current model BMW for invoice minus incentives unless the dealer gets their profit in another part of the deal (like your trade-in, jacked-up lease rates, etc.) When I checked last month, the Costco buying club price was $1,250 over invoice. Unless you get lucky or can get employee pricing, the only time you typically can buy a BMW for invoice or below (minus all incentives) is if the car is left over from a previous model year. It's not good advice to set unrealistic expectations.
#1782 of 2374 Re: Dec. X5 MF and residual [Car_man]
Dec 22, 2011 (7:52 am)
Do you know, if MF reductions (.0030 and an additional .0075) will be still in effect after 01/03/2012 (self-destruction date )? The problem is that I had to go with a new factory order, since there were no vehicles in stock that match my criteria. All the dealers I talked to would honor .0030 MF reduction, but refused to lock and apply an additional .0075 MF reduction. I'm current customer of BMW FS, and my lease is up in end of January of 2012. Thank you.
#1783 of 2374 Re: Help with my Lease for a X35d [abmwfan]
Dec 22, 2011 (9:37 am)
First of all the 2012 is marketing ploy, Mercedes Benz play the same game, they call their 2011 production 2012, so it is not model year, you have to go the actual production date to figure how old the car.
Second , all these clubs pricing like Costco, amex etc. are for pepople who do not know how novitiate and you can can do lot better if you negotiate yourself.
Costco have to make money too and that is coming off your price.
I have tried all these clubs and every time I get a better price doing the negotiating myself.
Personally I will pay invoice because there is a hold back and marketing fee backed in the price. In these economic condition I think it is fair.
#1784 of 2374 Offer on 2012 X5 35i Premium
Dec 27, 2011 (11:04 am)
Is this a good deal? I think we are pretty close to coming to terms on this car. Let me know what you think:
$60,175 MSRP incl Dest Fee
$55,395 Invoice incl Dest Fee
$55,274 Final Price including Doc Fee (but not incl taxes)
The final price was figured after including $1000 rebate and $1730 nav credit. I do not qualify for loyalty as we have an Audi currently.
Dealer is offering 3.9% financing for 60 months or a 36-month lease with 12k miles with money factor of .00215 and 56% residual. Lease also adds on $925 acquisition fee.
Thanks for your feedback!
Dec 30, 2011 (5:18 am)
I'm new to this forum, but have found some very interesting information. How about a new approach. I am considering a lease on a new 2012 X5 sport with the following info. What would you consider a fair lease payment?
36 mo lease, 12,000 miles per year
Has navigation package
First time BMW owner, so no credit there
This purchase is in the Kansas / Oklahoma region
I would qualify for BMW's best rate
Kind of a novice here, and it looks like getting the very best deal could be kind of tricky. I just did not want to make a real mistake. Thanks for any opinions.
#1786 of 2374 Re: New Approach [wherespete]
Dec 30, 2011 (7:46 am)
That's not really enough information to calculate a lease payment. Generally, with minimal money down, a ball park 36 month lease payment for a new X5 in the range of $800 / month is not unusual depending on options, model, etc. Highly optioned models will be higher. Subtract about $30 per month per extra thousand dollars down payment.
Never start negotiation with your dealer based on a target monthly payment. There are too many ways for them to rig the deal to their benefit and not yours.
The advice in earlier posts still applies. First, start with the dealer invoice price. Add up to $1,000 dealer profit or less if your dealer will allow it. (Some people try to buy a BMW for dealer invoice minus incentives because there is a hold back of around 3% below invoice for dealer profit. That works if you're buying a honda. You can use that as your starting point for negotiation, but it may or may not work on a BMW unless it's a left-over vehicle. If the dealer does offer the vehicle at dealer invoice, make sure they didn't arrive at that price by including cash-back incentives.)
Then subtract all current incentives ($1,000 end of year incentive on the X5, Owner Loyalty, etc.)
Then add tax, tags, etc.
Then review the lease rate and ask your dealer how much they marked up the lease rate. They will often pad their profit by marking up the lease rate by around 50 basis points on top of what BMW finance charges. Ask them to cut the mark up in half. (Multiply the "money factor" by 2400 to calculate the equivalent interest rate.) A mark up of 50 basis points can increase your interest rate by more than a full percentage point.
The residual value is fixed by BMW Finance and not negotiable. The residual value decreases by 1% with each increase in annual mileage (10k, 12k, 15k). It also varies between X5 models. Through December 31st, the residual value for a diesel X5 is lower than for the 3.5i and 5.0i. That means that the lower residual more than offsets the extra incentive on the diesel. Ask the dealer to show you the current residual value sheet provided by BMW. Every 1% increase in residual can reduce your lease payment by around $15 - 20 / month depending on purchase price.
If your dealer is not willing to answer these questions or will not show you the dealer invoice, then you might want to find another dealer.
You can use these metrics to assess whether your dealer is giving you a fair deal. But, they're not charities and they don't sell at cost.
I always recommend not letting anxiety over fine tuning the purchase price by a few dollars ruin the excitement of buying or leasing a new BMW. If you're happy with the car and the deal, that's all that matters. Don't worry about whether someone somewhere else might have found a similar car for a hundred bucks less.
#1787 of 2374 Re: Help with my Lease for a X35d [ab10000]
Dec 30, 2011 (7:55 am)
ab10000, you are wrong about model years being "just marketing". The model year directly affects residual value. A 2012 has greater market value and residual value than a 2011 sold in Dec 2011 or Jan 2012. A dealer generally is more motivated to unload a left-over 2011 that's been sitting on the lot than he is for a 2012 that just arrived.
There are other reasons why you are wrong: some model years involve substantial styling changes, new drive trains, etc. That was the case in 2010 vs 2011 for the X5.
BMW also makes substantial changes to option packages and pricing from year to year. So for example, a fully loaded 2012 X5 5.0i will cost over $1,000 less than a loaded 2011. That's because navigation and heated seats are standard in 2012 and because options packages bundle features together at lower price by including more options that previosly were stand alone. That typically happens to a greater degree late in the production lifecycle of a particular model.
It's not "just a marketing ploy". The scenario that you mentioned only happens with BMW with very early release of the next model year. For example, when the 2011 X5 was released on April 1, 2010. Some of the 2011 model's changes to electronics (mobile office, etc) weren't available until October 2010. But the styling changes and new engines were available and those matter most.
#1788 of 2374 Re: New Approach [abmwfan]
Dec 30, 2011 (12:37 pm)
Thanks for the reply. After I finished typing and sending the message, I thought "that's not going to be enough information", but you helped me out. Also, are the deals "really" going to be that much better in the next couple of days, before the end of the year? I find myself pushing hard to get something closed before then, and am wondering if it is really worth the rush.