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BMW X5 Lease Questions

2262 messages,  Last post on May 19, 2013 at 9:01 AM

You are in the Prices Paid - Buying & Leasing Experiences Forum.

What is this discussion about? BMW X5, Car Leasing, SUV

Messages Page 181 of 227

#1792 of 2262 Re: Questions on 2012 Prices, MF, etc [alexkoper] by Car_man HOST

Jan 05, 2012 (5:47 pm)

Replying to: alexkoper (Jan 05, 2012 1:25 am)
Hi alexkoper. BMW Financial Services' January buy rate lease money factor and residual value for a 36-month lease of a base 2012 X5 with 15,000 miles per year are .00195 and 57%, respectively.
 
The January numbers for an otherwise identical lease of an X5 Diesel are .00195 and 56%.
 
I do not believe that BMW is providing a money factor reduction for loyal customers any longer.
 
Car_man
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Prices Paid: Buying & Leasing Experiences Forum

#1793 of 2262 Re: Questions on 2012 Prices, MF, etc [Car_man] by alexkoper

Jan 07, 2012 (1:29 am)

Replying to: Car_man (Jan 05, 2012 5:47 pm)
Thanks Car_Man! Really appreciate it. Are you aware of any manufacturer to dealer or manufacturer to consumer incentives? Am I better off waiting? Seems like I could get the same car for much less in 2011 ...
 
Very grateful for your help.
 
P.S. when you say base model, do the extra packages, etc change the residual much?

#1794 of 2262 Re: Questions on 2012 Prices, MF, etc [alexkoper] by abmwfan

Jan 07, 2012 (6:28 am)

Replying to: alexkoper (Jan 07, 2012 1:29 am)
Alexkoper - residual percentages don't change when you add options. The residual rate is set according to the model, number of lease years, and the number of miles per year on the lease.
 
The residual percentage normally decreases by 1% for each increment in annual lease miles (10k, 12k, 15k). Each increment in annual mileage allowance will cost you about $16/month for a 36 month lease. ((1% x negotiated final price) / 36).
 
When you add options, the payment changes because you are paying the same depreciation rate (100% - Residual) on a more expensive car.
 
For a 36 month lease with 15k miles, payments generally change by about $30/month per $1,000 increase/decrease in price. Add 10k of options, and your lease payment will increase by $300/month. That's very easy to do on a BMW.
 
Ask your salesman to show you the lease residual chart from BMW. Sometimes you will find that a particular model has a much higher residual and you can get a nicer more expensive car for almost the same lease payment because the residual value is higher.

#1795 of 2262 Re: Questions on 2012 Prices, MF, etc [alexkoper] by Car_man HOST

Jan 08, 2012 (7:47 am)

Replying to: alexkoper (Jan 07, 2012 1:29 am)
You're very welcome alexkoper. Options don't directly affect your vehicle's residual values, but its trim level does. The residuals for the base, Premium, and Sport X5 models are all slightly different.
 
Your assessment of the current programs is spot on...they definitely were better in December than they are now. It's difficult to say what BMW's future incentives will be like, but I doubt that they'll be much worse than the current programs.
 
Car_man
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Prices Paid: Buying & Leasing Experiences Forum

#1796 of 2262 What's a good deal on a lease??? by shortyrock302

Jan 08, 2012 (8:19 am)

Hi All!
 
I think I may have missed the boat, great deals were happening last month. I stopped into a dealership yesterday inquiring about leasing a 2012 x5 35i, but was told really no difference in the leasing deals. These cars don't seem to be sitting at dealerships and have to be ordered, which waiting a few weeks is not a problem for me. BMW is advertising lease specials for x5 models. Are these deals negotiable? For example, they have:
 
Well equipped including great features such as iPod/USB Adapter, Hi-Fi Sound System, Roof Rails, BMW Assist, Cargo Cover and Destination charges. A car with an msrp of $48,895
$569*/month for 36 months
 
• $569 First months payment
• $3,000 Down payment
• $0 Security Deposit
• $725 Acquisition fee
• $4,294 Cash due at signing
 
Or: For the premium trim x5 with an msrp of $56,095.
 
Well equipped including features such as Auto Closing Tailgate, Lumbar Support, Heated Front Seats, Park Distance Control, BMW Assist, and Cargo Cover and Destination Charges.
$629*/month for 36 months
 
• $629 First months payment
• $3,000 Down payment
• $0 Security Deposit
• $725 Acquisition fee
• $4,354 Cash due at signing
 
Are these good deals? What if anything is negotiable? I am a current BMW owner and not sure if there are current incentives for owners? Any help is appreciated.

#1797 of 2262 Re: What's a good deal on a lease??? [shortyrock302] by abmwfan

Jan 08, 2012 (10:16 am)

Replying to: shortyrock302 (Jan 08, 2012 8:19 am)
ShortyRock32, I confirmed with my dealer that owner loyalty is no longer available, but don't be too disappointed about missing the Nov/Dec BMW sales event and owner loyalty. ("I think I may have missed the boat, great deals were happening last month.")
 
That's because sometimes you can still end up with close to the same lease payment or even better after the promotions end.
 
The sales event that ended January 3rd had cash and owner loyalty that would give you a combined $2,000 cash on an X5. But the lease residuals on some X5 models/trim levels were lower in Nov/Dec 2011. If you compare Nov/Dec lease residuals to 2012 residuals, you will find that some of the residuals increased on January 3rd. BMW pays for sale campaigns in part by tinkering with residuals.
 
So don't assume that you missed out and have to wait until the next "sale" a year from now. You may not see much difference in your payment if you properly negotiate the deal (described in detail in this forum last month.)
 
Ask your salesman to show you the lease residual chart and look for models/trims that have higher residual value. A few points of residual are more valuable than a couple thousand cash back.
 
For example, I leased a 2012 X5 5.0 last month for the same payment as a comparably optioned 3.5d (my first choice) even though the 5.0 was more expensive and the diesel had an additional $2,500 credit. That's because the residual on the 5.0 was several points higher than the diesel.
 
Are you a BMW Car Club member? Members still get a check for $1,000 on an X5. I don't know why more BMW owners don't maintain a membership if they plan to buy/lease a BMW. A $50 membership gets you a $1,000 check.

#1798 of 2262 Re: What's a good deal on a lease??? [abmwfan] by shortyrock302

Jan 08, 2012 (12:20 pm)

Replying to: abmwfan (Jan 08, 2012 10:16 am)
Thank you so much for taking the time to respond to my message!!! Great information! I wasn't aware about being a car club member?!? I will have to look into this, assuming I can find that information on the BMW USA site??? Definitely worth it! So basically, I shouldn't go by the advertised numbers/deals so much? In the end, it's the higher the residual points, the better the deal? This is so new to me. This will be the 2nd car I will have ever leased. Went into the first one without knowing a thing (Cayenne). This time, I feel like I want a little more knowledge on my side. Can you tell me if ALL BMW dealers all have the same residual chart or does it vary?

#1799 of 2262 Re: What's a good deal on a lease??? [shortyrock302] by abmwfan

Jan 08, 2012 (2:30 pm)

Replying to: shortyrock302 (Jan 08, 2012 12:20 pm)
No matter what terms are advertised, my recommendation is to always negotiate the deal. The advertised lease terms are only an example and include a lot of assumptions for things like how much the dealer will discount the car off MSRP. You can almost always do better. If you ask for the advertised terms, the dealer will gladly give you that deal because they'll make more money than if you negotiate the lease.
 
The December posts in this forum offer a lot of tips on how to negotiate a lease. The residual is important, but other things are important too: discount off MSRP, money factor, options, etc.
 
Residuals are set by BMW. All the dealers in your area should be using the same residuals if you're financing through BMW Finance. The terms would be different if you lease through a different bank.
 
Note that the BMW Car Club membership must be active for at least one year before you buy your car. They changed it back in the late 1990s because people were signing up for a membership on the same day they bought their car, taking the rebate, and then letting their membership lapse. So it won't help you today if you're not already a member, but it's something that every BMW owner should be aware of if they ever plan to buy/lease another BMW.

#1800 of 2262 Re: What's a good deal on a lease??? [abmwfan] by shortyrock302

Jan 09, 2012 (3:47 pm)

Replying to: abmwfan (Jan 08, 2012 2:30 pm)
My dealer told me that $2000 is the most they are going off MSRP because the car is completely sold out and needs to be ordered? Do I have any leverage anywhere else in the cost of the vehicle, to negotiate a lower price? This is for a lease with 15,000 mi. per year.
 
PS. Thanks again for that BMW Car Club information. I was able to find out how to sign up and contacted their customer service who told me I would have to be a member for 1 year before purchasing a new vehicle. Too bad for now, but GREAT to know for future leases.

#1801 of 2262 Re: What's a good deal on a lease??? [shortyrock302] by abmwfan

Jan 09, 2012 (5:49 pm)

Replying to: shortyrock302 (Jan 09, 2012 3:47 pm)
Was that your dealer's opening price in the negotiation or their "final" price?
 
I custom order all my BMWs and my dealer does not offer me less discount off MSRP because an order has to be placed. Roughly 80% of X5 and X3 orders are placed by the customer. BMW's sales process and the plant in Spartanburg, SC are built around custom ordering. It's how they operate and it's not a valid justification to charge you more (if that's what is happening.) I'm sure your dealer would prefer that you buy something off the lot, but that line about being "completely sold out" is just a sales tactic. He wants you to think that the car is so hot that you should pay more.
 
To know if you are getting an acceptable price, ask the dealer to tell you how much above invoice they want to charge. Don't judge the deal by how much they are discounting off MSRP. There are different opinions on how much above invoice is reasonable to pay for a BMW, but a common range to my experience is $750 - $1,250 above dealer invoice (and then subtract incentives from that number.)
 
In general, BMW dealers will not sell at or below invoice when you are placing an order, so don't expect that unless you're a really good negotiator. And it is winter, so X5s are in demand.
 
There are some very detailed posts here in December that describe how to negotiate a lease.
 
But keep it all in perspective. Don't let worry about a couple hundred dollars of purchase price ruin the excitement or convince you to take a car that's not your first choice. $250 difference in price is about $7/month on a 36 month lease payment. It's not the end of the world if you didn't fine tune the last penny out of the deal.
 
You always have leverage because you can shop their deal around and buy from another dealer. Or, consider a buying service (USAA, Costco, credit union, American Express, etc. etc.) that can help you with the negotiation. When I asked my dealer last month about the Costco buying price, he said it was about $1,250 above invoice minus incentives. That might serve as a benchmark for what's reasonable. If the price is too high and the dealer won't budge, tell him you're not happy with the price and you plan to use a buying service and shop around at other dealers. Ask him to beat the buying service price to keep you from ending up at another dealer. Hopefully it won't come to that.
 
Carman might be able to give you some better tips.

Messages Page 181 of 227

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