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
#1796 of 2374 What's a good deal on a lease???
Jan 08, 2012 (7:19 am)
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 2374 Re: What's a good deal on a lease??? [shortyrock302]
Jan 08, 2012 (9:16 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 2374 Re: What's a good deal on a lease??? [abmwfan]
Jan 08, 2012 (11:20 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 2374 Re: What's a good deal on a lease??? [shortyrock302]
Jan 08, 2012 (1:30 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 2374 Re: What's a good deal on a lease??? [abmwfan]
Jan 09, 2012 (2:47 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 2374 Re: What's a good deal on a lease??? [shortyrock302]
Jan 09, 2012 (4:49 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.
#1802 of 2374 Re: What's a good deal on a lease??? [abmwfan]
Jan 09, 2012 (6:02 pm)
This was the opening. Met him Saturday, but didn't have an actual car to test drive, showed me one that was going out to a new owner. These numbers were all via email communication this evening. We never really started any talk until today. For example, quoted me on a 35i premium, MSRP $60,695, dealer cost 56,895. Looking at about $871.58, taxes and fees included. Taxes 3.75%, plus rolling in some tax credit (approx $1219) from trading in my lease there. Have an appointment to go in Thursday.
#1803 of 2374 Check in to see if I have the best lease deal for '12 BMW x5 35desiel
Jan 11, 2012 (1:12 pm)
Hey there Car guy. Just got a quote from BH BMW in Los Angeles and wanted to pass it buy you. MSRP 61,625
Lease end value,35742.50
Initial cap coast 56,008.32
cash cap reduction 408.81
sales tax 2,402.13 (ouch)
adds to cap 45.00
adjusted cap cost 45,644.51
money factor 0.00195
base monthly 731.03
total with everything 795.00
Drive off 2,500
Annual fees 465.00
what's up with the adjusted cap cost? and should I get the dealer invoice #
#1804 of 2374 Re: Check in to see if I have the best lease deal for '12 BMW x5 35desiel [duncansmom3]
Jan 11, 2012 (3:37 pm)
Just out interest what package/options was this?
And does anyone know if we can still apply for Government Tax rebate on X5 Diesel and if so what is that?
#1805 of 2374 Good lease?
Jan 11, 2012 (7:32 pm)
Just got offered the following after alot of negotiations. Is it a fair deal?
Selling Price $63,245
Money factor .00195
Monthly payment $786