Last post on May 19, 2013 at 9:01 AM
You are in the Prices Paid - Buying & Leasing Experiences
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BMW X5, Car Leasing, SUV
#1817 of 2262 2012 X5 5.0 Lease - Is it good?
Jan 20, 2012 (3:38 pm)
Pl. let me know if this is good to go through FOR 2012 x5 50 36 month, 20000 miles/year
MSRP - $69195 (options: Tech package, running boards, bmw app). The model comes with the premium pkg (which is standard that includes navigation etc., )
Cap cost - $64775. The dealer said it's just $500 above invoice and I was send to the manager through some recommendation.
money factor - 0.00195 (or) 4.68 (current APR)
Residual (39208) - Additional 5000 miles per year added here in residual at 20 cents per mile . which reduces the residual by $3000. After reading some recommendation here from my previous post, I'm thinking of making it 15K miles and then if it's only 16 cents/mile over for additional miles, then that might be a good choice.
Down payment: $4000. Due at signing : $1757
Comes around to : $877/month
#1818 of 2262 Re: 2012 X5 5.0 Lease - Is it good? [cybopal]
Jan 22, 2012 (6:34 am)
Always go with Zero down. Do not pay any upfront money when leasing. You will not get your money back if your vehicle get totaled. Yes you will reduce your monthly payment but it is not wise thing to do.Do this instead, There is a program run by BMW I forgot the name or term for it ( may be abmwfan or Host or members can help ) where you put your $ 4000 toward that program and you will earn interest on it, at the end of the lease you will get your $ 4000 back with interest. Good Luck.
#1819 of 2262 Re: 2012 X5 5.0 Lease - Is it good? [habsone]
Jan 23, 2012 (4:56 pm)
It's called MSD (Multiple Security Deposits). One can out a maximum of 7 MSDs to reduce the lease rate. So assuming you payment was coming to $700 without the sales tax per month, if you put in $4900 in terms of MSD, you lease rate will go down by 7*.07 = .49 which is significant.
#1820 of 2262 Re: Check in to see if I have the best lease deal for '12 BMW x5 35desiel [duncansmom3]
by Car_man HOST
Jan 26, 2012 (6:13 pm)
Hi duncansmom3. The money factor that you were quoted looks great. So let's take a look at the selling price.
After the diesel credit is taken into account, it looks as though you are being given a $3,100 dealer discount on this truck. There's probably a spread of around $5,000 between this truck's dealer invoice price and its MSRP. So you're looking at right around $2,000 or so over invoice. That's not bad, but there's still some room there. If you're in an area that has a decent level of competition, I wouldn't be surprised if you were able to negotiate another grand give or take off of this price, assuming that there is a decent supply.
Prices Paid: Buying & Leasing Experiences Forum
#1821 of 2262 Re: Car man - Good Lease or Not? [chad39]
by Car_man HOST
Jan 26, 2012 (6:17 pm)
Hi chad39. The money factor looks good. Is the selling price that you mentioned before or after the deduction of the $2,500 credit. If it's before the credit is taken into account, this is an excellent deal. If not, it's still not bad...probably $1,500 or so over invoice.
Prices Paid: Buying & Leasing Experiences Forum
#1822 of 2262 Re: Car man - Good Lease or Not? [Car_man]
Jan 26, 2012 (6:51 pm)
This was after the $2,500 credit so probably around $1,500 over invoice. I ended up doing the deal because I was not sure how much more I could push as the car had to be located in Utah and shipped to Portland as there were no models around this area with all the options I wanted.
Thanks for the feedback.
#1823 of 2262 Re: Car man - Good Lease or Not? [chad39]
Jan 26, 2012 (7:38 pm)
Why go through all that trouble when you can order the exact X5 that you want with your choice of options? The order and delivery process can take as little as 3 weeks and you get a completely fresh vehicle.
#1824 of 2262 Re: Check in to see if I have the best lease deal for '12 BMW x5 35desiel [Car_man]
Jan 26, 2012 (10:16 pm)
Thanks so much Car Guy. Ill give a go.
#1825 of 2262 Re: Car man - Good Lease or Not? [abmwfan]
Jan 30, 2012 (1:40 pm)
I have wondered about ordering one as well (as opposed to settling for one with features I don't want). Big question is, do you approach the negotiation of price the same as you would for a unit that is sitting on someones lot? $1,000 or so over dealer cost? To me it seems almost easier for the dealer this way, they don't have to worry about moving the unit, but I wonder. Thoughts?
#1826 of 2262 Re: Car man - Good Lease or Not? [wherespete]
Jan 30, 2012 (5:38 pm)
You're right that ordering can be better for a dealer in several ways. All BMWs are made to order and BMW's production process is completely built around custom ordering (roughly 80% by the end customer and about 20% by dealers.) It's pretty much the norm for them. A dealer doesn't mind placing an order because it's a guaranteed sale and they know you'll be anxious to pick up your new car as soon as it arrives. The car doesn't sit on the lot with all the expenses that entails. And they also want you to be happy. If a custom order will make you happy, then most dealers won't give you grief about it.
The price negotiation for placing an order is exactly the same as buying off the lot. You sit down with your sales rep and select the model, trim level, color, options, etc. You negotiate your price as if you were taking the car that day and you lock in your finance terms. Your finance application is submitted and approved that day. Sometimes they want you to place a small refundable deposit. The sales rep will assign your vehicle to the dealership's next available production slot at the Spartanburg SC factory.
As an added benefit of ordering, you have the option of taking advantage of incentives and financing programs on the day of delivery if they're better than the programs available when you placed the order. You can also make other changes on delivery day like switching to a 24 month lease instead 36.
Now, some less-than-honest sales reps will tell you that you can get a better deal if you take something off the lot. If so, call their bluff or find another sales person. You should not be forced to accept a smaller discount on an order unless they're trying to sell you a heavily discounted left-over. I always place a custom order. Most recently, I ordered a 2012 X5 5.0 and took delivery in December. The negotiated price was $800 over dealer invoice less incentives.
A new vehicle can be delivered in as little as 3 weeks. My experience has been an average of a little over 4 weeks from placing an X5 order to driving it off the lot. Delivery time depends on a number of factors such as factory schedule, availability of dealer slots, transition to a new model year, your location, etc. (My previous X5 was delayed by the March/April 2010 volcano in Iceland because transmissions from Europe were delayed.) If the next available open slot is too far in the future, usually the dealer will re-assign an earlier dealer order to you. They would rather have that vehicle go to a guaranteed sale than for it to sit on the lot waiting for the right person to buy it.
The other thing that I think is cool is that the dealer (and you) can track your new vehicle at every step of the process from the exact second that production begins until it shows up at your dealer. That's true of vehicles produced here and in Europe.