Last post on Dec 05, 2013 at 10:43 AM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
BMW X5, Car Leasing, SUV
#1826 of 2374 Re: Car man - Good Lease or Not? [wherespete]
Jan 30, 2012 (4:38 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.
#1827 of 2374 February MF, promotions?
Feb 02, 2012 (5:14 pm)
Missed Dec window for X5; Jan - high money factor, and no BMW promotions.
For 12,000, 15000 mile lease, what is MF, residual for X5?
Any promotions? What about X5?
...promotoins, in general, such as year-end, or for existing BMW owners, or recent Lexus owners?
Last question -- for Feb, do any quality SUVs or crossovers have good promotions or good MF?
We consider Mercedes -- attractive deals ,but no xenon lights available...
#1828 of 2374 Good Price ?
Feb 02, 2012 (8:03 pm)
2012 BMW X5
Vehicle Price - $ 59,895.00
Discount - $4,000
Total Selling Price - $55,895
Tax + Title + $ 55,895 = $ 59,781.45
Special Offer Lease X5
Cash Due - $ 7,400
10,000 miles = 36 months
Monthly payment - $ 679
Is this a good price to take ?
#1829 of 2374 Re: Good Price ? [bmwvica]
Feb 02, 2012 (9:29 pm)
7,500 is a lot of cash upfront for a leased car. I learned many years ago not to put any down payment for a lease as you can lose it if you total the car.
#1830 of 2374 Re: Good Price ? [trabd123]
Feb 03, 2012 (4:12 am)
This is the special lease offer they are running on BMW. I am planning to put an extra $1,000, since I will be getting off from BMW Club USA.
#1831 of 2374 Re: Good Price ? [bmwvica]
Feb 03, 2012 (7:30 am)
Still too much money to put down on a lease. If there is an accident and the car is totaled that money is gone and you will not get it back from insurance. Car guy can explain it better and there are some posts recently that detail the specifics of this situation.
#1832 of 2374 Re: Good Price ? [bmwvica]
Feb 03, 2012 (10:06 am)
This is the worst deal I have seen, you broke the record.
So if they put the 7K down, back into the lease your payment will be about $800.
For what? Are you buying the 5.0 X5? They are play a nice game with you.
#1833 of 2374 Re: Good Price ? [bmwvica]
Feb 05, 2012 (12:01 pm)
as someone who recently leased a BMW, I can tell you that this is not a good deal at all; rather than putting money down in order to finance less, I would use the Multiple Security Deposit program from BMWFS: you can put up to 7 payments in an escrow account and they will reduce your money factor by 0.00007 times the number of security deposits (up to 0.00049); this lowers your interest and will make your payment lower. This money is yours at the end of the lease (you can either take it back minus the disposition fee, excess miles, etc. or use it to buy the car if you choose to do so). This program also protects you in case you total the car (others on this forum explained this already).
If you live in a state that charges sales tax upfront on lease (like Texas), ask if they don't have sales tax credits: those don't always exist with BMW but you can ask.
#1834 of 2374 Re: Good Price ? [mbtex]
Feb 05, 2012 (12:13 pm)
Is there any BMW officail website ? I am searching for one inside bmwusa.com, but can;t find.
#1835 of 2374 Re: Good Price ? [bmwvica]
Feb 05, 2012 (12:55 pm)
Down Payment of $1000 comes to $878/per month.