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BMW X5, Car Leasing, SUV
#1837 of 2262 Re: February MF, promotions? [asteinberg]
by Car_man HOST
Feb 06, 2012 (5:02 pm)
Hey asteinberg. According to the latest information that I have seen, BMW Financial Services' February buy rate lease money factor and residual value for a 36-month lease of a base 2012 X5 35i with 15,000 miles per year are .00195 and 57%, respectively for consumers who qualify for its top credit tiers.
The residual value for a lease with only 12,000 miles per year would be 2% higher.
BMW is not currently providing any cash incentives on the 2012 X5 that I am aware of, not loyalty nor conquest.
The attractive deals that were available in December just aren't there right now. The fact that January sales ended up actually being fairly strong probably won't encourage manufacturers to pour on the enhancements either.
Prices Paid: Buying & Leasing Experiences Forum
#1839 of 2262 Negotiating Dealer Lease Specials
Feb 21, 2012 (3:39 pm)
Hi, I was hoping I could get some help in understanding my best options for negotiating a lease from a starting point of an advertised deal. I am looking at the BMW X5 35i Premium and the current offer is $629/mo for 36 mos with $3000 down ($4,354 due at signing), a money factor of .00195, 10,000 miles/yr (more than enough for me), MSRP of $56,095 and a residual value of $34,779. The current offer includes no additional options and the dealer told me that adding the convenience package would raise the monthly payments to between $825-$850/mo. While I like the idea of a rear view camera, I could do without it. I have read that advertised deals often have little wiggle room for negotiating, is this true of this deal? In addition, what is the protocol regarding items like a cargo mat, etc? Do I have to buy it outright even though I am leasing the car or can I sweeten the deal by getting the dealer to throw it in for free? Thank you in advance for your help!!!
#1840 of 2262 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 21, 2012 (5:07 pm)
Tips for negotiating a lease have been posted in detail in many recent posts in this forum. For example, review December posts #1786, 1799, 1801, and 1826.
You asked a question specifically about the impact of options on your lease payment. Assuming a 36 month lease, each $1,000 of additional options typically increases your lease payment by about $30 per month. The convenience package costs $3,500 (minus a discount of up to 10%). That means it will add about $110 per month to your payment. (I have the convenience package and it's a really nice thing to have because it includes navigation, traffic information, keyless entry, garage door opener, "top view" camera, google search, etc.) Note: Ask your dealer if they still offer the credit for the navigation system that they offered in Nov/Dec. That will reduce the cost of your convenience package by$1,700.
Cargo mats can be purchased for about $100 in the parts department and they are a good thing to have. You can always ask for extras. My dealer gives new buyers a gift, usually a gift card good for an accessory purchase. Just keep in mind that it's a zero sum game. If they give you $100 cargo mat, that's part of your discount and it's coming out of the deal somewhere.
The advertised deals are just marketing. They're a way for BMW to advertise a sample price for a sample vehicle and notify you that an incentive program may be available. The advertised deals are based on a number of assumptions and you can do better. Never accept the advertised lease offer. Always negotiate the deal or you will pay too much (but the dealer will love you because they'll make a lot of money off you.) This forum has detailed information on that process. Look at post #1786 on 12/30/2011 for an example of how to negotiate a lease. (http://townhall-talk.edmunds.com/direct/view/.ef9d9d2/1785#MSG1785)
I always recommend ordering your X5. It's extremely easy, can be delivered in as little as 3 or 4 weeks, and will give you a fresh car with exactly your choice of color and options. You should not pay more for an ordered vehicle. If your dealer tries to charge you more because you want to place an order, find a new dealer. This is discussed in detail in the posts that I listed.
#1841 of 2262 Re: Negotiating Dealer Lease Specials [abmwfan]
Feb 21, 2012 (7:04 pm)
You Math does not add up, That does not make any sense. 1000 increase in option is NOT $30 in lease payment. You have to multiply the (1- residual) which is about 40%. Otherwise 10K in options mean that your payment will go up by 300 a month which is wrong. Remember you are leasing so you pay for the depreciation which is about 40% of MSRP plus interest on full car price divide all by 36 payments. It should be about $13 per month
Use the lease calculator to see the impact of adding more options
#1842 of 2262 Re: Negotiating Dealer Lease Specials [abmwfan]
Feb 22, 2012 (10:56 am)
Thank you so much for the useful information! I have reviewed the postings that you recommended and have gathered that I should definitely negotiate the price (up from the factory invoice), but make sure that the other factors remain the same and are not manipulated to change the deal. Also, I should definitely order the car. It sounds like many people are against the idea of putting money down and would instead recommend MSDs- do the dealers often take these in lieu of a down payment? I did check with the dealer regarding the navigation credit and he said that it had expired. After your glowing review of the convenience package, I think I would regret not getting it, but the low-end estimate of $825/mo still sounds too high.
Overall, I am trying to ascertain if this base deal is a good deal and what a good deal will be with the convenience package included. I have never negotiated anything and although I am in my 30s I look much younger, so I feel like the odds of negotiating a fantastic deal are not great. I am in no particular hurry to get a car, either. Therefore, if I can impose on you further, what would be a reasonable expectation for what I can negotiate and, after all that, is the deal even good or will the next 6 mos bring better deals that someone like me will not have to work so hard for?
Again, thank you so much for all of your help- I really appreciate it!
#1843 of 2262 Re: Negotiating Dealer Lease Specials [ab10000]
Feb 22, 2012 (12:32 pm)
ab10000... you're right that the $30 is the impact on lease payment per $1k net change (option price less residual amount), or, per $1000 of additional down payment (not recommended on a lease). Using a lease calculator is always a better way to go because you can base an estimate on actual numbers and not a rule of thumb.
#1844 of 2262 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 22, 2012 (1:29 pm)
"Therefore, if I can impose on you further, what would be a reasonable expectation for what I can negotiate and, after all that, is the deal even good or will the next 6 mos bring better deals that someone like me will not have to work so hard for?"
You asked two questions. First, will there be better incentives six months in the future? We're in late February now and you're getting close to the end of the 2012 model year. You might see some incentives on the last of the 2012 models in late spring or early summer. Otherwise, BMW tends to do a December sales event each year.
Second, how do you know if you're getting a good deal? Everyone has a different opinion. I would say that if you can lease or purchase an X5 for $750 - $1000 over dealer invoice (minus incentives), then you have a fair deal. Maybe you can play hard ball and get it for less.
#1845 of 2262 Re: Negotiating Dealer Lease Specials [abmwfan]
Feb 23, 2012 (11:52 am)
Got it. Thank you so much abmwfan and ab10000 for all of your help!
#1846 of 2262 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 23, 2012 (12:18 pm)
Another thing that might be helpful... You can lock in incentives and terms when you place your order. If a better incentive or lease program is available when you take delivery in a few weeks, you'll be able to take advantage of that program (or keep your original terms, whichever is better.) So there's no potential penalty to placing an order if incentives improve.