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
#1840 of 2374 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 21, 2012 (4:07 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 2374 Re: Negotiating Dealer Lease Specials [abmwfan]
Feb 21, 2012 (6:04 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 2374 Re: Negotiating Dealer Lease Specials [abmwfan]
Feb 22, 2012 (9:56 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 2374 Re: Negotiating Dealer Lease Specials [ab10000]
Feb 22, 2012 (11:32 am)
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 2374 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 22, 2012 (12:29 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 2374 Re: Negotiating Dealer Lease Specials [abmwfan]
Feb 23, 2012 (10:52 am)
Got it. Thank you so much abmwfan and ab10000 for all of your help!
#1846 of 2374 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 23, 2012 (11:18 am)
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.
#1847 of 2374 Re: Negotiating Dealer Lease Specials [jrwm]
Feb 23, 2012 (11:48 am)
Best deal I have seen in Northern Ca is $500 over Invoice minus all credits.
BMW Dealers are more willing to negotiate now, and they will beat Costco $1200 over Invoice price. I think because ML350 is being discounted aggressively and it is selling well. I have seen lease on 54K MSRP no down, $545 per month plus TTL.
Also New X5 is coming out in a year or so.
#1849 of 2374 Re: Negotiating Dealer Lease Specials [ab10000]
Feb 23, 2012 (1:35 pm)
Hi ab10000, which dealer in NorCal are you dealing with or heard that they have good deals? I'm having hard time finding a dealer than negotiates a good lease for BMW x5. I heard that they will have some loyalty and other incentives for X5 in March but not sure if it's true.