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BMW X5, Car Leasing, SUV
#2107 of 2262 2012 BMW X5 diesel lease
Oct 22, 2012 (11:31 am)
Car_man and other posters,
I am looking at leasing a 2012 BMW X5 diesel. MSRP is $66,195. The lease would be structured as a 36-month lease with 15,000 year (0.00145 MF; 54% residual).
The car that I am looking at is a demo with 3,000 miles. The car was previously damaged by hail while sitting on the dealer's lot. While the car has been repaired, it nevertheless has a dirty carfax history report.
Using Truecar and simply calling dealers in the area, I am able to get $9,000 off MSRP without much negotiation. In some markets (i.e., New York, I am seeing people get $10,500 off the price of this vehicle).
Given the demo and the dirty carfax report (hail), what should my target purchase price be? Currently, the dealer is willing to take only $10,500 off.
How much flexibility does the dealer have in light of the hail damage? My guess is that they repaired onsite for significantly less than what they would have received from any insurance proceeds. But maybe I am wrong.
Thanks in advance,
#2108 of 2262 Re: 2012 BMW X5 diesel lease [chadwick218]
Oct 22, 2012 (12:40 pm)
I'll put in my "other posters" two cents.
The vehicle you are considering would appear to have an invoice price of roughly $60,900; meaning about a $5,300 markup on the MSRP. There is a $4,500 eco-credit from BMW on top of that and you didn't indicate whether or not you qualify for any other credits or rebates (loyalty, drive events , USAA, etc). Let's assume you don't. I could order a brand new version of that vehicle tomorrow for $8,800 off MSRP ($1,000 over invoice). My exact color choices, option choices, etc.
In my opinion, even if the vehicle had no hail damage and was in pristine condition, a demo with 3,000 miles would need to be discounted by at least another $2,500 or more (that's only 5%) for me to consider it over a brand new vehicle. With the hail damage, I'm not sure I would take it at any price but if I did, I'd be looking for another $2,000+ off. You might not care as much if you are leasing, but I don't want to take a damaged vehicle if I'm buying.
So, by my thinking, you would need to be at $13,000 discount, PLUS any other discounts or credits you qualify for, before I'd say "go for it". The deal you have been quoted, $10,500 off, is not compelling enough, in my opinion.
#2109 of 2262 Re: 2012 BMW X5 diesel lease [chadwick218]
Oct 22, 2012 (12:58 pm)
You're not really getting a very good deal, you can almost get that discount on a vehicle without a bad carfax report and no damage. I personally wouldn't buy it if they gave me $15k off msrp.
#2110 of 2262 Re: 2012 BMW X5 diesel lease [socal59]
Oct 22, 2012 (2:06 pm)
Thank you, habitat1 and socal59!
Your comments helped to confirm what I had been thinking. I am at discount of at least $13,000 for this vehicle (in light of the hail). I'll keep you posted.
#2112 of 2262 Re: 2012 BMW X5 diesel lease [chadwick218]
Oct 23, 2012 (5:47 am)
Just want to make clear that my suggested discount would be at least $13k, PLUS any other discounts or credits you qualify for. We got the $1,000 Olympic drive event credit from the summer; others are getting $750 loyalty discounts, BMW Apps drive credit (?), USAA insurance credits.
Also didn't ask if that vehicle is exactly what you want, color wise an option wise. When we were shopping, several dealers offered discounts that were a little better if we took what they had on their lots. But and extra $500 off is not worth it, IMO, if you are going to get stuck with a color combo you don't like, or extra options that you don't really care about. For example, almost all X5's here have the cold weather package at $750, which only adds heated REAR seats (heated front seats are standard), steering wheel, etc. By ordering our car to exact specs, we left that box unchecked. Just not worth it to us.
Sounds like you might be from southern California, in which case picking up a custom ordered vehicle at the Performance Delivery Center may not be practical. But it's the only way I will ever buy another new BMW of any flavor.
#2113 of 2262 Re: 2013 BMW X5 50i [habitat1]
by Car_man HOST
Oct 29, 2012 (10:54 am)
Hi habitat1. New vehicles typically experience their most rapid depreciation during the first year of ownership. This usually makes short leases more expensive than longer one. Longer leases provide another several months for lessees to spread out that initial depreciation hit out over. Another aspect of shorter leases that's annoying is that one has to pay all sorts of registration, acquisition fees, etc when they sign a lease. The shorter a lease is, the sooner one has to pay all of those upfront costs again on their next lease. I personally always lease for 36 to 39 months. I find that provides a reasonable payment, but it not too long.
Consumers always have the ability to purchase their leased vehicle at the end of their terms for their vehicles' residual value. Some banks have been known to even negotiate this price lower from time to time, though it seems as though this happens less frequently today than it did in the past. One bank, Ally, charges consumers a massive, annoying fee to purchase their vehicles, but most do not.
Prices Paid: Buying & Leasing Experiences Forum
#2114 of 2262 Re: 2013 BMW X5 50i [mralbury]
by Car_man HOST
Oct 29, 2012 (11:20 am)
You're welcome mralbury. I'd say that you're at probably around $2,000 or so over invoice. That's not terrible, but if you are in an area that has a decent level of competition you should be able to beat that.
Also, if you're eligible for it, make sure to take advantage of the $750 owner loyalty cash that is currently available on this model.
Lastly, the money factor that you were quoted is slightly high. BMW Financial Services' current buy rate for this model is only .00135 for consumers who qualify for its top credit tiers. Make sure that the dealer uses this rate to calculate your truck's payment.
Prices Paid: Buying & Leasing Experiences Forum
#2115 of 2262 '13 X5d MF and residual
Nov 03, 2012 (8:29 pm)
Can you please provide the 2013 X5diesel November MF and residual for a 36 month lease for both 10k miles and 12k miles/yr lease. Thanks!
#2116 of 2262 '12/'13 X5 Diesel lease rates
Nov 03, 2012 (10:34 pm)
I would like to know what the MF and residual are for the following:
2012 BMW X5 xDrive35d (36/10,000)
2013 BMW X5 xDrive35d (36/10,000)
Also, what's a decent discount on this vehicle? I know BMW is offering $4500 Eco credit and $1500 holiday credit. Correct me if I'm wrong but the dealer gets reimbursed for these credits, right? So it's not like they're discounting the car.
Thanks in advance for all your help.