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Prices Paid: Buying & Leasing Experiences BMW X5 Lease Questions
1118 messages, Last post on Dec 07, 2009 at 11:03 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: limey5 (Sep 19, 2005 6:52 am)
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Replying to: limey5 (Sep 19, 2005 6:52 am) Usually, once BMW puts the big cash incentives on a car, they are there to stay.. Lease incentives however, come and go.. but, you won't see any more lease incentives on this '05 model... And, yes.. the leases in August were fantastic... but, now they are gone... regards, kyfdx Host-Prices Paid Forums |
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Replying to: limey5 (Sep 19, 2005 6:54 am) |
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Hello thetaxman. You would be much better off going with a 2005 BMW X5 than a 2006 model at this point. BMW is providing absolutely no support on '06 models, but it has $5,000 dealer cash and a better money factor on '05 models right now. If you decide that you still want to go with the 2006 model, make sure that your dealer uses a .00180 money factor to calculate your truck's lease payment instead of the .00200 that you were quoted. Unless you are having your vehicle's security deposit waived, it looks as though the dealer that you are working with is trying to mark-up BMW FS' buy rate money factor for your vehicle to add additional back-end profit to your deal. Also, definitely should pay less than $4,000 at lease signing. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your X5 would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. Car_man Host Smart Shopper / Prices Paid Forums
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Hi Larry. You did a good job in finding out about the dealer cash that is currently available on this truck and making sure that it was taken into account on your deal. I don't know the exact dealer invoice price for the truck that you are considering, but if I had to make an educated guess I would say that you are probably paying around $1,000 over invoice after the dealer cash is taken into account. This sounds like a reasonable deal to me, but you may want to stop by the following discussion to compare your price with the prices that other community members have paid for similar trucks recently: "BMW X5: Prices Paid & Buying Experience". Let's calculate a sample lease payment on the truck that you are interested in and see what we come up with. You never mentioned how long you are leasing your vehicle for or how many miles per year you are allowed to drive it, so for now I will assume that we are talking about a 3 year, 15,000 mile per deal. According to my calculations, if you were to lease a 2005 BMW X5 3.0 with an MSRP of $49,720 and a selling price of around $42,220 through BMW FS right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $600. This is right around what you were quoted, so your deal looks good to me. Car_man Host Smart Shopper / Prices Paid Forums |
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Hi Jay. I would be happy to calculate a lease payment on the truck that you are interested in for you. According to my calculations, if you were to lease a 2005 BMW X5 3.0 with an MSRP of $50,920 and a selling price of $44,920 through BMW Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $808. BMW FS is not currently offering 39 month leases on this truck, but a 36 month lease would definitely provide you with a more attractive monthly payment. If you were to do an otherwise identical lease for 36 months, your payment would drop to around $665. I think that you still have a little room to negotiate on your truck's selling price. After the $5,000 dealer cash that BMW is currently providing on this model is taken into account, you are only receiving a $1,000 discount on a leftover model that dealers will be likely anxious to sell. If there is a decent level of competition for your business in your area, you should be able to negotiate at least another $1,000 to $2,000 off of this truck's selling price. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: Car_man (Sep 20, 2005 1:51 am) Note I would love to find an appropriately equipped '05 but what is left isn't appealing to the spouse (who will be mostly driving it...). So it looks like I will need to wait them out for a program on a 2006. |
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Replying to: drtravel (Sep 14, 2005 2:00 pm) Length of lease=36 months Miles=12k/year Cost of car: $46,500 (Premium, Sport, Cold Weather, Privacy, Auto, Nav, Xenons) Money factor (.0029) Total out of pocket ($1,187.64+$800(deposit)=$1,987.64) Residual=54% Residual value is $29,971 Monthly payment=$757.41 Purchase scenario: Cost of car $50,296 (Out the door) Interest rate: 5.48% Payment: $821.26/month for 72 months I was at the dealership for 4 hours struggling over the lease vs. buy decision. The money factor is high because the dealership marks up the rate by .0004. I understand the BMW buy rate is .0025. He would not budge on the money factor. My question is, is it better for me to lease vs buy? I do like having new cars every 3-4 years and have had 4-5 new cars in the past 15 years. Each time I have lost money when trading it in. Mileage wont be a factor on the lease btw. This is my thinking... After 3 years of leasing, I would have paid a grand total of $27,655. If I purchase, I would have paid a total of $29,565 for 3 years The residual is $29,971. Do you think my X5 would be worth $29,971 in 3 years? If so, I can buy it out. If not, I can leave it. If I purchase it, would I be able to sell it for $26,508 (what I would owe)? If I'm not clear, please let me know. Thanks so much.
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Replying to: maximus330i (Sep 21, 2005 9:57 pm) |
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You're very welcome, thetaxman. If you are a current BMW FS lessee then you should be able to get your truck's security deposit waived. BMW FS charges an acquisition fee on every vehicle that it leases and individual dealers do not have the authority to waive it. Car_man Host Smart Shopper / Prices Paid Forums
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