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BMW X5 Lease Questions

2262 messages,  Last post on May 19, 2013 at 9:01 AM

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What is this discussion about? BMW X5, Car Leasing, SUV

Messages Page 5 of 227

#34 of 2262 Re: Re: Realistic Lease price by Car_man HOST

Sep 20, 2005 (2:51 am)

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
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#35 of 2262 Re: Re: Sept. lease numbers? by Car_man HOST

Sep 20, 2005 (3:00 am)

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
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#36 of 2262 Re: Re: X5 '0 5lease #'s by Car_man HOST

Sep 20, 2005 (3:07 am)

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
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#37 of 2262 Re: Realistic Lease Price [Car_man] by thetaxman

Sep 21, 2005 (7:41 am)

Replying to: Car_man (Sep 20, 2005 2:51 am)
Thanks Car_Man. I appreciate your filling me in on the appropriate money factor since I had read elsewhere (probably you...) where it was indicated that BMW dealers would jack up the money factor over what was available to them. Also, re the security deposit, I should be able to get it waived since I previously leased three vehicles with a dealership under the same ownership umbrella. Note the $4,000 also included upfront sales tax and an $800 bank fee. I agree with you and totally understand not to pay any cash upfront and won't - other than title, license and the bank fee if I cannot get them to waive it (any chance on this?).
 
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.

#38 of 2262 Re: X5 lease on BMWUSA [drtravel] by maximus330i

Sep 21, 2005 (10:57 pm)

Replying to: drtravel (Sep 14, 2005 3:00 pm)
I need some help desperately. Thanks in advance for reading this. Here is my situation. I am going to buy a 2005 X5 3.0 and received 7k off the msrp. Here are the figures:
 
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.

#39 of 2262 Re: X5 lease on BMWUSA [maximus330i] by maximus330i

Sep 22, 2005 (10:21 am)

Replying to: maximus330i (Sep 21, 2005 10:57 pm)
I'm sorry for asking this again, but I am in a real bind here. I appreciate all answers. Thanks so much.

#40 of 2262 Re: Re: Realistic Lease Price by Car_man HOST

Sep 26, 2005 (2:58 am)

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

#41 of 2262 Re: Re: X5 lease on BMWUSA by Car_man HOST

Sep 26, 2005 (3:04 am)

Hello maximus330i. The lease money factor that you are being charged on this truck is too high. BMW Financial Services' buy rate lease money factor for a lease of a 2005 BMW X5 is currently only .00250. Even if you were to have your truck's security deposit waived, it would only increase the factor to .00265. It appears as though the dealer that you are working with is marking-up BMW FS' buy rate to add additional back-end profit to your deal. This sort of thing is perfectly legal and happens all the time with BMW dealers, but can usually be avoided if you know what the base factor is.
 
If you are forced to use the higher .00290 lease money factor, which is equivalent to an interest rate of nearly 7%, you probably would be better off financing this truck with a conventional loan at a lower rate. It is difficult to say whether BMW FS' residual value of 54% for a 3 year lease of an '05 X5 is inflated. It probably is a little higher than this truck will be worth at the end of three years, but it is difficult to say for certain at this point.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#42 of 2262 Purchased the X5 by maximus330i

Sep 26, 2005 (1:13 pm)

Thanks Car_Man. I ended up purchasing the X5 with a 5.48% apr through USAA. The lease was a bit high and I wouldn't save a lot of money over 3 years versus buying it. I appreciate the response.

#43 of 2262 New lease program for 2006 X5 $700 by suv800

Oct 01, 2005 (11:23 am)

Okay,
 
The BMW X5 lease problem is back for the 2006 models. Just around $700.
Here's the details,
X5 4.4 with Navigation, CD Changer, Cold Weather Pkg, Premium Pkg, 36months.
15000 miles/year, no money down. only the first month and security deposit of $650.00.
Total out of packet $760 + $650+$110 mv fees = $1520.00.
I think this is good for most of us, just like I told every one in the begining of September.
Good luck every one.

Messages Page 5 of 227

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