Last post on Dec 11, 2013 at 4:46 PM
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BMW X5, Car Leasing, SUV
#680 of 2375 Re: 2005/2008 X5 numbers requested[rezf] [nj_bmw_byer]
Mar 29, 2008 (2:26 pm)
Have a look at this link
This is an archived list of BMWFS lease rates for April 2005. As you can see, the money factor for the X5 back then was 0.00125. In today's market, the buy rate money factor for the X5 is 0.0025. This reflects what I had previously said in a thread that manufacturers subside the interest and residuals to sweeten a lease deal to keep moving cars. The difference in money factor between 0.00125 and 0.0025 is why the same car today costs XX more.
In 2005, your dealership raised the money factor from 0.00125 to whatever number to make your $630 a month (it was not 0.0021 as you had thought). That is why you were/are not able to calculate the numbers properly. Keeping things as simple as possible is the best way to weed your way through all the fees and get an honest number.
Good luck with everything
#681 of 2375 Re: 2005/2008 X5 numbers Thank You! [rezf] [nj_bmw_byer] [rezf]
Mar 29, 2008 (5:09 pm)
Thank you. I re calculated the numbers my self on my financial calculator and they came out correctly - just as you said. A change in the money factor can make all the difference. if you (ACC - Residual val)/36 the payments for a 50ish vehicle averages about 550.00. Once you add the money factor that price can easily boost to over 700+.
I did this with several vehicles: BMW, Porsche Cayenne, Range Rover. The money factor adds about 200.00+ dollars per month to the lease price of the vehicle. I have since gotten the price of the $53,155.00 BMW X5 down to 722.65 including taxes, down from the 799.00 excluding taxes.
Just shows they were trying to beat me from the beginning. I even had one salesperson hang up on me insisting that if I am trying to purchase a BMW I shouldn't quibble over $20.00 - 30.00.
rezf, thank you for your help and I hope I wasn't too obnoxious. When you are right I have no problem with admitting it. And you were ABSOLUTELY right.
I still believe that consumers would benefit from knowing what the ballpark fair price for a decently equipped vehicle, so they might know where to start. So with that in mine I will share my experience thus far.
The dealer i leased my present 2005 BMW X5 offered me a lease of 799.00 excluding taxes for the following car. X5 3.0, 36/12, Sales Price $51,660.00 with options: Tech pkg, coldweather pkg, rear climate pkg, xenon lights, premium pkgs,heated rear seats, ipod adapter..
I have since been offered for 722.00 including taxes for the same car at another dealership. So if anyone pays more than that, for a similarly equipped car, they might wanna ask another dealer. I will still try to get this car cheaper. If I do I will let you know, so that others will know the ball park of a NJ X5 with similar options.
Also for those that want, between this current deal and the 799.00. I got offers of 772. 00 including taxes, 750.00 including taxes, before the 722.00. I would be happy to tell you the dealerships of my rejected offers when i finish - I may have to go back to them.
rezf thank again -- oh yeah is the $722.00 including taxes a good deal?
#682 of 2375 Re: 2005/2008 X5 numbers Thank You! [rezf] [nj_bmw_byer] [rezf] [nj_bmw_bye
Mar 29, 2008 (5:55 pm)
What I was/am saying is the best way to figure out the best deal is look at the MSRP of the car. Find the invoice price on Edmunds.com, then add $1000-$1500 to the price of the invoice. This should be your Cap Cost. Do not put any money down...only pay the upfront fees...And insist that they use a Money Factor of 0.0025 to calculate the lease. Whatever that monthly payment comes out would be the best deal
#683 of 2375 Re: 2005/2008 X5 numbers Thank You! [rezf] [nj_bmw_byer] [rezf] [nj_bmw_bye
Mar 30, 2008 (5:59 am)
At $1000 above invoice, the lease payments on the 2008 X5 you are considering would be $693 per month before taxes. I say $1000 per month, because that is a deal that can be had any day of the month at the dealership I purchased my X5 from. The market is just too soft for some dealers to justify not discounting that much
#684 of 2375 Re: 2005/2008 X5 numbers Thank You! [rezf] [nj_bmw_byer] [rezf] [nj_bmw_bye [rezf]
Mar 30, 2008 (7:28 am)
Thank you again. I am finding that is an easy and practical why to assess the price of a lease. Now the problem is getting a salesperson to agree with you. Also could you give me the residual percentage on the 2008 X5 3.01.
I might go with the 722.00 per month including taxes. That is closer to what you said a fair price would be. Also I was going to roll the taxes into the monthly lease payment, but the money factor would be on that amount so I am paying them up front.
I will let you know how i made out
#685 of 2375 Re: 2005/2008 X5 numbers Thank You! [rezf] [nj_bmw_byer] [rezf] [nj_bmw_bye [rezf]
Mar 30, 2008 (6:24 pm)
rezf...Thank you from me too. I've been following this thread closely for fear that I 'd be taken to the cleaners, too. Msg# 682 assured me that my thinking process in leasing is going the right way...i.e. negotiate first as close as you can from invoice price and once price has been agreed on only then talk about leasing issues.
Again regarding Msg# 682, what is included in upfront fees? Also you mentioned in Msg# 652 that the March money factor is/was 0.0021. What happened? Why is it now 0.0025? Will this be different for April? What about residual% for April?
Sorry for the questions, everyone. Thanks in advance. Good luck to all of us as we try to get the best deals.
#686 of 2375 Re: 2005/2008 X5 numbers Thank You! [rezf] [nj_bmw_byer] [rezf] [nj_bmw_bye
Mar 30, 2008 (6:44 pm)
That was my type mistake re money factor. For march it is 0.0021 not 0.0025. The rate for Feb was 0.0025 .
Residuals do not typically change from BMWFS (they are already inflated to make leases more attractive). The factors that likely change from month to month are the money factor and any incentives/cashbacks towards a new vehicle. Note, this is model specific and only given if they want to move a particular line more rapidly to deplete excess inventory. The other thing that changes from month to month is what's called "owner loyalty program." For this, they allow existing BMWFS customers (ones that have financed/leased) or ones whose contracts had ended in the past 6 months a special incentive towards a new lease (which is some cash back and a lower money factor)
As for April, I do not think the money factor fluctuates with the Fed rate as seemlesly as some think they do. If BMW wants to lease more cars, they will lower the rate, plain and simple. Spring is a VERY active and busy season for dealerships so I don't think so. However, if you want a bargain, you can count on August, as BMW wants to clear left-over 2008s before introducing the model year 2009 in September-October
#687 of 2375 Re: BMW X5 Leasing [nj_bmw_byer]
Apr 02, 2008 (2:38 am)
Hi nj_bmw_byer. Manufacturers' lease programs vary significant from year to year, and even from month to month. BMW's current lease program for the X5 may not be as attractive as the one that was available when you leased yours several years ago. Or perhaps you are not being given as large a discount on your truck this time. The best way to make sure that you are getting the best possible deal on the new vehicle that you want to lease is to negotiate as low a selling price as possible on it. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. The lower your X5's selling price is, the lower your monthly payment will be. As your salesperson how much they are charging you for your truck and make sure that you are being given enough of a discount.
Prices Paid: Buying & Leasing Experiences Forum
#688 of 2375 Re: 2008 X5 lease [topgun26]
Apr 02, 2008 (2:59 am)
Hey topgun26. You never mentioned the selling price of the X5 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of the vehicle that they want to lease is that it is necessary to calculate its lease payment.
Let's work up a sample lease payment on this truck and see what we come up with. For now I will assume a $3,000 discount. According to my calculations, if you were to lease a 2008 BMW X5 3.0 that has an MSRP of $61,075 and a selling price of $58,075 through BMW Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $795. That's pretty close to the payment that you were quoted. This tells me that this is a pretty good deal.
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#689 of 2375 Re: 2008 X5 3.0 Lease for two novices [fishjill]
Apr 02, 2008 (3:09 am)
Greetings fishjill. I see that you are considering trading in your current vehicle when you lease your new one. There's nothing wrong with doing this, but you would be better off having the dealer cut you a check for any equity that you have in your trade rather than using the proceeds from it as a down payment for your lease. I always advise consumers not to make down payments on leased vehicles. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered.
Even if you have leased a BMW in the past, if you are not a current BMW Financial Services' lessee you are not eligible for any owner loyalty specials and you would have to pay a security deposit on your new lease.
The best way to get a good deal on a leased vehicle is to negotiate as low a selling price as possible on the exact model that you want and then have the dealer calculate your monthly payment using its buy rate lease money factor. The selling price that you were quoted on the X5 that you are considering leasing isn't bad. It is tough to say exactly, but you are probably at around $1,500 over dealer invoice or so. If you are in an area that has a decent level of competition, you may want to consider comparison shopping with a couple of other dealers just to make sure that you are getting the best possible deal. Once you have found a selling price that you are happy with, have the dealer calculate your truck's monthly payment using BMW Financial Services' buy rate lease money factor of .00210.
Prices Paid: Buying & Leasing Experiences Forum