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BMW X5, Car Leasing, SUV
#846 of 2372 USED 2008 X5 3.0 residual and money factor
Nov 22, 2008 (10:43 am)
I am trying to Lease a USED 2008 X5 3.0 Premium, Tech, 3rd row seating and 11k miles with an asking price of 49k. My company requires that I lease. Does anyone know the residual value or the money factor for a used X5. The car is in So Cal
I am told that the rates are less favorable than those for a new 2008. I assume this is because of lower Residual and Money factor. Are these set by BMW financial or by my sales team. Are they negoitiable?
#847 of 2372 High milage lease
Nov 22, 2008 (10:52 am)
I understand BMW financial will allow you to add extra miles to a lease at .16$ per mile up to the last 4 months of the term of the lease. Will they recalculate your monthly lease payment as the actual residual value of the car changes. For example if you add 20k extra miles for $3,200 to a 10k/yr 3 year lease and return a BMW with 50k miles its actual value is less. Will your monthly payment change?
#848 of 2372 Re: High milage lease [scouv1]
by kyfdx@Edmunds HOST
Nov 22, 2008 (11:13 am)
When you add extra miles during the term, I don't think the residual changes. It is just a straight purchase of the extra miles. They will pro-rate the charges over the remaining term of the lease, if you wish, though.
If you have the miles added to the contract, upfront, then the residual is reduced by $0.15/mile.
#849 of 2372 Re: High milage lease [kyfdx]
Nov 22, 2008 (11:40 am)
So if you need 25k miles per year it seems better to lease at 10k miles /yr with a residual around 62% and add the miles than to recalculate the lease based on a 3 yr old car with 75k miles.
This assumes the you have to lease a car.
#850 of 2372 BMW X5 3.0 DEMO Lease:Negotiation advice needed for NY
Nov 22, 2008 (7:06 pm)
Please help me on a 2008 X5 3.0 lease in upstate NY. It is a holdover DEMO with 2,500 miles. MSRP $55,325, Selling price $49,700 Lease: 36 mo./12k miles
Includes: Premium Pkg, Cold Weather Pkg, 3rd Row, Rear Climate, Rear DVD & Park Distance
Residual is (56%)? & Money X = .00125 (3%)
Monthly payment $699.66; included taxes and zero $ down payment
Question 1: is this a good deal or could they come down? they wouldn't budge when I asked for accessories or lower payment. should i just take it at $699 or what is the REAL monthly # I can get this down to? dealer said "No X5 goes below $700 with zero down". Any truth to this?
$2,405 due at signing (inception fees)
$699.66 1st month
$625 bank fee
$225 office fee
$700 security deposit
Question 2: can i negotiate any of the fees (bank & office)?
Since the car is a demo I lose my BMW CCA loyalty rebate, and the dealer will still not budge. Dealer in NY said if I don't pull the trigger by Tuesday, he will not honor the offer and has other buyers wanting the car.
Questiion 3: What can I get him to throw in or work with me on? Possible tire waranty since they are run flats?
Please help me, I need to decide in next 48 hours.
#851 of 2372 Re: BMW X5 3.0 DEMO Lease:Negotiation advice needed for NY [bmanpc]
Nov 22, 2008 (8:10 pm)
It's a buyers market. Relax -- you probably didn't notice the other buyers lined up at the back door of the dealership hoping that you will let the deal of all deals slip through your fingers. You didn't notice them because they weren't there. You need to get over to the 5 series discussion and touch base with jvost. You can read his last few postings in the lease discussion. Tell him jayrider sent you.
#852 of 2372 Re: BMW X5 3.0 DEMO Lease:Negotiation advice needed for NY [jayrider]
Nov 23, 2008 (7:07 am)
Many thank jayrider...it think you are right to take a step back and relax. however, all i need to hear from someone in the forum is if this is a solid deal or just run of the mill. according to the salesman, this is a real bargain. i can't say that i see it that clearly. i lookup jvost and get opinion.
#853 of 2372 Re: BMW X5 3.0 DEMO Lease:Negotiation advice needed for NY [bmanpc]
Nov 23, 2008 (12:19 pm)
bmanpc.........a couple of thoughts.
First, the $225 "office fee" is just extra profit for the dealer. Negotiate that. You cannot negotiate the bank fee below what BMW Financial Services charges. The dealer can mark that up, but it appears they're not doing that here, so it's non-negotiable.
Is .00125 the 'buy rate' MF for this model for a 36 month lease? I think it might be .00115. If so, then the dealer is making about $8 per month extra by slightly increasing the money factor on you. So there's $300 or so over 3 years.
You have a question mark after the 56% residual figure. You need to get either the exact % or $ amount of the residual value from the dealer before you can calculate your payment. The dealer cannot arbitrarily change the residual value. That's set by BMWFS.
It's my understanding that in the state of New York the taxes are all paid up front, so it becomes hard to figure out how your $699.66 payment "including taxes" is calculated. Given the MSRP and the $49,700 price you are getting, and using that as your cap cost, and 56% as the residual %, then the pre-tax payment would be $650.15. How you add tax to that is another story.
Can you compare the $49,700 price to a new vehicle? What kind of a price could you get on a vehicle without 2500 miles on it? Maybe they've already given you a deeper discount than they would since it does have 2500 miles on it. The selling price is the only place it looks like you have any negotiating room, since it's a demo. You're getting a bit over 10% off, so it appears to me you do not have a lot of room there. I just boils down to how the dealer accounts for their "cost" on demos, and thus what kind of a deal they're willing to cut. I wouldn't look for much more than you've already got. They are running a business, and they DO need to make a little profit now and then, so you have to be realistic in your expectations. You're not going to get them to price the vehicle at $39,995..
The rest of the fees look normal.
#854 of 2372 Re: BMW X5 3.0 DEMO Lease:Negotiation advice needed for NY [billmv]
Nov 23, 2008 (5:54 pm)
billmv...WOW...you know your stuff, thank heavens for experts like you!!!!
I did look up the residual and it is 56%, but the actual # the dealer gave me is lower than the 56%. Based on his #'s he have me a 54.4% residual of #30,144, at 56% it should be #30,982. However, I have in writing a 56% #. Does this mean he is making the .015 on me or a difference of $868 total. Can the dealer play with these #'s?
I'm not looking to get the car for a dealer loss, just a fair price, so my expectations are inline.
As for taxes, my tax rate is 7.375% in NY or $1,860 over 36 months or $51.65/mo. So that computes with your $650/mo. calculation without taxes up front.
Basically, the question is where can I deal? Is it on the selling price, maybe have them "throw in" an iPod adapter, maybe a wheel/tire warranty, etc...I'm not looking to get over, but want to be assured my deal is a solid one....any more advice?
I really appreciate your input!
#855 of 2372 Is BMW's current lease offer a good deal?
Nov 23, 2008 (9:17 pm)
It seems people are paying more than bmw's current X5 4.0 lease offer. From bmw usa's website, for X5 4.0, monthly lease payments of $669.00 for 36 months based on MSRP of $60,525.00 (includes Premium Sound Package, Premium Package, Third Row Seating and Destination).
Is this a good deal?