09-05-2018, 12:16 PM | #1 |
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2019 X5 Lease Quote Received
Guys - I just received a lease quote of $817 per month for 10k a year and 36 months and $7000 drive off. Want to know what you guys think of this lease, base on the car spec out below.
Base X5 xDrive40i $60,700 ZMP - M Sport Package $5,850 ZPK - Parking Assistance Package $700 ZPP Premium Package $2,050 2NHM Sport Break - $650 2HA - Front and read heat - $350 5az - Lazer Light - $1000 ZMP - Wheel Upgrade 22" M - $1900 Total: $73,200 + Destination |
09-05-2018, 02:11 PM | #2 | |
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1. Are they "selling" you the car for MSRP? A lot of folks on this board are getting discounts in the $2500-$3000 range at minimum (before other incentives like loyalty, Costco, etc). 2. What's the residual? The lease on my 50i at 36/10K was 59% (this is set by BMWFS every month). 3. What money factor are they using? At least for August, the base money factor was 0.00166 (this is set by BMWFS every month). A lot of dealers will try to use a higher money factor so they make more on the lease. I would not accept anything but the base money factor. 4. Does the $7000 drive off include taxes and fees? Would need to know what portion of that $7000 is going towards capital cost reduction. Whether a lease is a "good" deal really comes down to three things: (i) negotiated sale price (lower the better), (ii) residual (higher the better) and (iii) money factor (lower the better). Everything else is just math since the lease payment is simply the spread between the negotiated sale price and the residual value at the end of the lease (i.e., depreciation) plus a finance charge (i.e., the money factor). Since residual and base money factor is set in stone by BMW (at least on a monthly basis), the only thing you can really control is the negotiated sale price (at least insofar as you are negotiating a discount to MSRP outside of any incentives). I typically like dealers to give me the number just taking into account those three things because you can screw around with cap cost reductions, up front payments, etc. to get to an attractive monthly payment. There was a guy that came up with a guide to figure out whether a lease was a good deal: First you take the real monthly payment (i.e., monthly payment assuming no cap cost reduction, all taxes fees paid up front, etc.) and divide by MSRP. Next, you take that number (should be a decimal) and multiply by $10,000. If the resulting number is around $125 or lower for a luxury car at 10K miles per year or $141 or lower for a luxury car at 12K miles per year, the lease is supposed to be a good deal. Effectively, the formula tries to equalize the playing field by figuring out what you are paying for every $10,000 worth of car. For example, with my negotiated sale price of $81,510 for the 50i with an MSRP of $85,510, I was quoted a payment of $1,081 (with no cap cost reduction and me paying all fees / taxes upfront) for 36/10K. $1,081 / MSRP of $85,510 = 0.0126417962811367. 0.0126417962811367 * $10,000 = $126.41 so my lease is pretty close to being a good deal. I've leased every car that I've ever had so I am kind of a nerd when it comes to these things. Last edited by maze446; 09-05-2018 at 02:57 PM.. |
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09-05-2018, 04:26 PM | #3 |
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Another rule of thumb on leasing...never put any extra money down on a lease. Your fees at signing should be the first payment, Title/Registration, Processing fee, and Acquisition and security deposit fees (if required)....That's it. Giving them money in advance doesn't help you.
Did BMW offer any incentives in September? Loyalty or Financing, etc? |
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09-05-2018, 04:30 PM | #4 | |
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Last edited by gsanto; 09-05-2018 at 04:37 PM.. |
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09-05-2018, 05:23 PM | #5 | |
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Frankly, MSDs were a better way to use upfront money to save on the back end. On my 2015 X5 lease, the money I put down through MSDs saved me about 10% per year. Last edited by maze446; 09-05-2018 at 06:06 PM.. |
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09-05-2018, 11:15 PM | #7 |
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A few things to keep in mind:
- Costco / Fleet program has been suspended until Q1 2019 - MSD program is only available in some markets.
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09-06-2018, 08:15 AM | #8 | |
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"To qualify for this offer, the customer must: (1) Be a Costco Member by July 5, 2018; (2) Register with Costco Auto Program to receive a BMW certificate with the unique Type G offer code NEPP4317 ($500 Costco Member incentive); (3) Present their certificate to the BMW dealership at time of purchase or lease; (4) Take delivery or place a factory order on an eligible model between July 5, 2018, and October 1, 2018." |
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09-06-2018, 08:33 AM | #9 | |
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09-06-2018, 11:20 AM | #11 |
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09-06-2018, 11:22 AM | #12 | |
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09-06-2018, 12:11 PM | #13 |
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09-06-2018, 12:15 PM | #14 |
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09-06-2018, 12:21 PM | #15 |
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That seems fine correct? (or am I missing something)
FEES for NY: $2500 - includes first payment ($997), acquisition fee and DMV fees. + Taxes (~3000) + $325 Gov fee + $599 Doc fee |
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09-06-2018, 12:33 PM | #16 |
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Cap cost reductions aren't worth it on a lease with a reasonable money factor. See my example above for the numbers I ran on my lease and putting $3000 down would only save me $179 over three years. Most states have laws requiring dealers to give you a disclosure sheet that has all of the relevant numbers used to come up with the monthly payment. It's hard to say for certain whether or not the lease deal is reasonable without seeing those, but after playing around with the math a little, if the $7000 is really "drive off" then you have to be getting a discount to MSRP in the range that others are receiving.
Last edited by maze446; 09-06-2018 at 12:50 PM.. |
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09-06-2018, 12:36 PM | #17 | |
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Also, not sure what a Gov Fee is. |
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09-06-2018, 12:45 PM | #18 | |
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For the all-new 2019 BMW X5 for 36month and $73k+ MSRP car for $800 a month to drive off the lot with $7k good deal(not a single dollar more)? If everyone is an expert on lease breakdown. I think they can break the math and just said... NO is not a good deal, or YES is a good deal. |
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09-06-2018, 12:50 PM | #19 |
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09-06-2018, 12:53 PM | #20 | |
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09-06-2018, 01:19 PM | #21 | |
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09-06-2018, 01:25 PM | #22 | |
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On a second note..... This happens to me with every lease quote i post in bimmerpost. I posted my lease for 2013 640GC and i got the same lease expert actitude. For the 2016 X5M, everyone was trying to be an expert and then when i saw thier posting and thier ridiculous quotes of $1,600+ a month X5M and mine. I was just lol! Drove a 2016 X5M 10k all in for 3 years, for $1050.00 a month. Last edited by ARam; 09-06-2018 at 01:34 PM.. |
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