[Thadez]

Very fortunate to get an allocation from walking into a dealer exactly two weeks ago, and it’s already setting in Carrier initiated.
2023 X740i - all black including 22” wheels with silverstone sensafin.

MSRP 90,880
Dealer gave me 2K off MSRP, and free tint.
$750.00 corporate plan discount
MF 0.00025 or sale with same APR equivalent
Debating if I should 36 month lease ($1422/month w/$5K down) or 60month finance ($1743/$5K down).

1. Assuming that deal is a good deal or should I get more?
2. I don’t have the residual at end of lease yet, I can get. But do y’all have any thoughts on X7 lease vs finance?
3. Random question, It says my 22” wheels are all seasons but I have been reading on here they don’t exist? Been trying to find cost effective winter tires but only been able to find BMW for $2500 installed.

We have been debating giving up our AMG GLE 53 in the first place but with a growing family seems like a good switch, also less problems down the line. Any other questions or comments - I am not the biggest expert with this stuff and just want to make sure im not missing anything.

Thanks all!!

[Saejin]

Hmmm. Can only speak to finance here, but something is off.

$90880 MSRP
$2000 discount
$5000 down payment
$83880 is the total
$5871 for tax if your rate is 7%
$89751 is total financed

At an APR of 4.5% your payment on a 60 month loan would be - $1673
To get to $1743 that means the APR is around 6%. I’d walk away from that loan.

I assume you’re gonna trade in your GLE. Does your state give you a tax credit on the trade in. Also, are you getting an equity on the trade in to put towards the X7.

Not really enough info here to figure things out for sure, but…

Lease if you don’t drive it very much and think you’re gonna want a new car in a few years down the road.
Buy if you put a ton of miles on your car each year.

[Thadez]

MSRP - 90,880
Rebate - 750
Discount -2000
Adjusted price 88,130
Per a Plate 395.00

Total purchase - 88,525
Trade allowance (lease trade in so no tax benefit) - 70,000
Trade difference - 18525
Tax - 7865.13

Title $37.20
Net price 26427
Trade pay off - 65,575
Cash down - $5,000
Balance - $87,002.34

60 months at 1,743

Does this help?

[Thadez]

Also I drive about 12K miles - but figured would have this car longer than 36 from a pure cost of ownership/depreciation perspective. Leasing is more expensive overall though I have always leased and pulled the trigger on buyout or not at the end.

[Saejin]

Go ask the dealer what the interest rate is on the loan they are proposing.

Using an online calculator I get the below.
$87002 at 60 months to get $1743 a month is 7.5%

That is extremely high even for right now. I got a rate of 4.13 last month and dealer said probably 4.99 from BMW. Other banks are offering in that range as well.

Not sure what bank your dealer is using to quote at 7.5%.

As a comparison gif you use 5% as your rate then your monthly loan payment is $1641.

Good luck.

[dimapb]

Originally Posted by Thadez

Very fortunate to get an allocation from walking into a dealer exactly two weeks ago, and it's already setting in Carrier initiated.
2023 X740i - all black including 22" wheels with silverstone sensafin.

MSRP 90,880
Dealer gave me 2K off MSRP, and free tint.
$750.00 corporate plan discount
MF 0.00025 or sale with same APR equivalent
Debating if I should 36 month lease ($1422/month w/$5K down) or 60month finance ($1743/$5K down).

1. Assuming that deal is a good deal or should I get more?
2. I don't have the residual at end of lease yet, I can get. But do y'all have any thoughts on X7 lease vs finance?
3. Random question, It says my 22" wheels are all seasons but I have been reading on here they don't exist? Been trying to find cost effective winter tires but only been able to find BMW for $2500 installed.

We have been debating giving up our AMG GLE 53 in the first place but with a growing family seems like a good switch, also less problems down the line. Any other questions or comments - I am not the biggest expert with this stuff and just want to make sure im not missing anything.

Thanks all!!

The MF offered to you is marked up. The current November MF on X7 is .0021 and they're adding 1 point on top. You should try to get the BMW buy rate. If you're doing a 12K miles/yr lease, the residual is 52%. There are plenty of lease calculators on line. That should give you an idea of what your lease payment should be. Good luck

[Thadez]

Thanks all! Two more questions.
1. Is the car a good value at MSRP if I get a separate loan from my bank around 5%. I was impressed as $2K off MSRP + tint seems good
2. Still any thoughts on leasing vs buying?

[streborx]

There are many online calculators that produce lease versus buy financials. If your objective is to minimize your monthly outlay, leasing is likely your best route. If eventual ownership is your priority, go with financing its purchase.

You also asked about tires being "all season". Ask the dealer what the vehicle is equipped with and lookup the tire at tirerack.com. If the tires are Pirelli or Continental runflats, they're probably performance tires that are summer rated.

[toddwalton]

Both.

Lease for the first 3 years, pause to decide, then buy and keep for the next 3.

Gives you the flexibility to a) get out if you don't love the car, b) get out if new lease deals go back to the way they were, or c) keep the car if the residual is a better deal and/or lease deals get worse and/or the 2026's aren't attractive.

This is what I did, albeit inadvertently. My 2019 40i 36/36 lease was $899 a month with $8K down and the same car in 2022 was going to go up to $1,300. So we bought it for $47K and are waiting for lease deals to reappear in the next 2-3 years.

[streborx]

Originally Posted by toddwalton

Both.

Lease for the first 3 years, pause to decide, then buy and keep for the next 3.

Gives you the flexibility to a) get out if you don't love the car, b) get out if new lease deals go back to the way they were, or c) keep the car if the residual is a better deal and/or lease deals get worse and/or the 2026's aren't attractive.

This is what I did, albeit inadvertently. My 2019 40i 36/36 lease was $899 a month with $8K down and the same car in 2022 was going to go up to $1,300. So we bought it for $47K and are waiting for lease deals to reappear in the next 2-3 years.

No doubt about it -- volatile market prices due to supply chain and "transitory" inflation make anticipating the situation 3 years out impossible. Sometimes you win, sometimes you lose.

[Thadez]

Thanks all,

Yes was passing my mind lease to buy. There are no real disadvantages of this is there? Just shift cash to later etc.

[BMWFantastic85]

Originally Posted by streborx

No doubt about it -- volatile market prices due to supply chain and "transitory" inflation make anticipating the situation 3 years out impossible. Sometimes you win, sometimes you lose.

Supply chain issue looks like it will persist for many years, we’re also in the phase of de-globalizing which means parts will be expensive, keeping build costs pretty high. Plus looks like the custom-order model is here to stay, keep the lots lean, margins fat.

[NGT2]

Originally Posted by BMWFantastic85

Supply chain issue looks like it will persist for many years, we’re also in the phase of de-globalizing which means parts will be expensive, keeping build costs pretty high. Plus looks like the custom-order model is here to stay, keep the lots lean, margins fat.

Talking to an acquaintance that owns a Lexus dealer, he said he loves the current supply model. No carry over inventory and a bunch of waiting lists. But he said he thinks the manufacturers will go back to the old supply and full lots when they can, in his opinion. Dealers carry the risk on inventory sitting around. Different brand, but also a high end import. Just thought I'd offer that perspective.

Interesting thought on deglobalization. Hadn't thought of that angle.

Rates will fall and the demand will slow. Frankly, there are two things hanging out there that make me nervous:

1 - US recession: as more and more people become convinced a big one is coming, I'm actually becoming more open to the idea the Fed may come close to threading that needle. We shall see. Still too much money in the system.

2 - Global financial crisis sparked by China economic disaster: I only become more concerned about this with each quarter that passes. They are in trouble and they are showing signs that they know it. They have a population problem and a problem with all the real estate they've overdeveloped.

In 2019 we knew how the world worked. Then it didn't. That's extreme. But my point is, shit happens.

One way or another, I think we will have a more familiar car market in 3-5 years. Maybe sooner, frankly.

[AlteBMW]

The dealer here is marking up the money factor for lease as noted above. BMWFS November purchase rate for top tier appears to be 4.59%. I don't know if Canada rates the same as US though.

[streborx]

Originally Posted by NGT2

Talking to an acquaintance that owns a Lexus dealer, he said he loves the current supply model. No carry over inventory and a bunch of waiting lists.

Somewhat near sighted perspective by your acquaintence IMO. Selling everything received without any costs of on-lot inventory is great. But last I checked Lexus was at the bottom (14th) in luxury SUV sales of its LX. I'm driving an X7 today because the best the Lexus dealer could offer me was whatever vehicle he received 6 to 12 months out -- longer if I wanted to be picky about color, options, etc. Lexus is losing market share, but maybe they don't care. Just as well -- the LX's new cockpit design is terrible IMO.

[Saejin]

Lexus, what. Stopped by a dealer about two months ago and they had nothing in the SUV size I wanted or even could look at for 9-12 months. So if he likes the current supply model, then he must not like getting paid. Not sure what commissions are for car sales, but if there are no cars to sell then there are no commissions. I get they may have a pipeline of orders, but that is not guaranteed nor isn’t on par with the volume they had before. Plus with most selling at or over MSRP, I’m sure commission plans have changed.

The current supply model with lack of inventory pushes buyers to do orders. If buyers start to just do orders online, then why do dealers need a commission based sales staff. The SA I bought my X7 from doesn’t work on commission, he’s salary based probably with a bonus tied to quota.

Most of the deals I saw being made the day I picked my X7 up were customer orders. And with orders they could get the exact options they wanted. SAs we’re saying 3-6 months out and most we’re happy to wait. Buyers today just have to plan better. No more waking up one day and heading out on the weekend to pick up a new car that doesn’t match exactly what you want most of the time.

And back on Lexus…most of their cars are not even at the same level as other luxury brands. My buddy has two of them and they are very reliable, but very unemotional things to drive.

[MystroX5]

Lexus isnt even in the same zip code as the top tier BMW vehicles. Even when you get down into the 3 series, the BMW is still the standard of the class. My wife cross shopped Lexus even though she is a Audi girl and came away buying a A4 and never looking at the brand again. Her words..."The Lexus felt cheap and more like a over priced Honda".

[Saejin]

Originally Posted by MystroX5

Lexus isnt even in the same zip code as the top tier BMW vehicles. Even when you get down into the 3 series, the BMW is still the standard of the class. My wife cross shopped Lexus even though she is a Audi girl and came away buying a A4 and never looking at the brand again. Her words..."The Lexus felt cheap and more like a over priced Honda".

Overpriced Toyota!

Same way I feel about Acura…overpriced Honda. But the new Type S versions are interesting.

[NGT2]

Haha wow. I didn't mean to start a Lexus thread. BMW is absolutely a different class. The GX had cheap interior. It is a dated model and being redone soon, so not even referencing that. Just the interior ingredients felt cheap. Lots of plastic. But is a $60k full size SUV, not $75-100k like an X5/X7. So you get what you get. Also Lexus GX and LX are built for off road capability. I still think it's funny how popular they are for pavement only driving in the south.

I don't disagree with you guys. And I think, to be fair, he would prefer to have better lead times. They're demand is all there, so sales is reflective of supply turnaround. I think he just meant that he's rather turn inventory around in the same month than have 100 cars sitting there for a couple months. I think somewhere in the middle would be his preference.

Again, I'm not going to argue for Lexus over BMW. I bought a 5 series and never even looked at the ES. I traded a '22 GX for a '21 X7. No need to tell me about who is better.

Lexus serves a purpose and a market. Different than the BMW market and purpose. Lexus sedans are a very comfortable and reliable ride with no souls and just enough luxury to make you feel a class about generic. BMW is totally different.

[Sensibletom]

Originally Posted by Saejin

Lexus, what. Stopped by a dealer about two months ago and they had nothing in the SUV size I wanted or even could look at for 9-12 months. So if he likes the current supply model, then he must not like getting paid. Not sure what commissions are for car sales, but if there are no cars to sell then there are no commissions. I get they may have a pipeline of orders, but that is not guaranteed nor isn’t on par with the volume they had before. Plus with most selling at or over MSRP, I’m sure commission plans have changed.

The current supply model with lack of inventory pushes buyers to do orders. If buyers start to just do orders online, then why do dealers need a commission based sales staff. The SA I bought my X7 from doesn’t work on commission, he’s salary based probably with a bonus tied to quota.

Most of the deals I saw being made the day I picked my X7 up were customer orders. And with orders they could get the exact options they wanted. SAs we’re saying 3-6 months out and most we’re happy to wait. Buyers today just have to plan better. No more waking up one day and heading out on the weekend to pick up a new car that doesn’t match exactly what you want most of the time.

And back on Lexus…most of their cars are not even at the same level as other luxury brands. My buddy has two of them and they are very reliable, but very unemotional things to drive.

Yep, that's the perfect way to describe a Lexus. I think you nailed my feelings about Lexus cars and SUV's. They are very unemotional cars to drive.

[NGT2]

Originally Posted by Sensibletom

Yep, that's the perfect way to describe a Lexus. I think you nailed my feelings about Lexus cars and SUV's. They are very unemotional cars to drive.

Soulless. And more than that, my previous Z71 Tahoe rode better and sucked less gas than the GX. We should've tested it. Wife was locked in on it, she had a really difficult year in '21. So I just called our guy in Dallas and bought it sight unseen. I was immediately disappointed. She eventually admitted she was as well. Luckily, demand allowed me to get almost all my value back (traded for $1,000 under MSRP, which is what I'd paid). Same dealer owns a BMW store and had the '21 X7. Made the deal and they drove up and switched them out. Immediate satisfaction! The X7 is a JOY to drive.

[crackerjack15]

Why would you ever put money down on a lease? If you total the car you loose that money. And don't say to lower the payment, because you are not lowering the payment. Your simply paying it up front.

And why don't people check with credit unions? My local credit union is 2.99% for 60 months.