[ARam]

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

[maze446]

Originally Posted by ARam

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

A handful of questions on this:

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.

[gsanto]

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?

[gsanto]

Originally Posted by maze446

A handful of questions on this:

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.

I like that lease rule of thumb...easy to do.

[maze446]

Originally Posted by gsanto

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.

1000% agree. As an example, if I put $3000 down as a cap cost reduction on my lease, it would save me a total of $179 over the life of the lease. Basically a return of a little under 2% per year on the $3000. You can earn the same amount by opening an online saving account and depositing the $3000. At least then you would have access to it and it wouldn't be sitting in BMW's coffers.

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.

[MikeElmendorf]

Also curious about money factor quoted.

[JayPichardo]

A few things to keep in mind:

- Costco / Fleet program has been suspended until Q1 2019

- MSD program is only available in some markets.

[maze446]

Originally Posted by NH_F36

A few things to keep in mind:

- Costco / Fleet program has been suspended until Q1 2019

Where did you get your info regarding the Costco program? I just got a $500 incentive from them that's good so long as a factory order is placed prior to 10/1. This is the eligibility for the incentive I got:

"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."

[JayPichardo]

Originally Posted by maze446

Where did you get your info regarding the Costco program? I just got a $500 incentive from them that's good so long as a factory order is placed prior to 10/1. This is the eligibility for the incentive I got:

"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."

See signature

[MikeElmendorf]

NH -

Can you tell me what the money factor should be at this point?

[ARam]

Originally Posted by MikeElmendorf

NH -

Can you tell me what the money factor should be at this point?

I don't have the exact MF but they did say loyal as i'm a BMW buyer for the last 15 years... As for drive off! That mean cap cost, Tax title, and everything to drive off the lot.

[ARam]

Originally Posted by maze446

A handful of questions on this:

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.

I don't have the exact details but I just told them my comfort # and there was a little of negotiation until I told them what I can afford... The $7000 includes every fee including cap cost reduction, tax and tittle. And Multiple security deposit is not allow in NY.

[maze446]

Originally Posted by NH_F36

See signature

Ah.....signature didn't come up on my phone.

Apparently nobody told Costco because they still have the incentive available.

[maze446]

Originally Posted by MikeElmendorf

NH -

Can you tell me what the money factor should be at this point?

I reverse engineered the money factor based on the 2019 X5 lease deals on BMW's website and it is 0.00166 (same as August).

[djarvik]

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

[maze446]

Originally Posted by ARam

I don't have the exact details but I just told them my comfort # and there was a little of negotiation until I told them what I can afford... The $7000 includes every fee including cap cost reduction, tax and tittle. And Multiple security deposit is not allow in NY.

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.

[gsanto]

Originally Posted by djarvik

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

State taxes should be rolled into cost of the lease not paid upfront.

Also, not sure what a Gov Fee is.

[ARam]

Originally Posted by maze446

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 whether or not the lease deal is reasonable without seeing those.

All of these comments are like Rocket Science talk to me... Everyone should stop acting like everyone is an expert. My question is simple.

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.

[gsanto]

Originally Posted by maze446

Ah.....signature didn't come up on my phone.

Apparently nobody told Costco because they still have the incentive available.

Hmm...I have a certificate as well. So you are telling me when I go in to place an order they are going to LoL and tear it up?

[maze446]

Originally Posted by ARam

All of these comments are like Rocket Science talk to me... Everyone should stop acting like everyone is an expert. My question is simple.

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.

I edited my last post after playing around with the math and it seems like it's a decent deal if the $7K covers all taxes, fees, etc. and whatever is left over goes to cap cost reduction. Sorry, but I'm just the type of person that likes to have as many facts as possible before giving my opinion on whether or not something is a good deal.

[djarvik]

Originally Posted by maze446

I edited my last post after playing around with the math and it seems like it's a decent deal if the $7K covers all taxes, fees, etc. and whatever is left over goes to cap cost reduction. Sorry, but I'm just the type of person that likes to have as many facts as possible before giving my opinion on whether or not something is a good deal.

Can you do the same for me if I provide numbers?

[ARam]

Originally Posted by maze446

I edited my last post after playing around with the math and it seems like it's a decent deal if the $7K covers all taxes, fees, etc. and whatever is left over goes to cap cost reduction. Sorry, but I'm just the type of person that likes to have as many facts as possible before giving my opinion on whether or not something is a good deal.

Thanks! Finally, someone answered, without trying to show off he's a genius on lease program. And yes 7K covers everything to drive off the lot. Do you think there's any more room to get this down?

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.