[TurtleBoy]

Originally Posted by x3ster

Hello all. Thinking of coming back to BMW after a small absence. Been rocking the minivan life for a bit. This X5 pricing (lease) isn't helping. I live in Durham NC area. Any thoughts? Local guys usually are tough.

This is for a 2022...Thanks ahead for any insight. Am I wrong to think these numbers suck?

Not only are they giving you a very small discount (most are nowadays) but they are putting all types of nonsense extras on there. From my quick calcs they are also marking up the MF.

You can probably do a bit better looking around or holding off for while.

[alewifebp]

Terrible deal, but may not be too terrible in the current market. But they are making up any discount with nonsense extras as others have mentioned. $99 for nitrogen? LOL!

[silverstar335]

Originally Posted by x3ster

Hello all. Thinking of coming back to BMW after a small absence. Been rocking the minivan life for a bit. This X5 pricing (lease) isn't helping. I live in Durham NC area. Any thoughts? Local guys usually are tough.

This is for a 2022...Thanks ahead for any insight. Am I wrong to think these numbers suck?

[IMG]https://i.postimg.cc/5tCZtRG9/IMG-4523.jpg[/IMG]

Let me guess, BMW of Southpoint, lol, sent you a DM.

[x3ster]

Originally Posted by silverstar335

Let me guess, BMW of Southpoint, lol, sent you a DM.

YUP! BM of Southpoint as I call it. They dont care but would have bought 4-5 bmws over the last 5 years from them. Just buy elsewhere or a different car.

Would love to pick up a car locally and why I went in the local dealership. Or guess I can get it shipped? Dealership drop off seems pretty easy these days if I can find one within a couple hundred miles for a normal price.

[x3ster]

Originally Posted by alewifebp

Terrible deal, but may not be too terrible in the current market. But they are making up any discount with nonsense extras as others have mentioned. $99 for nitrogen? LOL!

Damn it. Think ill need to find another dealership than Southpoint. Been down this road before with them. Always gets ugly. I leave all huffed up and buy from Steve Thomas. Now that Jimmy is gone im trying to buy closer to home. Dont need a 3rd performance delivery.

[KenCh]

Originally Posted by Penguino

If you are in the north east / New England area I have a good dealer that's hassle free.

Would love to get your contact. I am in the market for an X5 in the boston area.

[ajcasb]

Originally Posted by x3ster

Hello all. Thinking of coming back to BMW after a small absence. Been rocking the minivan life for a bit. This X5 pricing (lease) isn't helping. I live in Durham NC area. Any thoughts? Local guys usually are tough.

This is for a 2022...Thanks ahead for any insight. Am I wrong to think these numbers suck?

I am looking at this decision and I feel the same way. If I understand correctly, this implies depreciation and interest costs of $41k over three years on a $72k car. In this situation, what is the advantage of leasing over buying outright or financing? Does an X5 really depreciate 50% over 3 yrs? (assuming the ability to do so from a cashflow perspective)

[TurtleBoy]

Originally Posted by ajcasb

I am looking at this decision and I feel the same way. If I understand correctly, this implies depreciation and interest costs of $41k over three years on a $72k car. In this situation, what is the advantage of leasing over buying outright or financing? Does an X5 really depreciate 50% over 3 yrs? (assuming the ability to do so from a cashflow perspective)

Lease v buy is not always a financial decision. Many who lease do so because they want the latest technology/vehicles every few, always want to be in warranty, trying out a specific brand/vehicle type, etc.

As far as depreciation goes, these are unprecedented times where used car prices are through the roof but that doesn't mean we won't return to normal/even worse fairly soon. There are a number of sites out there that have the depreciation curves on the X5, I would say 50% is high but your calculations are a bit off since there are a lot of fees and extras on his deal. Your calculations are also based on what the residual value is for the lease. Currently BMWFS has it at 51% for 12K miles. They have not been, likely not needed to, boosting the RV's to make leasing more attractive.

[GrussGott]

Originally Posted by ajcasb

I am looking at this decision and I feel the same way. If I understand correctly, this implies depreciation and interest costs of $41k over three years on a $72k car. In this situation, what is the advantage of leasing over buying outright or financing? Does an X5 really depreciate 50% over 3 yrs? (assuming the ability to do so from a cashflow perspective)

I'd echo TurtleBoy that there are a lot reasons to lease beyond expected financials ... one big one is optionality and another is risk.

You can look at leasing as a pre-negotiated sale in 3 years; i.e., on day 1 the lease secures you sole-use & financial control of, say, an $80k asset, for only 1 payment, and only 1 incremental payment every month thereafter. So if the vehicle is $80,000 and the payment is $1,000 then you now have control of an $80k asset for $1k, leaving you $79k to, say, invest for a return.

So, if you decide the market is high in 6 months, you can buy out the lease & sell the vehicle no differently than had you paid $80k in cash or, worse, loan. On the other hand, if, at the end of the lease term, the market is low (or the market for **your** vehicle is low because of, say, an accident!) no problem! You've already pre-negotiated the sale of vehicle to BMWFS and they must buy it for the negotiated price, even if it's been in 20 accidents and its value is garbage.

In other words, leasing is the best mechanism for financial optionality & managing risk ...

... however that has to be balanced based on the lease terms. BMW is notoriously generous with its leases, and so usually BMWFS leasing is a great choice for anyone looking for those benefits assuming you get the "buy rate" MF and strike out needless dealership fees.

[mingdong.wang]

I just visited several dealership around San Diego and all of them are asking MSRP for a X5 45e. Am looking out of state right now to see if I can get some discounts.

[Olih923]

Hello not sure if there are dealers on the forum but I am looking to build an x5 45e or if you have existing ones (I know it's rare). Able to move quickly if the price is reasonable. Thank you!

Edit: I am in DMV area

[kwarden13]

Originally Posted by GrussGott

I'd echo TurtleBoy that there are a lot reasons to lease beyond expected financials ... one big one is optionality and another is risk.

You can look at leasing as a pre-negotiated sale in 3 years; i.e., on day 1 the lease secures you sole-use & financial control of, say, an $80k asset, for only 1 payment, and only 1 incremental payment every month thereafter. So if the vehicle is $80,000 and the payment is $1,000 then you now have control of an $80k asset for $1k, leaving you $79k to, say, invest for a return.

So, if you decide the market is high in 6 months, you can buy out the lease & sell the vehicle no differently than had you paid $80k in cash or, worse, loan. On the other hand, if, at the end of the lease term, the market is low (or the market for **your** vehicle is low because of, say, an accident!) no problem! You've already pre-negotiated the sale of vehicle to BMWFS and they must buy it for the negotiated price, even if it's been in 20 accidents and its value is garbage.

In other words, leasing is the best mechanism for financial optionality & managing risk ...

... however that has to be balanced based on the lease terms. BMW is notoriously generous with its leases, and so usually BMWFS leasing is a great choice for anyone looking for those benefits assuming you get the "buy rate" MF and strike out needless dealership fees.

I would consider $1k a pretty terrible payment on an X5 , especially a 45e. With the tax incentive factored in, your payment on a 5 year loan would be about the same. At least mine is coming out cheaper. I was quoted around $1250 to lease a BMW X5 45e with MSRP ~$75k.

Financing the vehicle, I received 3% off and $3250 penfed credit plus I will get $7500 tax credit. Financing the full amount (not accounting for the $7500) would be around $1200 with nothing down. Accounting for the $7500 would bring it down to about $1150. Either way it's about the same or cheaper to finance.

[GrussGott]

Originally Posted by kwarden13

Either way it's about the same or cheaper to finance.

First, $1k was just a rounded number (not meant as an function of actual numbers), but more importantly the first day of your loan you're exposed to 100% market risk and a full loan obligation versus a lease where you've pre-negotiated the resale no matter what the market does for only 1 payment.

In short, for BMWs, the risk-adjusted cost of leasing is almost ALWAYS cheaper than financing.

A loan is only cheaper (sometimes) if you ignore market risk ... and my 2 cents is nobody should EVER ignore market risk. Doing so is always smart until it's incredibly stupid.

Not insuring your car or house or health is also cheaper than buying insurance ... and if you've never had a problem then why not skip insurance??

[kwarden13]

Originally Posted by GrussGott

First, $1k was just a rounded number (not meant as an function of actual numbers), but more importantly the first day of your loan you're exposed to 100% market risk and a full loan obligation versus a lease where you've pre-negotiated the resale no matter what the market does for only 1 payment.

In short, for BMWs, the risk-adjusted cost of leasing is almost ALWAYS cheaper than financing.

A loan is only cheaper (sometimes) if you ignore market risk ... and my 2 cents is nobody should EVER ignore market risk. Doing so is always smart until it's incredibly stupid.

Not insuring your car or house or health is also cheaper than buying insurance ... and if you've never had a problem then why not skip insurance??

I agree with other bmws as the tax incentive is passed along or there isn’t one. However with the 45e it isn’t and if you have $7500 tax liability to use it, I don’t see how leasing could be cheaper. In CA the incentive is even larger since they have a state one on top.

[GrussGott]

Originally Posted by kwarden13

I agree with other bmws as the tax incentive is passed along or there isn’t one. However with the 45e it isn’t and if you have $7500 tax liability to use it, I don’t see how leasing could be cheaper. I’m CA the incentive is even larger since they have a state one on top.

Great point - you're right on any vehicle with a $7500 tax incentive that's not available with leasing (though I believe it used to be!), then leasing it's the right risk-adjusted choice .... though 3 years is probably still the right time to sell a 45e

[Jason]

Updated with August program rates.

[IrishSpuds]

Could someone please review the below and advise on thoughts? I don't see incentives )loyalty 500?), I was assured the rate would be tier one which I believe is mf .000930. When I punched in on leasehackr my rate seemed to be closer $1405. Much appreciated.

Edit:
Questioned the dealer on the rates and suddenly I got "the default is tier 2 but put you in at tier 1" and it's now $1441.66 monthly". Shady… Is there a loyalty for leases or no?

Thanks

[motherkin]

Originally Posted by kwarden13

I would consider $1k a pretty terrible payment on an X5 , especially a 45e. With the tax incentive factored in, your payment on a 5 year loan would be about the same. At least mine is coming out cheaper. I was quoted around $1250 to lease a BMW X5 45e with MSRP ~$75k.

Financing the vehicle, I received 3% off and $3250 penfed credit plus I will get $7500 tax credit. Financing the full amount (not accounting for the $7500) would be around $1200 with nothing down. Accounting for the $7500 would bring it down to about $1150. Either way it's about the same or cheaper to finance.

An easy rule of thumb I use for BMW leasing is the monthly payment (including due at signing) shouldn't exceed 1% of the MSRP (pre-chip shortage and for a higher volume models like the 3er and 5er).

At this time for the X5 I would say 1.3-1.4 % seems to be the norm.

[Axxlrod]

The 1% rule went out the window a while ago. Different world now.

[silverstar335]

Originally Posted by IrishSpuds

Could someone please review the below and advise on thoughts? I don't see incentives )loyalty 500?), I was assured the rate would be tier one which I believe is mf .000930. When I punched in on leasehackr my rate seemed to be closer $1405. Much appreciated.

Edit:
Questioned the dealer on the rates and suddenly I got "the default is tier 2 but put you in at tier 1" and it's now $1441.66 monthly". Shady… Is there a loyalty for leases or no?

Thanks

There is a loyalty rebate, if I am not mistaken for the M50 it is $750. If you are willing to walk away from the deal, much better numbers are possible.

[motherkin]

Originally Posted by IrishSpuds

Could someone please review the below and advise on thoughts? I don't see incentives )loyalty 500?), I was assured the rate would be tier one which I believe is mf .000930. When I punched in on leasehackr my rate seemed to be closer $1405. Much appreciated.

Edit:
Questioned the dealer on the rates and suddenly I got "the default is tier 2 but put you in at tier 1" and it's now $1441.66 monthly". Shady… Is there a loyalty for leases or no?

Thanks

Yes should be $750.
Besides zero discount, they also charing a $550 documentation fee

[IrishSpuds]

Originally Posted by motherkin

Yes should be $750.
Besides zero discount, looks that they also jacked up the dealer fee to $550

Thank You. My crappy timing has me over a barrel but the dealer has treated me well in the past with my kids car. I will punt back to them the $750 needs to be included. I tried lease hackr and bankrate and the numbers appear to be inline.