[selpo]

Originally Posted by Penguino

You know if the car is totaled those $18K are lost?

Also, your effective payment is $1888 a month.

Interesting, did not know that. I guess if he had used it for MSD’s, he will get some reduction in payment but the money will be safe, even if the vehicle gets totaled.

[Penguino]

Originally Posted by TurtleBoy

That is not correct in all circumstances. It depends on the lease contract, insurance payoff amount, current value etc. That said, it generally is not beneficial to make a down payment on a lease.

I'm not looking to have a back and forth. If you believe that, I'm OK with that. But when a vehicle is totaled, the lease is terminated. Financial responsibility ends. Contract is no longer valid. Gap insurance covers just the difference between the vehicle's value and payoff amount. The cap cost reduction amount is not reimbursed.

[Penguino]

Originally Posted by selpo

Interesting, did not know that. I guess if he had used it for MSD’s, he will get some reduction in payment but the money will be safe, even if the vehicle gets totaled.

That's the best way to do it. Maximize the MSDs.

On a lease there is no such thing as a down payment. Your effective payment will always be the same so it's better to mitigate the risk and try to no put money down other than taxes, MSDs and possible other inception fees.

[TurtleBoy]

Originally Posted by Penguino

I'm not looking to have a back and forth. If you believe that, I'm OK with that. But when a vehicle is totaled, the lease is terminated. Financial responsibility ends. Contract is no longer valid. Gap insurance covers just the difference between the vehicle's value and payoff amount. The cap cost reduction amount is not reimbursed.

It is not a matter of believing it but rather a matter of fact. If the insurance payout is greater than the residual value plus the remaining lease payments then the lessor will return any overage to the lessee unless it is specifically written into the lease contract that the lessor will receive and retain all proceeds from the insurance payout. This way the lessor is not unjustly enriched since they are only owed the residual amount and lease payments.

[Penguino]

Originally Posted by TurtleBoy

It is not a matter of believing it but rather a matter of fact. If the insurance payout is greater than the residual value plus the remaining lease payments then the lessor will return any overage to the lessee unless it is specifically written into the lease contract that the lessor will receive and retain all proceeds from the insurance payout. This way the lessor is not unjustly enriched since they are only owed the residual amount and lease payments.

You are welcome to believe that.

[Alan l.]

Originally Posted by TurtleBoy

That is not correct in all circumstances. It depends on the lease contract, insurance payoff amount, current value etc. That said, it generally is not beneficial to make a down payment on a lease.

Correct. If he did it right that 18K would come out to taxes, fees plus max MSD.

[dds007]

Originally Posted by Penguino

You know if the car is totaled those $18K are lost?

Also, your effective payment is $1888 a month.

I never did understand lease numbers. 🤷🏻*♂️lol

[dds007]

I could only wish I could bring one of you guys with me on my next purchase. 🤗

[Penguino]

Originally Posted by dds007

I could only wish I could bring one of you guys with me on my next purchase. 🤗

This is a forum full of people willing to help. Just open a thread to have your deal rated before signing.

[///Armin]

Originally Posted by dds007

I could only wish I could bring one of you guys with me on my next purchase. 🤗

It's honestly much easier than you think, you just need to know your numbers (BMW's monthly money factor & typical discount on that car and special incentives for that month) and have that lease calculator ready to show them when in the dealership ready to negotiate, once they know that you know what a money factor is in the first place and what BMW's rate is for the month and that you know a typical discount on the car, they go a completely different direction. Most of my deals have taken maybe 10 mins to close, some were just finalized over the phone before even going in.

Not every dealer is going to give everyone a good deal, some just honestly dont' care if they lose a customer, it comes down to the sales manager and their willingness to do the deal. I have 4 dealers near me, I call all of them each time I'm leasing and give them the numbers and go with whoever gives me the absolute best deal.

[///Armin]

Originally Posted by Alan l.

If you want the best deal on these cars you are going to have to wait a few months. The low inventory isn't helping buyers get those 10% percent off deals. If you look at most dealers across the US most of them have maybe 1 or 2 X5M HEA cars in stock. Pre covid lock down you can get 11% off a regular X5 but now dealers are sticking to about 6% off. I've had two other friends shop and both of them couldn't get above 6% off. The sales guy flat out said he can't get enough X5s to sell after the factory shut down and all of the builds either got backed up or cancelled. I suspect once inventory builds back up and dealers starts filling up with 2021 models you will see these 2020 go for a much bigger discount but that is not happening right now given the unique series of events.

Alan

Is that for regular X5s or X5Ms? I can see that for the regular X5s being true, in that case, it's good to wait a few months. But in terms of X5Ms, there is a limited pool of buyers typically for these cars, dealers may be willing to be more aggressive on these.

[Alan l.]

That's for both the regular X5 and the X5M.

For the X5M theres two things working against the buyer now.

1) its a brand new car
2) limited stock

Most dealers either doesn't have one or if they do have maybe 1-2 at most in stock which are the HEA builds. If anyone wants one they either have to buy a hea car or wait until 2021MY which doesn't start until August. You are looking at maybe getting the car in Sept/Oct if you walked in to order one now at best. For those that need/want a car now you are limited to either the HEA cars or anyone that cancelled on their custom 2020 builds. You can not order a 2020 anymore based on what several dealers told me.

For these reasons dealers aren't willing to sell these cars at a massive reduction just yet. Once supply catches back up things will change and put the leverage back at the consumers hands but I suspect that won't happen for atleast a few more months. Every bmw dealership i've spoken to said they've been busier than usual.

For general reference since i just went through all this I've had several dealers tell me the max is 1% off to about 10% off which was specific to just a black one that they had in stock. MBB was a must have for me and i landed on 6% off before any incentives (1K for loyalty and $1500 for the 2 months payment). I went with a car that was further out (2.5 hour drive) but the sales manager was easiest to deal with and her numbers matched mine without playing any games. The car also only has 15miles on the odometer and still had the factory wrapping around it. Most cars that just came in have some test drive miles on them which I don't prefer. The only thing I wish was that it had the Michelin tires instead of the Pzeros that i got.

[Kukushka]

Just got custom build x5M50 custom build, happy with the car,
91.2k car 10/36 $910 a month, 7 MSDS, $4500 total DAS.

[Penguino]

Originally Posted by Kukushka

Just got custom build x5M50 custom build, happy with the car,
91.2k car 10/36 $910 a month, 7 MSDS, $4500 total DAS.

$4500 + 7 MSDs?

[selpo]

Originally Posted by selpo

Posted this in the sticky thread about lease rates as well:
New member here, appreciate the collective wisdom and knowledge in this forum!
Coming from MB and Audi, thinking about getting a BMW next. Prefer a compliant ride but also want to experience a performance vehicle, so planning on leasing a X5MC.
Here are a couple of lease quotes I got from nearby dealers in Houston, Texas.
15k miles per yr/ 36 months.
Quote 1
Selling price- $123795.00 ( No discount)
Residual - 53%
MF- .00158 ( 3.792% APR)

Initial payment: $2500 ( First month payment and fees)
Monthly payment- $2192.61

Quote 2
Selling price- $119800 ( 3.2% discount)
Residual - 53%
MF- .00118 ( 2.832%APR)
Acquisition fee- $925
TTL and Doc fees- $335.00
Monthly payment-$2176.00
Initial payment- $2176.00

My credit score is 830+.

I ran the numbers for the second quote thru multiple online calculators and monthly payments are supposed to be about $1830-1861, what am I missing?
I did not look further into the first quote due to no discounts and jacked up MF.

Both are for 2021 custom order for a X5MC with Driving assistance, Executive pkg and B&W.

Thank you and Looking forward to your opinions.

Update- Dealers were asking for stupid money, decided on getting a M5 non comp at 8% off with base MF of .00118, appreciate all you guys/gals! Will post in the m5 forum once I receive the car.

[///Armin]

Originally Posted by selpo

Update- Dealers were asking for stupid money, decided on getting a M5 non comp at 8% off with base MF of .00118, appreciate all you guys/gals! Will post in the m5 forum once I receive the car.

That's more like it

[DCCane]

Anyone think dealers will do 10-12% off (pre incentive(s)) with base MF in the coming months (ie November or before) or is that just wishful thinking on my part?

[Oswiff]

Was offered 4% for an x5m non-comp. One of the first non comps I've seen.
I tried for a bit more but they wouldn't budge.
They were doing buy rate on MF so that's a bonus.

[phillydilles]

Painful discount, but a recent quote I got on a highly optioned X5MC custom build.

[Hunter399]

Originally Posted by phillydilles

Painful discount, but a recent quote I got on a highly optioned X5MC custom build.

How are taxes $118?

[TurtleBoy]

Originally Posted by Hunter399

How are taxes $118?

It is a lease so the taxes are paid monthly. I would guess the $118 is the tax on the rebates/incentives.

[phillydilles]

Originally Posted by TurtleBoy

It is a lease so the taxes are paid monthly. I would guess the $118 is the tax on the rebates/incentives.

That's correct and the tax would be an additional 9% for PA on top.

Starting to approach exotic lease territory with those numbers!