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      11-18-2020, 03:53 PM   #1
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Some questions about leasing.

Hi all,
I have not leased a car before and wanted some insight from this forum.
I recently received an email from a local dealer in my area and they offered me to trade in my current X5 35i (2015 AWD) for a 2020 X5 40i.
Looks like my current car is worth around $23-25k. (idk how much the dealer will offer for the car)

They are offering the 2020 X5 with $0 cash out of pocket along with Receiving $5,000 toward the new vehicle.
Two offers including:
1. $1,000 BMW Loyalty Credit.
2. $4,000 BMW Preferred Customer Bonus.

I've looked at their inventory lot for the X5 and the price ranges are around $63 - $72k depending on the specs.

I guess my question is are the two offers from the dealer a good starting point to negotiate more down on a lease?

I have not looked into the MF factors or what the residuals are yet.

Inputs would be greatly appreciated!
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      11-18-2020, 04:12 PM   #2
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Quote:
Originally Posted by JK READY View Post
Hi all,
I have not leased a car before and wanted some insight from this forum.
I recently received an email from a local dealer in my area and they offered me to trade in my current X5 35i (2015 AWD) for a 2020 X5 40i.
Looks like my current car is worth around $23-25k. (idk how much the dealer will offer for the car)

They are offering the 2020 X5 with $0 cash out of pocket along with Receiving $5,000 toward the new vehicle.
Two offers including:
1. $1,000 BMW Loyalty Credit.
2. $4,000 BMW Preferred Customer Bonus.

I've looked at their inventory lot for the X5 and the price ranges are around $63 - $72k depending on the specs.

I guess my question is are the two offers from the dealer a good starting point to negotiate more down on a lease?

I have not looked into the MF factors or what the residuals are yet.

Inputs would be greatly appreciated!
You have plenty of room to negotiate since both the incentives are through BMW and take no money out of the dealers pocket, I would look at 10-12% off the MSRP before the incentives are factored in, they're motivated to get remaining 20's off the lots so your in a good spot to deal. Also the current market for used cars is very strong so you should get a decent trade in amount
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      11-18-2020, 07:41 PM   #3
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My advice would be to ignore those offers (they should be taken after the dealer discount) as well as your trade-in and first negotiate the selling price of the vehicle. Once you are comfortable with that (in your area you probably should shoot for 10-12% off) then discuss what incentives are available, additional fees, MF (should be at base rate) and residual. Then ask them what they will give you for your trade. Once you have all of those numbers then a lease payment can be calculated and you can make your decision.

The Edmunds forum is the best place to get information on MFs,RVs and available incentives since they will give you the information specific to your area.

https://forums.edmunds.com/discussio...and-prices/p30
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      11-18-2020, 08:02 PM   #4
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Quote:
Originally Posted by JK READY View Post
Hi all,
I have not leased a car before and wanted some insight from this forum.
I recently received an email from a local dealer in my area and they offered me to trade in my current X5 35i (2015 AWD) for a 2020 X5 40i.
Looks like my current car is worth around $23-25k. (idk how much the dealer will offer for the car)

They are offering the 2020 X5 with $0 cash out of pocket along with Receiving $5,000 toward the new vehicle.
Two offers including:
1. $1,000 BMW Loyalty Credit.
2. $4,000 BMW Preferred Customer Bonus.

I've looked at their inventory lot for the X5 and the price ranges are around $63 - $72k depending on the specs.

I guess my question is are the two offers from the dealer a good starting point to negotiate more down on a lease?

I have not looked into the MF factors or what the residuals are yet.

Inputs would be greatly appreciated!
Is this from BMW or dealer is throwing bonus on 2020 model?

$4,000 BMW Preferred Customer Bonus.
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      11-18-2020, 10:33 PM   #5
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Quote:
Originally Posted by TurtleBoy View Post
My advice would be to ignore those offers (they should be taken after the dealer discount) as well as your trade-in and first negotiate the selling price of the vehicle. Once you are comfortable with that (in your area you probably should shoot for 10-12% off) then discuss what incentives are available, additional fees, MF (should be at base rate) and residual. Then ask them what they will give you for your trade. Once you have all of those numbers then a lease payment can be calculated and you can make your decision.

The Edmunds forum is the best place to get information on MFs,RVs and available incentives since they will give you the information specific to your area.

https://forums.edmunds.com/discussio...and-prices/p30

I appreciate your post! I will update once I speak with the dealer
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      11-18-2020, 10:34 PM   #6
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Quote:
Originally Posted by EasternLI View Post
You have plenty of room to negotiate since both the incentives are through BMW and take no money out of the dealers pocket, I would look at 10-12% off the MSRP before the incentives are factored in, they're motivated to get remaining 20's off the lots so your in a good spot to deal. Also the current market for used cars is very strong so you should get a decent trade in amount
Thank you for the comment, I will update this post once I speak with the dealer.

Cheers!
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      11-18-2020, 10:35 PM   #7
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Quote:
Originally Posted by Infosec View Post
Is this from BMW or dealer is throwing bonus on 2020 model?

$4,000 BMW Preferred Customer Bonus.
This is directly from the manager from the dealership on a 2020 Model
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      11-19-2020, 02:01 PM   #8
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I read it as 4K discount off MSRP. depending on the build/ msrp it could be a terrible discount,


it is just just like dealer language specific to their store.

but yeah,,, you are missing a lot of key information. see suggestion above for what to request.
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      11-19-2020, 02:45 PM   #9
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+1 what other said above.

I confirmed with my SA on 2020 corporate discount. There is nothing from BMW on 2020. Here is what my SA said last night.

From what I can see, a so-called "Customer-preferred bonus" is a fancy way of saying "dealer discount".

Just to add - for 2021 model you can get 10% easily. IMO, others can disagree with me - for 2020 model start with at least 14-15% of MSRP + Rebates + Incentive etc what you qualify for.
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      11-19-2020, 03:24 PM   #10
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Quote:
Originally Posted by Infosec View Post
+1 what other said above.

I confirmed with my SA on 2020 corporate discount. There is nothing from BMW on 2020. Here is what my SA said last night.

From what I can see, a so-called "Customer-preferred bonus" is a fancy way of saying "dealer discount".

Just to add - for 2021 model you can get 10% easily. IMO, others can disagree with me - for 2020 model start with at least 14-15% of MSRP + Rebates + Incentive etc what you qualify for.
Can you be more specific on the 21 models to get 10% off? I'm going into the dealer to see what they will offer for the 20 models as well as 21 models.
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      11-19-2020, 05:06 PM   #11
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Quote:
Originally Posted by JK READY View Post
Can you be more specific on the 21 models to get 10% off? I'm going into the dealer to see what they will offer for the 20 models as well as 21 models.
10% of MSRP + Applicable rebates and incentives at the time of delivery.
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      11-23-2020, 11:16 AM   #12
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Update.
Went into the dealer and received offer.

X5: 2021 sDr40i
Color: Alpine White
M Sport Package, Premium Package,Parking Assistant Plus

MSRP: 71,645
Discount: 4,000
Total Rebate: 1,500
Total Cash and Rebates: 5,500
Cash Down: 4,000
MF: 0.00225 (San Diego)?
Residual: 38,688.30, 53%
Lease Term: 36
Mileage: 10,000
Payment: $947.39

After calculation, this is roughly only 5.6% off MSRP for a 2021. Pretty crappy deal after hearing people are able to get 10-12%. The advisor was a little hesitant when I asked about the MF and said 0.00225...

Maybe there will be better deals in December.

I'll be asking other quotes from other dealers and will update.
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      11-23-2020, 11:46 AM   #13
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I'd highly recommend a broker. As others have mentioned you can get 10% off MSRP right now, no "cash down," but you can pay a security deposit and it will drop your rate even more. Multiple security deposits are different from "cash down" - you don't get the cash down back! If you need a recommendation let me know.
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      11-23-2020, 12:11 PM   #14
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Quote:
Originally Posted by Infosec View Post
Just to add - for 2021 model you can get 10% easily. IMO, others can disagree with me - for 2020 model start with at least 14-15% of MSRP + Rebates + Incentive etc what you qualify for.
I wouldn't say that getting 10% off (before incentives) a '21 X5 xDr40i is 'easy'. These vehicles are very much in demand right now - hard to even get an allocation. I'm sure if you're in the right area or are willing to put in the work, you can get to 10%.
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      11-23-2020, 12:33 PM   #15
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Quote:
Originally Posted by DBLDNon11 View Post
I wouldn't say that getting 10% off (before incentives) a '21 X5 xDr40i is 'easy'. These vehicles are very much in demand right now - hard to even get an allocation. I'm sure if you're in the right area or are willing to put in the work, you can get to 10%.
I'm on the west coast where dealers give only 3-4% and do favor to you selling BMW car. My original order was no longer valid (long story) and on the weekend I have 3-4 dealers lined up from 10-10.6% before December rebates and incentives (since I'm planning to lock Dec for 90 days).

Took me a few emails and straight to the point. You need to know what you are doing and need to understand how lease work. Great refresher on leasehackr forum and their calculator.

In the east coast - 12% is easily with some of the volume dealers.
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      11-23-2020, 02:21 PM   #16
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the 4k; its a discount that comes from the dealer off MSRP. its not a BMWFS incentive.

2020 x5
sdrive40i 1000 lease credit 1000 loyalty
xdrive40i 500 lease credit 1000 loyalty
M50/50i 1500 lease credit 1000 loyalty
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      11-23-2020, 07:41 PM   #17
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Don't believe the hype when the dealers tell you these cars are in high demand. BMW USA sales down 16% in August and 18% in September year over year. October not yet available but I will bet it's at least 20 percent down .


There was a legitimate supply shortage in June and July with plant closings and folks emerging from lock down.


You need to work to get the 10 plus percent off pre incentive. If leasing do not accept a marked up money factor and don't make any capital cost reductions.

Email at least 10 dealerships and run a reverse auction. Refuse to go to any dealership in person until they meet your terms. Get everything in writing and recalculate all numbers they supply on leasehackr or with edmunds.

The key is if you don't need a car ASAP and are willing to invest a bit of time. Good luck.
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      11-23-2020, 09:04 PM   #18
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Quote:
Originally Posted by njguy View Post
Don't believe the hype when the dealers tell you these cars are in high demand. BMW USA sales down 16% in August and 18% in September year over year. October not yet available but I will bet it's at least 20 percent down .


There was a legitimate supply shortage in June and July with plant closings and folks emerging from lock down.


You need to work to get the 10 plus percent off pre incentive. If leasing do not accept a marked up money factor and don't make any capital cost reductions.

Email at least 10 dealerships and run a reverse auction. Refuse to go to any dealership in person until they meet your terms. Get everything in writing and recalculate all numbers they supply on leasehackr or with edmunds.

The key is if you don't need a car ASAP and are willing to invest a bit of time. Good luck.
Enough said

Fake demand increased by Covid. One of the posters here mentioned that NY dealers told him people are fleeing NY due to covid that's why demand is so high........ and they need special luxury cars to flee in..LMAO. fucking hilarious.
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      11-23-2020, 09:19 PM   #19
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Quote:
Originally Posted by njguy View Post
Don't believe the hype when the dealers tell you these cars are in high demand. BMW USA sales down 16% in August and 18% in September year over year. October not yet available but I will bet it's at least 20 percent down ..
I don't know whether your numbers are correct or not, it really doesn't matter as far as the X5 pricing is concerned. For the quarter ending in September the US sales of X5s were up year over year, 12,665 to 12,830.

Name:  Screen Shot 2020-11-23 at 7.16.23 PM.png
Views: 178
Size:  160.7 KB

https://carsalesbase.com/us-bmw-x5/


As an aside, where are you getting the monthly numbers from. Starting with 2020, BMW joined other manufactures in only releasing quarterly sales.
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      11-23-2020, 09:56 PM   #20
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Here from the official press release.

https://www.press.bmwgroup.com/usa/a...-sales-results

Woodcliff Lake, NJ – October 1, 2020… BMW of North America announced today Q3 2020 sales results for the BMW and MINI brands in the U.S. For the quarter ending September 30, 2020, BMW brand sales totaled 69,570 vehicles, a decrease of 16.2% vs the 83,003 vehicles sold in the same time period last year.* MINI brand sales totaled 9,064 vehicles in Q3, a decrease of 11.9% vs the 10,292 vehicles sold in the same time period last year.*


End of the day quarterly numbers don't matter. due to covid, SC factory had a layoff, lines were shut down, and supply chain issues which directly hikes up the demand. You will see that corrected in Q1 21 when new cars will be sitting on the lot.

The dealer I was working with couldn't sell 2020 X5, he has close to 9 but that fucking retard sold my 2021 X5..LOL.
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      11-23-2020, 10:02 PM   #21
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Quote:
Originally Posted by Infosec View Post
End of the day quarterly numbers don't matter. due to covid, SC factory had a layoff, lines were shut down, and supply chain issues which directly hikes up the demand. You will see that corrected in Q1 21 when new cars will be sitting on the lot.

The dealer I was working with couldn't sell 2020 X5, he has close to 9 but that fucking retard sold my 2021 X5..LOL.
You are not looking at the situation correctly. The quarterly numbers matter a whole lot when it comes to current pricing since it shows the demand for the product. If the demand slows down then prices may be adjusted accordingly. For this discussion the pricing really doesn't matter though and neither does the reason for the demand. I was just posting some information to correct those that say the demand is down. Just eye-balling the numbers it looks like more X5s were sold last quarter than any other quarter in at least the last five years. That likely will come down but that is the future not what has happened.

The dealer you were working with has no bearing on the overall demand for the product.
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Last edited by TurtleBoy; 11-23-2020 at 10:15 PM.. Reason: Additional Info
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      11-24-2020, 10:27 PM   #22
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Just to respond. The data was procured from goodcarbadcar.net which posts monthly sales data across different manufacturers. The data I cited was for aggregate bmw USA sales and not just X5 which is consistent with my post.

Based on what you supplied first quarter 2020 compared to first quarter 2019 x5 sales were down 10.69%. Essential a quarter with very little covid impact so cars not exactly jumping off the lot. Year to date x5 sales thru the third quarter are also down. 13.68% year over year based on your supplied data.

I agree there was actually a shortage of cars on lots in July and august due to plant closure in second quarter, lease extensions that were exercised and people delaying purchases until businesses started to reopen in third quarter leading to high demand.

But if you are trying to cut a deal now my point is there are a lot more cars available and don't believe the "shortage" and offers of full sticker or Low ball 5 to 8 percent off. You can get a good deal if you put time in and don't need a vehicle straight away.
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