01-07-2018, 08:59 PM | #1 |
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BMW lease programs no longer competitive
We are currently shopping both an X5 and X3 looking to lease one of each.
I am very disappointed in the programs currently being offered. My current 535 had a 75K MSRP and my monthly lease price (no money down) is $634. The X5 that we have configured has an MSRP of 72K and we are being offered a lease price of $902/ month. Blame a poor residual, bad lease rate, lack of programs.... but a car that costs less is now realistically 50% more expensive to drive per month. The same story with the new X3.... with lease prices in the mid to upper sixes for a 50K +/- vehicle. Where have the 62 and 63% residuals gone? Now they are 56, 57%. That alone adds $100/ month on a monthly lease. SO...... I worked a deal and offered to PURCHASE the car CASH without financing. I then learned that the loyalty $3000 credit ONLY applied if you leased or financed through BMW financial. What kind of bull shit is THAT???? lol. I only am a "loyal" customer if I pay the silly finance fees! BMW seems to be holding the line on vehicle prices. However, monthly lease payments are 40 to 50% above what they were a few years ago. Am I the only one that has noticed this? Merc and Audi have better programs, and all of the sudden that Range Rover sport looks like a real option. If I'm going to pay 900/month on an X5 I'll consider going an extra 100 or 2 to drive the RR. |
01-08-2018, 09:41 AM | #2 |
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I think we have been spoiled by BMW's great-for-us, but unrealisticaly high residuals. My recently turned in 2015 528i's retail value was way under the residual and BMW ate that. Until now, it was difficult to go past a BMW lease to another make because of the high residuals and three years of included maintenance. For me, if this new "realism" by BMW continues, it means that a lot of other makes of car are in the mix for my next vehicle.
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01-08-2018, 09:44 AM | #3 |
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You can finance through BMW FS to get the $3k credit and pay off with CASH 3 months later.
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01-08-2018, 10:27 AM | #4 |
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Nowadays when Hyundai/Kia prices are on par with some Japanese brands due to Hyundai/Kia positioning themselves as equals, it's no surprise premium brand like BMW stops charity and makes prices more realistic to real market IMHO. I went to Lexus and their RX450 prices are almost similar to X5 and they position themselves as a premium brand and frankly even think of themselves as a better brand due to reliability (true). However, after driving that rx450 it felt like a bus with cheap leather and cheap plastic interior that pretends to be premium. There was no comparison even, X5 is a completely different beast. Same for X3, 535i etc. What I'm saying is that yes previously BMW had lease options comparable or even better than competitors, MANY of those competitors were nowhere close to BMW, but if now BMW finally decided to make it a fair play - who is to blame them?
I think they are still #1 if you look at complete package what you get. Audi still drives like Lexus - pretty much like bus. Mercedes is a joke, except their overpriced AMG equivalents that sit in between civil x5 and x5M, domestic cars - you gotta be kidding me. Range? Same bus chassis for soccer moms. Porsche? Yes, but look at their prices and they don't have charity lease options either. In sum - BMW is still best product for enthusiast drivers, BUT if you only want a soccer mom transport - then yes, by all means shop around - you won't get better driving experience, but may get cheaper lease - if that's what you are after. Just saying |
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01-08-2018, 12:07 PM | #5 |
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01-08-2018, 12:30 PM | #6 |
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I tried the Audi and at the end of the day their leases are no bargain either. With that being said I will stay with BMW and get a great product in my opinion and deal with the cost. I locked Decembers deal and was able to get $3k build out cash on my 2018 X5 50i. That $3k has now disappeared.
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01-08-2018, 01:11 PM | #7 | |
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01-08-2018, 01:13 PM | #8 |
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Mb isn't any better. They were trying to get a 5 figure down payment on a gle coupe to get me a lease payment out of the thousands.
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01-08-2018, 06:52 PM | #9 | |
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I don’t question the premise, but you need to negotiate a better deal. My $85,500 MSRP X5 payment is $915 a month including taxes, and that’s before the $1,000 BMW CCA rebate.
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01-08-2018, 07:15 PM | #10 |
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You just gotta catch the good deals
I just picked up a 2018 X5 40e with an msrp of 79,650 and my payment is $779 with literally nothing out of pocket. NY resident I had a 2016 435XI with a 640 payment and now a 440xi is mid 7's if you are lucky.
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01-08-2018, 09:26 PM | #11 | |
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I feel to raise the residuals, cut the rebates AND raise the lease rate all at once, in essence driving lease payments up 50%.... FIFTY PERCENT for a similarly priced vehicle is unconscionable. We have had more than 20 new BMW's, all models, over the years. I'm shopping elsewhere. I think many of the cars have lost the edge they once enjoyed. My M car is awesome... I love it. But the 535 sport coming off lease drives and handles like a 1980's Buick. A little harsh? maybe.... but it isn't the unflappable 5er of old, that is for sure.... and the new 5? I'm not impressed. Seriously, the supercharged 8 in the Range Rover sport transforms the vehicle... with the dynamic handling package it is a BEAUTIFUL driving vehicle. Fit, finish and interior materials are FAR beyond the X5... not even close. I'm a 30 year BMW diehard. I'm just having a hard time making sense of the direction they are taking their vehicles, and the current turn of events with price is just plain wrong. I'm definitely going shopping, and I suspect I'm not the only one that feels that way. |
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01-09-2018, 08:13 AM | #12 |
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We have been all pampered for years and that was why BMW was always selling the most for years. Now they have many loyalists, filled all segments, it is time for them to pack some money in their bank.
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01-09-2018, 09:21 AM | #13 | |
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I, too, considered the RR Sport. Love the design although I like the ‘18 face lift a little better. Shied away as two of my staff have ‘17’s each with love/hate relationships with theirs due to frequent issues. Still, a great ride and the power is nice. |
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01-09-2018, 09:34 AM | #14 |
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With the G05 coming out residuals are going to crash on any new F15. I looked at the Q7 and the X5 when I got mine 3 years ago, just before the new Q7 was coming out, so the lease on an equivalent spec/price car was £300+ more than the X5! No brainer.
Mine is due Nov so I'm hoping the G05 & prices are out before then if I go with another X5. |
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01-09-2018, 11:13 AM | #15 |
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That's what happens when you make every model under the sun with every letter and number available. Residuals will keep dropping because BMW has deliberately cheapened their products and diluted the image of the brand.
This mad expansion is not without consequence. Lower residuals, higher lease payments, higher out of pocket, inferior brand perception = no buyers. |
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01-10-2018, 05:31 PM | #16 |
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I think BMW strong points shifted from bread and butter models to more high-performance models. Take 50i - there's no SUV/SAV (except Porsche Cayenne Turbo at a LOT more price) that can offer similar chassis and power. None. Tesla costs more too. Same with F10 - 550i is a monster. M cars became more mainstream now. BMW acquired lots of followers, it's premium brand #1 imho for those who value driving experience, but it has shifted to models with more powerful engines and M cars. Simple mainstream engines like 35i or 528 and similar - they are now marketed towards new owners many of whom never had BMW before and they want something more civil, soft and quiet. This is what BMW delivers to them AND to us enthusiasts. You just have to choose correct model now, have to step up - possibly to M cars if 50i is not your thing
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01-10-2018, 05:41 PM | #17 | |
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01-11-2018, 06:21 AM | #18 | |
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