Is this good lease for 2017 X5?

[littlehuman]

Hi,

I'm not sure if it fits into this forum, but let me try

I'm thinking about leasing 2017 BMW x5 xDr35i.

These are the details

MSRP: $63,645
BMW Invoice: $59,905
Selling Price: $57,905
Residual: 58% (Based on 36 months, 10,000 miles per year)
MF: 0.00152
Term: 36 months / 10000 miles
$2,000 Total Drive off (includes 1st payment, DMV, Tax, Registration)
Lease Loyalty Rebate: $3,000
Down Payment: 0
Monthly Payment: $671.08 + Tax (9.5%) = $735.04

Is there anything I can get more out of this deal?

[Foggins]

Seems like a very fair deal to me..

[04mazdaspeed]

sooooo....735 a month to rent a car? Yea I'm going to say that's a waste of money but to each his own.

[perryo91]

Originally Posted by 04mazdaspeed

sooooo....735 a month to rent a car? Yea I'm going to say that's a waste of money but to each his own.

Not sure why you're so mad?

He's making a decision that has 0 effect on you.

He's asking if that lease offer is a good deal.

Not if people think leasing is a good idea.

[BimmerX5kid]

yeah.. just push the $2k into the monthly payment for an extra $55.. why do anything out of pocket? Sign and drive man. If the car gets wrecked you dont get your $2k back..

[04mazdaspeed]

Originally Posted by perryo91

Not sure why you're so mad?

He's making a decision that has 0 effect on you.

He's asking if that lease offer is a good deal.

Not if people think leasing is a good idea.

Trust me I'm not mad. Didn't mean if it sounded that way. He was asking if that offer was good and in my opinion no lease is good so that's why I said what I did. No harm no foul. His money, he can do as he pleases.

[littlehuman]

Thank you everyone

[BimmerX5kid]

Originally Posted by 04mazdaspeed

Trust me I'm not mad. Didn't mean if it sounded that way. He was asking if that offer was good and in my opinion no lease is good so that's why I said what I did. No harm no foul. His money, he can do as he pleases.

No lease is good.. ever? Let me ask you this question. if you could lease a $63k car for say.. $500 a month.. would you still not take that deal?

(depending on your answer i will have a follow up question). But i'm curious is a lease at ANY price a bad deal because you think "renting" is always bad?

[04mazdaspeed]

Originally Posted by BimmerX5kid

No lease is good.. ever? Let me ask you this question. if you could lease a $63k car for say.. $500 a month.. would you still not take that deal?

(depending on your answer i will have a follow up question). But i'm curious is a lease at ANY price a bad deal because you think "renting" is always bad?

No I wouldn't because if I was spending 60k+ on a car, it be so I kept it long term. I suppose the only time a lease wouldn't be a bad thing is if you can write it off with a business which I and probably most people don't have.

[04mazdaspeed]

I suppose it comes down to one's frame of mind. I don't like being in debt so me changing cars every 3yrs and constantly having a payment is like a never ending hole.

[BimmerX5kid]

I for the last ten years have owned one car and leased a car. The car i own gets the big miles on it and the lease is for pleasure. i was a serial leaser for years prior to that. They were all "luxury" cars. One i owned for 6.5 years.. the other for 4 years before i traded them in. Both trade ins unequivocally were not good "investments" after i did the math of Purchase price (plus tax) minus sum of all car payments minus trade in credit minus sum of all maintenance over the life of the car (tires, brakes, radiator, AC, coil..whatever else was not included in warranty). After i figured out my "life of loan monthly cost" cost each time i had regrets it was nearly a break-even or even a loss versus "man for that monthly cost i could have been driving a BRAND NEW lease every 3 years!" The math was what the math was. I challenged colleagues at work who owned cars and i asked them the same math.. and each time their "investment" internal rate of return/(cost) was nearly the same as if they just would have leased anyway.

So why do i still have one car ownership versus lease? 1) i do like to have a choice of cars to not have to stress about going over mileage. 2) its good to have an SUV you can romp on a little (home depot trips in the back), a little off road, and not have to worry about lease damage. So in summary.. for me, owning did not equal "better than renting".

I think the only way owning would be renting for me is if i owned the car for ten years.. but even then you're getting into multi thousand dollar repairs needed which blows up the equation again.

I welcome anyone on here is a big oponent of leasing to tell me your last trade -in story and what you paid for car + tax - car payments - trade-in minus maintenance to get a real "monthly cost" of your ownership. I just can't get there.

there is a saying that goes "own appreciating assets and lease depreciating assets." Your results may vary.

EDIT: PS. one colleague said "when i traded it in i have $15k equity, you dont have equity when you lease.".. That is totally incorrect. Just because you had an "asset" after the loan was paid off and applied that to the NEXT asset, you didnt monetize anything. You still need to calculate what the "cost" was to get to your asset. applying equity trade in did not LOWER the cost of your next car.. it just lowered your loan amount.

[justb]

Close to production pictures of the X5 G05 replacement have surfaced in the past week, with an indicated release date of Summer 2018. So any lease company would have that massive depreciation factored into your cost - so overcharging compared to a new one.

When I looked between the Q7 and my now 3 year old X5, the brand new Q7 was just about to be release, so lease rates were crazy high (in the UK at least). If you can hold out I would. Mine's due to end it's lease in Nov 18, so I should be in good time to check out the G05.

[turboawd]

if you lease, the car depriciates by about what the monthly lease payment is. buying the car doesnt make it more valuable.
downside to leasing i found, is that you're not really the owner. so if someone wrecks into you hard, you cant go after other driver for diminished value. and that screwed me because my intention was to buyout the lease at the end. luckily bmw agreed to do a buyback and i walked away easy.

[BimmerX5kid]

Originally Posted by turboawd

if you lease, the car depriciates by about what the monthly lease payment is. buying the car doesnt make it more valuable.
downside to leasing i found, is that you're not really the owner. so if someone wrecks into you hard, you cant go after other driver for diminished value. and that screwed me because my intention was to buyout the lease at the end. luckily bmw agreed to do a buyback and i walked away easy.

i will admit i am totally in the dark about this "diminshed value" idea. However, i would say that i did lease a car (way back in 1996) that was loss due to a flood. I was very young and stupid and was able to recoupe all the personal upgrades i put into the car: boom box speaker, crazy rims..etc. but i did think to myself: man was i lucky my insurance co recouped me on this, i wonder how many people who bought their car and were making monthly payments would only hope to BREAK EVEN on their payoff from the ins company. so in that case the idea of EQUITY is a dream.

so to me I think that a total loss on a lease is a WALKAWAY whistling to the dealer on the NEW CAR you will be getting (lest we forget gap insurance is included) versus if you OWN during a total total loss you are PRAYING the ins company covers the rest of your contract to pay off the loan.

When you are leasing a car.. in a perverted way you actually WISH that the car would be stolen or totalled one month before the lease expires. No wear and tear stress, no over mileage stress.

(yes i know i use a lot of capital letters for emphasis).

[Keithwand]

I’ve lost 1K every month I’ve owned the car since new so 22K. Hmm. OPs lease around 800. A month if he rolls in the down payment.
I’ll have to buy tire etc.
Looks like leasing wins!
My mistake for buying and not leasing

[Whazzup@NJ]

Going into my 4th BMW lease and it is clearly more expensive than My purchased Lexus that I’ve had for 6-7 years. No question. For the increased cost you get the pleasure of a new car every few years, and protection against the diminished value (one of my cars has no value due to a rear end collision). It’s a trade off we all accept when we lease.

The least expensive luxury vehicle I ever had was a Lexus GX470 which cost about $4000 per year after I traded it. With the cost of repairing BMW out of warranty the value is in leasing. Just understand you are paying for the convenience.

[BimmerX5kid]

You owned the 470 and after your trade in the cost to you was only $333 a month? How many miles do you drive a year? If I could repeat that over and over I would.

[turboawd]

Originally Posted by BimmerX5kid

You owned the 470 and after your trade in the cost to you was only $333 a month? How many miles do you drive a year? If I could repeat that over and over I would.

perhaps he bought it used.
i had bought a used e60 bmw 550i and after 6 years ownership, sold it for $6k less than i had bought it for. that means the car cost $1k per year of ownership. try to top that.

[240SXFAN]

Originally Posted by turboawd

if you lease, the car depriciates by about what the monthly lease payment is. buying the car doesnt make it more valuable.
downside to leasing i found, is that you're not really the owner. so if someone wrecks into you hard, you cant go after other driver for diminished value. and that screwed me because my intention was to buyout the lease at the end. luckily bmw agreed to do a buyback and i walked away easy.

All BMW leases come back with GAP Insurance. So BMW probably got compensated for the diminished value from it's insurance policy.
It is a lot easier for them to do this than having to bargain with the other driver's insurance.

[P1]

I've always bought. Best one was a 2004.5 Dodge Ram 2500 4x4 Spprt with the Cummins engine. Bought it for $34,000. Sold it nine years later for $23,000. Sure, had to pay for maintenance and one set of tires. But what is that? $100 a month? I cringe at what I pay on my BMWs today.