2021 BMW X5 lease - How is the deal? April 2021

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10.5% off MSRP, MF marked up from 0.00093 to 0.00109, RV 54%, rebates: College New Grad 1000 + Lease Cash 500

Can I stack penfed cash? The dealer says no, but I found it’s allowed.
Can I add corporate sales program lease cash?

Calculator: CALCULATOR | LEASEHACKR

I am quite confused about the fees. Does the dealer ask for fees I shouldn’t pay? Does the dealer mark up the fees? And what is the Limited Interior Protection? Does every dealer ask for this?

Hope this sharing this deal could help you get a better one!
Many questions, but thank you for reading!

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This is a dealer add on. The rest are required fees.

Can I ask them to remove it? I suppose this is totally useless?

I would ask them to remove it

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What about the incentives and rebates?

I am qualified for penfed cash, college new grads, bmw lease cash, and corporate sales program. What is the combinable max that I can stack up? Thanks!!

the bmw wiki thread here is probably the best place for sorting that out. I’m not an expert on bmw leases

Your calculator is wrong, the doc fee is 303.6, the title fees come to about 326, the extra charge is 399, so altogether the dealer fees are about 1000 dollars.

You have a decent discount, but it’s pretty much negated by the high fees and MF markup. Add in lack of additional incentives (loyalty) and it’s a pretty big price for a 64k x5.

can someone explain the purpose of MSD if you can get better return through investments? why lock up your money?

If you can find a guaranteed 10%+ annual ROI post tax, by all means go with that.

Well if you’re tying up $5000 to move from a say 4% APR to 2% and inflation is 2% youre breaking even. any investment with >2% return would be preferable. So when it comes to BMW what are the purposes of MSDs if your interest savings are minimal?

That’s not how the math works out on leases. You need to compare total cash flow to the investment here. You’re leveraging a small amount of relative cash to lower the interest on a larger investment amount, so you may be only lowering the effective interest rate by a few percent, it’s applied to the large investment amount (that you’re never making).

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Now, BMW has crippled their MSD programs so it isn’t as good of a use of money as on other brands.

Ok thanks for explaining I understand now. I see how the numbers may work in your favor in certain situations.

BMW has definitely made it not as lucrative as other brands, but the big thing to remember when comparing against other investment options is that the return is essentially guaranteed, no matter what the market does (short of BMWFS going out of business, but if that happens, there are probably bigger problems) and there is no tax liability. Those two things make it pretty much impossible to beat unless you’re incredibly risk tolerant in your investments.

The bigger issue is that it complicates things if you want to transfer your lease, so a lot of people will forgo them, especially on bmw leases these days, because they want the flexibility of transferring easily.

Right, it definitely seems like a good idea. However, it would obviously be best to calculate the expected cash flow to the investment to see what kind of return you would need to match. Given the low interest rate environment and other factors, I am particularly bullish on equities going forward however that is a different conversation. Unfortunately, I live in NY so no bmw MSDs for me :frowning:

How much time are you to spend on a cash flow analysis? You aren’t buying an office tower.

We’re talking guaranteed return on a few thousand dollars that isn’t already invested.

Assuming the MF isn’t already almost zero, using MSDs is like buying a 12-pack of Diet Coke and finding a $2 off coupon in your pocket while you’re at the checkout.

Are you going to toss the coupon in trash?

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that’s a nice, simple way to think about it.

Updates: deal reached in late April
Final breakdowns:
10.5% off MSRP
New Grad rebates 1000+ Penfed rebates 500 + lease cash 500
MF marked up from 0.00093 to 0.00109 before MSDs
MSD: 7
Limited Interior Protection Fee removed, only Doc Fee + License + Title + Electronic Filing

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