Hello. I am looking at leasing a 2022 BMW X5 S-Drive with an M-package. Should be a $68-72k MSRP vehicle. Can anyone tell me what the money factors are these days for those, and what kind of a deal I can expect? I tried to buy one in May and the best deal I got was $1k/mo for 36 mo with $5k down which seemed ABSURD for a $70k vehicle.
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
- Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!! While you’re at it, be sure to watch the LH video (How to Use Leasehackr - YouTube) to brush up on how to most efficiently use the resources here.
- Pick a specific vehicle that you want to target
- Gather the current MF, RV and incentives from the LH Calculator - Lease Program Query or Edmunds forums for your zip code
- Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
- Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
- Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
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Why did the deal seem absurd at the time? Did you qualify for any incentives? What was the pre-incentive discount, if any at the time? Was the monthly pre or post tax?What were your mileage requirements? What is your credit score?
As you can see, you need to provide more info in order for us to evaluate a deal. I am sure you are aware, market conditions have worsened since May.
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We were already paying $600/mo for a $60k 2018 530i M Sport with the same lease terms. We ended up purchasing that car off of its lease, and we plan to keep it as a second car. There were no discounts to my knowledge.
All of the numbers I provided were after tax
Just curious, but what was the buyout price?
You should have qualified for any available lease cash (if any). You now have loyalty. For your next BMW lease, here is some advice:
- Sign up for Penfed (unless you are already a member). There are detailed instructions on how to apply. The gist of it is that all you need to do is to open an online account with them with a minimum balance of at least $5. After 60 days of membership, you will be able to generate a certificate for an additional $500 off a BMW.
- Look for a BMW Ultimate Driving Event (UDE) near you about 2 months before you plan to lease. You could net an additional $500 - $1000 off. Lots of info on this forum about that incentive too.
- Check out the BMW Wiki for additional info.
Good luck.
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Buyout was $36k which was about $4k over what the street price was at the time.
BMW has very poor residuals and money factors
That is quite a generalized statement. Are you just referring to the X5 or all models?
X5s are like .52, the others aren’t much better. Nothing wrong with that, they can charge whatever they want
Except the 3-Series (57% RV for 36/12), X3 (56% for 36/10), 5-Series (58-59% for 36/10, depending on specific model).
Those residuals are nothing to write home about either. But if you want to buy one, have at it
If those are “nothing to write home aabout,” then what competing cars (w/ the X5) offer a significantly better combination of RV and MF?
Residuals don’t always tell the whole story, as far as leasing goes.
I leased a 2021 Audi A6 earlier this year for 3 years @12k miles/year. Before Audicare, the RV was 50%. I was however able to score a good deal on the car based on a combination of factors, such as lots of lease incentives and a low MF.
I believe a few years ago, some BMWs had RVs higher than 60% for 3 years/10k miles leases. I could be wrong.
BMW inflated residual values are what makes leases appealing vs Audi or Mercedes.
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I don’t recall myself, but the crazy BMW deals were usually a combo of incredibly inflated RV and lots of incentives. So BMW, at least for a period of time, did have pretty high RV (on at least some of its cars).
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From what I recall my 2018 340i had 62 or 63% RV and the incentives and discounts were huge.
That came mostly due to the new generation g20 (2019+) being released.
I know some leasehackrs got a much better deal than me but I had a $57k 340i for $420 month zero DAS with 7 MSD
Now with 3 series bmw RV in the 50s and virtually non existent incentives I don’t know what to lease anymore… i might purchase/finance 
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Yeah, I think a lot of people are in the same boat… 
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