My wife’s 2nd XC90 lease is ending in July and thinking about switching to a BMW X5 or X7. She loved her Volvo’s, but can’t see spending almost double this time around.
I have been running numbers for both finance and lease. If finance, we will keep for minimum 4-5 years likely 5+. I looked at CPO options for both and doesn’t seem worth it compared to new with discounts and incentives, not even accounting for extended warranty prices.
These are based on May Programs and MY 2025 for consistency. 26’s don’t increase the monthly too much, and would custom order if needed.
2025 X5 - 10.5% pre-incentive X5 Calc
Finance incentives:
$4000 Military (immediate family member)
$1000 loyalty
Lease Incentives:
$1000 Loyalty
$500 Military
Both assuming finance with Penfed at 5%. We also qualify for corporate, but doesn’t stack with military or loyalty. I used approx value of 43% after 5 years for both, which seems conservative based on current used prices.
Am I missing anything? Seems like Finance would be the way to go as long as she’s willing to hold for 5+ years.
If you are not in a hurry, maybe wait to see if they bring back lower financing. I think they did 1.99% recently, so I expect that will come back once impact of tariffs are better understood.
Not in a hurry, but Volvo lease is up in July, haven’t looked into extension options.
No Navyfed but will look into it.
I normally agree with this but I’ve had a m340 for almost 5 years, 0 issues. Couple minor warranty items covered. I’ve replaced tires once and brakes are somehow still at 50%. If buying definitely sticking with the B58 engine. I just can’t wrap my head around a $1000 effective lease payment for X5. Like I mentioned, willing to hold for 5+ years and she only drives about 7k miles per year.
I ran the same TCO calculators for a Lexus TX which she does like. The TX 350 is so sluggish and we’d want the TX500h which ends up close to X7 numbers due to lack of incentives and discounts.
There’s just not many ICE SUV’s out there comparable to an XC90 that lease for less than $600 effective currently.
10.5% on X5 and 12% on X7 are both solid deals. I have driven both brands SUVs and I think you’ll enjoy the performance bump and overall “fit and finish” to BMW. Unfortunately BMW leases have been less attractive across the board since the pandemic, especially on SUVs which make up the large majority of their sales now. After leasing several BMWs I bought out my last one and haven’t looked back, and no regrets.
Let me know how that works out for you I’ve been contemplating switching one of my M cars for a X6 but those really have no incentives. Can’t find one anywhere that’s not ridiculously overpriced because of high demand. Keep in mind the 2026 should be rolling out very soon they’re already build able which should give you atleast a little more negotiation room once they do.
Not sure I would agree with this. 5-year-old X5’s are doing around $25K at auction on an original MSRP around $70K. I think you will be closer to mid to low 30’s. The TCO would probably be better if you held it shorter, avoid the “cliff” that occurs when they do LCI or generational refreshes.
Correct. Depending on the rate you get, you may be best off with military and outside financing. There aren’t many 2025 X5s left though, and 12% off an X7 is beyond what most are doing. There aren’t a lot of those left either.
