BMW X5 lease calc- Location is Valencia, CA (southern CA)

The sales person I’m talking to gave me this deal and he says the MF is .00086 and residual is 60%. When I put this into the calculator I get like $571 as the monthly payment which is way off from his number. What am I doing wrong?

This is my first lease so I’m pretty lost. I’ve been trying to read to forum and the lease compare on an X5 is outdated so I’m not sure if I can use that.

Hello, I am the husband of CaliSteph6, I think some information may be missing. here is what he also sent us as a quote for a lease with $8k down which is wqhere I think the MF and the Resuduals come from. The MF seems really low and the residual really high but I am not really sure. . ( I am under the impression that it is foolish to put downpayments on a lease so we probably won’t be doing that)

Vehicle: 2016 BMW X5 SERIES 16XO 4dr Wgn sDrive35i
Stock #: G0R72202
VIN: 5UXKR2C51G0R72202
Miles: 27
Vehicle Price: $59,445.00
AutoNation Savings: - $4,530.00
AutoNation Price: $54,915.00

Sales Tax (estimate):	+	$4,991.59	 
Tag/Registration Fees (estimate):	+	$428.00	 
Flat Add/County Fee:	+	$10.00	 
Electronic Filing:	+	$29.00	 
Smog Abatement Fee:	+	$20.00	 
Documentation Fee:	+	$80.00	 
Balance Due (estimate):		$60,473.59	 

No Trade-In
Cash Due 36 months
12,000 Miles
Drive off: $8,000 Monthly payment: $633
Note : 4550 refundable max sercurity dep

So selling price is $54915.00
Your money factor is 0.00086
Res is 60%
36 mo lease
0 drive off
$925 bank fees and 9% sales tax?

My calculation shows approx. $738/mo.

with $8000 drive off, monthly comes out to $497.46

Is factor still 0.00086 after $4550 of security deposit?

Hello Alan,

Yes, with the 8k Payment, 4500 of which is a security deposit the money factor is .00086. The security deposit drives the mf down from 0.00137

I’m st the dealership now but it looks like they are really screwing us on the monthly payment. I’ll see what they can counter with.

Why you only shopping one dealer?

You can reduce the price far more than you have it currently. It will be much harder to do it while sitting at the dealership.

My suggestion would be to call up a rival dealer say Center BMW in Sherman Oaks/Van Nuys or Century West in North Hollywood and ask them if they can beat that price on the same car,

Why are you putting down money on lease?

well they said it was a refundable security deposit which also brought down the MF to that .00086

We aren’t sure if we should believe them that it is a security deposit and that we would get it back at the end of the lease.

The one they quoted us was sold when i got there. I saw the family buy it. So we had to look at a few others.

We ended up looking at an X5 M sport 6cyl xdrive. The initial price was 67,000 and there was an automatic discount of 5,920 which made the vehicle 61,150. I wanted them to come down to 59,000 but they wouldn’t. They bottomed out at 61,000. They claimed they were losing $3500 on the deal if they went to $59,00 but I don’t buy it but have no proof that their claim isn’t factual.

We walked out without a deal because they wouldn’t come down on the price of the car.
So the final lease offer we got was:

Price: $61,150
MF: .00135

Cash due: 2266 Monthly lease $815
Cash due 3000 Monthly lease $765
Cash Due 4000 Monthly lease $735 (don’t know if the MF went down, we didn’t discuss it that far)

The 3000 or 4000 they called a security deposit. My wife thinks it’s actually a down payment, but I say that is different, but really we don’t know

Working with the sales people just makes me feel dirty and I don’t trust any of them.

1 Like

Do all negotiations -

  1. By Email

  2. Near the end of the month

Pit all local dealers against each other. Take that offer and contact Century West by email, do not call them. To be honest you might get your best deals in Bakersfield (BMW of Bakersfield owned by Bob Smith). Rusnak in Thousand Oaks and Pasadena are also in play.

The security deposit is a real thing, and you’ll know that by the fact that the factor gets lowered. You could put up to 7 security deposits, each one lowers the factor by .00007.
So lets say after lowering the factor the payment is 520 a month they rounded up to the nearest 50 and thats your security deposit, so 7 security deposits of $550.

I wrote a quick summary and some FAQ on my blog recently regarding the MSD (multiple security deposits).

Have a look here ->

I understand how MSD’s work. I do have one question (maybe two) -

If I am able to negotiate a deal for zero due at signing, let’s say the current VW GTI deal they have which is $2999 due at signing and $269 a month, 36 months, 12,000 miles.

I can easily find a dealer to knock off $3K off the sticker price, so it seems to me I can get away with zero down.

I could then take that $3K savings and reduce the money factor which would lower the payment even further.

Does that sound right?

Nope. $2,999 due is a “Cap cost reduction” and does not include tax/TTL/dealer fee/acquisition fee/first month. To have the real “zero due at signing” you’d need to roll all these fees/taxes into lease payments (add to Cap Cost).

The dealer price for almost any BMW is 93% before incentives. I am not 100% on the x5 right now but if there are any incentives they are pretty minimal. So on the 67k car thats 62,300 roughly $3,500. The msd’s are real and a smart thing to do if you have the money, way better than a cap cost reduction. One note of caution, if you are planning on swapping the lease, the msd’s are going to be hard to recover from whoever your transfer the lease to. Honestly seems like the dealer was pretty straight forward with you. I would check with Greg Poland at Pacific, he is a sponsor over at bimmerfest and he WILL NOT screw you.

The $2999 due is assuming the car is MSRP. As I said I can name five dealers that would sell me the same GTI-S for $21,000.

MSRP is $25,xxx, negotiated price is $21,xxx. How is that amount not swallowed up and I would still have to pay $2999?

What I said was that even if you get $3K off of MSRP, you’ll still have to add $2-2.5K in taxes/fees to cap cost to “get away with zero down” (equals “zero out of pocket” to me). And that will add $60-70/mo. Just to “knock off $3K off the sticker price” will not get you $269/mo with zero out of pocket.
Also - read disclosure. Often it says “dealer contribution required” which means $2,999 you are trying to knock off will NOT be off the MSRP but off the already discounted price.

You need to call Will Shaw at Pacific BMW or Greg Poland at Pacific BMW. Both are straight shooters who’ll give you honest numbers and a good deal.

Oh I got that, but that’s total rolled in equals to the amount saved on the Cap Cost of the car. I don’t mind paying some fees, but not $3K worth of fees, deposit, first payment, etc.

Sorry to take this off topic, just trying to understand the math here. I believe the VW MF is also .00333.

I hope you are missing a 0 in there cause that’s like 7% interest (or your credit is not very good), i am guessing it should be .00033.

I think you aren’t negotiating the deal well. I never walk into the dealership without agreeing to the numbers over email and have something in writing. 10% discount on such a car is normal, my past few BMWs were like 15% off. Ideally you need to wait for end of quarter, if you cannot wait that long, at least wait for end of month.

Well, we got our X5 a week ago. WE ended up getting the 2016 Space Gray X5 sDrive 35i M Sport with optional 20" m sport wheels, black dakota leather, and driver assistance and driver assistance plus.

The car stickered for $67,050. We got this down to $61,000. They gave us $500 for a trade in on a beaten to death 2000 camry.

Out the door we paid $5500. This inluded a $3000 refundable deposit. Our MF went from .00135 to .00107/ 60% residual at the end of the lease

36 mo/36.000 miles


Already put almost 1000 miles on it and loved every mile. :slight_smile:

I feel like we got a good deal. We couldn’t wait until the end of the month or quarter to see if we could get more money off.

Despite me “feeling” like we got a good deal, does this look like a good deal? It may not be the absolute best, but again we couldn’t wait. We were in negotiations with 4 other dealers and none of them came close to this price.