BMW X7 Lease Deal Check

Ask the Hackrs
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1

Hi all,

Negotiated the deal below and wanted to get the community’s feedback. The LH score is not great but thought I’d ask anyways. The car fits 90% my needs and the dealer looks to be offering a pretty hefty discount imo. Many thanks in advance!

Northern California

BMW X7 xDrive40i
MSRP: ~$95k
Dealer Discount: ~$10k (~11% off MSRP)
Trade-In Equity: ~$2.7k
Terms: 36mo/10k mi (I will probably be driving around 8k miles a year, so won’t go over)

MF: 0.00250
MSD: 7 (reduces MF to 0.00208)
Fees: ~$2.2k
Taxes: ~766.64

DAS: $5k
MSD: ~$9k
Total drive off : ~$14k
Monthly (incl. tax): ~$1,250
Residual: ~49.5k

2

Post the calculator. Something looks off here.

Also isn’t 7.5k an option. Wouldn’t it be cheaper to pay for the extra 500 miles a year? (Again this is where the calculator is your friend).

3

Thanks - went ahead and posted the pics. Ignore the 6.9k due at signing. DAS is $5k

4

Double check but isn’t base mf .00210?

Going forward just post the link to the calculator.

5

Replaced the pics with the calculator link - thanks for the tip

Base MF is .00250

6

Edmunds shows .00210. Regardless with a 52% residual and no incentives there is no putting lipstick on this pig unfortunately.

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7

Thanks. Yeah - I figured. The discount is a healthy 10+%, but this may just be better as a purchase.

8

Yeah getting 10% off an X7 is great. A few months ago we tried to get into a X7 with Executive Package (the motorized rear sun shades are so cool) at MSRP and they straight up wouldn’t deal.

Ended up with a GLS with rear sun shades for MSRP (Mercedes won’t do a deal below MSRP on black GLS).

Getting a nice 7-passenger BMW 11% below MSRP sounds like a great car to just purchase.

9

~$50k total lease cost to meet just 90% of your needs seems absurd to me. It’s one thing to compromise for a cheap car but

Not surprised. The buyer pool for a $95k 40i must be infinitesimally small.

10

Thanks for the feedback. I think with the ~11% discount so far, this will probably be best as a financing, especially if I’m able to get a more favorable rate around 72mo/5.25%.

The remaining 10% of my needs that aren’t being met are smaller items that i think i can live without considering the trade off for the discount (i.e. no second row bench seats, lack of driver assistant pro are the two main big ones - but i think i can actually buy the latter as a software update after purchase, since the car already has parking assistant pro that contains all the hardware needed to enable to feature). Anyways, just some of the thoughts that come to mind when I’m evaluating this deal.

11

What have brokers on this platform offer you?

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Generally around 5-6% off MSRP so far.

13

The guy is in Northern California. Every “normal” (eg not a Maybach or AMG/M or Escalade V) luxury ICE large 7-passenger SUV clears the dealership in about 1 week or less.

Land Rover is at least $10k over MSRP

Yukon Denalis are easily going $10k over MSRP

Escalade Platinums are at least $15k over MSRP; $20k over if there’s the Onyx package
Someone at my work just picked up an ESV Escalade Sport Platinum with the Onyx package for “only” $20k over MSRP after haggling them down from $30k over.

Mercedes usually sell GLS450 or 580 at $10k over MSRP when they’re black and have a nice option load. I haven’t seen one stay in inventory longer than 7 days (I look all the time because I’m lame).

A nicely optioned X7 (non M) for 10% below MSRP in NorCal is almost stealing at this point; especially if he’s in the SF Bay Area of NorCal and not in say Fresno.

14

However you want to rationalize it, this lease is stupid.

Over two such leases the OP would spend ~$100k and have nothing to show for it. For a car with a selling price of $85k

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15

For the same ~$85k selling price couldn’t you order a ~$90k MSRP car with the exact options you need?

I mean what would you rather have, the options you need or the bragging rights of a bigger discount?

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16

I told him a purchase on the X7 makes more sense than a lease.

You separately brought up there aren’t many people interested in these large SUVs.

17

There aren’t many people interested in a SUV with a sticker approaching 100 large that doesn’t have the larger engine option.

18

No, the X7 with the bigger ICE motor is the M60… which stays on lots longer. I don’t think I’ve ever actually seen an Alpina X7 lol.

The vast majority of X7 in the SF Bay Area / NorCal are xDrive40’s, and they typically fly off showrooms. Go look at Peter Pan BMW, East Bay BMW, Fremont BMW, Mountain View BMW, Berkeley BMW, and Stevens Creek BMW. The only X7 on the lot are M60s and one nasty Green xDrive40.

There definitely still people interested in these xDrive40s when they’re moderately optioned. Heck I’ve seen 2 new ones with temp tags in my subdivision just this week. Getting 11% off MSRP in this area is a great deal to buy that xDrive40. I hope he lands the car at a price he likes and he ends up liking the vehicle too.

They have a metric crap-ton of iX though… so if you want a deal that’s where to look.

19

If this is all true then people in NorCal need to figure out that a flight to SoCal is only 100 bucks. Must be inhaling too much smug up there!!

20

With respect to your overall effort, but out of curiosity, why do you even bother buying $90k+ vehicle if you’re planning to keep it in the garage or to Costco and back?! Dude, this is a BMW, did you forget that?! Those machines beg to be driven! Anyway, post some indulging photos, and don’t forget to share the COD surprises upon signing the papers😊