As many others, this is my first attempt at leasing, and I am in way over my head already - However I did try and get the basics sorted out to scratch the surface of Leasing 101. Fortunately or Unfortunately I don’t qualify for the new $7500 credit, which is a bummer but here we are.
Could use your help in evaluating the deal (and also understand what’s a good way to evaluate an offer)
Vehicle: 2023 X5 45e, a few packages, Custom order (SoCal)
Lease terms: 36months/10k miles per year
MF: 0.0016
MSD: 7
Rebates/Discounts: $3000 (Manufacturer, Dealer) Dealer is providing a discount already included here which sounds like a good deal for this config?
Fees: ~$1900 (Capped fee of $925, DMV, “Upfront fee” of $125)
Come out to around (Base monthly is $1140 and $1250 per month total) with 0 Downpayment and out the door being asked to pay for the MSD’s + Total taxes.
Are there other things I am oblivious to here that I should be thinking about?
Not sure if I can ask here itself but I also heard that there’ll be a big update for 45e coming up later in a couple of months - Is there value in holding off the order?
The finance route to buy this doesn’t seem practical since I’d be paying 12% finance charge on top or even if I find my own lender, current finance charges are about 5.5% at best (and lease option comes to around 4%).
Not sure about couple of months but I think LCI is 2024 model so probably comes in around August? You can google X5 50e, it seems there’s quite a bit of improvement.
Not sure what you mean by this. BTW, the $1500 rebate is a tax incentives but small difference, also that’s a massive amount of MSD, how much do you save per month?
Thanks for the info on the LCI, I don’t particularly have a strong interest in the higher HP and the iDrive system and the overall interior looks (and no significant battery gains). So that answers my question, stick with 45e.
As for the Finance route, after sales tax + MSRP, the Finance charge to go through BMW is around 10k (this is the interest I’ll be paying) and is probably the lowest APR. I stand corrected on the 12% number, I was doing raw math earlier but it’s actually the 4.5% APR.
It’s an awful lease. If you absolutely have to have the 45e and you are just using the lease as a vehicle to acquire the 45e then maybe it’s okay. Otherwise I would consider the 40i or if you must have an EV/PHEV maybe consider some of the brands that pass the tax credit like Audi or wait another month to see if others will join.
Could you help me understand what’s awful about the lease?
Is the MF too high? The only variables I see are the MF, Dealer discount on MSRP and dealer discount overall so far.
I am very interested in getting the X5 Hybrid though the tax credit incentive is lucrative. I considered the Audi as well but it came down to the amount of space and the features available, X5 just offered some of the good features such as Drive Assistance +, HUD, Back seat warmers etc that I didn’t see with Audi unless I am missing something? I didn’t want to go all electric either right now, just not there yet.
Do the tax incentives of $7500 get passed down from other companies irrespective of income criteria? And does this apply on Audi lease as well?
You’re paying 44K or close to 60% of MSRP to use the car for three years. That’s way too high. If you get a similarly equipped 40i you will probably pay about 8K less. And yes Audi will pass the credit on a lease and the income cap doesn’t come into play. Just be careful with the MF. It’s way too high on the EV/PHEVs so you will either need a discount to neutralize it or consider buying your lease with a lower financing rate.
Agreed on the $7500 tax rebate hit that BMW doesn’t pass on.
Regarding $44k for the 3 year usage, how did you calculate that? I looked at the Adjusted price after rebates and such to be around $74k and residual is 52%, so paying around $34.5k (plus taxes) for that time. Maybe the 7 MSD’s (worth 8.75k) add up but I assume we get those back at the end of the lease?
Am I missing something in how I am calculating this?
If I’m not mistaken. The $7500 is only good till March. After March it might get cut in half. If you can’t claim the credit and you’re leasing all the more reason to wait.
I think 518ADK really hit the right note and I am realizing I don’t need to rush into this. I still strongly prefer having a Hybrid for local commute miles and luxury of long range drives with Gas as a backup hence my strong interest in 45e.
And with 50e coming up shortly after, paying such top dollar in this competitive market is probably something I don’t need to do right now. I can see how 50e plays out and make a call at that time and hopefully by then the pricing and cost of 45e may come down a bit as well in case 50e is something that doesn’t seem as appealing after it is launched and I learn more about it.
