Hey Hackers — Curious about your thoughts on the below:
2024 X5 xDrive40i msport
MSRP: $78,095
Sale Price: $73,420 (5.99% off)
36/10,000
MF: .0022 (I believe base is .0021 here)
Residual: 52%
Down: $3000 (ideally I don’t do this. I never put money down on my past leases)
Monthly: $1,116.55 (includes tax)
Coming off a X3 m40i lease which I had an amazing deal on but need more size. Seems like I did all that I could to get them down. Would love to be close to 1k with no money down. Curious if you think I can get there.
~$42k over 36 months to lease a $73k car is a hard pass for me but certain salespeople will descend very soon to explain why the entire world should accept this absurdity as “normal”
Welcome to leasehackr. Since you’re new, you may not know the mess that LH internal bickering has become. To catch you up.
Max_g and his fellow trusted hackers hate the recent state of ICE vehicle leasing. They have become amazingly offputting and snarky toward new users like yourself. It makes your first experience with LH terrible. Just the way they like it.
@AutoCompanion is offering 9% off new X5 and should be able to beat the deal you posted.
@IAC_Scott can also assist with a better deal on a new X5.
Leasing a brand new X5 is by no means a cheap thing or an ultra-wise financial decision. But you already know this, so please enjoy your X5, and possibly another new X5 in 2027 even with people like Max wanting to crap on your parade.
I’m here to answer his question about what a good deal on an X5 is, not to lecture him. I don’t feel the need to reply directly to this because I have never claimed this is normal, I just try to help people understand what a good deal is for the car they want.
@M.J.Sil, this is not a great deal, you’re getting 6% off with marked up money factor, with the markup, you’ll want to shoot for at least 9-10% off MSRP if you want a solid lease deal.
We can do much better but honestly you should just buy a used car even though you want a new BMW.
Max is the voice of reason. He is the little angel sitting on your shoulder while the devil tries to convince you to pay over $1K a month on a vehicle you would likely be better off buying than leasing. Can he interest you in a nice iX maybe?
Hence why I went the EV route and convinced my wife that saving 300-400 a month is a much better option despite some of its challenges of owning an EV.
Right, if @M.J.Sil is shopping for the best BMW “deal”, then an iX could/would be a better idea. But if he is shopping for the best X5 deal, then the buy/lease question should be evaluated in this instance.
This forum’s “trusted” have been perpetuating a myth that financing ICE is always better than leasing ICE. But the issue isn’t magically resolved by changing how the money is borrowed. Saving money comes from getting into a used vehicle. In most instances, “savings” will not come from choosing to take on a loan on a new vehicle.
The underlying issue is that being in a new vehicle is expensive; and this is magnified with the luxury brands. For some reason the trusteds love to lecture and lecture and lecture people about how being in a new car is a bad financial decision. They keep talking down to people like their purchasing habits are bad. But it’s this holier than thou behavior from the trusteds that is garbage.
Here’s the side-by-side I shared with this “trusted” last month on a X5 of lease offered by a broker vs loan-scenario. Zero taxes for simplicity. This broadly even comparison of the two approaches on a new car ignored by the “trusted”. They’d rather keep parroting how a loan is better than lease on this new X5.
The MF is a bit worse today, but the result is the same. I’m also using the previous resid, not sure what it’s changed to now. The 5 year loan is at what my CU was offering on Tier 1 (5.5%) 60 month loan. The lease DAS equalizes to the down payment less the first lease payment.
Also, I’ve removed the disposition fee since my presumption is the lessee is going to keep leasing… while the buyer/seller is going to keep buying and selling at the same rate and is somehow able to exit a loan-vehicle with no reconditioning or pack.
TLDR: The only time financing starts to come materially ahead of the lease is if the person decides to hold the vehicle after 3 years. But in 3 years, this X5 will be a used X5. So to “save money,” the frugal financial move is to keep driving this used vehicle. The logic of buying used to save money is where the savings comes from… getting in a new X5 today is going to be expensive no matter the approach. But some people want a new X5… so what should we do?
Some trusteds are choosing to mock people for wanting to be in a new X5.
There are plenty of purchases I make that can’t be justified- lol. Going out to eat for example. Everyone chooses different ways to save money. My father in law questions my expensive leased cars as you look at his 35’ boat with three high end 400 hp motors off of it that sucks money out of his wallet to no end. Hard to justify much of it and in reality we should all be driving around in 15 year old civics and living in 1200 square foot homes
Yeah trying to make the smartest financial decision at everything wears thin over time. I thought this forum was a place where people who liked to lease cars could discuss leases. Most enthusiast car forums and fattest wallet forums decry leasing. But LH embraced it for those that want new cars.
But look at this, some people are worried about being “flamed” for discussing a lease on LeaseHackr. Unfortunately the flaming is coming from the most trusted users. Imagine if someone was worried about being flamed for discussing cakes on a baking forum.
Oh I completely understand and circumstances, motivating factors, etc. will be different for everyone. In this specific scenario, I may prefer the loan option because of the flexibility and choose to assume the depreciation and diminished value (in the case of an accident) risks, but the OP may not want to assume those risks.
I’m starting to lean the finance route however the rate I’m being offered doesn’t seem very good (in the 7s) compared to what I’ve heard some folks are getting in new cars. Going to press on the msrp and try to get a decent rate and see where it takes me!
Sometimes it’s not about getting the cheapest deal but rather getting the best deal on a car we want. The whole spending $42k on a $73k car is helpful insofar as to say that you can do better on that $73k car. But trying to deter someone from what they want altogether should not be the point. The OP should definitely work with a broker here to get an X5
Why are so many people jumping to the idea that a broker is the only way to get a better deal? Wasn’t the point of this forum originally to arm people with the best information in order to be able and negotiate deals themselves, but in the case that they were feeling lazy, then they would adjust that to working with a broker and have someone else do all the leg work.
listen to @IAC_Scott first, and see if you can negotiate more off the sell price. He already have you a ballpark range for a good discount. Ask around to other dealers (this is really the largest factor in seeing who will play ball with the offers). Shop outside of your own local market if you have to. Just be prepared to send a bunch of e-mails and don’t give up. The best deals are going to be on demos or service loaners if you can find one, and would more likely be above that 9-10% off mark.
You bring up an interesting point… if we ignore the unicorn (demo/loaner or EV) hunt for a second, most ICE cars people want to get on LH are simple reductions off MSRP.
It’s considered bad form (unwritten rule) for a prospective LH user to simply go into the LH marketplace, find a deal, then spam their local dealerships asking them to match the deal economics on a particular stock unit.
In a similar token, if the OP had an easy time getting 9% off MSRP at the buy rate MF then they wouldn’t have even posted on LH to begin with.
So what is the right point to simply go lazy and hit up a broker?
In my personal experience, I spent hours trying to beat down the transaction price on a BMW i4 in NorCal last year. Wasted so much goddamn time. Then one day some @IAC MF-er lists my exact target build at an effective monthly pre-tax cost like $30 less than what I got on my slightly sub-optimal i4. LH has brokers handing ridiculous deals like freaking candy.
