Deal check: 2025 BMW X5 xDrive40i

Ask the Hackrs
1

Hi there!
Looking to get a new 2025 BMW X5 xDrive40i in Texas. I’ve never leased a car before, and dealer is saying leasing is a better option than financing.

  • MSRP is $76355 including Parking Assist, Climate Control and Premium Package. Also included in the price are some accessories - Luggage compartment mat, All weather floor mats, Wheel Locks and First Aid Kit.

Here is the lease deal we’re looking at:

  • 10% off MSRP + $1.5K in BMW rebates through employer
  • 39 months, 10K annual miles
  • $1020 per month with $3750 DAS
  • 6.25% TX taxes are rolled into the monthly payments
  • Fees: $925 (Acquisition) + $800 (Dealer) + $1000 (Government) + $495 (Disposition)

On Financing,

  • 10% off MSRP + $1.5K in BMW rebates through employer
  • 1.99% APR for 48 months

Need advice on the following:

  1. Is the lease deal worth taking? As mentioned, this is our first time leasing so not really sure how to evaluate if this is a good deal.
  2. Between leasing and financing, what would you recommend?
1 Like
2

I’m coming up only about 20/mo less when I do the math, if this is a local offer, it’s a very solid deal and I’d take it.

That said, if you want to own the car, not sure why you wouldn’t finance it given the 1.99% rate.

The effective APR on the lease is 4.32%

2 Likes
3

Thanks so much! We really like the vehicle and ideally would own it for ~5 yrs. We’ve heard repair costs can be high on the BMW, so that would be the only reason to lease.

We though APR makes sense given it’s at 1.99% but we were not sure why leasing is so widely recommended. We also contacted a broker recommended by a friend, who also pushed us towards the lease because the depreciation may be higher than we think but we have the same doubts given the APR is pretty low.

4

Buy it and you can always extend the warranty.

The sales guy wants everyone to lease because you’ll be back in 3 years rather than 5.

2 Likes
5

That makes so much sense!

6

The benefits of leasing can fall into two buckets.

  1. Purely monetary; some leases are “hackable” to the extent they are massive bargains compared to buying. EVs are a great example today since leasing gets a $7,500 incentive from the lender, and the residuals are often subvented (supported with money from the automaker) so the lessee gets an amazingly low payment.

  2. Always being in the newest vehicle with warranty and white glove service. Leasing is a way for someone to make sure they can keep effectively renting the best cars and having the lowest “pain” of ownership possible. It’s not so much about reliability so much as valuing the new-ness. After all Honda is the most leased (by volume) brand, and their vehicles are very reliable. BMW offers great loyalty incentives to keep folks rolling into a new lease. Granted, this is an expensive way to always be in a new Bimmer, but some people really value the utility of a new Bimmer.

1 Like
7

That makes sense. We usually hold on to our cars for over 5 yrs so newness is not really a decision factor for us. The monetary benefits would be the only reason why we’d take the lease route but in this case, not sure if that’s a value proposition in this case given the APR rate and the fact that we’re not eligible for EV incentives either.

8

Sounds like Scott’s recommendation makes sense for you!