Ya, hard part asking for advice here is that there are brokers, dealers and others who work in the car industry as well as buyers.
I know the smart move is to grab an EV while their so heavily incentivized, but the Audi q8 eTron is the only one that doesn’t look terrible and I can’t do the sub 300 mile range
The IX is a great car as long as an EV fits your lifestyle and have a home charger. The grill isn’t that bad once you get use to it. We get a lot of complements on ours. We came from an X5 and have zero regrets so far.
let me guess- you are not a business owner…a lot of assumptions there.
Most section 179 is rampant tax fraud and it’s honestly offensive. Idiots buying G wagons claiming it’s for business use. Idiots lying about what percentage of the vehicles use is actually business related. I could go on and on. It all works until you get audited.
What is a good deal then? The price is the price. If you want an x5 that’s what you’re going to pay. The days of a 500 dollar ICE luxury suv that stickers for 65k are over. If you want a crappy electric one then those are readily available for very cheap.
How do people expense the finance for the X5? Section 179? My CPA likes leases- maybe just for their simplicity.
Maybe I’m overestimating my tax benefits- but I see 35% federal and 10% state that is avoided?>
I am far from an expert so others feel free to correct me. I own and lease vehicles/equipment for our business. The asset is depreciated. The only write off on the loan is typically the interest rate. The 179 is more of a pain in the ass- but its more of my accountants extra work. Every year we have to decide if we want to take the new purchase depreciation in 1 year or spread it out. This depends on what our tax exposure looks like and we also try to guess what future taxes might look like. To me the pain is when you sell it. You have to pay tax on the sale of the asset. So yes, I agree the lease is pretty much straight forward and easy.
HEY NOW “crappy electric one”? New EV owner for my wife- but so far I see nothing “crappy” with her IX. We actually enjoy it more than her X5 so far. Fast, quite, efficient and the tech is pretty amazing
ICE vehicles generally don’t have demand issues like EVs right now. Brands don’t need to drive ICE sales with huge incentives and discounts.
Also ICE sales(profit margins) are propping up automaker financials. ICE msrp’s will continue to climb as they have to sell/lease EVs for pennies on the dollar. Don’t expect cheap ICE leases anytime soon.
Manufacturers are forced to sell EVs at a loss to meet government regulations. To make up for the loss it has to get more profit from ICE sales.
You don’t necessarily have to 179 it. Accelerating depreciation only makes sense under certain circumstances.
You may want to ask your CPA for a comparison
And at the end of the day expenses are expenses. They don’t save you money. A $700 lease is a lower expense than a $1,000 lease — that’s really the only way to think about expenses.
The other day someone literally said about their lease “spend more to save more” — one can only laugh at their ignorance.
It’s like just make 13k a year and pay no taxes, irs hates this hack.
We don’t know about your situation. But in @Pinhigh27 defense, when we get down to nuts and bolts of people talking tax write off on leases here, I’d say the majority are either intentionally or unknowingly committing tax fraud. From my professional experience id also agree with @Pinhigh27 that most section 179 write offs are fraudulent.
The X5 is more fun to drive but it seems like an at the margin difference compared to the difference between a sedan and X5 or XC90. That’s especially before you step up into the more expensive engine option X5s.
I don’t love my XC90 Recharge Ultimate trim. But I love the value of my sub-800 all in payments despite the VA taxes.
I am in the same boat here, had a 2018 X5 68k msrp that i lease for 630$ per month then switching to q7 for 675$, now coming back lease is up and they want 950$ -1200$ for the same thing. Cant stand the IX, especially interior.
lol I have a '23 45e right now and I’m trying to swap it for an EQS for the third row.
With the X5, I think it’s more about BMW creating demand by manipulating production volume. X5 sales are actually down, year over year, yet inventory never builds up because they have loyal customers willing to pay the premium prices.
In the past, X5 was a good purchase and hold candidate, because it held value fairly well. But now, with the inflated MSRPs and greater depreciation, even a “bad” X5 lease can yield a lower TCO then purchasing. You are gonna loose 50% one way or another.
In most states 4-year ownership cycles would make more sense, with a tax benefit on the next one for trading in.
X5 used to be the flagship suv, now it’s x7
Kind of like when my wife comes home from the store and tells me how much money we saved.
How much smaller does it feel than the x5? Do you have any car seats?
