Hi all - we have one vehicle and we need a second. I’m wondering if I should buyout my 2020 BMW X7 lease. If I use a 6-8 year loan from a credit Union I can probably payoff this lease and buy a second car for less than I pay per month on this one vehicle. It seems like the new models are leasing at significant premiums and I’m trying to figure out the most economical solution.
The car details for my BMW x7 are below. My monthly payment is $956 all in . I’m in Texas and I know the tax is wonky here versus other states. I’m wondering if anyone has advice. I’m interested in a Kia Telluride or VW atlas for the second car. I’m not sure of all the variables I should think through.
BMW 2020 x7 i40
Lease $956 per month with tax
36 months/ 12k
Correct, X7s are terrible to lease right now. Is a XC90 an acceptable alternate? There are decent deals on them right now. I replaced a X7 with a Grand Cherokee L Summit and happy with the vehicle. I couldn’t stomach paying $1,200/month for a new X7 with limited options.
Yes I would consider an Volvo XC90, VW Atlas, Kia Telluride, Grand Cherokee L or anything else people recommend I check out… I need to be able to comfortably fit 2 car seats
Never take out an 8 year loan for a car. Hell even a 6 year loan is too much IMHO. Maybe if rates go back to the halcyon days of mid 2020. But at current rates of 4-6% for used cars, hell no!
You’re looking at this incorrectly by monthly payment. When you lease that’s all you care about obviously. When you buy that’s the last thing you should care about. Dealers get fat and happy because the sell monthly payments. Never negotiate a payment when buying and never think in terms of payments when buying.
And yes I was a finance major, can you tell? It’s why my wife never lets me talk money with her family.
Thanks for all the feedback and analogies I get it.
Where’s the best place to check resale value comparisons?
We like how the x7 drives versus the xc90. If I would be saving a lot on the car though and it had better resale I would consider others.
If I were to replace the x7 I would be looking at the Lexus LX the RX is too small. Would welcome suggestions of others to consider in addition to the telluride that are better value and drive well.
For the second car we were thinking telluride or aviator or defender. Would welcome suggestions
BTW, I was amazed by how brazen some dealers are with their utter disrespect for the MSRP…I have had some dealers say MSRP and their “dealer internet price” are the same thing…even thought there is a 20% difference!
There’s always the GX since you’re ok with the body-on-frame chassis.
If your spouse/SO doesn’t care about the underlying mechanicals being the same, the two of you could do Telluride and Palisade since they’re outwardly different enough.
PS. Don’t finance the X7 without considering what is one of the biggest values embedded in a high dollar lease: the ability to walk away at the end if it’s under water.
The problem with a BMW lease, is that BMWFS will not sell the vehicle to a third party. That means you have to buy it out first and then resell it. Otherwise, you will have to find a third party/wholesaler that will process the buyout on your behalf (names slip me now, but there are a few listed on LH).
Second problem is that auction prices for X7’s have dropped drastically… I saw something that referenced X7 prices in the mid-$50k, regardless of options. You may want to hit up the online buyers just to get a price and go from there (e.g. Carvana, vroom, shift, GMTV, etc)
Good luck… I have a soft spot for the X7 since I sold mine in January
Most people see an exterior of an “SUV” and assume they’re all the same. They’re not.
Most are actually crossovers/unibodies like the X7. To want an LX means you have to be ok with the pros and cons of the other type (body on frame).
All else being equal, a BOF will have less space inside than a unibody/crossover with the same exterior dimensions. Other differences:
Modern crossovers present a compelling proposition, combining the seating capacity and height of an SUV with the refinement of a passenger car. But traditional body-on-frame sport-utes are, by and large, still better for off-roading and towing. Fortunately, there are still a number of these old-school SUVs on the market. And, of course, the reborn Ford Bronco will soon to re-join the party.
Crossovers tend to drive more like cars. They typically ride smoother, handle better, consume less fuel, and score better in crash tests than pickup-based sport-utes—all while offering the height and quantity of seats that consumers look for in an SUV. That’s why automakers are offering more crossovers, while replacing old frames with new unibodies.
There are, however, still a handful of old-school SUVs on the market with more to come—with good reason. Body-on-frame SUVs are more rugged, meaning the chassis of the vehicle is separated, but bolted to a steel frame by which the engine, wheels, suspension is attached. And with extendable frames, some come in multiple sizes. If those features matter to you more than on-road driving manners and fuel consumption, these are the trucks you’ll want to look at.
This is super interesting. I didn’t realize this can you give me an idea of a non body on frame or true sport utility is that like a wrangler or cord explorer? How can I tell the difference ?
The Explorer moved to a unibody platform several yrs ago.
Test drive a BOF car and then check the passenger and cargo capacity compared to a unibody SUV. And then check the fuel economy figures. See if that all works for your needs.
If you don’t need to go off road or have to tow a ton, BOF is overkill.
It’s why my wife never lets me talk money with her family.