Hey everyone,
I’m considering an X5 x40i fully loaded (DAPP, PAP, Exec, ZLS lux seating) so MSRP comes to $81,695
I didn’t qualify for any of the incentives (Mil, Corp, loyalty etc) The Maryland dealer that I’m working with is offering these pricing options at MSRP:
This is what I got when I asked for a full breakdown, was hoping to see things like MF, finance % etc.
I can certainly re-inquire, however this seems to far off to what brokers here can help find base $65K X5 40 for $868 with 6% off MSRP or $89K X5 50 for $1336 with 2% off.
I’m open to waiting 3-6+ months to get the best deal, my 10 year old TL is running soundly, just old with the tech (ADAS, 360 Cam) . Gave up on the i4 as I will not get the tax rebate in time.
Thank you! Also curious on why there don’t see to me any offers for Porsche’s in general, wanted to compare the Cayenne.
My local dealer isn’t keen on budging for the BMW so I’ll likely go through with a LH broker, with a much better offer leasing at $1,162 vs finance at $1,491. LH Calculator
Other than the fact that I have to pay full MD tax on the whole are there any other good reasons to finance?
With a lease I would have the option in 2025 to buy the car out at RV 52% $42.4K and get a $8.4K MSD refund, with 60M financing I’m paying $329 more per month first 3 years, then in year 4 I have to also cover maintenance and in year 5 I am out of the warranty period.
When you buy a car using finance/cash, you can always sell the car anytime as you like. In fact, you can sell to any used car dealer/individual whenever you like. You can even sell it next day even if you do have 60 months financing. With BMW lease, you will face alot of restrictions when it comes to sell to a 3rd party dealer. To compare the lease vs finance - you have to check the MF and finance interest. If leasing MF’s interest is alot more than finance, then it makes no sense to lease plus pay the acquisition fee.
TLDR - Lease interest and fees for 36m are $3,251 more than financing at a Credit Union for 60m
Lease has an initial MF 0.0019 (4.56%), 7 MSD ($8.4K) drops it to 0.00162 (3.89%). Breakdown: Rent Charge: $6,986 + Non-residualized Fees = $1,494 = $8,480
BMWFS finance APR is 3.99% ($8,479), credit union APR would be 2.49% ($5,229) both for 60 months.
Both options have Non-residualized Taxes of $4,675, detailed comparison of BMWFS Lease/Finance are in this LH Calculator.
So to keep my TCO lower I would likely sell after 3 years, to avoid paying maintenance and repairs from years 4-6, otherwise I’m open to owning the car for say 7 years.
Other factors influencing TCO are if I want at least a committed sell price of $42.4K, in case market values are much lower by 2025.
So it seem the key question for me is, if it’s worth paying an extra $3,251 to lease and get a price floor and not pay for maintenance and warranty in years 4-5
Credit union drops the interest to 1.99% for 36 m, and interest is then a much lower $2,508 compared to lease interest and fees of $8,480 for 36 months.
Lease RV is 52% $42,481 and for that privilege you pay an extra $5,972 compared to 36m finance, so would break even price be ($42.4K + $5.9K) $48,453?
You don’t have to do a 36 month loan to have a 36 month holding period. Stick with the financing terms you would consider.
The total cost of ownership of the lease is a fixed value. What is it?
The total cost of ownership of the purchase is a direct byproduct of the selling price. What selling price, at the end of 36 months would have an equal total cost of ownership to leasing, if you had used the financing term you wanted to you?
You’re not going to answer that question by trying to compare the rent charge to the interest payment.
Agree! 6 years leasing at current rates is around $79K, where as keeping it for 6 years I at least get something back when I sell it. Though I thought BMW didn’t offer extended warranty and instead resold you some insurance.
No. The question is what would the selling price have to be at 3 years such that your total cost of ownership to purchase would be equal to your total cost of ownership to lease.
You would need to evaluate the out the door cost to buy, your upfront costs, the sum of your loan payments made, and then the loan balance after 36 months.
