So Cal - 2016 BMW X3, MB GLC300W, or another SUV that leases well

Been browsing this forum for awhile, and posting for the first time. I’m looking to get a mid-size SUV for my wife to haul around the two kids. She works from home, and will drive this car 3-4 times per week, so only expect about 600-800 miles per month on the car. I’ve always bought cars, so leasing is totally new to me. We live in Orange County, CA and typically keep our cars for 6-8 years. What is leasing very well right now in this SUV segment?

We test drove and liked both the 2016 BMW X3 and the 2016 MB GLC300W, but don’t see aggressive incentives in either of these out there. The BMW dealer was selling $2000 below cost, so it seemed like an OK deal.

We’re not set on any particular make or model. Just looking for something with high residuals up to $400 per month lease payment (or I am willing to buy if there’s a great incentive to do so). Appreciate your opinions.

GLC’s do not lease well. X3’s lease very well. You will find there is about $150 a month difference between two similarly priced cars.

I think the 2017 X3 leases better than the 16. You should also be able to get it for about $2k under invoice. Search the dealer websites for a car you like, call today and be ready to get there today. It is the best day of the year to buy a car.

Aside from a select few deals done by LH Hackers, there are few leases that can be done repeatedly & yet be cheaper than owning long term. Especially market segments that have enough demand (i.e. SUVs and Xovers) to preclude any need for the OEM to throw huge amounts of lease support behind the deals.

We decided to move forward with the BMW X3 sDrive. Does this seem like a good deal from an X3 with $41,195.00 MSRP (Southern California)?

We’re negotiating the vehicle cost right now based off of Dealer Invoice. I followed advice from @Ed_Churchward and @ng0 that the selling price should be minimum $2k under dealer invoice plus any eligible incentives/rebates .

$39,055.00 Dealer Invoice
$(2,125.00) Dealer Discount
$(1,000.00) $1000 Factory Incentive
$80.00 Doc Prep
$36,010.00 Pretax Subtotal

$2,790.78 Sales Tax
$29.00 Elec Vehicle Registration Fee
$341.00 DMV - Title/Registration
$(1,000.00) BMW Corporate Fleet Rebate/Discount
$38,170.78 Total Out the Door

The other thing I noticed is the $1000 BMW Corporate Fleet Rebate is being included post-tax as part of a downpayment instead of pre-tax which basically adds $77.50 to the overall cost and also $29 for Elec Vehicle Registration Fee. Not a huge deal, but curious if that’s normal or can be negotiated.

I’ll work on the lease vs. financing vs. paying cash next. We’re also in the process of purchasing a home and don’t want to show more debt as that may impact our home loan rate.

They should not include Sales Tax in this deal, Sales tax is not charged upfront in California… So the Out the door price is inflated. Based on your numbers it should be close to 37k not 38k

You should not be making any large purchases until you close on your house! My parents are closing on one next month, and are waiting shop for a new car until afterwards. Your mortgage broker should have disclosed this information.