X5 Purchase Decision - New, Used or Wait?

[Wagner]

IMO below.........

A few specific questions -

* When, if ever, will more aggressive incentives kick in on the new X5s? At that point, will inventory be fairly thin on popular colors / reasonably optioned X5s?

Never, I would be shocked if BMW offered you an incentive to buy an X5, they are selling very well. As long as BMW continues to make the X5 and it sales are high, the color options will not dry up.

* Any one have experience with executive demos? Do they tend to be in pretty good shape? Is there enough volume to find what you're looking for option-wise, or is it pretty much hit or miss?

Can't help you there but I'm assuming if it is a demo for BMW it is pretty well loaded with feature buyers generally pick up. That is the point of a demo, to sell the product.

* In terms of depreciation, do you think the old style X5s will take a big hit when the new X5s come out, or is this already being reflected in the price of new and used X5s in the market?

There will definitely be a drop but I wouldn't consider it anything to turn you away from the X5. It will always have the BMW Roundel and that will keep the price in good standing.

* Is there any difference in the reliability of the '05s and '06s, or were most of the kinks worked out by '05?

From what I've heard most were worked out once you got out of '03.

* Which approach do you think makes more sense - negotiate a price within $1k of invoice on a new X5 or see what I can find in an executive demo (acknowledging that I basically want what I want in the way of options)?

You seem to be very pre-occupied with the price of the vehicle and what it is worth (not a bad thing) so if I were you I would be looking at CPO'd vehicles. You can get them for a much better price then new and have a 100K warranty, which will be important since all your funds will go to that new baby.