Lease Question

[SandmanTR]

Hello all.

Long time, first time...

...I'm eyeballing a '08 X5 with a lot of goodies but my local dealership is trying to steer me away from a lease (even though my business is paying for it) into one of their Certified Pre-Owned.

Current Money Factor on the BMW lease is 0.00279 or 6.7%.

Residual is as follows:

36 Months - 53%
30 Months - 58%
24 Months - 63%

This dealer has a lot of Certified Pre-Owned X5's on the lot. Sales dude told me that they are trying to shy away from SUV leases because they don't want them back in 24-36 months with the "big vehicle" market being what is is right now.

Has anyone else come across this sales mentality at your local dealer???

Thanks!!!

[E61Silver]

A lease is fine, after 3 or 4 years you give it back.

Resale should not be a dealers problem.

I would not get a 07, since it is the first year of the model.

[y5choi]

I would think that the dealer is being honest with you, because in essence, they are telling you that you probably won't want to an owner later on if you try to sell. If you plan to drive it to death (say 7 years +) then maybe it can be better to purchase a pre-owned but if not, lease is just fine.

and yes, as an 07 owner, i would suggest that you opt for an 08. The little bugs that a new model year can have is a bit bothersome.

[pelucidor]

I think the dealer is trying to get rid of one of his many CPO vehicles - in most places there is no problem without getting a lease on a new X5.

Today I just ordered well equipped ($14k in options) X5 on a 36 month/15k miles a year lease - I had 7 dealerships fighting for the deal on the phone and via email in the PA/NJ area. The residual is 53% as you mentioned.

BTW there is a $2505 Premium Package Option Credit until September 2nd - make sure they know that you know about that - the Premium Package is 'free' to the dealer and should mean $2500 off for you too (before negotiations even begin - I ended up finally getting my vehicle for about $1500 below invoice because of this).

Also the Money Factor through end of August is 0.0020 for existing BMW Financial Service customers (i.e. have current BMW leases) and 0.0024 for people new to BMW like myself. Your number seems high. Send me a PM if you want more info...

[SandmanTR]

Thanks all! We decided to purchase an X5 and did so yesterday. The deal was as follows -

2008 3.0si X5
Premium Package
Technology Package
Sport Package
Rear Comfort Package
Running Boards
Power Front Seats
Heated Front Seats
iPod and USB Adapter

Total out the door @53000 @ 2.9% APR. It's a great time to do a deal!!!