Interesting Observation on Current Discounts

[DumboX5]

Here is something interesting for those how have leased. The current incentives from BMW plus the dealer discounts are essentially amounting to about $6.6K to $7K off of MSRP for those who are ordering the vehicles.

I ordered and leased the vehicle in April with an early June delivery and if I re-calc my lease with the current discount, residual, and interest rate...the lease I got with $4K off MSRP is better by about $20 a month.

My point being if you're going to purchase, this is a better deal; however, for those of us who are leasing....it's not any better. It's just making you whole on the residual drop and interest rate increase.

Anyway, random thought....

[PasPar2]

The residual always gets worse as the model year passes unless there is support from the manufacturer. The above is generally true across the industry. We are pricing a GL now and the new ones are MUCH cheaper then the 08's to lease.

[y5choi]

thanks for your post. I figured that when BMW started to drop the finance to 0.9% i knew it wasn't just because they were feeling generous.

[ozam]

the X5 and entire SUV market is very unstable and in a state of flux. current pricing makes the 2008's very attractive, but the dealers have yet to adjust their 2007 used car prices. buyers are failing to recognize that financing/opportunity costs on a used car will add close to $5000 to your five year cost of ownership. in addition you will end up with a car that has a lower residual and greater maintenance costs to the extent you miss out on nearly half the free maintenance period for new purchases. any one else noticing this?

all that being said is there a consensus on the target price of a new X5? the best walk out price i am seeing is around invoice.

[DumboX5]

Ozam - if you're in ATL, there is a dealer off of 275 by Cobb Parkway that had about 15 or so x5's on thier lot. I bet if you picked one off there you'd probably get about $8K off sticker. I think $4K to $5K off MSRP on a new order is what folks are posting.

I got $4K and I ordered in April of this year.

[ozam]

I do live in Atlanta. I think you are referring to Global BMW.

I am being quoted $4,000 to $4,500 under MSRP but it is still over invoice which is surprising given the current state of SUVs and the end of the model year!

Normally I wouldn't be so aggressive regarding prices, but I fear the car's value 5 years from now is going to be very low. Not that I plan on leasing, but they are using a low a 30% number as the residual. I better save all I can on the front end.

[DumboX5]

You could potentially look at leasing as a hedge. I believe the current residual on a 15K miles a year lease and 36months is 54% or 55%. If you lease and you like it and don't think you're going to take a huge bath, pick it up at lease end...and the purchase price is negotiable.

If you see that the Bush legacy lives on and we're paying $6.50 a gallon for gas, then give it back.

What do you think?

[ozam]

I am not an advocate of leasing. I take care of my cars and hold them for at least five years. That being said, if there was ever a time to even consider that form of financing it would be now. While it may be more expensive it does cap my exposure. At the end of the day, driving a car cost X amount of dollars, I just want it to be a low as possible!!!

In theory the best route would be to find an 07 or 08 X5, under warranty, at auction. Unfortunately there are very few black X5 3.0's showing up. Part of the problem is that the new model is less than two years old so the flow has not begun. Prices for 06 and older are dropping like a rock.

Unfortunately, I need a new car now so I am not sure how much longer I can hold out!!