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View Full Version : X5 lease questions....


amazonb
01-09-2008, 08:24 AM
Forgive me all for the following post, but I am becoming quite crazy here.
My two options since I have promised myself a BMW this year (for being such a good girl and for turning 40!)
Option a: Keep my 2000 XT Tahoe and lease a 135
Option b: (What I really really want but am petrified of the money factor) Trade in my Tahoe and Lease the X5 3.0

Now, I have figured that trade for my Tahoe would be between 10,5 and 11,5 (67K in excellent condition)
However, not ever having leased before, what happens with a trade and lease option?
I am leasing because I literally put between 6 and 8 thousand miles per year on my vehicles, so I think on an expensive vehicle like the X5, that would be the best option.
I am not looking for lots of extras by the way....
I would like the 3.0 with leatherette (have dogs), fancy seats and satellite (MSRP 47,2)
Thoughts, ideas?

jasonrhcastle
01-09-2008, 10:38 AM
Well, "fancy seats" are comfort seats I am assuming. Therefore, you would have to get leather. Secondly, any money from your trade would go to pay off what you owe (unlikely that you do owe anything in your situation) or into your pocket/savings/money market account. Never put down money for a capitilized cost reduction (i.e. buying down the cost of your car) because you then lose that money.

As far as the money factor, you can buy down the interest rate or money factor with multiple security deposits. You can make up to seven of these to buy down the rate by a factor of .00004 to a total reduction of .00049. I did this with my new 2008 4.8. It had an MSRP of 71000 and I got it at $500 over cost. Paid $6000 in REFUNDABLE MSD's and got a rate reduction of .00049. So, significantly beneficial.

Hope it helps...

Jason

amazonb
01-09-2008, 05:19 PM
Well, "fancy seats" are comfort seats I am assuming. Therefore, you would have to get leather. Secondly, any money from your trade would go to pay off what you owe (unlikely that you do owe anything in your situation) or into your pocket/savings/money market account. Never put down money for a capitilized cost reduction (i.e. buying down the cost of your car) because you then lose that money.

As far as the money factor, you can buy down the interest rate or money factor with multiple security deposits. You can make up to seven of these to buy down the rate by a factor of .00004 to a total reduction of .00049. I did this with my new 2008 4.8. It had an MSRP of 71000 and I got it at $500 over cost. Paid $6000 in REFUNDABLE MSD's and got a rate reduction of .00049. So, significantly beneficial.

Hope it helps...

Jason

What fabulous and helpful info...thanks very much. I do like the idea of the multiple sec deps....very great advice:)

suplink
01-14-2008, 02:49 PM
What? BTW what is the current money factor on the X5 3.0? 3yr/45k? And the residual? How does all this work? Is the MF used on the Selling Price or the MSRP? Where does the Residual come into the pic? And, does it all really matter if one gets a dealer to get you your vehicle at $750 over invoice?
Thanks,