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X5 E70 (2007 - 2013)
E70 BMW X5 produced between 2007 and 2013. Discuss the E70 X5 with other BMW owners here.

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  #1  
Old 08-15-2010, 02:44 PM
beammerkey beammerkey is offline
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Location: Ny
 
Join Date: Aug 2010
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Mein Auto: Mazda
Just ordered my X5 35i Premium...good price?

Hi Everyone!

Just ordered my dream car 2011 X5 and i would love to hear your opinions on whether I got a good deal or should I cancel and look for a better deal.

I ordered it with the Convenience Pkg, Technology Pkg, 3rd row seat, rear entertainment, heated front seats, running boards, satellite radio. MSRP is $62,075. and the CA is charging me $58,540. It's $500 over invoice price. Is this a good deal or can I get a better deal?

I'm also doing the BMW select financing (balloon payment at the end). I qualified for a 1.9 interest rate. If anyone knows about this and advices against it please let me know.

Last edited by beammerkey; 08-15-2010 at 02:45 PM.
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  #2  
Old 08-15-2010, 02:55 PM
nyranger74 nyranger74 is offline
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Location: Long Island
 
Join Date: Jun 2009
Posts: 587
Mein Auto: 2011 BMW X5 50i M Sport
Im doing a Select and I think its a great option. Lower payments, you own the vehicle and can get rid of it at any time.
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  #3  
Old 08-15-2010, 03:05 PM
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SARAFIL SARAFIL is offline
I know a thing or two...
Location: Northeast USA
 
Join Date: Feb 2003
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Quote:
Originally Posted by nyranger74 View Post
Im doing a Select and I think its a great option. Lower payments, you own the vehicle and can get rid of it at any time.
Be careful about that one. Yes, you have the same "ownership" interest as if you had taken out a traditional loan, and you also get many of the benefits of "ownership" vs. leasing. However, It's more difficult to "get rid of it at any time" with a Select because you're much more likely to be upside down on your loan, meaning you will owe more than the market value of the car when you try to sell it. Also, you are obligated to make the final payment -- either by paying it in full, refinancing it (which means you're paying interest twice on that amount), or trading it in and paying it off (but once again, it might not be worth as much as the final payment).
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2013 BMW 335xi Sedan
Estoril Blue / Black Leather

6MT, M-Sport, Premium Pkg, Cold Weather Pkg, Dynamic Handling Pkg, Tech Pkg, HK Sound, M Performance Exhaust, M Performance Power Kit

Former: 2011 335xi Coupe -- 2009 MCS JCW -- 2006 MZ4 -- 2002 325i -- 1997 318ti -- 1991 318i

Last edited by SARAFIL; 08-15-2010 at 03:07 PM.
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  #4  
Old 08-15-2010, 06:04 PM
RaleighX5 RaleighX5 is offline
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Mein Auto: 2011 X5 35i Premium
I paid $57,440 for a 35i Premium that listed at $60,925. That was $900 over invoice (and includes MACO and training/service fee totaling $500). Sounds like we got similar deals based on the math...
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  #5  
Old 08-15-2010, 07:56 PM
ard ard is offline
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Mein Auto: '12 X5 35d/E39M5/996TTX50
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Originally Posted by SARAFIL View Post
, refinancing it (which means you're paying interest twice on that amount),
What exactly do you mean "paying interest twice'?!?!??

You pay interest for the time you are borrowing- when it comes time to refinance you pay interest for the next period. Are you claiming that somehow you pay interest twice for the same time period?


Are you a BMW salesman? I seem to recall you really pushing leases.

PS Agree you can be upside down on financing with balloons...BMW makes the residual very low on their leases there is almost no chance of that happening these days. And of course the customer pays to let this happen- scaring people with uncertainty about 'future costs' is a great way to move them into expensive products with high salesperson incentives....

Last edited by ard; 08-15-2010 at 08:01 PM.
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  #6  
Old 08-15-2010, 08:04 PM
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SARAFIL SARAFIL is offline
I know a thing or two...
Location: Northeast USA
 
Join Date: Feb 2003
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Mein Auto: '13 BMW 335xi
Quote:
Originally Posted by ard View Post
What exactly do you mean "paying interest twice'?!?!??

You pay interest for the time you are borrowing- when it comes time to refinance you pay interest for the next period. Are you claiming that somehow you pay interest twice for the same time period?


Are you a BMW salesman? I seem to recall you really pushing leases.
On a BMW Select, you pay interest on the entire amount financed including the balloon amount. At the end of the Select, if you refinance the balance, you will pay interest on that amount again. Hence, you have paid interest on the amount of your balloon payment twice. You also don't have a walk-away option, and there is no guarantee that the car will be worth the balloon amount -- many salespeople fool people into thinking "you can just trade it in when the balloon is due" without mentioning that doing so might involve thousands of negative equity.

I am trying to be a "consumer advocate" on the potential downfalls of a Select that no one ever thinks about. I saw many, many customers get fooled into a Select thinking that they were getting an amazing deal and at the end of the day they ended up paying much, much more than if they had taken out a traditional loan for a longer term at the time of purchase. While many people now understand how a lease works, it seems like many people don't "get" the Select.

A BMW Select can be a great way to buy a new or used BMW with a reasonable payment if you understand what you are getting into. I just want to make sure that everyone understands that it has its weaknesses as well.

Edit: I have not been in the BMW business since May 2007, and I have been out of the car business entirely since June 2009.
__________________
2013 BMW 335xi Sedan
Estoril Blue / Black Leather

6MT, M-Sport, Premium Pkg, Cold Weather Pkg, Dynamic Handling Pkg, Tech Pkg, HK Sound, M Performance Exhaust, M Performance Power Kit

Former: 2011 335xi Coupe -- 2009 MCS JCW -- 2006 MZ4 -- 2002 325i -- 1997 318ti -- 1991 318i

Last edited by SARAFIL; 08-15-2010 at 08:28 PM.
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  #7  
Old 08-15-2010, 08:10 PM
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Robsa Robsa is offline
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Not really paying interest twice. But since you pay for 3 years then refinance, for example 4 years, it's a long pay off period.
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  #8  
Old 08-15-2010, 08:33 PM
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SARAFIL SARAFIL is offline
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Location: Northeast USA
 
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Quote:
Originally Posted by Robsa View Post
Not really paying interest twice. But since you pay for 3 years then refinance, for example 4 years, it's a long pay off period.
So you buy a $60k X5 on a balloon, lets say it has a final payment of $15,000 due in 60 months. You pay interest on a $60k loan for 60 months, but you only pay down $45k of principal. At 60 months, if you do not have the cash, you take out a loan for another 2 or 3 years for the remaining $15k principal and you then pay interest on that.

I've done the math many times before. I used to be the one person in the dealership that tried to talk people out of a Select when everyone else was pushing them towards it. Estimate the total cost for a 48 or 60 month Select with 2-3 additional years of financing for the balloon, vs. doing a 60 or 72 month finance upfront. You will pay much, much more in finance charges doing the Select + refinance option. The only way it works out somewhat comparably is if you do the Select but then pay cash for the final payment.
__________________
2013 BMW 335xi Sedan
Estoril Blue / Black Leather

6MT, M-Sport, Premium Pkg, Cold Weather Pkg, Dynamic Handling Pkg, Tech Pkg, HK Sound, M Performance Exhaust, M Performance Power Kit

Former: 2011 335xi Coupe -- 2009 MCS JCW -- 2006 MZ4 -- 2002 325i -- 1997 318ti -- 1991 318i
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