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Discussion Starter · #1 ·
I posted this on the ask the dealer forum but have not received any response. I thought I would repost here and hopefully get a better response since this is an X5 area.

Hey guys, I need your opinions on this. I am about to lease a 06 X5 4.4i. It is equipped with premium pkg, sport pkg, 19" Star wheels, Cold weather pkg, Rear Climate pkg, & Navigation. The list on the car is $62,295. The cap cost of the car will be $55,890. The dealer claims I can only bring the MF down to the loyal custumer rate with security deposits. This amounts to one security deposit, which brings the MF to .00165. The out the door payment would be $2,106, which includes the security deposit, and the monthly payment for a 24 month lease would be $788, including tax.

Is this a good deal or is the dealer telling me the truth about the security deposits not being able to buy the MF rate down any further?

Thanks for any advice you guys can give me.
 

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///Monkeyazz Duck
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Time to find a new dealer!

First, the BASE money factor in July is .00125 (called the buy rate). This is what you should be paying BEFORE any MSD's.

Second, I never heard of a "loyal customer rate". Sounds like your dealer is saying he screws all his loyal customers by charging them a premium over the buy rate. (Then again, maybe his only "loyal customers" are the ones too stupid to shop around!)

Third, unless you are in NY you can do 7 MSD's (I heard an unconfirmed rumor this was just cut to 5, but either way, it's more than 1). Each MSD brings your MF down by 0.0007, so 5 MSD's would give you a MF of 0.0009.

Fourth, I don't know what the dealer invoice is on the car you are looking at, but in your negotiations bear in mind that there is $1,500 of dealer cash on the X5 4.4 in July. If you are willing to give the dealer a $1,000 profit, that means your cap cost should be $500 BELOW invoice on the car. If he's sticking it to you on the MF, he's prolly sticking it to you on the cap cost too.

Once again, FIND ANOTHER DEALER or call this guy's bluff. If you're in the Northeast, PM me for the name of my CA outside Boston.
 

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Discussion Starter · #3 ·
quackbury said:
Time to find a new dealer!

First, the BASE money factor in July is .00125 (called the buy rate). This is what you should be paying BEFORE any MSD's.

Second, I never heard of a "loyal customer rate". Sounds like your dealer is saying he screws all his loyal customers by charging them a premium over the buy rate. (Then again, maybe his only "loyal customers" are the ones too stupid to shop around!)

Third, unless you are in NY you can do 7 MSD's (I heard an unconfirmed rumor this was just cut to 5, but either way, it's more than 1). Each MSD brings your MF down by 0.0007, so 5 MSD's would give you a MF of 0.0009.

Fourth, I don't know what the dealer invoice is on the car you are looking at, but in your negotiations bear in mind that there is $1,500 of dealer cash on the X5 4.4 in July. If you are willing to give the dealer a $1,000 profit, that means your cap cost should be $500 BELOW invoice on the car. If he's sticking it to you on the MF, he's prolly sticking it to you on the cap cost too.

Once again, FIND ANOTHER DEALER or call this guy's bluff. If you're in the Northeast, PM me for the name of my CA outside Boston.
Thanks for the input. I talked to the dealer again and I can get the MF down to .00125, but they claim they cannot do the 7 MSD at this rate:dunno: The invoice on the car is $57.000 and change (the exact figure I wrote down is at home) and the price they will sell it to me is $55,890.00. The payment would now be about $781 with tax included. It seems like the payment should have dropped more than $7, but I haven't been able to put all this on a worksheet yet. It seems like it is getting to be a better deal, but it would be nice to be able to do the MSD's.
 

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///Monkeyazz Duck
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MDT said:
Thanks for the input. I talked to the dealer again and I can get the MF down to .00125, but they claim they cannot do the 7 MSD at this rate:dunno: The invoice on the car is $57.000 and change (the exact figure I wrote down is at home) and the price they will sell it to me is $55,890.00. The payment would now be about $781 with tax included. It seems like the payment should have dropped more than $7, but I haven't been able to put all this on a worksheet yet. It seems like it is getting to be a better deal, but it would be nice to be able to do the MSD's.
Glad to be of help. Here are some additional thoughts/comments.

First, you don't need a spreadsheet, there is a great online lease calculator at http://leaseguide.com/calc.htm. I plugged in your numbers - not sure what's included in your up front, but assume you know enough NOT to do a cap cost reduction - and I get a base monthly lease of $681.61. If your local sales tax is 5% like here in MA, the rate including sales tax would be $715.69.

Now you have already caught the dealer lying to you once (on the "best" money factor), and these numbers really don't seem to add up. If I were you I would contact a different dealer, and ask them if they can sell you an X5 4.4 off the lot for $1,000 over dealer cost (after the cash back), with the buy rate and 7 (or 5) MSD's. I have a feeling you are going to find that they lied to you yet again.
 

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Discussion Starter · #5 ·
quackbury said:
Glad to be of help. Here are some additional thoughts/comments.

First, you don't need a spreadsheet, there is a great online lease calculator at http://leaseguide.com/calc.htm. I plugged in your numbers - not sure what's included in your up front, but assume you know enough NOT to do a cap cost reduction - and I get a base monthly lease of $681.61. If your local sales tax is 5% like here in MA, the rate including sales tax would be $715.69.

Now you have already caught the dealer lying to you once (on the "best" money factor), and these numbers really don't seem to add up. If I were you I would contact a different dealer, and ask them if they can sell you an X5 4.4 off the lot for $1,000 over dealer cost (after the cash back), with the buy rate and 7 (or 5) MSD's. I have a feeling you are going to find that they lied to you yet again.
Thanks for the good info on the lease calculator site. I checked with another dealer and I am able to do 7 total MSD's. Their MF started at .00140. The first security deposit brings it down .00015 to .0125, the other six bring it down .0007 each. The final MF would be .00083. The X5 they have has an additional package (sound package), which brings up the cap cost about $1000. But, the payment would work out to be $708/ month with tax (8.25%), with nothing down except for normal money due at signing (no cap cost reduction). Sounds like an good deal to me.

Thanks again for the good advice.
 

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///Monkeyazz Duck
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MDT said:
Thanks for the good info on the lease calculator site. I checked with another dealer and I am able to do 7 total MSD's. Their MF started at .00140. The first security deposit brings it down .00015 to .0125, the other six bring it down .0007 each. The final MF would be .00083. The X5 they have has an additional package (sound package), which brings up the cap cost about $1000. But, the payment would work out to be $708/ month with tax (8.25%), with nothing down except for normal money due at signing (no cap cost reduction). Sounds like an good deal to me.

Thanks again for the good advice.
Good for you! Glad I could be of help.

We do NOT have the premium sound on my wife's X5, and the sound quality kind of stinks. Don't know how much of an improvement it will be on yours, but I suspect you will find it to be money well spent.

I tend to be a pie-in-the-face, so after I closed on the deal with the 2nd dealer, I'd prolly write the owner of the first dealership and tell him why he didn't get your business. The blatant lies and deceptions should not go unnoted IMHO.

Enjoy your SAV!
 

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Discussion Starter · #7 ·
Well, I finally pulled the trigger and got my X5 4.4. I think the deal turned out pretty good. The car listed for $63,495, and the cap cost ended up being $57,075, which included $50 for a wheel change because of a tire preference and $45 documentation fee. I did the one security deposit and then seven additional security deposits, for a total of eight. That brought my MF down to .00076. I gave the dealer $5,600 in security deposits, $825 for the acquisition fee, and the first month payment and drove the car off the lot. My monthly payment ending up being $656 including tax, which was for 12,000 miles/year. The drop in the montyly payment for dropping to 12,000miles/year from 15,000 was greater than the costs of buying the extra miles at .20/mile. I think I did pretty well, other that maybe I paid a bit too much on the acquisition fee.
 

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///Monkeyazz Duck
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Good for you! Great deal on a great car. What color and options did you settle on? Did you buy from the 1st dealer, the 2nd or someone else?

One thing to keep in mind - if you find you are going over the 12,000 miles/year, you can buy more miles during your lease - I think you pay 18 cents a mile, instead of 20 cents. And if you don't use them all, I think they credit you at the end of the lease.
 

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Discussion Starter · #9 ·
Thanks! It's been a great, fun car so far. I got the White with black interior. I do remember the finance guy talking about buying more miles up to ten months before lease end at .16. He didn't say anything about buying back the unused miles. Thanks for the tip on that, I'll have to check that out.

I ended up buying from the first dealer for two reasons. Once he got his head finance guy involved, the MSD program was not problem, and he did have the original best price. The main reason, though, was their service department. I take my e60 to them for service, and even though I didn't buy it from them, they have always given me a BMW loaner. The other dealer was where I bought my e60 and I had experienced bad service and have heard horror stories about their service department.

I plan to let the CA from the dealer I didn't buy from know it was his service department that did him in. His dealership is actually much closer to my home.

Thanks again for all the good words and help.
 

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Well, I finally pulled the trigger and got my X5 4.4. I think the deal turned out pretty good. The car listed for $63,495, and the cap cost ended up being $57,075, which included $50 for a wheel change because of a tire preference and $45 documentation fee. I did the one security deposit and then seven additional security deposits, for a total of eight. That brought my MF down to .00076. I gave the dealer $5,600 in security deposits, $825 for the acquisition fee, and the first month payment and drove the car off the lot. My monthly payment ending up being $656 including tax, which was for 12,000 miles/year. The drop in the montyly payment for dropping to 12,000miles/year from 15,000 was greater than the costs of buying the extra miles at .20/mile. I think I did pretty well, other that maybe I paid a bit too much on the acquisition fee.
I'm in the market for a 4.4 X5, and came across your deal. I tried to compute the numbers on leaseguide.com but did not add up. Can you please verify the MSRP, ACC, MF, RV etc for me.
Thanks!
 

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Discussion Starter · #11 ·
I'm in the market for a 4.4 X5, and came across your deal. I tried to compute the numbers on leaseguide.com but did not add up. Can you please verify the MSRP, ACC, MF, RV etc for me.
Thanks!
No problelm. I pulled out my paperwork so I wouldn't have to go from memory. The MSRP was $63,495. The Acquisition fee was $825 ( I paid this up front, so they listed this as a cap reduction). The MF was .000076, and the residual value was $44,446.40. The gross cap cost was $57,900, but after the $825 reduction from paying the acquisition fee up front, the adjusted cap cost was $57,075. My payment is $603.35 plus 8.25% tax. I think that is everything.
 

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Thanks a lot!
I'll let you know how my deal went. They have some pretty good leasing deals going on right now:
MF: 0.00105 (that would go down to 0.00056 with 7 MSD's)
Residual: 70% (12000miles/year)
Lease term: 22months
If I get a Cap cost $1000-1500 below invoice I should get close to your deal. I don't know if they still have the $2500 incentives for the 4.4.
One more question, what made you take the sport package, and how do you like it so far? I thought the car is very tight anyway, and they did not have a 4.4 sport I could test drive.
Once more thank you!
 

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Discussion Starter · #13 ·
Thanks a lot!
I'll let you know how my deal went. They have some pretty good leasing deals going on right now:
MF: 0.00105 (that would go down to 0.00056 with 7 MSD's)
Residual: 70% (12000miles/year)
Lease term: 22months
If I get a Cap cost $1000-1500 below invoice I should get close to your deal. I don't know if they still have the $2500 incentives for the 4.4.
One more question, what made you take the sport package, and how do you like it so far? I thought the car is very tight anyway, and they did not have a 4.4 sport I could test drive.
Once more thank you!
I had the opposite situation that you have. All the cars at the dealerships I went to had the Sport Package. I was worried about it being too stiff because my wife would be the primary driver of this car. She found it to be just fine, in fact, she likes the firmness and quick recovery when going over bumps and around corners. It is not a jarring ride at all. Of course, I was all for the sport package. I never had the chance to drive the non sport package, but I imagine that would be just fine too. Also, we wanted the 19" wheels and tires. That required the sport package.

Good luck on your purchase. Let me know how it goes and what you end up getting in the way of options and packages.
 

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Hi MDT,
Sorry for the delay, but I was toooo busy driving around in my new Titanium silver/black 2006 X5 4.4i, with everything except for sport package and premium sound. I ended up paying $618/Mo, tax included, no money down, and $5,200 ($650x8) worh of security deposits, for 22Mo. Unfortunately there were not too many cars left in the dealer's lots, so the options vere limited, but I think at this price ($1,500 below invoice) the deal was pretty good.

So far I love it, and so does my 6 yo son (he thinks "this is the coolest car ever"); I had some problems though:
1. an intermmitent noise behind the navigation system,
2. foggy headlights the first muggy day...
Anybody with simmilar problems?

Another question. If I want to buy this car at the lease end, the market value is less than the Residual (35-37,000 vs 43,000 by my rough calculations), is there any way I can make a deal with the dealership to get the car from them after they buy it from the leasing company (at a more competitive price I would assume)? Any precedents on the issue?
 
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