My Take: Skip the X3, skip the X5 3.0 , X5 diesel and X6 3.5. Stick with the X5 4.8 and the X6 5.0 because that’s the better value. Sure, its more expensive, but residuals are high and the money factors are reasonable. Don’t forget the MSDs! I’m am really surprised that most people still opt to put money down instead of opting for “multiple security deposit” when it comes to expensive cars. You really should consider that instead of putting money towards cap reduction because it will save you money in the long run. With security deposits, you will save in finance charges AND you get your money back at lease end. That is not the case when you put money down. Sure, your payments will be significantly lower, but that $3500 is pretty much gone for good. I know using $3500* towards security deposits seems stupid since you lock that in for about 36 months, but lowering your interest rate from 3.9% down to 2.9% on a 20,000+ loan will give you a better return than putting that $3500* in a 1.5% interest baring account. I’m a bit pressed for time so I can’t break it down for you financially, so just take my word for it.
Now eventhough the X5 4.8 is a pretty decent deal, the X6 is still the better buy, if that car fits your needs. Why? 2% residual value increase saves you more money than a drop of .0002 points in the MF. So the X6 makes THE LIST instead. Before I forget, there is also $1750 lease cash on it, so that just sweetens the deal that much more.
*I am using this as an example, your security deposits may vary.
Check out the new LIST for the recommended leases of the month.
2009 BMW X3
2009 BMW X3 xDrive 3.0i
24-month | 15k miles | residual 57% | .00235 base money factor
36-month | 15k miles | residual 53% | .00235 base money factor
48-month | 15k miles | residual 30% | .00265 base money factor
60-month | 15k miles | residual 25% | .00265 base money factor
2009 BMW X5
2009 BMW X5 xDrive 30i
24-month | 15k miles | residual 62% | .00180 base money factor
36-month | 15k miles | residual 55% | .00180 base money factor
48-month | 15k miles | residual 36% | .00265 base money factor
60-month | 15k miles | residual 30% | .00265 base money factor
2009 BMW X5 xDrive 35d
24-month | 15k miles | residual 61% | .00250 base money factor
36-month | 15k miles | residual 55% | .00250 base money factor
48-month | 15k miles | residual 36% | .00265 base money factor
60-month | 15k miles | residual 30% | .00265 base money factor
2009 BMW X5 xDrive 48i
24-month | 15k miles | residual 62% | .00155 base money factor
36-month | 15k miles | residual 56% | .00155 base money factor
48-month | 15k miles | residual 30% | .00265 base money factor
60-month | 15k miles | residual 25% | .00265 base money factor
2009 BMW X6
2009 BMW X6 xDrive 35i
24-month | 15k miles | residual 61% | .00200 base money factor
36-month | 15k miles | residual 57% | .00200 base money factor
48-month | 15k miles | residual 32% | .00265 base money factor
60-month | 15k miles | residual 28% | .00265 base money factor
2009 BMW X6 xDrive 50i
24-month | 15k miles | residual 61% | .00175 base money factor
36-month | 15k miles | residual 58% | .00175 base money factor
48-month | 15k miles | residual 30% | .00265 base money factor
60-month | 15k miles | residual 25% | .00265 base money factor
How does MSD exactly work?
@gene. MSDs are security deposits that you pay at signing in order to lower your money factor. Say for example, BMW charges you $500 for every 0.00015 points you lower on the money factor. So if you put down $2500, you lower your money factor by 0.00075 points.
Does every auto maker offer that?
@Gene. Most captive banks offer that as a way to lower their money factors. That’s one way to get into a car when the money factor is still a bit higher than you’d like. It isn’t widely advertised and not someone most customer request. Most people have better things to do with their money than locking it in with the bank for 3 years.
I called up a BMW dealer and spoke with a finance manager. He told me MSD works the following way: it is based on monthly payment rounded to nearest $50 (ex: $530 will be $500), and the reduction in MF is 0.00007 per deposit. Does this sound right? I did forget to ask, if the payment (base for MSD) is the after or before the MSDs.
@Gene. I think I’ll have to call up Dave for a clarification then. This is definitely a must know. I remember some folks reporting 0.00015 reductions per deposit. 0.00007 is kind of low.
G, is it normal for dealers to add-on to the MF? I went to one and theirs is 0.0024 ob X6 35. I questioned it, and their response is that “we have to make money too.”
@gene. BMW generally does bump the MF if you don’t have a security deposit. It is also well within their rights to do so, but any dealer that says “we have to make money too” isn’t someone I would deal with. That’s just plain rude.
This is great – I’m about so sign the paperwork for a new X6 5.0 this afternoon – does anyone know if it’s .00007 or .00015 with BMWFS? Will the dealer give me grief for changing the deal?
@Don. I’ve only seen .00015, but on a 3-series.
G.
Is this a good deal:
2009 X6 35i MSRP: $62,800 Invoice: $57,800 Sale price: $58,500
$1500 down, in addition to BMW’s $1750. Also 4 additional security deposits. MF 0.00172 after MSDs. All fees due at signing. 36 month lease, 12k/yr. Monthly payment: $710 including 6.25% tax.
@Gene, I’m not too crazy about the $1500 cap reduction, but overall, the deal is not bad. I would go for it.
@Gene, I’m not too crazy about the $1500 cap reduction, but overall, the deal is good. I would go for it.