WebDefy

Talking to dealer about trading in 03 X5 to get 545 a year early, my payment on X5 seemed high anyway $820 with an msrp oringinally on X5 of $53k. Sales guy first off says new 545 hard to get. I'm guessing that the 545 optioned at $60K has a higher projected residual is why the bmwusa estimates lease at roughly same price as the 53k X5.

I want to try to do this right obviously to get eh best deal, has anyone gotten out of a 36 month 12 months early?? Sales guy says that BMW has some sort of accelerated lease payoff or buyout when you lease another BMW. Daon't want to get BS'ed when I goto dealer. He wouldn't give me on the phne any idea as to wether this was feasible or not. Played the come down here thing. Feasible to me meaning that I can get into the 545 with roughly same payment and a few thousand up front, Like I was leasing a 545 tight off the street.

I know when you are bottoms up on a purchase they just add the negative to the loan. Is this the same type of situation? Can you add this negative in to the lease payment rather than up front. I don't want to get ripped off, my hope is obviouly that they will just take the x5 and apply the deposit to the new lease.Also I believe I gave them a standard security dep. Of $2500 on the X5

Lastly if anyone has read all that, on bmwusa they have a promo lease rate for a 530 I think at $530 is this really a better deal and subsidized by the factory or a money saving incentive. I'm set on gettting a 545 but don't know how to do this, not sure how I'm paying $820 on the X5 and the payment estimater for bmw is substantially less. Can the dealer rip you off on a lease even though it's just standard lease from BMW finance at the MSRP?

Any help much appriteated!!!!!!!!!!!

macct

You can always get out of a lease, but it can be expensive. Think of your lease as an agreement to pay X amount which you have financed. I highly doubt BMW Financial will waive or lessen what is due them. Occasionally they have programs in place which will pick up the last pmt (or pmts), but the dealers must participate, picking up a portion of the costs.

More than likely the dealer will roll over the negative balance into the new car. I would suggest trying to know all the variable of a new transactions....selling price, money factor, acq fees, other fees..before dealing with you trade. The dealer will know all the variables, but is likely to add a little to all the variable plus an amount down to make the deal look better. You are not in a good negotiating position, but you can see how well the dealer can work with you. (He is already posturing....545is are hard to get)

The 530i will lease better than the 545i since it has a higher residual. The money factors are the same. Is the finacial hit worth taking? Can you wait till the end of 2005? I would also re-evaluate whether you should lease the next car. Good luck

m630

welcome WebDefy , where are you located? it would help us to assist you... that deal u see on the 530 these days is just for that car if you buy it now before the new engine is introduced in the spring, and theres like a $4000 cost cap reduction that goes with that lower monthly payment, the 545 does not have any nice deals like that... i would think you could find a dealer willing to do this upgrade, you should be able to put whatever part of the price into the payments so that negative should be able to go into you payment, but the new car would have to be an upgrade in the dealers mind in terms of pricing....the 545 is real nice, but the options add up quick and a nicely equipped is mid-60s msrp, which would probably cost more than your current lease...

mclc26

Yes, a dealer can 'rip you off' by charging you based on a the full MSRP of the car and perhaps some other clever ways, whereas most dealers will discount off the MSRP to bring your lease payment lower. However, the lease payment on the car is based on the price they are charging you for the car, with everything else being pretty much static(ie: residual, money factor, interest rates, etc...). Before I got my 540 sport and most recently my 545 sport, I called just about every dealer in the tri-state area getting quotes and I would say there was as much as a $100 difference in payment from lowest to highest quote(I obviously went to the dealer with the lowest quote, and it was honored so it wasn't just a lowball price to get me in the door).

As far as exiting your lease early, it can be done, as I exited the lease early on my 540 to enter the 545. There are several dealers in the NY area that can do this for you. If you want names, PM me and I'll be happy to help you out. BTW, there are 545's out there so don't let them fool you. Most dealers will swap for one if they don't have it in stock as mine did, it's just more of a hassel for them.

DaveR

There are obviously lots of ways for the dealer to rip you off. But, if you do things right you can get a fair deal. You need to do this in a few steps.

1. Call BMW FS before going to a dealer and find out the payoff on the lease. If the dealer buys the car from you they'll be paying this amount (minus sales tax that's already included and minus $350 end of lease fee) to BMW FS to get you out of the lease.

2. Try to get an idea of what your X5 is worth to a dealer (edmunds, kbb, etc).

3. Negotiate the sale price of a new 545 with the options you want, as if you were NOT getting rid of the X5. BMW FS will waive the security deposit since you are a customer, but will not waive the bank fee (~$525 or so). In the NYC tri-state area you can do anywhere between $1500 and $2500 above dealer invoice, depending on lots of variables (availability, your negotiating skills, dealer's desire to make a sale, etc).

4. Then tell them you want to lease. Make sure to get the base (buy) BMWFS bank rate ( I believe .00125 right now). Tell them no cap cost reduction, just inceptions (first month payment, bank fee, motor vehicle fees).

Now you can calculate the cost of the lease using a standard formula. You can vary the monthly payment by changing the cap cost reduction (there are lots of spreadsheets available to do this).

Now, tell the dealer, well you know, I don't really need the X5, how much will you give me in trade. Negotiate to get the best possible value. If they offer you less than your payoff (which they will), you'll have to add the difference (minus the sales tax that's included in the payoff) to your sales price of the 545 you used in your lease calculations, and redo the math. You'll get your new lease price.

You can lease a well equipped 545 in NYC area for ~$750/month today with no cap cost reduction. Your lease payment will go up approximately $35/month per each $1000 of negative equity you have in your X5. So figure as long as you have less than $3000 in negative equity (you are probably closer to $5K though), you can keep the same payment.

Let us know if you have any questions.

Thanks,
Dave

alohalc

welcome aboard, webdefy ! if you want further instructions on how to get a good deal, check out our faq forum. good luck .

Iceman

Welcome aboard, WebDefy !

Location would help. Pls put it in your profile.

pennetta

You can take the other route and find out what a 24 months lease on your X5 was. It was probably around $125-150 more per month than a 36 month lease. Multiply $125-150 per month by 24 months and you would owe $3000-$3600 to get out of your lease.