[Loco_iX]

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Now that some people in the US are finally getting their hands on an iX I was wondering what most people are doing.
I’m hoping to get mine next month and the dealer asked me to do a credit run to lock in the rate and get the $7500 discount (since it’ll be considered a “contract”).
Originally I was planning on buying the car but after the hold due to recalls I’m leaning towards a lease. What rates are you guys getting?
I’m a veteran and a Costco member but according to the manager the iX is not on the military discount program yet (but Costco does have it).

[grueber]

If you lease you don't get the $7500.

Think most people are buying.

[ricerboi]

Originally Posted by Loco_iX

Now that some people in the US are finally getting their hands on an iX I was wondering what most people are doing.
I’m hoping to get mine next month and the dealer asked me to do a credit run to lock in the rate and get the $7500 discount (since it’ll be considered a “contract”).
Originally I was planning on buying the car but after the hold due to recalls I’m leaning towards a lease. What rates are you guys getting?
I’m a veteran and a Costco member but according to the manager the iX is not on the military discount program yet (but Costco does have it).

Easy decision for most of us:

If you're at or around MSRP ~$103k, 1.9% APR for Finance, and I'm doing CA Tax 10.25%

Lease: ~$5500 down, ~$1750/month for 7500 miles/year, no $7500 EV Tax Credit

Finance: $1500 down (I applied my deposit and did $0 down at delivery), $1940/month (unlimited miles since buying), $7500 EV Tax Credit

I'm going to be putting 30k-40k miles/year on the iX so there was no way I was going to be leasing.

[Greg Staten]

Originally Posted by ricerboi

Easy decision for most of us:

If you're at or around MSRP ~$103k, 1.9% APR for Finance, and I'm doing CA Tax 10.25%

Lease: ~$5500 down, ~$1750/month for 7500 miles/year, no $7500 EV Tax Credit

Finance: $1500 down (I applied my deposit and did $0 down at delivery), $1940/month (unlimited miles since buying), $7500 EV Tax Credit

I'm going to be putting 30k-40k miles/year on the iX so there was no way I was going to be leasing.

That was my calculation as well, but now that the $7500 EV credit is effectively gone (at least it is for me as mine isn't due to be delivered until Jan/Feb 23), I'm going to look at the lease/buy calculus again.

One reason to lease is that we know the technology is in a state of evolution and it is likely that, for example, driver's assist features will come available that will not be available for older models. (For example, I just don't see BMW offering a processing module upgrade/swap as Tesla did for their customers a few years back.) Another reason (for me) for leasing is that BMW took the B&W audio option away from the XDrive 50 model and I cannot justify the cost up for the M60.

Over the years I've both leased and bought and know well the pros and cons of each. I won't be surprised if I decide to lease now that the $7500 credit is gone. Curious what others are thinking as well.

[ricerboi]

Originally Posted by Greg Staten

That was my calculation as well, but now that the $7500 EV credit is effectively gone (at least it is for me as mine isn't due to be delivered until Jan/Feb 23), I'm going to look at the lease/buy calculus again.

One reason to lease is that we know the technology is in a state of evolution and it is likely that, for example, driver's assist features will come available that will not be available for older models. (For example, I just don't see BMW offering a processing module upgrade/swap as Tesla did for their customers a few years back.) Another reason (for me) for leasing is that BMW took the B&W audio option away from the XDrive 50 model and I cannot justify the cost up for the M60.

Over the years I've both leased and bought and know well the pros and cons of each. I won't be surprised if I decide to lease now that the $7500 credit is gone. Curious what others are thinking as well.

You're right about the EV credit. However, for those of us who pre-ordered with the guaranteed 1.9% APR for financing, vs the terrible residuals on leasing, it's still pretty much a no-brainer. Unless there's a good 30-40% gap in payment between lease (with decent mileage allowed) and finance, financing still wins.

[Greg Staten]

Originally Posted by ricerboi

You're right about the EV credit. However, for those of us who pre-ordered with the guaranteed 1.9% APR for financing, vs the terrible residuals on leasing, it's still pretty much a no-brainer. Unless there's a good 30-40% gap in payment between lease (with decent mileage allowed) and finance, financing still wins.

Agree completely. I'm in the other camp where I don't have a guaranteed 1.9% APR as I ordered in May. So we'll see how things look come January-March (which is my current window).

[Loco_iX]

Originally Posted by ricerboi

Easy decision for most of us:

If you're at or around MSRP ~$103k, 1.9% APR for Finance, and I'm doing CA Tax 10.25%

Lease: ~$5500 down, ~$1750/month for 7500 miles/year, no $7500 EV Tax Credit

Finance: $1500 down (I applied my deposit and did $0 down at delivery), $1940/month (unlimited miles since buying), $7500 EV Tax Credit

I'm going to be putting 30k-40k miles/year on the iX so there was no way I was going to be leasing.

When did you apply for finance to get a 1.9% ?

[ricerboi]

Originally Posted by Loco_iX

When did you apply for finance to get a 1.9% ?

I pre-ordered it on the website in July 2021. Took delivery on 8/12/22.

[Loco_iX]

I wonder what APR people are getting now…. Dealer roughly estimated 4.9% for 60 months…

[ixDriver]

Wow I got 4% for 60 months just 3 weeks ago

[UltimateMoneyShifter]

Originally Posted by ixDriver

Wow I got 4% for 60 months just 3 weeks ago

Would ~4% be considered a good rate for a ~$100,000 loan across 60 months? Obviously this is dependent on credit worthiness, but I was wondering if folks were getting better (apart from the 1.9% offer).

[machop]

Originally Posted by Greg Staten

Agree completely. I'm in the other camp where I don't have a guaranteed 1.9% APR as I ordered in May. So we'll see how things look come January-March (which is my current window).

See you are in Houston, mind if ask you which BMW dealer you ordered from?

For me before this new law I was in buying camp, now I might have to run numbers again when my ix is ready.

[Greg Staten]

Originally Posted by machop

See you are in Houston, mind if ask you which BMW dealer you ordered from?

For me before this new law I was in buying camp, now I might have to run numbers again when my ix is ready.

I ordered mine from BMW North Houston.

[JK479]

I think this is a BUY on the iX.

EV's in general have better residual value after a lease than a lot of gas cars. What is the residual on the lease? 50 percent? Makes me think the interest and residual make this payment higher than it should be in normal market situations.

In three year for example- this 80-90k car might be worth 60. But BMW's low residual has the buyout at 40k in some instances. Great for them that we are paying off the car on a lease that no one can buy but us or BMW at the turn in!

[ixDriver]

Originally Posted by JK479

I think this is a BUY on the iX.

EV's in general have better residual value after a lease than a lot of gas cars. What is the residual on the lease? 50 percent? Makes me think the interest and residual make this payment higher than it should be in normal market situations.

In three year for example- this 80-90k car might be worth 60. But BMW's low residual has the buyout at 40k in some instances. Great for them that we are paying off the car on a lease that no one can buy but us or BMW at the turn in!

I didn't see the numbers for the BMW lease but if thats what they are offering, its as bad as the old Tesla leases.

EVs (and even cars generally) will likely remain in short enough supply out 3 years from your lease start that it's hard to imagine that much depreciation. I mean for the last 2-3 years we've seen prices going up instead of down on new model years, let alone supply issues.

For reference I traded in a 4 year old Model 3 for 85% of what I paid new.. obviously I hit good timing this August, but I could have probably gotten 95% last summer peak. Long way for market to readjust to where we get back to losing 20%/year.

[JK479]

Originally Posted by ixDriver

I didn't see the numbers for the BMW lease but if thats what they are offering, its as bad as the old Tesla leases.

EVs (and even cars generally) will likely remain in short enough supply out 3 years from your lease start that it's hard to imagine that much depreciation. I mean for the last 2-3 years we've seen prices going up instead of down on new model years, let alone supply issues.

For reference I traded in a 4 year old Model 3 for 85% of what I paid new.. obviously I hit good timing this August, but I could have probably gotten 95% last summer peak. Long way for market to readjust to where we get back to losing 20%/year.

Right- and all the repossessions and cars that will hit the used market are going to be dogs… COVID cars lacking options and older car with many many miles on them.

New cars might retain their value because of the plethora of used cars. Many are predicting those used cars will take a 40 percent dive where as new will be normal.

And- the elephant in the room- ICE will be dinosaurs ! Looking bleak even in CA where it's uncool to own a v6 or v8.

I will concede the efficiency of ice isn't great. Sad they didn't develop it more to be a real choice against EV. EV will really take over once they get their batteries lower weight… and range becomes better.

[CaboM4]

Originally Posted by UltimateMoneyShifter

Would ~4% be considered a good rate for a ~$100,000 loan across 60 months? Obviously this is dependent on credit worthiness, but I was wondering if folks were getting better (apart from the 1.9% offer).

2.51% from a local credit union; 800+ credit score

[UltimateMoneyShifter]

Originally Posted by CaboM4

2.51% from a local credit union; 800+ credit score

Sweet! Yeah I got 2.99% and wanted to see if there are better rates around.

[Carnook]

I just got 2.49% from one of my credit unions. It includes a loyalty discount for having multiple products with them, a minimum cash balance and a minimum down payment.

But I’m just gonna pay cash and be done with it.

[Bornagain73]

My credit union is back east, and for three years it's 1.7 % for up to five years is 2.49 %and six years is 2.99.%