Leasing a vehicle

[Maggot]

If you're going to lease, look for these things: negotiated price, residual value and money factor. You may already know some or all of this.


1. Negotiated price. If you lease, it's called capitalized cost and it's not related to residual value, but is the major determinant of your payments. Understand that number because some dealers will try to stick in MSRP or close to it to unsuspecting customers. Do your research on competitive pricing.

2. Residual value, or what the vehicle will be worth at the end of of the lease. Vehicles with higher residuals means lower payments. A 3 year lease on a $50,000 vehicle with a 60% residual value of MSRP will have lower payments than a $50,000 one with a 50% residual. You can research this by brand and model for predicted residual value. There's a company that sets those values, so they are not negotiable.

3. Money factor. Another way of saying interest rate. To convert one to the other, 2400 is the number. If they give you a money factor (you have to ask for it) of .0022, multiply that by 2400 and your interest APR is 5.28. Don't confuse .0022 with a 2.2% APR. Divide by 2400 when converting to a money factor from an APR. You can shop the rate given by the dealership with your own choices for money lenders. Know that credit score plays a big part in the rate given. Your bank or credit union may beat their rate, so ask the dealership if you can use your lender or match its rate. They won't like it because they have a buy rate from the lenders they use and will give you the sell rate, but in the end they'll be more interested in moving a unit than making a few hundred extra off the finance delta.

The best deals will be made at the end of the month, especially for year-end deals as salespeople and dealerships will be trying to hit their respective quotas and incentives. And don't hesitate to work at least 3 dealerships, even if they are out of town, by going through the internet. You may not get a great deal vs the others, but you'll make sure you're not getting hosed.

Try these guys for financing...


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[Animal357]

if you are worried when your warranty is out for a year or 2, you are buying the wrong car.

 

[hlee]

There are just some people in this world that will be fine when individuals cannot claim ownership of anything, and everyone rents EVRYTHING. Personally, I’ll buy, and count myself ahead every day that I don’t have a car payment, even if I do have to buy tires, and make a repair every now and then.

Reminds me of an old(ish) Chevy commercial

Young guy and old guy talking about a new truck...

Young guy is worrying about scratches and dents.

Old guy... “Scratches give it character. Women like character...”

 

[chevy_man]

if you are worried when your warranty is out for a year or 2, you are buying the wrong car.

Funny how people can afford the payment, but can't fix it.

I get strange looks when I ask what the 24 and 36 month finance deals are. Just bought a sled at 2.4%, payments are barely different than 5% at 60. My money is still making 9% this quarter, so financing is a better deal with the low rates.

 

[The D]

I’m firmly in the no lease camp and I try to be in the only pay cash for a very used (~100k miles) vehicle camp as much as possible. I will be most likely be financing my next vehicle, maybe2, but I will be planning on keeping them until the end of time. I’ve been a mechanic for 20 years and am comfortable doing almost anything in my garage.

If you understand that renting a vehicle is your convenience cost to never have to wrench again(or very little) and you can justify that expense then go for it.

 

[WilburW]

Although the purchase option at the end of the lease sounds attractive, the sales tax on the purchase ended up ruining the deal.

 

[W54/XM-388]

I would imagine you could. You can buy one through a trust.

Pretty much all the guys with significant money or fame have all their vehicles bought under Trusts, LLCs or Corporations that are rather opaque and not easily connected.

It's a huge help in this litigation friendly world where people are busy looking for jackpot justice.

 

[Adam B]

Nothing drives like a paid for vehicle.
View attachment 7504655

I am sorry but Dave Ramsey is a joke, he went bankrupt multiple time and was able to walk away from his debt since you could back then. He preaches common sense nothing more.

 

[Alabama556]

Companies like to lease because they can write off 100% of the cost and keep their fleet newer.

I have never figured out how it makes FINACIAL sense for an individual who does not own a company to lease a vehicle.

it may make sense to an individual if they want no maintenance surprises and want a new car ever 3 years. I don’t think the math will ever work.

remember when you lease a vehicle the leasing company is technically buying the vehicle from the dealership. It is the same as a sale to them.

the leasing company gets to deduct the depreciation because they own the asset.

the dealership’s are just using the lease as a sales tool to get people into new cars.

 

[BigTex]

Going to test drive a 2018 x3 M sport with 10k miles next week. Its likely gonna be the one. Thanks for the insight on leasing. It looked good to me, but it seems the hidden costs and fine print are making it a no go in my situation.

 

[oinco]

If you know MF and residuals well and have a very well considered plan (incl tax exposure, local market, upcoming model changes etc.)...leasing can work to your advantage- with a hundred caveats. If you cycle through vehicles on a 24month or so frequency...some brands will validate a lease consideration.


BMWCCA offers a lease rebate program... looks like $500 for an X3- also, it seems BMW's "loyalty" or "conquest" offers are fairly lenient...






Maybe this will help, found not produced, so please verify:


The baseline MF is set by BMW Financial Services, but a BMW dealership can mark up the MF by up to .0004.

Historic MF Data
Unlike most other brands, the money factor for BMW FS leases is the same regardless of model (with rare exceptions).
10/2020: .00082 MF
08/2020: .00099 MF
06/2020: .00118 MF
05/2020: .00118 MF
02/2020: .00142 MF
09/2019: .00128 MF
05/2019: .00165 MF
03/2019: .00177 MF


The MF can be manipulated via:

• Multiple Security Deposits (minus .00005 per MSD, up to a maximum of .00035)
• a One-pay lease payment (minus .0003)
• Acquisition Fee waiving (plus .0005) [Usually not recommended, unless doing a 24 month lease]

Multiple Security Deposits (MSD)
With BMW FS, you can reduce your monthly payment by placing multiple security deposits upfront. Unlike a down payment (i.e., a capitalized cost reduction), you get this amount back at lease-end. MSDs work by lowering the money factor (MF) on a lease. MF is essentially the interest rate on a lease; lowering the MF reduces the finance charge you pay.

A security deposit is equal to your monthly payment (including tax) rounded to the nearest $50. A maximum of 7 security deposits are allowed up to a maximum of .00035. Each security deposit lowers the money factor by .00005. MSDs can be a good ROI.

Related thread(s): Downside of MSDs? 2.1k

One-Pay Lease
You can choose to pre-pay 100% of the lease payment in exchange for an MF decrease of .0003.

Waive Acquisition Fee
The acquisition fee for leases through BMW FS is $925. Dealers can no longer mark it up for additional profit. The acquisition fee can be waived in exchange for an MF increase of .0005, which may be more favorable for shorter lease terms.


Exec/Demo cars can be leased and qualify for lease cash, corp fleet, loyalty + recent grad provided an equivalent new model of the same year has lease support from BMWFS. MSDs, USAA and OL codes can also be used, provided the vehicle has less than 5,000 miles. Mileage under 5k is subject to a residual reduction of $0.25/mile less 500 miles. EX: loaner has 5000 miles. Penalty would be 5000 - 500 miles *.25 = $1,125 residual penalty.

The car must have 2500 miles and 3 months of service (un-verified information)

If the loaner has > 5,000 miles, there is a further 7% residual drop in addition to the mileage penalty. You will also lose ANY incentives (Lease Cash, USAA, OL Codes, ETC…)

If the loaner has > 7,500 miles, there is a 9% residual drop in addition to the mileage penalty.
You will also lose ANY incentives (Lease Cash, USAA, OL Codes, ETC…)

Corporate/Demo loaners would continue to receive the free maintenance plan for 3 years/36k upon lease inception. However, the clock starts on initial in-service date, NOT the date of you beginning the lease. In other words, if you take a 3/36 term 6 months and 5,000 miles after the car was put into demo service, you would receive 30 months/31k miles of coverage. The same would apply for warranty coverage.

Incentives
Loyalty/Conquest/Corporate Fleet
Build Out/Option Credit
Graduation
USAA
Driving Event or OL Code

One Life
Normal events can be found here. 211 These events usually consist of auto cross, extended test drives, and for a fee (250/half day), an abbreviated M performance driving school.

These events have a caveat, where only $500 of the $1000 rebate is provided by BMW FS, the additional $500 is provided by the BMW Dealer where the event is hosted and you are purchasing your car, so your mileage may vary.

 

[Sniperwannabee]

He preaches common sense nothing more.

thats much needed in our society!!!!hahahah

 

[Adam B]

thats much needed in our society!!!!hahahah

Sad but true

 

[SigSauerkraut]

For business/tax reasons leasing works.

But for an individual it is just stupid. I know a ton of people who have tried it and no one has ever done it twice.

Help me understand your point on business/tax reasons.

 

[Austaz]

If your very sure you are going to stay under the mileage and keep it for only 2-3 years a lease can sometimes work out.

But you need to shop around a lot. Look for cars and a model with a high residual, often different trims will have different residuals(Edmunds forums I think has people that post them each month). Look for a big discount off MSRPthrough a dealer discount, manufacturer rebates, company programs and club memberships. MSD (multiple security deposits) are good and bad as they can lower the payments and save you more than the interest you’d get on money sitting in the bank but they make it almost impossible to get out of the lease early. with good rebates and a high residual it works out well.

Lease transfers are a mess this last year with covid, some manufacturers are using it as an excuse not to do transfers and lock people in so make sure you really want the car for the lease period. If you pick the terms and mileage right on a 2-3 year lease you should not pay for the first 2 services (turn in a few days early to skip the 3rd year one if you were going to have to pay for it) or any tires/brakes as they will not be worn.

With all of the above I’ve leased the last 4 cars and 3 worked out well, one was about a wash vs buying and selling.

But you don’t lease the car you want, you lease the one that makes sense and you really have to shop all the factors vs just asking a dealer for a price. I’d normally work 5-10 dealers via email on pricing once I already knew the residual, the finance company money factors and all the rebates so the only thing they can play with is the sale price and funny stuff like delivery and acquisition fees.

If you go in wanting to lease a specific car at a dealer it’s going to cost a lot.

 

[eastexsteve]

Long story short. Wife totaled her BMW X3 this week so we are in the market for a new one. Considering a lease as she only puts around 10k per year on a car. Hers has been out of warranty for a year or 2 and that always was unsettling to me. I did all of the basic wrenching like oil changes, plugs and wires, etc.

I'm considering a lease to keep us in warranty, free maintenance etc. Anyone lease their vehicle instead of buying? I don't really want to own another one out of warranty.

Leasing would be $5k down, $615/month for 36 option to buy for $27k

Buying would be $20k down and $615/month for 60 months with intent of trading at 3-4 years

If you can write off the entire cost of the vehicle, then a lease may be the way to go. Otherwise, buy it.

 

[eastexsteve]

Help me understand your point on business/tax reasons.

If you can claim that you use the car 100 percent in your business or farm, then you can deduct the entire cost of the vehicle on your Schedule C or Schedule F. (A lot of people do this.) But, if you are just an average Joe that gets a paycheck from someone else and/or doesn't own a farm, you can't do this.

 

[eastexsteve]

@2ndamendmentfan

Owning is cheaper, no doubt.

And if you are fine with driving the same car for 20 years, more power to you. If you like working on your car in your garage, buying is definitely better. If you hate these things and see ownership as a ball-and-chain, leasing has its advantages.

So, trade it in before it starts giving you any trouble.

I think we can agree not all decisions in life have to be based solely on finances and getting the cheapest option? Imagine how crappy our lives would be if we always had to choose the cheapest option

It's not your house. It's just a car. It's a method to safely get you from point A to point B in reasonable comfort. Save your money and buy all those new guns you always wanted!

 

[SigSauerkraut]

If you can claim that you use the car 100 percent in your business or farm, then you can deduct the entire cost of the vehicle on your Schedule C or Schedule F. (A lot of people do this.) But, if you are just an average Joe that gets a paycheck from someone else and/or doesn't own a farm, you can't do this.

Right, but it's not like you don't get any tax deductions if you purchase the vehicle. In reality, you'll get more of a deduction (and sooner) with a purchase. I get the capital structure and cash flow reasons, especially with businesses that have large fleets, but I don't think the math works out in favor of the lease on the tax side

 

[Buzzinga]

So, trade it in before it starts giving you any trouble.



It's not your house. It's just a car. It's a method to safely get you from point A to point B in reasonable comfort. Save your money and buy all those new guns you always wanted!

Thanks for the advice.

 

[eastexsteve]

Right, but it's not like you don't get any tax deductions if you purchase the vehicle. In reality, you'll get more of a deduction (and sooner) with a purchase. I get the capital structure and cash flow reasons, especially with businesses that have large fleets, but I don't think the math works out in favor of the lease on the tax side

I've never done it, but I suppose you could take a Section 179 business deduction on the vehicle if you paid cash for it. I would have to do the math on it to see if it was better to lease and write off all the expenses related to the vehicle. Of course, unless you own a business and can do this, it's a moot point.

 

[thexman]

For European cars especially German luxury brands lease as she does not drive much. Japanese, buy.

 

[ma smith]

Yall would laugh if I showed you how little damage it took to total it. The airbags didn't even go off. Literally a fender bender. But that's what happens when headlights are 4 grand.

insuance for that ain't free either

 

[kenny1773]

I am sure most here are not interested in a cheap Kia, but this is a lease deal that MIGHT be of some value (just to show they do exist)

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This is $75/month for 24 months

Click into the fine print and you find out that with all the fees, even the $0 down is a joke
The cost to you for 24 months in the end is $4000
You can buy the stupid car for $14,500

If you just need something to drive to get you through 24 months, its a good deal, in the long run I think you still lose a little because of the stupid dealer fees related to this deal.

(I am looking for an econo car for my 17 year old, DEALS on 2020 models seem to be cheaper than buying a used car these days)

 

[eastexsteve]

I am sure most here are not interested in a cheap Kia, but this is a lease deal that MIGHT be of some value (just to show they do exist)

My brother and I grew up in a two bedroom frame house. My brother is CEO of a multi-national medical R&D company. He could drive anything he wants. He drives a Kia. I own two 160 acre farms. I didn't inherit them. The bank doesn't own them. I do. I could drive anything I want. I drive a four year-old Chevy van, and my wife drives a two-year old Mitsubishi Outlander. Being financially successful is often a result of good money management and spending smart. "Cheap" is relative.

 

[SigSauerkraut]

I've never done it, but I suppose you could take a Section 179 business deduction on the vehicle if you paid cash for it. I would have to do the math on it to see if it was better to lease and write off all the expenses related to the vehicle. Of course, unless you own a business and can do this, it's a moot point.

It doesn't matter if you paid cash or purchased with financing and section 179, bonus depreciation, or regular MACRS get you to the same place. Point is that with a purchase you wind up with deductions equal to the total purchase price and when financing isused those deductions often come well before the cash goes out the door. With a lease, the deductions are less overall and come slower because they're matched to the cash payments. Maybe there's some one-off situation where under specific/odd facts it works out, but 99.9% of the time there isn't a tax advantage to leasing and in most cases it's a tax detriment.

 

[brianf]

it’s all about personal comfort level.

If you always like new things and don’t want to deal with it...it works

if it’s a expensive/sports car and you don’t want to deal with it after warranty is up..it works

If you have enough money and the payment doesn’t matter in the grand scheme ...it works

 

[GrumpyOleFart]

I buy new rifles, and new scopes.
A new car for my Babe, and her old one becomes our backup/my weekday work car. I offered my Babe a sporty car, she just wanted a reliable mid range hatchback. (don't you just love practical, hot chicks)
The Isuzu D-Max is new, because we use that for shooting, camping, and hauling wood and stuff, around the block, and down to the farm. It will probably be run into the ground, so will earn it's keep.
Those Isuzu trucks are rock solid, and not vamped up car engines, pretending to be trucks.
Leasing private vehicles doesn't have a tax benefit for me.
I wouldn't get a BMW, because it's too pretty for how I would treat it.
My neighbour has all 3 of his SUV's on lease, maybe it works for him.... but he does like new bling, and showing off his bling.

 

[Nimothy]

My wife drove a Lexus till January this year, and we’ve had 5 German cars in our life, I don’t get the “German refinement” people speak of. It just is t true these days. Technology wise they are 5 years behind American/Asian cars in the way of creature comforts. As for longevity every car it seems except German cars seem to do 100k-150k without issue these days even cheap ass kias but those Kia actually have creature comforts that Germans don’t seem the need for. If you’re looking for a quick suv that is good on style and easy on gas I think y’all should look at the Ford Edge sport. That car is hella fun to drive for what it is. And if you want a tire shredder the jeep srt is where your money should go. But you should also buy a dave Ramsey book and pay CASH.

 

[eastexsteve]

It doesn't matter if you paid cash or purchased with financing and section 179, bonus depreciation, or regular MACRS get you to the same place. Point is that with a purchase you wind up with deductions equal to the total purchase price and when financing isused those deductions often come well before the cash goes out the door. With a lease, the deductions are less overall and come slower because they're matched to the cash payments. Maybe there's some one-off situation where under specific/odd facts it works out, but 99.9% of the time there isn't a tax advantage to leasing and in most cases it's a tax detriment.

I never leased, but I certainly wouldn't lease if I couldn't deduct the cost of the lease. I wanted to drive home the point that unless you can do this, you're at a disadvantage and likely better off purchasing. For the average layman, I always considered a lease to be a hole in the ground you threw money into. I have actually purchased two vehicles that I made such a good deal on them that I drove them for a year and sold them for almost what I paid for them.

 

[BigTex]

My wife drove a Lexus till January this year, and we’ve had 5 German cars in our life, I don’t get the “German refinement” people speak of. It just is t true these days. Technology wise they are 5 years behind American/Asian cars in the way of creature comforts. As for longevity every car it seems except German cars seem to do 100k-150k without issue these days even cheap ass kias but those Kia actually have creature comforts that Germans don’t seem the need for. If you’re looking for a quick suv that is good on style and easy on gas I think y’all should look at the Ford Edge sport. That car is hella fun to drive for what it is. And if you want a tire shredder the jeep srt is where your money should go. But you should also buy a dave Ramsey book and pay CASH.

The BMW just drives so much better than anything else in its class. Their AWD and HUD systems are really impressive. Like previously stated, I'm not buying a BMW to be a reliable turd to get from a to b. If that were the case, I'd get her a Honda or Toyota. As to Ramsey, I'm good. Some times paying cash doesn't make sense. If I can make payments @ 2% interest while letting the lump of cash earn 17-22% compounded for me, I'm gonna do that.

Anyway, I came to ask about leasing experience and got the info I was looking for. We are going to test drive a CPO X3 M Sport on Saturday.

 

[E. Bryant]

I've never done it, but I suppose you could take a Section 179 business deduction on the vehicle if you paid cash for it. I would have to do the math on it to see if it was better to lease and write off all the expenses related to the vehicle. Of course, unless you own a business and can do this, it's a moot point.

The tax law seems to change every year, but if I recall correctly, you can take a 100% write-off of "transportation equipment" (pickup trucks) under Section 179. Passenger cars and large SUVs (GVWR over 6000 lbs) have lower limits. This is one reason why your local attorney might be driving around in a fancy HD pickup with a pristine bed.

Now the fun begins when I decide to take out a loan on a new $60k truck (of course it's smarter to use someone else's money at 3% APR, and I am a very smart businessman), and then deduct 100% of the purchase price that year. Feels pretty good, right? But then I can't deduct the payments in the following years. Ouch, that smarts a bit. And then I get sick of it in three years and trade it in because the cool kids have all upgraded their trucks; now I'm really in a hole.

My accountant always has fun stories like this as she explains the differences between what I could do and what I should do. For some reason, these stories usually involve young guys that own roofing companies.

 

[jphil108]

In 2013 I bought a 1990 Nissan Pathfinder for $140, AC worked, new stereo, the starter didn’t work but the guy I bought it from had a new one in the back he gave me, turned out to be a loose ground, so I took the starter back to advance and got $123 back for it. I don’t know how many miles it had on it because none of the gauges worked except oil pressure, I drove it for what I assume to be about 25000 miles, all around town or through trails, I drove it over curbs at 50, jumped railroad tracks, and even pulled my 2wd f250 out of the mud. in that time I had to put $60 in used tires on it, $30 in valve cover gaskets, over $70 to feed its oil habit, $27 a year for registration, and probably $200 total for insurance for 4 years and god knows what I spent in fuel. I spent $115 on a wagoner Dana 44 for an SAS project but in 2017 the floor finally rotted through, 3 of 6 sets of exhaust studs stripped out all at once (aforementioned jumps on top of a careless design by Nissan) the combination of the leaking exhaust gaskets and a hole in the floor made for something similar to a gas chamber and at one point the carpets do the heel of my shoe lit on fire when the rusty remains of the drivers foot well touched on the down pipe , and then the county told me I couldn’t keep derelict vehicles on my property, so I sold it for $560, sold the Dana 44 for $375 and moved to a different county,. The kid I sold it to spent $200 on ARP exhaust studs and probably 60 hours to fix something I had neither the time nor the interest to fix and he loves the car and will probably drive it for another 50,000. unbelievable how easily you can lose your ass on a used car, huh? In all truth I have lost a lot of money on a brand new car that I needed and won’t ever buy new or lease ever again, I might however buy another pathfinder if the right one comes my way,

 

[Chickentoast]

X3 is a POS. Lifted 3-series. Feels cheap and drives cheap compared to their better offerings. If you're already looking at used, please at least drive an X5 with the V8 to compare. It's a real car - the doors thud when closed, it doesn't rattle on garbage roads, it's not buzzy inside, it's effortlessly faster than the X3, and while not being as nimble in the turns, it's sportier than any SUV needs to be.

As far as lease vs buy, pricing, etc. It's a depreciating asset, and it's your money!

 

[vinniedelpino]

Hi,

If you have a business...have the business lease it for way better tax deductions.

Sincerely,
Theis

How? You lease a vehicle and you write off the lease payments as they're made. You buy it and you have options to accelerate depreciation through section 179 or bonus depreciation for more up front tax benefit. Either way you're writing off what's ultimately paid for the vehicle. With the purchase you get the timing benefit.

This is especially true with heavy trucks/SUVs with a GVW of over 6000lbs. (Suburbans, Tahoe, Expeditions, full sized pickups etc.)

The only time a lease would make sense is if the buyer can't obtain financing for an outright purchase, and as a workaround enters into a capital lease with a bargain purchase option. Then it can be treated as an outright purchase for tax purposes, but it's generally more expensive in the long run. Or maybe the acquirer is worried about the asset becoming obsolete in the near future and is using the lease as a hedge against the risk of a sharp decline in the value of the asset.

It's pretty rare that a lease is the way to go though.

 

[Aries256]

I wouldnt own a bmw, they are a royal pain in the ass to work on, they break if you so much as look at it the wrong way, ridiculously overpriced parts, etc. Only a land rover, or anything made by Fiat is worse.

 

[Jefe's Dope]

Leasing is fine IF you do the math and it works out in your favor per your needs and situation.

It's much more difficult to math a lease vs. borrowing.

1. DO NOT, ever, put ANY money 'down' on a lease. You're renting not buying and you'll never see that 'down' payment IF you total the vehicle sooner than later. Your insurance covers the car, not you, and the lessor. And you're not really reducing your costs for leasing by putting more down. DON'T DO IT. IF you're leasing, you're using your money to earn you more money elsewhere anyway.

2. You MUST know the 'money factor', fancy term for interest when speaking lease, and factor this in. There's an equation to the interest equivalent and you can much better compare apples.

3. NO more than 39 months. Preferably 36 months. If you're going longer, just buy the fucking thing. Leases are for turnaround, not long term vehicle usage unless you're in a business writing off a fleet of vehicles.

4. They're practically giving away financing right now, so you're much likelier to be better off just buying where you can follow the normal rules of money management involving a vehicle. Put down as much as possible and then some more. If you're paying 0% interest, you can extend your length of financing but be aware that your vehicle is depreciating faster than you are paying it off if you go beyond 60 months. And that's usually the end of the drivetrain warranty any way.

5. Start at the beginning. Get a good deal on the car you want FIRST, then decide on how to finance. Otherwise you're just buying a payment. If you do your homework first, you'll know what your payment is going to be before you even step foot into the dealership.

6. Most of the money made on new car sales is in the financing room when you go to sign your paperwork. That's where they sell you the money makers. Just say no. To everything. I guarantee you can find it cheaper elsewhere. They'll overestimate your payments first then try to sell you something for a lot then he'll just "give" it to and your payment doesn't change. That's because he gave you an inflated payment estimate first. If you say no, you'll likely see your estimated payment drop by a lot. But nobody ever complains about that, so...

 

[BigTex]

X3 is a POS. Lifted 3-series. Feels cheap and drives cheap compared to their better offerings. If you're already looking at used, please at least drive an X5 with the V8 to compare. It's a real car - the doors thud when closed, it doesn't rattle on garbage roads, it's not buzzy inside, it's effortlessly faster than the X3, and while not being as nimble in the turns, it's sportier than any SUV needs to be.

As far as lease vs buy, pricing, etc. It's a depreciating asset, and it's your money!

We have driven the entire Xline 1-7. 3 is her preference. I personally like the 6, but ill never be without a truck. We never had any of the issues you speak of with the last x3, and the turbo I6 had plenty of get up and go.