BMW will retire some of its Gen5 electric models ahead of schedule, CEO Milan Nedeljković said with the company’s third-quarter results on November 4, because Neue Klasse production ramped up faster than planned. He didn’t name the models. If a BMW i4, i5 or iX is on your list, the question is whether today’s discount covers what the car will be worth later, and for most shoppers our answer is to lease, not buy.
Which BMW EVs Are Actually On Their Way Out?
BMW said only that it can “phase out some Gen5 BEVs sooner than planned.†The cost of that and its other portfolio and structural measures cut its 2026 automotive margin guidance to between -0.5% and +0.5%, from 1% to 3%.
In the US, the i4 and iX were leaving anyway. The i4 exits after the 2026 model year, replaced by the Neue Klasse i3, and BMW ended US allocation of the iX in April. The i5 isn’t being phased out. It continues for 2027 at $67,100 before destination, and its Life Cycle Impulse is due around July 2027, the mid-cycle facelift BMW had planned all along rather than an early exit. We expect that update to bring the Gen6 battery cells BMW already fitted to the facelifted i7.
The Discounts Are Real, And So Is The Resale Gap
BMW’s November offers expire at the end of the month. The 2026 i4 eDrive40 leases for $549 a month for 36 months with $4,849 due at signing and 10,000 miles a year, or finances at 3.99% APR for 60 months with a $3,750 credit. The 2027 i5 eDrive40 leases for $749 a month with $6,969 due, and buyers who finance get the same 3.99% rate and $3,750 credit. The iX gets a $7,500 lease bonus, against 2.99% financing for buyers.
Not everyone will get these numbers. They are BMW’s advertised national offers through BMW Financial Services, available only to customers who meet its credit requirements and only at participating dealers, and the lease bonuses, credits and APRs vary by region, dealer and credit tier and can change or end without notice. Payments exclude tax, title, registration and dealer fees, and some assume a dealer contribution: the i5 deal, for example, is based on a $72,250 car with $3,610 off from the dealer. Confirm the current terms with your BMW center before you sign.
Resale is the catch. iSeeCars data has the i4 keeping 35.5% of its value after five years (49.5% for a 4 Series), the i5 30.0% (44.1% for a 5 Series) and the iX 31.4% (46.9% for an X5), and that’s before the i3, iX5 and facelifted i5 reach dealers. The i3 50 xDrive costs $61,500 before destination, $800 less than an i4 xDrive40, with 463 hp and an estimated 468 miles of range against BMW’s best i4 figure of 333. The iX5 60 xDrive lands in early 2027 at $79,800, under the iX xDrive60’s $88,500, with an estimated 435 miles.
Why Leasing Moves The Resale Risk Onto BMW
A lease locks in the residual value, BMW Financial Services’ forecast of what the car will be worth at the end of the term, on the day you sign. If the car is worth less when the lease ends, you hand it back and BMW eats the difference. If it’s worth more, you buy it at the contract price and keep the equity. That price is $33,385 on the current i4 deal and $38,293 on the i5, according to BMW’s offer terms.
Recent BMW Financial Services residuals on the i5 and iX have been 51% to 54% at 36 months, according to rates posted by Edmunds’ lease moderators, and they were set before the Q3 announcement. The incentives make the strongest case on the iX. With the federal $7,500 credit gone since September 30, 2025, the lease cash is BMW’s own money, and the iX gets a $7,500 bonus for leasing against 2.99% financing for buyers. On the i4 and i5, the $3,750 is there whether you lease or finance, so the case for leasing those two rests on the locked-in residual.
Buying works if you keep cars for at least eight years, because by then the purchase price counts for more than resale. The phase-out doesn’t change the 4-year/50,000-mile warranty or the 8-year/100,000-mile battery warranty. You can also buy used and let someone else take the first hit: BMW’s certified pre-owned program finances 2022-2024 iX models at 2.49% APR for up to 72 months through November 30.
So Which One Should You Lease Or Buy?
Lease the i4 eDrive40, or wait for the i3 if you were looking at an xDrive40. Lease the i5, since a 36-month term signed now ends after the facelift arrives. Lease a new iX, or buy a certified one if you want to keep it.
First published by https://www.bmwblog.com
