Official Lease Residuals Leaked For the BMW 1-Series, X6 And M3

keeping high residual value is the only way to keep your monthly lease payment low, and that why you can lease those 30k, 40k car with less than 500 dollar payment.

— ghosthunter (View Profile)

Posted on 3/3/2008 11:31:50 PM | | Votes: 6   

and you're pissed about that? Mercedes giving you that ridiculously high residual is why you have such super low payments for 5 years. And if you are upset because you tried getting out of the car early, well, that's your fault. You should have known better than to
a) lease a car for five years, and
b) try to get out of a five year lease early.

You should have bought the car then, not leased it. Then you could have traded out of it early. But then the payments would have been much higher throughout the time you had it. That's how it works, you don't get to have your cake and eat it too.

— JRobUSC (View Profile)

Posted on 3/4/2008 8:16:35 AM | | Votes: 6   

Generally speaking, you are doing well if the difference between residual value and negotiated capitalized cost is such that, when divided by the term of the lease in years, it works out to 10% or less per year depreciation. Of course this assumes that interest rates are low and you have little opportunity to earn more money by investing the stream of payments elsewhere.

For example, if you get a 10% discount, your capitalized cost is 90% of MSRP. If the term is 4 years and the residual value is 50%, your straight line depreciation
is 10% annually. On this basis, if a car lasts 10 years, it makes no difference whether you lease or purchase. However, leasing gets you into a new, more reliable car more often.

— EnnNorak (View Profile)

Posted on 3/4/2008 10:23:40 AM | | Votes: 1   

Well guys. You assumed that I had a super low payment. I didn't I was paying damn near a grand a month. I know I could have bought the car for the same money now. I don't knoow what I was thinking when I did that. I got had. What can I say?

— TauronB2G (View Profile)

Posted on 3/4/2008 4:07:19 PM | | Votes: 2   

TauronB2G, I have leased 3 different cars in the last decade, all with zero down and no security deposit -- that is the only way I will deal.

— EnnNorak (View Profile)

Posted on 3/7/2008 2:50:01 PM | | Votes: 1   

bmw has great residuals for many years now as used bmws are in high demand.

but there's no new bmw that you can get into for $299. they have promotions on their site for a base model 328i sedan for $369/month with $2500 down. but as soon as you add a few options it flies into the mid-$400s. very competitive with class competitors but certainly more than an accord.

what was the point of your comment anyway huu?

— enthusiastx11 (View Profile)

Posted on 3/3/2008 11:47:50 PM | | Votes: 2   

i never know that Used BMW is in high demand.
i live in socal, and you can barely see a used BMW (i wonder where the hell did they go?)

— ghosthunter (View Profile)

Posted on 3/4/2008 2:36:01 AM | | Votes: 1   

huu was referring to an article, I remember it - whereas a loaded Accord around 30k can be leased for the same price as a BASE 328i - if you work a deal the numbers can be really close.

— M35MT (View Profile)

Posted on 3/4/2008 8:37:08 AM | | Votes: 2   

ghosthunter ... BMW sells more certified pre-owned cars in the US, than any other luxury car maker. It is by alot. Last BMW sold more than 30k more certified cars in the US, than Lexus. This is one reason why the residuals can be so high. Also, on these limited cars the residual may be high, but there is NO Factory Rate support. I just worked out a lease for my client on his 135 in Illinois and his monthly without any down was over $700 a month for a $40k car.

— BMW4me4ever (View Profile)

Posted on 3/4/2008 10:29:23 AM | | Votes: 2   

ghosthunter:

all the used bmws leave southern california and go to places where people don't spend 40% of their income on their car payment. only in southern california do you see thousands of people who RENT but still drive a $50k car. screwed up priorities.

— enthusiastx11 (View Profile)

Posted on 3/4/2008 11:52:00 AM | | Votes: 1   

^ no, it won't be. As long as we're in the land of make believe why not get yourself a new M3 at invoice while you're at it?

— JRobUSC (View Profile)

Posted on 3/4/2008 9:47:55 AM | | Votes: 1   

opfreak ... it makes no sense to lease a Euro Delivery. Basically, you will make 2 payments without ever driving the car. How does that make sense? Talk about paying for something you cant use. 1)Reason being, is the in the US a Euro deliver contract must be funded by BMW no later than 30 days prior to you taking delivery in Germany of the 128. You will make 1 payment, without even driving your new car. 2)after you pick up your car in Germany, and want to return it to the US, you must take it to a designated drop off center. From there it will take 3 to 5 weeks to arrive at your dealer in the US. Thus you will be providing BMW a 2nd payment without driving you car.

— BMW4me4ever (View Profile)

Posted on 3/4/2008 10:33:53 AM | | Votes: 4   

Euro delivery on a 1-Series is only $2300 less than U.S. delivery, so unless you work for an airline or something and you can go to Europe for free (and you spend no money while you're over there) Euro delivery isn't going to be a particularly effective way of saving cash.

— JRobUSC (View Profile)

Posted on 3/4/2008 10:45:41 AM | | Votes: 4   

plus what BMW4me4ever said. Euro delivery is only a savings if you
a) can go to Europe for free, or
b) were already going to Europe whether you bought a car or not.
If neither of those apply and you couple them with the two lease payments you have to make even though you have no car (i.e. you're going to get 34 months of time with your car even though you made 36 payments), you see Euro delivery is not saving you anything.

— JRobUSC (View Profile)

Posted on 3/4/2008 10:51:33 AM | | Votes: 2   

range rover has horrible residuals as resale values are well below average.

— enthusiastx11 (View Profile)

Posted on 3/4/2008 11:53:37 AM | | Votes: -1   

opfreak, I'm not attacking you. By your own math you just paid $1350 over invoice and inconvenienced yourself immensely with back to back 7 hour flights across a 6 hour time difference each way to do so. Plus the annoyance of the airports, customs, etc. And again, I'm out a car for five weeks when I get back.

So yes, my time is worth more to me than that $1000 I saved and the massive inconvenience I had to go through to get it. I'd rather just see if I could get a token repeat buyer discount on the car and get it here. Even if I couldn't and had to pay full MSRP what you just described would not be worth $1000 to me.

— JRobUSC (View Profile)

Posted on 3/4/2008 12:08:05 PM | | Votes: 1   

opfreak .... BMW does not pay your 2nd payment. The Euro delivery program doesnt sell the car at invoice. There is a different pricing structure for a euro delivery car.

— BMW4me4ever (View Profile)

Posted on 3/4/2008 12:16:16 PM | | Votes: 1   

enthusiast you are wrong:

RANGE ROVER SPORT PREDICTED TO RETAIN HIGHEST RESIDUAL VALUE FOR THE SECOND YEAR IN A ROW
IRVINE, Calif., Oct. 29, 2007 - Land Rover North America is proud to announce that the 2008 Range Rover Sport has received the Automotive Lease Guide (ALG) Residual Value Award in the Luxury CUV segment. The annual Residual Value Awards identify those vehicles predicted to retain the highest percentage of their original purchase price after a conventional three-year lease term.

"We understand the importance of residual values in our highly competitive business and are delighted by this recognition," said Chris Marchand, executive vice president of Marketing and Sales, Land Rover North America.

— M35MT (View Profile)

Posted on 3/4/2008 1:01:56 PM | | Votes: 1   

That's not a good deal at all. I don't pay a massive amount more than that for our $66K X5, which I bought.

I know you love Range Rovers, though, so good luck (-;

— S4cabriofoxone (View Profile)

Posted on 3/4/2008 9:54:53 PM | | Votes: 1   

S4,

I got a quote on a loaded $57k 3.0 X5, and it was about $800 all in with tax. But like you said I love the Range...will keep shopping around.

— M35MT (View Profile)

Posted on 3/5/2008 8:47:51 AM | | Votes: 1   

Charlik ... BMW is only bringing 8k X6's to the US market for an entire year for all models. I dont see BMW offering any incentivized lease rates for a few year. In regards to the 1-series, BMW made clear to the BMW Dealer Group that they will not support any Factory Rate Programs for leasing. Not enough profit in the 1-series, therefore leasing not going to be the best option. Plus only have 17k slotted for production in the US for entire model line-up per year .... Not alot of cars. BMW sells about 10k 3-series per month in the US.

— BMW4me4ever (View Profile)

Posted on 3/4/2008 5:50:51 PM | | Votes: 1