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      11-04-2015, 08:00 AM   #1
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BMW residual values are a joke now!!!!

2016 M235i is 55% for 10k miles!!!!!!!


What a effin joke!!!!!!!!


A car that was $500 month 3 months ago is now $600 month, for exact same fawking car!!!!!
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      11-04-2015, 08:38 AM   #2
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There are better and worse time of the year to buy cars.

Residuals are going to be indirectly impacted by what other rebates are going on during a time period, projected CPO sales volumes 3 years from now, and all kinds of other factors. It's also why you see them flip flop between 36 and 39 month leases during certain times of the year.

If you aren't happy with the current deals then you really just need to keep an eye on it and decide when to bite. I waited 4 months to pick up my first F30 to balance the residuals + UDE rebates and other programs that were being offered.
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      11-04-2015, 10:55 AM   #3
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I got in at 60% on a 12K lease. Basically the car is un-leasable right now unless you are OK with paying the, I believe, 7% difference this month.

At the current rate, might as well go 340i. Even though the car price is higher, the payment would be close to or cheaper depending on how you option it. I think I saw 62% for 10K with $1500 in incentives.
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      11-05-2015, 01:28 PM   #4
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When BMW leases the volume of cars that they do compared to the ones that are purchased they can do just about whatever the hell they want to do. I am buying my next one so I can skip the game entirely.
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      11-05-2015, 01:57 PM   #5
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That's insane....does anyone know why this is happening?
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      11-05-2015, 02:14 PM   #6
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Quote:
Originally Posted by BMW335iOn18s View Post
That's insane....does anyone know why this is happening?
This happens every year - residuals fluctuate month to month and are subject to factors and programs. See previous post.

Should not be a shock to anyone unless this is your first lease.
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      11-05-2015, 02:17 PM   #7
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Quote:
Originally Posted by Cyberdemon
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Originally Posted by BMW335iOn18s View Post
That's insane....does anyone know why this is happening?
This happens every year - residuals fluctuate month to month and are subject to factors and programs. See previous post.

Should not be a shock to anyone unless this is your first lease.
Yeah l understand but residuals have been in the high 50s/60s for many years now. Why do they keep dropping? My fathers 640i lease is coming to an end. We leased the car in February 2013 with a residual of 58% and 4500 in option credit. Now the same 6 series has Only 4000 in credit and a 53% residual. That's a HUGE difference. Looks like we might just buy out the car.
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      11-05-2015, 02:27 PM   #8
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Quote:
Originally Posted by red-sauerkraut View Post
When BMW leases the volume of cars that they do compared to the ones that are purchased they can do just about whatever the hell they want to do. I am buying my next one so can skip the game entirely.
Was debating leasing, that is definitely out now. Financing my M235xi next week at 1.9% for 60 months...
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      11-05-2015, 04:12 PM   #9
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Quote:
Originally Posted by crbalch
Quote:
Originally Posted by red-sauerkraut View Post
When BMW leases the volume of cars that they do compared to the ones that are purchased they can do just about whatever the hell they want to do. I am buying my next one so can skip the game entirely.
Was debating leasing, that is definitely out now. Financing my M235xi next week at 1.9% for 60 months...
If they start doing 5-7k mile leases that are worth a damn like they are doing in cities like SF i will consider leasing again.

Otherwise i am with you. Purchase.
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      11-05-2015, 04:16 PM   #10
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Quote:
Originally Posted by red-sauerkraut View Post
If they start doing 5-7k mile leases that are worth a damn like they are doing in cities like SF i will consider leasing again.

Otherwise i am with you. Purchase.
My 2012 135i has 17k miles on it after 4 years...I'm with you on the low mileage lease option.
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      11-05-2015, 04:38 PM   #11
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Quote:
Originally Posted by crbalch
Quote:
Originally Posted by red-sauerkraut View Post
If they start doing 5-7k mile leases that are worth a damn like they are doing in cities like SF i will consider leasing again.

Otherwise i am with you. Purchase.
My 2012 135i has 17k miles on it after 4 years...I'm with you on the low mileage lease option.
A lot of people take the train or bus to work and only need a car in the evenings and on the weekends. It makes a lot of sense.
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      11-05-2015, 06:54 PM   #12
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Quote:
Originally Posted by red-sauerkraut
Quote:
Originally Posted by crbalch
Quote:
Originally Posted by red-sauerkraut View Post
If they start doing 5-7k mile leases that are worth a damn like they are doing in cities like SF i will consider leasing again.

Otherwise i am with you. Purchase.
My 2012 135i has 17k miles on it after 4 years...I'm with you on the low mileage lease option.
A lot of people take the train or bus to work and only need a car in the evenings and on the weekends. It makes a lot of sense.
Yeah I only have a 3mi ea way round trip to work but I drive it so I'm happy I'll at least be able to use the car everyday.
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      11-07-2015, 09:44 AM   #13
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Anyone think the 2 series will lease better next year? I'm planning to do ED next year on a BMW. I want to lease, but if there's better deals on the 3 series, I'd take one. Honestly, I was hoping for a LCI on the 2 series next year but it doesn't look like that will happen.
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      11-08-2015, 04:23 AM   #14
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Is this a good deal? Thinking about doing it with a trade in on my M235i.


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      11-08-2015, 09:52 PM   #15
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Quote:
Originally Posted by F80Boost View Post
2016 M235i is 55% for 10k miles!!!!!!!


What a effin joke!!!!!!!!


A car that was $500 month 3 months ago is now $600 month, for exact same fawking car!!!!!

That's ridiculous. Maybe they're thinking the resale value will take a hit now that the M2 is also going to be out there. I got my 12k/36mo at 62% March of last year.

I guess that was just a guess for them at that point since they didn't have anything to base it on in the first few months of production for a new model. 55 for 10k definitely sucks and so does the 54 for for 12k.
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      11-09-2015, 04:41 PM   #16
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For a lack of having nothing better to do, tracking lease prices is a pass time and based on recent years November has never been a good time to lease. Regarding the unattractive lease deals for M235, it may be the result of low inventory. As stated in another post, current deals for the 3er and 4er, which are high production cars, are attractive and if the trend continues, look for prices for those models plus the 2er to drop further in December. And, if you can wait until spring, prices for all models including the M235 will drop even more.

Last edited by Vector Pilot; 11-09-2015 at 05:27 PM.. Reason: What else, typos!
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      11-09-2015, 07:15 PM   #17
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I did pretty darn well in November 2009 and November 2012. I guess I was just lucky. Your points are well made. Oh well. I've got until January 16th to see if the numbers improve.
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      11-10-2015, 10:19 AM   #18
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Quote:
Originally Posted by BMW335iOn18s View Post
Yeah l understand but residuals have been in the high 50s/60s for many years now. Why do they keep dropping? My fathers 640i lease is coming to an end. We leased the car in February 2013 with a residual of 58% and 4500 in option credit. Now the same 6 series has Only 4000 in credit and a 53% residual. That's a HUGE difference. Looks like we might just buy out the car.
Residuals are generally highest when a new model year is released. Because in 3 years when that car comes back onto the lot, it will still be the same as the current model, and demand will be higher.

As time goes on, sales slowdowns, LCI's and other month to month factors impact the residuals. Residuals can still go back up. I leased my F30 in 2013 @ 57% and they climbed back well into the 60's since then.

Supply & Demand and all that jazz.
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      11-10-2015, 03:20 PM   #19
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Quote:
Originally Posted by Cyberdemon
Quote:
Originally Posted by BMW335iOn18s View Post
Yeah l understand but residuals have been in the high 50s/60s for many years now. Why do they keep dropping? My fathers 640i lease is coming to an end. We leased the car in February 2013 with a residual of 58% and 4500 in option credit. Now the same 6 series has Only 4000 in credit and a 53% residual. That's a HUGE difference. Looks like we might just buy out the car.
Residuals are generally highest when a new model year is released. Because in 3 years when that car comes back onto the lot, it will still be the same as the current model, and demand will be higher.

As time goes on, sales slowdowns, LCI's and other month to month factors impact the residuals. Residuals can still go back up. I leased my F30 in 2013 @ 57% and they climbed back well into the 60's since then.

Supply & Demand and all that jazz.
Based on that you anticipate a bump for the 240?
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      11-10-2015, 07:56 PM   #20
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Quote:
Originally Posted by BMW335iOn18s View Post
That's insane....does anyone know why this is happening?
Look at this from another angle. The car is so good and selling so well(*) that it does not require subsidized leases. Because inflated residual is a subsidy. If someone believes that BMWFS is lowballing residuals, then just finance the car. The loan interest rates are better than lease MF, no need to pay $925 acquisition fee, and after three years it will sell for more than 55%. ;-)

(*) October sales are up 82% compared to October 2014
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      11-10-2015, 08:03 PM   #21
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Supply & Demand and all that jazz.
This. When demand drops BMW FS will come up with some incentives. Either bigger discounts upfront, or higher residuals at the back end.
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      11-10-2015, 11:18 PM   #22
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Quote:
Originally Posted by BoomWasabi View Post
Look at this from another angle. The car is so good and selling so well(*) that it does not require subsidized leases. Because inflated residual is a subsidy. If someone believes that BMWFS is lowballing residuals, then just finance the car. The loan interest rates are better than lease MF, no need to pay $925 acquisition fee, and after three years it will sell for more than 55%. ;-)

(*) October sales are up 82% compared to October 2014
I generally don't get the fascination with leasing (baring unusually amazing incentives). For my last three cars I have run the numbers both ways, and I can't see that you save anything at all by leasing once you figure in the fees, even if you end up selling the car in only a few years. Made worse in my state in that you don't save anything on the sales tax here. If you end up wanting to keep the car it winds up costing an utter fortune.

But you are spot on, there is zero reason for BMW to subsidize the leases on these cars with current demand and supply in a very nice balance. They probably won't increase production, they would rather make and sell X1s.
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