10-17-2017, 08:58 AM | #1 |
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Lease residual question
I saw on here somewhere that BMW dropped the residuals for October by 3% compared to last month on the new 2018s. Is that normal? A 3% move in a month seems like a large move for a sophisticated finance company. How typical are these types of changes? Should I expect them to go back up over the next few months (I have until end of March when my 2015 lease expires). Any guidance is much appreciated.
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10-17-2017, 09:15 AM | #2 |
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current oct programing
2017 models MF .00152 15k 55% 12k 57% 10k 58% 2018 models mf .00152 15k 56% 12k 58% 10k 59%
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10-17-2017, 09:43 PM | #4 |
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The difference in residual is hardly appreciable ($700 on a $70k MSRP) and with the added incentives to move the '17's, it should make more sense to get a '17 than an '18, I would think.
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10-17-2017, 10:43 PM | #5 | |
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Also, that's why I wonder if the residuals for the 18s will be back up in a month or two once the 17s are cleared out. |
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10-18-2017, 08:51 AM | #6 |
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Interesting, I was just told by my dealer that if you have an existing lease where you put down MSDs to reduce the money factor, you're allowed to transfer those MSDs to a new lease and continue to get a money factor discount.
I had previously thought that program was discontinued entirely. |
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10-18-2017, 10:11 AM | #7 | |
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10-18-2017, 08:17 PM | #11 |
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Forgot to ask... I thought the dealerships are allowed to markup the acquisition fee, right? So this is another "discount" we can fight for?
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10-18-2017, 08:33 PM | #12 |
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Theoretically. My quote had a fee in at $925 so I'm assuming it's non negotiable. I noticed the fee on my 2015 was $795. Price inflation by BMW I presume.
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10-18-2017, 09:04 PM | #13 |
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Wait a second. I'm being quoted a money factor of .00117 which is supposed to be the base MF less the amount reduced by 7 MSDs. Does that math work? Above someone posted it's supposed to be .00152 base which, assuming the MSD discount factor of .00007 hasn't changed, would result in a base MF less reductions of .00049 to get to .00103.
Did they reduce the MSD benefit to .00005? Does it still make sense from a return on investment standpoint to utilize the MSD program? On my build, total interest expense over the life of the lease is $4,512. Assuming a base MF, interest expense would be $5,862. So, by putting down $6,300 I save $1,350, or roughly 21% on my $6,300 investment. On an annualized basis, it's like earning 7% a year on that investment, which is probably pretty good depending on your assumption for the stock market over the next three years. Did I do that right? |
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10-19-2017, 09:16 AM | #15 |
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Every situation is different and I've read here and other forums that in certain conditions the residual value can be negotiable... but to answer your question... typically no.
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10-19-2017, 09:17 AM | #16 |
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Only for existing customer that have a MSD on their current lease.
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10-19-2017, 04:00 PM | #17 |
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That's true. I had them search for M adaptive suspension with M Sport diesel and to no avail.
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10-23-2017, 10:20 PM | #18 |
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Yes, for this limited test it's down from .0007 to .0005 per MSD, with a max of 7.
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10-25-2017, 11:04 AM | #19 |
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I’m being told that with the new MSD availability, you’re not able to increase the amount you have on your existing lease when rolling to a new lease. So I’ve got $5950 on my old lease, but my new one would take $7000 to do all 7 buy-downs. I’m only able to take 5 buy-downs because I can only roll $5000 to the new car.
Anyone have a different experience? |
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10-25-2017, 02:43 PM | #20 |
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Bought my lease out Friday, oh well. I want a 2019 body style anyway. I still think this is due to business moving away (MSD's being back) and will resume like other manny's have.
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10-25-2017, 07:56 PM | #21 | |
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