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      10-17-2017, 08:58 AM   #1
wedge000
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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, 05:56 PM   #3
retx
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But, I recall BMW does help compensate this 3% RV change by another $1,500 lease credit in Oct. Better than nothing. Did anyone receive this?
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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.

Quote:
Originally Posted by GOLFFRR View Post
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, 10:43 PM   #5
wedge000
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Quote:
Originally Posted by Whazzup@NJ View Post
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.
That might be true, but I'm never going to find a 17 sitting on a lot with the options I want. DHP almost rules that out completely.

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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Quote:
Originally Posted by wedge000 View Post
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.
This only applies to existing customers with MSD. I got an email yesterday.
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      10-18-2017, 06:52 PM   #8
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MSD program is back until the end of Dec? But, NY can't do MSD in the past, or can we now?
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      10-18-2017, 06:59 PM   #9
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Anyone know the base BMW lease acquisition fee?
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      10-18-2017, 07:12 PM   #10
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Originally Posted by wedge000 View Post
Anyone know the base BMW lease acquisition fee?
Over the BMW site, in its offers, $925 acquisition fee is listed.
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      10-18-2017, 08:17 PM   #11
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Quote:
Originally Posted by wedge000 View Post
Anyone know the base BMW lease acquisition fee?
Quote:
Originally Posted by retx View Post
Over the BMW site, in its offers, $925 acquisition fee is listed.
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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Originally Posted by retx View Post
Forgot to ask... I thought the dealerships are allowed to markup the acquisition fee, right? So this is another "discount" we can fight for?
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
wedge000
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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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      10-18-2017, 10:42 PM   #14
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At the end of the lease, does BMWFS accept anything less than the residual if I wanted to buy the car?
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      10-19-2017, 09:16 AM   #15
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Originally Posted by HZX540e View Post
At the end of the lease, does BMWFS accept anything less than the residual if I wanted to buy the car?
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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Quote:
Originally Posted by retx View Post
MSD program is back until the end of Dec? But, NY can't do MSD in the past, or can we now?
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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Quote:
Originally Posted by wedge000 View Post
That might be true, but I'm never going to find a 17 sitting on a lot with the options I want. DHP almost rules that out completely.

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.
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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Quote:
Originally Posted by wedge000 View Post
Did they reduce the MSD benefit to .00005?
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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Quote:
Originally Posted by wedge000 View Post
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?
Just confirmed that this info is wrong. You can increase you MSD if needed.
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