Residual values of the new 7

I was all set to lease a new 750 until I learned about the residual values. BMW has apparently lost enough money through subventing the residuals of the outgoing model that it has set the residual value of the new one at 50% after only two years. Leasing costs per month on the new car have virtually doubled regardless of term.

This has talked me into keeping my old car.

Originally Posted by shoes

I was all set to lease a new 750 until I learned about the residual values. BMW has apparently lost enough money through subventing the residuals of the outgoing model that it has set the residual value of the new one at 50% after only two years. Leasing costs per month on the new car have virtually doubled regardless of term.

This has talked me into keeping my old car.

thats why, I called it off for the time being! BMW should put their act together or go join Japanese to commit suicide after 25% sales drop.

This is HUMANGO TICKET ITEM TO SIT ON!

Originally Posted by zibawala

thats why, I called it off for the time being! BMW should put their act together or go join Japanese to commit suicide after 25% sales drop.

This has been anticipated. BMWNA reduced orders by 44K cars in 2009 - about 4K per month - or 20% over 2008. They are selling less, but they have already matched inventory levels.

Originally Posted by chrischeung

This has been anticipated. BMWNA reduced orders by 44K cars in 2009 - about 4K per month - or 20% over 2008. They are selling less, but they have already matched inventory levels.

what do you mean?

I'm hoping the terrible residuals are just a launch thing and they'll improve over time (similar to the situation with the X6). I wouldn't lease a 7 at the current rates, no question.

Originally Posted by XZLR8

I'm hoping the terrible residuals are just a launch thing and they'll improve over time (similar to the situation with the X6). I wouldn't lease a 7 at the current rates, no question.

I hope and wish. To counter the WORST residuals, BMWF is to subsidize price and bottom line money factors to stay competitive for leasing.

If one is going to buy it out for 100, 000 cash, then no story.

If it makes you feel any better I just penciled out a deal with MB to lease a S63 AMG and the residual for a 3 yr lease was 42% which I calculated was a $500 depreciation every week over the life of the lease. Needless to say I passed on that plus the money factor worked out to almost 9%. OMG. Nice thing is they have 1.9% financing on all AMGs right now for buying and not leasing.

Originally Posted by sunny_j

what do you mean?

Cars aren't piling up on dealer lots because of the downturn in sales, since BMWNA already reduced supply, maintaining similar inventory levels as last year - even though new car sales are lower. Hope that makes sense.

Originally Posted by chrischeung

Cars aren't piling up on dealer lots because of the downturn in sales, since BMWNA already reduced supply, maintaining similar inventory levels as last year - even though new car sales are lower. Hope that makes sense.

yes it does. thanks

Well with the current Money Factor reduction (.00180) for Returning FS customer the rate is less then 2%. And a 750i for around 96g's is under $1400. Not bad.

Patience grasshopper. Give BMW FS a little time and I'm sure the lease programs will become more favorable. It's unreasonable to expect a bargain on the F01 given how few are in North America at the moment.

Originally Posted by New Motors

Well with the current Money Factor reduction (.00180) for Returning FS customer the rate is less then 2%. And a 750i for around 96g's is under $1400. Not bad.

I am still waiting for those good numbers! man from you!

Originally Posted by SleepTight

Patience grasshopper. Give BMW FS a little time and I'm sure the lease programs will become more favorable. It's unreasonable to expect a bargain on the F01 given how few are in North America at the moment.

I agree! as soon as see that my patience will pay back, I 'll jump