When will the F01 leasing settle down?

Every new model gets mediocre money factors and low residuals for leasing when they go on sale. The diesel X5 and X6 (with either motor) were relatively expensive to lease for a while and now they are all at very reasonable rates.

So when do we think the residual on the new 7 will go above 50% for 36 mo., 15k.yr? It seems to take @6 months for this to occur, right?

DRP

Originally Posted by 550isport

Every new model gets mediocre money factors and low residuals for leasing when they go on sale. The diesel X5 and X6 (with either motor) were relatively expensive to lease for a while and now they are all at very reasonable rates.

So when do we think the residual on the new 7 will go above 50% for 36 mo., 15k.yr? It seems to take @6 months for this to occur, right?

DRP

You neglect an important point - the world economy is in the doldrums which has historically not been the case. This has depressed residuals.

The answer to your question is - when used car residuals recover. Which I don't see happening, say, until the Dow gets back up to around 12-13K. When's that - 7 years?

I just did a deal on a lease that seems great to me.

The money factor on a new 7 is only .0009! (Add .0003 for ED in my case) 47% residual with 12k miles. (Cost of 9000 total additional miles before and after are almost identical, so I'd rather pay later at $0.25)

Originally Posted by chrischeung

You neglect an important point - the world economy is in the doldrums which has historically not been the case. This has depressed residuals.

The answer to your question is - when used car residuals recover. Which I don't see happening, say, until the Dow gets back up to around 12-13K. When's that - 7 years?

I agree about the economy and the residuals. I wonder why it hasn't affected the new car prices that much.

I think when the residuals go up the money factor will as well. .0009 is pretty cheap money, previous generation had higher residuals (all of the cars did in 07 and 08) but money factors were typically .0025-.00275 for the 750