[Stevarino]

Question:

Is the 10K/36 mo residual on a 2017 440i convertible 57%? Seems low.

Once again, I don't get this leasing stuff and always end up buying.

Thanks.

 

[ZoomVT]

Where are you seeing 2017 numbers? The 2016 435i convertible shows 63%

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[Stevarino]

Today, at the dealer when I was showing my passport for ED.

 

[ZoomVT]

I guess it looks about right since it's a brand new model and they don't need to prop it up...

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[avidude]

Hope you can delay signing your contracts until the September programs. Most certainly will be better for 2017 models

 

[Wxcaps]

Hope you can delay signing your contracts until the September programs. Most certainly will be better for 2017 models

For all models?

 

[ZoomVT]

I really don't think so... There will be a lot of 2016s to be moved; especially if the 2017 is a new chassis or a new model.

So maybe it will be relatively better, but not actually good.

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[Stevarino]

I give up (again) on leasing and will do a PFCU 1.99% loan.

 

[jjrandorin]

I give up (again) on leasing and will do a PFCU 1.99% loan.

There is nothing wrong with purchasing instead of leasing, especially if leasing makes you as uncomfortable as a few of your posts have mentioned. leasing is not the end all be all for getting a BMW.

With that being said, 57% is not low for a residual, it is more realistic than some other BMW residuals but its NOT "low"

Regular BMW lessees have an expectation of inflated residual values which do not line up with reality, and BMW itself has helped perpetrate that.

These boards would have you think that any residual under 60% is "low" for example, and thats simply not the case unless you are comparing it against the fake residuals BMW has been using, and not "real" value of what a car might actually be worth 3 years from now.

For your loan that you are getting, if you were to sell your car in 3 years, how much do you think you would actually get, if the car had 30k or so miles on it? I would bet it would be somewhere between 50-54% of whatever you are paying now, which would be the "real" residual... not the inflated 60s that people seem to think is the appropriate numbers.

People that post here that have access to nada guides and stuff would probably say the value is closer to 50% than 60% left after three years.

If you are purchasing, you probably are not selling again in 3 years though, so that model wont work for you (and again thats totally fine!) Just like some people refuse to be in debt so wont finance a car at all there is no one size fits all.

 

[Ninong]

Question:

Is the 10K/36 mo residual on a 2017 440i convertible 57%? Seems low.

Once again, I don't get this leasing stuff and always end up buying.

Thanks.

Yes, that is the correct 36/10k residual for a 2017 440i convertible. It doesn't seem low to me. Have you found a higher residual for that model offered by your credit union or your bank? If you find a higher residual elsewhere, then it would be accurate to say that 57% is "low" for 36/10k.

Did you check with a Mercedes dealer to see what their residual is for 36/10k on a 2017 MB? Actually that's a little hard if you're looking at a 440i Convertible because I think all they offer is a roadster without a rear seat, right? So no real comparable model.

We did compare BMW 3-series sedans against MB C300 sedans earlier this evening in a different thread and the BMW's were slightly better in residuals but it was close, as usual. I just checked their website one more time and noticed that if you were looking for a 2016 MB SLK 350 its residual for 36/10k is 56%. I did find their 2016 C-class sedans and they're using 62% for 36/10k on those compared to BMW's 66% for 328i and 63% for 428i.

Anyway, in general, MB lease residuals are not as good as BMW's residuals towards the end of the model year but sometimes one or two percent higher than BMW's when the new model year first comes out. In other words, usually Mercedes residuals are more realistic than BMW's but the difference is usually not more than one or two points one way or the other. Both Mercedes and BMW use lease residuals to support their dealers' efforts to move current inventory when the new models are arriving at the dealerships but BMW usually is a little more overly-generous than Mercedes in setting unrealistic residuals at the end of the model year. For example, BMW might offer you a residual that is 6% higher on a 2016 right now than its replacement 2017 model whereas MB might make that difference only 3% with the outgoing models having a higher residual, which, of course is absurd but not as absurd as BMW's version of the same thing.

 

[Ninong]

Here's something else I should have mentioned. We can't compare BMW against MB by just looking at residuals. We have to also know what other incentives are offered on those same models by the two manufacturers. Obviously we need to know their money factors and I have noticed that MB often uses variable money factors. BMW usually uses the same money factor across the board. Then you would have to start adding up whatever else is available that might apply to you.

So it's not all that easy to compare one manufacturer against another unless you're willing to spend several hours devoted to every potential incentive (assuming you even know how to access that knowledge) applicable to you on that car at that moment in time. Not an easy task.

People have a tendency to compare the new "realistic" residuals on the 2017 models against the totally unrealistic residuals offered right now on the same 2016 models. It's not so much that the 2017 residuals are too low. It's that the 2016's residuals are too high.



P.S. -- Ever notice how BMW and Mercedes just happen to come out with the same APRs at the same time? Right now BMW is using 2.97% and Mercedes is using 2.99%. And then when they drop down to something like 1.9% APR or even 0.9% APR, it's funny how they both decide to do that, isn't it?

 

[Stevarino]

Thanks for these inputs. I have learned a lot about car buying from Bimmerfest during the last few weeks.

Originally, I was interested in leasing this 2017 model because it has a new engine design. I was thinking that a lease would make it easier to dispose of the vehicle if ithe new engine had "issues" like the famous high pressure fuel pump problems of the early N54 engines.