07-07-2018, 09:19 PM | #1 |
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Did BMW just destroy M5 Leasing???
Is it true that BMW just lowered residuals by 10 points and jacked up the money factor??? I was going to lease but now that sounds crazy, so I will likely buy. That being said, from years on this forum it looks like the vast majority of people lease, so I think demand will take a huge hit. I think there will be some weakness in the M5 market (like there was with the F10) if this is all true.
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07-08-2018, 07:27 AM | #2 | |
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07-08-2018, 05:51 PM | #3 |
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The actual value of cars coming off lease for M cars and AMG cars is notorious for the depreciation. Perhaps BMW and Mercedes are now moving to push people to buy rather than lease so that the buyer can bear the full risk of the depreciation and not divide it with the manufacture?
Last edited by Stealth7; 07-08-2018 at 07:41 PM.. |
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07-08-2018, 07:34 PM | #4 |
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Doesn't change the fact that the market has taken the good rates into account. Cheap leasing was why it made the M5 Comp a no brainer over the E63s. I still am partial to the M5, but it no longer is a no brainer. I think the lease rates have been inflating M5 and M3 sales for years. I would think there could be a big demand correction after this.
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07-08-2018, 09:48 PM | #5 |
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We'll see what they get to later this fall, I just don't think people are into leasing a $1900/month M5, but that's just me, especially considering equivalently equipped F10's could be had for around ~$1200. I realize time moves on but it's a much larger jump than most previous M5 owners were expecting. Sweet spot likely going to be a few months before the LCI G30/F90 sometime in early 2020.
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07-09-2018, 03:11 PM | #8 |
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From https://g30.bimmerpost.com/forums/sh...&postcount=432
2018 M5s: 58%, 60%, 61% for 15k, 12k, and 10k 2019 M5s: 48%, 50%, 51% |
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07-09-2018, 03:31 PM | #9 |
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07-09-2018, 04:33 PM | #10 |
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It will be interesting to see how these lower residuals affect sales of the 19's.
I've got a 19' M5 Comp on order so I get garbage residual and no incentives .... I'm hoping this changes by the time I take delivery.
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CURRENT: 22' INDIVIDUAL M5| CHALK | TARTUFO | CCB | MPE | H&R | IND
GONE: 19' M5C| SINGAPORE GREY| ARAGON|VELOS VLS-06|H&R|iPE|IND|XPEL|CF|RADENSO GONE: 15' F10 M5|BSM|BLACK|VELOS VSS-S2|KW|AKRA|IND|CF |ESCORT 360|VELOS PIGGY GONE: 13' F10 M5|SG|BLACK|AKRA|KW|IND LONG GONE: 09' E60 M5|02' E39 M5 |
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07-09-2018, 04:48 PM | #11 |
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Looks like lease payments will jump $300-500 per month if this stays in place when the 19's start to roll in...
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07-12-2018, 12:15 PM | #12 |
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What does 5k lease credit mean? What does 2k loyalty mean?
Does 5k lease credit mean I need to have a current lease with BMWFS? Does 2k loyalty credit mean I need to have a BMW in my household? Thanks! |
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07-12-2018, 09:26 PM | #13 | |
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Luckily I only took delivery in May so I will have time to see if a correction occurs. |
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07-12-2018, 10:28 PM | #14 |
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Chose the M5 over the E63 after test driving both. E63s upfront raw power was great but the ride was too harsh. Adding the fact that M5 lease rates were much much better made it a no brainer. Now both cars will be in a similar price range when it comes to leasing and leave it totally up to buyer preference instead of factoring pricing....unless BMW continues giving those attractive rates.
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07-16-2018, 11:32 PM | #15 |
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Holy crikeees!!! Higher residual was the main reason to go with BMW vs MB vs Audi. Any chance that residuals will creep higher by yr end?
I turn in my F80 M3 end of March and was looking to grab an allocation by yrs end |
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07-17-2018, 12:46 PM | #16 |
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Residuals by there nature do not go up with time, but down.
Money factors can change either way and/or be manipulated by the dealer (within limits), but residuals reflect the effect of time and M cars do have a history of hefty depreciation in a market which already quickly devalues luxo sedans.
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08-18-2018, 06:23 AM | #18 |
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I hope you are right.
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08-19-2018, 08:54 PM | #19 |
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08-20-2018, 12:16 AM | #21 |
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Can't wait to see it
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08-20-2018, 09:29 AM | #22 |
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Is it reasonable to expect the residuals to improve on the M5 in the coming months? Is this standard operating procedure for BMW to have crappy residuals at the onset of new model years and/or new model introductions and then improve the residuals a few months later??
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