09-23-2018, 12:07 AM | #243 |
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50% residual makes for a tough lease, even with the $7K lease incentive.
I'm waiting for the October programs to roll out before I move on a CP for this very reason.
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09-23-2018, 09:56 AM | #244 |
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2018 Lease Deal
2018 M5 111,895 MSRP
Donington Grey $9000 discount $2000 loyalty $1354/mth Only $1500 Total Due at signing Includes 8.625% NY sales tax 61% residual and .00166 MF Should I wait to see October lease numbers and residual?
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09-23-2018, 10:57 AM | #245 |
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I don't think you need to. Unlikely the programs get any better on the 2018 cars. The big issue is the 2019 cars - BMW FS took the residuals down by 10% to make the 2018 leases look more attractive and move the remaining cars.
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09-23-2018, 12:50 PM | #246 |
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Is a 61% residual unusually high? Or is that pretty typical for BMW on a 3 yr/10k lease? Just curious if we can expect the 2019's to normalize and reach 61% as well.
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09-23-2018, 01:40 PM | #247 | |
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Not sure what to expect on the Competitions though. BMW FS won’t even lease the M2 Competitions (because they expect most people will track them), so I could see them holding residuals at the current level or at some smaller discount to the base model levels. Hopefully not but there is the potential. |
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09-23-2018, 01:45 PM | #248 | |
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09-23-2018, 01:46 PM | #249 |
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09-23-2018, 05:06 PM | #251 |
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09-23-2018, 07:45 PM | #252 | |
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09-23-2018, 09:46 PM | #253 | ||
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09-23-2018, 10:35 PM | #254 | |||
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09-24-2018, 12:17 PM | #255 | |
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09-24-2018, 01:29 PM | #256 | |
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What are you talking about ? This is not what BMW does to reduce inventory and they never have. They increase the dealer rebates and money back but they dont generally or pretty much ever increase residuals on last years cars to move them. That would destroy the market and hurt all the 2019's which are sitting on lots already. BTW , I have 2 friends that work at BMW NA and I know how things work. I have owned over 50BMWs in the last 20 years and it doesn't work like you wrote. Residual market value on M series cars are always lower than non M cars. Thats why its lower period ! Show me a 60+ percent residual on a 2018 or a 2019 M5 with 12K miles and I will buy you lunch at your favorite restaurant. Im in NJ as well. Your post is throwing people off big time. Thanks Craig |
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09-24-2018, 01:43 PM | #257 | |
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09-24-2018, 01:58 PM | #258 | ||
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Than to make that worse the 2019 M5 and M5 competition came out in August. So BMW NA Has only one option to make sure the remaining 2018 M5s move when next to a 2019 M5. Drop the residual on the 2019 model AND throw lots of cash at new buyers so that they have no choice but to take an 2018 when comparing the price with a 2019. They just very poorly timed the launch and should have called it a 2019 M5 in April and given it a full year cycle. Once the remaining 2018s will be gone the 2019 M5s residual will go back up to 60%. |
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09-24-2018, 03:25 PM | #259 |
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These residuals have been static since the 18's came out:
2018 F90 M5 36mo 15k 58% 12k 60% 10k 61%
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09-24-2018, 03:49 PM | #260 |
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I'm confused by some of the responses here. BMW dropped the 2019 residuals by 10% in order to move the remaining 2018s more rapidly. The only other alternative would be to lose money on the 2018s (thru incentives or price drops) to move them, because otherwise everyone is simply going to get the newer car if the price is the same. This seems like economics 101.
The 2018s are moving so I think the 2019 residuals should change soon. I'm hoping for better programs for the 2019 CP will drop in a few days actually.
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09-24-2018, 05:20 PM | #261 | |
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Second, in no post did I make a comparison to the regular 5 series. I pointed out that BMW lowered the residuals on the 2019 MY M5s to make those leases less attractive and help the excess 2018 inventory move. However, if you look at the current lease programs the regular 5 series and the M5 have the same residuals (see image below). Lastly, as others have responded above, the 2018MY M5 lease programs currently have residuals around 60%. Another member who I believe works for a dealership posts them regularly (again, see image below). So how about Summit House?
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09-24-2018, 05:28 PM | #262 | |
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I'm hoping as well, but not holding my breath. I've got a 2019 Competition that will be delivered to the dealership within the next week. I talked to the sales manager at my dealership and he's not optimistic the programs will improve in October. During our conversation he made the comment about the Competition models that "BMW knows what they've got".
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09-24-2018, 11:44 PM | #263 | |
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I owe you an apology big time. My fingers got way ahead of myself and actually I called some of my BMW high ups and they even said WTF , why are we giving 60+ percent on 2018's and 50 Percent on 2019's. So yes we would all assume that its to move the 2018's out and slow down the 2019's. The problem is if that were totally the case they wouldn't have put a 5000(w/o Loyalty and 7000( w/Loyatly) rebate on the 2019 and almost no rebate on the 2018's. The entire program is a mess and BMW knows this. I have a feeling your going to see this change really soon. Dropping residuals on 2019 cars to slow things down is abnormal and silly when people who are ordering cars and want to buy new 2019 M5's would get turned off to such low residuals. When you take BMW frequent flyers like yourself and they show you that the new car has a 10% residual hit you start to wonder what they are doing. We do know internally they are struggling with lease end cars especially M series cars not doing the auction numbers to validate the end of lease buy outs and BMW takes big hits with these cars. This program is a freaking mess and my buddy who is trying to buy an M5 as I write this is struggling to figure out what is the best way to do this. We got 13K plus off the price of a 2019 locally but it has the 50% res which kicks the lease up to like 1750-1800 for 36/12 with ZERO down sign and drive. Zero down sign and drive is really the best way to compare these leases so there are no pay down monies being used. It keeps it simple. We found some 2018's but those dealers know they gave better residuals but less discounts and rebates to give. Tough call here and he wants a car like this week. He is shooting for a White or San Marino with black and B&W and 20" and Executive. Struggling to find the right car and even with all my connections I am having difficulty finding the deal. This really should be like 1300-1400 I am thinking on a 115-120K car. Give or take. Its coming in way higher because of the horrid residual and the awful money factory as well. Anyhow , I owe you lunch for sure. Burger king has two for one whoppers on Wednesday. They are not bad if you get extra ketchup and pickles I find Sorry to bust your chops, I really jumped the gun and was shocked to see these numbers in front of me today. Anyhow , My buddy who is on this thread and I will continue to search out a car hopefully for this week. He's ready to jump in after our test drive on friday. My god is the car fun. Its not like we haven't had fast cars its just this is more than fast its like the culmination of what every car company is trying to do. I like it very much. The freaking seats are fantastic BTW Talk Soon Craig |
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09-24-2018, 11:47 PM | #264 | |
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PS.. There are a few competition cars up north. Roxbury who are my buddies and Morristown and Edison all have a competition in stock I am pretty sure. All the same owner. Not sure who you deal with but I have strong connections in Roxbury. My friend who is buying one doesn't want the comp with the freaking roads down here in the Red bank area. I think our fillings will fall out with a comp car with 20" rims |
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