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BMW M5 F90 (2018+) General Forums F90 M5 Pricing, Ordering, Tracking, and European Delivery    Did BMW just destroy M5 Leasing???

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      07-07-2018, 09:19 PM   #1
STi2M3
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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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Quote:
Originally Posted by STi2M3 View Post
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.
Are the residuals and money factors lowered for the 2018's as well? Or just the 2019's? Curious if this is just a move to flush out the 2018 inventory. I know my dealer has 3 2018's while I can already order a 2019.
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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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      07-08-2018, 10:24 PM   #6
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Thats putting me right into Turbo S territory.... which... as much as I love the F90... is not Turbo S.
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      07-09-2018, 12:01 AM   #7
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Wait, what are the new numbers?
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      07-09-2018, 03:11 PM   #8
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Quote:
Originally Posted by bumpineclipsegsx View Post
Wait, what are the new numbers?
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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Quote:
Originally Posted by slavearm View Post
Thats putting me right into Turbo S territory.... which... as much as I love the F90... is not Turbo S.
Even with the lower residuals and higher MF turbo s is still 1/3rd more a month if not more.
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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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      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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Quote:
Originally Posted by STi2M3 View Post
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.
Same here. I chose the m5 because I did enjoy the car but this is my first bmw let alone m car. I have been a loyal MB customer but the MF on the AMGs combined with the low residual made it a simple decision.

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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Quote:
Originally Posted by salraf View Post
Any chance that residuals will creep higher by yr end?
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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      07-17-2018, 01:30 PM   #17
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I think 2019 residuals are starting out low to move the remaining 2018s. I bet residuals move up by the time 2019 cars start arriving.
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      08-18-2018, 06:23 AM   #18
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Quote:
Originally Posted by emmfiv3 View Post
I think 2019 residuals are starting out low to move the remaining 2018s. I bet residuals move up by the time 2019 cars start arriving.
I hope you are right.
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      08-19-2018, 08:54 PM   #19
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Quote:
Originally Posted by Quickburn7 View Post
Even with the lower residuals and higher MF turbo s is still 1/3rd more a month if not more.
True... but its getting close enough that I wouldn't care =).
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      08-19-2018, 10:38 PM   #20
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I got tired of waiting on 19 residuals and pulled the trigger on an 18. Hope to pick it up tomorrow!
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      08-20-2018, 12:16 AM   #21
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Quote:
Originally Posted by Hunter399 View Post
I got tired of waiting on 19 residuals and pulled the trigger on an 18. Hope to pick it up tomorrow!
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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