Why the 6% difference between residuals of new 2015 and 2016 328's?

dukehoops02

Hi, folks:

Lease newbie here. Thought I'd take advantage of lower prices for remaining new 2015 328s in Northern California. Heard that 2016's residuals are set at 61% (for 12k/yr lease) but was told that it is 55% for new 2015s - thus erasing seemingly significant price difference between 2015s and 2016s. Could someone please comment on whether my info on residuals is accurate. If so, why the 6% difference? Are residuals for new 2015s no longer subsidized by BMW?

Thank you,

-nikita

kyfdx

dukehoops02 said:

Hi, folks:

Lease newbie here. Thought I'd take advantage of lower prices for remaining new 2015 328s in Northern California. Heard that 2016's residuals are set at 61% (for 12k/yr lease) but was told that it is 55% for new 2015s - thus erasing seemingly significant price difference between 2015s and 2016s. Could someone please comment on whether my info on residuals is accurate. If so, why the 6% difference? Are residuals for new 2015s no longer subsidized by BMW?

Thank you,

-nikita

You have a lot of incorrect information.

36/12

2015: .00135 MF and 57% residual. $3000 buildout cash

2016: .00135 MF and 60% residual. $1500 lease credit.

So, the difference is 3%. Given that three years from now, one car will be 3 years old, and the other 4 years old, it seems generously tilted to the 2015. Especially with $1500 more in incentives.

dukehoops02

Thank you, @kyfdx. A couple of follow up questions, if you don't mind:

• is actual residual value (and MF) up to individual dealer at the end of day (i.e. negotiable) or is it dictated by BMW - and thus the negotiable part is just the sales price?
  
• would residual value drop by ~ 2% moving up from 12k to 15k miles/yr?
  
• how much can I lower MF by putting down max MSDs (which I think equal 7 monthly payments)? I saw target figure of 0.001 somewhere....
  

Thanks again,

-nikita

Michaell

dukehoops02 said:

Thank you, @kyfdx. A couple of follow up questions, if you don't mind:

• is actual residual value (and MF) up to individual dealer at the end of day (i.e. negotiable) or is it dictated by BMW - and thus the negotiable part is just the sales price?
  
• would residual value drop by ~ 2% moving up from 12k to 15k miles/yr?
  
• how much can I lower MF by putting down max MSDs (which I think equal 7 monthly payments)? I saw target figure of 0.001 somewhere....
  

Thanks again,

-nikita

1. Residual is set by the bank and is not negotiable
2. Yes, subtract 2% from the residual to go from 12K to 15K per year
3. Each MSD lowers the MF by .00007 - max 7 MSDs would result in a total reduction of .00049

newjeep2015

Are the current residuals for a 2015 328i, 24/15 available?

kyfdx

newjeep2015 said:

Are the current residuals for a 2015 328i, 24/15 available?

.00135 MF and 61% residual. $3000 buildout cash

newjeep2015

Thanks, is the $3,000 buildout cash simply and incentive deducted off the negotiated purchase price? Does it also apply to executive demos?

kyfdx

newjeep2015 said:

Thanks, is the $3,000 buildout cash simply and incentive deducted off the negotiated purchase price? Does it also apply to executive demos?

It's an incentive that will probably be already included in any deal they agree to.

Service loaners and demos, probably yes. Executive demos bought at BMW auction? Maybe not.

newjeep2015

Thanks, is the 36/15 residual for a 328i still 55% through tomorrow?

Michaell

newjeep2015 said:

Thanks, is the 36/15 residual for a 328i still 55% through tomorrow?

Yes.