2023 BMW Service Loaner / Demo Lease

peroz18

I have leased BMW service loaners in the past and it used to be a great deal for me. The programs at the time knocked off a certain $/mi from the residual as if the car was brand new as long as the car had less than 5,000 miles. After that everything used to be as if the car was new.

My question is: What is the current BMW program in leasing service loaners? It appears that it has changed (I am seeing a lot of service loaners listed with ~5500 miles) but not sure to what extent.

Thanks for the responses in advance.

Michaell

peroz18 said:

I have leased BMW service loaners in the past and it used to be a great deal for me. The programs at the time knocked off a certain $/mi from the residual as if the car was brand new as long as the car had less than 5,000 miles. After that everything used to be as if the car was new.

My question is: What is the current BMW program in leasing service loaners? It appears that it has changed (I am seeing a lot of service loaners listed with ~5500 miles) but not sure to what extent.

Thanks for the responses in advance.

I don't think the program has changed so much as the market.

With restricted inventories, dealers are not discounting the cars as much. I'm not certain if BMW still has a per mile deduction to the residual value, based on the odometer reading.

peroz18

Michaell said:

peroz18 said:

I have leased BMW service loaners in the past and it used to be a great deal for me. The programs at the time knocked off a certain $/mi from the residual as if the car was brand new as long as the car had less than 5,000 miles. After that everything used to be as if the car was new.

My question is: What is the current BMW program in leasing service loaners? It appears that it has changed (I am seeing a lot of service loaners listed with ~5500 miles) but not sure to what extent.

Thanks for the responses in advance.

I don't think the program has changed so much as the market.

With restricted inventories, dealers are not discounting the cars as much. I'm not certain if BMW still has a per mile deduction to the residual value, based on the odometer reading.

Thanks for the response... Yes, the market for prices are much different today!!! I checked my lease from 2017... at the time I got 18% off MSRP before incentives.... impossible in today's market. That time, the residual calculation was a little complicated, but bear with me.

• If loaner had less than 5,000 miles, first 500 miles was free, but any mileage over 500 would be deducted from the residual at $0.30/mi.
  
• If loaner had more than 5,000 but less than 7,500, the residual percentage was reduced by 4%, and any miles over 5,000 would be deducted from residual at $0.30/mi
  
• If loaner had more than 7,500 miles but less than 10,000, residual percentage was reduced by 6% and any mileage over 7,500 miles would be deducted from residual at $0.30/mi
  
• I am not sure about this but over 10,000 miles were not eligible for new car lease terms
  

The programs may as well be the same, but I suspect a change because there are a lot of listings that has more than 5,000 miles but less than 5,500. Not sure why, so I am looking for information from someone who may know for sure.

Michaell

peroz18 said:

Michaell said:

peroz18 said:

I have leased BMW service loaners in the past and it used to be a great deal for me. The programs at the time knocked off a certain $/mi from the residual as if the car was brand new as long as the car had less than 5,000 miles. After that everything used to be as if the car was new.

My question is: What is the current BMW program in leasing service loaners? It appears that it has changed (I am seeing a lot of service loaners listed with ~5500 miles) but not sure to what extent.

Thanks for the responses in advance.

I don't think the program has changed so much as the market.

With restricted inventories, dealers are not discounting the cars as much. I'm not certain if BMW still has a per mile deduction to the residual value, based on the odometer reading.

Thanks for the response... Yes, the market for prices are much different today!!! I checked my lease from 2017... at the time I got 18% off MSRP before incentives.... impossible in today's market. That time, the residual calculation was a little complicated, but bear with me.

• If loaner had less than 5,000 miles, first 500 miles was free, but any mileage over 500 would be deducted from the residual at $0.30/mi.
  
• If loaner had more than 5,000 but less than 7,500, the residual percentage was reduced by 4%, and any miles over 5,000 would be deducted from residual at $0.30/mi
  
• If loaner had more than 7,500 miles but less than 10,000, residual percentage was reduced by 6% and any mileage over 7,500 miles would be deducted from residual at $0.30/mi
  
• I am not sure about this but over 10,000 miles were not eligible for new car lease terms
  

The programs may as well be the same, but I suspect a change because there are a lot of listings that has more than 5,000 miles but less than 5,500. Not sure why, so I am looking for information from someone who may know for sure.

These are my notes, but they may be a few years old, and the programs updated:

0-4999 - .25/mile
5000-7499 - 6% deduct and .25/mile
7500-9999 - 9% deduct and .25/mile or 7500-9999
no incentives if above 5000 miles

peroz18

Michaell said:

peroz18 said:

Michaell said:

peroz18 said:

I have leased BMW service loaners in the past and it used to be a great deal for me. The programs at the time knocked off a certain $/mi from the residual as if the car was brand new as long as the car had less than 5,000 miles. After that everything used to be as if the car was new.

My question is: What is the current BMW program in leasing service loaners? It appears that it has changed (I am seeing a lot of service loaners listed with ~5500 miles) but not sure to what extent.

Thanks for the responses in advance.

I don't think the program has changed so much as the market.

With restricted inventories, dealers are not discounting the cars as much. I'm not certain if BMW still has a per mile deduction to the residual value, based on the odometer reading.

Thanks for the response... Yes, the market for prices are much different today!!! I checked my lease from 2017... at the time I got 18% off MSRP before incentives.... impossible in today's market. That time, the residual calculation was a little complicated, but bear with me.

• If loaner had less than 5,000 miles, first 500 miles was free, but any mileage over 500 would be deducted from the residual at $0.30/mi.
  
• If loaner had more than 5,000 but less than 7,500, the residual percentage was reduced by 4%, and any miles over 5,000 would be deducted from residual at $0.30/mi
  
• If loaner had more than 7,500 miles but less than 10,000, residual percentage was reduced by 6% and any mileage over 7,500 miles would be deducted from residual at $0.30/mi
  
• I am not sure about this but over 10,000 miles were not eligible for new car lease terms
  

The programs may as well be the same, but I suspect a change because there are a lot of listings that has more than 5,000 miles but less than 5,500. Not sure why, so I am looking for information from someone who may know for sure.

These are my notes, but they may be a few years old, and the programs updated:

0-4999 - .25/mile
5000-7499 - 6% deduct and .25/mile
7500-9999 - 9% deduct and .25/mile or 7500-9999
no incentives if above 5000 miles

Thank you! I forgot about the detail that cars were $0.25/mi (mine was an X6). It seems like they increased the deductions over 5000 miles. Also, I wasn't aware of disappearing incentives after 5000 miles.

Michaell

peroz18 said:

Michaell said:

peroz18 said:

Michaell said:

peroz18 said:

I have leased BMW service loaners in the past and it used to be a great deal for me. The programs at the time knocked off a certain $/mi from the residual as if the car was brand new as long as the car had less than 5,000 miles. After that everything used to be as if the car was new.

My question is: What is the current BMW program in leasing service loaners? It appears that it has changed (I am seeing a lot of service loaners listed with ~5500 miles) but not sure to what extent.

Thanks for the responses in advance.

I don't think the program has changed so much as the market.

With restricted inventories, dealers are not discounting the cars as much. I'm not certain if BMW still has a per mile deduction to the residual value, based on the odometer reading.

Thanks for the response... Yes, the market for prices are much different today!!! I checked my lease from 2017... at the time I got 18% off MSRP before incentives.... impossible in today's market. That time, the residual calculation was a little complicated, but bear with me.

• If loaner had less than 5,000 miles, first 500 miles was free, but any mileage over 500 would be deducted from the residual at $0.30/mi.
  
• If loaner had more than 5,000 but less than 7,500, the residual percentage was reduced by 4%, and any miles over 5,000 would be deducted from residual at $0.30/mi
  
• If loaner had more than 7,500 miles but less than 10,000, residual percentage was reduced by 6% and any mileage over 7,500 miles would be deducted from residual at $0.30/mi
  
• I am not sure about this but over 10,000 miles were not eligible for new car lease terms
  

The programs may as well be the same, but I suspect a change because there are a lot of listings that has more than 5,000 miles but less than 5,500. Not sure why, so I am looking for information from someone who may know for sure.

These are my notes, but they may be a few years old, and the programs updated:

0-4999 - .25/mile
5000-7499 - 6% deduct and .25/mile
7500-9999 - 9% deduct and .25/mile or 7500-9999
no incentives if above 5000 miles

Thank you! I forgot about the detail that cars were $0.25/mi (mine was an X6). It seems like they increased the deductions over 5000 miles. Also, I wasn't aware of disappearing incentives after 5000 miles.

That was when incentives were more common...