Residual change for the one, and other models...

[jose100fires]

FYI -
I was told yesterday by my sales person, Kourosh at Rasmussen BMW in Portland, OR, to come in and finalize my paper work for my ED 135 before the end of the month. He wanted me to take advantage of the current residual values that he said were apparently going to change, May 1. He stated that BMW informed them that auction prices for lease returned BMWs were hurting the bottom line for BMW and that a change would be coming for residual values (for all models).

I really appreciate Rasmussen for this. This is an example of why I believe that Rasmussen is a great dealer. I have bought several cars from them and have referred many friends and family to them, due in no small part to actions like this.

So, just some info for all of you out there. No hard numbers, but a change is on the way (apparently). Kourosh also told me that we could expect to see more frequent changes to residuals and money factors to address the changing market.

[blue-coupe]

What kind of residual rate did you get in your lease agreement? months/milage?

[Saddy]

my dealer said residuals will change for the better in may

[jeremyc74]

Originally Posted by Saddy

my dealer said residuals will change for the better in may

That's what I'm hearing as well. :iono:

[Space gray]

If you locked in your rates, there is no need to sign before you know what the rates will be next month. Are you sure the dealer is not interested in hitting some end of month target?

[drand]

There is not any way that residuals are going to increase. The used car market is in a total slump.

There is a chain on Bimmerfest about this, there was a press release from BMW that suggested that this is coming.

Here is a similar story on the financial situation with BMW.

http://www.marketwatch.com/news/stor...8296A000336%7D

I would lock in now. Also I wouldn't wait for '09 cars at all, I am pretty sure there is a price increase coming.

[jose100fires]

Not being in the car market business I can't personally speculate on why BMW may or may not change their rates. What my SA told me sounds possible given the current market issues, the recent news that BMW had to cut jobs, gas prices, and a general slow down in most key markets. I simply wanted to pass along to all of you what I heard from a trusted source.

To answer blue coupe's question - The money factor is .00255 + .0003 for ED. The residual is 60% for a 3 year lease and 73% for a 2 year lease, using, of course, the regular US MSRP and pricing, not ED pricing. This gave me, using a total of $2500 down (fees, security deposit, first and last payment, and the rest as cap cost (thanks to the president for this...)) payments of $521/ month for three years and $490/ month for two years. Keep in mind there is no sales tax in Oregon.

Jose

[BMW Dreamer]

HOW much change for 09. CAN'T order now, NO WAY. I think increasing the price on the 135i is a BMW mistake since people are already going for the 3 series because of the 1 series high prices.

[Pike]

I'd expect the 3 series to go up in price as well; the 335i in particular is generally considered to be "well worth the money" at the moment (in terms of base cost), which is an opportunity for BMW to raise the base price. Given the huge decline in the dollar against the euro, I just can't see them absorbing the cost for another year.

[Pike]

Originally Posted by jose100fires

To answer blue coupe's question - The money factor is .00255 + .0003 for ED. The residual is 60% for a 3 year lease and 73% for a 2 year lease, using, of course, the regular US MSRP and pricing, not ED pricing.

You'll need to specify whether this is a 10K/12K/15K annual mileage allowance. BMW adjusts the residual 2% upwards for 12K miles (versus 15K) and another 2% for 10K.