[JPizzz]

Hi all,

I’m not planning to lease, but have read that the residual on the m2 is horrible in that it’s extremely low. On some other threads members have speculated that this may be a sign that BMW expects the value to drop due to a release of an m2 CS. I never leased, but obviously have concerns of future value. Could someone explain to me if this logic makes sense?

[DrAnzo2.0]

The 1M also had a low lease residual... and look how that turned out. I think BMWFS does not have any incentive to make lease deals attractive for the M2, since they don’t have any issues moving units as it is.

I don’t think the regular M2 will be a collectible car like the 1M, but I do think it will hold its value better than the other current M cars. My logic is the car is such a good value at full MSRP, so on the used market it’s even a better value proposition.

[gmzanatta]

I don't think it has much to do with the CS, but more with how easily they could sell them. The car is in its third model year and yet very few (if any) dealers have them readily available in the showroom like its bigger siblings.

Since there's no problem selling them, no incentive to move units fast with good lease deals.

Plus they know their crowd and a lot of M2 buyers are enthusiasts and will likely keep the car.

[Wharf Rat]

I agree with what's been said. BMW's dealership network is working on allocations for the M2, so they have no trouble selling every one they get. That's why you don't see the sales spiffs that exist on nearly every other model in the lineup. It's also why they lead with a 3.31% finance rate & a residual around half of MSRP. That's my 2¢.

[2045]

M2 is one of the best value car in the entire BMW line-up now simply because it comes pretty much loaded with all the decent options already unlike others. As you can see if you check all boxes on a M240i the msrp will be really close to M2. The poor residual has nothing to do with M2CS. M2 residual was bad from the beginning. BMW wants buyers to own the car. I leased mine but got out early & couldn't be happier.

[pruettfan]

I follow the industry closely and for the last couple of years the factories and their financing partners have had a ton of discussion about leasing and residual values. As stated above they are willing to take residual risk for cars they have to work hard to move and have clear competitors in the market but in the case of the M2 they have no such motivation. The residuals are more of an indication of the risk tolerance of the financial arm of the factory rather than an indication of what the true predicted value of the car is going to be. This is even more of a factor with new models that don't have a long track record, it is pretty easy for Honda to safely predict a residual on an Accord so those residuals will often be pretty spot on and they don't have to take any real risk in setting them but with all entirely new models we see financial arms covering themselves for several model years.