[doug_999]

Originally Posted by clemsonkev

thanks, but I don't keep up on such things. Is this GOOD or BAD?

I assume bad, and will likely shoot for the straight 2.9% for 72 months from BMW FS.

The M3 is closer to 60% I believe (if not 60%). So yes, it is horrific.

And...
while it does appear the 2.9% is avail on the M2 (per BMWUSA) last month it was not - meaning you were at 5% to get financing on the M2.

[clemsonkev]

Originally Posted by doug_999

The M3 is closer to 60% I believe (if not 60%). So yes, it is horrific.

And...
while it does appear the 2.9% is avail on the M2 (per BMWUSA) last month it was not - meaning you were at 5% to get financing on the M2.

thanks.
I also see my credit union has 2.72% for 75 months ...or... 3.80% right now for 84 months. damn.

http://www.htfcu.org/rate_fee_schedule.htm#Loan_Rates

[bradleyland]

Originally Posted by clemsonkev

thanks, but I don't keep up on such things. Is this GOOD or BAD?

I assume bad, and will likely shoot for the straight 2.9% for 72 months from BMW FS.

Absolutely terrible. To put that in perspective, back when I leased my 135i, my residual was 63%. The residual on our X3 is over 60% as well. I won't lease a car with <60% residual. It doesn't make sense. I find it extremely hard to believe you couldn't sell an M2 for greater than 48% of the MSRP in 3 years.

[Aloha Joe]

Originally Posted by doug_999

48% for 15,000 miles and 36 months…add 2% for 12k and 3% for 15k.

Doug, I'm a little confused with your post. Is 48% for 5k or 15k miles per year? Cause the 2% for 12k and 3% for 15k throws me off. Also would you know what the money factor is?

[Aloha Joe]

Originally Posted by bradleyland

Absolutely terrible. To put that in perspective, back when I leased my 135i, my residual was 63%. The residual on our X3 is over 60% as well. I won't lease a car with <60% residual. It doesn't make sense. I find it extremely hard to believe you couldn't sell an M2 for greater than 48% of the MSRP in 3 years.

Yes, hard to imagine only a 48% residual, unless BMW Financial has insider info that the next M2 is coming with a better sounding S55 engine

[No Boost]

Originally Posted by Aloha Joe

Yes, hard to imagine only a 48% residual, unless BMW Financial has insider info that the next M2 is coming with a better sounding S55 engine

BMW doesn't need to offer decent residuals on the M2. They sell and will continue to sell like hotcakes until end of production.

[MRCUR]

Originally Posted by Stage IV

BMW doesn't need to offer decent residuals on the M2. They sell and will continue to sell like hotcakes until end of production.

I'm not sure that's a totally fair argument for the horrendous M2 residuals.

The M3 has really great residuals yet is supply constrained (allocation constrained) all the time. BMW doesn't necessarily always equate supply constrains to lowering residuals.

[doug_999]

Originally Posted by Aloha Joe

Doug, I'm a little confused with your post. Is 48% for 5k or 15k miles per year? Cause the 2% for 12k and 3% for 15k throws me off. Also would you know what the money factor is?

I will ask about the money factor.

48% for 15,000 miles per year
50% for 12,000 miles per year
51% for 10,000 miles per year

Hope that helps.

[No Boost]

Originally Posted by MRCUR

I'm not sure that's a totally fair argument for the horrendous M2 residuals.

The M3 has really great residuals yet is supply constrained (allocation constrained) all the time. BMW doesn't necessarily always equate supply constrains to lowering residuals.

I'm merely regurgitating what my CA told me. Since it's sold out, there's no reason to incentivize a lease for it. A low residual M2 is a counter to an inflated one on a 3 or 5 series.

[bradleyland]

Originally Posted by Stage IV

I'm merely regurgitating what my CA told me. Since it's sold out, there's no reason to incentivize a lease for it. A low residual M2 is a counter to an inflated one on a 3 or 5 series.

I hate to stereotype, but CAs are known to talk out their ass. They aren't given any info on why pricing is the way it is. Basically, your CA gave you their opinion, which is as good as anyone's opinion.

It's also not a very sound opinion. Whether or not a car is "sold out" depends on supply and demand. If demand were really that strong, BMW could simply charge more for the car. Why play tricks with the lease financing specifically?

I think the explanation is far more ordinary. Lease residuals new models are frequently less than favorable. Also, the small car market (in the US) is in a deleterious slump. Financing organizations (like BMW Finance) base their residuals on ratings agency (like ALG) estimates, and ratings agencies aren't going to issue strong ratings on a premium-priced, small car being sold in a soft small-car market. Hence the lousy lease residuals on the M2.

There's no elaborate strategy at play; it's simply the outcome of standard market dynamics and financing workflows. Broad market financial analysis tends to fail in edge cases. The M2 is a highly desirable enthusiast car, so I still believe the total cost of ownership proposition for the M2 is good, provided the buyer is willing to put in the time and effort sell the car shrewdly at the end of the ownership term.

[Aloha Joe]

Originally Posted by doug_999

I will ask about the money factor.

48% for 15,000 miles per year
50% for 12,000 miles per year
51% for 10,000 miles per year

Hope that helps.

Mahalo

[DS_BMW]

What are January residuals?

[rosenbergendo]

Rates the same for Jan? Residuals?

[doug_999]

January...
M2
46% for 15,000 miles
48% for 12,000 miles
49% for 10,000 miles

base money factor is .00134 (your dealer will mark this up)

Finance rate is 2.91%

For comparison sake and just to piss everyone off.

All other 2-series (230i through 240xi vert) are at
55% for 15,000 miles
57% for 12,000 miles
58% for 10,000 miles

[MRCUR]

Originally Posted by doug_999

base money factor is .00134 (your dealer will mark this up)

No reason to agree to a marked up MF.

[doug_999]

Originally Posted by MRCUR

No reason to agree to a marked up MF.

Agree, but each and every dealer will try to put something in there. It is an accepted practice because most people don't know or understand the base money factor.

[gmzanatta]

Originally Posted by doug_999

January...
M2
46% for 15,000 miles
48% for 12,000 miles
49% for 10,000 miles

base money factor is .00134 (your dealer will mark this up)

Finance rate is 2.91%

For comparison sake and just to piss everyone off.

All other 2-series (230i through 240xi vert) are at
55% for 15,000 miles
57% for 12,000 miles
58% for 10,000 miles

Damn, those are f'ng brutal.

[bradleyland]

Originally Posted by doug_999

Agree, but each and every dealer will try to put something in there. It is an accepted practice because most people don't know or understand the base money factor.

FWIW, my dealer has never even attempted to mark-up our money factor. Neither did my brother-in-law's dealer, and he's in a completely different state.

It's definitely something you have to keep your eye on, but as a practice, there are dealers who do it, and there are dealers who don't. It's definitely not "each and every dealer".

[DS_BMW]

Originally Posted by gmzanatta

Damn, those are f'ng brutal.

Just like trying to lease an Audi.

[phoenixbmwlife]

Originally Posted by doug_999

January...
M2
46% for 15,000 miles
48% for 12,000 miles
49% for 10,000 miles

base money factor is .00134 (your dealer will mark this up)

Finance rate is 2.91%

For comparison sake and just to piss everyone off.

All other 2-series (230i through 240xi vert) are at
55% for 15,000 miles
57% for 12,000 miles
58% for 10,000 miles

At these ridiculous residuals you have to purchase not lease, because a purchase payment is roughly the same payment as a lease. There is no way that in 3 years with 30k miles the M2's worth will be as low as $27,000 - $29,000. If you can buy one for that price it probably has frame damage or has 100k miles lol

[M3 Adjuster]

Originally Posted by PhoenixWolf

At these ridiculous residuals you have to purchase not lease, because a purchase payment is roughly the same payment as a lease. There is no way that in 3 years with 30k miles the M2's worth will be as low as $27,000 - $29,000. If you can buy one for that price it probably has frame damage or has 100k miles lol

I love following up on this thread and watching for people think these jacked up lease rates are actually going to change. : BUY while finance rates are low !!!

[dmk08]

Anyone buying M2s on BMW Select? What do those rates look like?