View Single Post
      04-13-2016, 01:06 AM   #3
pruettfan
Brigadier General
1622
Rep
3,402
Posts

Drives: 2017 M2, LBB, DCT, Exec
Join Date: Jul 2009
Location: Chandler, AZ

iTrader: (0)

I totally agree with the OP. The issue of low residual values is not exclusive to BMW's new models but is consistent with pretty much all new models regardless of manufacture. No manufacture wants to be caught off guard and be left holding the bag in 3 years. Also leasing is a good tool for them to move inventory, if the inventory is already moving why would they want to take the risk ? I follow the industry closely and there have been several articles written about manufactures becoming nervous that they are leasing too many cars and they worry that when those cars are returned they will flood the market and lower the actual values leaving the manufacture with a bunch of off lease cars sitting on their lots that they will be forced to discount or have to provide incentives to move them. Most articles predict manufactures beginning to lower residual values to protect themselves so I won't be surprised to see leasing become a little less attractive for even well established cars.

I have decided to go with the BMW Select, I am cool with taking the depreciation risk and like the option of a lower payment for a couple of years. My car will get driven 8k per year so I think I will be pretty safe.
Appreciate 1