[justinnum1]

Looks like there is a new way BMW is going to do residual values on cars. i have seen this for the 2018 430. if you want msport or luxury packages the residual will be lower.

example.

base 430- 60%
430 premium-59%
430 premeium and msport -58%

similar to audi.

Bmw was getting screwed on turn ins with 328 msrp 50+. this a way for them to make more money, and try and push folks to larger engine. not sure if this will be for 5 series too.

Folks aint gonna be happy.

[Animal Farm]

Originally Posted by justinnum1

Looks like there is a new way BMW is going to do residual values on cars. i have seen this for the 2018 430. if you want msport or luxury packages the residual will be lower.

example.

base 430- 60%
430 premium-59%
430 premeium and msport -58%

similar to audi.

Bmw was getting screwed on turn ins with 328 msrp 50+. this a way for them to make more money, and try and push folks to larger engine. not sure if this will be for 5 series too.

Folks aint gonna be happy.

First it was maintenance... now this. Keep it up BWM, all you're doing is driving away customers.

[jjrandorin]

Originally Posted by justinnum1

Looks like there is a new way BMW is going to do residual values on cars. i have seen this for the 2018 430. if you want msport or luxury packages the residual will be lower.

example.

base 430- 60%
430 premium-59%
430 premeium and msport -58%

similar to audi.

Bmw was getting screwed on turn ins with 328 msrp 50+. this a way for them to make more money, and try and push folks to larger engine. not sure if this will be for 5 series too.

Folks aint gonna be happy.

You are speculating on the reason, but presenting it as fact. We dont KNOW it is a way for them to make more money... I suspect it is actually a way for them to lose less money which is not quite the same thing.

Also, your thread title implies that this is a "new way for them to do residuals" but right NOW, all we know is that it applies to the new 430. We dont know if it applies to the 440.

For what its worth, this is not much different than the Maximum Residualized MSRP which ALREADY exists on the 330. If someone loads up a 330 more than the Maximum Residualized MSRP (currently 49,400), that person will pay 100 percent of the options above that amount.

This has been in effect since the latter part of last year, but people dont tend to understand leasing as much so no one made a huge fuss over it.

Its the same thing as lowering the RV on highly optioned cars, which other german manufactures already do. Audi does this already, with prestige cars having a lower RV.

Porsche does this already, with a Maximum residualized MSRP (which means what I described above).

BMW is just following suit, because they dont (speculation inc) WANT a 55k 330 or 430 as a lease, because options dont increase the value of a car on lease turn in, just the desirability. They take a HUGE bath on most options on turn in.

There is currently little reason for someone to go with a 340 over a 330 or a 440 over a 430. The '30s are fast "enough" and can be optioned to look exactly like the higher engined model, however the engine is one thing that DOES keep its RV while the rest of the options basically devalue to zero.

If people say " I am leaving BMW over this" they are obviously free to do so, but if they are going to merc, audi or porsche, they are going to be seeing the exact same thing ALREADY in place.

(More speculation inc)...

I feel that BMW is trying to get people to get the higher trim models (340 / 440), IF they are trying to "load up" on the options (on a lease). They COULD just make some options not available on the lower trim cars, but that effects purchasers as well. Now, they are just saying, "if you want to load up these options, either purchase instead of lease, or buy them and dont expect us to take as much of a bath on lease return as we were. Share these loses with us please".

[xlover]

Originally Posted by jjrandorin

You are speculating on the reason, but presenting it as fact. We dont KNOW it is a way for them to make more money... I suspect it is actually a way for them to lose less money which is not quite the same thing.

Also, your thread title implies that this is a "new way for them to do residuals" but right NOW, all we know is that it applies to the new 430. We dont know if it applies to the 440.

For what its worth, this is not much different than the Maximum Residualized MSRP which ALREADY exists on the 330. If someone loads up a 330 more than the Maximum Residualized MSRP (currently 49,400), that person will pay 100 percent of the options above that amount.

This has been in effect since the latter part of last year, but people dont tend to understand leasing as much so no one made a huge fuss over it.

Its the same thing as lowering the RV on highly optioned cars, which other german manufactures already do. Audi does this already, with prestige cars having a lower RV.

Porsche does this already, with a Maximum residualized MSRP (which means what I described above).

BMW is just following suit, because they dont (speculation inc) WANT a 55k 330 or 430 as a lease, because options dont increase the value of a car on lease turn in, just the desirability. They take a HUGE bath on most options on turn in.

There is currently little reason for someone to go with a 340 over a 330 or a 440 over a 430. The '30s are fast "enough" and can be optioned to look exactly like the higher engined model, however the engine is one thing that DOES keep its RV while the rest of the options basically devalue to zero.

If people say " I am leaving BMW over this" they are obviously free to do so, but if they are going to merc, audi or porsche, they are going to be seeing the exact same thing ALREADY in place.

(More speculation inc)...

I feel that BMW is trying to get people to get the higher trim models (340 / 440), IF they are trying to "load up" on the options (on a lease). They COULD just make some options not available on the lower trim cars, but that effects purchasers as well. Now, they are just saying, "if you want to load up these options, either purchase instead of lease, or buy them and dont expect us to take as much of a bath on lease return as we were. Share these loses with us please".

Where can one find the maximum residualized msrp. Haven't seen that number on this site before. I am planning a loaded up 440 in spring/summer.

[jjrandorin]

Originally Posted by xlover

Where can one find the maximum residualized msrp. Haven't seen that number on this site before. I am planning a loaded up 440 in spring/summer.

Two slightly different things...

BMW 330s have a Maximum residualized MSRP of 49,400 for a non xdrive model, and 51,400 for the x drive model. I dont know where this information is on bimmerpost, as I just started becoming more active here, but it DOES exist on the "other" big BMW blog.

Not sure on what the rules are here for linking or mentioning other blogs here so trying to make sure I fit into the rules here. If its ok to link to it here, mods let me know.


Anyway, 330s have the Maximum Residualized MSRP which means as I mentioned that anything over those amounts on a lease is paid for 100 percent by the customer over the term of the lease, instead of residualized to the residual percentage.

BMW 430s in model year 2018 will have a reduction in the residual percentage for certain models. The 2018 models have different option packages than we have in 2016s and 2017s.

Basically, the "base model" will use the "base residual value from the lease offers as currently stated.

If you get a "luxury" or M sport model, it will be 1 point lower on the residual percentage (thereby making that model a little more expensive).

If you get an "executive Luxury" or "executive M sport" model it will be 2 points lower than the residual (making that even a bit more expensive).

Basically an M sport model with the "executive package" on it will be 2 residual points lower.

Again, I dont know where on bimmerpost this information is, but it is on the "other" blog, with quite a bit of detail from one of the site mods so is extremely credible.

Why I am explaining all this is two fold.... One I tend to over explain but usually someone has the questions so /shrug....

Two, You mention loading up a 440 and in none of the information I mentioned, or have seen, is there currently a Maximum residualized MSRP, OR the residual dropping on the '40 series cars (so these programs are not on the 340 or the 440 currently).

Of course it may change, but the Max Residual MSRP program has been in place since September of last year or so, and no where has anyone mentioned it existing on the 340.... only on the 330.

My guess / expectation is that we will see the same thing on the 430 vs the 440, but I am NOT an insider so I dont know... I am just speculating based on current statis quo.

Hope that helps you and whoever else is reading.