[verbs]

I'm trying to figure out if getting an LCI car will mean the residual rates might get a slight bump up in year one and thus allow for more favorable financing than the last year of the pre-LCI car.

Any insight on this?

[DesertSmokeBBQ]

I'd say no. Residuals are based on projected values at lease end. A lot of factors go into this including how want of a given model are sold the previous quarter (residuals are updated monthly but the biggest changes are often quarterly), book value/auction numbers which give real-time data on what a given model is worth and the desire of captive finance to wrangle in business. (If the manufacturer needs to move X volume, rates/residuals/rebates are generally more favorable..

[swamy]

from what i've seen this past year and half, BMW is offering incentives to offset either drop in residuals or increase in MFs so your total payments don't vary significantly.If you end up liking your car, & have options on it that BMW will be confident of moving from their lot after you turn it in,they won't negotiate at lease end so you may be better off getting a lower residual car. just a diff pov to think abt & not always look for high rv

[GSAL55]

BMW FS is an enigma wrapped in a riddle - they'll come out with the incentives the day after they expire half-way through the day, so there's really no way of knowing for sure. Traditionally the residuals for the LCI are lower because BMW doesn't need to sell those ones right away whereas the previous model year's residuals are higher. That route or higher residuals and more cash incentives on the previous model year and the dealership is more willing to part with a previous year than an LCI.

[swamy]

Originally Posted by GSAL55

BMW FS is an enigma wrapped in a riddle - they'll come out with the incentives the day after they expire half-way through the day, so there's really no way of knowing for sure. Traditionally the residuals for the LCI are lower because BMW doesn't need to sell those ones right away whereas the previous model year's residuals are higher. That route or higher residuals and more cash incentives on the previous model year and the dealership is more willing to part with a previous year than an LCI.

its hard to time the incentives & catch the best possible deal on any car. But to their credit, BMW residuals and MFs are located right in their web site if one knows how to figure it out so we dont have to ask dealers unnecessarily.

[GSAL55]

Originally Posted by swamy

its hard to time the incentives & catch the best possible deal on any car. But to their credit, BMW residuals and MFs are located right in their web site if one knows how to figure it out so we dont have to ask dealers unnecessarily.

100% true! One could also just threaten to walk and that would prob work!