View Single Post
      08-02-2019, 09:17 AM   #18
xlover
Major
No_Country
653
Rep
1,242
Posts

Drives: 2018 440 xdrive MPPSK
Join Date: Aug 2011
Location: Boston

iTrader: (0)

Garage List
2018 440 xdrive  [0.00]
i think its a fair observation that they have made some adjustments to increase profitability on a per unit basis on leases especially on higher end and higher optioned models...
throughout 2018 they raised the money factor and lowered residual rates across most of the lineup.
They are also making more use of "lease cash" to balance being able to bring the monthly expense down... i think they are doing this for 2 reasons:
1. it aligns the financial hit with the sale date of the car vs inflated residuals hit on the turn in date
2. lease cash to drive sales is a fixed number vs variable based on price... example 2k off a 40k 330 is the same 2k off a 70k M340 whereas if they inflated the residual by another 2% it would result in higher discount on the on the more expensive model.
530iDriver1229.00