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BMW 3-Series and 4-Series Forum (F30 / F32) | F30POST > 2012-2019 BMW 3 and 4-Series Forums > 3 and 4 Series Ordering / Pricing / Order Tracking Forum (and European Delivery) > How often has your residual matched market value?
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      03-04-2019, 03:44 PM   #1
daveypetey
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How often has your residual matched market value?

Just wondering how everyone has ended up at the end of the leases? Typically at least at trade in value? Better? Worse?
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      03-06-2019, 05:25 PM   #2
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Originally Posted by daveypetey View Post
Just wondering how everyone has ended up at the end of the leases? Typically at least at trade in value? Better? Worse?
I have never seen where residual is lower than market value. It usually off by several thousand
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      03-08-2019, 08:09 PM   #3
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Quote:
Originally Posted by daveypetey View Post
Just wondering how everyone has ended up at the end of the leases? Typically at least at trade in value? Better? Worse?
BMWFS is not going to err on the side where the residual will be lower than market value. They will always use a conservative depreciation.
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      03-24-2019, 09:37 PM   #4
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Quote:
Originally Posted by daveypetey View Post
Just wondering how everyone has ended up at the end of the leases? Typically at least at trade in value? Better? Worse?
BMWFS is not going to err on the side where the residual will be lower than market value. They will always use a conservative depreciation.
Actually bmwfs would prefer the residual be below market value. In that scenario the customer would pay more than their "fair share" of the car and bmw would get the car back with equity in the vehicle. Bmw does the opposite and subsidizes the leases so the residual is above market value... this accomplishes 2 goals. 1. Customer pays a lower lease price 2. Buying out the lease makes less financial sense so the customer chooses to lease again instead of buying out their current vehicle
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      03-24-2019, 09:48 PM   #5
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Quote:
Originally Posted by xlover View Post
Quote:
Originally Posted by IK6SPEED View Post
Quote:
Originally Posted by daveypetey View Post
Just wondering how everyone has ended up at the end of the leases? Typically at least at trade in value? Better? Worse?
BMWFS is not going to err on the side where the residual will be lower than market value. They will always use a conservative depreciation.
Actually bmwfs would prefer the residual be below market value. In that scenario the customer would pay more than their "fair share" of the car and bmw would get the car back with equity in the vehicle. Bmw does the opposite and subsidizes the leases so the residual is above market value... this accomplishes 2 goals. 1. Customer pays a lower lease price 2. Buying out the lease makes less financial sense so the customer chooses to lease again instead of buying out their current vehicle
You are 100% correct. I had the words flipped with what I meant. Thanks for the correction.
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      03-25-2019, 07:58 PM   #6
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This is one reason that legitimate cars end up as lease returns
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      04-02-2019, 02:30 PM   #7
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This is one reason that legitimate cars end up as lease returns
What is an illegitimate car? Born out of wedlock?
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      09-06-2019, 07:33 PM   #8
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I got a CPO with a higher residual than market value. Although, I wasn’t the original person to lease the vehicle.

Been driving my f34 for over a year and it’s still worth more than I purchased it for.
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      09-06-2019, 09:07 PM   #9
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What is an illegitimate car? Born out of wedlock?
I've heard BMW drivers called bastards, but the car itself?
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      09-06-2019, 11:05 PM   #10
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but the car itself?
Plenty of them.
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