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      07-29-2019, 08:24 AM   #1
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Are BMW leases significantly less attractive today than in the past?

Has anyone noticed that BMW leases as of this year are far worse than ever before?

The stated lease deals online are only for 7,500 miles per year and are at a much lower residual value than before. Is BMW now matching up with Audi and Benz? Did they get themselves in trouble on so many upside down cars? It at least seems that it's far less worth it to lease a BMW these days than ever before.
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      07-29-2019, 10:16 AM   #2
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Who the heck drives just 7500 miles in one year? Maybe BMW is targeting the Buick market?
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      07-29-2019, 11:03 AM   #3
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Quote:
Originally Posted by Chihuahua View Post
Who the heck drives just 7500 miles in one year? Maybe BMW is targeting the Buick market?
I don't know, it seems to be a setup to get you in the door...
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      07-29-2019, 11:16 AM   #4
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Quote:
Originally Posted by Chihuahua View Post
Who the heck drives just 7500 miles in one year? Maybe BMW is targeting the Buick market?
Hello there, I work from home.

But I get what you're saying, 7500 miles a year is a complete joke if you have even a short commute. Working from home I still average 5500-6500 per year.
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      07-29-2019, 12:19 PM   #5
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Quote:
Originally Posted by Chihuahua View Post
Who the heck drives just 7500 miles in one year? Maybe BMW is targeting the Buick market?
There are plenty of people where their BMW is not the PRIMARY vehicle in the garage.
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      07-29-2019, 12:21 PM   #6
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7500 isn't necessarily abnormal, especially if you have multiple cars. i3 was returned with 10k on the clock on a 3 year lease.

But to answer the OPs question, yep leases are much worse now. I leased my 3 with 15K/year allowance and 61% residual. Also the i3 was something absurd like 72% (can't remember off the top of my head) for 10k/year. Those days are long gone.
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      07-30-2019, 12:10 PM   #7
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I average about 10K a year and that is what my lease is for....10K.
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      07-30-2019, 12:28 PM   #8
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likely upside down on some models because they diluted their brand
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      07-31-2019, 11:55 PM   #9
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Quote:
Originally Posted by ASAP View Post
Has anyone noticed that BMW leases as of this year are far worse than ever before?

The stated lease deals online are only for 7,500 miles per year and are at a much lower residual value than before. Is BMW now matching up with Audi and Benz? Did they get themselves in trouble on so many upside down cars? It at least seems that it's far less worth it to lease a BMW these days than ever before.
I think they do this so that it goes to the cpo section so they can resell the car with low miles
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      08-01-2019, 09:05 AM   #10
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They're not as good as they once were. You can find good deals form time to time though. Like the CS leases that were going for $750/month.
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      08-01-2019, 01:50 PM   #11
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I remember in the past there used to be much more incentives and rebates, I don't see much of that anymore.
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      08-01-2019, 02:06 PM   #12
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Hence why I just leased an Alfa Giulia. Far better lease deal than any Audi/BMW/Merc
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      08-01-2019, 04:28 PM   #13
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In GA they do "owner's choice" which isn't a lease but it's structured as one because here we pay tax on lease too and if you buy you pay again.

The rates when I bought my x2 were over the equivalent of 7% interest when purchasing was .9%

I didn't want to buy per-se, but the "lease" was certainly out of the question.
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      08-01-2019, 07:45 PM   #14
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Quote:
Originally Posted by Mo@BMWofFairfax View Post
They're not as good as they once were. You can find good deals form time to time though. Like the CS leases that were going for $750/month.
Is this referring to an M3CS? If so, that's pretty good!
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      08-01-2019, 07:59 PM   #15
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Yes they are worse. And yes bmw is blowing out the M3 with incredible lease deals. But that’s a unique situation because it’s the end of the model and the new generation will be coming out.
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      08-02-2019, 12:10 AM   #16
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My MF in 2015 was around 1% with MSDs. Next go around in 2018 MF jumped to almost 4% no MSDs allowed. Thankfully residuals are still ok and there were good incentives. The future doesn't look great to be honest. MF keeps rising, BMW is losing profits, tariffs and trade wars, increasing pressure to electrify. :
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      08-02-2019, 09:11 AM   #17
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Quote:
Originally Posted by HyeWarrior View Post
Hence why I just leased an Alfa Giulia. Far better lease deal than any Audi/BMW/Merc
Great looking and driving car. BTW...did you lease two?
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      08-02-2019, 10:17 AM   #18
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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.
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      08-02-2019, 12:02 PM   #19
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Quote:
Originally Posted by SteveinArizona View Post
Quote:
Originally Posted by HyeWarrior View Post
Hence why I just leased an Alfa Giulia. Far better lease deal than any Audi/BMW/Merc
Great looking and driving car. BTW...did you lease two?
Two Giulias? Lol nope, just one. But it's only a two year lease, which is exactly what I wanted for the time being
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      08-02-2019, 09:13 PM   #20
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Quote:
Originally Posted by irishbimmer View Post
Is this referring to an M3CS? If so, that's pretty good!
Yep, steep discounts plus one of the highest residuals, quite a few members got sub-$800 deals.
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      08-04-2019, 07:42 AM   #21
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Quote:
Originally Posted by Chihuahua View Post
Who the heck drives just 7500 miles in one year? Maybe BMW is targeting the Buick market?
People that work from home, have extremely short commutes or retired.
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      08-04-2019, 07:43 AM   #22
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Quote:
Originally Posted by HyeWarrior View Post
Hence why I just leased an Alfa Giulia. Far better lease deal than any Audi/BMW/Merc
FCA is desperate to give them away...
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