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11-30-2022, 01:49 PM | #23 |
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11-30-2022, 01:51 PM | #24 |
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I have an appointment to look at a new 2 Series this week. The lease on my '20 F22 is coming due in April and the dealer is "searching for well-maintained vehicles to expand [their] pre-owned inventory and [is] interested in purchasing [my] BMW." I'm preparing myself for the pittance they're probably going to offer for my car that just turned over 6500 miles on a 30k lease.
And the crazy used car valuations? Despite being several years into this nonsense, the residuals for leases are still nowhere near fair for the prospective lessee. They might be a percent or two higher than they were before the pandemic, but the real-world value is somewhere closer to +20% these days. It's getting hard to justify a BMW when the prices keep going up and consumers are still forced to accept the reality of no MSRP rebates, insulting incentives, and unreliable loyalty discounts. |
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11-30-2022, 02:09 PM | #25 | |
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Buy it out.
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11-30-2022, 02:19 PM | #28 |
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11-30-2022, 02:27 PM | #29 |
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They're not. Starting to see lots of repos. And with lots of layoffs coming, it'll only get worse. BMW raising prices is expected but they should expect slower sales then as interest rates keep going up as well. We're due for a global reality check and it's starting.
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11-30-2022, 02:29 PM | #30 |
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11-30-2022, 02:37 PM | #33 |
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11-30-2022, 02:52 PM | #34 |
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but they are buying median priced cars at 44k w a median salary lf 50k
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11-30-2022, 02:54 PM | #35 |
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I believe the average new car sold is around $50k. Lower income Americans buy used, so this average $50k new car is likely being bought by someone with a higher than average income.
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11-30-2022, 02:54 PM | #36 |
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11-30-2022, 03:00 PM | #37 | |
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Reality is, when leasing became a popular thing, a lot of people overextended themselves just so they can be seen in a BMW. This is likely still happening but might slow down with all the increases. Not criticizing just stating what we know from data. Regardless of leasing or financing, a lot of people are likely paying more for a vehicle than they should be. The new C Class is supposed to be the hot thing, but those are hardly moving for a new model. |
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11-30-2022, 03:03 PM | #38 |
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Between the higher starting MSRPs, lack of incentives/discounts and higher interest rates/money factors, I think a lot of people are going to be in shock, especially if they are coming off a lease that they took out in 2020 or early 2021 (I believe a decent percentage of luxury cars are leased).
If won't affect those purchasing the M cars or 7/8 series cars as much, as one assumes those people have more disposable income. But all those folks who have an X1, X3 30i, 330i, etc. are going to start looking elsewhere. My wife's lease on her X1 is up in early 2023 and we've started shopping for a replacement. She likes the new one, but payments are going to be like $200+ more per month than her current one. I've seen people on this board and lease hacker getting M340i quotes for $1,000+ a month. My payment is in the 600's. While I like the car a lot, it wouldn't be worth $1,000+ a month for me on a lease. We're going to just purchase our next cars since the leasing market is brutal at the moment. We'll probably stick with BMW because we've had good experiences, like our cars, and are fortunate enough in our financial situation that we can afford the price increases. At some point though, it may just just not be worth it.
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11-30-2022, 03:18 PM | #40 | |
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11-30-2022, 03:26 PM | #41 |
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Everything will be on sale in 6-12 months. The tide is starting to turn.
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11-30-2022, 03:30 PM | #42 | ||
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I was planning on keeping my 9 year Audi for another year or 2 but saw this coming with rate hikes and low inventory.
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11-30-2022, 03:31 PM | #43 |
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I think you're right here. Makes the timing of this on BMW's end seem odd.
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11-30-2022, 03:36 PM | #44 |
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BMW can jack up the msrp all they want, but when more people are losing their jobs and with rates keep rising the demand is going to fall off the cliff. When that happens we're going to see 10%-15% off msrp.
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