[flnsx]

Why are residuals for the 335's so LOW!

Is it because they sell so many of them? Infiniti and Lexus are MUCH higher. I think Infiniti is inflating them to sell cars but it makes for very attractive lease deals.

Can Anyone guess what the residuals would be in Nov for a 24 month lease on a 33i coupe with 10k miles a year?

Could it approach 70%

[adrian's bmw]

Originally Posted by flnsx

Why are residuals for the 335's so LOW!

Is it because they sell so many of them? Infiniti and Lexus are MUCH higher. I think Infiniti is inflating them to sell cars but it makes for very attractive lease deals.

Can Anyone guess what the residuals would be in Nov for a 24 month lease on a 33i coupe with 10k miles a year?

Could it approach 70%

How is 71% low? That's just 14.5% of real depreciation. That's actually quite strong. If Infiniti's and Lexus are using inflated residuals, they're gonna lose their a$$es at auction come maturity for these cars. Ouch!


Do us a favor and verify the residuals of Infiniti and Lexus first and post them. It'd be nice to know the supporting info to back it up, ya know.

No crystal ball here, but I believe the 335i coupe residual for 24/10k at 71% is going to hold steady throughout the model year.

Oh, when a residual is artificially inflated like I suspect it is for the other brands you mentioned, that's when you can definitely say they have a subvented lease program. In other words, their sales are sagging so they need some residual support to give their sales a lift. Don't expect these cars to even come close to their residuals at maturity. I can definitely say that BMW has been spot on in accurately hitting the mark with residuals for many of their models.

So the question should be, why are BMW's residuals so ... accurate and indicative of future market conditions? Because they have the strongest CPO program in high line and can back up their residuals with a very good resale program at lease end.