[TwinPowerF30]

the 335i coupe was 57% and 4.9% for 36months back in january. so if it's 3.9% and 55% now, the monthly payment works out to be exactly the same. +/- couple dollars.

[datkin]

Originally Posted by benyl

Haha, yeah. Sorry didn't mean to sound like an ass.

Nov/Dec is the best time to get a BMW. Lease rate / Finance rates are usually combined with a strong residual.

I find that May / June / July is probably the worst as people get spring fever and go on a buying frenzy. New model year comes out in Sept and has a good residual as well, but also usually a very high interest rate.

Didn't take it as you sounding like an ass. I figured that you just worked the numbers and seen that it was a better deal.

[TwinPowerF30]

what's the excess charge per KM if went over the lease mileage limit? is it $0.15?

[datkin]

Originally Posted by weiweiwei

what's the excess charge per KM if went over the lease mileage limit? is it $0.15?

$0.15/Km is what my SA put in.

[halB]

Monthly lease payment = (Amortize payment based on the difference between new car value and residual value, interest rate, and length of the lease) + (Interest payment on residual value). Since the first part has a much larger impact than the second part, interest rate and residue value ended up working in opposite of each other. As it works out most, if not all, of the month payment you save from lower interest rate is offset by lower residual.

Don't expect residual to go back up too soon. As used car price drop in response to reduction in new car prices and availability of cheap used cars from the US, car leasing company are losing big money try to unload off-lease cars these days. They have to reduce the residual now to stop bleeding in the future. It is a good time to finance.

[mikev333]

for my 328 i got 2% lease rate and 55% residual

[paullo]

Halb- It sounds like you have a decent graps on the financing and residual values concept; maybe you can help me out with my next purchase.

I'm getting out of my 330i in July. I'm looking at a 08/09 335i (thanks Mike for the invoice pricing ) and was quoted a number a couple months ago;

- 3.9% over 36 months with a 58% residual value at the end.

Now, I've got a revised quote that looks like this;

- 2.0% over 36 months with a 56% residual value.

I'm at a bit of a loss as to why my sales associate is telling me that the new number isn't as good as the old number, based on higher residual values. If I lease for 36 months and buy the car out at the end, I save a couple grand. I took a beating on my 06 330, basically, it's almost not worth what I'd have to pay to buy out the lease. So, this new 'cheaper' number makes sense to me. Am I looking at this the wrong way?

Any help or info is greatly appreciated.

Cheers!

[Joekerr]

Paullo,

Your residual is lower in the second scenario, not higher. A lower residual means you're going to be paying off more of the car during the lease term (in the form of higher lease payments), which is offset by the decreased interest rate. Now given the gap in interest rate and the relatively small decrease in residual, my gut feeling is that I'd also be surprised if the monthly payments were not lower.

In any case, IF you really do intend on buying the car out at the end, you want the lower residual, plus the lower interest rate. I'd be surprised if your payments under the second option were significantly higher than the first option. I think your SA is screwing with you b/c the first option results in more interest to BMW, plus a higher buyout at the end.

[jeho]

Originally Posted by paullo

Now, I've got a revised quote that looks like this;

- 2.0% over 36 months with a 56% residual value.

So this is for 335i Coupe?

[halB]

I plugged your numbers into my spreadsheet, based on a $50,000 new value, and this is what I got. The numbers are accurate to within $2 from past experience. It looks like Case 2 is a better deal since you will be paying $40 a month less, and you will be buying it out $1000 cheaper at the end:

[raf]

Originally Posted by halB

I plugged your numbers into my spreadsheet, based on a $50,000 new value, and this is what I got. The numbers are accurate to within $2 from past experience. It looks like Case 2 is a better deal since you will be paying $40 a month less, and you will be buying it out $1000 cheaper at the end:

Where are you getting these residual percentages from? I was quoted 55% last month and 52% now. This is for a 335i sedan. I'd sure like to know if my dealer is "mistaken".

[Joekerr]

He's getting them from Paullo - there's no "secret source" here. Its whatever the dealer tells you - only way you can verify is go to other dealers and price one out on BMW - you are aware that BMW Canada site tells you the residual value right?

BTW - similar to Hal's spreadsheet, I found a great lease calculator that's actually quite accurate, maybe $10 off per month and its free!

Go to: www.canadiandriver.com/tools/lease.htm

[raf]

Originally Posted by Joekerr

He's getting them from Paullo - there's no "secret source" here. Its whatever the dealer tells you - only way you can verify is go to other dealers and price one out on BMW - you are aware that BMW Canada site tells you the residual value right?

Yes, that is what I checked and it says 53% for a 335i sedan. I wonder why my dealer is quoting me 52%? I guess I'll have to ask.

[faston]

When I ordered my 335 Sedan on Feb. 29th, they quoted me 57% residual 3.9% interest. Someone here said it is down to 55%. Are you now saying that it is down to 53%(or even 52%)?? If so, my payment would go up substantially from what I was quoted I think.

[paullo]

First off, thanks everyone for the input. As always, very helpful and appreciated.

To try and follow up with some of the posts;

Joekerr- you're right, thanks. Payments on the 2nd scenario are in fact lower. Quite lower on a monthly lease.

Jho86- this is for a 335i sedan, 2008 build.

halB- correct. Without getting into the exact specifics, it's about $2300 cheaper to go with the lower interest rate / lower residual. Which, now makes perfect sense.

Now I just need to find this lower residual rate printed or posted somewhere so I can go back to my SA with it and see how much less the car's gonna cost to buyout...