[gabern]

the current rate for a 335 is 4.9% ( 36 months), given the expected direction of the bank of canada in lowering the prime rate within the next month or so, can we expect BMW Canada to change their rate?

Will a dealership adjust the lease rate on a contract if BMW Canada lowers their rate between now and when the vehicle is actually delivered?

Has anyone experienced this occurance?

[FastLane]

Not sure about Canada, but I doubt the lease rates for the US will change until the 2nd quarter at the earliest. If anything, I would think they would increase to encourage purchasing of the 1 series.

And from what my AD told me, "no, they wont adjust the lease rate once the lease has been signed but they might let you turn in the car early, pior to the lease end date."

[benyl]

The lease rate is not likely to go down and has nothing to do with the bank of Canada rate. It has to do with demand of a vehicle.

M cars typically don't have rates below 7%.

Also, the rate isn't the only important thing. You have to look at the residual. The longer you wait for your car, the lower the residual will be. And thus a higher payment.

BMW Canada typically has low rates in November and December. After that, they typically go up. I wouldn't be surprised if the rate goes up to 5% or higher in March/April.

I bet if you ask some people on this board, they have lease rates of 8% or more if they got their car in the summer of 2007.

[Esoteric]

I agree that rates tend to be function of demand and time. Spring is a good time for dealers (generally speaking), so you often see higher rates at that time.

Residuals are hugely important when factoring lease payments. I can't remember what BMW is offering right now, but they tend to have high residuals compared to the competition. Funny enough, I was considering the IS350 at one point, and they have residuals right now of much less than 50% on 2008 models. I remember when I looked at the original IS300 years ago, they had similar residuals to BMW's. I'm not sure if it's a function of the car, or a function of the dollar and they're just trying to protect themselves from the hit the used car market is taking because of the strong dollar.

Suffice it to say, the IS350 is no longer very attractive from a lease perspective... I prefer the BMW anyway, but I have to consider all my options!

Originally Posted by benyl

The lease rate is not likely to go down and has nothing to do with the bank of Canada rate. It has to do with demand of a vehicle.

M cars typically don't have rates below 7%.

Also, the rate isn't the only important thing. You have to look at the residual. The longer you wait for your car, the lower the residual will be. And thus a higher payment.

BMW Canada typically has low rates in November and December. After that, they typically go up. I wouldn't be surprised if the rate goes up to 5% or higher in March/April.

I bet if you ask some people on this board, they have lease rates of 8% or more if they got their car in the summer of 2007.

[veightkiller]

we are getting 2% here.

[ak47firepower]

2%? On what year, make and models?

[faston]

That would be on 2007 models.

[veightkiller]

^^ yeah 2007 models

[benyl]

Originally Posted by veightkiller

^^ yeah 2007 models

Good luck finding one. They are usually cars with weird package combinations or base models.

2% on 2007 is across the country. 4.9% is on the 2008. I don't think BMW does regional interest rates.

[328Toronto]

the original question was: Will a dealership adjust the lease rate on a contract if BMW Canada lowers their rate between now and when the vehicle is actually delivered?

the answer is yes, BUT you better confirm that with your dealership BEFORE .. I got my rate reduction (1% lower) in May 2007

[TwinPowerF30]

residual on 2008 335i 3year lease 20000KM is 57%.

[veightkiller]

Originally Posted by benyl

Good luck finding one. They are usually cars with weird package combinations or base models.

2% on 2007 is across the country. 4.9% is on the 2008. I don't think BMW does regional interest rates.

i found one already and im driving it and it's just the car im looking for 335i SGM,6spd manual,premium package,PCD. etc i just got lucky on this one.

[veightkiller]

Originally Posted by 328Toronto

the original question was: Will a dealership adjust the lease rate on a contract if BMW Canada lowers their rate between now and when the vehicle is actually delivered?

the answer is yes, BUT you better confirm that with your dealership BEFORE .. I got my rate reduction (1% lower) in May 2007

i doubt that becuase thats the rate that you sign for but im no dealer might aswell ask them.

[benyl]

I got 60%... hehehe

[kalch]

ya, bmw lowered the residual and the interest rate. it was a flat change.

[benyl]

rate went up. I got 3.9% (3.4 as I am a return customer). It is 4.9% now.

[TwinPowerF30]

Originally Posted by benyl

I got 60%... hehehe

when did you order?

[benyl]

I picked up on Dec 28th.