# September incentives, pull ahead



## fabfive5 (Apr 14, 2016)

Curious if anyone had any insight for September pull aheads, specifically to get into an X5 35i from a 7 series lease ending in March. I know normally they are 3 months. Just looking to offset getting out of lease early.

Much appreciated


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## ZoomVT (May 30, 2008)

We are all waiting for the same...

Usually not public until the 2nd day of the month but since it's labor day weekend maybe they get an early start?


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## MJBrown62 (Jun 15, 2016)

ZoomVT said:


> We are all waiting for the same...
> 
> Usually not public until the 2nd day of the month but since it's labor day weekend maybe they get an early start?


Other way around ... they announced to dealers that August programs run through the long weekend.


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## ZoomVT (May 30, 2008)

MJBrown62 said:


> Other way around ... they announced to dealers that August programs run through the long weekend.


That sucks... Oh well...


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## fabfive5 (Apr 14, 2016)

Please let us know what you hear, whomever hears it first! Thank you. Please include if the lease loyalty ($2000?) and lease ($1000?) credits still apply for September.


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## jjrandorin (May 8, 2013)

fabfive5 said:


> Please let us know what you hear, whomever hears it first! Thank you. Please include if the lease loyalty ($2000?) and lease ($1000?) credits still apply for September.


Thats the thing, right? Loyalty is 1k right now actually and seems to be regionally based (michael said he is not seeing it at his center).

You are ALWAYS taking a chance on whatever the new programs are, unless you submit a credit app right now, you dont know if the september programs will still have that credit or not, or what the residuals are etc.

Dont always expect each month to be better than the last, or you will set yourself up for disappointment. If you are looking to either buy a car right now (in august) or waiting for september, do yourself a favor and get an approved credit application in right now so you get locked into august rates, in case september is worse. You might thank yourself later.


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## fabfive5 (Apr 14, 2016)

I agree with your point, but I have never had an issue getting an app approved. The only reason I am waiting is because my lease is not up until March, otherwise I would have pulled the trigger yesterday.


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## jjrandorin (May 8, 2013)

fabfive5 said:


> I agree with your point, but I have never had an issue getting an app approved. The only reason I am waiting is because my lease is not up until March, otherwise I would have pulled the trigger yesterday.


Ok... but the reason I was suggesting submitting a credit app now had zero to do with your ability to get approval. I just want to put that out there for you or anyone else that might be reading this.

The reason I said that is because an approved credit application locks you into whatever rates / incentives are in play at the time of your approval, for a period of 60 days (90 days west coast?).

So, If you were ready to purchase (which it sounds like you are not), if you got an approved credit app in now in august, you would essentially be able to choose between august and september numbers. Without that, you run the very real risk that september is worse than august, and have no way to go back to august numbers.

Removes playing BMW incentive roulette, as it were, at least for a couple of months. The lock is only good for 60 days (or 90 on west coast I think) so does not help you in the slightest for a march 2017 date.

Hopefully I explained that better this time.


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## fabfive5 (Apr 14, 2016)

Ah, yes! Much appreciated. Thank you for the further explanation. I'll use that suggestion if I am getting more serious between months.


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## MJBrown62 (Jun 15, 2016)

jjrandorin said:


> ... The lock is only good for 60 days (or 90 on west coast I think)...


Yes, 90 days from the end of the program period for western region dealers, due to the extra time to ship the cars.

Michael


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## 328AL (Aug 16, 2013)

jjrandorin said:


> Ok... but the reason I was suggesting submitting a credit app now had zero to do with your ability to get approval. I just want to put that out there for you or anyone else that might be reading this.
> 
> The reason I said that is because an approved credit application locks you into whatever rates / incentives are in play at the time of your approval, for a period of 60 days (90 days west coast?).
> 
> ...


 Just to clarify your statements here ....
I understand if you want to build a car and you agreed to that build, by submitting application you can lock the current rates for 60-90 days.

However, what if my lease expires in October, and I am looking to lease/buy an existiing MY 2016 car. Does just submitting an application now locks me in August rates for September - October lease?


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## AksNasZasNas (May 30, 2013)

What's lockable and what's not lockable? For example, are all of the different lease credits across the product lines lockable? Is the loyalty credit lockable? Thanks!


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## zoombie99 (Mar 27, 2012)

328AL said:


> Just to clarify your statements here ....
> 
> I understand if you want to build a car and you agreed to that build, by submitting application you can lock the current rates for 60-90 days.
> 
> However, what if my lease expires in October, and I am looking to lease/buy an existiing MY 2016 car. Does just submitting an application now locks me in August rates for September - October lease?


Aren't you subject to the pull ahead now?


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## MJBrown62 (Jun 15, 2016)

AksNasZasNas said:


> What's lockable and what's not lockable? For example, are all of the different lease credits across the product lines lockable? Is the loyalty credit lockable? Thanks!


It's always changing. But this month the Lease Cash on ePerformance vehicles and other lease/APR incentives are lockable.

We don't have that Loyalty credit, so I can't speak for that specifically.

Michael


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## 328AL (Aug 16, 2013)

zoombie99 said:


> Aren't you subject to the pull ahead now?


Yes, "discretional" pull ahead, when a dealer would have to keep my car. Not to be confused with a "traditional" pull ahead when car goes back to BMW.

Dealers do not want my car, it has too many options


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## 328AL (Aug 16, 2013)

MJBrown62 said:


> It's always changing. But this month the Lease Cash on ePerformance vehicles and other lease/APR incentives are lockable.
> 
> We don't have that Loyalty credit, so I can't speak for that specifically.
> 
> Michael


Mike, how do I lock incentives if I don't even know from which dealer a car will come from?

I'm watching three cars right now, and because no dealer wants to take my car, I'll have to wait until my lease ends and hope those cars are still there.


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## jjrandorin (May 8, 2013)

328AL said:


> Yes, "discretional" pull ahead, when a dealer would have to keep my car. Not to be confused with a "traditional" pull ahead when car goes back to BMW.
> 
> Dealers do not want my car, it has too many options


You sure its because your car has too many options, or does your car have too many miles?

As for whats lockable and what is not, thats a question for the client advisor you would be working with because there is no hard and fast rule. You have to look at the fine print on each offer. I think Michael mentioned he has a big binder that he made to keep track of all these little details (like this). This is one situation where the CA matters, because you need them to know these things so you can make a decision thats best for you.

(long winded way to say that I have no idea, and it changes).


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## MJBrown62 (Jun 15, 2016)

328AL said:


> Mike, how do I lock incentives if I don't even know from which dealer a car will come from?
> 
> I'm watching three cars right now, and because no dealer wants to take my car, I'll have to wait until my lease ends and hope those cars are still there.


I have clients that submitted multiple applications with each directed to a different dealer. 2 or 3 single inquiries won't affect your score.

MJB


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## 328AL (Aug 16, 2013)

jjrandorin said:


> You sure its because your car has too many options, or does your car have too many miles?
> 
> As for whats lockable and what is not, thats a question for the client advisor you would be working with because there is no hard and fast rule. You have to look at the fine print on each offer. I think Michael mentioned he has a big binder that he made to keep track of all these little details (like this). This is one situation where the CA matters, because you need them to know these things so you can make a decision thats best for you.
> 
> (long winded way to say that I have no idea, and it changes).


 I'm good with miles, I have 42,000 with 45,000 allowed.

But it could be a combination of miles and options, with BMW buyout price that makes it unworkable for dealers unless I pay the remaining balance in the deal, so they can unload it to BMW.


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## 328AL (Aug 16, 2013)

MJBrown62 said:


> I have clients that submitted multiple applications with each directed to a different dealer. 2 or 3 single inquiries won't affect your score.
> 
> MJB


 Thank you Mike! I will do just that.


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## ZoomVT (May 30, 2008)

So - is it official that August program has been pushed until 09/07?


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## MJBrown62 (Jun 15, 2016)

ZoomVT said:


> So - is it official that August program has been pushed until 09/07?


CPO Programs end today, Sep programs to be announced tomorrow, 9/1

New Programs end 9/5, Sep programs to be announced 9/6

mjb


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## ZoomVT (May 30, 2008)

MJBrown62 said:


> CPO Programs end today, Sep programs to be announced tomorrow, 9/1
> 
> New Programs end 9/5, Sep programs to be announced 9/6
> 
> mjb


So there is a new program just for 5 days? Which my guess it's most likely to be the same as August?


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## MJBrown62 (Jun 15, 2016)

ZoomVT said:


> So there is a new program just for 5 days? Which my guess it's most likely to be the same as August?


August New Vehicle Programs continue through 9/5, Sept programs will be released on 9/6


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## jjrandorin (May 8, 2013)

ZoomVT said:


> So there is a new program just for 5 days? Which my guess it's most likely to be the same as August?


Hi Zoom, I think you are misunderstanding what Michael said,

How I read it was:

NEW (as in not pre owned, not CPO, etc.. Brand new vehicle) car programs continue through the weekened, and are going to be released on 09/06

CPO USED car programs end today, and the (new) CPO used car programs will be relased on 09/01

So, there is not a program that is in place for 5 days.


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## MJBrown62 (Jun 15, 2016)

jjrandorin said:


> Hi Zoom, I think you are misunderstanding what Michael said,
> 
> How I read it was:
> 
> ...


:thumbup:


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## ZoomVT (May 30, 2008)

jjrandorin said:


> Hi Zoom, I think you are misunderstanding what Michael said,
> 
> How I read it was:
> 
> ...


:thumbup:

i'm dense. I completely missed the "CPO" part of his post and so it didnt read as clearly. :dunno:


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## AksNasZasNas (May 30, 2013)

MJBrown62 said:


> It's always changing. But this month the Lease Cash on ePerformance vehicles and other lease/APR incentives are lockable.
> 
> We don't have that Loyalty credit, so I can't speak for that specifically.
> 
> Michael


Thanks Michael. I should've been clearer. I meant the lease loyalty incentive offered for the eperformance cars (i3, i8, 330e, and X5 e). Is that loyalty incentive lockable? Thanks.


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## MJBrown62 (Jun 15, 2016)

AksNasZasNas said:


> Thanks Michael. I should've been clearer. I meant the lease loyalty incentive offered for the eperformance cars (i3, i8, 330e, and X5 e). Is that loyalty incentive lockable? Thanks.


Yes, this lease credit is lockable.


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## fabfive5 (Apr 14, 2016)

Since it is now September 1, if anyone knows what the September CPO incentives are please let us know. Thank you


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## zoombie99 (Mar 27, 2012)

Don't the August programs continue through the holiday weekend?


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## fabfive5 (Apr 14, 2016)

From a previous reply earlier in thread:

NEW (as in not pre owned, not CPO, etc.. Brand new vehicle) car programs continue through the weekened, and are going to be released on 09/06

CPO USED car programs end today, and the (new) CPO used car programs will be relased on 09/01


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## fabfive5 (Apr 14, 2016)

Bump on any new incentives 

Anyone hear anything about CPO's?

New car incentives still being released Tuesday?


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## MJBrown62 (Jun 15, 2016)

fabfive5 said:


> Bump on any new incentives
> 
> Anyone hear anything about CPO's?
> 
> New car incentives still being released Tuesday?


New Car Programs from August continue through end of day tomorrow, 9/5. They've added a weekend enhancement with a $1,500 Option Allowance on 3-series sedans, wagons and GTs. $2,000 for X1's. MY 2016 only. Not lockable. Must take delivery by EOD tomorrow.

CPOs came out on the 1st. Rates as low as 0.9% on MY 2012-2014(2014 i3's only.) Free one year "Extended Care" Maintenance Plan on 13/14 3-series and 5-series.

See your local dealer for details!

Michael


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## 328AL (Aug 16, 2013)

Thank you Michael, as always very timely information!


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## fabfive5 (Apr 14, 2016)

When one of you finds out the new, if any, incentives for Sept...specifically for X5's, loyalty, lease to lease....please let us know. Much appreciated.


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## AksNasZasNas (May 30, 2013)

It seems that everything dropped a percentage point for the 36 month lease programs in residuals (i.e., 5 series went from 67 to 66) except I think the 3 series which stayed the same happily also retained the options credit (recall that it was 1,500 for 3s and 2,000 for X1) added at the end of the month. Most cars now have an options credit as high $5,000 for the 6 and 7, and i8. The i8 gets a two-point residual bump as well. 

No clue on add on incentives like loyalty, eperformance loyalty, and pull aheads. And no idea if the MF has changed. 

Please report back when anyone learns of anything else. Thanks!


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## jjrandorin (May 8, 2013)

fabfive5 said:


> When one of you finds out the new, if any, incentives for Sept...specifically for X5's, loyalty, lease to lease....please let us know. Much appreciated.


I just calculated X5 residuals at 59$ using information from BMWUSA website (and the text in the fine print of the offer says its good through sept 30. From what I remember, August was 60 percent so it looks like that went down 1 percent. That means residuals should be 59/58/57 for 10/12/15k per year miles.

There is still a 2k option allowance showing there as well.

So, the change seems to be a loss of 1 percent of the residual (at least for an X5).


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## ZoomVT (May 30, 2008)

Unless there are some non-public lease credit or build-out credit looks like I gambled and lost 1% on the residual or about $15-20/mo. Ouch. 

Anyone have any ideas on the MF?
Or does anyone know what the standard "profit" is on the BMWUSA.com offers? 
I can get the residual, and roughly get to the payment, but I have 2 variables, MF and "profit". I would think BMW uses a standard profit to the dealer to build the deal on the website.


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## eddiethekub (Apr 17, 2005)

Yup, same here.... been looking, sort of had a deal but the CA didn't get back to me ......so Ive lost 1% residual on the 5 series!!!! Would like to know if the MF has changed!!!!!


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## psymon (Sep 20, 2002)

MF got better by .0001. 

Deal was better in August.


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## ZoomVT (May 30, 2008)

psymon said:


> MF got better by .0001.
> 
> Deal was better in August.


its now .00127?


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## FaRKle! (Jun 18, 2016)

AksNasZasNas said:


> It seems that everything dropped a percentage point for the 36 month lease programs in residuals (i.e., 5 series went from 67 to 66) except I think the 3 series which stayed the same happily also retained the options credit (recall that it was 1,500 for 3s and 2,000 for X1) added at the end of the month. Most cars now have an options credit as high $5,000 for the 6 and 7, and i8. The i8 gets a two-point residual bump as well.
> 
> No clue on add on incentives like loyalty, eperformance loyalty, and pull aheads. And no idea if the MF has changed.
> 
> Please report back when anyone learns of anything else. Thanks!


Looks like it's $1500 options allowance on the 2016 3's and $1000 on the 2017.

$2000 for 2016 X1 and $1000 for 2017 X1.

Strangely, the 2016 X3's have no options allowance, but the 2017s have $1000.


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## jiazzi (Aug 13, 2016)

Does the $1500k options allowance for the 3 series apply to new lessees as well or those who have already been a customer previously?


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## psymon (Sep 20, 2002)

ZoomVT said:


> its now .00127?


Unless I was misquoted yes.


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## ZoomVT (May 30, 2008)

psymon said:


> Unless I was misquoted yes.


Thanks for the info - i just wanted to clarify in case there was an extra/missing 0.

I know there is some trunk money on the 5 series but nothing concrete. Surprised there is no build allowance or credit on them


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## hedges1 (Feb 23, 2014)

Looks like there is $500 loyalty on 2 series and X1s, $1000 for every other model.

http://www.bmwusa.com/standard/content/loyaltywaiver.aspx


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## hedges1 (Feb 23, 2014)

Still no word on changes to Pull Ahead programs.


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## ZoomVT (May 30, 2008)

hedges1 said:


> Still no word on changes to Pull Ahead programs.


I was hoping for this as well. It looks like its still a dealer-sponsored program. Not a national program. No word on if it got extended to include January 2017 expiring leases


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## X5_XPRESS (Jul 15, 2016)

I'm reading they raised 2017 X5 residuals to 58% and the lease cash (X5 40e) up $1000 from $3000. Still short of the $5500 on the 2016's however.


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## Sarlynnla (Feb 8, 2016)

Any changes to the i3 programs for September? Specifically 30 month lease terms.


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## MJBrown62 (Jun 15, 2016)

ZoomVT said:


> I was hoping for this as well. It looks like its still a dealer-sponsored program. Not a national program. No word on if it got extended to include January 2017 expiring leases


There is a national, albeit not-published, pull ahead program that runs from July 1st through September 30th. It's called the Lease Loyalty Program. It's a 3-payment waiver for eligible contracts that end 8/1 - 12/31/2016. Any vehicle pulled ahead is a required purchase by the dealer. That is the only portion that is "discretionary."

These are the only contracted vehicles that can qualify:


3 Series Sedan and GT, MY 2012-2014
3 Series Wagon, MY 2014
5 Series, MY 2012-2014
4 Series, MY 2014


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## ctorrey (Mar 17, 2007)

hedges1 said:


> Looks like there is $500 loyalty on 2 series and X1s, $1000 for every other model.
> 
> http://www.bmwusa.com/standard/content/loyaltywaiver.aspx


Is this in addition to the option credits I have seen for several models? For example, on a 340xi, there is a $1k option credit and $1k loyalty waiver, correct?


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## hedges1 (Feb 23, 2014)

Should be in addition.


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## e30_for_life (Mar 6, 2009)

Hi gang, I am confused. I just looked at the 2017 340i lease special as outlined here
http://www.bmwusa.com/special-offers/lease.2017-340i-Sedan.html

it looks like the residual for 10K is 62%. I then plug all the numbers from here into a lease calculator and the only way I can arrive at 519/mo is if I make the money factor ridiculously low (like .000090) .. what am I doing wrong?


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## ZoomVT (May 30, 2008)

e30_for_life said:


> Hi gang, I am confused. I just looked at the 2017 340i lease special as outlined here
> http://www.bmwusa.com/special-offers/lease.2017-340i-Sedan.html
> 
> it looks like the residual for 10K is 62%. I then plug all the numbers from here into a lease calculator and the only way I can arrive at 519/mo is if I make the money factor ridiculously low (like .000090) .. what am I doing wrong?


Are you including the $3k down payment?
What are you using for sale price?


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## e30_for_life (Mar 6, 2009)

ZoomVT said:


> Are you including the $3k down payment?
> What are you using for sale price?


I am including downpayment. For sale price I am using MSRP minus 1K to "pretend" the option credit. Do these specials assume some sort of a silent discount off of MSRP?


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## ZoomVT (May 30, 2008)

Yes. They include a dealer contribution. But it's a bad deal anyway and you can typically do better.


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## e30_for_life (Mar 6, 2009)

ZoomVT said:


> Yes. They include a dealer contribution. But it's a bad deal anyway and you can typically do better.


 .. yes I am certain I can do better. Let me just get to the point.. can someone please tell me the money factor for 2017 340i on September. I am trying to reverse engineer from the special but that's all I want.


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## ZoomVT (May 30, 2008)

The rate it's usually the same across the line up (with some model specific regional exceptions)

There is one data point that indicates the rate is now 0.00127.


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## zoombie99 (Mar 27, 2012)

ZoomVT said:


> I was hoping for this as well. It looks like its still a dealer-sponsored program. Not a national program. No word on if it got extended to include January 2017 expiring leases


Last month was national since I got a call from BMWFS telling me about it.


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## e30_for_life (Mar 6, 2009)

ZoomVT said:


> The rate it's usually the same across the line up (with some model specific regional exceptions)
> 
> There is one data point that indicates the rate is now 0.00127.


awesome, thanks!


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## fabfive5 (Apr 14, 2016)

*Oh well*

Sounds like there is not much help from going from my 760Li to an X5. I appreciate all checking. Looks like I'll just wait it out for now.


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## ZoomVT (May 30, 2008)

I made a couple of calls and the mf I got was actually 0.00136 so it's just a little lower than last month. Definitely doesn't make up for the change in residual.


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## Liquidice (Jul 26, 2016)

According to the Edmunds forums (which seem to be pretty accurate) - the MF is 0.00136. But - for the MY17 340xi - the residual according to Edmunds is 62% -- according to my dealer it is 61%. They both agree on the $1000 incentive for the MY17 340xi. Does anyone know - can the dealer alter the residual (I didn't think they could?).


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## jjrandorin (May 8, 2013)

psymon said:


> MF got better by .0001.
> 
> Deal was better in August.


Has anyone been able to confirm that the money factor actually dropped from .00137 to .00127 as base, and NOT from .00137 to .00136 (meaning, are you absolutely sure that you didnt miss a zero here?)

I am not in the market, but if this information is not correct, there are going to be a LOT of hard conversations between CAs and Customers... and CAs have heard "I saw it online" a bazillion times and that means nothing to them.

Alternately, customers read this here and think this is absolute gospel, so... just want to see if we can confirm 100% that a zero was not missed.

Remember, CAs will not confirm this so we need to either have someone get quoted the number directly, or see if its somewhere else online to confirm.


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## eddiethekub (Apr 17, 2005)

Hope someone can confirm this soon, because I am in the market now. Doesn't seem like a .00001 is worth the trouble


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## jiazzi (Aug 13, 2016)

AksNasZasNas said:


> It seems that everything dropped a percentage point for the 36 month lease programs in residuals (i.e., 5 series went from 67 to 66) except I think the 3 series which stayed the same
> 
> Please report back when anyone learns of anything else. Thanks!


What are the residuals for the 3 series on 12k? I know 10k is 66% but can't seem to find what it is for 12k.


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## jjrandorin (May 8, 2013)

jjrandorin said:


> Has anyone been able to confirm that the money factor actually dropped from .00137 to .00127 as base, and NOT from .00137 to .00136 (meaning, are you absolutely sure that you didnt miss a zero here?)
> 
> I am not in the market, but if this information is not correct, there are going to be a LOT of hard conversations between CAs and Customers... and CAs have heard "I saw it online" a bazillion times and that means nothing to them.
> 
> ...


Just as a FYI, someone in the X3 forums just got a quote from a dealer, and was told the money factor on their quote was ".00127 after the msd's".

If we assume the dealer marked up the money factor the maximum, and then deducted for the MSD's (which would be a common dealer starting point) we get the following:

.00127 after MSD quote
.00049 (7 MSDs discount added back to the money factor)

We get .00176 as a money factor, which is right in line with what I would expect BMW to do which is have this months money factor be .00136 - .00176 negotiable between you and the dealer.

PLEASE NOTE, I have not recevied a quote with this. I am just reverse engineering someone elses quote and assuming fully marked up money factor. This may not be true, but I thought it interesting that the total comes out to .00001 difference, which would lead more credence to the fact that there was a missing zero in the quote above.


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## jjrandorin (May 8, 2013)

jiazzi said:


> What are the residuals for the 3 series on 12k? I know 10k is 66% but can't seem to find what it is for 12k.


2016 or 2017?

if 10K is 66 percent, that means 12K is 65 percent, and 15K is 63 percent btw.


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## ZoomVT (May 30, 2008)

It is 0.00136, confirmed from reliable sources. 

You can get the residual from the website.


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## jjrandorin (May 8, 2013)

ZoomVT said:


> It is 0.00136, confirmed from reliable sources.
> 
> You can get the residual from the website.


Thats what I was thinking, thanks for confirming it Zoom... that sounded like a large drop. Not impossible of course but would have been a big shift.


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## ZoomVT (May 30, 2008)

I think it's pretty weak considering the drop in residual for the 2016 (in particular the 5 series) but I knew it was a gamble


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## jiazzi (Aug 13, 2016)

jjrandorin said:


> 2016 or 2017?
> 
> if 10K is 66 percent, that means 12K is 65 percent, and 15K is 63 percent btw.


Thanks jjrandorin! It was for 2016.

Where on the website would I find it? I went to bmwusa.com > shopping tools > offers > leasing options > read through the fine print and didn't see it.


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## jjrandorin (May 8, 2013)

jiazzi said:


> Thanks jjrandorin! It was for 2016.
> 
> Where on the website would I find it? I went to bmwusa.com > shopping tools > offers > leasing options > read through the fine print and didn't see it.


You have to calculate it... take the Residual on one of the offers and divide it by the MSRP.

for example, The current X3 offer is

MSRP 39,945
RV of 25,565

25,565 / 39,945 = .64(XXXXXXXXXX) RV on this car is 64% BMW always lists residuals as 10k miles ( you can verify it by reading the details but its normally 10k).

If 10k is 64, then 12k would be 63, and 15k would be 61.


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## jiazzi (Aug 13, 2016)

jjrandorin said:


> You have to calculate it... take the Residual on one of the offers and divide it by the MSRP.
> 
> for example, The current X3 offer is
> 
> ...


:rofl: Of course! Thank you!


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## jjrandorin (May 8, 2013)

ZoomVT said:


> I think it's pretty weak considering the drop in residual for the 2016 (in particular the 5 series) but I knew it was a gamble


Come on man, you know that the residuals for the 2016s were completely unreasonable 

There is NO way that a 2016 should have a higher residual value than a 2017.. it just shouldnt happen because there is no way in [email protected]#$%[email protected]#[email protected] its true. (as in true value of the car, not true as in dealer not telling the truth)

They lowered the 2016 residual but raised the 2017s... maybe by december 2017s will be close to 2016 residuals now?


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## RichmondR (Aug 28, 2009)

MJBrown62 said:


> There is a national, albeit not-published, pull ahead program that runs from July 1st through September 30th. It's called the Lease Loyalty Program. It's a 3-payment waiver for eligible contracts that end 8/1 - 12/31/2016. Any vehicle pulled ahead is a required purchase by the dealer. That is the only portion that is "discretionary."
> 
> These are the only contracted vehicles that can qualify:
> 
> ...


Just a question about this please: do dealers who participate in this "Lease Loyalty Program" get a payoff quote from BMWFS that is lower than is available to the lessee? Otherwise what is the incentive for the dealer? I guess they can get that lessee into a new lease sooner, but not if the dealer needs to "take it on the chin" on the buyout of the old lease.

Reason I ask is that I know a lot of BMWFS leases are under water (buyout higher than market value) even during the last few months. Thanks.

BTW, no I am not trying to buy out my current 528xi lease more cheaply this way (smile). 528xi doesn't have enough oomph (smile). But if this is a path to get into a new lease on a 535xi or even 550xi, especially with the current lease rate/MF, I'm all ears ...


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## jjrandorin (May 8, 2013)

RichmondR said:


> Just a question about this please: do dealers who participate in this "Lease Loyalty Program" get a payoff quote from BMWFS that is lower than is available to the lessee? Otherwise what is the incentive for the dealer? I guess they can get that lessee into a new lease sooner, but not if the dealer needs to "take it on the chin" on the buyout of the old lease.
> 
> Reason I ask is that I know a lot of BMWFS leases are under water (buyout higher than market value) even during the last few months. Thanks.
> 
> BTW, no I am not trying to buy out my current 528xi lease more cheaply this way (smile). 528xi doesn't have enough oomph (smile). But if this is a path to get into a new lease on a 535xi or even 550xi, especially with the current lease rate/MF, I'm all ears ...


Dealers get a different payoff quote than the residual value. What exactly that is obviously varies between vehicles, miles etc, but I believe they get a quote that is closer to the cars actual value, rather than what its RV is.

Depending on the car, and demand, etc, it could be a good deal for the dealer, or not.


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## 328AL (Aug 16, 2013)

jjrandorin said:


> Dealers get a different payoff quote than the residual value. What exactly that is obviously varies between vehicles, miles etc, but I believe they get a quote that is closer to the cars actual value, rather than what its RV is.
> 
> Depending on the car, and demand, etc, it could be a good deal for the dealer, or not.


 I can give you a very specific example. On my car 2014 328i, the residual value is around $30000 dealers price is around $22,000, but they wanted for close to $19,000. Therefore, no one wants to take my car unless I'm willing to pay for it.


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