# Say good bye to 0.9%



## adrian's bmw (Feb 14, 2003)

It was nice knowing 0.9% while it lasted. We will bid it farewell at the end of the month.

Lease rates will be going up as well, so if you are even remotely close to be on the fence, the time is now to jump in in with both feet first. Don't bother holding your breathe for a BMW September psyche. Yes, last month, we thought it was going away, but BMW kept the ball rolling. So yes, "Fool me once, shame on you. Fool me twice, shame on me." 

Now, you gotta pick from stock. Selection is still good. 

Head to your closest BMW center and take advantage of perhaps one of the best purchase and lease opportunities in years.

Good luck to all of you and happy miles!


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## wj94 (Jun 13, 2007)

Any idea if 08 lease rates will stay the same when 09 lease rates are announced? Or will it not be possible to lease any remaining 08's after Sept. 2?


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## Excitmnt94 (Jun 6, 2006)

amen Adrian...i have already started making calls.


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## sdbrandon (Mar 18, 2006)

I have been buying cars for over 30 years.

Guess what? There is always a sale and incentive to buy/lease somewhere.

2009 will be worse than 2008 for the car industry.

Besides. the difference between 0% financing and 5% financing is never has good as a steep healthly discount off MSRP. My friend just picked up an 08 X5, for $1500 below invoice.


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## philippek (Jul 31, 2003)

Wow. Just saw the bulletin.

We ain't kidding folks. This is more than fair warning.


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## wj94 (Jun 13, 2007)

Wouldn't it help to post the new rates? Seems like that would push more people to buy end of month now if the rates are that bad next month....I'm really curious about the lease rates for 08's though. I can see them being bad on the 09, but how much worse could it get for an 08?


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## adrian's bmw (Feb 14, 2003)

wj94 said:


> Wouldn't it help to post the new rates? Seems like that would push more people to buy end of month now if the rates are that bad next month....I'm really curious about the lease rates for 08's though. I can see them being bad on the 09, but how much worse could it get for an 08?


If they were posted, they'd put the fear of hell in you to get into a BMW center now and get a BMW this weekend.

And I meant rates for 08 models, not 09's.

See, the other high line brands are abandoning low APR/incentive based push selling, so why should BMW be the only one giving away what it's supposed to sell? Audi's out, Benz is out, Lexus is out, I mean, they're all pulling back heavy incentives.

It's not that rates are bad... or will get worse.. they'll just be in line with the market and the competition, rather than below market and lower than the competition.


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## tjmcgraw (Jul 22, 2007)

When I make a major purchase I like to crunch the numbers. I put together a speadsheet pricing out an '08 with .9% financing and an '09 with 3.5% financing. I added iDrive to the '09 as well as a few other gadgets like CA and Satellite Radio. I also made some modest guestimates as to the price increase as I didn't know it yet. Over the course of 5 years my savings will be over $7000. I went with the 08. The iDrive and gadges (and lots of interest payments) didn't seem like it was worth it. 

Thanks Adrian, can't wait to pick her up.


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## wj94 (Jun 13, 2007)

adrian's bmw said:


> If they were posted, they'd put the fear of hell in you to get into a BMW center now and get a BMW this weekend.
> 
> And I meant rates for 08 models, not 09's.
> 
> ...


Interesting....how do they expect to clear out the rest of the 08's if they put in heavy finance increases? Seems like they'd have a lot of stock sitting on the lot for a while.


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## adrian's bmw (Feb 14, 2003)

tjmcgraw said:


> When I make a major purchase I like to crunch the numbers. I put together a speadsheet pricing out an '08 with .9% financing and an '09 with 3.5% financing. I added iDrive to the '09 as well as a few other gadgets like CA and Satellite Radio. I also made some modest guestimates as to the price increase as I didn't know it yet. Over the course of 5 years my savings will be over $7000. I went with the 08. The iDrive and gadges (and lots of interest payments) didn't seem like it was worth it.
> 
> Thanks Adrian, can't wait to pick her up.


Thank _you_!! :bow:


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## sdbrandon (Mar 18, 2006)

wj94 said:


> Interesting....how do they expect to clear out the rest of the 08's if they put in heavy finance increases? Seems like they'd have a lot of stock sitting on the lot for a while.


Exactly. If prices go up there are less buyers so BMW will have to build less cars.

Either BMW builds less cars or discounts as they have for the last several decades. This is true for all car makes. So I am confused why we have to do it now or the world will end as we know it. :dunno:


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## adrian's bmw (Feb 14, 2003)

wj94 said:


> Interesting....how do they expect to clear out the rest of the 08's if they put in heavy finance increases? Seems like they'd have a lot of stock sitting on the lot for a while.


We did an excellent job moving what had on the ground now.

What's awesome is that BMW stepped up this month and last month to give us what we got and now, BMW doesn't have to pay ever more dearly come year end to move what should've been moved these past two months.

Yes, there was a lot of stock sitting around.. weren't most car manufacturer's with the exception of Honda and Mini?

It's been a blessed shot in the arm and it's worked. There's still time to jump in while you can though. We're gonna welcome any of you with open arms and a 0.9%/lower lease rate carrot, to boot.


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## wj94 (Jun 13, 2007)

I understand that a lot of stock has cleared out, but from calling around it seems that plenty remains. I get that they won't have to build as many cars since they're lowering demand (by raising prices), but I still don't see how they will sell the thousands of remaining cars if they don't offer any financial incentive versus an 09.


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## JonInSanDiego (Feb 20, 2004)

Clarification....do I have to take delivery by 9/2 or can I simply have the car reserved by that date? My previous car was totaled and the insurance claim should settle out by early next week. BMW told me to wait until that happens before I buy the next car. Basically, can I go in and put a deposit on the car and then take delivery next week and get the same terms?


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## Ascendant (Jan 20, 2008)

Don't suppose you have an idea about the CPO rates for next month?


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## flowbmw (Aug 31, 2006)

BMW usually runs out of the current model years' inventory when the new model years start arriving. I've worked for other manufacturers and BMW does a MUCH better job than anyone else in this regard. There isn't going to be too much overlap.

The economy has been slower than normal lately, sure, but the 0.9% has put a huge dent in the "excess" inventory. The rates are going away, and so are the available cars. 

Ed


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## philippek (Jul 31, 2003)

JonInSanDiego said:


> Clarification....do I have to take delivery by 9/2 or can I simply have the car reserved by that date? My previous car was totaled and the insurance claim should settle out by early next week. BMW told me to wait until that happens before I buy the next car. Basically, can I go in and put a deposit on the car and then take delivery next week and get the same terms?


You must contracted on or before 9/2 to take advantage of August's rates. Those rates are not lockable.


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## vincec (Jul 28, 2008)

adrian's bmw said:


> It was nice knowing 0.9% while it lasted. We will bid it farewell at the end of the month.
> 
> Lease rates will be going up as well, so if you are even remotely close to be on the fence, the time is now to jump in in with both feet first. Don't bother holding your breathe for a BMW September psyche. Yes, last month, we thought it was going away, but BMW kept the ball rolling. So yes, "Fool me once, shame on you. Fool me twice, shame on me."
> 
> ...


heh, glad i purchased the car 2 weeks ago... makes me feel great knowing i got the best terms and conditions.

i was supposed to buy in july, but gambled and took the risk the car i wanted and the rates would carry over for august since they weren't really giving deals in sept.

bought my car 2 weeks ago because i didn't want to gamble twice hoping for a bigger discount and the rate to carry over in sept as the car i wanted might not be there, or the rates wouldn't be there for sept.

so to all of you sitting on the fence, i know the feeling as i recently went through it... just jump off and purchase the car before you miss out!


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## vincec (Jul 28, 2008)

wj94 said:


> Interesting....how do they expect to clear out the rest of the 08's if they put in heavy finance increases? Seems like they'd have a lot of stock sitting on the lot for a while.


the rates before were 3.9 which is still lower than you can get at your credit union.

i know usaa and other military credit unions go lower, but the general public can't access them so i don't consider them.

starone who i used before usually has the lowest rates in norcal for the general public (just need to be a santa clara county resident to become a member) and their lowest rate is 4.9

so even at the 3.9 rate they will still be able to move inventory.


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## Z4luvr (Jun 23, 2006)

wj94 said:


> I understand that a lot of stock has cleared out, but from calling around it seems that plenty remains. I get that they won't have to build as many cars since they're lowering demand (by raising prices), but I still don't see how they will sell the thousands of remaining cars if they don't offer any financial incentive versus an 09.


You are thinking about just the US market rather than the global picture.

The weak dollar has killed BMW's margin in the US over the last year. BMW is shifting some production to other markets and away from the US. If you price a BMW in Canada or the UK, they have a lot more room to reduce prices and make a better profit. While they don't want to give up on the US market, they can shift production elsewhere, reducing US supply and allowing them to hold the line on price better. In order to do this, they had to clear out the old inventory as best they could.


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## vincec (Jul 28, 2008)

philippek said:


> Wow. Just saw the bulletin.
> 
> We ain't kidding folks. This is more than fair warning.


what else does the bulletin mention? will the auto transmission credit carry over or is that gone as well?


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## philippek (Jul 31, 2003)

vincec said:


> what else does the bulletin mention? will the auto transmission credit carry over or is that gone as well?


Looks like option credits live to see another month. In general, money factors are going up, residuals are crashing (particularly on 24 month terms), and finance rates are going up 1-4 points, depending on model. Bottom line: I've got 5 days to get rid of 400 cars :behead:


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## Lynstermkiii (Jan 10, 2007)

Placed order on Aug. 8th. currentlt en route to dealership. I am keeping my fingers crossed. By the way, thank you Adrian & Philippek. On order 4.8i Alpine white, dark bamboo, ZSP,ZTP,ZPP,ZAV,ZPS,6FF,217,4UB,456,610,322,2LE,ZRC,ZCW,316,328,aero kit & roof base support


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## pilotman (Feb 2, 2006)

I predict incentives will return in a few months or so.

BMW sales will continue to drop, and even if BMW is able to perform well over the next 6 months by clearing out old inventory and limiting new production, the fact remains that they will probably be selling far LESS cars and making LESS money.

Isn't there a statistic that something like 60-70% of BMWs were leased?

Their high sticker prices combined with average at best financing rates, plus crappy residuals and low MFs on leases will surely drive away some buyers, me included.

I will do a short term lease on something else until BMW improves things for me....I love the cars but refuse to pay through the nose for them.


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## adrian's bmw (Feb 14, 2003)

JonInSanDiego said:


> Clarification....do I have to take delivery by 9/2 or can I simply have the car reserved by that date? My previous car was totaled and the insurance claim should settle out by early next week.  BMW told me to wait until that happens before I buy the next car. Basically, can I go in and put a deposit on the car and then take delivery next week and get the same terms?


No, you gotta sign on the dotted line and the car has to be retailed as a sale to BMW by 9/2.


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## adrian's bmw (Feb 14, 2003)

pilotman said:


> I predict incentives will return in a few months or so.
> 
> BMW sales will continue to drop, and even if BMW is able to perform well over the next 6 months by clearing out old inventory and limiting new production, the fact remains that they will probably be selling far LESS cars and making LESS money.
> 
> ...


Sure, there will be incentives, but I think they'll eventually be light and not heavy due to the tightening of the production spigot.

Indeed, IMO, BMW will sell less cars in the US, but make up for that in other markets (Russia, India, China).

There used to be a lower lease penetration years ago, but due to strong pre-owned demend, the high residuals and reliably predictable high resale values helped BMW sales growth over the years. It made sense to increase the lease penetration because you knew you'd have a strong pre-owned market to back up those high residuals. The problem this year is that used car prices collapsed overall with SUVs leading the way. If you don't have a strong pre-owned market, you can't support the new car market with strong leases. That's why if you wean yourself a bit from leasing and take a more balanced ownership/leasing ratio, less supply, then the resale vales and residuals will creep back up.


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## ///M Rakete (Apr 1, 2002)

philippek said:


> Looks like option credits live to see another month. In general, money factors are going up, residuals are crashing (particularly on 24 month terms), and finance rates are going up 1-4 points, depending on model. Bottom line: I've got 5 days to get rid of 400 cars :behead:


I would expect '08 residuals to crash at the end of the year and trunk money to be thrown in if there is any stock to move.

What about '09 numbers?


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## RaysMD (Dec 26, 2001)

there's always a better deal around the corner. unless you're dealing with real estate or one of a kind items.


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## mapezzul (Jun 14, 2005)

http://www.bimmerfile.com/2008/08/28/september-lease-rates-to-jump/


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## wj94 (Jun 13, 2007)

mapezzul said:


> http://www.bimmerfile.com/2008/08/28/september-lease-rates-to-jump/


According to the PDF on that link the only real change on the 335 leases is that the MF went up by .0004 on the coupe....stayed the same as last month on the sedan. Residuals appear to be the same.


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## mapezzul (Jun 14, 2005)

wj94 said:


> According to the PDF on that link the only real change on the 335 leases is that the MF went up by .0004 on the coupe....stayed the same as last month on the sedan. Residuals appear to be the same.


residuals are down... basically anything in *BOLD* is a change from last month.


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## wj94 (Jun 13, 2007)

mapezzul said:


> residuals are down... basically anything in *BOLD* is a change from last month.


None of the 36 month rates changed though from what I can see on the 3 series. MF on the coupe makes a small difference, but no the $80-100/month people are talking about.


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## mapezzul (Jun 14, 2005)

wj94 said:


> None of the 36 month rates changed though from what I can see on the 3 series. MF on the coupe makes a small difference, but no the $80-100/month people are talking about.


There are other models besides the 3 Series, and other terms than 36 months:rofl:


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## wj94 (Jun 13, 2007)

mapezzul said:


> There are other models besides the 3 Series, and other terms than 36 months:rofl:


I know, but it sounded like things would be across the board. I guess not - good news for me. :thumbup:


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## bmwKbiker (Nov 5, 2006)

mapezzul said:


> http://www.bimmerfile.com/2008/08/28/september-lease-rates-to-jump/


If you want to see the shifts in BMWs strategy play out.

Run a lease calculation (24/30) on a M3. With the residuals just above 50%. Depereciation on shorter lease terms is at least $1200 (24mon.) Add another >$200 for rent and a low optioned M3 lease is approaching $1500/[email protected] 36 months, starts getting better but it is still way north of 1k.

Basically, BMWNA is saying we don't want write short term leases on M3s.


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## BryanH (Jul 23, 2008)

If you ask me, there's a lot of dealer hype on this forum for the 0.9% financing stuff. Before August it was "no way this deal is coming back after July!". Why wouldn't it have? It was pretty much one of the last months of the 08s. I believe .9% financing will carry on with whatever is left on the lots until it's gone. Just seems like common sense. Why would you offer a crappier finance rate if you still have 08s to clean up on the lot?

I think a lot of dealers on this forum just want to spread the antsy-ness to make you jump on the deal. Just my 2 cents


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## New Motors (Mar 24, 2008)

BMW Financial Service has posted the rates for September and October. And for the most part all the rates have gone up. 
And I can agree with you the the rates should stay the same with only a few months left in the year. 
Think of it the other way, if the CA's did not say a word about the rates and they expired, would that be better? We only post what is given to us from BMWFS. If rates change midstream, well, we can't predict that. But with what we where given last week, the rates have gone up. 

Early bird gets the worm!


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## dan74 (Jan 28, 2008)

New Motors said:


> BMW Financial Service has posted the rates for September and October.
> /QUOTE]
> 
> So what is the APR for 2009 328xi. BMW site doesn't have anything yet.


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## Excitmnt94 (Jun 6, 2006)

the '09 residuals are not out yet...probably mid-september. No sales support on MY 2009 cars as far as financing or anything else has been announced.


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## New Motors (Mar 24, 2008)

94- True. The only things posted are for 08's


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