Current mileage: 23600
Maturity mileage: 30000
Effective miles per month: 833
Maturity date: 02/12/2022
MSD due (if any): 0
Cash due (if any): 0
Incentive for new lessee (if any): 0
Financial institution: BMWFS
Transfer fee: $500
Out-of-state transfer allowed (yes/no): Yes
Vehicle condition (accidents, tire wear, etc.), options, and other details: **Beautiful executive plug-in hybrid vehicle available for short-term lease. Meticulously maintained with a strong engine and electric motor - eligible for CA HOV stickers. Has wireless CarPlay, ambient lighting, heated seats, power liftgate, moonroof, Premium Package 2, etc. **
I picked mine up right around the same time so it’s likely 61%. But I will say that vroom, shift, etc are only offering ~$29k for well-optioned MY2018 530e — mine is a similar MSRP and I just checked buyouts last week and was offered $28,800 for $60,105 MSRP. Unless I’m misreading his sticker, it looks like OP’s MSRP isn’t $62k; rather, $61,195 so his residual is probably ~$37k.
I had thought today most leased cars (no accident, relatively low mileage) have equity at the end of the lease. Is it due to high RV or specific to this model? 530e seems solid and not super outdated.
Piggybacking on @jeisensc’s point above — ideally you don’t want any equity at lease end, because it would generally indicate that the manufacturer underestimated the residual at lease origination (ie they thought it would be worth less at lease term).
For example, if the 530e had a 50% residual instead of 61%, that would mean you’re eating a greater amount (11%) of depreciation in the form of lease payments baked into your lease agreement. The higher the residual, the more appealing the lease hack. The only way to combat poor residuals is with discounts and incentives.
The ideal hack combines high residual, low money factor, and lots of discounts and factory support to reduce the selling price. As soon as you drop one of those from the equation (ie a lower residual), it changes everything.
So to the original question about “wanting” equity — if you have equity in a leased vehicle right now, it’s probably because the manufacturer underestimated the residual (probably due to the current materials shortages since nobody anticipated a global pandemic would mess with our supply chain).
Understood higher RV helps lower depreciation cost and easier to get better lease that way. BMW high RV means no equity at the end of the lease, during normal time.
But that is exactly the question, even with BMW high RV, I’m still surprised a relatively low mileage, current gen car (+plug in) has negative equity, today.
I’d like to believe the market for this type of car is decent, despite not as strong as SUV. Pretty sure (without having any data), comparable Lexus SUV with same RV has equity, again just in current market. Hopefully this trend continues and leads to luxury sedan turning into best hackable deal in 2022
Yeah, honestly, I think PHEVs aren’t doing great in the secondhand market because they’re in an awkward space – the batteries are so small that they don’t offer a whole lot of value versus their gas equivalents. Truthfully, getting 18 miles on a charge is kind of pathetic, especially when it means you’re sacrificing range (smaller fuel tank). The only reason the 530e is a “better” buy than the 530i is because of the EV rebates. But the 530i would most definitely have a better resale value and probably appeals to more people than the 530e. I was really hoping that the battery would be pushing 30-40 miles of range by this point. Seems like PHEVs have made no progress since MY18.
That said, there’s a decent chance I get another one when mine is up next year. It’s still a good car overall. Plus, $4/gal at the pump is draining and I’ve already got the 220v set up in the garage.
I love the electric portion of it, that’s what I’ll primarily choose to drive (even tho the range is ~20 miles). I will admit, though, it’s nice to have the gas option as a backup.
Totally. That’s why I got the car, too. Having electric and gas is the best of both worlds so you can locally commute and do road trips. The 530e really is a great midsized sedan. The only thing you forfeit is some deep trunk space and fuel tank size due to the battery. I just really wish it had more electric range. 50 miles would be amazing, and I was kind of hoping they’d be close to it by now! It’s sad to see that electric range hasn’t really changed at all since mid-2017. If they can do a little better with the battery range, I think there’d be a much greater demand.
You’d have to apply through BMWFS, conduct the credit check, and pay for shipping the car to you. I have some shipping contacts I can leverage if you’re interested.
The “incentive” is just part of the standard LH transfer template…it doesn’t look like OP is offering an incentive at this point. It’s only been on here for 3 days and IMO no need or reason for an incentive.
