Regarding X7 sales, the sales slump is mostly regional and will probably spurn some incentives towards it as well as the fact that everyone who absolutely positively needs to have one already picked one up.
Personally I’d only take one if I could pick it up for the same price as a comparatively equipped X5.
A single month sales dip has nothing to do with any residual value, let alone 36 months out. There’s no way BMW will take the risk of a 60% RV on a high MSRP X5 - maybe on an X5M but not an M50i. BMWs depreciate like a falling rock, it’s a lease brand all the way - there’s too much supply in the used market to keep the prices up.
If I was in the market now, I’d be aiming to find a dealer willing to do 15% off sticker before incentives on an X7, probably a loaded up one (more gross). We just passed monthend, but end of Sept there’s likely to be someone wanting to move 19s out (and maybe regions with a glut of inventory will get trunk money assistance from BMW). In the northeast, there’re hundreds of 19 X7s on the lots - that’s a lot of high MSRP cars to move in short order.
I was commenting on your statement that X7s are selling well; simply not true. They are down on a national level nearly 40%. As for the residual, im surprised a week old car and a 6 month old would have the same residual; 59% is much higher than i thought on a 2019 x7…feel like ive seen mid 50s pretty consistently.
They have been selling well since release. Perhaps last month (I take it you mean July as Aug isn’t out yet) there’s a drop but it’s not a trend yet. Ultimately it doesn’t matter how you and I interpret the sales situation, but how BMW and the dealer network does. As I mentioned, the biggest bargaining chip at the moment is that 20s are arriving on the lots and so 19s need extra incentive to move. Also once the new GLS goes on sale later this year, I’d expect more X7 discounts as well.
RV is just another knob that BMWFS can tweak, it need not be a strict future value view. I’ve even seen the opposite from BMWFS in the past - they’ll have higher RV for outgoing model year, presumably to support moving inventory.
Fact of the matter is though that at their price point they’re just not going to move as fast and frequently as the bread and butter cars like X3’s, 3 series for example.
I was able to get 8% on a custom order m50i. I did not push the negotiations as I was ok with that number. 9-10% may be able to be had but it wasn’t worth it to me to haggle over $900.
I’d have to check with different dealers regarding allocations and their willingness to dip into holdback so such a service would be more than your average in-stock deal and thus would require a retainer as well as a substantial deposit once order is placed.
That was my point saying I was fine with 8% given the hassle/waiting/haggling/‘retainer and substantial deposit’, etc. While I like getting great deals on cars if you’re worried about an extra $1-2k on a $95k car then maybe that’s not the car for you. I did insist on getting base money factor plus all rebates so I didn’t give it all away