If the car has less than 5000 miles it’s the regular mileage only adjustment.
I can confirm we received our first statement and it was correct.
Maybe it’s regional?
two dealers were in Seattle and the other was in Oregon. all gave varying answers and I did mention the more than 5k miles
Is your car <> 5k miles?
just got a call from the BMW manager that said they had no idea of the change in residuals.
He said that starting in March cars over 7500 with be hit with 4% reduction in residual. 6% for over 10k miles
My car had 5500 miles. Can’t tell you for sure what’s going on here other than what I’ve shared here and the fact that my lease was written under the new terms and accepted by BMWFS.
If dealers aren’t using it, I imagine lease contracts would be rejected by BMWFS.
I am reviving this thread as I have not seen the issue of what is the residual drop for a loaner above 5000mi these days of 2019.
Is it 4% down for 5001-7500mi on top of the mileage adjustment?
Is a 6,500 mi loaner eligible for its model year lease support?
If not, can be such car still leased but the dealer has to do a significant discount to make it worthwhile, i.e. replace the lease incentive?
Above 5,000 miles -7% from residual
Above 7,500 miles -9% from residual
Yes typically it is discounted much higher than a regular demo/loaner under 5,000 miles
1 Like
And once over 5000 miles it no longer qualifies for incentives. Just straight discount.
1 Like
Is that the updated figures as of Jan? Wasn’t it 4 and 6 before?
it was 4% & 6% for any vehicle inventoried before 12/1, but it is now 7% & 9% for the foreseeable future
2 Likes
What is inventoried, what date I shall look on Carfax for ?
If the car was purchased and placed in the dealerships possession before that date. Example: Vehicle was purchased from auction 11/15/2018 received in dealer inventory 11/28/2018. Not sure if that would show up in Carfax.
2 Likes
Thank you for your informative comments.
Is this in Carfax
Listed as a manufacturer vehicle
Vehicle sold at auction
before 12/1 a sign that this would qualify as a lease candidate ? What is manufacturer vehicle ?
I’d recommend simply calling the dealership, no one can know what the actual dates are except them
1 Like
Yes this is true - as a broker I sell a lots of BMW demos and most often the ones under 5000 miles have the better lease. The discount has to be so huge for it to make up for miles over 5000 and typically you don’t get there. Also sometimes you can beat a demo price on a brand new car if the programs are not all good and the dealer is willing to go very deep. In LA area a couple of dealers are at times more so below the market so they can beat demo deals of other dealers!
1 Like
A real eye opener, thanks.
This is for cars under 5000 miles on them –
I spoke to the finance person at a BMW dealer today and he told me that any lease has to account for any miles over 500 in the lease numbers.
But another dealer didn’t consider the miles on the loaner and didn’t adjust the RV. It is very confusing.
Also, this might be a dumb question but what is the multiplier value (A * miles, what is A ?) that is used to reduce the RV ?
Thanks.
1 Like
He’s wrong. And to answer your question, it’s $0.25 per mile
1 Like
Thanks. And who is wrong ? Dealer 1 or 2 ?
Sounds like both. Residual takes a hit at 5k miles
1 Like