Calculating BMW Loaner Residual

We all know now that
BMW’s above 5k miles take -7% residual hit, above 7.5k take -9% residual hit and are not eligible for any incentives

So to move them, dealers probably have to offer deep discounts on the MSRP. My question is –

Does the dealer take a hit and offer that discount from their pocket ? Or BMW helps / incentivizes the dealers to offset losses ?

Also, is there a way to figure out what a -7% RV hit equates to dealer discount (%) ?

The only way I’d lease a car with over 5k is if it was less than a car with less than 5k, so I’d look at it that way. Probably looking for a 30% plus discount, especially considering there are no incentives.

Maybe @Samson can throw some light here.

So above 5k,
is it just the -7% residual hit OR
is it -7% plus the residual decrement because of mileage adjustment ?

-7% + the mileage adjustment. first 500 miles are free while then it is a calculation of:
Miles 5,xxx * 0.25

Dealer takes the hit. BMW offers no help whatsoever for leases on vehicles over 5k miles. You can see that with the removal of incentives PLUS the % hit that adjusts the residual downward.

Even with that, @Samson knows how to make the deal :wink: on factory demos in this mileage bracket.
If only MSDs would be allowed for these cars like in the past (read on Bimmerfest this was the case just some time ago)

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Any advice/help would be greatly appreciated?

What do you think about this loaner:
2018 BMW 330i xDrive Sedan
9,400mi
Listed at: $37,000

What do you think I can get the asking price down to? After reading the thread above, I understand that residual rates go up, as mileage does. What would the residual rate be for 12k/36 & 15k/36? What current incentives (if any) would be applicable? The OL mentioned in another thread? Any others?

Do you think this is just a stupid idea? I’m really new to leasing, and leasehackr. I’m still learning, so take it easy on me! Again, thanks in advance for any advice.

No incentives of any kind above 5k mi afaik

Check Dave or Samson’s threads for the formula for RV adjustments

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