My personal experience with BMW dealerships in SoCal is that dealers are looking to maximize profits on existing inventory. At least in this early phase. I plan to stay in touch with local dealers as this progresses. But time will tell.
Not out of touch with reality but aggressive nonetheless. Have done a few at that this month.
I noticed people here in the Chicago area are driving at least 20 mph over the speed limit on normal roads, and way over on highways. Usually there is speeding, but this type of excessive speeding by most I have not usually seen.
Mice will play when the kitty’s away.
My Volvo S90 lease is up. No offer to expend it. When I spoke to them previously they said no way
Did you try and submit a 2 month extension request online?
Great thread! It’s a bummer BMW isn’t allowing lease assumption transfers!
Had a question about getting a new car during this coronavirus pandemic. If market pressures continue to press down, should I expect car prices to decline enough to wait you think? In a down economy, are dealerships more likely to sit on new inventory for longer and wait it out or cut prices to turn over inventory, even if it hurts the bottom line?
Some friends have been saying that I should wait it out because in a month or two, dealerships will be practically giving cars away for peanuts. Thoughts?
Your friends must be smoking something, and it ain’t peanuts.
Have you ever seen dealerships “give cars away for peanuts”?
I’m holding out till I get an 2021 E63 Wagon for $11k, but that’s just my long game.
You would likely have to have a pretty sick scenario to get to the point where dealers are selling cars for peanuts. It’s likely if it comes to that then you won’t be in the market for a car anyway. Think world war levels of chaos I would say.
The fact is no one really knows what might happen. We have not faced a pandemic like this in the modern era. You’re right that dealers could be stuck with a lot of inventory if people aren’t buying. But also keep in mind, as discussed above, automotive brands aren’t manufacturing. Right now I think everybody is in a wait and see mode. So I don’t think anyone is likely to scoop up super deals as of the moment. If the model year progresses, and inventory continues to build, I’ll bet we’ll see some pretty good rebates. But if that puts pressure on residuals then again - as written above - that may not be great for leasing but could help buyers. Coming full circle I think the post at the beginning of this blog framed everything in fairly good perspective.
I think it really depends on the area.
2030 probably, with a salvage title.
Do you think that manufacturers will listen to offers for lease-end purchases?
I have an Audi A4 lease ending in July. The residual buy back price is close to retail.
My plan is to to let them take it back (it’s in perfect shape and under mileage) but would buy it for trade-in value which is probably $5k less than the lease contract. Would they entertain such a cash deal?
Maybe. You might have a leverage
Chase, who financed my 2017 Jaguar XE lease which will come to term at the end of May 2020, has extended my lease for up to an additional 6 months. They are not requiring that I do anything to take advantage of the extension, not even give them notice of what I intend to do, other than keep paying at the current lease rate each month and turn the car in whenever I want. Either at the end of the lease in May or at the end of any month up to 6 months later than May.
You need friends that understand supply and demand.
Not any time soon. At least not for BMW. April programs that start 04.06 actually even worse than March. May noone know, but you would not hold your breath.