Dealer Inflate Residual

I’ve got a dealer I’m speaking with to lease a 36/10k on a BMW M5.

The residual I’ve looked up on the internet is 60%. He’s not willing to come down on the selling price anymore but he’s willing to increase the residual to 62%. I thought the residual was set by the manufacturer? How is he able to do this legally and how will I get burned if I accept this deal?

The RV is set by BMW dealer can’t fudge that.

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That’s what I figured. I’m assuming there’s something sketchy going on here?

Giving you a $1000 out of his own pocket would be sketchy. This just shouldn’t be possible.

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There is likely a misunderstanding

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As a dealer they cannot change the residual. The contract would be outright rejected by BMW.

My thinking is that he’s doing this to get me into the shop and then change the terms when I get there to what he had before.

Just tell him straight up that the residual cannot even be changed since it is set by BMW.

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Unless he is dropping the mileage on the lease?

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It’s easy for him to inflate the residual by 2%. He just changes from a 15k per year lease to a 12k per year lease.

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OP stated the terms as 36/10k though. Not sure if BMWFS allows 5k/yr for the M5.

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Good point, I didn’t catch that

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7500 is the minimum, and it’s only available on the 7 series and i8 IIRC. It’s not available to all cars.

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You can get 7,500 on any car now.

As everyone else said they cannot change the residual.

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When did they change that?

When bmw realized they had too much inventory and needed to start leasing out to 22 year olds at 50% debt to income

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Is this true? Since when?

The 7500 miles only available to 6 series, 7 series, 8 Series, i8 and X7. (At least in CA).

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FL thing I guess :man_shrugging: I can do 7500 on any car.

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@AB26 you need to be registered as either a dealer or a broker.

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