Automakers reported terrible sale numbers for April. With the Fed raising interest rates and the markets looking to roll over. Deals may get really crazy this fall if the trend of declining sales continue.
Here is a nice article showing them in graph form:
The best deals will be on ācarsā since those are in a slump. SUVs have been killing it and truck sales are remaining strong.
Exactly. Cars, especially midsize sedans, are lot poison right now.
i know the MF on BMW M240iās went up (0.00150) and as most on here know BMW dropped their MSD programā¦
Itās the same MF across the board for Bmw
Gotcha, i didnt know if it varied like Lexus. Thanks!
Now that i think about it, is the .00150 marked up? Last month i believe it was .00146?
No, thatās the base for May. Itās been slowing inching up every month recently. March was .0014, April was .00146 and May is now .0015.
The shoe hasnāt fallen yet. I donāt expect anything to be that amazing just yet.
PATIENCE
Watch Stock Market roll over before everything really crumbles. This includes housing (also in a 2nd bubble). I think it will be this Fall, but am happy to take a wait and see approach. I will likely lease a Hyundai Elantra Sport before then (waiting may save me $1k ? Mehā¦ )
On the luxury cars you should see a lot more though.
I hope the car market gets worse so I can get 12% off msrp on a 540x this winter.
I doubt we will see a 2008 housing bubble right now. The purchases so far are mostly cash or 20 percent down. No subprime contagion really. I think the auto securitization might dry up. Student loans and CRE could be an issue but we will see. I expect market 23k before any significant correction. Again, just my opinion.
Thatās not what Iāve been reading the last couple of months.
We are saying the same thing. Auto securitizations will dry up the liquidity for the auto market due to the reasons those articles state.
I wouldnāt be too sure. Cars are not houses. Theyāre easy to repossess and sell to the next person. Many sub prime lenders go through a bunch of steps to make sure that even if payments fall behind or are stopped, the vehicles are easy to recover.
Yeah, but Falcon. Who do you sell all these repossessed vehicles to?
Would have to be some heavy discounts. The only thing I see stopping this collapse in the economy as a whole would be a massive tax cut in September. If we donāt see that, then more likely then not the economy is going down.
Is this incremental MF increase every month is a known practice dor BMW or other brands ? If that is the case I have to bite a deal now instead of next month.
BMW is different from most other companies in that their MF is uniform for their entire lineup. I do not know their MF history, but I believe @MConte05 has a good spreadsheet tracking the MF.
@MConte05 can you predict next month MF of BMW based on your spread sheet?
I can predict itāll be pretty shitty. BMW leasing is looking less and less attractive by the month! Lower residuals and MF going higher.
I havenāt updated my sheet for this months numbers yet. Havenāt looked for them.
What if 2018 models show up ? Any chance that they raise RV of 2017 X3 model to sell them quickly?
X3 residuals are uncharacteristically high right now at 64% for 36/10. Very little chance of it increasing, IMHO.