Looks like discounted RVs are coming back?

Just like during the financial crisis, looks like captives such as BMWFS are offering discounts off RV to prevent tons of underwater cars coming back

https://leasehackr-assets.b-cdn.netoriginal/3X/8/2/8276efba8f83485093fc9a5f6f50b04317596816.jpeg

4 Likes

Oh interesting!

I’ve been getting this question a lot this week regarding April’s program.

No one knows, but my feeling is if they drop the MF to be more in-line the drop in interest rates, residuals will need to come down as well.

Who knows…

2 Likes

BMW has been offering this for about 2 years now.

So there giving 6700 discount to buy the car, instead of turning it in?

Yup …(complete sentence)

That’s a 17.5% incentive to purchase, wonder if this makes flipping to Carvana/Vroom a possibility?

Most likely just in line with their prices. But obviously depends - low mileage gets the same discount from BMW, but will result in higher offer from carvana/vroom

Man, I was just thinking about it yesterday. my 5 series payoff shows $31k. and I was like who the heck would pay that…

1 Like

Sales tax would eat a lot of that

1 Like

I thought the residual is the residual is the residual

I just checked my daughter’s 2017 Elantra Limited which is up in July, still showing the contracted amount, $12,200. She’s considering keeping it, since she only 2/3 into her 36k miles, and car is in great shape and there is nothing current at the $165/mo w/ zero DAS we got on this back in 2017.

That’s always been the mantra. But then again maybe this is more specific to BMW and their RV’s are inflated which make for all the great lease deals we’ve seen, and this could be BMW saying we don’t want all these returns sitting in their lots.

BMW took something like a ~$150 million hit during the last recession from underwater cars

1 Like

The car the offer screen shot is for (my car) only has 11,000 miles on it out of the 36,000 allowed under the lease, so it’s for sure worth more than BMW was expecting it to be. BUT it looks like they don’t know that and are applying the $6700 discount thinking the car has closer to 36,000 miles on it.

that number looks surprisingly low…

They do it based on the original contract mileage. I returned S60 with 17k on 36k lease and the dealer buy out was still only around $4.5k lower

Yeah they don’t know your current mileage and I doubt they even track what it was at the last service appointment

How did you access this screen? Can’t seem to find it on the BMW FS website.

Same with my S90

You need to click the “Download payoff form” button to get a PDF which has the table.

1 Like