Where is auto market headed?

I heard this from John Davis of Motorweek fame (aka a very reliable source). It was reported as good news as the expectation was for a larger drop.

I posted his comment already, but this is a more appropriate thread -
I think you guys are going to have a tough time getting leasehakr worthy deals from BMW for the rest of the year. We just got off the phone with our dealer rep and rumor is that 2020 X3s and X5 might stop production and cars (3, 5, 7 series) that were in 111/112 status were pushed back to 105 (no allocation). We were told to expect a bulletin later today.

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https://www.yahoo.com/finance/news/used-car-prices-plummet-deals-114601854.html

USA Today article on yahoo

Its gonna be interesting to see how this plays out with X3/X5/X7 versus 3/5/7 series. The Xs are all made in South Carolina while the sedans are made in Germany. The biggest BMW plant, in Dingolfing, just reopened with very limited capacity. Spartanburg reopened earlier but again with limited capacity. My understanding is that Spartanburg can’t build cars without parts from Europe while Europe is not nearly as dependant on parts from Spartanburg.

Either way, I agree with you that there is gonna be a shortage of new vehicles for a while which is gonna likely gonna hurt lease deals on a macro level.

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Wow. Sickening.

They should get time for car jacking.

Decided this is the best place to share this goofball news

Broke Hertz trying sell special edition, automatic Vettes

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https://www.bizjournals.com/philadelphia/news/2020/05/19/santander-consumer-agrees-to-550m-settlement.html

Wow, Santander in trouble for issuing subprime auto loans who would have guessed <— sarcasm

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Get them… Hack of the decade lol

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They were a rough dealership to try to deal with too. Some amazing deals came from them, but they’d never return my calls/emails while I was trying to shop there, but would repeatedly cold call me to see if I was still interested in a vehicle.

I’ve been at so many dealerships in Midwest these days to lease a 3 series (12000 miles/yr) with a reasonable price. Non of them were willing to lease their cars with MSRP of $52-62K (New 2019 or new 2020) for less than $560/month!
Is it a tough market? it’s a bad time of the yr? or it’s just the midwest in which NO dealer is flexible about their prices?

Your feedback/discussion will be helpful

Cheers

$560/mo for a $62K car at 12K mi per month doesn’t sound that bad to me, but YMMV.

There’s already been plenty written about this, including in this very thread.

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INB4 1% rule. It varies, don’t go off MSRP.
@Ride-the-bus You can get a 5 series from @kubikdanon for that price, he’s midwest too!

0 down includes loyalty.

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Thanks for the feedback. I feel the deals are not as reasonable as I expected. Got a fantastic deal for my wife’s X2, maybe that spoiled me.

Not reasonable or not what you expected - big difference

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Your comment totally makes sense. As I said, non of the dealer were willing to lower their price on 3 series. I’m surprised that they all ask for >$550/month for every single car they have in their lot.

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the latter: It’s not what I expect!

Might be more productive if you create a new post (if you haven’t already) to discuss the deals you’ve been offered, since what you want to discuss is way more specific than what this thread is for (even if there’s some overlap).

Do they not meet your expectations because the dealer won’t offer an adequate pre-incentive discount/are marking up mf, because the current incentives/rv/mf aren’t what they were when you developed your target price, or because you didn’t calculate what the vehicles should lease for given your situation and are just comparing monthlies against other random deals without the proper context?

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