This is going to hurt- trade in values.
11-29-2008, 11:12 AM
#106
Race Director
$6k off MSRP for a new MINI Cooper S????!!! Where are you seeing that? I spec'ed out a nicely equipped '09 at only $27k and change (the way I'd order one), so that'd represent more than 20% discount off list. Even if it's only on the leftover '08, that's still some hefty savings on what's considered the king of residual value.
11-29-2008, 11:16 AM
#107
Newbies Hospitality Director
Lifetime Rennlist
Member
Lifetime Rennlist
Member
Join Date: Apr 2005
Location: Winston-Salem, NC
Posts: 18,084
Likes: 0
Received 34 Likes
on
33 Posts
Okay, I'll bite. This is an easy one.
The car you leased via BMW is NOT worth the $36k set by the bank. They don't want that car to come off of lease. -They REALLY don't want that car-
That car is worth around low $20's. They will negotiate with you- and if they don't. Tell them 'thaks but no thanks'. -There are certain banks STILL not negotiating (aka Huntington Bank - ********!!)
I just bought a BMW 550i for one of my clients w/ 32k on it for $28k off of lease. He's getting it for about $32k with everything done to it. That 528 isn't worth even remotely close to the 36 residual value.
Next?
My forecast? I think it'll sell, albeit slowly at first. But it'll get good visibility and the key is getting it in folks hands to drive to experience it.
I personally believe it's similar to the Cayenne. Much better to drive one then to just look at it. But I think from the pictures; that it's much better looking then the Cayenne.
So far my fav cayenne is the GTS. Rawr!!
The car you leased via BMW is NOT worth the $36k set by the bank. They don't want that car to come off of lease. -They REALLY don't want that car-
That car is worth around low $20's. They will negotiate with you- and if they don't. Tell them 'thaks but no thanks'. -There are certain banks STILL not negotiating (aka Huntington Bank - ********!!)
I just bought a BMW 550i for one of my clients w/ 32k on it for $28k off of lease. He's getting it for about $32k with everything done to it. That 528 isn't worth even remotely close to the 36 residual value.
Next?
My forecast? I think it'll sell, albeit slowly at first. But it'll get good visibility and the key is getting it in folks hands to drive to experience it.
I personally believe it's similar to the Cayenne. Much better to drive one then to just look at it. But I think from the pictures; that it's much better looking then the Cayenne.
So far my fav cayenne is the GTS. Rawr!!
The OPs numbers were a bit confusing because he did not use the "$" sign to indicate the value, but I think he menat after 3 years with 36K MILES on the clock, it would be worth $28K. Then he wanted to know if they put 45K MILES on it in 3 uears, could they buy it in the low $20's at lease end.
But I could be wrong.....
11-29-2008, 11:49 AM
#108
Banned
Thread Starter
Join Date: Aug 2005
Location: I'm not sell'n anythang... much..
Posts: 8,215
Likes: 0
Received 0 Likes
on
0 Posts
The mileage is arbitrary; you can't put more miles on it and say "hey, my cars worth less" to the bank.
The banks only concern is that if you're buying it; at what price past the actual residual value.
Of course you're is worth less; but you can't expect the bank to say "Oh, yeah! You're right!! Here's $xx more dollars off mr customer!"
lmao
The banks only concern is that if you're buying it; at what price past the actual residual value.
Of course you're is worth less; but you can't expect the bank to say "Oh, yeah! You're right!! Here's $xx more dollars off mr customer!"
lmao
11-30-2008, 12:06 AM
#109
Rennlist Member
.....unless you think that the car manufacturers construct leases so that they eat all the depreciation so that you stay whole.
errrr...no.....
11-30-2008, 12:56 AM
#110
Rennlist Member
i didnt say it wont depreciate. but deprectiation on something i own and can sell at the end of three years is more attractive than leasing.....
.....unless you think that the car manufacturers construct leases so that they eat all the depreciation so that you stay whole.
errrr...no.....
.....unless you think that the car manufacturers construct leases so that they eat all the depreciation so that you stay whole.
errrr...no.....
11-30-2008, 01:07 AM
#111
Rennlist Member
. . . if your car is worth more than the residual price of the lease term. But what if your car is worth $50k after three years at the time you sell and a lease had a residual of $55k, than it's going to cost you $5k more for the period you kept your car. Sure you could just keep it like every says, cause "I don't really need the cash", but that's not part of the lease vs. buy comparison over 3 years.
11-30-2008, 09:04 AM
#112
Rennlist Member
I just experienced the reason why leasing worked for me when my 2006 MB 4matic lease ended.
Lease was for 39 months, 15k miles per year (48750 allowed and used). The MSRP was almost $58K. End of lease residual/buyback was $34,400. With 60 days of the end of my lease, MB Credit offered the car to me for $29K. 45 days the offer was lowered to $25. 20 days the offer was $22,900 with a request that I call them before I bring it back. Final offer was $22,000.
No - did not buy it as the warranty was almost over, the car needed servicing (brakes never replaced - hard for me to beleive too) and,most importantly, I want something else.
So, if I bought it and tried to sell or trade it in, I think I would have incurred a pretty heavy financial hit.
Buy cars that you intend to keep for quite a while. This stuff rarely appreciates.
Lease was for 39 months, 15k miles per year (48750 allowed and used). The MSRP was almost $58K. End of lease residual/buyback was $34,400. With 60 days of the end of my lease, MB Credit offered the car to me for $29K. 45 days the offer was lowered to $25. 20 days the offer was $22,900 with a request that I call them before I bring it back. Final offer was $22,000.
No - did not buy it as the warranty was almost over, the car needed servicing (brakes never replaced - hard for me to beleive too) and,most importantly, I want something else.
So, if I bought it and tried to sell or trade it in, I think I would have incurred a pretty heavy financial hit.
Buy cars that you intend to keep for quite a while. This stuff rarely appreciates.
11-30-2008, 02:31 PM
#113
I just experienced the reason why leasing worked for me when my 2006 MB 4matic lease ended.
Lease was for 39 months, 15k miles per year (48750 allowed and used). The MSRP was almost $58K. End of lease residual/buyback was $34,400. With 60 days of the end of my lease, MB Credit offered the car to me for $29K. 45 days the offer was lowered to $25. 20 days the offer was $22,900 with a request that I call them before I bring it back. Final offer was $22,000.
No - did not buy it as the warranty was almost over, the car needed servicing (brakes never replaced - hard for me to beleive too) and,most importantly, I want something else.
So, if I bought it and tried to sell or trade it in, I think I would have incurred a pretty heavy financial hit.
Buy cars that you intend to keep for quite a while. This stuff rarely appreciates.
Lease was for 39 months, 15k miles per year (48750 allowed and used). The MSRP was almost $58K. End of lease residual/buyback was $34,400. With 60 days of the end of my lease, MB Credit offered the car to me for $29K. 45 days the offer was lowered to $25. 20 days the offer was $22,900 with a request that I call them before I bring it back. Final offer was $22,000.
No - did not buy it as the warranty was almost over, the car needed servicing (brakes never replaced - hard for me to beleive too) and,most importantly, I want something else.
So, if I bought it and tried to sell or trade it in, I think I would have incurred a pretty heavy financial hit.
Buy cars that you intend to keep for quite a while. This stuff rarely appreciates.
11-30-2008, 02:44 PM
#114
Rennlist Member
. . . if your car is worth more than the residual price of the lease term. But what if your car is worth $50k after three years at the time you sell and a lease had a residual of $55k, than it's going to cost you $5k more for the period you kept your car. Sure you could just keep it like every says, cause "I don't really need the cash", but that's not part of the lease vs. buy comparison over 3 years.
11-30-2008, 07:52 PM
#115
Nordschleife Master
For me, thats the point. This can't be seen as a 3 year deal. Most people don't just buy one car for 3 years in their lives. This works as an isolated example.
Repeat it twice or three times or four.........and I'm sorry, it just doesn't add up. It's financial madness in my book, but of course it works for some. Let's agree to disagree as we are getting way off thread here.
Repeat it twice or three times or four.........and I'm sorry, it just doesn't add up. It's financial madness in my book, but of course it works for some. Let's agree to disagree as we are getting way off thread here.
Since I hold onto my cars for a long time I always purchase... however, leasing might make sense for a flipper or someone who always wants a new car...
11-30-2008, 10:27 PM
#116
Addict
Lifetime Rennlist
Member
Lifetime Rennlist
Member
Interesting to note that KBB has changed from monthly updates to weekly as the industry is in such a turmoil.
Values have been dropping like a stones
Values have been dropping like a stones
11-30-2008, 10:49 PM
#117
Nordschleife Master
'WORST CRISIS SINCE WORLD WAR II'
It will be a long time until we see the light... from the German Press
http://www.spiegel.de/international/...592658,00.html
http://www.spiegel.de/international/...592658,00.html
German Auto Industry Facing the Abyss
By Dietmar Hawranek
More than 1.5 million workers in Germany depend on the automobile industry for their jobs.
But that industry is now facing one of its worst crises ever. Respected giants BMW and Mercedes are particularly exposed as sales plummet.
By Dietmar Hawranek
More than 1.5 million workers in Germany depend on the automobile industry for their jobs.
But that industry is now facing one of its worst crises ever. Respected giants BMW and Mercedes are particularly exposed as sales plummet.
12-01-2008, 06:18 PM
#118
I am looking to purchase either '05 or '06 Carrera S Convertible with decent options including Nav for under 55K. Is this something I could achieve in this market with No trade involved? I was looking at an '05 SL55 and I could get one with all the options for under 55K, but I think I need the back seats just in case.
12-01-2008, 06:35 PM
#120
Burning Brakes
Join Date: Oct 2005
Location: FL
Posts: 1,074
Likes: 0
Received 0 Likes
on
0 Posts
I am looking to purchase either '05 or '06 Carrera S Convertible with decent options including Nav for under 55K. Is this something I could achieve in this market with No trade involved? I was looking at an '05 SL55 and I could get one with all the options for under 55K, but I think I need the back seats just in case.
I am looking for a similar car, actually a coupe. If there is no trade you should be able to find your car today for $55K depending on mileage and CPO.
I am waiting to see what it will happen after people get their Xmas bills and now that most Credit Card companies announced they will be reducing credit limits on existing credit lines by 45%. The continue downturn could "potentially" affect the demand on these cars even further.