Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Sedans High End Luxury Cars
24700 messages, Last post on Dec 01, 2009 at 12:24 PM
You are in the Sedans Forum. Your Hosts are pat & karens
Let's try to define this forum as being limited to luxury performance vehicles where the mainstream version in a typical configuration has an MSRP of at least $60k.
A luxury vehicle with a base price of $59k qualifies because it would typically be bought with some additional equipment, bringing the MSRP over $60k.
Vehicles like the E, 5, A6, M, or GS, even if available in certain versions over $60k, don't qualify because they are cars from companies that have higher end cars in their lineups.
|
|
|---|---|
|
Replying to: hpowders (Oct 20, 2006 7:54 am) Using 70% residual, the same car would require $500/mo amortization . . . whereas using the real life $58% resale after 24mo, the same car would require $1250/mo amortization. Both before interest portion of the payment. You can see the drastic actual price difference that inflating residual does.
|
|
|
Replying to: brightness04 (Oct 20, 2006 7:59 am) Since when do you see 30% to 50% price discounts for Benzes and BMWs?  This conversation is getting far too interesting for me. I have some work to do and will be back to engage in our leisurely conversation about hypothetical and theoretical conjectures regarding residual manipulations. In fact I think it would be even more interesting if we can discuss $$$ and facts that are quantitively based on reality versus quantitities based on your unsubstantiated conjectures and auction visits. Dont you think? |
|
|
Replying to: brightness04 (Oct 20, 2006 8:02 am) So long as BMWFS continues to support their leases with artificially high residuals and competitive money factors, I will continue to rent and return. I see it as a no lose situation. I am currently leasing my 545i at 2.4% interest. One of Edmunds host's, Kyfdx, did even better. I believe he leased a 2005 3 Series convertible for only about 1% interest!
|
|
|
Replying to: hpowders (Oct 20, 2006 8:19 am) And it is a no-lose situation for BMW too. BMW can make big profits with generous lease deals as long as their cars remain number one in terms of actual high resale values. I sold my old BMW323i for a higher price than I had expected. Even buying a BMW and keeping it for many years can pay off big time.
|
|
|
|
|
Replying to: hpowders (Oct 20, 2006 8:19 am) The case would be even more clear-cut if I had taken up on the sub-$400/mo S320 lease deal.
|
|
|
|
|
Replying to: dewey (Oct 20, 2006 8:22 am) Cars are not investment, even for E36. Althought it did retain value remarkably well. The E90 is questionable, with all the heavy discounting this early in the model cycle. In any case, the $30k entry-level cars are not the purview of this forum.
|
|
|
Replying to: brightness04 (Oct 20, 2006 8:26 am) I dont know what your point is? I am talking actual resale values! The resale values actually realized when selling a BMW like I did with my 323i. I am talking about the actual resale values that make generous lease deals profitable for BMW. If acutal BMW resale values were as low as you imply then those generous lease deals would not make BMW one of the most profitable auto companies in the industry. Again what is your point
|
|
|
Replying to: brightness04 (Oct 20, 2006 8:24 am) As if the inflated residuals aren't good enough, you can join BMWCCA and get from $500-$1000 back as a rebate on every new BMW that you lease! I would expect this kind of stuff from Kia. From BMW, it's a no-brainer!
|
|
|
|
|
Replying to: dewey (Oct 20, 2006 8:29 am)
|
|
|
Replying to: brightness04 (Oct 20, 2006 8:33 am) You have not responded to my post. Based on your scenairo massive subsidized leasing with low real world resale values would translate into a very unprofitable BMW . That as you know is not the case and BMW is among the most profitable car companies . In other words your views of massive BMW lease subsidies does not hold . I repeat massive subsidies and very high profitabiliy can hardly coexist within the same company including BWW. Again what is your point?
|
|
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
2011 Audi A8
2010 BMW 7 Series
2008 Jaguar XJ-Series
2010 Lexus LS 460
2010 Mercedes-Benz S-Class
2006 Volkswagen Phaeton
2009 Maserati Quattroporte
2010 Mercedes-Benz CL-Class
Browse by Board
Browse by Topic
Today's Chats
