18% Residual on Select?

Mr Friese · 04-23-2022, 08:23 PM

Putting together a deal on a X3M and I was shocked to see that the residual on these after 60 months is only 18%? Is it me, or is that ridiculously low? I think the M3/4 sit around 30ish.

F87LUV · 04-23-2022, 08:36 PM

Quote:

Originally Posted by Mr Friese

Putting together a deal on a X3M and I was shocked to see that the residual on these after 60 months is only 18%? Is it me, or is that ridiculously low? I think the M3/4 sit around 30ish.

When my app was submitted, it was even lower. BMW select balloon payment after 60 months was around 12k! It is low but I don't think that's going to be the actual market value. The sales manager said it's more so due to all the cars being overpriced? Not sure if that's some way they're hedging the market or just another way to take advantage of the consumer.

SeattleX4MC · 04-23-2022, 10:26 PM

Quote:

Originally Posted by Mr Friese

Putting together a deal on a X3M and I was shocked to see that the residual on these after 60 months is only 18%? Is it me, or is that ridiculously low? I think the M3/4 sit around 30ish.

Might as well buy it for the value.

Kevin_The_Clean1 · 04-24-2022, 01:23 AM

Interesting topic here.

goldfz8 · 04-24-2022, 07:01 AM

Thats deff some type of scheme. To put it in todays perspective a 2016 of most bmws is probably around 50% of what its original value is.

JTrader1201 · 04-24-2022, 07:14 AM

lol, I'm not sure of the mechanics behind it, but this is definitely a shady move by BMW. I'd bet my LIFE that pretty much no X3M will only be worth 18% of its value after 5 years. That's embarrassing and comical on their part.

goldfz8 · 04-24-2022, 07:39 AM

I feel that can only depreciate a new car price.... How bad of an investment is it to lose 50k+ in 5 years

Mr Friese · 04-24-2022, 07:44 AM

Quote:

Originally Posted by 2kaccordocoupe

What's comical to me is that people do a 5 year lease. Especially with a residual like that. May as well finance it and own it from the beginning as opposed to renting 82% of the vehicle. WTF

With the balloon you still own the car at the end (assuming you pay it off). That said, I agree that a straight finance is the way to go right now. Even regular leases are a trap in this climate.

goldfz8 · 04-24-2022, 07:59 AM

Edit.... i know cars are not an investment

blinkme323 · 04-24-2022, 05:13 PM

So they're basically saying that the car is going to lose 35% of its value between years three and five? odd...

DealBMW · 04-25-2022, 07:10 PM

It is 18%
Maybe BMW is preparing for a bad inflation over the next 5 years?

04-23-2022, 08:23 PM	#1
Mr Friese Private First Class 185 Rep 198 Posts Drives: 2011 M3 Join Date: Oct 2011 Location: Baltimore iTrader: (0)	18% Residual on Select? Putting together a deal on a X3M and I was shocked to see that the residual on these after 60 months is only 18%? Is it me, or is that ridiculously low? I think the M3/4 sit around 30ish.
	Appreciate 0 Tweet Quote

04-24-2022, 01:23 AM	#4
Kevin_The_Clean1 Brigadier General 3230 Rep 3,889 Posts Drives: 2020 X3 MC Join Date: Jan 2016 Location: Campbell, CA iTrader: (11)	Interesting topic here. __________________ 1998 E36 M3 - Totaled 2003 E39 M5 - Gone but not forgotten 2011 E90 335i M-Sport - Daily Driver 2017 F87 M2 - Sold & missed 2020 F97 X3 M Competition - Finally arrived ///
	Appreciate 1 Mr Friese185.00 Quote

04-24-2022, 07:01 AM	#5
goldfz8 First Lieutenant 381 Rep 372 Posts Drives: 08 Bmw 135 Join Date: Aug 2014 Location: NYC iTrader: (0)	Thats deff some type of scheme. To put it in todays perspective a 2016 of most bmws is probably around 50% of what its original value is. __________________ 2022 BMW X3M - 11.604 @117.96 Gone But not forgotten 2008 BMW 135 - 10.9 @ 131 2016 BMW X6
	Appreciate 1 Mr Friese185.00 Quote

04-24-2022, 07:14 AM	#6
JTrader1201 New Member 6 Rep 5 Posts Drives: M40i Join Date: May 2021 Location: Wilmington iTrader: (0)	lol, I'm not sure of the mechanics behind it, but this is definitely a shady move by BMW. I'd bet my LIFE that pretty much no X3M will only be worth 18% of its value after 5 years. That's embarrassing and comical on their part.
	Appreciate 2 Mr Friese185.00 Vettethret661.50 Quote

04-24-2022, 07:39 AM	#7
goldfz8 First Lieutenant 381 Rep 372 Posts Drives: 08 Bmw 135 Join Date: Aug 2014 Location: NYC iTrader: (0)	I feel that can only depreciate a new car price.... How bad of an investment is it to lose 50k+ in 5 years __________________ 2022 BMW X3M - 11.604 @117.96 Gone But not forgotten 2008 BMW 135 - 10.9 @ 131 2016 BMW X6
	Appreciate 0 Quote

04-24-2022, 07:59 AM	#9
goldfz8 First Lieutenant 381 Rep 372 Posts Drives: 08 Bmw 135 Join Date: Aug 2014 Location: NYC iTrader: (0)	Edit.... i know cars are not an investment __________________ 2022 BMW X3M - 11.604 @117.96 Gone But not forgotten 2008 BMW 135 - 10.9 @ 131 2016 BMW X6
	Appreciate 0 Quote

04-24-2022, 05:13 PM	#10
blinkme323 Captain 504 Rep 788 Posts Drives: 2018 M3 CS Join Date: May 2011 Location: Philly iTrader: (1)	So they're basically saying that the car is going to lose 35% of its value between years three and five? odd... __________________ 2018 SMB M3 CS
	Appreciate 0 Quote

04-25-2022, 07:10 PM	#11
DealBMW Lieutenant 353 Rep 465 Posts Drives: G30 540i Join Date: Jan 2022 Location: NJ iTrader: (0)	It is 18% Maybe BMW is preparing for a bad inflation over the next 5 years? __________________ Art Sells NJ BMW Springfield SA > Real Estate Agent in NJ 908.333.7839 artyom@srnjteam.com Instagram @duercos
	Appreciate 1 Mr Friese185.00 Quote