Documentation on the new increased residuals
- Thread starter jelloslug
- Start date
Help Support BMW i3 Forum:
The 7% residual bump that went into effect the last couple weeks of August, expired this past Tuesday, 9/2, and have not been renewed (yet?). I would expect a new plan will be released soon, but perhaps the previous residual rates will remain all month.jelloslug said:
LivingBetterThurEV
Active member
- Joined
- Aug 5, 2014
- Messages
- 36
The dealer received a document "BMW Sales August 2014 - on page 5 - shows the increased residual value and in a table compares the Prius, Leaf, Volt, MB B class, 528i, 328d, i3 Bev and i3 Rex. Several dealers have stated how confusing it is with the overlaping documentation. They need to communicate with their regional management. Hope that helps.
Sidenote: Even though this Forum FAQ section states the Attachments are supported, it is a Admin thing to allow. I have a PDF that I could share - but don't see an attachment button or function.
Sidenote: Even though this Forum FAQ section states the Attachments are supported, it is a Admin thing to allow. I have a PDF that I could share - but don't see an attachment button or function.
My dealer is telling me that the increased residuals apply only to certain vehicles. He says that the higher residual promotion is not available for any i3, but that BMW has a specific list of 500 VINs designated for the promotion. Can anyone confirm if this is true? If so, does anyone have the list of VINs? Despite learning about the existence of the list, my dealer is having trouble obtaining it (assuming there is such a list).
i3atl
Well-known member
JNS said:
I would find another dealer.
JNS said:
I got the higher residual in August for a custom ordered car. My dealer referenced a number of "slots" they had for this promotion not a list of approved VINs. He wasn't sure, but thought BMW was (at that time) experimenting with the incentive because inventories were building.
tiburonh
Well-known member
ccchr said:
Yes, confirmed.
Just to avoid confusion, the residual increase is capped at 100%. So it is not, as some have speculated, possible to get to a negative payment. The way it works is that the original lease payment is based off the old residual of 46%. Each month, the payment is automatically recomputed based on the prior month's residual plus 7%--- but only until you get to 100% residual (zero cap reduction). Remember that you will need to pay the full MSRP at lease termination if you want to keep the car-- but you should still come out ahead.
Be sure your dealer uses the correct promo code to qualify for this deal.
Be sure your dealer uses the correct promo code to qualify for this deal.
Chrisn said:Just to avoid confusion, the residual increase is capped at 100%. So it is not, as some have speculated, possible to get to a negative payment. The way it works is that the original lease payment is based off the old residual of 46%. Each month, the payment is automatically recomputed based on the prior month's residual plus 7%--- but only until you get to 100% residual (zero cap reduction). Remember that you will need to pay the full MSRP at lease termination if you want to keep the car-- but you should still come out ahead.
Be sure your dealer uses the correct promo code to qualify for this deal.
Does this apply to Owners Choice w/ Flex?
No idea what you are talking about. The old residuals (from before August) were a function of the length of the plan and the number of miles per year. For this and last month, each residual of the old plan has been increased 7%. The residuals are exactly the same for a lease, OC, or OC/Flex.Chrisn said:
My 30 month, 10K mile/year OC residual is 58%, up from the previous 51%. Longer term or more miles/year reduces the residual. Residuals are based entirely on the MSRP of your i3.
Once your total i3 costs (excluding finance/lease charges), down payment, interest/lease rates, and residual value are known, then your monthly payment is calculated, and that does not change (does not get recomputed) unless you do an early payoff.
Paying ahead on a lease (paying more than the required monthly payment) could result in a lower buyout (below the residual), but does not save you any finance costs. Paying ahead on an OC or OC/Flex will save you finance costs as well.
tiburonh
Well-known member
Chrisn said:Just to avoid confusion, the residual increase is capped at 100%. So it is not, as some have speculated, possible to get to a negative payment. The way it works is that the original lease payment is based off the old residual of 46%. Each month, the payment is automatically recomputed based on the prior month's residual plus 7%--- but only until you get to 100% residual (zero cap reduction). Remember that you will need to pay the full MSRP at lease termination if you want to keep the car-- but you should still come out ahead.
Be sure your dealer uses the correct promo code to qualify for this deal.
This is definitely NOT the way the residual promotion works. All that happens is that when you make your deal the residual they use will be 7 percentage points higher than what it was on BMW's original scale -- and of course the residual depends on how many years you go for and how many miles per year you go for.
The residual does NOT then keep changing each month, and there is no way to get to 100% residual.
LivingBetterThurEV
Active member
- Joined
- Aug 5, 2014
- Messages
- 36
Tell me more about the 60% residual. (53% + 9%)?
This would be an increase from the July 43% up to 50% that occurred in Aug and now you say another 7% kicking it up to 60% in Sept.
I need to know quickly along with any support documentation - so I can go back to the dealer ASAP.
This would be an increase from the July 43% up to 50% that occurred in Aug and now you say another 7% kicking it up to 60% in Sept.
I need to know quickly along with any support documentation - so I can go back to the dealer ASAP.
I went to a dealer yesterday and he used a 52% residual for a 36 mo/36,000 mile lease.
I have had several BMWs but never leased before so newbie question - can a dealer decide the residual, or do they have to offer exactly what BMW publishes? And is it 52% or 53%?
I have had several BMWs but never leased before so newbie question - can a dealer decide the residual, or do they have to offer exactly what BMW publishes? And is it 52% or 53%?
Similar threads
