Originally Posted by persian54
can one explain this part better please?
It's late sorry
Higher residual (lease)/balloon (BMW Select) = lower payments
Because the ED price can be 7-14% lower than MSRP both the residual and balloon payments will be proportionally lower as well. So a portion of the actual ED savings will be consumed by higher monthly payments.
By keeping the residual/balloon calculations based on the MSRP instead on the ED price the monthly payments become even lower, making ED more attractive as a purchasing option.
I read somewhere that BMW was taken to court just for this by a customer, and it was forced to base the residual/balloon on the MSRP instead of the ED price.