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.
-2015 F30 320i, Imperial/Oyster, 8AT: August 2014 ED
-2012 E92 M3 Jerez Black/Rust Brown, M-DCT: Gone
-2008 E90 M3 Melbourne Red/Bamboo, 6MT: Gone
-2007 MK5 GTI United Grey/Grey, DSG: Gone
-2004 E46 M3 Carbon Black/Cinnamon, 6MT: Gone