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      08-05-2011, 06:28 AM   #12
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Drives: 2015 320i
Join Date: Apr 2005
Location: Ft Lauderdale, Florida

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Originally Posted by persian54 View Post
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.