Originally Posted by Nikolas
I know I've said it before, but BMW inflates their residual rates as leases are the majority of BMW's USA income. If anyone honestly believes the resale value of BMW actually equals the residual value they are dreaming.
I think BMW sets their residual rates based on what they believe the market will support for their products. They are willing to take that chance on setting higher residuals than Audi because quite simply they know the market will support that. The used car market is what determines prices, not a car company directly. The manufacturer can only influence the prices of their used product slightly by producing good products that are in demand.