Interesting Article : BMW Tries to Reduce Leases From 60% of Its U.S. Sales

FrenchBoy · 08-01-2008, 11:14 PM

BMW Tries to Reduce Leases From 60% of Its U.S. Sales

Very interesting read. Anyone knows the rate of lease vs. financing for M3s?

I wonder if the low lease rates offered on many new BMWs (such as .9%) will soon available for the M3.

e46e92love · 08-01-2008, 11:38 PM

Quote:

Originally Posted by FrenchBoy

BMW Tries to Reduce Leases From 60% of Its U.S. Sales

Very interesting read. Anyone knows the rate of lease vs. financing for M3s?

I wonder if the low lease rates offered on many new BMWs (such as .9%) will soon available for the M3.

As long as many people continue to get cars they can't really afford, leasing will dominate.....just my .02

Voltigeur · 08-02-2008, 12:09 PM

But the point is that BMW's sales were down -10% in US, profits down by about nearly -33% and they lost $373m on leases due to residuals' & credit costs' risk. If the model is broken - and credit costs have gone up - then BMW AG and the finance arm has to pare their exposure. Will reduce sales ... and they'll focus some more on Mid-East etc.

http://www.bloomberg.com/apps/news?p...JME&refer=home

I don't want to sound like an a-hole but I was warning about the credit environment, housing and high gas last year.

Hey, at least BMW's not GM which suffered the 3rd worst qtrly loss ever w/ $15.5B of red ink!

positiveions · 08-03-2008, 06:09 PM

I think the trend of vehicle leasing will be cut back in the US; however, I highly doubt that BMW will cut back on leasing as much as 60%. All the luxury brand manufacturers rely heavily on leasing because it generates repeat sales for them. I personally believe the culprit to blame is gas; which has affected new car sales, and resale value of used vehicles. That is why dealers are able to give the nice folks on this forum discounts up to 3k (so I've heard) on E90 and E92 M3. People are cautious of buying gas-wasting engines.

08-01-2008, 11:14 PM	#1
FrenchBoy Lieutenant Colonel 234 Rep 1,508 Posts Drives: '16 F80 M3 Join Date: Mar 2006 Location: Seattle, WA iTrader: (0)	Interesting Article : BMW Tries to Reduce Leases From 60% of Its U.S. Sales BMW Tries to Reduce Leases From 60% of Its U.S. Sales Very interesting read. Anyone knows the rate of lease vs. financing for M3s? I wonder if the low lease rates offered on many new BMWs (such as .9%) will soon available for the M3. __________________ Current: 2016 F80 M3 6-Speed \| SO \| AB XT1 \| ZCP \| M Performance Suspension \| GC Camber Plates Previous: 2009 E90 M3
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08-02-2008, 12:09 PM	#3
Voltigeur MacroRisk 109 Rep 2,523 Posts Drives: M3 E92 ED'09 / 335d Sport DD Join Date: Jul 2007 Location: TX iTrader: (0)	BMW took a bath But the point is that BMW's sales were down -10% in US, profits down by about nearly -33% and they lost $373m on leases due to residuals' & credit costs' risk. If the model is broken - and credit costs have gone up - then BMW AG and the finance arm has to pare their exposure. Will reduce sales ... and they'll focus some more on Mid-East etc. http://www.bloomberg.com/apps/news?p...JME&refer=home I don't want to sound like an a-hole but I was warning about the credit environment, housing and high gas last year. Hey, at least BMW's not GM which suffered the 3rd worst qtrly loss ever w/ $15.5B of red ink! __________________ Just thinking of something not so witty ///M3 E92 '09 Jerez Black \| 6MT \| Ext Fox Red \| Tech \| Prem \| 19s \|Heated Seats \| iPod \|Smartphone \| Euro Deliv June 09 Sold: 540iT / 530i / 323i
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08-03-2008, 06:09 PM	#4
positiveions Lieutenant General 961 Rep 11,722 Posts Drives: 19 Tacoma, 16 Golf wagon Join Date: Sep 2007 Location: Upland, CA iTrader: (2) Garage List 2019 Toyota Tacoma [0.00] 2016 VW Golf Sports ... [0.00] 1998 BMW M3 [0.00] 1990 BMW 325is [0.00]	I think the trend of vehicle leasing will be cut back in the US; however, I highly doubt that BMW will cut back on leasing as much as 60%. All the luxury brand manufacturers rely heavily on leasing because it generates repeat sales for them. I personally believe the culprit to blame is gas; which has affected new car sales, and resale value of used vehicles. That is why dealers are able to give the nice folks on this forum discounts up to 3k (so I've heard) on E90 and E92 M3. People are cautious of buying gas-wasting engines.
	Appreciate 0 Quote