Quote:
Originally Posted by Acey506
24 months ago I leased a 2022 X1 28i, my first BMW. Over the last year I saw articles how it has excellent safety ratings and how reliability is expected to be above average. I’m considering purchasing the vehicle because I really like it and figure I’d have equity in the car because I have very low mileage and it has premium enhanced package. I dug out my lease and was surprised to see that after 4 years they peg the value at 43% of original MSRP. Not that I care too much as just makes my buy out/residual cheaper, but curious why they depreciated it so much over 4 years: MSRP 51,470 (I negotiated it to 47,950) and residual 22,132. When I check out depreciation sites, seems like it should be around 25-30%. Just curious if anyone knows why depreciation so high. I love the car and it has everything I want, including HUD and sports seats. I actually like the classy analog display blended with new technology, physical control buttons and a true shifter. Would you agree given all that I should purchase it?
|
Residual values for Canadian leases have been steadily declining the last 3 or 4 years. Even with comparable lease rates to 4 years ago, a lease costs about 50% more now. Some of that is price increase, some of it is lower residual value.
I leased a 2021 X3 M40i in 2020. It was $1000/month after tax.
A new X3 M40i lease in 2024 is $1500/month after tax.
(Canadian prices)
Lease rates are lower now, but it doesn't matter when the residual is rock bottom. I think customers are getting ripped off now because an X3 lease shouldn't be $1500/month Cdn. It gives BMW and the dealership a nicer profit cushion on lease return resale. Maybe it's why there's so many 30i on the lots instead of 40i.
Rob