Canada - Is 52% residual normal on 135i

[azzero]

I recieved this lease quote of 900CAD/mo from dealer for 135i cabriolet ( 2008 model ) for 39 months 4.9% interest rate.
Total price of the car with the options I selected turned out to be 53,345.
What is interesting is the residual mentioned as 52%. Isn't this too low? Or is it as per the canadian standards? Any comments, advise is appreciated. Afterall it was a long wait to be financially ready for this one:wub:

[Cooldaddygroove]

Too low? No. It's about right. You can see higher residuals on more "desirable" models like M3's (I think as high as 56% on a 3 year lease), and lower residuals on less desirable (Toyota Yaris).

There are no "Canadian Standards". The residual is determined by the leasing company. It is an estimate of teh future value of teh vehicle based on:

(1) Options and price of car
(3) Mileage allowance

It's just a scale, meaning, they can increase the residual value, which reduces the monthly payment, but if the car is worth substantially less than the residual value, the leasing company ends up eating the difference (because you, the owner won't buy it out at the residual price).

[dr.golf]

I just did a 36 month lease on an 09 coupe with 30K per year and it was 54%. 52% for 39 months on an 08 seems very aggressive from the lessing company IMO.

[AND]

Why lease? Put $5,000 down and go with the 'buyers choice' financing over 48mo at 3.9%! Payment would be low $600's and after you can sell if you don't want or buy for less then a lease.

Not bashing just curious is all.

[linus]

Strange, I got a 59% residual (however on a 36 mo lease) with my 2008 335i at 3.9%. I would have thought with the recent introduction of the 1 series, the residual would have been considerably higher, perhaps 58%?

[Bahuba]

Originally Posted by AND

Why lease? Put $5,000 down and go with the 'buyers choice' financing over 48mo at 3.9%! Payment would be low $600's and after you can sell if you don't want or buy for less then a lease.

Not bashing just curious is all.

Why? 1) Because some people like me change cars like they do underwear. 2) Selling a 3 year old car in the 20-30k range is difficult in a market like Ottawa. 3) BMWs are expensive to own once out of warranty. 4) for 0 down, you can lease an 08 135 for 39 months, for not much more.

[azzero]

Hmm..So it looks like second round of negotiation needed about the residual. Member Linus, which dealer did you go to?

Another general question to cabriolet owners, Is it well insulated for canadaian winter conditions? Is the view good especially in the winter conditions considering the small rear windshield. I was so much for cabriolet but now having some second thoughts.

[linus]

Originally Posted by azzero

Hmm..So it looks like second round of negotiation needed about the residual. Member Linus, which dealer did you go to?

Another general question to cabriolet owners, Is it well insulated for canadaian winter conditions? Is the view good especially in the winter conditions considering the small rear windshield. I was so much for cabriolet but now having some second thoughts.

Should caveat that I picked up my car in Feb 2008 and ordered it in Dec 2007. BMW Toronto. The same leasing opportunity was offered Canada-wide at that time.

[j8smith]

the residual value drops off towards the end of the model year. Not much you can do about that as the new models are starting to arrive, and the old models are depreciating. They can sweeten the deal by dropping the MSRP and lowering the interest on the left over 08's though. The residual for a 2009 model will be higher, but so will interest rate and msrp.

In comparison, when I bought in March, I got a 62% residual on my 128 for 39months , and the 135 was 58%.

Jay