2016 M3 M4 residuals are out!

[04cobra]

My 2015 I got 65%, .0008 MF (after MSD's) and $3k off. I had a trade in and my lease payments are right at $100 a month. Ya ya I know i should have just pocketed the trade in value but my wife said I could only get it if she got a new car too and my payments were low.......

[mshab356]

Glad I got 60% res w/ 15k miles/year...2016 isn't that different either which I'm glad about. I'm most bummed about not getting that new iDrive hardware though...

[MavRick]

Originally Posted by bradleyland

A four point drop in residual is a real shit show.

Let's assume a $75k build.

2015: 63% residual is $47,250
2016: 59% residual is $44,250

That's a $3,000 difference in residual.

Someone leasing this car under the 2015 residual would be financing $27,750, so a $3,000 difference is actually over 10%.

Man, I'd be pissed if I missed the boat on 2015 residuals.

Tell me about it. If we hadn't gotten such a good deal, I think I would've suggested walking away. But...it's given me to op to explore PenFed, so there's an opportunity for the deal to end up even sweeter.

Maybe...

[deplaya]

The residuals should go back up as the model year pans out. No need to panic!

[wdeerfield]

Originally Posted by 335twins

yep..I was told my credit is A+

gotta love the dealer trying to make money on the reserve! i would tell them .0013 or you'll go somewhere else. he's trying to pocket 1.56% of your interest payment

[Powaup]

why is the M3 is sooo much cheaper

[Mako]

MF is the same as APR now (since APR is 2.9% for 60 months), interesting since you are financing a smaller amount as well, the only negative to leasing is the $795 acq fee, otherwise its a better option than buying, if you buy it at lease end the only difference between buying up front is no $795 fee...

[WilliCO]

Originally Posted by Mako

MF is the same as APR now (since APR is 2.9% for 60 months), interesting since you are financing a smaller amount as well, the only negative to leasing is the $795 acq fee, otherwise its a better option than buying, if you buy it at lease end the only difference between buying up front is no $795 fee...

Depending on the circumstances, you might even get a shot at buying out below the residual at the lease end. In which case you sort of get to "renegotiate" your buy price after you've had the car a few years.

[BES418]

Originally Posted by saxon

so glad i got the $2,000 in incentives, invoice pricing, .65 residual and .00129 mf on my 2015

Thats an insane deal. Your dealer sucks at making money, but well done.

[punky8d]

Just had a quick crash course about Money Factor and leasing.. Lucky to get 64% residual and .00129 MF.. 2015 M4
Based from Money Factor = (Rent Charge/Lease Term)/(Adjusted Cap Cost + Residual)

But then again, I'm looking for a new owner for this beauty.

[raysspl]

Useful data, thanks for sharing.

[JcLusso]

Glad I got my MY2015 Individual M3. I'm paying $3498 under MSRP with .00128 MF and 65% residual

[For///Mula 1]

My Yas Marina 16 is due here in less than 30 days.

I guess I should decline it with these numbers.

[V3rbatim]

Originally Posted by For///Mula 1

My Yas Marina 16 is due here in less than 30 days.

I guess I should decline it with these numbers.

Its okay.. atleast the 16s have a few small changes that are worth it to some and not so much to others. Atleast the resale on the 16s will be better lol. You get the newest model man!

[IM2C]

Originally Posted by deplaya

The residuals should go back up as the model year pans out. No need to panic!

Yep. I doubt they will reach mid sixties again, but based on what happened last year, I'm guessing fall rates to be:

10k 64%
12k 63%
15k 61%

[IM2C]

Originally Posted by For///Mula 1

My Yas Marina 16 is due here in less than 30 days.

I guess I should decline it with these numbers.

If you are getting standard lease deal, you'll be paying $60-100/month more with these low residuals.

[For///Mula 1]

If it's that bad. I'll wait for competition pkg. I'd rather overpay for that.

[jzmundy]

I'm sorry...why is everyone acting so surprised at the lower residuals? This is typical for a new MY...

[bradleyland]

Originally Posted by jzmundy

I'm sorry...why is everyone acting so surprised at the lower residuals? This is typical for a new MY...

Because it's a 4 point drop. I don't remember the E92 residuals dropping more than 2 points at any given time.

I'm not saying that has anything to do with the E92 vs F80. The reasons could just as easily be economic, rather than anything to do with the F80 in particular. Lease residuals are, by proxy, a projection of the future economy in a market. You can't predict the future value of a car particularly well if you don't have an accurate model of the economic state at the time of the contemplated transaction.

[supershaft]

Originally Posted by Whttiger25

Well, for those who were considering financing the vehicle this tips that option slightly more into favor. Breakeven between leasing and financing/selling is somewhere between 3 and 4 years so do the math. There are lots of assumptions and variables in the analysis of course, but the lower the residual, the better the chance that you can resell the car at or higher than the residual rate. While you have a higher payment, you also have equity at the end of 3 years to offset those payments, and you pay a lower financing charge (financing rates are usually lower than the MF rates). In states where you have to pay full taxes on the leased vehicle financing is a no-brainer, but in states where you only pay taxes on depreciation, the lower financing rate vs MF rate can help offset that. Usually at 3 years, leasing is still a better deal, but if you can stretch holding the car an extra year financing becomes cheaper and small things like this (lower residual, higher MF) can tip the balance for some.

Aren't most people upside down by the 4th year when financing? And that's if you have an immaculate condition car?

[Whttiger25]

Originally Posted by supershaft

Aren't most people upside down by the 4th year when financing? And that's if you have an immaculate condition car?

I'm confused...by the 4th year you should have paid 60-80% of your loan plus your down payment. How would you be upside down on any vehicle much less an M3?

[Suad9]

I knew it damm residual