BMW Arrogance All Time High

[Bulldog 1]

Reading what paltry few pages left on daily paper weekly auto section, run through fine print for latest BMW lease offer.
2016 BMW 320i "Stripped, not Equipped" being offered at following terms:
36 mos @ $279 mo plus tax, 7500 miles per year, Super Elite Tier 1 credit required, $3000 down plus $1978 due at signing, tax, tag, dealers fee, etc.
~OR~ One time pay lease $9878 for 24 mos with $1978 due at signing.
WTH makes BMW think their entry level POC 4-cylinder McBland car is worth $6,000 a year?!?
Yet, there is no shortage of them on the road. Always remember what a salesman told me sitting in an M3 one day: "You know what BMW stands for, right? BRING MONEY WITH".
I've found MB to be just as delusional on their lease prices.

 

[bnizzle87]

Not surprising, to say the least. But it carries a brand name and societal presence, still. I remember going to the gym a few years back and overhearing....ok, maybe eavesdropping on a few ladies who happen to be speaking a bit louder (could be due to the echoing of the glass-enclosed basketball court) and they still say that they won't date anyone unless they roll up in a BMW. So maybe it's an offer like this that appeals to customers (read...horny men) who want to spend the least amount on a car just to have a chance to date a woman. Try taking a lovely lady on a hot date in one of these stripped rides, and should it fail or leave him and his date stranded, even for a little while until help in the form of AAA or a tow truck arrives, that BMW will soon turn to BAD MOUTH WOMAN.

I do respect the brand and its offerings to cater to a wide array of potential buyers. But I am obviously disgusted by how certain people believe that driving a certain car will entitle you to certain things. In my experience through bailing friends out and coming to the aid of past lovers and family members, this "Ultimate Driving Machine" ended up being more of an Ultimate Waiting Machine, as in you're constantly waiting at the side of the road or at the dealer for it to be taken away and repaired. Different strokes for different folks, but I like peace of mind in my vehicles. And as for getting my date, I'll never let the car get her motor running more than me.

 

[Bulldog 1]

Well this is a timely bit of news...
http://www.autoblog.com/2016/02/11/bmw-recall-takata-airbags/

 

[mmcartalk]

WTH makes BMW think their entry level POC 4-cylinder McBland car is worth $6,000 a year?!?
Yet, there is no shortage of them on the road.

It sounds like the latest 3-series models are projected to depreciate more than in the past. That's what kept BMW lease-prices down in the past.......low depreciation from high demand as used cars. But word is starting to get out about the latest ones, with the electric power steering, less-sporting chassis, and more mainstream driving characteristics. That means less demand for them as used cars, and higher lease-rates to cover that depreciation. You could say that the once-Ultimate DRIVING Machine is becoming the Ultimate JIVE-ing Machine LOL.

 

[Och]

Usually 36 month leases are a lot better than 24 month. In November of 2015 I leased an X1 2.8 with ultimate package for my daughter for $400 a month/36 months, including absolutely everything. In fact they even did some extra discount where my first payment (or two first payments) were only $150, and I didn't even do any negotiation.

The price of the new 3 series has gone up by a lot, and obviously it will depreciate a lot more, thus higher lease prices. And its true for other makes as well, not just BMW. But even then, we still have it pretty good here in USA when it comes to cars. People across the pond pay twice that much for crappier cars, and pay a lot more for fuel and road taxes.

 

[CIF]

Reading what paltry few pages left on daily paper weekly auto section, run through fine print for latest BMW lease offer.
2016 BMW 320i "Stripped, not Equipped" being offered at following terms:
36 mos @ $279 mo plus tax, 7500 miles per year, Super Elite Tier 1 credit required, $3000 down plus $1978 due at signing, tax, tag, dealers fee, etc.
~OR~ One time pay lease $9878 for 24 mos with $1978 due at signing.
WTH makes BMW think their entry level POC 4-cylinder McBland car is worth $6,000 a year?!?
Yet, there is no shortage of them on the road. Always remember what a salesman told me sitting in an M3 one day: "You know what BMW stands for, right? BRING MONEY WITH".
I've found MB to be just as delusional on their lease prices.

The funny thing is, the vast majority of business that BMW and Benz do in North America is from leases. Comparatively speaking, the lease prices for many of the German brands are actually quite low in comparison to others in the luxury or near-luxury realm, so that is one reason why so many base 3 Series continue to be sold and seen on the road. It's a well-known fact among auto enthusiasts and industry people that the German Big 3 heavily subsidize their leases in North America. In other words, they're cheaper than they should be as the Germans are intentionally offering low-ball leases.

 

[mmcartalk]

Usually 36 month leases are a lot better than 24 month.

That's because of the typical depreciation curve. First and second-year depreciation is usually the steepest, and starts to flatten out in the third year. By the time a vehicle is eight to ten years old, especially with high mileage, the curve is almost flat.

 

[Bulldog 1]

The funny thing is, the vast majority of business that BMW and Benz do in North America is from leases. Comparatively speaking, the lease prices for many of the German brands are actually quite low in comparison to others in the luxury or near-luxury realm, so that is one reason why so many base 3 Series continue to be sold and seen on the road. It's a well-known fact among auto enthusiasts and industry people that the German Big 3 heavily subsidize their leases in North America. In other words, they're cheaper than they should be as the Germans are intentionally offering low-ball leases.

How do you support that statement?
My Lexus lease is between $1,000 and $1,500 out of pocket, swap keys and see you again in two years.
My ES350 is a bit more out of pocket but less than $3,000 out of pocket.
Every BMW and most MB leases in S FL is roughly $6,000 out of pocket no matter how they slice it up. Most Cadillac leases run about $3,500 to $4,000.
The industry leading residual of Lexus with low depreciation has always worked out to very agreeable terms for me.
Another thing to consider: BMW is offering my quoted from our local newspaper lease terms based on "Super Tier 1 Credit". Considering many people have less than stellar credit ratings, those terms change to what?
I've studied lease terms for years and German leases (Audi not as greedy) have always been exceedingly high up front costs to achieve a competitive monthly term.

 

[CIF]

How do you support that statement?
My Lexus lease is between $1,000 and $1,500 out of pocket, swap keys and see you again in two years.
My ES350 is a bit more out of pocket but less than $3,000 out of pocket.
Every BMW and most MB leases in S FL is roughly $6,000 out of pocket no matter how they slice it up. Most Cadillac leases run about $3,500 to $4,000.
The industry leading residual of Lexus with low depreciation has always worked out to very agreeable terms for me.
Another thing to consider: BMW is offering my quoted from our local newspaper lease terms based on "Super Tier 1 Credit". Considering many people have less than stellar credit ratings, those terms change to what?
I've studied lease terms for years and German leases (Audi not as greedy) have always been exceedingly high up front costs to achieve a competitive monthly term.

I should have clarified, the Germans offer very low-ball monthly costs. The upfront costs before you get out the door are a different story. With that said, I've seen several regions in the past where BMW and Benz dealers were willing to heavily discount or even remove the upfront out of pocket costs like money down or due at signing. I don't know if you've studied the leases only in your local area, or in all North American regions. I haven't studied all North American regions myself. All that I'm saying is I don't think the high up-front costs you saw in your local paper are consistent in every region, or with every dealer. Otherwise there is simply no way that BMW would be able to push over 10,000 3/4 Series models in the US like they did in past months. My anecdotal evidence of a few regions in the past backs this up.

Also I don't know if Lexus upfront out-of-pocket costs are that low consistently across North America. Again anecdotally, a few months ago I was looking at Lexus prices in a few different regions, and upfront out-of-pocket costs were quite high on most models, easily over $3000.

Also let us not forget that until recently, BMW USA had a free maintenance program for years. Before BMW had implemented that, it was unheard-of for a luxury brand to offer free maintenance. In fact it still is, as now that BMW has removed their free maintenance program, I can't think of a single top tier luxury brand offering free maintenance. The free maintenance program though was in effect, a partial lease subsidy. I simply brought this up as further evidence that the Germans, to varying extents, were and still are subsidizing North American leases.