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BMW Tops 3-yr Residual Guide

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Old 12-21-2005, 10:21 AM
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The Automotice News reports that the longterm (3 year) residual value for 2006 vehicles, is now led by BMW at 53.6%. According to Automotive Lease Guide, that's up from 53.2% last year, and even beats Honda at 53%. Industry average is 49.4 for luxury and 44.5 for non-luxury.

In case you are wondering, MB is down the list in 4th place at 50.8, and the cellar position is held by the Ford cat at a dismal 38.1. Jaguar slipped seriously from 44.8% as did Volvo (to 44.9% from 50.1%).

This is even good news for we buyers.

Cheers,
Ray Hull
Old 12-21-2005, 11:00 AM
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Nice news ... thanks for the info.

I guess this supports the rationale Why we spend so much ...
Old 12-21-2005, 01:50 PM
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Originally Posted by Ray Hull' post='214070' date='Dec 21 2005, 07:21 PM
This is even good news for we buyers.
I wonder if some of this residual is affected by option purchasing... I have a theory (especially here in the UK) that most people have to specify certain cost options (e.g. leather, auto) to ensure a good resale value. However, the resale value is calculated from the base purchase cost (i.e. without leather etc.) This has actually hidden some of the depreciation!

Interestingly, the 530d is listed at 55% retained after 3 years - the best of all the 5-series. I bet my leather and auto will help towards hitting that percentage but the other options would get forgotten and the next purchaser will benefit. However, my opinion is that you're buying the options for yourself only!
Old 01-05-2006, 03:44 AM
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Cool. I can now justify another BMW.
Old 01-30-2006, 08:14 AM
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Originally Posted by colejl' post='214153
This is even good news for we buyers.
I wonder if some of this residual is affected by option purchasing... I have a theory (especially here in the UK) that most people have to specify certain cost options (e.g. leather, auto) to ensure a good resale value. However, the resale value is calculated from the base purchase cost (i.e. without leather etc.) This has actually hidden some of the depreciation!

Interestingly, the 530d is listed at 55% retained after 3 years - the best of all the 5-series. I bet my leather and auto will help towards hitting that percentage but the other options would get forgotten and the next purchaser will benefit. However, my opinion is that you're buying the options for yourself only!
[/quote]


From my understanding, the residual % if leasing is based on the total MSRP, at least in the U.S. If you load up with options, leasing may be the way to go. If not leasing, I would assume you are going to get much less than the stated residual in a private sale for options such as HUD, active cruise, comfort seats etc. as most buyers are not actively seeking these items.
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