Quote:
Originally Posted by AlteBMW
The chip shortages have resulted in cars being in short supply as well as decontenting. You can no longer get high end audio in the on line configurator, and laser lights and night vision are gone. Used car prices are up and new prices are seeing few discounts (the laws of supply and demand). Some orders are taking 6 months to deliver. All reports are this situation will not abate until well into 2022. My lease is up in about 9 months so out of curiosity I took a look at the residual value and my remaining lease payments and then looked at Kelly Blue Book for a ballpark number for the car's value. Even with the inflated residuals BMW uses, the actual value is a few thousand over the residual plus payments (I have only 10000 miles and likely would have maybe 17 or 18,000 at lease end, well below the 22,500 allowed). So why in the world would I turn in this car at lease end? It would make sense to either extend the lease until the chip shortage is no longer an issue, or buy it for the residual price. There'd be a year left on the warranty, so that is not an issue. Aren't a lot of people going to be in his situation? If so, won't it serve to further reduce the supply of used cars and reduce demand for new cars? That would further increase used prices but could also result in downward price pressure for new ones. Wouldn't it then make sense for dealers to make attractive offers on leased car turn in/new car transactions? That kind of transaction gives them a used car to sell as well as a new car sale. What am I missing?
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My 2019 760 lease is up in 3 weeks. Residual is $97,000. In today’s marketplace the car might be worth $90000 wholesale. $97000 retail. I am turning it in. I am buying a new S580 I ordered and I am being given a $14000 discount off of MSRP from my Mercedes dealer which is exceptionally kind in today’s market.