BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read

Go Back   7Post - 7 Series Forum > BIMMERPOST Universal Forums > General BMW News and Cars Discussion

Post Reply
 
Thread Tools Search this Thread
      11-30-2022, 01:49 PM   #23
G30 B58
Pace Car Driver
1548
Rep
3,164
Posts

Drives: '22 AW G30 B58 M-Sport
Join Date: May 2014
Location: my garage in PA

iTrader: (0)

Quote:
Originally Posted by TruthOne View Post
How are most Americans affording a $800 car note?
Job(s).
Appreciate 5
Mako1548.00
John4C862.50
Thelof57.00
      11-30-2022, 01:51 PM   #24
iroc86
Enlisted Member
United_States
23
Rep
31
Posts

Drives: 2020 BMW 230i 6MT
Join Date: Apr 2022
Location: Southwest US

iTrader: (0)

I have an appointment to look at a new 2 Series this week. The lease on my '20 F22 is coming due in April and the dealer is "searching for well-maintained vehicles to expand [their] pre-owned inventory and [is] interested in purchasing [my] BMW." I'm preparing myself for the pittance they're probably going to offer for my car that just turned over 6500 miles on a 30k lease.

And the crazy used car valuations? Despite being several years into this nonsense, the residuals for leases are still nowhere near fair for the prospective lessee. They might be a percent or two higher than they were before the pandemic, but the real-world value is somewhere closer to +20% these days.

It's getting hard to justify a BMW when the prices keep going up and consumers are still forced to accept the reality of no MSRP rebates, insulting incentives, and unreliable loyalty discounts.
Appreciate 1
chrisk03153.00
      11-30-2022, 02:09 PM   #25
19G20
Lieutenant
155
Rep
530
Posts

Drives: X3 M40i
Join Date: Dec 2011
Location: Florida

iTrader: (12)

Buy it out.

Quote:
Originally Posted by iroc86 View Post
I have an appointment to look at a new 2 Series this week. The lease on my '20 F22 is coming due in April and the dealer is "searching for well-maintained vehicles to expand [their] pre-owned inventory and [is] interested in purchasing [my] BMW." I'm preparing myself for the pittance they're probably going to offer for my car that just turned over 6500 miles on a 30k lease.

And the crazy used car valuations? Despite being several years into this nonsense, the residuals for leases are still nowhere near fair for the prospective lessee. They might be a percent or two higher than they were before the pandemic, but the real-world value is somewhere closer to +20% these days.

It's getting hard to justify a BMW when the prices keep going up and consumers are still forced to accept the reality of no MSRP rebates, insulting incentives, and unreliable loyalty discounts.
Appreciate 1
      11-30-2022, 02:10 PM   #26
19G20
Lieutenant
155
Rep
530
Posts

Drives: X3 M40i
Join Date: Dec 2011
Location: Florida

iTrader: (12)

Everybody knows how to code remember.

Quote:
Originally Posted by G30 B58 View Post
Job(s).
Appreciate 0
      11-30-2022, 02:13 PM   #27
iroc86
Enlisted Member
United_States
23
Rep
31
Posts

Drives: 2020 BMW 230i 6MT
Join Date: Apr 2022
Location: Southwest US

iTrader: (0)

Quote:
Originally Posted by 19G20 View Post
Buy it out.
Yep, that's been my plan. But then I have to sell it later... and I hate selling cars!
Appreciate 0
      11-30-2022, 02:19 PM   #28
static_void
Second Lieutenant
static_void's Avatar
United_States
966
Rep
253
Posts

Drives: '22 M3 Competition xDrive
Join Date: Oct 2022
Location: Florida

iTrader: (0)

Quote:
Originally Posted by TruthOne View Post
These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?
Hint: They aren't.
Appreciate 6
Cos270608.50
sikotic488.00
TheMaxXHD641.00
chrisk03153.00
NickyC17460.00
      11-30-2022, 02:27 PM   #29
wdeerfield
A family of bimmers
United_States
2745
Rep
7,741
Posts

Drives: '18 G01 X3M40i
Join Date: Jan 2012
Location: Clifton Park, NY

iTrader: (0)

Quote:
Originally Posted by TruthOne View Post
These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?
They're not. Starting to see lots of repos. And with lots of layoffs coming, it'll only get worse. BMW raising prices is expected but they should expect slower sales then as interest rates keep going up as well. We're due for a global reality check and it's starting.
__________________
2018 PB/Black G01 X3M40i | 699M | ZDA | ZPP | ZPX | Maxton front lip | X3M vents | 15mm Spacers | Diamond G20 style grills
Appreciate 5
ASAP10148.50
Cos270608.50
TruthOne1081.00
chrisk03153.00
      11-30-2022, 02:29 PM   #30
TruthOne
Major
TruthOne's Avatar
1081
Rep
1,086
Posts

Drives: 2021 M340i
Join Date: Oct 2020
Location: Oakland, CA

iTrader: (0)

Quote:
Originally Posted by G30 B58 View Post
Quote:
Originally Posted by TruthOne View Post
How are most Americans affording a $800 car note?
Job(s).
Most people make less than 50k a year. Math isn't adding up .
Appreciate 0
      11-30-2022, 02:34 PM   #31
chujk1985
Major
543
Rep
1,029
Posts

Drives: 2023 G80 M3 X Comp
Join Date: Oct 2018
Location: St. Louis

iTrader: (1)

Glad my m3 was just produced and sitting at port
Appreciate 0
      11-30-2022, 02:35 PM   #32
apwm340i
Private First Class
apwm340i's Avatar
No_Country
65
Rep
111
Posts

Drives: 20 X3 M40i
Join Date: Aug 2022
Location: Austin, TX

iTrader: (0)

M550i priced higher than a M3 comp … is this because of it being a v8
Appreciate 0
      11-30-2022, 02:37 PM   #33
G30 B58
Pace Car Driver
1548
Rep
3,164
Posts

Drives: '22 AW G30 B58 M-Sport
Join Date: May 2014
Location: my garage in PA

iTrader: (0)

Quote:
Originally Posted by TruthOne View Post
Most people make less than 50k a year. Math isn't adding up .
Most people aren't buying BMWs.
Appreciate 2
      11-30-2022, 02:52 PM   #34
ASAP
Major General
ASAP's Avatar
10149
Rep
8,622
Posts

Drives: '23 X3 M40i
Join Date: Sep 2012
Location: FL

iTrader: (0)

Quote:
Originally Posted by G30 B58 View Post
Quote:
Originally Posted by TruthOne View Post
Most people make less than 50k a year. Math isn't adding up .
Most people aren't buying BMWs.
but they are buying median priced cars at 44k w a median salary lf 50k
__________________
2 x N54 -> 1 x N55 -> 1 x S55-> 1 x B58
Appreciate 3
TruthOne1081.00
chrisk03153.00
chris7197334.00
      11-30-2022, 02:54 PM   #35
ScreamingChicken
Private First Class
ScreamingChicken's Avatar
United_States
95
Rep
134
Posts

Drives: 2018 M2 MG MT Exec
Join Date: Feb 2012
Location: Oregon

iTrader: (0)

Quote:
Originally Posted by TruthOne View Post
These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?
I believe the average new car sold is around $50k. Lower income Americans buy used, so this average $50k new car is likely being bought by someone with a higher than average income.
Appreciate 2
      11-30-2022, 02:54 PM   #36
G30 B58
Pace Car Driver
1548
Rep
3,164
Posts

Drives: '22 AW G30 B58 M-Sport
Join Date: May 2014
Location: my garage in PA

iTrader: (0)

Quote:
Originally Posted by ASAP View Post
but they are buying median priced cars at 44k w a median salary lf 50k
... and maybe that's why someone mentioned repo's?
Appreciate 0
      11-30-2022, 03:00 PM   #37
TheBingoBalls
Brigadier General
TheBingoBalls's Avatar
Canada
3820
Rep
4,659
Posts

Drives: BMW
Join Date: Mar 2011
Location: Toronto, Ontario

iTrader: (1)

Garage List
Quote:
Originally Posted by static_void View Post
Quote:
Originally Posted by TruthOne View Post
These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?
Hint: They aren't.
I didn't want to say it.

Reality is, when leasing became a popular thing, a lot of people overextended themselves just so they can be seen in a BMW. This is likely still happening but might slow down with all the increases. Not criticizing just stating what we know from data. Regardless of leasing or financing, a lot of people are likely paying more for a vehicle than they should be.

The new C Class is supposed to be the hot thing, but those are hardly moving for a new model.
Appreciate 5
Cos270608.50
chrisk03153.00
G30 B581548.00
      11-30-2022, 03:03 PM   #38
RigaTony1982
Colonel
RigaTony1982's Avatar
2584
Rep
2,053
Posts

Drives: 2023 BMW Z4 M40i
Join Date: Mar 2021
Location: Chicago

iTrader: (0)

Garage List
Between the higher starting MSRPs, lack of incentives/discounts and higher interest rates/money factors, I think a lot of people are going to be in shock, especially if they are coming off a lease that they took out in 2020 or early 2021 (I believe a decent percentage of luxury cars are leased).

If won't affect those purchasing the M cars or 7/8 series cars as much, as one assumes those people have more disposable income. But all those folks who have an X1, X3 30i, 330i, etc. are going to start looking elsewhere.

My wife's lease on her X1 is up in early 2023 and we've started shopping for a replacement. She likes the new one, but payments are going to be like $200+ more per month than her current one. I've seen people on this board and lease hacker getting M340i quotes for $1,000+ a month. My payment is in the 600's. While I like the car a lot, it wouldn't be worth $1,000+ a month for me on a lease.

We're going to just purchase our next cars since the leasing market is brutal at the moment. We'll probably stick with BMW because we've had good experiences, like our cars, and are fortunate enough in our financial situation that we can afford the price increases. At some point though, it may just just not be worth it.
__________________
2023 Z4 M40i - San Francisco Red Metallic/Ivory White
Past: 2021 M340i xDrive - Sunset Orange Metallic/Black w/blue stitching
Appreciate 2
Cos270608.50
      11-30-2022, 03:15 PM   #39
Quadruple VANOS
Captain
Quadruple VANOS's Avatar
1164
Rep
810
Posts

Drives: BMW 335i
Join Date: Aug 2021
Location: America

iTrader: (0)

When dealers are adjusting prices upward to meet market conditions, the manufacturer doing the same is downright appropriate. The dealer will now need to back off their adjustments to meet market acceptance.
Appreciate 1
G30 B581548.00
      11-30-2022, 03:18 PM   #40
Garycoral
First Lieutenant
224
Rep
314
Posts

Drives: BMW iX M60 / 45e
Join Date: Jun 2019
Location: Wisconsin

iTrader: (0)

Quote:
Originally Posted by stoked335d View Post
Picked up my 22 X3M comp at end of May when base prices was just below 70k locked in 2.26% at 60 months. $ 4500 increase in less than 8 months by. Jan 23 on base price. Sold my used car 6k more than what it is worth now as well so $10k savings makes me very happy about my timing.
Good for you Jack!
Appreciate 0
      11-30-2022, 03:26 PM   #41
Jason60051
Lieutenant
Jason60051's Avatar
United_States
547
Rep
401
Posts

Drives: 2018 BMW M3 ZCP
Join Date: Oct 2019
Location: Northwest Chicago

iTrader: (0)

Everything will be on sale in 6-12 months. The tide is starting to turn.
__________________
2018 M3 ZCP
Appreciate 5
      11-30-2022, 03:30 PM   #42
stoked335d
Lieutenant
stoked335d's Avatar
552
Rep
467
Posts

Drives: 2022 X3MC
Join Date: Mar 2010
Location: NJ

iTrader: (4)

Garage List
2002 Mspec Nur  [10.00]
Quote:
Originally Posted by Garycoral View Post
Quote:
Originally Posted by stoked335d View Post
Picked up my 22 X3M comp at end of May when base prices was just below 70k locked in 2.26% at 60 months. $ 4500 increase in less than 8 months by. Jan 23 on base price. Sold my used car 6k more than what it is worth now as well so $10k savings makes me very happy about my timing.
Good for you Jack!
Thanks Gary!

I was planning on keeping my 9 year Audi for another year or 2 but saw this coming with rate hikes and low inventory.
__________________
2022 X3MC
2020 330iX Daily
2002 R34 Mspec Nur -in Canada
2014 S4 APR stg1 444hp retired
2010 335d; 2004 WRX wagon; 1994 300ZX -retired
Appreciate 0
      11-30-2022, 03:31 PM   #43
RigaTony1982
Colonel
RigaTony1982's Avatar
2584
Rep
2,053
Posts

Drives: 2023 BMW Z4 M40i
Join Date: Mar 2021
Location: Chicago

iTrader: (0)

Garage List
Quote:
Originally Posted by Jason60051 View Post
Everything will be on sale in 6-12 months. The tide is starting to turn.
I think you're right here. Makes the timing of this on BMW's end seem odd.
__________________
2023 Z4 M40i - San Francisco Red Metallic/Ivory White
Past: 2021 M340i xDrive - Sunset Orange Metallic/Black w/blue stitching
Appreciate 0
      11-30-2022, 03:36 PM   #44
Fishbuddy
Enlisted Member
29
Rep
36
Posts

Drives: None
Join Date: Jul 2019
Location: CA

iTrader: (0)

BMW can jack up the msrp all they want, but when more people are losing their jobs and with rates keep rising the demand is going to fall off the cliff. When that happens we're going to see 10%-15% off msrp.
Appreciate 3
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 06:35 PM.




7post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST