BMW, Honda- Best resale Value
11-11-2003, 02:18 PM
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BMW, Honda- Best resale Value
11-11-2003, 04:03 PM
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The only reason for BMW being number one is BMW subvents their own lease residuals. Their money factors are really high, so they make their money on interest(cost of the money). In reality BMW has one of the worst resale values. The rest of the list is correct. If you look at the individual lenders(chase manhattan, bank of america, wells fargo) the result would be totally different. BMW financial is setting their residuals high for marketing purposes.
Matt.
Matt.
11-12-2003, 08:47 AM
#6
The only reason for BMW being number one is BMW subvents their own lease residuals. Their money factors are really high, so they make their money on interest(cost of the money). In reality BMW has one of the worst resale values. The rest of the list is correct. If you look at the individual lenders(chase manhattan, bank of america, wells fargo) the result would be totally different. BMW financial is setting their residuals high for marketing purposes.
Matt.
Matt.
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11-14-2003, 11:17 AM
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the only benefit to high residuals is the tax benefit of taking a loss at end of term for the finance company.
however, BMW cranks up the residuals and the money factor because, as was stated, BMW does not hold their value as well as perceived. (the rates are high in order to compensate for the reduced quality of investment)
The other manufacturers on the list (as to be expected) can be had with high residuals and low money factors because the vehicles actually hold their value.
It seems as thought the market is the best indicator of quality.
however, BMW cranks up the residuals and the money factor because, as was stated, BMW does not hold their value as well as perceived. (the rates are high in order to compensate for the reduced quality of investment)
The other manufacturers on the list (as to be expected) can be had with high residuals and low money factors because the vehicles actually hold their value.
It seems as thought the market is the best indicator of quality.
11-14-2003, 12:38 PM
#10
Not as significant as BMW though. You can still lease a Honda through Chase, Bank of A. or Wells Fargo with high residuals. Not same for the BMW.
Matt.
Matt.