Documentation on the new increased residuals

[tiburonh]

I went to a dealer yesterday and he used a 52% residual for a 36 mo/36,000 mile lease.

I have had several BMWs but never leased before so newbie question - can a dealer decide the residual, or do they have to offer exactly what BMW publishes? And is it 52% or 53%?

52% is correct for the 36 month/36000 mile residual.

Dealer must provide the residual rate exactly as provided by BMW -- but the dealer CAN and often WILL try to mark up the money factor (the leasing equivalent of a loan's APR) above what BMW charges.

You should insist (politely, but firmly) that the dealer show you documentation from BMW on the exact current residual and money factor rates from BMW finance and that they give you those exact rates in your deal.

 

[i3Alan]

I went to a dealer yesterday and he used a 52% residual for a 36 mo/36,000 mile lease.

I have had several BMWs but never leased before so newbie question - can a dealer decide the residual, or do they have to offer exactly what BMW publishes? And is it 52% or 53%?

The leasing company decides the residuals, and that is usually the manufacturer. The OC is only available from BMW Financing, but the dealer can mark-up the interest (so I've heard). The residual on the i3 from BMW Financing varies depending on the length of the OC or lease, and the number of miles allowed per year. I think the 36mo/36K mile is 52%, and 36mo/30K mile is a percent or two or three higher. Your dealer should have a chart they can show you with percent add/subtract for shorter/longer term and less/more milage.