Thread: residual
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      09-22-2021, 02:24 PM   #19
MisterGoober
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While the residuals *should* be set by actual depreciation, I'm willing to bet that the manufacturers manipulate them based on market conditions and which models they need to move.

Right now, there isn't any incentive to inflate residuals which makes leasing attractive without needing heavy incentives to erode the brand.

I believe the previous gen 4-series had a 56 or 57% residual for a 36/12 whereas now it's 54%.

BMW believes they won't have a problem moving these and likely won't add incentives or increased residuals until inventory starts to pile up. Probably just the reality of the current market.
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