Article says Audi has better residuals than BMW, Porcsche,MB
11-22-2008, 08:45 AM
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Article says Audi has better residuals than BMW, Porcsche,MB
If so, why are the lease rates not as good. I know money factor also plays into the rate. But is there any real truth to this?<ul><li><a href="http://www.autoblog.com/2008/11/21/big-surprise-honda-and-acura-have-best-residual-values/">CLICKY</a></li></ul>
11-22-2008, 10:29 PM
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BMW and Mercedes have been subsidizing their leases, which is
why they seem cheap. They have been counting on a high residual to make up the difference. Hasn't happened for them. Lots of C-class returns have flooded the market lowering the value. BMW just suffered huge losses from their leases and is laying off workers due to falling demand. Leasing is becoming more expensive unless you can write it off as a business expense.In this economic climate I feel there will be more purchasing rather than moving the metal with a lease. Many manufacturers are getting out of leasing altogether due to substantial losses. On a side note, Q7 and A5 were just named as vehicles holding the most value.
11-24-2008, 03:27 PM
#4
AudiWorld Senior Member
It's kind of ironic I think: BMW lease rate is low because estimated residual is high which leads...
which leads to more sales, which lowers resale value.
On the other hand, Audi's high residual value is a recent development and largely due to the kind of self-restrain on cheap leases. AoA could have flooded the market with A5 for example, but that would mean low resale value 3 years from now. As is, it probably will hold up much better than the 3 series coupe.
On the other hand, Audi's high residual value is a recent development and largely due to the kind of self-restrain on cheap leases. AoA could have flooded the market with A5 for example, but that would mean low resale value 3 years from now. As is, it probably will hold up much better than the 3 series coupe.
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