Insane price on a 7-series lease..

340HP · 16th September 2002, 18:02

QUOTE FROM AUTO SPIES:

If you’re buying the line that 7’s are hard to come by an orders are outstripping the supply, don’t believe it.

The spies went out on a mission with our handy “Auto Spies BS decoder” and uncovered the fact that not only are sales of the new seven slow, but massive inventories are building up at BMW dealers (see pictures above).

And the 2003 7’s are just around the corner…

So BMW just announced to their dealers, an aggressive lease program on 2002 7’s.

Here’s how the deal shakes out…

2002 740i [[typo?? I think they meant the 745i]] (MSRP of around $70K)
$799 for 36 months with around $4K of drive offs…
This number is based on a selling price of the car at $2500 over invoice (trust us, you can get this car for between invoice and $500 over if you make some calls and do your homework). That would mean you could get the $799 car for even less…

Our advice is to find a dealer who has a lot of them in stock and grind them..(We found over 30 7’s on the ground at Irvine BMW)

To put this in perspective, we chatted with owners who leased the SAME car before this program started, who are paying $1250 per month for the same lease!

How do you think these owners are going to feel when they find out that if they had just listened to the Spies, they could have been saving over $450 per month!

That’s $16K over the full term of the lease!

OUCH!

340HP · 16th September 2002, 18:04

2002 BMW 7's getting 'low balled' on wholesale market ..
Resale value of new body style in the tank ..

A quick survey of BMW dealers by the Spies uncovered extremely weak resale values of the new 7-series.

Based on random calls to our 'in the know' wholesalers and BMW dealer GM's, a 2002 seven series with an original MSRP of $75K, is only bringing around $62K wholesale.

What this means to you the consumer is, if you had or have bought one and want to dump it or trade it in on another car, you can only expect to get a number in the low sixties.

Which means you are probably $12-15K underwater on your 745...

Brutal!

Rave E55 · 16th September 2002, 18:14

What do you expect, an ugly car will always be ugly. I hope the Bangle butt will not extend through out the line.

kevin034 · 16th September 2002, 18:53

Bangle = someone should fire his ***.

Finality · 16th September 2002, 18:59

Welcome to last week

http://www.bmwm5.com/vbulletin/showt...threadid=21866
http://www.bmwm5.com/vbulletin/showt...threadid=22131

340HP · 16th September 2002, 19:26

Thank you for those links Finality. Lots of great info.

Too bad for the 7..

CEC · 16th September 2002, 20:05

Using a residual value of 63% (way too high) and a 0 % interest rate I calculated a lease payment around $800. BMW is giving these leases away. I would imagine that this will push short-term revenue up but BMW is going to take a whack when these cars start coming off lease.

MAVERICK · 16th September 2002, 20:16

I'm glad. This will teach the executive board not to mess with success as well as piss off their loyal customers and fans. Maybe in the future, they will have more respect for BMW's traditional, no-nonsense styling that made the past models such a hit.

mweel · 16th September 2002, 20:43

How is the older 7 series resale doing? My thinking here is if the new M5 design sucks. The E39 could actaully increase in value. It's a long shot, but possible.

//MWEELS

340HP · 16th September 2002, 21:02

In my mind if the E60 blows chunks, BMW will seriously delay its lunch and make major changes. I don't think they can afford another butchery like the 7.