New Rates for 2008 models

We have the new lease rates and they appear to be only for the 2008 models left in the system. We are not sure if this is the only change at this point. There are significant money factor decreases and expansion to the low finance rates.

This move by BMW is essentially showing their hand for future moves. They said they were done discounting and pushing cars as of August, apparently September showed them that was not going to cut it in today’s market and things are unravelling.

It is not whether or not they will be discounting the 2009 cars, it is when. Originally we were led to believe that there would be more encompassing changes coming so we will see. BMW can not afford to lose sales in all markets, no company can. They need to move cars in the strongest market (which again is the US?) but at what cost?

If they continue to discount new cars the used market will sink further, they need to choose which way to go, to take a double hit by subsidizing new cars and a hit on the residuals of previously leased cars OR to take the hit in new sales volume. Things are going to get interesting; BMW is playing chicken with the market at this point.

As always we will keep you updated as we get the information.

PDF of new 2008 rates.