Residuals will be higher because at the end of the lease, in 2010, for instance, 2008 MY will still be 2 years old technically but 2007 MY will be 3 years old. So they keep adjusting residual to account for that. It's not as simple as that of course, they probably have a complex statistical formula or some such but I think it's definitely a factor.

In general, if rates remain the same, you're always better off on the lease in the beginning of model year. However, you can't really rely on that because they set their own rates. For instance, the rate on X5 right now is 210, where the rate for M6 is 310. I know that people used to get around 100 with E53 in the past. Several dealers have said lease rates are bad right now but they're better than they have been a few month ago. I don't know exact numbers.

One thing you can do, wait until 2008 MY is about to come out and get approved for 2007. The quote is good for 60 days. If you like lease rates on 2008, get those, if not, go with your existing numbers. Of course, at that point, you won't be able to order your car and will have to rely on the existing stock.