Quote:
Originally Posted by Alan Smithee
Discounted new purchases/leases combined with an increasing flood of lease returns is a double-whammy for re-sale values.
Add in the increasing amount of obsolescence and unreliability BMW is building into their cars, and the great strides the American and Korean manufacturers are making at lower price points, and their "premium" brand formula is not a sustainable one, IMO.
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1) BMW and Lexus have been discounting and are mainly leased but residuals are still strong. The used car market has also increased in demand with the "down" economy. So, they off-set any projected decline in residuals.
2) I know you aren't comparing a Kia to a BMW.