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Reverse German arithmetic.... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Thu, 24 Jun 2004 14:19:54
In Reply to: Re: Lease programs contributing to high depreciation..., Atul, Thu, 24 Jun 2004 13:42:42 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Good points, and very close to reality. The 36 month BMW residual for a 325i is 59%. The equivalent Saab 9-3 Linear is about $2k less MSRP if you put leather and fold down back seats in a 325i and the Saab has a huge incentive and the Saab Financial residual is 47%.
So the BMW costs $6k ish more and worth $3k ish more after 36 months, so the Saab started lower and finished lower, but the actual depreciation in pure dollars for an equivalent model is about the same or less. Although the BMW percentages look better.
That's the essence of "German Arithmetic". I like to use 9-5's and 5 Series as an example, pay $10k more for the German car and it will be worth $5k more later.
posted by 63.197.222...
, Thu, 24 Jun 2004 14:41:56
, Thu, 24 Jun 2004 19:59:12, Thu, 24 Jun 2004 20:04:18, Fri, 25 Jun 2004 19:20:24, Fri, 25 Jun 2004 21:10:41
, Thu, 24 Jun 2004 15:49:00, Thu, 24 Jun 2004 14:19:54 <-- Viewing This Message
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