Quote:
Originally Posted by AstulzerRZD
Imagine a faked residual of 30k when the actual residual is 25k
25k is what it'd be worth at auction/at like a Kingsway lot.
BMW FS will make
- 27k selling it to a dealer who will sell it CPO
- 2k on interest financing the CPO buyer
- 1k on interest initially
- and maybe there was some other penalty somewhere in the supply chain worth 1k if they reduced production
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But doesn't that 3k on interest have to cover the equity spread between 30k and 27k? Because the lessee only paid the principal down to 30k. So then BMW FS just breaks even. Not to mention the opportunity cost of loaning that 3k... it cost
them something too, to tie up those funds.
Wouldn't they rather
profit 3k on interest, by financing the car to someone who owes the entire value of the car?!
In either case they could pocket the 1k in avoided supply chain penalties.
Shit's crazy, I don't get it. What I
do get, is that I should be leasing from now on... and then after returning it, go buy the car as a CPO for a few thousand dollars of discount lol.
edit: oh even better: can you avoid all the interest owed on a lease, if you just
immediately pay all your payments in a lump sum? and then you don't even pay any interest!! Just pocket the difference by buying the CPO from the dealership for a $3k discount!