BMW Expands 7.5k Per Year Leases To Every Model

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - December 7, 2020

BMW appears to be the latest automaker to offer lower-mileage leases in a bid to offer consumers flexibility amidst the coronavirus pandemic. According to a bulletin sent to dealers in California last week, the German brand has significantly expanded 7,500 mile-per-year leases and cut lease prices as a result.

Based on our analysis, the changes took effect as part of a regional program on December 2 and have resulted in up to a $20/month cut in lease payment on most models. All BMWs now benefit from a 4% boost in residual value, whether it's the all-new 2-Series Gran Coupe or a performance-oriented M4 Coupe.

That said, the new program is currently limited to residents of California. The Golden State is typically known for having a high percentage of leases relative to purchases. To complicate matters, consumers have had to weigh the pros & cons of leasing since fewer people have been driving due to COVID-19.

As we reported earlier this fall, an increasing number of automakers have been rolling out lower-mileage leases. Lexus and Lincoln introduced leases as low as 5,000 miles per year. Even mainstream brands like Hyundai and Honda have quietly converted offers from 12,000 miles to just 10,000 across much of the country.

While lower prices are undoubtedly a good thing for BMW buyers, the fact is that shoppers won't exactly be getting more for their money. After all, exceeding the annual allotment of 7,500 miles in the event things change over a 3-year lease could result in significant overage charges at a cost of roughly $0.25/mile.

The truth is that deals on BMW's lineup have been relatively stagnant even though year-end specials on luxury cars typically improve this time of year. Meanwhile, Lexus is offering complimentary lease payments worth up to $700 on most models, as well as 0% APR financing across its lineup, including the new IS sedan.

Current BMW offers are set to end on January 4, 2021.

Editor's Note: We've updated this article based on the latest information.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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