Quote:
Originally Posted by illirep
Aren't residuals on a stand alone basis nearly useless? When considering the residual without the money factor, you are only working with half of the equation.
In my experience, with higher residuals, they do less incentives on the money factors. And when residuals come down toward the end of a model year, they incentivize the money factors to balance it.
Perhaps I'm missing something!?
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Bmws money factors do not fluctuate wildly month to month and are the same across their model range. However in the last two years they had progressively trended upward. The residuals see more variation during the annual sales cycle as well as incentives