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Discussion Starter · #1 ·
"third-party residual trackers back him up, stating the Alfa has a stronger residual value than the current luxury-brand leaders.

Hogeveen claims the Giulia has a 50 percent residual after 36 months, compared to 41 percent for the Mercedes C300 and 38 percent for the BMW 330i. That 9 to 12 percent difference is equivalent to thousands of dollars—which gives Alfa Romeo more room to play when offering lease terms."

http://www.motortrend.com/news/alfa...95fcc2204d3011c83fcec7c&utm_medium&utm_source
 

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2020 Alfa Romeo Giulia Sport Ti AWD
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"third-party residual trackers back him up, stating the Alfa has a stronger residual value than the current luxury-brand leaders.

Hogeveen claims the Giulia has a 50 percent residual after 36 months, compared to 41 percent for the Mercedes C300 and 38 percent for the BMW 330i. That 9 to 12 percent difference is equivalent to thousands of dollars—which gives Alfa Romeo more room to play when offering lease terms."

http://www.motortrend.com/news/alfa...95fcc2204d3011c83fcec7c&utm_medium&utm_source
Aimed at moving all the base models cluttering showrooms and dealer lots?
 

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2019 Rosso Competizione Stelvio Ti Sport Nero Edizione
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On what planet?

"Hogeveen claims the Giulia has a 50 percent residual after 36 months, compared to 41 percent for the Mercedes C300 and 38 percent for the BMW 330i.
This is nonsense. The residual values you will be quoted by Mercedes and BMW on 36 month leases will be over 50% for sure. Where do these authors get this stuff? Many luxury brands will typically be in the 54% to 56% range.
The current 50% residual Alfa Romeo dealers are offering is likely lower than MB and BMW, but this is a new car with no U.S. resale history. You should choose the Giulia because it is gorgeous and fun to drive and not the same as every other C300 and 330i on the street, not because of the residual value.
 

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Wow, that writer is extremely misinformed.

The BMW is the better deal residual wise because the residual is 62% currently on their 36 month leases. Meaning you are paying 38% of the MSRP for residual, compared to 50% of the MSRP for Alfa, aka the alfa being a worse value.

BMW counters this with a sky-high interest rate that they keep rising, while interest rates for the Alfa are almost non-existant. So the deals end up being similar.
 

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Discussion Starter · #5 ·
but this is a new car with no U.S. resale history.
This article popped up on my Facebook, and I thought it was good to read that they are at least speculating a good residual value for the Giulias (for now).
Only time will tell (reliability and owner satisfaction will have a big part to do with that, but not sure if the comparison test ratings will help).

Regarding Mercedes and BMW and many high end luxury cars, have you ever heard of Depreciation Kings? I almost bought a few at the bottom of their depreciation - a $150k car for $20k. Was very tempting...

http://jalopnik.com/5982789/the-most-depreciated-cars-of-the-past-ten-years
 

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No doubt!

Wow, that writer is extremely misinformed.

The BMW is the better deal residual wise because the residual is 62% currently on their 36 month leases.

You are right on the money. When I was shopping around for my Giulia, I also looked at the Jaguar XE and they were doing 62% residual lease deals at a time when Alfa Romeo was doing 48%. The monthly payments were more than $200 less for the Jag.
Eventually, Alfa came up to 50%, and the dealer gave me a deep discount on the MSRP so I was able to get the car I really wanted, instead of the one that made more sense economically.
I still paid a little bit more for my Giulia than for a comparably priced XE, but the difference wasn't so crazy that I couldn't justify it.
 

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Residual values are BS, they are basicaly what financing organization says they are and not real residual value (resale value) of the vehicle after end of lease.

Have you ever met anybody that actually bought the C, A or 3 series car after 3 years lease expiration for 62% of what was supposed to be the price ot the new car?

They get away with that because they finance the deal with their own money and they get to put people into new car every 3 years.

For example, used BMW 3, which was new 50k, most definitely is not worth 31k after 3 years and 36k miles, specially so if new model comes out in the meantime. BMW is particularly obvious in this game...similar Audi lease costs quite a bit more even though both cars are priced similarly new and are on used market worth pretty much same money after 3 years.

Manufacturers like Alfa or Jaguar simply can not afford this game (most leases are financed by third party financial institution)

Cost of money is pretty much the same in all cases but BMW for example swallows big chunk of that cost (de facto it discounts the car by 25%). It is all good and great as long as they keep moving people into new cars every three years, if and when these musical chairs game stops their lease rates would go right up...

That is why most BMWs you see on the road are leased and most Audis are bought, same will be for Alfa until and if ever they are able to subsidize the lease to the point of competing with BMW financial services
 

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It must be true. I read it on the internet.
 

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Residual values are BS, they are basicaly what financing organization says they are and not real residual value (resale value) of the vehicle after end of lease.

Have you ever met anybody that actually bought the C, A or 3 series car after 3 years lease expiration for 62% of what was supposed to be the price ot the new car?

They get away with that because they finance the deal with their own money and they get to put people into new car every 3 years.

For example, used BMW 3, which was new 50k, most definitely is not worth 31k after 3 years and 36k miles, specially so if new model comes out in the meantime. BMW is particularly obvious in this game...similar Audi lease costs quite a bit more even though both cars are priced similarly new and are on used market worth pretty much same money after 3 years.

Manufacturers like Alfa or Jaguar simply can not afford this game (most leases are financed by third party financial institution)

Cost of money is pretty much the same in all cases but BMW for example swallows big chunk of that cost (de facto it discounts the car by 25%). It is all good and great as long as they keep moving people into new cars every three years, if and when these musical chairs game stops their lease rates would go right up...

That is why most BMWs you see on the road are leased and most Audis are bought, same will be for Alfa until and if ever they are able to subsidize the lease to the point of competing with BMW financial services
BMW definitely has artificially propped up lease residuals for a long time, but they still made their money back with pretty high interest rates. Wasn't a killing, but they weren't too dumb. The MSD program was why you could potentially score an insane lease on a BMW if you were a savvy shopper. Get a car during one of their high residual months (usually early fall), combine it with maxing out MSD to push the interest rate down tremendously, and get a big discount of MSRP and could easily get a nice loaded 3-series for under $250-300 a month. However that game is long gone since BMW discontinued the MSD program, hasn't changed residuals since the beginning of the year, and have been bumping up the interest rate every month.
 
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