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Archive for September, 2012

 

If you bought a luxury car or a sport utility vehicle two or three years ago, you may have a great investment sitting in your driveway.

Right now demand at dealerships for well-maintained, two-and three-year-old, luxury models is much higher than expected. This is good news for consumers who leased any popular premium makes in 2009 and 2010. Luxury cars purchased a couple of years ago are now worth more than they were ever anticipated to be.

Phoenix BMW dealerships are offering consumers, with leased cars that are in high demand, fantastic options to upgrade to newer models. This benefits the dealership, just as much as it does the customer. They can get a new car off their lot and get a “certified pre-owned” used car to sell as well. In some cases customers are getting the brand new models for the same price as their two or three-year-old car.

Supply and demand is the biggest determinant in used-car prices. Automotive Lease Guide provides these estimates of “residual value”, than they predict the value in three years of the day it’s leased. These estimates are usually used to create the leasing contracts. The lease payment is basically based on the difference between the sticker price and the predicted value of that vehicle at the end of the lease.

Luckily, in the 2009-10 period, ALG forecasted that the average luxury car would be 44 percent of its sticker price, after three years. But ALG got it wrong; the average three-year-old luxury vehicle is currently worth about 52 percent of its sticker price, which is a difference of about $4,000.

For example, ALG forecasted that the 2009 BMW X5 would be worth 37 percent of its original sticker price after three years. But in reality, today the X5 is getting an average of 52 percent of its starting price.

BMW is focusing on customers who bought their cars on multi-year loans. BMW North America said that they are looking at customers with leases and seeing what they can offer them that is better. Now is a great time for Phoenix BMW customers who want to trade in their vehicles since dealerships are trying to clear out 2012 inventory to prepare for the arrival of 2013 models.

ALG has already increased its forecasted values for the 2012 models. Meaning that cars leased today will keep a higher percentage of their sticker price and the margin down the road will be less. There is no way of telling how long the used market will be so favorable for consumers, but industry executives are recommending taking advantage of it, while it lasts.

The 2013 BMW X6 remains similar to the previous models, but gains slight cosmetic updates and two new performance packages for the non-M models. BMW dropped the gas-electric, ActiveHybrid, version of the X6, which leaves the trim line up with the six-cylinder X6 xDrive35i and the V-8 X6 xDrive50i. A turbocharged V-8 X6 M caps the lineup.

“BMW has added select design updates and innovative features to further the image of the new BMW X6 as a distinctive model within the premium segment of all-wheel-drive vehicles. If you are looking for a luxury Sports Activity Coupe, there is nothing more versatile and sporty than the X6” says Phoenix BMW General Manager, Randy Scott.

On the exterior the X6 keeps its distinctive tail and profile. The taillights sit high on the trunk, and the entire look resembles a four-door coupe, only beefed up. Some visual changes for the 2013 model include relocated fog lights, reshaped tailpipes, and subtle changes to the famous BMW twin-kidney grille. The headlights have become more similar to other BMW’s and gain white caps with embedded LED lights. Xenon headlights are standard and there are adaptive LED lights optional. With the M Performance Package the exterior gains 20-inch alloy wheels, upgraded exterior trim, and darker exhaust tips.

Inside the X6, everything is visually similar to the previous model, but the dashboard has integrated gauges and a new center screen. The M Performance Package includes unique doorsills, headliners, and footrests. Four seats are standard but there is an optional three seat rear bench that can raise the capacity capabilities to five. Cargo room behind the rear seats has been slightly increased, reaching a total of about 25.6 cubic feet. The rear seats can be folded down increasing the cargo space to 51.2 cubic feet of room.

A look under the hood reveals that the new BMW X6 is both powerful and fast. The xDrive30i’s turbocharged 3.0-liter six-cylinder makes 300 horsepower and 300 pounds-feet of torque, while the xDrive50i’s turbocharged 4.4-liter V-8 is good for 400 hp and 450 pounds-feet of torque. Both engines route power through an eight-speed automatic and all-wheel drive. The M Performance Package adds extra power this year, bumping xDrive30i output to 315 hp and 330 pounds-feet of torque. On the xDrive50i, it makes 440 hp and 480 pounds-feet of torque.

The X6 M was introduced in 2009 and has a commanding output for the turbocharged 4.4-liter V-8 to 555 hp. For the 2013 M model there are reworked exterior features, such as aggressive ground effects, a unique suspension and performance-oriented interior cues. While other X6s have an eight-speed automatic, the X6 M gets a six-speed automatic.

For more information on the X6 or the X6 M, head to your local BMW X6 Phoenix dealer.