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Message: <blockquote data-quote="wirelessjunkie" data-source="post: 236838" data-attributes="member: 58">Crap answer... Well, residuals are important when you are considering a purchase.  BMW offers a low interest rate of 1.78% for 7 year financing for a new 525i Sports with a downpayment of about RM40k and RM4.5k monthly installments.  The loan outstanding after 24 mths and 36 mths are approximately RM275k and RM225k respectively.   Hence if the residuals are above the loan outstanding then it is only the question of how much of the initial deposit you can recover.  Monthly installments are paid by the company hence is not in question.  It's like paying RM40k to use an E60 for 2 to 3 years.  It will be easy for the buyer to obtain financing for a 2-3 year old car. The comparison would be to buy a Japan Spec 2004 525i or 530i for about RM260k and take a 5 year loan with RM4.5k monthly installments.  Loan outstanding after 24 mths and 36 mths are RM153k and RM107k respectively but then it would be a 5-6 year old car and the new model should be out in about 2/3 years time. The new car will have full warranty plus new toys whilst with the older car, I stand to gain some $ when I sell the car then but would be open to repairs, replacement parts etc without warranty. If residuals are likely to float in the region >RM272k after 24 mths or >RM225k after 36 mths then I will pick up the new car.</blockquote>