Has The TESLA EFFECT Made BMW's Magic Resale Values Disappear, Which Fueled Unbeatable Lease Prices?

The pressure is on. Also, ALL their Tesla competitors like the iX3 and i4 are coming out in 2020 or later. The only new EV coming next year is an electric Mini. A year is a very long time to let your competitors get further ahead.

#BS

Making a better horse carriage... Indeed even just a couple of years of delay would wreak havoc as the financial valuation of BMW has dropped below Tesla's. Chalk in another victim for diesel.

Because Tesla is the new thing for the pricks & yuppies.

If you want to find the most hateful a-holes, just follow a Tesla and wait for the driver to get out.

the most pretentious douches as well with their look at how witty I am license plates

The mass market Tesla Model 3 and the ANY BMW are not competitors - BMW is a true premium brand - Tesla has itself stated that the Model 3 was designed to be a MASS market entry level competitor -even though its price prevents that.

In addition - All Teslas are EVS - while BMW is an ICE car - ICE cars still hold more than 95% of the market. THere is no indication that the ev market exists beyond its current form - and worse - it is likely to cool down after the deposits are fulfilled on the Model 3. I cannot see WHY Tesla was even mentioned in this article.

One additional problem for all - the Auto Market is cooling - and many manufacturers are putting outrageous offers to keep their vehicles moving. RIght now FCA has an offer on their BRAND NEW RAM Pick up - that offers over $10,000 off a higher line version. WHile that will sell the trucks for a while -the market is showing signs that it is saturated.

What is happening to BMW is twofold -
1 - The market is moving toward Crossover Vehicles
2 - BMW is no longer the leader in the Premium sector - and they are struggling to define their niche in the marketplace - which was once small performance sedans

@TomM, from a BMW owner myself, your quote "BMW BMW is a true premium brand" LOL. Are you forgetting X1, X2, 3/4 series? Even new X3 is still pretty standard.

BMW resale value was never "magic". They flooded with too many cheap leases and resale drop after 50K warranty.

The trade ins for Model 3 would say otherwise... the Model 3 is pitted squarely against the 3-series

Also, interest rates are rising and the fed has indicated they will continue to raise rates through next year. I am sure this is factored into their lease planning.

Personally I believe BMW "aren't worth the lease price" because the perceived value and resale values have suffered from the company's ultraconservative styling from each generation to the next and its movement into mass markets chasing volume. Why buy a new one if your old one looks the same? Why pay premium prices when its no longer as exclusive?

I think we "Luxury/Premium" sector needs strict parameters that automakers must achieve before they can be considered a Luxury car. Is it zero maintenance charges for 5 years 50k, leather interior with faux aluminum trim, faux wood trim or self driving? Sit in an S class then a 7 series and tell me that BMW really deserves the luxury/premium automaker moniker.

BMW's resale value plummeted because they did so many cheap, short-term leases that they flooded the market with used BMWs. That more than anything is the cause.

tesla is not luxury. tesla spies are douches who troll us all with tesla headlines

Obviously, Auto Spies is involved in a torrid love affair with Tesla at the expense of every other car maker.

Wake up people...luxury nameplate or not the Model 3 absolutely competes with BMW. It’s not as if some guy who was shopping for a civic is waking up one morning and deciding to drop $50K+ on a model 3.

That's just dumb

Awwwwwww, poor BMW shoppers.... After years finally, BMW took away the unrealistic high residual to have the low payment when the car wasn't worth close to $8-$10k of the buyout at the end of the lease.

Does anyone know what kind of trade-in values (% of original cost) Teslas are getting at non Tesla dealers. I read or heard somewhere that many main line brands are not taking Teslas as trade-ins or highly discounting them. Anyone have some real hard credible numbers?

Tesla's are NOT trade-able for a non-Tesla product, except perhaps in California.

As a reference point, EBAY Motors has about 300 Tesla's for sale and about 100 of those are the "P" Model that some sucker paid $40,000 more for just to do burnouts at traffic lights.

This is a Tesla problem, not a BMW problem. BMW's problem stems from its rudderless design strategy and its hodge-podge of product lines.

At least there is third party data on what Tesla's are worth.

Perhaps an industry spy can check on the used car auction websites and tell us what 2 year old Tesla's are being auctioned for (if there are at all).

Resale values are high across the board for Tesla's. Even 6 year old models are not dropping below $30k. You can walk into any Carmax with a Tesla and get a decent quote. Tesla's trade in offers on the other hand are pretty terrible.

SanJose? I assume you live in California?

Anywhere else, what you describe does not exist.

Yup, I'm in California. I googled Tesla's for sale in Texas and the prices seemed very similar. Have any examples of non-salvage Tesla's under $30k anywhere in the country? If so, I know a lot of people that would gladly pay to ship there over here.