Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

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Thread: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

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    Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Don't Believe Everything You See
    polk.com
    August 1, 2011
    By Tom Libby


    Have you ever been driving on a highway, noticed how many BMW, Mercedes-Benz and Audi vehicles there are, and wondered how so many people have the money to buy all those fancy cars? (I have.) Well, in many cases the drivers may not have the money because they don't own the cars!

    Industry-wide, leases comprise about a fifth of all new vehicle registrations, but within the luxury market, lease penetration is more than twice as high at 45%. Three premium makes: BMW, Infiniti and Mercedes-Benz, actually have national lease rates at or above 50%.

    Furthermore, several popular compact premium cars have lease rates above 60%, with the Mercedes-Benz C-Class approaching 70%. Leasing is not limited to smaller vehicles, as all five of the leading large premium sedans have lease rates above 50%. Two of every three 7-Series are leased.




    Full article at link above.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Always lease a German car, you do not want to own it out of warranty.
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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Mercedes and BMW are always advertising bottom basement lease deals and incentives on TV. You would think that these so called "high class" German cars wouldn't need to pour on generous leases and incentives to move cars. I don't doubt that some of their big sales increases this year are attributed to that alone.

    It doesn't surprise me that Lexus (and Land Rover) has one of the lowest % of leases. Everybody I know with a Lexus owns the car and keeps it for many years. You also hardly see deals advertised from Lexus.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    makes sense
    if you have the money to get a premium luxury car, chances are you'll want to buy a brand new one every few years.
    If you're replacing your car with a new one that often, a lease starts to look like a good option.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Many if not most luxury vehicles are "business" vehicles that are written off on someone's taxes. Several years ago, the tax law was changed so the depreciation was spread out over 5 years and the depreciation writeoff wasn't enough when they wanted toi trade. The lease costs can be totally written off on taxes. The lease advantage is with the taxes whether or not the driver has the money to pay for the car outright.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    how many are leased in a company name which makes the lease payments tax deductible ??
    Last edited by motorman; 08-01-2011 at 07:09 PM.
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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    High lease rates for the Germans really aren't a surprise. Nice article nonetheless.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Quote Originally Posted by Jossshy View Post
    makes sense
    if you have the money to get a premium luxury car, chances are you'll want to buy a brand new one every few years.
    If you're replacing your car with a new one that often, a lease starts to look like a good option.
    For the C-Class crowd, I'd wager that there are a lot of wannabe's that are leasing.

    For the 7-series, it's because these cars fare terribly in terms of depreciation (althogh one one pay for the depreciation in the lease rate, but people do not nderstand leasing). Buy one off-lease at three years, and keep for three, but no longer.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Quote Originally Posted by mercy09 View Post
    Mercedes and BMW are always advertising bottom basement lease deals and incentives on TV. You would think that these so called "high class" German cars wouldn't need to pour on generous leases and incentives to move cars. I don't doubt that some of their big sales increases this year are attributed to that alone



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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    I'm surprised the overall lease rate is only 20%. I figured it was higher than that given the steady stream of new vehicles constantly on the road.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Quote Originally Posted by cadsrbest View Post
    Always lease a German car, you do not want to own it out of warranty.
    This much is true!

    Quote Originally Posted by mercy09 View Post
    Mercedes and BMW are always advertising bottom basement lease deals and incentives on TV.
    This too is very true.


    For the reason of warranty coverage, the high lease rate for the Germans makes sense. I have friends who get new Mercedes all the time and NEVER keep them beyond the lease term, EVEN IF THEY LOVE THE CAR.

    But also, there is this: People who can afford luxury cars usually have some money. They didn't get that money by walking into a car dealer and writing out checks for Forty, Fifity, Sixthy, Seventy thousand dollars. To lay this kind of cash out for a depreciating asset is lunacy, and people that do such things are either careless or nouveau riche showoffs.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Quote Originally Posted by megeebee View Post
    .

    But also, there is this: People who can afford luxury cars usually have some money. They didn't get that money by walking into a car dealer and writing out checks for Forty, Fifity, Sixthy, Seventy thousand dollars. To lay this kind of cash out for a depreciating asset is lunacy, and people that do such things are either careless or nouveau riche showoffs.

    .
    Probably the case at the higher end (i.e. 7 series) but at the lower end (C-class) it's probably because leasing is the cheapest way to get into a status symbol for people who couldn't afford one otherwise.

    It seems most consumers see these cars as disposable fashion statements, to own while hot and in style and to ditch as soon as the warranty runs out or a new model is unveiled. This takes a big toll on quality as the manufacturer has little incentive to invest in that area.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    I'm not sure leased car sales are per se worse than sales in which people aim to own. I think people who lease or buy do so for various valid reasons.

    Quote Originally Posted by cadsrbest View Post
    Always lease a German car, you do not want to own it out of warranty.
    Indeed.

    Quote Originally Posted by Greg Burr View Post
    For the C-Class crowd, I'd wager that there are a lot of wannabe's that are leasing.

    For the 7-series, it's because these cars fare terribly in terms of depreciation (althogh one one pay for the depreciation in the lease rate, but people do not nderstand leasing). Buy one off-lease at three years, and keep for three, but no longer.
    Quote Originally Posted by megeebee View Post
    This much is true!

    This too is very true.

    For the reason of warranty coverage, the high lease rate for the Germans makes sense. I have friends who get new Mercedes all the time and NEVER keep them beyond the lease term, EVEN IF THEY LOVE THE CAR.

    But also, there is this: People who can afford luxury cars usually have some money. They didn't get that money by walking into a car dealer and writing out checks for Forty, Fifity, Sixthy, Seventy thousand dollars. To lay this kind of cash out for a depreciating asset is lunacy, and people that do such things are either careless or nouveau riche showoffs..
    Quote Originally Posted by Mr. Burns View Post
    Probably the case at the higher end (i.e. 7 series) but at the lower end (C-class) it's probably because leasing is the cheapest way to get into a status symbol for people who couldn't afford one otherwise.

    It seems most consumers see these cars as disposable fashion statements, to own while hot and in style and to ditch as soon as the warranty runs out or a new model is unveiled. This takes a big toll on quality as the manufacturer has little incentive to invest in that area.
    I think people might be painting with broad strokes. I know people who buy certain luxury cars on lease because they desperately want people to think they are rich. I know people who purchase their luxury vehicles outright precisely because they have the cash to do so and who subsequently drive them into the ground; absolutely nothing wrong with that. And I know people who own businesses who want to project a certain image to clients-no, driving a GMC Sierra pickup doesn't make quite the same statement as a 750 does-and so lease their luxury vehicles. Again, people who lease or buy do so for various valid reasons.

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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Quote Originally Posted by cadsrbest View Post
    Always lease a German car, you do not want to own it out of warranty.
    That's exactly what I've heard. I pitty those poor people who get them used ... sans warranty.
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    Re: Most Luxury Cars are Leased: BMW, Mercedes and Infiniti Lead the Pack

    Quote Originally Posted by rand49er View Post
    That's exactly what I've heard. I pitty those poor people who get them used ... sans warranty.
    I hear you. I own a Certified Pre-Owned 2007 BMW 335i. CPO warranty expires in Feb. 2013. Needless to say, I will not own this vehicle in February 2013.
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