So much talk about leasing... doesn't anyone buy?
02-05-2007, 01:31 PM
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As I am getting ready to dive in for the purchase of a new (or potentially CPO), I've perused this and other forums for discussion about purchase prices. Oddly, the posts about purchase prices are few and far between... what gives?
I would assume it's the same ol' "lease vs. buy" decision criterial where a short term "rent" is more affordable and caters to the masses. But I would still think there would be a fair share of outright purchases, especially with the high resale value attached to this model and the fact that the target "buying" demographic would be on the higher side of most income brackets.
So am I missing something? Why is the lease so appealing to what I would have thought was a very affluent target market?
I would assume it's the same ol' "lease vs. buy" decision criterial where a short term "rent" is more affordable and caters to the masses. But I would still think there would be a fair share of outright purchases, especially with the high resale value attached to this model and the fact that the target "buying" demographic would be on the higher side of most income brackets.
So am I missing something? Why is the lease so appealing to what I would have thought was a very affluent target market?
02-05-2007, 01:36 PM
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Regardless if it's a purchase or lease, you still have to negotiate the price of the car. Always, always try and get the best price.
02-05-2007, 01:40 PM
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My Ride: 2007 E63 AMG | Obsidian Black | Schwarzes Nappa | Black BirdEye Maple | Premium II Package | Electronic Trunk Closer | Parktronic
Engine: RPi/Powerchips custom ECU tune, RPi Ram Air Kit (BMC filter, scoops), RennTech Sport exhaust, secondary cats, charcoal and resonator delete, custom AAA x-pipe
Exterior: 50% side windows / 35% rear window Formula One Pinnacle Series | Flat AMG hood emblem
Suspension: Renntech Lowering Module
Wheels/Tires: Radenergie R10, Falken FK452 245/30/20, Yokohama ADVAN Sport 285/25/20
-----------------------------------------
2005 545i Sport SMG | Ti Grau | Schwarzes Dakota | Anthracite Maple | Logic 7 | Nav
Engine: Custom AFE CAI, Superchips ECU remap, Sprint Booster, RDSport Dual Exhaust Conversion with Quad Pipes and X-pipe, 3 resonators deleted, 90mm tips!
Exterior: M-Tech Aero kit | M5 Mirrors | M5 Rear Bumper | Trunk Lid Finisher | Vorsteiner decklid spoiler | 50% Formula One Pinnacle Tint
Suspension and Brakes: Bilstein PSS9 coilovers, JBT BBK: 16" cross-drilled rotors, 8 piston and 15" cross-drilled rotors, 4 piston
Wheels: VIP Modular VR 02 20x9F, 20x10R | Toyo T1R 245/30/20F, 285/25/20R
Lights: PIAA 4150K Xtreme White Plus fog lights, AIB v3
MOST IMPORTANT: Hardwired V1; =)
ED Date: 4/7/05, Re-delivery date: 5/21/05
Not quite. There are many people that lease whom are wealthy with plenty of liquid assets.
02-05-2007, 01:44 PM
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Depends if it is a business or personal expense. Cash is king and still the least expensive way to buy a car. Leasing saves one the trouble of negotiating on a trade in and makes the purchase of the next car easier.
02-05-2007, 01:59 PM
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When i looked at leasing in the uk. If the price was right it was always for 10,000 miles per annum. I do 52,000 miles per annum and leasing was impossible. They quite simply want a car they can actually sell when your finished with it.
02-05-2007, 02:53 PM
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Originally Posted by zen' post='387794' date='Feb 5 2007, 03:44 PM
Depends if it is a business or personal expense. Cash is king and still the least expensive way to buy a car.
Regardless of income, one should look at a lease as pure economics (i.e. which one is cheaper). If the money factors are high (e.g. M5), I would prefer to pay cash, but with a money factor of 0.0005 (1.2% APR) that used to be available, it generally makes much more sense to lease (especially if you get a business tax writeoff or only keep cars 2-3 years) as you can invest the $60K or so in a short-term bond fund at 3%+ after tax.
There are many threads here explaining additional positives/negatives of leasing.
02-05-2007, 03:03 PM
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Originally Posted by zen' post='387794' date='Feb 5 2007, 02:44 PM
Depends if it is a business or personal expense. Cash is king and still the least expensive way to buy a car. Leasing saves one the trouble of negotiating on a trade in and makes the purchase of the next car easier.
02-05-2007, 03:13 PM
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I can buy my cars cash and thats what I did up until 7 cars ago, including wifes cars, when I started to lease. I ran a cost comparison from initial aquisition through disposition and if you traded your "owned" car in (verses trying to sell it yourself) towards a new car each time, the numbers proved out the same in either scenario. With leasing giving you the option after the initial lease term to buy, extend the lease or give it back which was enough to push me over to leasing.
Just for the record - only two cars went back after initial lease term was over, two cars I extended the lease one or two years, and one car was bought by my younger brother. Two cars are still under lease. My 545is is up in April 2007 and if they reduce my payment I will probably extend it for another year.
Anyone have experience with releasing an E60 yet as far as new lease payment?
Just for the record - only two cars went back after initial lease term was over, two cars I extended the lease one or two years, and one car was bought by my younger brother. Two cars are still under lease. My 545is is up in April 2007 and if they reduce my payment I will probably extend it for another year.
Anyone have experience with releasing an E60 yet as far as new lease payment?
02-05-2007, 03:23 PM
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Originally Posted by zen' post='387794' date='Feb 5 2007, 05:44 PM
Depends if it is a business or personal expense. Cash is king and still the least expensive way to buy a car. Leasing saves one the trouble of negotiating on a trade in and makes the purchase of the next car easier.