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Putting this kind of safety-related issue aside, the first purchaser probably won't keep the car long enough to have any real problems (at this price level it's
by quicklyfrozen 11y ago
Putting this kind of safety-related issue aside, the first purchaser probably won't keep the car long enough to have any real problems (at this price level it's probably a lease). Even if they do, the dealer will give them a loaner (and may even pick up the car) so problems aren't much of an inconvenience.
It's much more of an issue for those of us who like to buy several year old luxury cars -- they have become much harder and more expensive to repair in the last 10 years or so.
- superuser2 11y agoCan you explain "it's usually a lease?" Doesn't it defeat the purpose of signaling wealth if you don't actually own it? How common actually is leasing at this price level?
- brewdad 11y agoHow can you tell who leased and who bought his vehicle as you cruise down the freeway?
- Outdoorsman 11y agoIt's simply that no one can tell whether or not you own the car, just by seeing you drive by in it, or seeing it in your driveway... The true "equity" in a great number of cars on the road--those financed, or leased, is held by a bank, institution or business.... Remember the old false-fronted buildings in the frontier towns portrayed in numerous westerns...? The wherewithal of those business was likely much smaller than the storefront indicated... In other words, some consumers will go to great lengths to project "success" when in actuality they haven't quite "made it"...leasing, even renting, a luxury car for that reason is quite common around the world...
- quicklyfrozen 11y agoNot sure where they got their data from, but see https://www.cartelligent.com/blog/which-car-brands-do-people-lease-or-buy https://www.cartelligent.com/blog/which-car-brands-do-people... -- claims 67% leasing for MB, and 70% for BMW. It's common because people can't really afford them :-), and don't want to finance the full amount if they're not going to keep the vehicle past 3 years anyway.
- sk5t 11y agoI don't follow the line of reasoning that leasing is cheaper than buying outright. Via a lease you still pay interest on the full value of the asset, plus a negotiated cost having a relationship to depreciation. If leases were bad deals for the auto manufacturers they would probably stop writing them. One nice thing that a lease offers is a defined cost. If your luxury sedan turns out to be a basket case, the warranty covers the problems during the lease, and you can simply wash your hands of it at the end of the term. Trying to sell a depreciated-to-$40K car with problems is not easy.
- superuser2 11y ago> If leases were bad deals for the auto manufacturers they would probably stop writing them. Like 0% financing, it's possible that they're irrational from the perspective of a financial institution but overall good for the manufacturer because more cars get sold.
- quicklyfrozen 11y agoCertainly agree that leasing won't be cheaper in the long run in most cases. But in the short run it will get you a lower monthly payment, and that's all many care about. Also agree that leasing helps fix the cost. Besides reliability issues, you win if depreciation is higher then was estimated up front (the one time I leased, the car ended up worth several thousand less then the final balloon payment so I simply turned it back in).
- vkou 11y agoLeasing is cheaper if you have to pay VAT (10% of the sale price in Washington) - you only pay it your lease payments, as opposed to the full price of the car. If you want to drive a new car every three years, and you buy & resell, VAT will cost you a lot more then a lease.
- deleted 11y ago[deleted]
- justincormack 11y agoApparently there is a huge market for lending things to rich people. Art, fine wine, cars, houses. Being rich gives you vast access to credit.