4 ms·

Not 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/whi

Not 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 ago
I 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 ago
  Certainly 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 ago
  Leasing 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
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sk5t 11y ago

I 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 ago
Certainly 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 ago
Leasing 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]