huy33

I would think leases will hurt the brand's used car value. Aka there'll be a larger number of cars coming off leases every 2, 3, 4 years VS people selling their cars 2, 3, 4 years.

grabber2

Leasing was very attractive for entry level luxury like C-class, 3 series, Infiniti G...... its $300~400/month + full warranty & BMW even offer 3 year no cost maintenance. When the lease end, return it & dealer offer you a loyalty discount on a new lease that sometime its hard to pass. Its sound like a no brainier for many people. Why buy over lease since buying = maintenace, repair, resell, & etc. Lease is a perfect fit for those want new car every 2~3 years. Moreover, the total lease payment might be lower than the actual depreciation.

For Ex, a 3 years lease on a $35K car ususally goes for about $400/mo x 36 = $14400 vs 55% residual = $15750. you also pays 50% less sale tax. The dealer's resale price might be higher but your trade-in value is always lower.

However, I only think its a good idea to lease a entry level luxury car.

caddyowner

I think dealer love leases because they get a good supply of CPO eligible cars to sell at higher margins than new cars.