Luxury cars have always had the highest lease rate among all vehicle types. Currently about 70% of all new luxury cars are leased, rather than purchased.
Why is that, you might ask?
There are essentially two kinds of luxury car leasing customers: 1) those who are wealthy and can afford to pay cash or could make large monthly loan payments, and 2) those that can’t but want to drive a better car than they could otherwise afford.
Customers of the first type, those who can afford cash or loan payments, usually have multiple vehicles, like to drive new cars every 3-4 years, don’t drive an excessive number of miles, and prefer to use their cash for more productive purposes, such as for investments. Leasing provides a good solution for them.
Customers of the second type typically lease as a way of being able to drive a much better car than they could drive with a loan. Since lease payments are approximately 50% of comparable loan payments, they can drive twice as much car for the same monthly cost. However, many of these people are so enamoured with the low payments that they overlook leasing’s restrictions, or simply don’t know how leasing works. They may drive too many miles and have to pay for the extra miles at lease-end, or pay for unrepaired damages. Or they sometimes want to end their lease early, not realizing that it can be very expensive. Leasing is simply not right for everyone.
Mercedes and BMW Leases
Among luxury car brands, BMW and Mercedes typically have the best lease deals. Since luxury car makers don’t want to appear as discounters, they don’t often have rebates, although most do offer limited-time low-interest loans from time to time. Leasing provides a good way to offer great deals without being obvious about it. Unfortunately, it’s sometimes difficult for customers to know whether a particular lease offer is a good deal or not.
LeaseGuide.com regularly uses its popular Lease Deal Calculator to evaluate luxury brand leases and has found that BMW and Mercedes consistently offers highly rated leases across a large portion of its product line, more so than any other luxury brands. BMW, for example, currently has special promotional lease incentives on over 50 different models and styles. Most of the deals rate Excellent or Outstanding, the best possible ratings. Check with Best Car Deals for current promotional leases from these and other companies.
The “fine print” associated with luxury car special lease incentives will always contain phrases such as, “only available to well qualified customers” and “subject to credit approval.” This means customers must have a good credit score in order to take advantage of the deals. It is highly recommended that any customer seeking such deals always know their current credit score before visiting a dealer to discuss a promotional lease. It’s easy to get credit scores online, for free, with a simple enrollment at services such as Experian.com