SamCarLegion

2022 Acura MDX vs 2021 Lincoln Aviator

Nexx

in before someone compares 0-60 times between these two

schen72

Lincolns look nice but no way I'm trusting them to last 15+ years like my previous Acuras have. If you lease or buy new cars every 5 years, then reliability isn't a concern.

Type34

I LOVE the Aviator, but the lease is crazy high when compared to the MDX ... here's the current "Red Carpet Lease" from lincoln.com:

2021 Lincoln Aviator AWD Reserve (which would be similar to a Base SH-AWD MDX)
$799/mo for 36 months
$4974 cash due at signing

schen72

That comes out to $34k total, which is 70% of the cost of the car. That is crazy ridiculous! In any case, I'm not a leasing type of person. I typically just pay cash and keep cars for 15-18 years.

Type34

Yeah that is insane. Lincoln clearly doesn't see leasing as a viable strategy for its brand.

Years ago I recall reading an article that dove into the leasing infrastructure and why it worked for some brands and others not. One of the original intents of leasing was to get a customer "into" the brand. A young person out of college can't afford to drop $35K on an Accord, so leasing one allows them to be in the brand for 3 years while their income grows. After the 3 years, maybe they can drop $40K on a new Pilot. Or lease again and eventually coin up for an Acura, etc. It was always about the end game.

Then luxury automakers saw an opportunity to pull in younger consumers who wouldn't normally be able to drop $85K on a vehicle. The manufacturers saw that younger drivers and youthful demand meant more marketing opportunities. BUT the trick with luxury brands with leasing is that after 3 years, you still have to sell the car. After 36 months, the vehicle is turned in and the brand new $85K car is now a $50K used car with 36K miles. The purchase payment on that used car will be the same as leasing a brand new $85K model. Why not just lease again? The used car sits and the value decreases (and the lease rate goes up because residuals drop). Hence the luxury lease dilemma.

A brand like Lincoln is clearly pushing for purchasing the vehicle instead of leasing. That's why you see so many "0.9% for 72 months" type ads for vehicles like a Navigator or a Suburban.

Acura is in that sweet spot to be able to offer great leases. They are very reliable, so they're resale is great. They have a relatively small product portfolio so they can control the brand value. They have Honda as a "feeder" brand for consumers to step up into an Acura. That feeder brand also helps their used car market as some people may rather buy a used Acura than lease a new Honda.

Leasing is a tricky balance and Acura thus far has navigated it successfully.

lindros2

I've been leasing for the past 25 years... it has changed. The increase in SUV popularity and crash in sedans has changed the lease landscape tremendously. I looked at 2021/22 cars recently, and can lease an Audi Q5 for less than a Nissan Altima. Explain that.

Why? Manufacturers got screwed on undervalued (overvalued?) cars, so they changed the way the money factor works, tossed in additional fees, and tried to mitigate various state tax regimes by throwing dealer cash at leases.
Genesis was basically charging zero interest after G70's started piling up (MF 0.00003 or something), but now the G80/GV80 are a fortune to lease.

I've done well at times - my 2015/16 Nissans and 2004/2006 Acuras were an absolute steal - but also got stiffed on a BMW when I wasn't really paying attention (traded in 2011 purchase for 2013 lease, so I was playing with house money).

In any case - money factor is the main lever they use. Some scumbag dealers will mark up MF - Nalley/Mike Rezi in Atlanta is a great example. I wouldn't buy a bottle of water from them after their lease games.

Type34

Yep, I've been leasing for about 20 years and I concur. In addition to what you mentioned above is the fact that (most) leases are insured. It's actually the insurance company that gets above / below the residual value once the vehicle is turned in and hits the wholesale market. The money factor (which is basically like an APR) is related to the brand/vehicle and the insurance (risk) that the manufacturer has to cover. Obvious with a brand like Acura, there's less risk and therefore, a lower money factor.

And yes, some dealers will bait and switch the MF because unlike a published APR, many consumers don't pay attention to MF. If you click on "Current Offers", then "Finance", the APR is right up front as the selling factor. For a lease, the monthly payment is the marketed data point and the cap reduction, MF, residual, mileage allotment, etc., aka the actual figures that establish the monthly payment, are in the fine print.

Leasing isn't for everyone and is ripe for dealer exploitation. However, if you know what you're doing, it can the better financial move especially when you factor in aggregate vs. monthly taxes.

YEH

Tellurides are (relatively) expensive to lease and yet, Kia can't keep them in stock (esp. the top SXP).

Sometimes, automakers just choose to take the more profitable route (not subsidizing leases).

Considering that the Telluride was awarded highest resale value for a 3-row SUV by KBB, Kia could offer better lease deals if they chose to do so, but why would they?

ELIN

Tesla does the same thing. Their used cars sell for much more than the "depreciation" they are charging on new car leases. Makes perfect sense that Telsa also doesn't have a purchase option after the lease is up so they can profit off the resale too!