ostrich

I was checking out some sales statistics and found that in 2006, the best selling entry level luxury car was BMW 3 series. It's way ahead of the TL, G35 and the C class. It also is probably the most expensive one in its class too.

Now, did BMW achieve these figures because it mostly leases out its cars? It seems like their monthly lease payments are ridiculously low for the price of the car. Also, if you look at the Edmunds.com BMW 3 series forum, most of the people talk about how much they are leasing the car for, but not how much they are buying it for. In fact, one of my staff at work got rid of her Ford Taurus, and then leased a 3 series. She said that it was the same monthly payment as her Ford Taurus, so why not lease a BMW instead?

I wonder if the sales figures include only the number of units purchased, would the BMW figures drop right down?

ostrich

BTW, here's the list:

1. BMW 3 series 107,016
2. Lexus RX 95,569
3. Lexus ES 67,251
4. Acura TL 65,503
5. Cadillac Escalade 54,163
6. Cadillac DeVille/DTS 54,053
7. Infiniti G 53,008
8. Cadillac CTS 50,024
9. BMW 5 series 49,296
10. Lexus IS 48,729

Curiously, the 3 series was #2 last year, followed by #3 Acura TL and #4 Infiniti G. Cadillac is doing surprisingly well and sadly, the Lexus yawn-mobiles are up there in the top 3...

picus

BMW does have very competitive lease rates, but they are mostly on the 7 series right now. I think the last time I saw a comparo chart their lease to buy was similar to most other manufacturers.

Shoofin

The best rates are on the 5 series, then 3 series right now. The '07 5 series is almost impossible to get, yet that car has the best deal going on. The '08's are right around the corner. I glanced at the April program for a second, but didn't look well enough to see what significantly changed. Right now, in terms of the lease programs, compared to when they were great, the X3 and X5 are too expensive, I think the 3 series got slightly worse (from last month's program), the 5 series stayed the same, and I don't remember what happened with the 6 or 7 series, but I don't think it changed from last month. I'll check when i'm back at work on Wednesday.

Beltfed

Most rates went up in April, they have someone new setting the programs apparantly. I heard they are going to see how sales go and adjust from there.

The 07 7 series went up alot because there are very few around at this point and allocation is tightening up.

But BMW is giving a .0070 credit on the rate for Owner loyalty for certain models (they'll extend out 6 months past your prior lease term end date).

That aside new model year rates are always a bit high and then gradually come down.

Sales figures include lease/finance/cash deals.

ggesq

iTrader: (1)

BMW offers great lease rates on the 3 series. Methinks that's one of the main reasons why they lead the segment in sales i.e. in addition to its snob appeal and superior chassis and driving dynamics.

ostrich

Thanks for your input, everyone!

However, are there statistics out there to show that BMW's lease a higher percentage of their vehicles, comparing to say, Acura or Infiniti?

fuzzy02CLS

iTrader: (2)

For people I know yeah they lease them. Payments are low compared to sticker price, but that comes with low millage limits & high down payments.
I don't see dropping $4K on a 3 series & you only get 10K miles/year for a $399/month payment.

picus

Er, sorry. I was talking Canada. Stupid of me. I still think the lease rates and % off MSRP is best for the 7 though.

afici0nad0

that mileage condition really puts things in perspective.

10K miles? some people here eat that up in 3 months.

Trackruner228

iTrader: (1)

Another thing that has to be nice about leasing a bmw is besides the payment, insurance, and gas you never have to put a dime in it. They have that free mantaince thing so if you lease it you will never have to pay anything extra for it which I think for a lot of people has to be a nice thing.

gdcwatt

The Canadian entry was a 174hp 323i, and many of those US maintenance 50,000 mile freebies don't apply here (clutch, brakes, wipers...). Anyhow, if you want some extra stuff on that car, it's nice that the residual is high, if you lease, because then you can afford the $1,000 for paint, $2,000 for cruise control, $1,000 for a folding rear seat, and the [all your cost] significant premium for "real" summer and winter tires of the run-flat variety.

If I had bought that car, however, I would be kicking myself now because of the quantum leap in depreciation afforded by the 07 model's new 200hp 2.5L engine.

fdl

BMW leases are low because the car maintains its value better than an acura or infiniti.

When the dealer can still sell the car for good money after the lease is up, they can afford to rent it to you for alot less.

Jackygor

I forgot where i read it, and i have nothing to back it up, but i believe 80% of BMW cars are leased.

kmac_1906

One of my friends leased an X5 and he said a lot of people lease BMW's and lease the updated version again when there lease expires. It really isn't a bad way to look at it if you stay within the miliage.

sonnyboyacura

So it makes sense to have two cars if you're going to lease? I'd like to lease my next car but still have my beater car to help avoid the mileage limit.

Mokos23

I would definately lease a 335i, but at the same time the thought of "renting" a car for how long 24, 36, or 48 months doesn't appeal to me because it's not really your car anyways. Then there are a lot of penalties if you drive more than a certain amount a year.

On the other hand if you like showing off cars or being cocky like wow I have a new car every 2 years, then it's perfect for you.

picus

Ya, that's wrong. I'll find the article I read over at CL (well, try to), it showed lease vs buy for all luxury marquees, and BMW was right in the middle.

03CLsPunisher

We had 3 BMW's on lease...

CLpower

\


get a hire mileage limit

runnerX

We bought our bimmers... we hate mileage limits cuz we know we will break the limit.

Crazy Bimmer

What do you think financing is? Car isnt really yours until you pay off the bank who has the title. And lets face it, by the time you finish paying it off then you already eyeing a new car to buy.

So the cycle starts all over again.

I get bored after 2-3 years so i think I will be leasing from now on. Depending on the car of course. Kinda nice that i can have a low car payment without putting any money down. I can put that down payment money elsewhere that will show better gains than buying a car.

But if you are like my parents then buying rocks since they keep their cars for 5-8 years.

taitando

Unless you pay cash outright for the total amount, the car isn't really yours when it comes to financing. Try not making a payment and see who the car really belongs to.

Anyhow, leasing works for me because 1) I don't really mod my cars 2) I barely average 12k miles/year 3) I have a business to write off the lease. 4) I typically get bored of cars within the 2-3 year time frame. 5) I like the fact the car is always under warranty 6) If something did go wrong, I have other vehicles so I'm not entirely dependent on the leased vehicle.

I wouldn't doubt that most BMW's are leased, as BMW has historically offered very attractive lease rates. Like someone said, why make a monthly payment on a Taurus when you can drive a BMW for the same price?

daemonicus

i drive my cars until they die, financially that makes more sense to me because i know i'm getting my money's worth. plus i like the pride of saying i own my car, rather than saying "i'll own it in $xx,xxx more and in 4 years".

that said, bmw lease rates are hard to argue with. the 335i does look very attractive...

runnerX

That is me.... I said that to my wife when I purchase my CLS and it is sold!

Both of my bimmers are completely paid off.

DAYTA

This is my one apprehension on leasing. I like modding my cars, and I'm fairly certain that dealerships frown upon modding a leased car......

Crazy Bimmer

Well the way i look at modding a leased car is the same as modding any car.

You have to return the car to stock form either way. We all know you get more for your money if the car is stock so even if you buy the car, you still have issues. IMO

Beltfed

Exactly, if you keep new cars 2-3 years it really pays to lease them if the rates/residuals are good.....and of course you can stay within the 12k/15k mile/year terms.

I bought the SRT because they lease out like shit, otherwise I would have leased it.

People that only see leasing as "renting" don't really understand the big picture of auto buying.

GIBSON6594

I read somewhere that on average leasing a car for three years was more expensive than financing the car for three years, not by a lot, but it is cheaper.

Crazy Bimmer

Read that also and the BMW figures i seen someone spends 1-2k more on a lease than buying.

Which is fine with me since selling a car is a pain in the ass. I rather just turn it in after a lease for that extra 2k.

Beltfed

It depends....but these points also have to be taken into consideration.

1. You have to deal with tradeins or private sale.

2. Accident(s)? Depending on the damage, quality of bodywork, and how premium of a vehicle......you could lose several thousand in resale value.

3. Cost to advertise, could cost hundreds to advertise on ebay/autotrader/newspaper etc. when selling.

4. When purchased, you know that you bought it and its yours.....people tend to be more neurotic about a purchased vehicle than with a lease. Caring more = more stress.

And as you said, the difference is generally negligable when in fact a lease costs more than a finance.