Hi. When I leased 3 years ago, I found that BMW tended to “lease best” thanks to their very high residuals and solid MF. I leased a $66k x5 for $604/mo with nothing due at signing. That is obviously not happening in today’s market. My question is this:
Which lux car brand, generally speaking, “leases best” today? In other words, based on the same MSRP, which lux SUV will likely have the lowest monthly payment due to any combo of solid residual, MSRP discount, and/or MF?
For example, I saw very nice residuals on RX350s, which is likely due to the 2023 redesign coming, I have been loyal to BMW for the last 9 yrs but it seems like it’s time to consider other options.
Everything is getting worse by the month due to MF hikes and inventory constraints. Lexus RX seems like a good choice, maybe a demo BMW is you find the right dealer.
I don’t think anyone would reasonably interpret me to be asking about a Bentley or RR.
Generally speaking, there are always certain brands that lease better than others due to MF and residuals. BMWs generally leased very well recently but their residuals have dropped quite a bit. So just wondering now which, if any, brands have favorable terms right now.
To be clear – luxury, midsized, “normal” SUVs – MB, BMW, Lexus, Land Rover, etc
Just trying to help. That clarification will help you get some better feedback.
Adjectives are unbelievably subjective.
For example, many people don’t consider Land Rover to be “normal,” (closest dealer could be 2+ hours away) and I don’t consider Lexus to be a “luxury” brand (and btw we have one in the garage).
TY – yes it does. LMK if you have any nice xc90s in white w light interior in the PA area – would gladly sell my x5 now and then start a new xc90 lease.
BMW residuals haven’t changed that much from their normal patterns. That’s not the issue.
The issue is limited supply, little to no discounts, non-existent incentives, all coupled with much higher MF’s = no luxury brand is leasing particularly well right now.
In the current climate on pretty much any BMW or MB, etc. it’s better to just finance it.
Thx but the residual was ~60% for my last lease and it’s now around 51%, so that is a pretty significant drop. Of course, the discounts are also rough and same for MF. basically, it’s all bad
And yes, I am starting to think that simply buying new may be better than leasing at all
Thx – I kind of hate the idea of “owning” a Land Rover – would absolutely lease one but I don’t love the idea of owning any of these (aside from a Lexus). I guess it’s irrelevant if I sell it in a few years
if you buy a smartly equipped 110S at MSRP - you’re sitting OTD at like $5k in positive equity. Ones bought 2 years ago are still going over or at their original MSRP retail.
3% APR isn’t bad but full taxes kind of mess it up – Finance $60k then lob on another $4-$6k in sales tax + fees
Will need a buyout of ~$70k to make a profit or $65k to break even
However if you hold it for 2 years and sell for MSRP I can see that working – but who knows how long this market will sustain – Crypto got blown out in 2 days
The question being asked in this thread is the wrong question. Perhaps it should be, “what is worth leasing over financing?”
And the answer ends up being Frontier and Wrangler 4xe. Maybe a Murano, Altima, Corolla if you get the right discount at the right time, with the right program.
