Out of the luxury brands, Bmw, Mercedes, Audi and Lexus, which ones have a better approach when it comes to leasing a demo? In other words, if I find a demo car, which of these makes gives better MF and Residuals on demo cars, ultimately offering a decent discount on my monthly payment vs a new car?
For the Germans the MF should be the same regardless of whether the car is new or demo, it’s just the RV is slightly lower for a demo depending on how many miles the car has.
Build a generic LH Calculator for Audi, BMW, MB, etc. and you can see exactly how much the RV will be affected for each depending on the miles.
Overall I think you will find this is a fruitless exercise though, as the individual deal matters much more than the specific formula each brand uses to adjust RV’s on demos.
For example, if you had 2 identical $100k demos from BMW and MB each with 4500 miles, the RV may be slighty better on the MB, but if the MF on the BMW is .00093 compared to say .00175 on the MB, the BMW will still lease better in spite of having a “worse” demo/RV program.
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We recently saw on a thread were a LH member was targeting MB Demos with largest discount off MSRP, once he inquired and wanted to move forward, the Acq fee was marked up $300 ( allowed on MB ) and the MF was marked up to the max. This particular member wasn’t aware that no matter how great your credit is MF markups are still part of the game and if one sees a vehicle with a larger than normal discount off MSRP many times it is coupled with a MF markup.
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In other words, you need to assess your options holistically, meaning you should consider ALL parameters that goes into your deal and do not assume loaners will always be a better deal than new.
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I have never seen an MB dealer that doesn’t mark up the acquisition fee
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Audi demo loners usually aren’t amazing. Lexus GP cars aren’t super Uber common. Mercedes 2020 cars should loose support this month, they did a last minute extension. I recommend targeting those.
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Demos on the loose
There’s very little point generalizing across brands; would you take a X1 if you want a M8 or vice versa? Besides, the previous conventional wisdom (BMW) can be throw out in May 2021.
Go to the Marketplace and pick something based on your personal preference, budget, etc.
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