In this car shortage market, I am looking for a car which will be primarily a runabout for my wife and myself (dropping & picking up the kids off at kindergarten, day care, grocery shopping, basically a lot of short trips amounting to maybe 7.5k to 10k miles per year). She had a 2017 CR-V she was happy with but now that is sold after some oil dilution issues under warranty issues were fixed (eventually), but the frequent dealer trips, and dealing with Honda frustrated her enough to get rid of the car. Also have a minivan for the family hauling.
Looking at leases and as everyone knows there is a shortage and the lease prices are atrocious. For example, a 2022 demo BMW X3xdrive30i @$735/mo (MSRP ~$45.9k), Audi Q5 Prem.Plus @$840/mo (~$51-53k), and even the Genesis GV70 2.5T Adv. @797.32/mo (MSRP ~$51k).
Forget about the midsize leases which we were originally looking at (BMW X5, GLE, etc) those are simply astronomical.
What are the pro leasers and hackrs doing? Is it good to simply buy and then flip in 3 years? But then again, the above mentioned typically lose a ton of their value/depreciate rapidly in the first 3 years and are essentially dead value to deal with become eventual risky money pits in case all that hi-tech stuff starts to give trouble and decides to start breaking. Plus, by the next 3 years, the market conditions/supply for the semi-conductors might improve , and with the better lease and finance deals, incentives coming up, no one would want to buy expensive used cars like now.
Am I the only thinking all this or these thoughts racing through your minds as well. What are your opinons?
I would buy a CPO to last next 3 years. Hopefully value will not depreciate as compare to buying a new. Tradein when CPO warranty is finished for a new lease. Hopefully by then world will be normal if not buy another CPO.
As any used car the CPO will be marked up as well but it will give you some peace of mind and you can still sell it later without loosing much as compare to a new vehicle.
Look for low mileage CPO which has some original warranty also plus CPO warranty. It will be hard to find those in this crazy mkt. When I bought used cars it was always a CPO and it worked out great.
One other option is to look for EV since your runs are small and there are better deals on them due to discount tax credit. Plus Gas saving.
Q5e is something to look at.
I’m not sure where you are located since you tagged multiple states but these numbers are atrocious even for todays market. SoCal brokers here seems to be a lot lower at least for the German brands.
True. They are truly appalling and hence I was thinking does leasing at these prices for compact SUVS (these are atrocious even for midsize ones) make any sense at all? I am in IL btw.
I have an order for a Tesla MY for myself and that delivery is due sometime in April but this is primarily for the wife and she is not comfortable with those and doesn’t want them just yet. But PHEVs are a good suggestion, at least to get a good deal to mark the prices down due to the fed credit.
First option look for CPO in cars.com in 200 mile radius.
Second option try to find a deal thru a Broker in market place on east coast. Cars can be shipped to IL.
Dealers in IL are low on inventory and very hard to find any fair deal. Even prior to Chip shortage IL dealers leases are bad.
Second that, browsed through all the CPOs and less used ones in the past 2 days for most of the above, and unfortunately and ridiculously some are even priced more (if not equal) than the new ones, at least here in the midwest. Pretty bad market for buyers for sure.
If CPO option is out of door then check few brokers who worked out of NY/NJ/PA and see if they have any good offerings. I think I saw few less them MSRP advertised by them in last 2 weeks. X3/X5 Q5 Mazda Volvo…
You can also try RODO app and see what dealer are offering in IL. I saw few VW Atlas 2.0 and 3.5 ranging from $445 to $545 with $3-4k DAS.
I think I will simply skip the X3 option for now. Checked it out in person again and drove it ( the 2022 base model) and although it is every bit a BMW, its a bit boring, and dated. Nothing like the X5 I used to own and my bad for inevitably trying to draw comparisons with an X5 which is in a higher class and size but yes, at these prices, I cannot bring myself to lease an X3 and be unhappy later.
If I had to stay in this compact class, I would rather outright buy a GV70 3.5T Prestige Package and enjoy the heck out of it. The seating position is a bit too high for my liking and roof line a bit too close to my head (I am 6ft tall) but it drives like a hoot, and the cabin is super well done, real leather at not so expensive options (take note BMW and Mercedes, wtf is it with the leatherette, sensatec, mbux, sh**t, at the prices you charge, the lease you can do is give genuine leather seats. Heck, even my Honda CR-V has pretty good ‘real’ leather seats). It is more impressive even though compact than its bigger brother GV80, which has Telsa Model Y style, busy and stiff suspension which is always busy and harsh. You might not notice it during short rides due to the super plush cabin, but I don’t think the ride quality is anywhere close to the BMW X5, Audi Q7, or the Merc GLE on the big brother Genesis GV80.
Not sure the top end 3.5T with the Prestige Pkg (the one with the bigger waffle stick wheels) was around $64k before taxes I think. These things full loaded approach a mid level BMW X5 trim which is a class above which makes you rethink.
But the $780 lease is including taxes might not be that bad of a deal for a $68-70k OTD Genesis 3.5T in this market.
As per there site ,$788 Plus Tax and Fees for 36/7.5k .
Only 1 Stock # left. You easily looking at $900+ per month
For slightly above you might be able to get an X5 from Northeast Brokers.
Yeah that is too much even in this market. I am not that desperate. It’s literally like putting fire to your cash. Better buy something you like that doesn’t lose as much value or keep it for longer. Or buy something cheaper to tide over.
Also, on a side note - chip makers including AMD and Intel and their Taiwanese chip suppliers are ramping up production and the Wall Street analysts estimate (don’t quote me on that) is that the chip shortages should get better by the first two quarters of 2022. It’s not indefinite, at some point supply will catch up to the demand.
One other option is to use swaplease or tradein on LH and get something for 1 yr or less left on lease. You won’t be paying those outrageous fees associated with new leases and finances.
I posted lease numbers from a local dealer in socal in another thread, over 1k on the lease but he was adding a lot in. If you can get the Genesis for under 800 for the 64k package take it. The dealer here was ready for $1500 off msrp.
