Negotiating a lease vs. purchase

[Dice Roll]

Dice Roll...In a normal model year that is true. For example, when new models roll out in Sept/Oct, previous model year incentives do go up some, but normally by now (Jan) when new models are out for four months, many manufacturers cut rebates. They want to sell the new stuff, don't care about the old stuff. Sometimes they increase money to dealers, but what the dealer does with it is up to them.

I considered buying a CT6 V, but as inventory was sold, and 2021 model year started, GM cut all incentives for 2020 V's. This is GM's normal way of doing things as do many manufacturers.

i haven’t seen that. I bought mine about a year ago and it was built in august of 19. Incentives were high on all the old stock I saw out there. The 20s were many thousands more than any 19 at that point. Dealers want them gone and off their floor plan. I’ve never seen it unfold any other way.

 

[2018ExpyPlatinum]

I don't know Dice Roll.....maybe it's a ford vs GM thing. This is the first new ford I've had in decades. Almost always bought GM. That seems to be GM's way of doing things. Maybe that explains a few things?

 

[mcb345]

I don't know Dice Roll.....maybe it's a ford vs GM thing. This is the first new ford I've had in decades. Almost always bought GM. That seems to be GM's way of doing things. Maybe that explains a few things?

If you’re leasing many times the last model year rebates (2020 in this case) will disappear when the new model comes out. My guess is the manufacturer doesn’t want to lease the 2020’s at this point because when they get the car back it will be 4 years old instead of 3 if that makes sense and therefore the residual value (resale) is much lower.

Manufacturer might rather have the dealer sell that 2020 instead of leasing therefore lease incentives / rebates are given to 2021 in many cases.

Each manufacturer is different though, if you visit manufacturer websites around now (or right when the new model comes out) sometimes you’ll see them advertise both years and you might save $20-100/month by leasing the older model but other times they just jump right in to the new model. Likely depends on inventory levels. Check out Alfa Romeos website right now for the Guilia for example. They’re advertising both but for $60+/month savings for the old while Volvo jumps straight to 2021. The individual dealer might have a preference as well I would think, depending on which one will make them more money for the last couple of 2020’s.

 

[Dice Roll]

Could be a gm thing, could be a lease thing. I don’t pay much attention to those. Every time I think I would consider a lease, I end up coming back to we are hold for 10-12 years people and forget it. Think next car for wife will be a Lincoln or bmw etc so that one might get leased.

 

[mcb345]

Could be a gm thing, could be a lease thing. I don’t pay much attention to those. Every time I think I would consider a lease, I end up coming back to we are hold for 10-12 years people and forget it. Think next car for wife will be a Lincoln or bmw etc so that one might get leased.

BMW might be a great car to buy 3 years old coming off a lease. BMW sedans depreciate over 50% in 3 years for example. $100k 7 series for less than half price new, not a bad deal!

 

[carymccarr]

BMW might be a great car to buy 3 years old coming off a lease. BMW sedans depreciate over 50% in 3 years for example. $100k 7 series for less than half price new, not a bad deal!

Lincoln’s lose 65% in 5 years. Both are great off lease vehicles to buy. Most luxury/expensive vehicles drop like rocks.

https://www.businessinsider.com/suvs-with-worst-resale-value-2019-11?amp

 

[Dice Roll]

Damn I didn’t know it was that much in three for bmw. Shit.

 

[mcb345]

Damn I didn’t know it was that much in three for bmw. Shit.

Luxury SUV’s are a little different, they hold their value a bit more but most luxury sedans plummet fast! Best deals out there are gently used luxury sedans.

Also, when you get in to the special models (BMW M5 or Audi S5 Sportback for example) they hold their values much better, not quite Porsche 911 used pricing but you’re still paying a premium for those used.

Convince you’re wife she needs a used BMW sedan and you’re golden!

 

[2018ExpyPlatinum]

If you’re leasing many times the last model year rebates (2020 in this case) will disappear when the new model comes out. My guess is the manufacturer doesn’t want to lease the 2020’s at this point because when they get the car back it will be 4 years old instead of 3 if that makes sense and therefore the residual value (resale) is much lower.

Manufacturer might rather have the dealer sell that 2020 instead of leasing therefore lease incentives / rebates are given to 2021 in many cases.

Each manufacturer is different though, if you visit manufacturer websites around now (or right when the new model comes out) sometimes you’ll see them advertise both years and you might save $20-100/month by leasing the older model but other times they just jump right in to the new model. Likely depends on inventory levels. Check out Alfa Romeos website right now for the Guilia for example. They’re advertising both but for $60+/month savings for the old while Volvo jumps straight to 2021. The individual dealer might have a preference as well I would think, depending on which one will make them more money for the last couple of 2020’s.

You have confirmed exactly what I was trying to say. Normally no lease deals for leftovers, normally only NEW model years. Thank you for explaining better than I

 

[Dice Roll]

Luxury SUV’s are a little different, they hold their value a bit more but most luxury sedans plummet fast! Best deals out there are gently used luxury sedans.

Also, when you get in to the special models (BMW M5 or Audi S5 Sportback for example) they hold their values much better, not quite Porsche 911 used pricing but you’re still paying a premium for those used.

Convince you’re wife she needs a used BMW sedan and you’re golden!

here’s a twist I never dreamed in a million years

no remote start on a bmw before 2021!

WTF

so it’s new or nothing as we have a detached garage. I can’t believe it. Took a gander at those, and the lease only saves like 150 bucks a month off owning. Real risk to owning is it’s a crap lux car that will cost a bundle to maintain starting in like year 4-5.

even worse, at least financially speaking, wife wants one. Now. So no waiting for lease turn ins. Maybe maybe a demo would save a wallet heartbreak.