Luxury Car Lease

Why lease a luxury car? What's different about luxury car leasing?

Luxury car leasing is different

How is it different? It's not that luxury cars are more expensive, or that the leasing process is different, but because the consumer doing the leasing is typically different.

Luxury car consumer
High-end automotive consumers have different priorities, different values, bigger bank accounts, and prefer to transact business differently than people acquiring less expensive vehicles.

They have a tendency to lease rather than buy. "High-line" brands such as Mercedes, Porsche, Audi, Lexus, Acura, BMW, and Land Rover are leased at the rate of 50% - 70%, depending on brand, compared to only about 20% for non-luxury models, and even less for the least expensive models.

Luxury auto consumers tend to value time, efficiency, quality of service, and business relationship when dealing with financing. Spending a great deal of time shopping and haggling for bargain deals is less important that establishing a relationship with a company they can trust and depend on to genuinely look out for their interests.

High-end customrs tend to be more loyal to a brand and a dealership over a long period of time.

Luxury cars make good leases
Luxury automobiles make the best lease values, dollar for dollar, due to high lease-end residual values relative to MSRP. In fact, luxury vehicles, as a category, are leased significantly more often than vehicles in any other category.

“ What you pay for your car loan or lease directly depends on your FICO credit score ”

The best lease deals are for those vehicles, such as Lexus, Mercedes, Porsche, Land Rover, and BMW, with the highest future resale values, or residual values, relative to their original cost. A high residual value creates a low monthly lease payment.

In fact, a better lease deal can often be obtained by leasing a high-residual luxury car than by leasing a car with a lower residual value, even though the price of the luxury car is the same or greater. This is the reason smart automotive consumers tend to lease a luxury vehicle.

Being smart about money is a typical characteristic of high-end car leasers. High-line leasing consumers are not trying to save a few bucks — they have the money to buy the car they want. They simply know that it's not smart to put money into depreciating assets (automobiles) when that money could be used for more productive purposes.

Independent lease companies and luxury cars
More than 20% of luxury automobile consumers finance their loans and leases outside of car dealerships, according to a recent report by JD Power and Associates.

Independent lease companies such as Primelease can, in most cases, beat luxury car dealers on prices and lease rates because high-end manufacturers don't subsidize deals and offer incentives nearly to the extent that low-mid-range vehicle manufacturers do. Furthermore, luxury car dealers don't like to be viewed as "discounters."

Finance companies who lease luxury cars typically require their clients to have "prime" credit ratings. This means a high FICO® credit score of 700 or greater. Lower credit scores can mean higher lease rates, large down payments, and security deposits — and possibly higher insurance rates.

For high-line vehicle leases an independent lease company can be more flexible and responsive to customers' needs than dealers, who are restrained by car manufacturers' rules. For example, when new models come out and are limited in dealers' inventories, independent lease companies can search the entire country for the exact car you want.

Benefits of leasing luxury cars
People who lease high-line cars like the convenience of a quick easy business transaction, like having a new style car every two or three years, like avoiding maintenace and repair headaches, and like avoiding disposing of used cars. They also like the option of minimizing cash outlay.

Least expensive way to lease luxury cars

The single best way to drive a late model luxury car at the lowest possible cost is to take over someone's existing car lease.

Why?

Most existing car leases were taken out months ago when car manufacturers were offering incredible money-losing deals and very low monthly payments. Many people who took those great lease deals now need to get out after losing jobs or suffering other financial distress. Most lease companies allow those leases to be transfered to someone else by simply paying a transfer fee.

Since the original lessee got a good deal — a deal that is not possible today — anyone taking over the lease will inherit the same great deal, same low monthly payment, with NO MONEY DOWN, no upfront sales tax, and in many cases, a CASH incentive from the "seller." There is no other way to get a late model luxury car this cheap with payments this low.

How?

Online companies such as Swapalease.com act as match-makers between people who want out of a lease, and people who want to take over a lease.

Swapalease is the largest online lease marketplace and have the largest inventory of lease takeover vehicles. Look over the vehicle listings and if you find a car you like, they help arrange the lease transfer with the lease company. It's easy and fast.

In summary, luxury car leasing is different, the people who lease luxury cars are different, and the companies who lease luxury cars are different.

For more, see LeaseGuide.com

Consider a Mercedes Lease, BMW Lease, or Porsche Lease. Also consider an Audi Lease, Acura Lease, and Lexus Lease. Also an Infiniti Lease, Cadillac Lease, and Land Rover Lease. Lease a Mercedes, lease a BMW, or lease a Lexus. Lease a luxury car the smart way.