Quote (chaosoul @ Jun 7 2013 03:04pm)
Obviously this is a question of which would you lease? not which car do you like or which one do you want or which one is cheaper.
As exporting dozens of bmw and Mercedes per year, and doing financial consulting for people, this is what Im specialize in.
A more expensive car can be cheaper to lease than a car 20k msrp cheaper.
Leasing is about which is the best lease offer makes the most sense to you and which is the best offer.
Leasing is basically paying the amount of depreciation over the amount of time you lease plus the finance charge.
For example if your C class depreciate from 50k to 30k market value over 36 months, your lease is 50k - 30k = 20k plus some finance charge which is like 3k, so your paying 23k over the course of 3 years.
The residual value is the most important thing, it tells you the percentage of the MSRP value still left on your car after 3 years. For example the 2013 BMW 328 is now 65% residual for 36 months,
so your car is worth 65% after 3 years. so you have to pay the 35% that is depreciated over that time.
Some cheap cars like 20k car depreciate 60% so you pay 12k over time, and some expensive car 50k depreciate only 20%, so you pay 10k over time, so actually cheaper to lease a 50k car. (example)
Cadillac are not known for good lease offers, their residual is pretty damn low (both ATS and CTS are in the 50s, 55% and 59% for 36 months, this value can change quarterly or monthly)
So I would always suggest against leasing a Cadillac (buy it, finance it, but don't lease it)
Mercedes typically pretty horrible lease deals, since they don't want people just having em, but some models they will try to push for really good deals (like C class not sits at about 65%)
BMW are known to have the best lease deals like the 328i coupe have 65% residual and 2250$ rebate.
You have to realize that the residual value does not change depending on how much price you have negotiated.
a 50k C class will depreciate to 32k, if you negotiate to 48k selling price, still depreciate to 32k, if you negotiate to 42k still depreciate to 32k,
as you can see its big difference since if you buy at sticker price, you are paying 18k over 3 years, and if you buy at 42k, you are paying 10k over 3 years (ALMOST DOUBLED)
rebate and incentives count as price negotiation, so definetly look for words like lease credit, rebate offers, or incentives.
Another thing you have to take into account is cost of ownership, even if you get both 50k C350 and 50k 335i to 350$ a month, C class will cost 100$ a month more over time, because BMW have 4 years of free maintenance,
everything free, brake pads, rotors, spark plug, etc. C class may run you 1000 a year which comes to close to 100$ a month that means you are actually paying 450$ a month for C350 and 350$ a month for BMW
I just put my friend into a 2013 BMW 328i coupe for 240$ a month from our contract deals, and free maintenance, heck cheaper per month than a Sentra or Camry, Sentra runs your 199$ a month but you gotta pay for maintenance.
MF or the money factor is what they used to calculate the lease charge or finance charge, its basically like APR% interest but they put it in different numbers to confuse you and make you fee like its small.
But small difference will change your payment drastically,
BMW M^ now have MF of 0.0009 compare to like Porsche's Carrera 0.0024, one you'll be paying about 180$ a month on finance charge, other about 500$ a month for finance charge, big difference for a car with same MSRP.
Be smart, find out if you should lease or buy or finance, and stay away from bad lease deals.
you didnt read my link
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