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Don’t forget leases! Many of the luxury SUVs are leased and traded every 2-3 years, putting further pressure on prices.


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Luxury car owners typically lease a new vehicle every 3 years. They couldn’t care less what happens to it in 5.

I suspect most luxury cars already get leased (at least in the US) more than bought.

Many luxury car shoppers are not that concerned with reliability since they plan on only owning the car for a few years. 3 year leases are common and even those who buy a vehicle outright may trade in long before reliability becomes a real concern.

Guaranteed buyback is pretty common on leases on luxury cars.

If the car will be cheap in three years, the lease will be expensive.

Many people, esp people who can afford to lease a ~100k car, get a new one every 3years.

They're not hard to find. Many people just lease a new vehicle every four or five years.

Didn't know leasing was popular outside the US. That's how a great majority of luxury cars are acquired here. To be fair, given how their asset price depreciates and repair demands increase over time, leasing makes a lot of sense.

Traditional leases have multi-year contracts. These cars don't.

This is pretty normal for Luxury cars - I recall my wife getting pitched on a Range Rover and when she asked about gas mileage the salesman response was if you are worried about the gas cost this is not the car for you. But also the idea that you would keep a luxury car for more the length of the lease is generally understood(I thought) to be crazy you always trade in for the new and shiny...

This is exactly the way the car market works, except you can't (yet) lease a new laptop for three years.

There are definitely reasons leasing is appealing, dealing with trade ins and resale can be a big headache.

I tend to hang onto vehicles for 7+ years regardless so it’s not a big issue here.


Do you have data on that? I thought cars lose a lot of their value as soon as they drive off the lot.

And how long of leases are you talking about?


What I wonder is why people are turning in their leases/selling their cars so soon?

What are the ratios of, gets a new car every couple years, more car than they could realistically afford, wasn't meeting their needs (range, passenger, luggage, person capacity), etc. etc.


Probably the same reason people go through a BMW every few years: leasing cars so you are always driving new cars.

To me this seems to reflect a lifestyle where certain people always want a shiny BMW or Mercedes and have to trade up every 2-3 years to maintain it. Seems like leasing would be a better approach though.

This has been an incredibly common model with cars for years. It’s called leasing, and many people find it preferable to owning.

Can you post a reference to that $500 number? I find that hard to believe. I was leasing a luxury car for around $400/mo a few years ago. What kinds of cars are average Americans leasing? Rolls Royces?

Not only that but leasing an expensive car can actually cost you less than the value of the car you lose for using it.

I remember checking how leasing a Porsche for 3 years would cost me less than half of the value the car would lose in that time.

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