Everyone has an opinion on whether you should buy or lease your next vehicle. Leasing a vehicle gives you a new ride every 24ï¿½48 months, with controllable payments, but only financing allows you to truly own your vehicle after all is said and done.
A March 2016 article in Car and Driver magazine used research from IHS Automotive to determine which brands have the highest lease rates.
Smart, Maserati and Infiniti are at the top of the list with 80 percent, 74 percent and 64 percent, respectively. Following close behind are BMW, Jaguar and Lexus with 57 percent, then Lincoln and Mercedes-Benz with 53 percent. Rolls Royce and Audi check in at 51 percent and 50 percent, respectively.
Youï¿½re probably thinking, ï¿½Lease a Rolls Royce?ï¿½ But a new Wraith can be yours for around $30,000 down and $4,000 per month for 48 months.
Overall, the small luxury sedans (think BMW 3 Series, Infiniti Q50 and Audi A4) make up for about 60 percent of these leases, and more than 50 percent of all luxury sedans are leased. Why are leases for luxury sedans so popular? Itï¿½s the convenience of having a new car with smaller upfront costs.
ï¿½Luxury brands make the bulk of their profits from them,ï¿½ according to the magazine. ï¿½Turn in the old car, throw down a few grand, and poof! Thereï¿½s a new Mercedes E350 wearing your old license plate. Many off-lease cars are remarketed as certified pre-owned; leasing one perpetuates a cycle that keeps profits humming and monthly checks outflowing.ï¿½
On the opposite end of the spectrum, leasing an Alfa Romeo, a Ferrari or even a Mitsubishi is a rare occurrence with 1, 4 and 8 percent of all models leased out.
Leasing is also far more common in the Northeast, with New York, New Jersey, Connecticut, New Hampshire, Vermont, Rhode Island and Massachusetts accounting for seven of the top 10 states with the highest leasing percentages. Michigan holds the highest rate, at 59 percent. Florida and California (tied at 32 percent) and Ohio round out the top 10. Arkansas holds the designation as the state with the lowest lease rate, only 2 percent, and Alaska and Oklahoma each check in with only 4 percent of all new vehicles being leased.
Leasing is always a good option if you donï¿½t have a large amount of capital to pay upfront. But if youï¿½re looking for a new vehicle, or if you simply want to know how much car you can afford, stop by and see what financing options we have for you so you can shop with confidence.