What would happen if BMW took away the lease option on M's?

[///M///]

I know it can never happen as sales would probably drop to less than half. Always wondered what the lease to buy ratio is for M cars? Am guessing a much higher percentage is leased. The current lease numbers in the car make it way more affordable for someone with a max budget of 35-40k and that's got to increase sales big time.

[new2the3]

Yes it does. You get a lot of people leasing the car who otherwise couldn't afford to "own" one. You also see some early adopters take on leases at $1,000 / Mo and then try to ditch when the financial buyers remorse kicks in.

[gthal]

Originally Posted by new2the3

Yes it does. You get a lot of people leasing the car who otherwise couldn't afford to "own" one. You also see some early adopters take on leases at $1,000 / Mo and then try to ditch when the financial buyers remorse kicks in.

Sometimes buying isn't the most economical choice even for someone who can "afford to own" the car.

Someone once told me (rightly or wrongly)... "buy assets that appreciate and rent assets that don't"

I lease for a couple of reasons...

- I like the short term nature and guaranteed buy-out... the convenience of someone just taking it off your hands.

- I like that if there is a serious accident, the related higher drop in value becomes BMW's issue and not mine on lease turn-in.

I may buy my next car (although it may not be an M) and hold on to it for a while.

[///M///]

Originally Posted by gthal

Sometimes buying isn't the most economical choice even for someone who can "afford to own" the car.

Someone once told me (rightly or wrongly)... "buy assets that appreciate and rent assets that don't"

I lease for a couple of reasons...

- I like the short term nature and guaranteed buy-out... the convenience of someone just taking it off your hands.

- I like that if there is a serious accident, the related higher drop in value becomes BMW's issue and not mine on lease turn-in.

I may buy my next car (although it may not be an M) and hold on to it for a while.

Correct, my point however wasn't about why people choose to lease vs buy. That's been discussed to death and no one should feel to defend their decision to have made either choice. My point was simply that by adding the lease option at attractive residuals BMW has targeted a large population that otherwise would not have been able to afford the car. They wouldn't have qualified for a loan either. Take the lease option away and the sales would drop considerably. IMO the lease option by BMW is bloody brilliant! Guess the same can be said for other brands as well but the BMW lease numbers on the M's are pretty damn good.

[F83]

Yeah, leasing grows sales. That's why they do it.

[Donger Kim]

time for a poll? amirite

[Demxsr]

it increases sales and also is more profitable for BMW to lease and finance what cars they do. I'm not sure if this would translate directly to the M cars, but my dealership told me that 50% of their BMW's are leased.

I am leasing mine because it is an attractive lease program and I come out ahead over leasing it or finance or buying.

[mkoesel]

Originally Posted by dsm918

IMO the lease option by BMW is bloody brilliant! Guess the same can be said for other brands as well but the BMW lease numbers on the M's are pretty damn good.

As you point out here, any car can be leased. There's nothing special about an M lease other than that they have some of the higher residuals in the industry. But why do they hold their value so well? The reason is simple: they are damn good cars - always critically acclaimed, and they have a very high bling-factor as well. So then, the brilliant part is not the financing options; the brilliant part is understanding the target demographic so perfectly, marketing the product in such a compelling way, and being able to manufacture so much car with so much value for such a reasonable price.

Other companies that don't happen to have as competitive lease rates aren't in that position because they just haven't caught on with the right financing program or what have you, they are in that position because they haven't figured out how to offer a product quite so (or in some cases - anywhere near as) compelling as the competing BMW offering.

[///M///]

Originally Posted by mkoesel

As you point out here, any car can be leased. There's nothing special about an M lease other than that they have some of the higher residuals in the industry. But why do they hold their value so well? The reason is simple: they are damn good cars - always critically acclaimed, and they have a very high bling-factor as well. So then, the brilliant part is not the financing options; the brilliant part is understanding the target demographic so perfectly, marketing the product in such a compelling way, and being able to manufacture so much car with so much value for such a reasonable price.

Other companies that don't happen to have as competitive lease rates aren't in that position because they just haven't caught on with the right financing program or what have you, they are in that position because they haven't figured out how to offer a product quite so (or in some cases - anywhere near as) compelling as the competing BMW offering.

Nicely summed up

[elias]

I can afford to buy but choose not to, as I like having a car under warranty and
like to drive the most up to date vehicles every three years. When I retire I
may change and just buy and drive until the wheels fall off.

[BavarianDevil]

Originally Posted by elias

I can afford to buy but choose not to, as I like having a car under warranty and
like to drive the most up to date vehicles every three years. When I retire I
may change and just buy and drive until the wheels fall off.

Exactly my reason for leasing. There is no bigger depreciated asset then a car. Plus I get bored with a car even after 12-18 months. By the 36th month I am at my whits end.

[CRtoE92]

Originally Posted by new2the3

Yes it does. You get a lot of people leasing the car who otherwise couldn't afford to "own" one. You also see some early adopters take on leases at $1,000 / Mo and then try to ditch when the financial buyers remorse kicks in.

I dont think the word "afford" goes with everyone who leases bmw....

Many people simply lease because they want to get a new car every once in awhile

But yea someone leases their cars for lower payment!

[///M///]

Once again the thread drifts into the leasing vs buying decision. If you read the original post, you will notice I was just commenting on how significantly BMW sales may be affected if the leasing option was off the table. The thread has nothing to do with why people lease or buy